й4.'4шина БАЗОВИЙ юФс АНГЛЈЙСЬКОТ З ЕКОНОМIКИ BASlC ENGLISH 0F ECOkOMiCS МОВИ Ки:вський А.Г. БАЗОВИЙ КУРС АНГЛЙСЬКО\ МОВИ З ЕКОНОМЖИ BASIC ENGLISH OF ECONOMICS для Видання друге, перероблене с,ђнд та оповнене КНТЕУ розповсюдження i тиражування без заборонено дозволу КНТЕУ удк ББК Ш1.2 Англ л 27 Автор А.Г. доц. Рецензенти: А.А. капита, д-р наук, проф. кафедри трорй, практиют та перекладу мови Укратни «КШ»; Л.О, канд. пед. наук, старш. наук. кафедри мов академй справ; ЛЛ. Бербенець, доц. кафедри сучасних европейських мов ЗатверДжено MiHicmepcTB0M ocBirnu i науки УкраТни дм вищих навчапьних (Лист 1/11-8126 13.05.2013) А.Г. Л 27 Базовий курс мови з English ofEconomics : / А.Г. ЛатшАна. — 2-ге вид., переробл. та допов. — К. : киТв. нац. торг.-екон. ун-т, 2013. — 456 с. ISBN 978-966-629433-0 У надано ocH0BHi понятгя й i 6i3Hecy, тексти, тексти для розвитку навичок мовленневоТ а також типи English ofEconomics» призначено для опановують а також для тих, хто бажае вдосконалити свот знання з мови спрямування. удк ББК Ш1.2 Англ ISBN 978-966-629433-0 О Латинна А.г., 2016 О Китвський торговельно YHiBepcHTer, 2016 ВСТУП розрахований на поглиблене вивчення ськоТ мови спрямування i призначений для cTY)leHTiB вищих навчальних а також для BCix, хто працюе над удосконаленням мовою фахового спрямування, зокрема у та 6i3Hecy. 4 Метою е: забезпечення i засвоення граматики, лексики та фаховоТ формування BMiHb та навичок i роботи з фаховою MaacpiaJ1 розроблено на ocH0Bi сучасних комупотреб складаеться з двох I — Business Topics та II -- Effective Written Communication. Перший включае 8 у свою чергу, ypokiB, що люють Taki теми: 6i3Hec та та персонал; працевлаштування, 6i3Hec та ek0H0Mika; продукт, ринок та 6i3Hec та i аудит; банки i 6aHkiBcbka в 6i3Heci. Yci уроки 1. 2. 3. 4. 5. 6. мають едину структуру: словник для активного засвоення. Фаховий текст. Систему вправ, призначену для засвоення вокабуляру уроку. Систему вправ, призначену для i осмислення текстуальноТ з фаху. Граматичний який ocH0BHi випадки вживання граматичних явищ сучасноТ мови, вправи i тести для контролю засвоення Завдання для розвитку YMiHb i навичок усного мовлення з фаху. Тексти побудовано так, що Тх структура забезпечуе формування у об'емного тематичного словника, а також активне засвоення лексики. kpiM цього, наведено тести, зокрема, тести для модульного контролю та Другий (Effective business Communication) присвячений Цей i зразки — спроба задовольнити потребу у за допомогою 3ac06iB. To the Student «There are two ways of spreading light: to be the candle, or the mirror which reflects it» Business plays a vital role in the economy. If you wish to succeed in business you should have a clear idea not only of trade, marketing, management, finance, etc. but you also need to know how to use and understand professional business vocabulary. This book will take you through different business areas and will make you understand what is required to be a successful businessman. It will also help you master commonly used business terms relevant to your chosen field of interest. You will find everything you need in this book to become more proficient in your professional English and to work more effectively in the world of business. Good Luck 4 DIAGNOSTIC PRE-TEST DIAGNOSTIC PRE-TEST Choose the most suitable word or phrase. 1. The president the election yesterday. a) won b) wins c) has won 2. When the conference? a) did you attend b) have you attended c) you will attend 3. This pictureby Goya. a) is being painted b) was painted c) painted 4. He said his name Tom. a) is b) was 5. If I meet him I c) were him my new address. a) will give b) give My friend wishes he c) would give 6. a car. a) have b) has c) had 7. I want to finish this letter before my secretary a) will come back b) came back c) comes back 8. He wanted mehim five euro. a) lend b) to lend c) that I lend 9. The office manager had a difficult decision to make today, a) wasn't he? b) didn't he? c) hadn't he? 10. Helen isperson I know. 5 a) the more intelligent b) the most intelligent intelligent 11. She here for 10 years. c) most a) is working b) has been working c) works 12. We examinations twice a year. a) have been taking b) take c) are taking 13. Last year we hoped she come. a) will b) would c) shall 14. If they to an agenda, we must postpone the meeting. a) have yet agreed b) still have not agreed c) already are agreeing 15. The new employee is both ambitious a) or b) neither c) and 6 hard working. A. LATYGINÅ 16. When he , our representatives will present the new plan to the public. a) arrived b) arrives c) had arrived 17. At this moment, I my ears! a) couldn't believe b) can't believe c) am not believing 18. She all of her work by 9.00 p.m. tonight. a) has finished b) is finishing c) will have finished 19. All my moneyby the burglars! a) was stealing b) has been stolen c) were stolen 20. He away from work all this week. a) is b) has been c) have been 21. Our guestsThey are sitting in the office. a) had arrived 22. Ifl b) arrived c) have arrived you I would tell him the truth. a) was b) were c) am 23. All his moneyspent on books last month. a) was b) were c) have been 24. She has neither friendsrelatives to help her. a) or b) nor 25. He is not so c) and as I am. 7 Basic English of Economics a) busy b) busier c) more busy 26. I wish youso much coffee. a) haven't drunk b) drink c) didn't drink 27. I expectto help you. a) him b) his c) he 28. I heard that he his own business. a) established b) had established c) establishes 29. I didn't see this girl a) somewhere b) anywhere c) nowhere 30. I can't join your company. I have time. a) few b) much c) little PART 1 BUSINESS TOPICS MODULE 1 BUSINESS AND BUSINESSES LESSON 1 Text: Business Organization Grammar: Present Simple and Present Continuous Terms to remember: needs satisfy (v) GR 110Tpe6H GR 3aAOBOJ1bH51TU 8 survive (v) depend on (v) ca BH>KMTH•, np0Å0B)KYBarrm iCHYBaTH 3anexaTH Bill consumption business CR CTIO)KHBaHH51 firm company vary (v) profit ca d)iPMa provide services (v) corporation multinational enterprise set up a business (v) establish a business (v) start-up be in business (v) GR 6i3Hec, K0MepuiäHa AiW1bHiCTb, ToproBe nimr1PH€MCTB0, crrpaBa, 3aHHTT51 ca KOM11aHiR, CR BiAPi3HHTMCW, 3MiHkOBaTHCA npu6YT0K CR HaÅaBaTH nocnyrn CR Kopnopaui% GR Mi>KHap0AHa, MY11bTHHaUiOHaJ1bHa Kopnopauifl rlimnpnervqcTB0, (biPMa, Kopnopauiq GR CTBOPIOBaTU 6i3Hec CTBOPIOBaTH 6i3Hec run a business (v) do business (v) cn HelUOAaBHO cTBopeHa K0MnaHifl ca 3aViMaTHC51 Toprimero, 3aViMaTHCR 6i3HecoM GR KepyBaTH rlinnpu€McTB0M Becerm 6i3Hec, 3aVlMaTHCfl 9 A. Basic English of Economics UTYGINA TopryBaTM deal with (v) 6i3HecoM trade (v) CR 3aäMarrucq (YHMOCb); 6YTH KJ1i€HTOM, Kyr1YBarru (y KOrOCb) go out of business (v) niKBiÅYBaTH Ilimnpn€McTB0 expand a business (v) P03L11HPK)BaTH 6i3Hec specialize (in something) GQ cneuiani3YBarrmcq (v) diversify (v) GQ YPi3HOMaHiTHHTH, Bapi}0BaTH owner BJ1aCHUK affect (v) AiATH Ha Business Organization The economic system is made up of people with basic needs that they must satisfy to survive. As most people cannot produce all the goods and services they need, we depend on other persons or businesses to make them for our consumption. is the activity of producing, buying and selling goods A business organization is a firm, a company or a business that makes, buys or sells goods, or provides services, to make a profit. Businesses vary in size. Large companies are referred to as corporations. Many consider the corporation the ideal way to organize business. Large companies operating in many countries are multinationals. Big business can refer to large business organizations or to any business activity that makes a lot of money. Small companies which do not employ many people and earn relatively little money are referred to as small businesses or small firms. We can also call a small business a small to medium — sized business, or SMB. 10 MODULE BUSINESS AND BUSINESSES An enterprise is a company or business often a small one. It may be called so to emphasize its risk-taking nature. Commerce refers to the activities and procedures involved in buying and selling things. I When we start a business we talk about setting up a business or establishing a business. New businesses are called start-ups. Once a business has been established we talk about being in business or running a business. To do business means to trade or deal with a company or country. It's not easy to organize a business and to operate it successfully. When a company is not successful, it may go out of business. The economic situation, as well as decisions taken by the owners of a company, affect how it grows and changes. You may expand your business, specialize in something, you may also diversify your business. Exercises in Word Study Ex.l. Form verbs and adjectives from the following nouns: profit, operation, economy, decision, change, expansion, activity, success, diversity, dependence, corporation. Ex.2. The following diagram shows some very commonly used nouns with the adjective «corporate». Study the diagram, consult your dictionary and translate these word combinations into Ukrainian. Make up sentences with them. 11 A. Basic English of Economics 12 A. Basic English of Economics UTYGINÅ Ex.3. Give the English for: KY11YBaTH i nponaBaTH TOBapm•, HanaBarru nocnyrn; 0TPHMYBaTH HPH6YTOK; 3aP06J1flTH rpomi; CTBOP}OBaTH 6i3Hec; KepyBaTH niA11PHeMCTBOM•, rropryBarrn•, eKOHOMiqHa curryauiw, pimeHHq•, BJ1aCHHK K0Mr1aHii•, Ai%TH Ha; P03L11HP}OBaTU 6i3Hec; cneuiaJ1i3YBaTncH 3 qorocb; 3aÅOBOJ1bH%TH 110Tpe6n; 3anexa-ru Bin; CllO)KHBaHHW, Hel-UOÅaBHO cTBopeHa KOMnaHiA. Ex.4. Match words from list A with words from list B that have a similar meaning. depend on necessities of life firm gain set up a business sell out a business go out of business establish a business run a business enlarge a business expand a business operate a business affect company profit influence needs rely on Ex.5. Find suitable opposites to the following words and phrases: to buy, loss, to close down a business, to set up a business, unsuccessful. Ex.6. Find three words in the list that are synonyms for «a usiness» and one word that is a synonym for • company e firm • enterprise 13 A. Basic English of Economics 1 Ex.7. Match the nouns in the left hand column with the verbs in the right hand column. businessbuy make profitsell goodsset up satisfy needsorganize run moneydo diversify decisionaffect expand servicesestablish provide Ex.8. Study the following diagam and fill in the blanks with suitable words from the diagram. LAT YC,INÅ I. I have a few contracts in the ... business. 2. It was a mistake to ... with my brother. 14 MODULE BUSINESS AND BUSINESSES 3. After talking about the weather, we ... about the contract details. 4. Sheryl's parents ... a small clothing business. 5. That house has strange people coming and going. I think there is ... business there. 6. For Jack, golf is a ... business. 7. They really ... If you don't pay them by next week, they are going to take you to court. 8. She has been in ... business for 10 years. Ex.9. Use the terms in the box to complete the sentences. Big business / start-ups /firm / commerce / small businesses / corporations 1. Business are common in the IT and bio-technology areas where recent graduates from universities have ideas for new products and want to set up their own companies to make and sell their ideas. oris an organization that 2. A business, company sells goods or services. 3. Business is also referred to as 4. Large companies are referred to as 5. The term can refer to large business organizations or to any business activity that makes a lot of money. 6. Small companies are referred to firms, or sometimes SMBs. as or small Ex.10. The words in the box frequently occur after <<business». 15 A. Basic English of Economics administration /00Ch letter 1 Find combinations that mean: 1) a small card showing a person's name, position and company name; 2) a visit to clients, suppliers or other business contacts which takes you away from home; 3) a document showing details of how someone aims to run the company, expand, introduce new product lines, and so on; 4) the people who own a business together; 5) the process of running a company; 6) a college or part of university where courses on business subjects are taught; 7) the organizations and people involved in business; 8) a meeting with lunch to talk about work or to entertain clients; 9) the ability to encourage or predict commercial activity; 10) a gathering of people to discuss work topics; I l) a letter about a business transaction, often following a certain form; 12) a private investor who invests money in the establishment of new often risky, companies. Ex.ll. Look at the words and phrases in the box. Match them with the correct definition from the list below. 16 MODULE BUSINESS AND BUSINESSES owner firm multinationa corporation startup economic system very large organization that owns companies in more than one country in order to obtain cheap raw materials and make efficient use of a local workforce; 2) the money gained in a business deal, esp. the difference between the amount earned and the amount spent; 17 A. UTYGINA Basic English of Economics 3) a person or business that owns something; 4) two or more people in business to make a profit by selling goods or services; 5) commercial activities in general; 6) a large group of companies; 7) to enter new types of businesses; 8) a nation's system for allocating its resources among its citizens; 9) a business that is just being started. Ex.12. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. It's been a pleasure with you. 2. My wife is a doctor, but I am 3. Small shops . . . very quickly. 4. She her own company and proved to be a very good businesswoman. 5. They work for an engineering 6. When a . . . becomes bankrupt, its stock is of no value anymore. 7. The company . . . its sales force from 10 to 20 representatives. of that car bought it at an auto dealer. 9. Have you ever . . . with this company before? 10. He has no idea how . . . a successful business. 11. An increasing number of European firms are . . . with Japan. 12. Very hot weather . . . how people feel and act. 13. She . . her hunger by eating a steak. of alcohol in that country is forbidden. 15. That computer company is a . all it has are few employees and a good idea. 18 A. UTYGINA Basic English of Economics 16. We tried to diversify revenues by expanding into online . Commerce, go out of business, in business, to do business, company, corporation, the consumption, the owner, dealt, trading, set up, start-up, expanded, to run, affects, satisfied. 19 MODULE BUSINESS AND BUSINESSES I Ex.13. These words are often confused: economic --- economical, economics -- economy Econmny Economics CKo Economic — the organization ofa country 's wealthproducing commerce and industry; the deliberate saving ofmoney through Icarefully-con tro Iled spending. — the scientific study ofa society 's money, industry trade. — related to the economy cost-effective Economical — if something is economical it does not require a great deal ofmoney to operate — an efficient way ofdoing things Complete these sentences using the correct form of one of the words above. Make sentences of you own to show that you understand the difference in their meaning. l . The government's . . . policy has created a lot of problems. 2. It may be to use a cheaper form of fuel. 3. Consultation will focus on the . . . and diplomatic issues. 4 is one of the major subjects which future economists study. 5. We are looking for more . . . production methods. 6. The country is in a state of crisis. 7. The new heating system proved . . . to use. 20 MODULE BUSINESS AND BUSINESSES 8. The government is attempting to reduce inflation and strengthen the . 9. Industrial production has slowed down in all the world's major . 10.This machine is no longer . to run. I l.The IMF helps the of the developing world. 12.1nvestors watch the rate of growth closely, 13.My friend studies 14.Buying second-hand equipment can be a false 21 A. LATYGINA Basic English of Economics Ex.14. Build your vocabulary. Learn phrasal verbs for business! to branch out (into something) — to diversify (into something) Ifa company or person branches out they start doing different workfrom the work they usually do. Read these sentences carefully and translate them into Ukrainian. 1. The travel company has branched out and bought its own hotels. 2. Bookstores are branching out into new areas such as CD's and gifts. 3. He wanted to branch out from accounting into marketing. 4. She decided to branch out on her own and start a new company. 5. For business reasons we decided to branch out into selling videos and DVDs. 6. If you branch out, you need to be careful that customers still know your service is good. 7. We decided to branch out into computer games. 8. We have now branched out into sportswear. 9. I have worked for the company for ten years and I would like to branch out on my own. 10.They have branched out into new areas to increase their overseas business. Exercises in Comprehension Ex.l. Answer the following questions: 1. What is the economic system made up of? 2. Why do people depend on businesses? 22 A. LATYGINA Basic English of Economics 3. What is business? 4. What is a business organization? 5. Do businesses vary in size? 6. What are corporations? 7. Where do multinationals operate? 23 MODULE 1 BUSINESS AND BUSINESSES 8. What do we call 9. What does «to do business» mean? 10. When may a company go out of business? 1 1. What affects a company development? 12. What can a company do to improve its business? Ex.2. Sum up what you remember about: a) corporations and multinationals, 6) big business and small business, B) doing business. Grammar Revision Present Simple and Present Continuous We use the Present Simple: •for routines and habits I go to the bank twice a month. •for permanent situations My friend works in a bank. •forfacts Water boils at 1000 centigrade. •for timetables orfixed events in thefuture, that are usually beyond the speaker's control: The train leaves in 10 minutes. We use the Present Continuous: •for actions happening now I am working on my report at the moment. •for temporary actions or situations I am staying with my friends till I find a new flat. •for changing or developing situations The economic situation is getting worse in this country. •to talk about something that happens often and is unplanned or irritating (with always) MODULE 1 BUSINESS AND BUSINESSES She is always grumbling and complaining. •to talk aboutfuture arrangemen dp I am leavin at four on the first hKto London. 17 1310JIÅOTEKA A. LATYGINA Basic English of Economics Ex.l. Choose the correct variant. I. All the guides here speak/are speaking at least two foreign languages, because a lot of foreign tourists come/are coming every year. 2. Look! The meeting starts/is starting. We'd better go in. 3. I work/am working for Midmark, a firm that makes/is making medical equipment. 4. I go/am going to the supermarket. Do you want anything? 5. The train is arriving/arrives at 7 a.m. 6. They always make noise/are making noise next door. 7. Our meetings usually are starting/start at 4 p.m. 8. When a company is not successful, it is going/goes out of business. 9. I work/am working overtime this week. 10. Tom is a very reliable person, everybody is trusting/trusts him. 11. He usually is coming/comes to his office on time. 12. The sun is setting/sets in the West. 13. Great Britain becomes/is becoming more popular as a location for international business. 14. He earns/is earning over $ 20,000 a year. 15. People often spend/are spending a lot of their money on cigarettes. Ex.2. Complete these sentences using the correct form (Present Simple or Present Continuous) of the verbs in brackets. 1. I never (work) at the weekend. 2. He (smoke) 30 cigarettes a day but at the moment he (try) very 26 A. LATYGINA 3. 4. 5. 6. 7. Basic English of Economics hard to cut down. What you (think) about? Business (become) more international and secretaries (need) international communication skills. He (make) paper products. The speaker (wait for) a telephone call. The manager (check) the production levels every day. 27 MODULE 1 BUSINESS AND BUSINESSES 8. *Ihey (sign) the contract in the conference room. Don't trouble them. 9. Multinationals (compete) for a market share. 10. The express train always (arrive) on time. 11. The delegation (to come) at 5 p.m. tomorrow. 12. She (run) her own business. 13. I feel that we (make) too much noise. 14. The firm (specialize) in green tourism. 15. At present we (do) business with Japanese companies. Ex.3. True or false? Correct where necessary. l. Although we sometimes go to a restaurant, we usually are eating at home. 2. Most American families has at least one automobile. 3. I am usually going to the supermarket on Fridays. 4. My friend often go on business trips abroad. 5. Any businessman is wanting to make a profit. 6. Multinationals now operate in every sector of industry. 7. The largest bank in the country plans to close some ofits branches. 8. The firm makes excellent progress this week. 9. My friend has collected necessary information about markets and now he establishes his own business. 10. The South is depending more on small businesses for jobs than on large corporations. 11. Women run 25 per cent of existing small businesses. 12. I can't talk now. I make a report. 13. Due to expansion, we are looking for new business partners to join our company. Ex.4. Translate into English. 28 MODULE 1 BUSINESS AND BUSINESSES l. LIR KOM11aHiS1 BWOTOBJ151€ HaicyyacHiL11i TeneBi30pn. 2. He 3aBa»caJi MeHi! 51 npauyoro Ham nepeKnaÅ0M eK0H0MiqH0i cerarri. 3. MYJ1bTHHaUiOHaJ1bHi Kopnopauii npaW0K)Tb y 6araTbox KpaiHax CBiTY. 29 A. Basic English of Economics UTYGINA 4. Miki 6paT 3aVfMa€TbCR MallHM 6i3HecoM. 5. EK0HOMit4Ha CHTyauiA B KpaiHi B11JIHBae Ha P03BHTOK 6i3Hecy. 6. baraT0 €BponeMcbKux K0MnaHiä ToprY}0Tb 3 A110Hi€10. 7. HHHi HaMara€TbCH 3HH3HTH uiHH Ha np0Å0B0J1bHi TOBapu. 8. Min TIPHflTeJ1b BHBqae eKOHOMiKY. 9. Mon (l)iPMa 3apa.3 L11YKae HOBHX napTHepiB no 6i3Hecy. 10. BiH 3ap06J1fl€ $ 15, 000 Ha piK. Il. MeHe He UiKaBHTb Bama rlP01103uuifl. A p03111npmo CBiVi BJ1aCHHV1 6i3Hec. 12. BnaCHHKH TOPrOBHX niÅnpuer•acTB 3ycTpiqar0Tbc51 3aBTpa 0 9 roAHHi. 13. I-IR (l)iPMa 3aB)KJIH Hanac 51KicHi nocnyrn. 14. BiH He Mae )KOÅHOro YRBJ1eHHfl rlP0 Te, 51K KepYBaTu ninnpn€MCTBOM. Speech and Discussion Ex.l. If you start a business of your own, your aim is to do well, in other words — to succeed. Every person understands the word «success» in his own way. And what does «success» in business mean for you? Choose the suitable answer and explain why you have chosen it. Success is When you are popular with your customers when your products cost a lot a lot of money earned when you win all the competitions among other companies specializing in the same area 30 MODULE 1 BUSINESS AND BUSINESSES when your reach all your goals when your company is constantly expanding when the staff is working as a good team. Ex.2. What are the most important reasons for people to choose a particular profession? Ex.3. Talk to your groupmates: which is the most interesting to work in: a bank, a computer company, a hotel, a restaurant, a supermarket; choose one of the places and speak about the advantages and the disadvantages of working there; what are the most popular jobs among young people in Ukraine. Ex.4. If you were to choose where to work, would you prefer small business or big business? Why? Ex.5. Talk to someone who has their own business. Find out how they started it. Was it easy or difficult? Is their company profitable? Ex.6. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them: 1. I will make it my business to see that he gets the job finished in good time. 2. On his arrival he was robbed of all his money; a bad business! 3. He must mean business. He has paid E 500. 4. You mind your own business and stay out of mine! 5. You have no business reading my mail! 31 A. Basic English of Economics Ex.7. Comment on the following proverbs and sayings. Think of situations where you could use them: «Everybody's business is nobody's business.» <<Business before pleasure.» 32 MODULE 1 BUSINESS AND BUSINESSES A. LATYGINA LESSON 2 Text: Business Organization and the Economy Grammar: Past Simple and Past Continuous Terms to remember: classify (v) industry np0MmcJ10BicTb, iHAycTpifl, rany3b TIPOMHC110BOCTi primary sector nePBHHHHü ceKTop (BHÅ06YBHa rlPOMHCJIOBiCTb i CiJ1bCbKe rocnomapcTB0) raw materials assemble (v) finished products secondary sector CUPOBUHHi MaTepiaJIH manufacturing/ industrial sector wholesale trade retail trade tertiary sector service sector own (v) private sector enterprise 36npaTH roT0Bi BHP06H BTOPUHHHM (BHP06HHUTBO) BHp06HMLIMji ceKTOP 011TOBa TopriBJIH p03Api6Ha TopriBJIA TPeTUHHUä ceKT0P (ceKTop 06CJIYPOBYBaHHR) ceKTOP nocnyr BOJIOAiTH rlPHBaTHUä ceKTop niAnpueMcTB0 33 ceKTop Basic English of Economic nepecJ1iÅYBaTH (iHTepec) pursue (v) regulation perYJ110BaHH51 restriction06Me)1CHHS1 sectorneP)1CaBHHVi nationalize (v) sell-off privatize (v) supply utilities public/state ceKTop coa Haqi011aJ1i3YBaTH p03nponamc 11PHBaTH3YBaTH noc•raqaH11$I JCOMY11aJlbHi nocJIY'FH Business Organization and the Economy Businesses involved in making a particular kind of product or providing a particular service are part of an industry and may be classified according to which industry they are in: for example, construction, oil, banking, food. A sector is a specific part of a country's economic activity. The productive sectors of the economy consist of' the primary sector, the secondary sector and the tertiary sectorJThe primary sector is a part of a country's economy that consists of industries which [Grhe secondary sector consists of industries which produce things from raw materials01t is sometimes called a manufacturing or industrial sector[All the companies which make goods from raw materials or assemble components into finished products work in this sectorJZl The tertiary sector consists of industries which privide a service. We can also call the tertiary sector the service sectorJ All the companies which provide services in areas such as tourism, banking and finance, communications, wholesale and retail trade work in the service sector. Besides, a company may be owne y the state, or by private individuals. Privately -- owned and — run companies work in the private sectora It includes large corporations, SMEs (small and 34 MODULE 1 BUSINESS AND BUSINESSES medium sized enterprises) and individuals working on a selfemployed basis. A private enterprise is a system that allows individuals within a society to pursue their own interest without governmental regulation or restriction.) State -- owned and — run organizations are in the public sectorÄhe publis sector is controlled or supported financially by the government.LWe can also call it the state sector21t includes schools and hospitals, railways, the post office and so on. When a private company is bought by the state and brought into public sector, it is nationalized in a process of nationalization. A nationalized company is state-owned. When the state returns a company to the private sector in a selloff, it is privatized. This is privatization. The first to be sold Off in a privatization programme are often the companies responsible for the public supply of electricity, water and gas: the utilities. 35 Basic English of Economics A. UTYGINA Exercises in Word Study Ex.l. Form verbs and adjectives from the following nouns: classification, industry, owner, privatization, regulation, restriction, nationalization, responsibility. Ex.2. Give the English for: 6aHKiBCbKa cnpaBa, CHPOBHHHi MaTepiaJIH, roTOBi BHP06H, BHP06HHHHü ceKTop, (biHaHCH, 3B'H30K, 011TOBa Ta p03Äpi6Ha TopriBJIH, ceKTop nocnyr, BOJIOAiTH K0MnaHieo, npHBaTHa oc06a, 11PHBaTHHü ceKTop, npHBaTHe nimnpneMcTB0, mepxaBHe perYJIY0BaHHH, 06MexceHH1, mepxaBHMü ceKT0P, Haui0HaJ1i3auix, npHBaTH3auiH, KOMYHU1bHi nocnyrn. Ex.3. Match words from list A with words from list B that have a similar meaning: own company goods permit enterprise possess allow commodities in charge of restriction limitation responsible Ex.4. Find suitable opposites to the following words and phrases: retail trade, nationalization, private sector, regulation, stateowned organization, return, responsible. Ex.5. Match the nouns in the left hand column with the verbs in the right hand column. 36 MODULE 1 BUSINESS AND BUSINESSES businessdevelop assemble industryfinance sell componentsclassify start productprivatize close down companysupply interestpursue nationalize Ex.6. Choose the proper variant of the following examples of economic activity and put it in the correct column in the table below: fishing, catering, pig farming, ship building, forestry, mining, financial services, retail trade, car production, information services, tourism, house building, insurance, food processing, producing clothes, consultancy. the primary sector the secondary_yector the tertiary.sector Ex.7. Study the following diagram and fill in the blanks with suitable words from the diagram. 37 Basic English of Economic l. The true size of the ... economy can never be known. 2. Buying cheap tools is ... economy. 3. The government was blamed for not achieving a ... economy. 4. The government should do more to ... economy. 5.1 am sure, if you ... a few economies, we'll be able to afford a new computer. Ex.8. The frequently manufacturing «sector». words in the box prvøeø occur before insuranæ Find combinations that mean: 1) all the companies which assemble components into finished products, or which make goods from raw materials; 2) all the companies which provide services in areas such as tourism, banking and finance, wholesale and retail trade; 3) state — owned and — mn organizations, e.g. govemment departments, and nationalized industries; 38 MODULE 1 BUSINESS AND BUSINESSES 4) privately — owned and — run companies; 5) all the companies which provide insurance; 6) all the companies selling goods to the general public. Ex.9. Look at the words and phrases in the box. Match them with the correct definition from the list below: 1) the sale of goods in large amounts, and usually at lower prices, to stores and businesses; 2) organized activity producing goods and services, eg. food, banking, tobacco; 3) a natural substance, eg. wool, coal, used to make something in an industrial process; 4) the sale of goods to the general public; 5) controlling; making sure that an organization or a service works fairly and well; 39 MODULE 1 BUSINESS AND BUSINESSES 6) a limit on something; 7) one of the services supplying the public with gas, water, electricity, transport; 8) the sale of a business or service owned by the government to private owners; 9) the process of bringing a company, or different companies in the same industry, under government control; 10) a system for delivering goods or services. Ex.10. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. 2. 3. 4. 5. 6. 7. 8. Many young people are taking jobs in the rapidly growing — banking, computer programming, financial services. The computer . . . needs more people with advanced technical skills. Wood is the used to make paper. is the right to buy, own, use and sell almost any item. She is her own interest. She a bookstore. The workers in that factory . . . trucks. His . . . is located in the financial district. don't allow workers to use company cars for personal use. 10. of the banks is done by the government. 11. He his computers after going out of business. 12. The is powerful in the USA. 40 MODULE 1 BUSINESS AND BUSINESSES Sold off, regulation, restrictions, enterprise, assemble, owns, pursuing, private property, raw material, industry, service sector, electronic sector. Ex.ll. Fill in the missing prepositions. To say that privatization is unpopular . . . Britain is to say nothing. Every week brings fresh outrage tales bosses privatized firms picking huge pay rises while sacking employees and cutting the pay . . . those who remain. 41 Basic English of Economics A. LATYGINA The ordinary man, who has never liked privatization, wants the water and electricity industries to be renationalized. So what can be said . . . defence privatization? Actually a great deal. A few years ago many Britain's firms working . . . public sector were losing large sums . . . money. After they were privatized, most companies became more profitable. Most had higher sales and a higher share price than . . . their first year after privatization. (in-4, up, of-5). Ex.12. These words are often confused: to find — to found to find — to discover by searching or by chance to found — to establish Complete these sentences using the correct form of one of the words above. Make your own sentences to show that you understand the difference in their meaning. 1. Who were the . . . of the European Union? $ 10 on the sidewalk. 3: Economists . . . money in the budget to increase help to the poor. 4. We . . . our partners waiting for us at the restaurant. 5. His grandmother this company. 6. The . . . of that bank was a wealthy businessman. 7. I was lost but finally . . . my way back to the hotel. 8. Have any new multinationals been . . . recently? 9. He . . . a new job. 10. 1 the purse lying in a telephone box. 42 Basic English of Economics Ex.13. Build your vocabulary. Learn phrasal verbs for business! to sell something Off — to sell all or part ofa business, a company, etc. often at a low price in order to get rid of it. 43 MODULE BUSINESS AND BUSINESSES I Read these sentences carefully and translate them into Ukrainian. l. He sold the business off to pay his debts. 2. The business reduced its debts by selling off assets. 3. The company is probably too large for them to sell it off as a whole. 4. Unwanted land next to the factory has been sold off. 5. The company plans to sell off its IT division. 6. We acquired the company five years ago and sold it off last year. 7. Most of the assets have been sold off already. 8. The business was sold off last week. 9. Some of the firm's buildings and vehicles have now been sold off. 10. If the sell-off of the rail company goes ahead, many jobs witl be lost. Exercises in Comprehension Ex.l. Answer the following questions: 1. What do the productive sectors of the economy consist OP 2. What principle may businesses be classified to? 3. What companies work in the manufacturing sector? 4. What companies work in the service sector? 5. What companies work in the private/public sector? 6. What is a private enterprise? 44 MODULE BUSINESS AND BUSINESSES 7. When is a private company considered to be nationalized? 8. When is a company considered to be privatized? 9. What companies are the first to be sold off in a privatization programme? Ex.2. What is the difference between: a manufacturing sector — a service sector; a private sector — a public sector; nationalization — privatization. Ex.3. Sum up what the text says about business organizations and the economy. 45 UTYGINA Basic English of Economics A. Grammar Revision Past Simple and Past Continuous We use the Past Simple: •for events or actions in the past In her youth she worked hard at English. •for events that happened one after another I finished my translation and sat down to watch TV. We use the Past Continuous: •for actions in progress in the past I was doing the translation all afternoon. •for action that was in progress when another action happened. The second action is in the Past Simple. When we came she was interviewing a new secretary. •for actions in progress at the same time in the past The wind was blowin and it was rainin heavil Ex.l. Choose the correct variant I. He became/was becoming a very rich man when he was just 25. 2. The weather was terrible, it rained/was raining the whole day. 3. While Maria was writing the report, Henry looked/was looking for more information. 4. At 7 0'clock this morning she studied/was studying. 5. The student was reading a magazine while the professor spoke/ was speaking. 6. Henry ate/was eating a snack at midnight last night. 7. It snowed/was snowing heavily when he was waking up/woke up. 46 UTYGINA Basic English of Economics 8. He often borrowed/was borrowing from me when we were students. 9. When he was young he was going/went swimming every Sunday. 10. When I was shopping in Richmond Street I saw/was seeing a car accident. 11. I talked/was talking to my boss when you rang. 12. Last year they were dividing/divided their business into two. 47 MODULE 1 BUSINESS AND BUSINESSES Ex.2. Complete these sentences using the correct form (Past Simple or Past Continuous) of the verbs in brackets. 1. While my brother (study) for his exam, I (translate) a newspaper article into Ukrainian. 2. Tom (write) a letter to his family when his pencil (break). 3. 4. 5. 6. When I (clean) the house, I (find) some old letters. The doorbell (ring) while I (have) a bath. They (build) a new bank when I (be) there last year. My friend (own) this company but the state (buy) it and (bring) into public sector. 7. I (phone) my parents when the door bell (ring). 8. We (not hear) the phone because we (sing). 9. During his visit to Switzerland he (go) skiing every weekend. 10. While he (watch) television he (hear) a loud cry for help. 11. They (establish) the company in the 1990s. 12. When the phone rang, I (talk) to a client. Ex.3. True or false? Correct where necessary. 1. 2. 3. 4. 5. As a child I never was staying up later than ten o'clock. He was probably working in the office when we rang. She talked to someone on the phone when I came. I tried to learn the rule while someone outside played the guitar. French hypermarket companies were beginning their operations in the Spanish retail sector. 6. Public sector pay was rising by only 3 per cent last year. 7. Analysts predicted continued growth in the service sector last month. 8. Many people in the private sector were having to take very low pay increase last year. 48 MODULE 1 BUSINESS AND BUSINESSES 9. With a degree in business studies, she was hoping to find work in a multinational corporation. 10. In an effort to improve its image, the company launched a new public relations campaign. 49 UTYGINA Basic English of Economics A. Ex.4. Translate into English. I. BOHH AHBHJIHCfl TeneBi3iüHY nporpaMY, KOJIH npvläuma NtaTH i 110BiAOMHJ1a iM 6araT0 uiKaB0i iHd)opMauii. 2. AHrni51 3aKyr1HJ1a T0BapiB Ha E 2 MiJ1bMOHH B MHHYJIOMY Micqui. 3. BiH He BHKOHaB p060TY BqacH0 i TOMY 3aJIHL11HBCR B O(bici niCJ1}1 p060TH. 4. Moro POAHHa npHBaTH3YBana meKiJ1bKa BeJIHKHX Mara3HHiB Hamoro MiCTa ABa POKM TOMY. 5. BiH npnnHHHB nocTaqaHH51 06naAHaHH51 Hamoro 3aB0AY Lue y MMHYJIOMY poui. 6. BOHa npmneTina B KHiB o ÅecflTiV1 roAHHi paHKY i onpa3Y Ha (l)iPMY. 7. 8. VIOKH BOHa BLIHnaC51 Ha MeHenxepa, BOHH niKBiAYBaJIH fi d)iPMY. 9. MH A06pe HaBHHJIHC51 3aAOB011bHflTH r10Tpe6H Ha111HX KJ1ieHTiB, KOJIH HaMaranncq CTaTH JliÅepoM y ceKTopi nocnyr. KOJIH BOHH noqann P03UIHP}OBaTH CBiM 6i3Hec, BOHa 6yna BnaCHHKOM cB0€i Kopnopaqii. 10. Konn BiH nocTaqaB BaM CHPOBHHHi MarpiaJIH, BiH nepecJ1iAYBaB CBOT BJ1aCHi iHTepecu. ll. MH 06rOBOPK)BaJIH Hami nnaHH 140A0 P03L1.1HpeHH51 6i3Hecy, KOJIH 3aTene(b0HYBaB Haul KJ1ieHT. 12. He 3Ha}O, XTO 3acHYBaB uro K0MnaHi10. Speech and Discussion Ex.l. Talk to your groupmate: How important it is to like your job. Which is the most interesting to work in: a manufacturing sector, a service sector. 50 UTYGINA Basic English of Economics • Choose one of the sectors and speak about the advantages and the disadvantages of working there. Ex.2. If you were to choose where to work, would you prefer a public sector or a private sector? Why? 51 MODULE 1 BUSINESS AND BUSINESSES Ex.3. Discuss with your groupmates the advantages and disadvantages of: • privatization nationalization Ex.4. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. I. We would manage much better without the help of backseat drivers like Williams. 2. This business could be a gold mine if it were properly developed. 3. If you think Walsh will ever repay you, you are mistaken; I'm afraid you've put your money on the wrong horse. 4. We are in deep water; we may have to sell the shop to pay our debts. 5. Peter has blued all the money you gave him on gambling and drink. Ex.5. Comment on the proverb: «ln giving a man receives more than he gives.» 52 UTYGINA Basic English of Economics A. LESSON 3 Text: Ownership Grammar: Present Perfect Simple Terms to remember: join (v) purpose unlimited liability company limited liability company be liable for debt assets sole trader/sole proprietorship partnership/general partnership private limited company (BrE) [limited liability company (AmE) public limited company (BrE)/listed company (AmE) sharehold er share wealth offer (v) public Board 06 '€AHY'BaTHcfl, npH€AHY'BaTHc51 MeTa K0MnaHiA 3 He06MexeHOK) BiA110BinaJ1bHicno K0MnaHiq 3 06Me)KeH010 BiAflOBiAaJ1bHiCTIO 6YTH Biar10BiAaJ1bHHM 3a 60pr; 3060B'*3aHHS1 MaiiH0, aKTHBH OAHooci6Ha BJ1aCHiCTb TOBaPHCTBO 3aKpnrra aK11i0HepHa K0MnaHifl BiAKpHTa aKL1i0HepHa 53 UTYGINA KOMnaHifl 3 06Me)KeH010 BiAfl0BinanbHiCTto aKL1i0Hep aKuifl Basic English of Economics MaTepiaJ1bHi UiHHOCTi, 6araTcTB0 np0110HYBaTH JAPOMaACbKiCTb npaBJ1iHHfl, KepiBHHIU'BO franchise franchisee (K (l) oc stock exchange nil (l)0HA0Ba (5iP)Ka 54 MODULE 1 BUSINESS AND BUSINESSES Ownership A business is an organization of material, human, financial, and information resources that are joined together for a specific purpose. Not all businesses are owned and organized in the same way. Within each industry there can be a variety of types of business organization, each with their own legal structure. How a company is legally constituted will depend on its size and the laws of the country in which it is operating. In unlimited liability companies the owners are personally and entirely liable for the debts of the company. This means they may lose their personal assets (e.g., their house or their car) if the company is in financial difficulties. In a limited liability company (Ltd.) the owners are liable only for the amount of money they have invested in the business. This type of company is often quite small, and uncludes many family — run businesses. Unlimited liability companies are subdivided into sole traders (BrE)/ sole proprietorship (AmE) (a type of business organization owned and run by one person) and partnerships (BrE)/ general partnerships (AmE) (a firm run by two or more partners who share the risks and profits). A lot of professional people like lawyers, accountants and so on, work in partnerships. Limited liability companies are subdivided into private limited companies (Ltd) (BrE)/1imited liability companies (AmE) and public limited companies (PLC) (BrE)/1isted companies (AmE). A private limited company/limited liability company is a company which has shareholders (people who own the wealth of a company) but which cannot offer its shares to the public. A public-limited company/ listed company is a company whose shares can be bought and sold (publicly traded) on the stock exchange. Its shareholdeers receive a share of the profits every year (paid as dividends). These are large companies, and are run by managers under the supervision of a Board. 55 MODULE 1 BUSINESS AND BUSINESSES A franchise is a type of company in which the business owner allows other people (franchisees) to set up in business using the C Ompany's brandname, products and reputation. This type of company includes McDonald's and the Body Shop. N otes: A public limited company is privately owned. It is not run by the state. 56 Basic English of Economics A. I-ATYGINÅ Exercises in Word Study Ex.l. Form adjectives from the following nouns: organization, material, finance, information, purpose, specification, wealth, liability, owner, person, difficulty. Ex.2. Give the English for: (l)iHaHcoBi Ta iH(bopMaui1iHi pecypcn, KOMnaHiS1 3 He06M0KeHOIO Binn0BinaJ1bHiCT10, BJKICHHK, 6YTH VIOBHiCTIO BiA110BinaJ1bHHM 3a 60prH K0MnaHii, BTpaqaTH BJ1aCHe MaiHO, (l)inaHcoBi 'IVYAH0L1(i, K0MnaHiq 3 06MexeH010 BiÅ110BiÅaJ1bHiCTIO, OAHOOCi6Ha BJ1aCHiCTb, TOBaPHCTBO, 3aKp1d'ra aKL1i0HepHa K0MnaHi51, Bizvcpvrra aKL1i0HepHa KOMnaHifl 3 Binr10BinaJ1bHicrno, aKILi0Hep, npor10HYBaTH aKuii, nponaBaTH mcuii Ha d)OHAOBii 6iPKi. Ex.3. Match words from list A with words from list B that have a similar meaning. join purpose sole trader public limited company offer organize personal share sole proprietorship listed company propose aim unite stock arrange individual Ex.4. Find suitable opposites to the following words and phrases: 57 Basic English of Economics poverty, limited liability company, to buy, to disunite, to find, public. Ex.5. Find the odd word. l) company, business, firm, corporation, office, enterprise; 2) sole proprietorship, limited liability, public limited company, partnership, private limited company; 3) owner, investor, shareholder, consumer, managing director. 58 MODULE BUSINESS AND BUSINESSES I Ex.6. Match the nouns in the left hand column with the verbs in the right hand column. deb t asse t share s partnersh ip busines s Ex.7. Thewords occur afte«debt» r . Findcombinations thamean: l) a person employed to recover money owed t by a person or an organization; 2) paying loans back to the lender; 3) renegotiating the form of debts; 4) renegotiating the dates that debts are to be repaid; 5) the overall amount of an organization's debt; 6) a period when a debtor is having trouble repaying their debts. 59 MODULE BUSINESS AND BUSINESSES Ex.8. Look at the words and phrases in the box. Match them with the correct definition from the list below: sole proprietorship unlimited liability asset franchise debt sbare mvate u.üted c.any wealth IiLited 8åareå 60 Basic English of Economics A. LATYGINA I) a firm run by two or more partners; 2) a business owned by one person; 3) a company in which the owners are entirely liable for the debts of the company; 4) a company in which the owners are liable only for the amount of money they have invested in the business; 5) a company that may not offer its shares for sale to the public; 6) a company whose shares can be bought and sold on the stock exchange; 7) money owed by one person or an organization to another; 8) an item of value belonging to a person or a company; 9) one of many portions into which a company's capital is divided; 10) a market where stocks and shares are bought and sold under fixed rules; 11) a person who owns shares in a company and is, therefore, a member of the company; 12) (owning) a large amount of money, goods or property. 13) a license to operate an individually owned business. Ex.9. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. The person operating a owns the business in his or her own name. 2. Formed by two or more persons, the is considered a business entity. Each partner is responsible for the 3. All personal . . . of each partner are at risk if the business fails. 61 Basic English of Economics 4. . . . receive dividends in proportion to the capital they invest. 5. Being a she works long hours in her hairdressing business. 6. The partnership collapsed as a result of the criminal activities of one of the 7. He has . . . in British Gas. 8. He is a man of great 9. The . . . of going to school is to learn. 10. He works as a computer operator at the New York Stock exchange, wealth, purpose, shareholders, sole trader, partners, shares, assets, debts, partnership, sole proprietorship. 62 MODULE 1 BUSINESS AND BUSINESSES Ex.10. Fill in the missing prepositions. The limited liability company provides a framework . .. which a business can operate effectively. A limited company is usually the best vehicle . . . business. Shareholders inject capital and receive a return . . . proportion to the capital they invest. They are eligible to attend an annual general meeting . . . approve or otherwise the way the directors are running the business. Annual general meetings also determine how much . . . the profit will be distributed . . . shareholders. Control the company is . . . the hands of directors who are appointed . . . the shareholders to run the company . . . their behalf. (on, by, of-2, to-2, in-2, for, within) Ex.ll. These words are often confused: to offer — to suggest to offer— to propose something, express willingness to do something e.g. He offered me a job. to suggest — to propose something to do, to offer an idea or a plan for consideration e.g. 1. We suggest contacting the manufacturer directly. 2. I suggest we have dinnerfirst. 3. He suggested various ways in which the service could be improved. Complete these sentences using the correct form of one of the words above. Make your own sentences to show that you understand the difference in their meaning. 1 . 1 . a new plan. 2. I . . . to take my friend to dinner. 3. They . . . fresh investments in our business. 4. He . . . that we have lunch at the hotel. 5. She . . . me a cigarette every time I see her. 6. They . . . him a job last week. 63 MODULE 1 BUSINESS AND BUSINESSES 7. He . . . I look through the documents once more. 8. Our company . . . different services to our customers. 9. My friend . . . that we join our small firms. 10. His company . . . just its shares to the public. 11. He . . . going to the stock exchange. 12. I . . . you buy more shares of this company. 64 Basic English of Economics A. UTYGINÅ Exercises in Comprehension Ex.l. Answer the following questions: 1. Are all businesses owned and organized in the same way? 2. What is the simplest form of business ownership? 3. What are the owners liable for in unlimited liability companies? 4. What are the owners liable for in a limited liability company? 5. What are unlimited liability companies subdivided into? 6. What is a partnership? 7. What are limited liability companies subdivided into? -8. What is a private limited company? 9. What is a public limited company? 10. Is a public limited company privately or state-owned? Ex.2. Complete each explanation with a pair of words from the box. debt/ liability firm/partnership is simply money that somebody owes. A refers to an amount of money that a company owes, but it can also mean the legal responsibility for paying something. 2. The word can just be a synonym for «company». But it is more often used for a small company providing a professional service, such as a of accountants, lawyers or architects. 65 Basic English of Economics Ex.3. Read the information about the four companies and say which matches each of the terms in the box. a franchise a sole trader a limited company a public limited company 1. John Brown set up online music store last year. He owns the store and manages it buy himself. 2. Orion is a medium-sized firm whose shares are available on the stock market. 66 MODULE 1 BUSINESS AND BUSINESSES 3. Vega went bankrupt last year, but its shareholders were not made responsible for all the money it owed. 4. Supermoda is a large international company who sells the right to sell goods using its name to other smaller businesses. Ex. 4. What is the difference between: an unlimited liability company — a limited liability company; sole proprietorship — partnership; a private limited company — a public limited company. Ex.5. Sum up what the text says about: unlimited liability companies and limited liability companies, sole traders, partnerships, private limited companies, public limited companies. Grammar Revision 67 MODULE 1 BUSINESS AND BUSINESSES Present Perfect Simple We use the Present Perfect Simple: • for the action or situation which is finished We have painted the whole house. • for recent actions or events in the past that have a result in the present You have broken the window! • for actions or situations that began in the past and continue in the present Windsor Castle has been a royal residence since the 1 1 century. Time words or expressions which are often used with the Present Perfect Simple: for, since, just, already, yet, this morning (week), in the last few da s, recentl , latel /of late never, ever, so far. 68 Basic English of Economics A. UTYGINÅ Ex.l. Look at the expressions in the box: I. Divide them into those which talk about a present period and those which talk about a past period. 2. Choose 3 expressions from each list and write sentences about your own educational experience. in Get Ex.2. Choose the correct variant: l. He publisheWhas published a new book twice already. 2. I never was/have been to Italy, but I have gone,Åvent to England last May. 3. I sent [have sent them an E-mail this week. 4. Did you registerÆIave you registered your ticket yet? 5. The plane from Paris has lande&landed an hour ago. 6. How many schools did you study/have you studied in? 7. The shop never made/has made any money. 8. Did it stop/TIas it stopped snowing yet? 9. He was/has been in his office since early moming. 10. Mary called/has called her employer yesterday. I l . I answered/have answered three letters so far. 12. She was/'has been away on business since last Monday. Basic English of Economics Ex.3. Complete these sentences using the correct form (Past Simple or Present Perfect Simple) of the verbs in brackets. l . People (begin) to watch TV about 50 years ago. 2. J am looking for Tom. You (see) him? 3. J (see) him last week, but not today, MODULE 1 BUSINESS AND BUSINESSES 4. When I was a child, I never (eat) cheese, 5. He (organize) his sole proprietorship this year. 6. This morning I (take) a little walk. 7. We (be) to our main office since 7.30. 8. I (know) the owner of this company all my life. 9. The company (change) a lot lately. 10. It (not rain) here for weeks. 11. She (be) a regular investor in my business. 12. How long you (be) in your current job? 13. He (have) several jobs since he left our company. Ex.4. True or false? Correct where necessary. 1. 2. 3. 4. 5. 6. Your fax has arrived three days ago. I haven't been to the office since Sunday. Has anyone seen my car keys? I have passed my driving test. I already had four cups of coffee today, and it's only lunchtime! I have been to most counties of Africa but I never visited Congo. 7. He has passed his exams last May. 8. He was busy all this week. 9. There is a lot of work to do recently. 10. Computers have become very important lately. 11. Don't worry about the order from Sony. I already dealt with it. 12. Over the last year or so, shareholders of this company made a 50% profit. Ex.5. Translate into English: 1. 2. BOHa 3aB>KÅH ÅaBana MeHi 6araT0 KOPHCHHX nopan y 6i3Heci, MH He 6aHH11H Moro BHC 2 POKH. 71 MODULE 1 BUSINESS AND BUSINESSES 3. 4. 5. 6. 7. LUOÄHO 3arjnaTHB i0MY 3a LUO p060TY. TiJ1bKH Luo npoqvrraB 3BiT Hall/HX napTHepiB. BH He mepxcanm Bin Hboro )1COAHoro JIHc•ra, qn He TaK? BiH HajiiCJ1aB HaM Ili AOKYMeHTH r103aBqopa. HeB>Ke BiH rJOBiÅOMHB BaM RIO HOBHHY? 72 MODULE 1 BUSINESS AND BUSINESSES A. UTYGINÅ 8. Y MeHe 6YB BiJ1bHH1i qac i IIPOJIHBHBCSI Barn K0HTpaKT. 9. TB0i APY'3i 11PHHeCJIH T06i 6araT0 KBiTiB i nonapyHKiB. 10.noro 6yna Ha;xpYK0BaHa B Ha1110MY >1cypHaJ1i. l l. MH 06r0BOPHJIH 11J1aH cniBP06iTHHLITBa 3 Llicro d)iPM0K) JIBi roam-IH TOMY. 12. BOHR iHBeCTY'Ba,1H B Mili 6i3Hec Bej1HKY KiJ1bKiCTb rpomePi. Speech and Discussion Ex.l. Talk to your groupmate: • IMIich is the most interesting to work in: sole proprietorship, partnership, a private limited company, a public limited company. • Choose one form of business ownership and speak about the advantages and the disadvantages of working in this type of business. Ex.2. Interview an owner of a sole proprietorship, ask the following questions: I. Why are you in business? 2. Why did you choose this particular type of business? 3. What advantages and what disadvantages do you feel the sole proprietorship has over other forms of business ownership? 4. How difficult is it to borrow money? And how do you arrange for additional funds? 5. Why do you prefer to stay independent? 73 Basic English of Economics 6. What advice do you have for someone who is thinking about going into business? Ex.3. You want to open a business. What ownership form would you use? Why? Ex.4. What do you think are the advantages of a small family-run business? for the consumers/clients? for the owner? for the employees? Ex.5. What do you think the success of business depend Ex.6. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. Despite the efforts of the government, the black economy continues to grow. 2. I didn't know how to break the ice with him. We were both shy and had nothing in common. 3. We must bring these partners to book; they deserve severe punishment. 4. We had to work on a shoe-string, with hardly any staff. 5. I could tell from the expression on the men's faces that something was cooking. 74 MODULE 1 BUSINESS AND BUSINESSES Ex.7. Comment on the following: «Genius without education is like silver in the mine». (Franklin) 75 Basic English of Economics A. I-ATYGINÅ LESSON 4 Text: Business Relationship Grammar: Present Perfect ContinUOUS Terms to remember: relationship BiAHOCHHH subsidiary noqipH51 KOMnaHiq, niJIK0HTp0J1bHa KOM11aHiq, parent company KOMnaHiR3aCHOBHHK; K0MnaHiR, 1110 BOJIOAiC KOHTPOJ1bHHM naKeTOM aKui}ä iHL110i K0MnaHii, 6aTbKiBCbKa KOMnaHiR holding company XOJIAHHroBa KOMnaHiR hold (v) BOJIOAiTH stake qacTHHa (qorocb), qacTKa (KaniTaJIY), aKuiR sister companyceCTPHHCbKa K0MnaHifl associated companyad)iJ1iü0BaHa (AOHiPHR) KOMnaHiA conglomerateK0Hr110MepaT joint venturecniJ1bHe niÅ11PHCMCTB0 remain (v)3aJIHU1aTHCb separate0KpeMHii legal entity}OPHÅHHHa oc06a consortium GQ KOHCOPUiYM undertake (a project) P03110HHHaTH, 3AiäCH}OBaTH (v) (npoeKT) carry out (v) BHKOHYBaTH, 3ÅiiiCHEOBaTH 76 MODULE 1 BUSINESS AND BUSINESSES Business Relationship As businesses expand they may buy shares in other companies, or join with other companies for a particular purpose. There are different relationships these companies can have with one another. A group is a number of subsidiary companies operating under one leading company known as the parent company. A subsidiary is a company that is half or wholly owned by another company (the parent company). A holding company is one that holds all, or more than half of, the stakes in one or more subsidiaries. It is the leading company in a group. A holding company's relationship to its subsidiaries is that of parent company, and the subsidiaries' relationship to each other is that of sister companies. The parent company controls its subsidiaries through its capital interests. An associated company is a company in which between 20% and 50% of the shares are owned by another company or group. A conglomerate is a group consisting of a lot of different companies in different businesses run as one large company. When two or more companies decide to work together, they form a joint venture. In such cases, the two companies involved remain separate legal entities. A consortium is a group of companies which come together to undertake a project which any one of the members cannot carry out alone. Exercises in Word Study Ex.l. Form adjectives from the following verbs: hold, subside, separate, join, relate, lead, differ, expand, operate, know, decide. Ex.2. Give the English for: 77 MODULE 1 BUSINESS AND BUSINESSES ÅiJ10Bi BiÅHOCUHH, P03L11HPK)BaTU 6i3Hec, KY11YBaTH aKuii, 06'eÅHYBaTHC51 3 iH111HMH KOMnaHiSIMH, np0BiAHa KOMnaHi51, KOMnaHiq-3aCHOBHHK, (binifl, XOJIÅHHrOBa K0MnaHiq, aKuiR, cecTPHHCbKa K0MnaHiq, cniJ1bHe nianpmeMcTB0, ropmmnql-la oc06a, 3ÅiVfCH10Barrm npoeKTH. 78 Basic English of Economics Ex.3. Match words from list A with words from list that A. UTYGINÅ have a similar meaning: consist stay stock parent company separate different from smth. else carry out make up one's mind operate share holding company fulfil hold function decide be composed of remain own Ex.4. Find suitable opposites to the following words and phrases: to shorten, to sell, similar, subsidiary, joint, legal, to leave. Ex.5. Match the nouns in the left hand column with the verbs in the right hand column. start stakesform acquire venturehold own projectset up undertake subsidiarydevelop joint Ex.6. The words in the «company»: box frequently occur before 79 Basic English of Economics bOldJng Joint-stock // company sister subsldløry 80 MODULE 1 BUSINESS AND BUSINESSES Find combinations that mean: I) the leading company of a group that holds all or more than half of the shares of the other companies and usually controls other companies; 2) one of two or more organizations that are part of the same group; 3) a business formed by a group of people using money provided by them all; 4) a company of which at least half the share capital is owned by another company, called a parent or holding company; 5) a company whose shares are recorded on the main market of a stock exchange; 6) a company whose members are only responsible for its debts up to a limited amount 7) a company that offers the same or better goods and services as another and therefore competes for the same customers. Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below: consortium gpsutpake Iøgøl venture parent company 1) a connection between ideas, people or things; 2) the leading company in a group; 3) a holding company together with any subsidiary companies in which it owns more than half of the share capital; 4) a business activity in which two or more people or organizations work together; 5) a sum of money invested in a business; 81 MODULE 1 BUSINESS AND BUSINESSES 6) a number of companies, sometimes involved with different products, joined together and run as one large company; 7) a temporary association of two or more companies for a major project that is too complex for any of them to do alone; 8) allowed or required by law, lawful. 82 Basic English of Economics A. LATYGINA Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. One of the oldest breweries has now joined an international of drinks manufacturers. 2. There are now five companies in the group. Each trades under its own name. 3. The businessman formed a company company to control all his assets. 4. They have a 25% . . . in the business. 5. Our . . . company may share some of the advertising costs with us. 6. An American and a German auto maker agreed to form a . to build trucks. 7. Those two companies have a close working 8. She . . . stocks of 12 companies. 9. This product has . . . popular for many years. 10. The company will . the building of a large warehouse. 11. The cost of making the product and the cost of selling it are two . . . issues. Undertake, remained, holds, relationship, joint venture, sister, stake, holding, subsidiary (2), conglomerate, separate. Ex.9. Fill in the missing prepositions: 83 Basic English of Economics 1. The group's shares fell 10 per cent a fall in the home market. 2. Our parent company has its headquarters Finland. 3. Nestle Corporation its many branches and subsidiaries, is one . the world's largest food manufacturers. 4. Multinational corporations now operate every sector industry. 5. Philip Morris is a holding company which owns several major American companies . . . the tobacco and food industries. 6. Warner Bros. is an entertainment conglomerate that produces television programmes . .. broadcasting all over the world. 84 MODULE 1 BUSINESS AND BUSINESSES 7. Japanese and US firms . . . the textile industry continue to enter . joint ventures . . . India. 8. The hotel was finally rescued a consortium . . . local business owners. 9. I work . . . a construction company which has a lot . . . contracts other countries. 10. The partners . a joined venture agree to control and manage the business together. (into, for (2), of (4), with, in (7), by (2), because of) Ex.10. These words are often confused to rise to raise to rise — is an intransitive verb, i.e. it cannot take an object e.g. Prices rose last month. to raise — is a transitive verb, i.e. it isfollowed by an object. e.g. They raised the prices. Complete these sentences using the correct form of one of the words above. Make your own sentences to show that you understand the difference in their meaning. I . Many firms try to survive by . . . productivity. 2. We are trying . . . money to buy a new computer class. 3. My boss . . . my salary by 5%. 4. The petrol prices . . . by 15 % this week. 5. West European car sales . . . from I to 1,5 million. 6. Sales have . . . by 8 % this month. 7. We have . . . our profit levels by 10 %. 8. They managed to sufficient capital to keep the company buoyant. 9. She . . . the question of overtime payments. 10. His report . . . some valuable points. I l. Companies needing money for development may . .. capital on the stock exchange by selling shares. 85 MODULE 1 BUSINESS AND BUSINESSES 12. Large and small businesses need a capital market in which they can . . . finance. 13. Prices are . at an alarming rate. 14. They . . . their fees last year. 86 Basic English of Economics A. UTYGINA Ex.ll. Build your vocabulary. Learn phrasal verbs for business! to carry something out -- to do and complete a task or 10 do something that you have promised to do or thal someone has asked you to do. Read these sentences carefully and translate them into Ukrainian. 1. We need to carry out an assessment of the risks. 2. When do they think they'll be able to carry thc rcpairs out? 3. These changes are so expensive that very few companics can carry them out. 4. Safety checks were carried out by inspectors. 5. Scientists are currently carrying out tests to discover the cause of the problem. 6. We carry out safety checks every two weeks. 7. The two audits were carried out by D&T. 8. My job is to carry out a review of procedures. 9. He carried out his threat to sue the company. 10.You didn't carry out my instructions correctly. Exercises in Comprehension Ex.l. Answer the following questions: 1. What do you know about different relationships that companies can have with one another? 87 Basic English of Economics 2. What is a group? 3. Is a subsidiary owned by another company? 4. What is a holding company? 5. What is a conglomerate? 6. Under what circumstances is a joint venture formed? 7. Why do companies unite into a consortium? Ex.2. What is the difference between: a parent company a sister company a group -- a joint venture a conglomerate -- a consortium 88 MODULE 1 BUSINESS AND BUSINESSES Ex.3. Which terms refer to organizations that control another company, and which refer to companies whose shares are held by another company? • A holding company • A parent company • An associated company • A subsidiary • A sister company. Ex.4. Sum up what the text says about: parent companies subsidiaries conglomerates • joint ventures a consortium Grammar Revision Present Perfect Continuous We use the Present Perfect Continuous: to talk about actions or situations that began in the past and continue in the present He has been working for Lloyds since 1998. • to talk about a recent action that has a result in the present I have been working on the project — that's why I am so tired. Ex.l. Choose the correct variant: 89 MODULE 1 BUSINESS AND BUSINESSES 1. 2. 3. 4. He has developed /has been developing a new product for a month. She has worked/has been working overtime since May. My firm has sold/has been selling shares since September. Have you read/have you been reading our company development programme all day? 90 Basic English of Economics 5. I have waited/have been waiting for our partners since 2 0'clock. 6. I have worked/have been working so hard that I haven't seen my family for weeks. 7. They have exhibited/have been exhibiting this new model since May. 8. My friend has looked/has been looking around for a new flat, but he hasn't found it yet. 9. What new products have you advertised/have you been advertising since I last visited you? 1.0. How long have you worked/have you been working as a consultant? 11. I have tried/have been trying to ring them all day. 12. I have run/have been running the company since 2000. Ex.2. Complete these sentences using the correct form (Present Perfect Simple or Present Perfect Continuous) of the verbs in brackets. 1. I'm exhausted I (work) all day on my business plan, and I (not finish) it yet. 2. I (shop) all morning, but I (not buy) anything yet. I haven't seen anything I've liked. 3. I (wait) for two hours, but nobody (arrive) yet. 4. I (listen) to you for the past half an hour, but I'm afraid I don't understand your new idea. 5. The company (not make) any money for 2 months. 6. This shop never (make) any profit. 7. He (not have) a holiday for years. 91 Basic English of Economics 8. My friend (be) President of the holding company for 3 months now. 9. I (read) a lot of special literature lately. 10. The parent company (finance) its subsidiary for 2 months. 11. How long you (work) for them? 12. We have spoken to each other on the phone, but we never (meet). 92 MODULE 1 BUSINESS AND BUSINESSES Ex.3. True or false? Correct where necessary. 1. We have been thinking of ways to help our sister company for a week already. 2. Our President has decided to change the management structure last May. 3. We have been placing an advertisement in Accounting Journal this Month. 4. They have raised the prices for gas last week. 5. They have been expanding their business for 6 months. 6. We have bought more than half of the shares of this company last month. 7. I have prepared the annual report since early morning. 8. My uncle knows everything about finance. He has been working as a financial manager for 20 years. 9. I have been sending them a fax today. 10. My brother has quarrelled with his boss yesterday. 11. Bill is a natural salesman. He has been selling 10 cars since the beginning of the week. 12. I wonder how Mary is getting on. I haven't heard from her for nearly a month. Ex.4. Translate into English: 1. BiH peM0HTye MaL11HHY B)Ke ABi roÅHHH. 2. BOHH nepeKnana}0Tb AOKYMeHTH Ha awniVICbKY MOBY uiJIHii paHOK. 3. BH rl'€Te Aymce 6araT0 KaBH OCTaHHiM qacoM. 4. BiH npauroc B uiä K0MnaHii 20 POKiB i me HiKOJIH He 3ani3H}0BaBcq. 5. KJ1iCHTH LliJIHVf paHOK. 1110Cb Tpannnocb 3 KOMr1'}OTePOM. 6. MeHi 3Åa€Tbcq, LAO CTO}O B uiii qep3i uiny BiHHiCTb. 7. Ilpe3HneHT K0MnaHii p03rnmae MO}0 3aflBY B)l€e TH)KneHb. 51 CllOJ1iBaJOCb Ha 1103HTHBHY BiAr10BiAb. 93 Basic English of Economics 8. fl p061J}0 [IOKYTIKH B LlbOMY Mara3HHi B)Ke 15 POKiB. 9. OCTaHHiM qacoM BHP06HHqHV1 ceKTop B CBponi nocTi1iH0 3MeH111YC KillbKiCTb p060qux MiCUb. JO. BOHH gaViWd10TbC51 MOJIeJ1bHHM 6i3HecoM pa30M B)Ke 10 POKiB. I l. AK J&BHO BH npaLUOCTe Elan ILHM upoeKTOM? 12. I-lame CiliJ1bHe IliJ111PHCMCTBO LILOMHO CTBopeH0. A. LATYGINA Speech and Discussion Ex.l. Talk to your groupmate: Which is the most interesting to work in; A parent company, a sister company, a joint venture, a conglomerate; Choose one company and speak about advantages and disadvantages of working there. Ex.2. Discuss with your groupmates different relationships companies can have with one another. Ex.3. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. It's a good job you weren't at home when Jim called; he was in such a bad temper. 2. It's no good going to Mr. Brown for advice; he is only a sleeping partner. 94 MODULE 1 BUSINESS AND BUSINESSES 3. We were all expecting him to fail, but he passed with flying colours. 4. It is better to tell a white lie than to lose a friend. 5. Since her wedding day my mother-in-law has been wearing the trousers. Ex.4. Comment on the following: «Self-confidence is the first requisite for great undertakings» (Samuel Johnson). 95 BUSINESS AND BUSINESSES MODULE 1 LESSON 5 Text: Companies' Restructuring Grammar: Past Perfect Simple Terms to remember: restructure (v) peopraHi30BYBaTH, nepe6YA0BYBaTH witness (v) market combine (v) voluntarily 6YTH CBiÅKOM (qorocb) merge (v) PHHOK 06'eAHYBaTHCA A06POBiJ1bHO, 3a BJ1aCHHM 6a)KaHHSIM 3J11dBaTHCfl, 06'eAHYBærmcR, norJIVIHaTH merger 3JIHT1'51, norJIH1-1aHHA controlling share qacTKa B KaniTaJ1i K0MnaHii, 3a6e3neqye KOHTPOJ1b 3a ti AiWlbHiCTYO acquire (v) 11PHA6aTH make an acquisition take over (v) npHA6aTH hostile takeover norJIHHaTH (KOMnaHiK)) (B 6i3Heci) omepxaHH51 KOHTPOJI}O Han K0MrraHieyo np0TM 6axaHHfl Ti Mel-lemxo.,femy; BOP0)Ke norJIHHaHHfl raider peimep (11PUBaTHa oc06a a60 Kopnopauifl-iHBecTop, LILO Mae Harvfip OTPMMaTH KOHTPOnb Haxt K0MnaHi€}0 UIJMXOM npHA6aHHf1 A 96 BUSINESS AND BUSINESSES KOHTPOJ1bH01O naKeTa aKL1iü i white knight 11PH3HaqeHHfl HOBHX KepiBHHKiB) JIHL1ap» (AppKHf1 K0Mna- Hig-norcyneub, 51K)' HaMaraeTbcq 3aJ1yt1HTH KOMnaHi51, 1110 06'€KTOM Bopoxoro norJIHHaHH51) 97 e Basic English of Economics A. UTYGINÅ «otpyrma nirynKa» (crpareriR, poison pill BHKOPUCTOBy€TbCA KONtnaHi€yo, e 06'€KTOM nor,'1HHaHHA, Toro, 11106 3P06HTH CBOT aK11ii MeHU1 discount willingly 3HH)KKa make a bid (for something) p06HTH np01103Hui10 (1110A0 price buyout uiHa npHA6aHHfl KOHTPOJ1bHOro naKeTa aKuiü, BHKYII purchase staff divest of (v) 3aKyniBJIR, noKYTIKa pull out (v) BiAMOBJ1flTHCfl Bin yqacTi B qoMYCb abandon (v) efficient profitable BiAMOBJ1flTHCR, '3aJIHU1aTH oxoqe; A06POBi.AbHO, 6e3 npHMycy KY'11iBJ1i qorocb 3a 3a3HaqeHY uiHY) nepcomn, LilTaT (cj1YK60BL1iB TOIÅO) BiAMOBflHTHCq; BiAKunaTH ed)eKTHBHHM 11PH6YTKOBHÄ uiJ1b, Meta Companies' Restructuring In the world of business we can often witness changes to the ownership or structure of companies and groups of companies. As a rule companies join with or buy other companies in order to have better control of a particular market, to diversify their business, to strengthen their operations to remain profitable. 98 Basic English of Economic When two companies combine, usually voluntarily, they merge to form one company in an agreement known as a merger. 99 MODULE 1 BUSINESS AND BUSINESSES To buy another company or to win a controlling share of a company is to acquire a business, make an acquisition or take over a company. There are two types of takeover: a hostile takeover is a situation in which a company is bought out when the owners do not want to sell. Individuals or companies that want to take over other companies are called raiders. Companies have various ways of defending themselves against a hostile takeover. They can try to find a white knight — another company that they would prefer to be bought by. Or they can use the poison pill defence («eat me and you'll die!») which involves issuing new shares at a big discount. This reduces the holding of the company attempting the takeover, and makes the takeover more expensive. A friendly takeover takes place when a company is willingly bought out. When someone wants to buy a company they have to make a bid for it, i.e. offer to buy it at a certain price. A buyout is the purchase of a company usually by buying the majority of shares, especially by its management or staff. The abbreviation MBO is also used. If a company sells a business, it divests itself of that business. If you pull out of a business activity, you abandon it, perhaps as part of a programme of restructuring: reorganizing a business with the aim of making it more efficient and profitable. Exercises in Word Study Ex.l. Form adjectives from the following nouns: efficiency, profit, aim, price, will, hostility, volunteer, change, control, activity. Ex.2. Give the English for: CBiT 6i3Hecy, 3MiHH B cTpyKTypi K0MnaHii, 06'eAHYBaTHCR A06POBiJ1bHO, 11PHA6aTH 6i3Hec, norJIHHaTH KOMnaHiro, BJ1aCHHK 100 MODULE 1 BUSINESS AND BUSINESSES K0MnaHii, KY'11YBaTH (npmaBaTH) KOMnaHi10, BiAMOBJ1flTHCR Bia Ai%flbHOCTi, 3aJIHL11aTH 6i3Hec, 11PHÅ6aHHA KOHTPOJ1bHOro naKeTa aKL1iji, nepc0HC1, nporpaMa peopraHi3auii 6i3Hecy, npH6YTKOBHii 6i3Hec, MeTa, 3HH)KKa. 101 Basic English of Economics Ex.3. Match words from list A with words from list B that have a similar meaning: witness buy aim staff make an acquisition enter new types of businesses win share hostile takeover bid pull out stop participating acquire observer purchase purpose gain stock diversify offer to sell something at a certain price unfriendly takeover personnel Ex.4. Find suitable opposites to the following words and phrases: a friendly takeover, to sell, demerger, inefficient, unprofitable, worse, involuntarily, to lose. 102 Basic English of Economics Ex.5. Match the nouns in the left hand column with the verbs in the right hand column. market increase mergerflood make takeover reduce acquisitiontake part play bidagree (to) fight in pricefix 103 MODULE 1 BUSINESS AND BUSINESSES Ex.6. The words in the box frequently occur before «market». consumer buyerS bear commodiY market æplül bu// sellers Find combinations that mean: l) the illegal economy, not approved by a government; 2) the situation of buying and selling goods for personal use, not for resale; 3) a place where raw materials and some manufactured goods are bought and sold; 4) any market where there is a lot of buying and selling; 5) a place where deals are made relating to the long-term investment needed by businesses; 6) a market where certain securities are plentiful and prices are low because there are few buyers; 7) a market where foreign currencies are traded; 8) a market where conditions are good for the buyer; 9) a market where conditions are good for the seller; 10)a financial market at which the value of stocks and bonds goes down; I l) a situation in a financial market where prices are rising and lots of shareholders are buying. 104 MODULE 1 BUSINESS AND BUSINESSES Ex.7. Look at the words and phrases in the box. Match correct from below: them acquisiüon with the white knight merger dismunt star definition the list 105 Basic English of Economics A. UTYGINA 1) a business or part of a business taken over or bought by another company; 2) a person who saw something and can tell about it; 3) the buying of one company or most of the shares in it, by a person or another company; 4) 5) 6) 7) 8) 9) (in business) combining two companies into one larger company; an offer to sell something at a certain price; the amount ofmoney for which something can be bought or sold; the purchase of a controlling interest in business; the workers or employees of an organization; a situation where a person or an organization owns enough shares (usually more than 50%) in a company to say how it should be run. 10)a person or company that buys a large number of shares in another company before making a takeover bid or obtaining control. 11)a price below the usual or advertised price; 12)a friendly partner who, by taking a stake in the company, prevents a complete takeover by a hostile company. Ex.8. Fill in the missing words which relate to business integration: I. When two companies combine to form a larger single company, the new company is the result of a 106 Basic English of Economics 2. When a company is incorporated into another firm that has bought the major part of its shares and thereby gained control, we are witnesses to an 3. is a form of integration which can be accomplished cither in aor a hostile manner. 4. One way of avoiding is the decision by senior executives to attempt a 107 MODULE 1 BUSINESS AND BUSINESSES Ex.9. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. J. This deal should be highly . . . . 2. We have . . . of twenty. 3. Choose carefully before making 4. We can't afford to buy the computer at that . 5. Our company made . . to sell coffee beans at $ 10 per pound. 6. The family will never sell more than 49 per cent of the shares; they don't want any possibility of . 7. The software company's of Acme Company will help it compete in the hardware market. 8. The directors of both companies met to discuss the terms of 9. The two insurance companies have agreed 10. We . .. the project because it was too expensive. l l . determines what goods are made. The market, to merge, the merger, acquisition, a takeover, a bid, price, a purchase, a staff, profitable, abandoned. Ex.10. Fill in the missing prepositions and adverbs: l. Rumours a takeover led a sharp rise in the company's share price. 2. The company has launched a bid . . . a hostile takeover . its main rival in the sector. 3. . a result . . . the friendly takeover ... Eastern Foods Ltd., we can witness a substantial increase . earnings. 4. His company makes a bid Telecom Spain. 5. Santrix Corporation was taken Chesterton Corporation two years ago. 6. Making an acquisition . . . the computer industry will greatly improve the company's position . . . the market. 7. Many American banks have merged . . . the last 5 years. 108 MODULE 1 BUSINESS AND BUSINESSES 8. Talks a merger Daimler and Chrysler caused speculation . . . job security. 9. The staff signed a birthday card . .. me. 10. Two banks underwent a merger and combined one operation. (of(S), to, for (3), as, in (4), by, over, into, between, about) 109 huge Basic English of Economics UTYGINA Ex.ll. These words are often confused: to learn — tofind out to learn — to gain knowledge; to gain new information about a situation, event or a person tofind out — to discover afact orpiece ofinformation (something that was previously unknown) Complete these sentences using the correct form of one of the words above. Make your own sentences to show that you understand the difference in their meaning. 1. She . . some American history in high school. 2. I just ... that the payment is due tomorrow. 3. He is ... how to use a computer. 4. We ... about the accident from my friend. 5. She lost so much money in the stock market that she . a lesson. 6. Please ... when they will discuss the terms of the merger. 7. When did you ... about the acquisition of their companies? 8. We were glad ... this good news. 9. We have not yet ... whether he got the profit. 10. Please ... how to get there. 11. Most of these business stories are true and we can . . . a lot from them. 12. I am returning the machine so you can . . . what is wrong with it. Ex.12. Build your vocabulary. Learn phrasal verbs for business! 110 Basic English of Economics to take something over to gain control of a company, especially by buying shares. Read these sentences carefully and translate them into Ukrainian. I. They have made an informal offer to take over the airline. 2. The government took the electricity company over as part Of 3. The company was making huge losses when we took it over. 111 MODULE 1 BUSINESS AND BUSINESSES 4. Analysts think that electronics group will be taken over by a rival. 5. The telecoms company was taken over by a private operator. 6. The giant textile group has taken over its nearest rival. 7. Only one electricity company can take over a bigger share of the power market. 8. Several companies are bidding to take over the food retailer. 9. Do you know that an American group is taking over the local car maker? 10. The business was already highly profitable when Blake Ltd. took it over. Exercises in Comprehension Ex.l. Answer the following questions: l . What can we often witness in the world of business? 2. Why do companies join with or buy other companies? 3. What happens when companies combine'? 4. What do we mean by «making an acquisition»? 5. What types of takeover exist in business? 6. What is a hostile (a friendly) takeover? 7. What do you have to do when you want to buy a company? 8. What is a buyout? 9. Why do businessmen restruct their business? Ex.2. What is the difference between: a hostile takeover — a friendly takeover a buyout — a takeover a merger — an acquisition Ex.3. Sum up what the text says about: • a merger, making an acquisition, 112 MODULE 1 BUSINESS AND BUSINESSES • two types of takeover, • a buyout. 113 A. Basic English of Economics LATYGINA Grammar Revision Past Perfect Simple We use the Past Perfect Simple • to talk about an action or event in the past that happened before another action in the past. The second action in the past is in the Past Simple He had abandoned his business by the time I arrived in this city. • to talk about an action or event in the past that happened before a definite time in the past. I had never been to London until this year. • to give a reason for a past event or action He didn't come because he had missed the train. Ex.l. Choose the correct variant. 1. He established/had established his business in 2001. 2. I was late for the company meeting because I missed/had missed the 6 0'clock bus. 3. She entered the University after she graduated/had graduated from the business school. 4. We arrived late at the stadium and the football match had started/started. 5. When we came back to the hall, the guests left/had left. 6. Her face was familiar, I met/had met her at the university before. 7. Most of the delegates arTived/had arrived by the time I got there. 8. The general manager reported that our company had/had had a successful year. 114 A. Basic English of Economics 9. Before these two companies merged, their profit was/had been very low. 10. The plane left/had left when we arrived at the airport. 11. Did you manage to see your boss, or has he gone/had he gone by that time? 12. They were/had been our customers before we diversified our business. 115 MODULE 1 BUSINESS AND BUSINESSES Ex.2. Complete these sentences using the correct form (Past Perfect Simple or Past Simple) of the verbs in brackets. l . Ilc already (work) in business before he joined our company. 2. We (win) a controlling share of the company before they wcnt out of business. 3. They just (start) their business when we worked out a programmc of restructuring. 4. As soon as this company (be privatized) their cxpcnditurcs increased. 5. After they (invest) in this business, our share prices went up. 6. They (decide) to work together and (form) a joint vcnturc. 7. As soon as our business (expand) wc began to buy shares in other companies. 8. Several years ago these two companies formed a joint vcnturc but they (remain) separate legal entities. 9. The regulations (change) before wc took over this company. 10. When they (make a bid) for a computer company they wcrc ready to buy it at that price. I l . I couldn't get into the office bccausc I (leave) my keys at home. 12. Our manager was in a very good mood because we (win) a profitable contract. Ex.3. True or false? Correct where necessary. 1. We met many times and rcachcd an agreement at last. 2. When had you heard about the takeovcr? 3. We decided to replace our equipment becausc it became old. 4. Before he became bankrupt he sold most of his shops. 5. We did a lot of work with our clients before the board of directors introduced new regulations. 116 MODULE 1 BUSINESS AND BUSINESSES 6. The business had undergone major reorganization by the end of the year. 7. After we had introduced new technology our business had become more efficient and profitable. 8. Before he invested in this business he studied the financial statement carefully. 117 A. Basic English of Economics UTYGINA 9. It had been one of the most reliable companies in the service sector. 10. He developed his business plan better than we had expected. 11. We finished our experiment by that time. Ex.4. Translate into English: 1. IIpeAcrraBHHK d)iPMM B)Ke rliÅnucaB KOHTPaKT, KOJIM BOHH nocrraqaHHfl CUPOBHHH. 2. MM B)Ke BiÅnpaBHJIH 3BiT K0MnaHii, KOJIH BOHa 110MiTHJ1a nemci noMHJIKH. 3. Ilepc0HaJ1 K0MnaHii B)Ke 06paB HOBOro npe3HAewra, KOJIH BiH 4. 110 Toro, 51K MH 3'eAHaJIH Hami K0MnaHii, ueii 6i3Hec 6YB 36HTKOBHM. 5. Ao KiH1151 MHHynoro POKY BOHH B)Ke CTBOPHJIH meKiJ1bKa cniJ1bHHX ninnpH€Mc'1'B. 6. 7. Ao KiHIL51 BepecH51 uiHH 3POCJIH BÅBiqi. 8. BOHa B)Ke 3aBep111HJ1a nimroT0BKY AO Ll(opiHHoro 3BiTY, KOJIH MeHeÅ)Kep BHKJIHKaB •fi y CBiii 9. MH BNC p03noqaJIH p060TY Han HaL11HM cniJ1bHHM npoeKTOM, BiH 3ani3HHBc51 Ha KOH(bepeHUiK), TOMY 1110 He Bcmmr Ha nepmvli aBT06yc. KOJIH BiH 3aJIH111HB KOMnaHik0. 10. Moro 6i3Hec CTaB myxe 11PH6YTKOBHM, KOJIH BiH 3anpocHB HOBoro KOHCYJ1bTaHTa. 118 A. Basic English of Economics 11. Bqopa 51 3HaMUIOB ÅOKYMeHT, 12. Ili ABi K0MrraHii 06'€ÅHaJIHCfl TaK A0Bro LLIYKaB. I-ue AO Toro, AK BiH npHA6aB KOHTPOJ1bHHii narceT arcuiü. Speech and Discussion Ex.l. Discuss with your groupmates: if it is profitable for companies to diversify their business if it is better for a company to merge or to take over another company 119 MODULE 1 BUSINESS AND BUSINESSES Ex.2. Discuss with your groupmates the advantages and disadvantages of: a friendly takeover a hostile takeover a buyout Ex.3. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. l. Stop beating about the bush and tell me what you want. 2. Alison couldn't have stolen your watch. She was out all day. You are barking up the wrong tree. 3. That boy is quite impossible. From now on I wash my hands of him! 4. You have a head start over your competitors; your business has been established longer than theirs. 5. If you could see our electricity bill, it would make your hair curl. Ex.4. Comment on the following: «Selective morality is not morality.» (Thomas Sowell) 120 A. Basic English of Economics UTYGINÅ LESSON 6 Text: Organizational Structure Grammar: Past Perfect Continuous Terms to remember: be in charge of (v) hierarchy department report to (v) supervisory management inspire (v) assign (v) Research and Development evaluate the department Sales department performance (v) senior executive /manager top executive/manager implement (v) Board of KepyBaTM Directors Chairman of the Board customer day-to- iepapxi51 HH)1cqa JlaHKa yrrpaBJ1iHHA day employee Finance department Head of a company hold a position (v) location make a decision (v) Managing Director Marketing department personnel Personnel department Production HaÅHXaTH npH3HaqaTH OUiHIOBaTH AiMbHiCTb (npaUiBHHKa) BUKOHYBaTH rrpaBJ1iHHA, pama AHpeKTopiB ronoBa npaBniHHH 3aMOBHHK, KJ1ieHT, 110KyneL1b 110BC51KmeHHmVf CJIY)K60BeUb, cniBP06iTHHK, npauiBHMK Bimin KepiBHHK K0MnaHii 3aPiMarru nocamy 121 A. Basic English of Economics MiCUe3HaXOA)KeHHfl, P03TaUIYBaHH51 npHiiMaTH pimeHH51 reHepaJ1bHH1i AHpeKTOP BimiJ1 MapKeTHHry nepc0HaJ1, LLITaT Binnin KanpiB BHP06HHqHii BimiJ1 3BiTY'B',1TH•, niJU10PSIÅKOBYBaTHCS1 BinaiJ1 HayKOBHX JlOCJ1iJVKeHb Ta p03p060K Binnin 36YTY KepiBHHK BHIUOCO paHry, Menemtcep HajiBH11toro piBHS1 122 MODULE 1 BUSINESS AND BUSINESSES Organizational Structure In business organizational structure means the relationship between position and people who hold these positions. The structure of organizations varies greatly according to the nature of the business. There are several factors which influence this structure: the number of locations and employees the economic sector the type of a market in which they operate the type of customers the degree of management control required the complexity of the business activities Every company must decide on the best way to organize its management hierarchy. There exist three levels of management: top management, middle management and supervisory (Am first-line) management where typical job titles are: Supervisor, Team Leader, Section Chief. Top management set a direction for the organization and aim to inspire employees with their vision for the company's future. Middle management develop detailed plans and procedureS based on the firm's overall strategy. Supervisory managers are responsible for assigning nonmanagerial employees to specific jobs and evaluating their performance. They have to implement plans developed higher up the hierarchy. The company is run by a Board of Directors; each Director is in charge of a department. However, the Chairman of the Board, someone who wears many hats, is in overall control and may not be the head of any one department. The Board is responsible for policy decisions and strategy. The Managing Director (sometimes called 123 MODULE 1 BUSINESS AND BUSINESSES the Chief Executive Officer (CEO), or President in the USA) is the head of the company, who has overall responsibility for the running of the business. In the US, senior managers in charge of particular areas are often called vice-presidents (VPs). People at the head of an organization are often called senior executives or senior managers, top executives or top managers. 124 A. Basic English of Economics Most companies have Finance, Sales, Marketing, Production, Research and Development (R&D) and Personnel Departments. These are the most common departments, but some companies have others as well. Most departments have a Manager, who is in charge of its day-to-day running, and who reports to the Director; the Director is responsible for strategic planning and for making decisions. Various personnel in each department report to the Manager. Exercises in Word Study Ex.l. Form verbs from the following nouns: location, employee, decision, organization, operation, management, activity, director, executive, development. Ex.2. Give the English for: cTpyKTypa opraHi3auii, CJIY)K60Be11b, eKOHOMiMHHVf ceKTOP, Kli€HT, ynpaBniHcbKHVf KOHTPOJ1b, KepYBaTn K0MflaHieo, pana AMpeKTopiB, ronoBa npaBJ1iHHA, KepiBHHK K0MnaHii, BimiJ1 36YTY, BMp06Hnqmä BiAÅin, BimiJ1 KanpiB, cTpaTeriMHe maHYBaHHA, 11PHäMaTH PiU1eHHA, nepcoy-lan, niÅnopAAKOBYBaTHC% MeHeaxepy, 3aäMaTH nocaÅY, OUiH}OBaTH Aifl11bHiCTb, BUKOHYBaTH nnaHH, MeHeaxep cepeÅHb0i (HWA<HOI) naHKU. Ex.3. Match words from list A with words from list B that day-to-day have a similar vary customer meaning: 125 A. Basic English of Economics be in charge of head make a decision department personnel managing director wear many hats fulfil many functions chief executive officer decide staff division manager change client be in control of every day 126 MODULE 1 BUSINESS AND BUSINESSES Ex.4. Match the nouns in the left hand column with the verbs in the right hand column: employee appoint someone to employ board of directors hire pay personnel dismiss someone from train customer receive work on behalf of department be in charge of Ex.5. The words in the box frequently occur before «manager». depamnent manager production op 58/85 Find combinations that mean: l) a person in control of staff in one section of an organization; 2) a person in control of staff but under the authority of a manager; 3) a person in control of the manufacturing process; 4) a person in control of the design and quality of goods made by a company; 5) a person who is at the head of an organization; 6) a person responsible for the sales staff and their work; 7) a person responsible for recruiting and training employees and dealing with their problems. 8) a person responsible for developing detailed plans and procedures based on the firm's overall strategy; 9) a person responsible for assigning non-managerial employees to specific jobs and evaluating their performance. 127 A. LATYGINA Basic English of Economics Ex.6. Look at the words and phrases in the box. Match them with the correct definition from the list below: president board ofdire±rs OOOØ em#yee etother 1) the place where something is located; 2) a person who works for another person, business or government; 3) a person who buys something from a shop, pays for a service or orders something from a company; 4) a group of directors who are responsible for running a company and usually have legal responsibilities to it; 5) a company director who is responsible for the day-to-day running of a company; 6) the chief officer of a company who is responsible for deciding and carrying out company policy; 7) a person in charge of a department; 8) the people employed by an organization; the staff; 9) people at the head of an organization. 128 Ex.7. A department can be involved in a number of activities. The following diagram shows some very commonly used verbs to talk about these activities. Study the diagram, consult your dictionary and translate these verbs into Ukrainian. Make up sentences with them. arranges 129 MODULE 1 BUSINESS AND BUSINESSES Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian: I. She is ... of this company. 2. Our company treats its well with fast service and good products. is discussing the annual pay rise. 4. 5. 6. 7. 8. 9. 10. 11. 12. She is . . . the new project. She is . . . of the finance committee. My partner takes care of the . . . operations of the company. He ... a quick decision to buy the TV. Training courses are provided for all company She . . . directly to the company's president. New staff should report to the . is responsible for making policy decisions. Another title for the managing director is the . . . or the . . : in the USA. reports, personnel department, personnel, made, day-to-day, the head, in charge of, the Board of Directors (2), customers, an employee, CEO, president. Ex.9. Fill in the missing prepositions. Board of Directors A board . . . directors are persons elected . . . the shareholders to control a company and to look their interests. The board is responsible . . . the overall policy decisions . . . the company and 130 MODULE 1 BUSINESS AND BUSINESSES appointing the management team which runs the company . . . a dayto-day basis. The majority . . . the board will have management responsibilities . . . the company, but there might also be nonexecutive directors who do not have any responsibilities. These might be Well-known industrialists, financiers or politicians who will improve the reputation . . . a business. All directors will own shares . . . the business. (in (2), on, for (2), after, of (4), by). 131 UTYGINÅ Basic English A. Economics o/ Ex.10. Fill in the gaps by choosing from the words below: l . The employees responsible for carrying out general duties are a) clerks b) accountants c) financters 2. The employees who sell a cotnpany's products are the a) sales representatives b) athletes c) managing clitectors 3. The employees who are responsible Ii)r seeing that the finished goods are well made are the a) packers b) quality controllers c) econonusts 4. The workers who process data, under the control oc tnanagcrs and supervisors, are the computer a) hackers b) operators c) dancers 5. The person who greets a visitor and tells hitn or her how to get to the right otTtce is the a) manager b) president c) receptionist 6. The clerical workers who use typewriters or word processors and who produce letters and other docutnents, are a) secretaries b) editors c) teachers 7. The employees who check a company's financial affairs are the a) statisticians b) accountants 132 c) customers UTYGINÅ Basic English Economics 8. The person appointed by the board of directors to be responsible for the management team that runs a business on a day-to-day basis is the a) operator b) managing director c) seller Ex.ll. Match each activity (1-8) with a department (a-h). I ) checking quality a) Legal 2) selling products b) Purchasing 3) buying materials c) Sales 4) organizing training d) Accounts 5) delivering goods e) Production 6) keeping a record of payments t) Ilutnan Resoutves 7) researching the Inarket g) Marketing 8) advising on rules h) Transport 133 MODULE 1 BUSINESS AND BUSINESSES Ex.12. Study the following organizational chart which shows the different positions in a company: Look at the organizational chart and write the name of the position in the blank. 1. He is in charge of the company. Everyone reports to him. He makes all final decisions. He is the 2. All of the sales personnel in Europe report to him. The Manager of International Sales supervises him. He is the 3. Her supervisor is responsible for all purchases made by the company. She completes the forms for him to sign. She is the 4. She helps all new employees with their fonns for health insurance, pay checks and so on. She is the 134 MODULE 1 BUSINESS AND BUSINESSES 5. The Directors of Personnel and Purchasing departments report to him, and he reports to the Managing Director. He makes sure the company runs efficiently. He is the 135 UTYGINA Basic English of Economics Exercises in Comprehension Ex.l. Answer the following questions: l. What does the structure within which business can operate depend on? 2. What factors influence this structure? 3. How many levels of management do you know? 4. What are top managers responsible for? 5. do middle management develop? 6. What are the functions of supervisory management? •7. Who is the company run by? 8. »nlat is the Board of Directors responsible for? 9. is the head ofthe company? What is he/she responsible for? 10. Who supervises the Managing Director? 11. What departments do most companies have? 12. What is the Director responsible for? 13. Who reports to the Director? 14. Whom do personnel in each department report to? 15. Who elects the Board of Directors? Ex.2. What is the difference between: Chairman of the Board — Managing Director Board of Directors — Personnel department Top management — Supervisory management Ex.3. Sum up what the text says about the structure Of organizations. 136 UTYGINA Basic English of Economics Grammar Revision Past Perfect Continuous We use the Past Perfect Continuous • to talk about an action which had been in progress before another We often use it with for and since I had been visiting this company for several weeks before they solved m roblem. 137 MODULE BUSINESS AND BUSINESSES I Ex.l. Choose the correct variant. I. I had solved/had been solving this difficult problem for some time when he appeared. 2. By the time we got to the office they had negotiated/had been negotiating for 2 hours. 3. I-le had already written/had been writing lecture notes for some time when we rang him up. 4. They had looked/had been looking for some new information in the documents for two days before they found a mistake. 5. He had reported/had been reporting to the manager before he left the office. 6. He kept looking at her, wondering where he had been seeing/ had seen her. 7. He had smoked/had been smoking for 10 years before he gave it up. 8. The telephone had rung/had been ringing for 3 minutes before I answered it. 9. When I came the Board of Directors had been discussing/had discussed this contract for an hour. 10. We had been finishing/had finished the discussion by 5 0'clock. 11. He didn't sign the contract until he had been reading/had read every word. 12. When I left my last job, I worked/had been working there for 10 years. Ex.2. Complete these sentences using the correct form (Past Perfect Simple or Past Perfect Continuous) of the verbs in brackets. l. I (work) for the company for six years before I got a promotion. 2. He (live) in New York for 10 years when he decided to return to France. 138 3. 4. 5. 6. 7. MODULE BUSINESS AND BUSINESSES I (read) the report before I left the office. I (write) a letter to my partner when I heard this news. He (fix) his car all day before he left for London. The company (prepare) its annual report for a week when this event happened. By the 1990's they (build) their financial empire. 139 UTYGINA A. Basic English of Economics 8. Most of the customers (leave) by the time our managing director got there. 9. Ile had been listening to our conversation and I wondered how much he (hear). 10. We were tired as we (work) since early morning. l l . She (not receive) any information until it was too late to do something. 12. I (look for) a new business partner for a month before I found him. Ex.3. True or false? Correct where necessary. l . Everyone had been spending time packing boxes before the company moved into a new office. 2. We were waiting for you for 2 hours before your secretary called. 3. I failed to speak to him as he had just been returning from his business trip to Italy. 4. I hadn't finished the report by Monday although I was working at it since Wednesday. 5. When I telephoned my secretary she had gone out. 6. We had been finishing our experiment by the end of the year. 7. I had been studying the problem for a few days before I made a final decision. 8. How long were you doing business in Spain before you met my boss? 9. She was working in the Marketing department for 5 years before she became a good specialist. 10. He was working for this company for years before he could buy a house. 11. When the company went public, we were producing tourist equipment for 5 years. 140 UTYGINA Basic English of Economics 12. Our lawyer studied the agreement for a week before we signed it. Ex.4. Translate into English: 1. B0Ha p03cepJ1mnacq TOMY, 1110 qeKana Ha MeHe AY)Ke A0Bro. 2. MH BTOMHJIHCSI qepe3 're, 1110 061'OBOPIOBaJIH Hami d)iHaHCOBi 11J1aHH ÅeKiJ1bKa I'OÅHH. 3. B0Ha npaLU0Bana y BimiJ1i 36YTY piK, neplll Hi)K 0TPHMana niÅBH1-ueHHH. npaBJ1iHHH nporJ151ÅaB nourry B)1Ce niBr0ÅHHH, KOJIH 3aÅ3BOHUB erene4)0H. 4. rOJIOBa 141 MODULE BUSINESS AND I BUSINESSES 5. BOHa npaL110Bana B 6i6ni0Teui roJXHHaMH, AOKM He Hanucana AOflOBiÄb. 6. BiH AeHKHVi qac YBa)KHO AldBHBCSl Ha 3aMOBHUKa, neplll Hix niAiiTH. 7. BiH npaL1}0BaB Ha UbOMY ninnpu€McTBi 10 POKiB, nepLL1 Hix CTaB reHepaJ1bHHM mmpeKTopoM. 8. KepiBHHK K0MnaHii 2 TH)KHi 06MiPKOBYBaB yci Jlerrajli yronn, nepm Hix 9. IIPHMHRTU ocTaT0HHe pimeHH51. flepL11 Hi)K CTaTH KJ1i€HTOM uiei TypHCTHMH0i 4)iPMH, BiH A0Bro BH6mpaB. 10. BOHM AOBPO 36mpaJIH rpomi, nepu-l Hi)K 3aMOBUTH ui Me6ni. Speech and Discussion Ex.l. Make an organizational chart for a company you know about. Present the chart to your groupmates and tell what each person on your chart does. Ex.2. Talk to your groupmate: • which is the most interesting to work in: finance department, sales department, marketing department, research and development department, personnel department. Ex.3. Give your own order of importance of the following activities of a manager and give your reasons. 1) proper motivation of workers; 2) making a profit; 3) coordination of work; 4) fighting competition; 142 MODULE BUSINESS AND 5) adherence to the goals set by the organization; 6) creating agreeable working conditions; 7) setting the organizational principles. Ex.4. What do you think makes a good (bad) manager? Do you think you have the qualities of a good manager? Ex.5. In your opinion, are business leaders born or made? 143 UTYGINA A. Basic English of Economics Ex.6. Think about the following: «Bosses just take the credit for the work of lower — level employees. Who needs them?» Ex.7. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. Peter's success at college cut no ice with the selection committee. They were not impressed with academic attainments but wanted a man with practical experience. 2. We can kill two birds with one stone by combining our honeymoon with our business trip. 3. You can take my word for it, I saw it with my own eyes. 4. The secretary led her boss by the nose until she had spent all his money. 5. You will find it difficult to open a shop in the High Street. There is a lot of cutthroat competition in this town. Ex.8. Comment on the following: «Minds are like parachutes. They only åtnction when open.» (Anonymous) Ex.9. Read the Joke: The head of a company is having a party for his employees at his beautiful villa. He has a huge swimming pool, but it is filled with alligators. The boss says, believe that courage is the key to 144 UTYGINA Basic English of Economics success. So anyone who has the courage to swim through the pool will get anything he desires: my job, my money, my villa, anything!» Suddenly, there is a loud splash. The boss's assistant swims with great speed. She pulls herself out of the pool just before the alligators catch her. The boss runs to the young woman and says, «You are brave beyond measure! Anything I have is yours. Tell me what I can do for you.» The assistant says, «First, you can tell me who pushed me into the pool!» 145 MODULE BUSINESS AND 1 BUSINESSES TEST 1 (MODULE r) Choose the word or word combination to match the definition. 1. A person who works under you. a) leader b) supervisor c) subordinate 2. A private individual who runs a one-man business. a) supplier b) sole trader c) partner 3. A very large organization that owns companies in more than one country. a) association b) partnership c) multinational 4. The money gained in a business deal, esp. the difference between the amount earned and the amount spent. a) loan b) profit c) loss 5. To enter new types of business. a) to succeed b) to cooperate c) to diversify 6. The sale of goods in large amounts, and usually at lower prices, to stores and businesses. a) retail trade b) wholesale trade c) free trade 7. The sale of a business or service owned by the government to private owners. a) nationalization b) restriction c) privatization 8. A firm run by two or more partners. a) consortium b) sole proprietorship c) partnership 9. A company in which the owners are entirely liable for the debts of the company. a) unlimited liability company b) partnership 146 MODULE BUSINESS AND c) limited liability company 10. Money owed by one person or an organization to another. a) wealth b) debt c) profit I l. A market where stocks and shares are bought and sold under fixed rules. a) foreign exchange b) commodity exchange c) stock exchange 147 Basic English of Economics A. UTYGINÅ 12. A sum of money invested in a business. a) stake b) dividend c) interest 13. Combining two companies into one larger cotnpany€ a) bid b) witness c) merger 14. A business or part of business bought by another company. a) purchase b) takeover c) sell-off 15. The workers or employees of an organization. a) capital b) commodity c) stalT 16. A person who works for another person, business or government. a) employee b) colleague c) employer 17. A group of directors who are responsible for running a company and usually have legal responsibilities to it. a) senior executives b) managing directors c) board of directors 18. State-owned and-run organizations. a) insurance sector b) public sector c) retail sector 19. A limit on something. a) restriction b) reservation c) regulation 20. A person who owns shares in a company. a) creditor b) shareholder c) investor 148 MODULE PEOPLE AND ORGANIZATION Il LESSON 1 Text: Employment Grammar: Tense Revision. Present time. Terms to remember: employment 3aMHflTiCTb, p060Ta 3a HaiiMOM•, HanaHH51 P060TH BiÅ06pa)KYBaTH reflect (v) be self-employed (v) work freelance (v) businesspeople flexible employer entrepreneur fixed-term contract part-time worker permanent job temporary job administration npaLUOBaTH caMOCTiMHO', npaLUOBaTH He 3a HaMMOM npaL1k0BaTH He 3a HaiiMOM,• 6YTH BiJ1bHHM XYAO)KHHKOM AiJ10Bi JIYOÅH rHYHKHM HaMMaq, p060TOÅaBe11b Ilianpner„ßllb CTPOKOBHii KOHTPaKT P06iTHHK, npaL.uoe Her-IOBHHM p060HHä neHb nocTiiiHa p060Ta THMqaCOBa p060ta ynpaBJ1iHHA, KepYBaHHR (cnpaBaMu)•, aÅMiHicTpauiA, KepiBHHUTBO reject (v) BiÅXHJ1flTH Human resources (HR) nepc0Han, JHOÅCbKi pecypcn 149 MODULE PEOPLE AND ORGANIZATION BimiJ1 KanpiB Human Resources department recruitment staff appraisal OUiHKa p060TH nepc0HaJIY welfare couiaJ1bHe 3a6e3neqeHHq; Ha6ip (KanpiB); HanaHH51 P060TH A0110Mora 3 couianblloro 3a6e3neqeHH51 150 A. Basic English of Economics LATYGINA job rotation 3Mi11a p06iT; po gaBJLaHb job security rapaHTifr1 p06(YJ H, cera6iJ1bHiCTb P060TM, rapawrin gahwrroc-ri, ga6egrjcqef1Jr,1 p060T010 Employment Work plays a major part in most people's lives. People of all sorts work in business, and thc terms businessman and businesswoman reflect this, referring to a wide range of individuals, from the rich and famous to small company owners, from people in large organizations to those who work for themselves. Businessmen and women are referred to together as businesspeople. Successful businesspeople, especially heads of large organizations are callcd business leaders or, in journalistic terms, captains of industry. Many people choose to be self-employed (to have their own business) or to work freelance for several employers. Someone who does freelance work is not employed by an organization, but is paid for each piece of work that they do by the organization that they do it for. An entrepreneur is someone who starts their own company. 151 A. Basic English of Economics As the labour market becomes more flexible, many employers respond by increasing the number of fixed-term contracts and parttime workers. We can also speak about permanent or temporary job. In large organizations, administration of people is done by the personnel department, although this expression is now sometimes rejected. Companies talk instead about their human resources or I-IR. Increasingly, the modern company sees its human capital its employees — as one of the most important assets, and most large companies today have an HR strategy. 152 MODULE 11 PEOPLE AND ORGANIZATION The Human Resources department of a company has the important function of matching people with jobs. It is responsible for planning, recruitment of new people, staff training and development, staff appraisal, welfare, pensions administration and industrial relations. It works to ensure that the right people are available to meet the company's needs. Some companies move their workers regularly between teams or departments. This is called job rotation. Job security is knowing or feeling that a job will last for a long time. Exercises in Word Study Ex.l. Form nouns from the following verbs: reflect, own, refer, recruit, train, appraise, administer, ensure, rotate, secure, express, develop. Ex.2. Give the English for: 3aMHflTiCTb, AiJ10Ba )KiHKa, BJ1aCHHK K0MnaHii, Bimin KmpiB, BiÅ110BiaaTH 3a nnaHYBaHHf1, Ha6ip HOBHX KaÅPiB, niAroT0BKa KaÅPiB, COUiaJ1bHe 3a6e3neqeHHfl, 3aAOBOJ1bHATH 110Tpe6P1 K0MnaHii, 6pnrma, 3MiHa p06iT, rapaHTi51 P060TH, CTPOKOBHii KOHTPaKT, p060TOÅaBeub, ouiHKa P060TH, npaLIK)Barrn He ga HaiMOM, niÅIVH€Meub, nocTiVIHa p060Ta, TUMqaCOBa p060Ta. Ex.3. Match words from list A with words from list B that staff appraisal last have a similar meaning: fixed-term contract continue business person personnel department be in charge of performance appraisal wealthy available rich famous businessman human resources department be responsible for staff ensure 153 MODULE 11 PEOPLE AND ORGANIZATION renowned make sure terminal contract personnel obtainable 154 MODULE 11 PEOPLE AND ORGANIZATION LATYGINA Ex.4. Find suitable opposites to the following words and phrases: employment, rich, full-time worker, employee, famous, regularly. Ex.5. Match the nouns in the left-hand column with the verbs in the right-hand column. jobrecruit receive pensionsign conduct fixedcontractdraw up complete personneltrain give term up staff appraisaldo retire from recruitment of new peoplepay employ Ex.6. Study the following blanks with suitable diagram and fill in the words from the diagram. 155 A. Basic English of Economics 1. Why don't you go out and look ... work instead of sitting around all day doing nothing? 2. Mary is working ... a software developer for Microsoft. 3. My dad worked ... a hotel all his life. 4. His brother works ... the local council. 5. I'll talk to you about the problem when you come home ... work. 6. Jane has been out ... work ever since they closed the shop. 7. Her boss gave her time ... work to go and see the doctor. 8. I will continue to work ... as a consultant after the age of 60. 9. I work in a public library in the afternoons from two until six. I have ... work. 10. The work was well paid but . Ex.7. The following sentences could be used to describe jobs. Find sentences: 156 MODULE 11 PEOPLE AND ORGANIZATION (a) that describe a positive aspect to a job; (b) that describe a negative aspect to a job; (c) that could be either positive or negative. It's a temporary job. It's a permanent job. It's well-paid. It's badly-paid. You work full-time. + You work part-time. + It's dull. + It's tiring. It's demanding. It's stressful. It's stimulating. You have to clock in and clock out every day. + You have to work in shifts. There are a lot of opportunities. • There's a lot ofjob rotation. There's a lot ofjob satisfaction. You need to be talented. You need special training and qualifications. 157 A. UTYGINÅ Basic English of Economics Ex.8. The words in the box frequently occur after analysis evaluation tiOO secun'%otø desMp&n hopper satisfaction Find combinations that mean: 1) an outline of the main aims and tasks of the work done by a particular employee; 2) examining how much money a job is worth and how much the person doing it should be paid; 3) the name of a person's job; 4) a situation where a job is likely to be permanent; 5) dividing a full-time job for one person between two or more part-time employees; 6) it is carried out to examine a particular job in detail; 7) a kind of notice put by an organization in a newspaper, company bulletin or on the Internet; 8) the feeling of achievement and enjoyment a worker gets from ajob; 9) a person who often changes his jobs; 10)a system which allows a team of workers to move around a production line, dealing with all parts of a product until it is finished. Ex.9. Look at the words and phrases in the box. Match them with the correct definition from the list below: 158 A. UTYGINÅ Basic English of Economics self-employed pensionunemp/oyed human rnræs æavåænt employer teem appraisal employment 159 staf MODULE 11 PEOPLE AND ORGANIZATION 1) a person or company that provides job; 2) the people who work in an organization; 3) having a paid job; 4) without a job; 5) an assessment of the quality of the employee's work; 6) an agreement to employ someone for a limited period only; 7) two or more people working together; 8) the process of interviewing and choosing people to do a job; 9) personnel, employees; 10) a regular payment made by the state to a person who has retired from a job; 11) someone who works for her/himself and is not employed by a company; 12) a person who starts or runs a business activity, especially one that involves financial risk. Ex.10. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. He is out of work and looking for . 2. He has got a highly-paid . . . in the oil business. 3. There are several for administrative staffin today's newspaper. 4. Although the pay is low, there is a high level of . 5. We cannot afford to lose skilled 6. My . . . is coming up next week. I hope they decide to pay me more money. 7. The union is demanding greater 8. My actual is departmental manager. 9. She is and always open to new ideas. 160 MODULE 11 PEOPLE AND ORGANIZATION 10. She is responsible for the . . . of new staff. 11. After working for the company for 20 years, he was offered a good 12. She was a successful . . with her own tourist agency. 13. She used to work for a design agency, but now she is 14. He was . . . who built a company around a new type of beauty product. 161 A. UTYGINÅ Basic English of Economics Businesswoman, pension, recruitment, flexible, job title, job security, job evaluation, personnel, job satisfaction, job advertisements, job, an entrepreneur, employment, selfemployed. Ex.ll. Fill in the missing prepositions. 1. Job rotation has enabled our staff to broaden their range . . . skills. 2. The fastest growing sector the labour market is the employment of women. 3. Could you tell me the kind . . . work you are looking 4. He has a good job . . . computers. 5. We are carrying . .. four job evaluations this week. a result new technology more workers felt there was a lack . . . job satisfaction. 7. She finds it difficult to live . . . her state pension. 8. We must reduce the amount time and money spent administration. 9. We get about 30% . . . our staff . . . recruitment agencies. 10. He lost his job and is now welfare. (on (3), as, out, for, from, of (6), in (3), about) Ex.12. These words are often confused: personal-personnel 162 A. UTYGINÅ Basic English of Economics Personal means «belonging to someone», it is also used to refer to an individual 's ideas or preferences. Personnel means the staffemployed. Complete these sentences using the correct form Of one of the words above. Make your own sentences to show that you understand the difference in their meaning. 1. We haven't got the . . . to cope with the office work efficiently 2. All our have to wear a uniform for security reasons. 3. An interviewer shouldn't ask... questions during an intervieW• 4. You can leave your . . . belongings here. 163 MODULE 11 PEOPLE AND ORGANIZATION 5. l, am opposed to the plan, but my company is going ahead with it. 6. He receives . . . telephone calls at the office. 7. The company had to fire half of its . . . to save money. 8. Choosing a new car is a matter of . . . preference. 9. I don't know the man . but he used to work for my father. 10. The ... department deals with the staff, keeps records and deals with any . . . problems. I l. Most writers use . experience as the basis for their novels. 12. In some companies the presence of . . . is controlled by time clocks. 13. The company aims to attract and retain quality Ex.13. Build your vocabulary. Learn phrasal verbs for business! to report to somebody — if you report to somebody in a company or an organization, they are responsible for your work and tell you what to do. A person who reports to you is called a report. Read these sentences carefully and translate them into Ukrainian. l. She reports to the marketing director. 2. Ms. James runs the marketing department and all publicity officers report to her. 3. Five people reported directly to the area manager. 4. He joins the company as a training assistant, reporting to John Brown. 5. Jack Daniels has just joined as IT assistant, reporting to Joan Carr. 6. How many reports do you have? 164 MODULE 11 PEOPLE AND ORGANIZATION 7. | like to have weekly meetings with my direct reports. 8. Various personnel in each department report to the Manager. 9. She reports directly to the company's president. 165 A. UTYGINÅ Basic English of Economics Exercises in Comprehension Ex.l. Answer the following questions: l . What do we call people who work in business? 2. How do employers respond to the flexibility of the labour market? 3. What department is administration of people done by? 4. What is the Human Resources department of a company responsible for? 5. What is job rotation? 6. What is job security? 7. When a person works freelance, does he/she work for him/ herself? 8. What is an entrepreneur? Do you know any famous entrepreneurs? Would you like to be one? Why/Why not? 9. Is self — employment common in Ukraine? Does the government encourage it? 10. Would you prefer a job for life or a more flexible career? Ex.2. Sum up what the text says about: businesspeople + Human Resources department job rotation job security Grammar Revision Present time Present Sim le Present Continuous Ex.l. Choose the correct variant. l . We are not working/we don't work on Saturdays. 2. I am working/work in London this month. A. UTYGINÅ Basic English of Economics 3. Does he worWis he working on any special project at the moment? 4. How often are you visiting/do you visit stock exchange? 5. Our company sometimes employs/is employing foreign consultants. 6. Do you like/are you liking your team? 94 MODULE 11 PEOPLE AND ORGANIZATION 7. Which hotel are you staying/do you stay in whenever you come to Birmingham? 8. What sort of work does he do/is he doing? He works for MacDonald's. 9. Cars are becoming/become more and more expensive. 10. This badge shows/is showing your name, the company name and your job title. I l. He is having/has a highly paid job in the oil business. 12. Our phone doesn't work/isn't working at the moment. 13. He likes/is liking his job. 14. At the moment we discuss/are discussing a specific current project. Ex.2. Complete the sentences by putting the verb in brackets into the correct tense. 1. He some money at the moment until he starts university. (earn) 2. The shop normally open this late, but we are working different hours up to Christmas. (stay/not) 3. The man who makes no mistakes usuallyanything. (make/not) 4. The UK more popular as a location for international business . (become) 5. The plane from New York the airport. (circle) 6. 1 about why he said such things. (think) 7. The currency rates always so I advise you to wait until the value of the Euro goes up. (fluctuate) 8. Why he at this blank sheet of paper? (stare) 168 MODULE 11 PEOPLE AND ORGANIZATION 9. 1 10. 1 that we should do it ourselves. (agree) in Kyiv at the moment but I am afraid I will have to leave soon. (live) 11. It him $50 to buy food. (cost) 12. | always the same point of view with my boss. (share) 13. All I need from you is good advice. I you to help me financially. (expect/not) 14. Our company several subsidiaries in Europe and another one in London. (have, set up). 169 UTYGINA A. Basic English of Economics Speech and Discussion Ex.l. In life of any person there is a moment when he must take a very important decision - to find a job which will bring satisfaction and money simultaneously. And what is an ideal job for you? Choose the answers and give your reasons: An idealjob for me is ajob that suits my personality that gives challenge and opportunity + that gives independence well-paid risky that encourages thinking and development + calm and steady which is connected with travelling + prestigious + part-time • without long business trips Ex.2. Explain why work plays a major part in most people's lives and they stay on the job. What considerations appear to be more important than money? Ex.3. Can you think of any jobs that you would particularly hate to do? Why? Ex.4. If I were an entrepreneur with a lot of money, I'd create a start-up company making/supplying/ offering UTYGINA Basic English of Economics Ex.5. Think about the following: «One day I want to be a freelancer working for myself— it'll be much more rewarding than being the CEO of a large corporation.» Ex.6. Prove the necessity and the importance of the Human Resources department for a company. 96 MODULE 11 PEOPLE AND ORGANIZATION Ex.7. Would you take a job you didn't like in order to get experience you need? Why? What would be your ideal job? Ex.8. Some people believe that you should work hard today to prepare for the future, while others believe in the philosophy that «tomorrow never comes», so you should enjoy life to the fullest today. Discuss the advantages of each of these philosophies. Then indicate which one you believe in and why. Ex.9. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them: 1. The boss gave us the green light to go ahead with the project. 2. It's no good complaining to the post office about the telephone engineer. They will only white-wash him. 3. I got some black looks from the shopkeeper when I cancelled my order. 4. Have you seen a ghost? Your face is as white as a sheet. 5. When he lost his temper, he showed himself in his true colors. Ex.10. Comment on the following: <<A man who wants to do something will find a way; a man who doesn't will find an excuse.» (Stephen Dolley) 172 MODULE 11 PEOPLE AND ORGANIZATION Ex.ll. Read the joke: Boss to employee: «Smith, it looks like you've been missing a lot of work lately.» Smith: I wouldn't exactly say I've been missing it, boss.» 173 UTYGINA A. Basic English of Economics LESSON 2 Text: Human Resources: the people Grammar: Tense Revision. Past time Terms to remember: asset recruit (v) skills job title define (v) personal assistant authority executive (exec) supervisor aKTHB I-laVn,taTH Ha p060TY HaBHt11CH Ha3Ba nocanm BH3Haqarrn OC06UCTHV1 r10MiqHHK KepiBHHUTBO, Bnama•, 110BHOBaxeHH* KepiBHHK, aÅMiHicTpaTop, cnY)K60BeL1b•, BHKOHaBeUb iHcneKTop; KepiBHHK nepc0HaJIY (Ha nimrrpneMcTBi); KOHTPOJ1ep•, KepiBHHK HH)KHOi naHKH workforce p060qa cuna; Kampu, 111TaTHi npauiBHHKH on the payroll payroll monthly-paid staff y urraTH0MY cycnazü (IliAnpvr€McTBa) nnaTi)KHa BiÅOMiCTb nepc0Han, 0TpMMye weekly-paid staff 3ap06iTHY nnaTY 11-(0MiCflHH0 nepc0HaJ1, 51KuVi 0Tpmye 3ap06iTHY nnaTY UlOTH)KHeBO hourly-paid staff nepcoHan, 51KHii 0TPHMye 3ap06iTHY nnaTY norOJIHHHO UTYGINA Basic English of Economics white-collar worker CJIY)K60BeUb', 6iJIHii KOMipeUb (npauiBHHK, 3aiH51THii iHTeneKTyaJ1bH010 npaueyo) manual worker blue-collar worker P06iTHHK (l)i3HCIH0i npaui p06iTHHK•, 6naKHTHHä KOMipeUb (npaUiBHHK, 3aVIHflTH1i (l)i3HLIH010 npauero) colleague/co-worker rconera, cniBp06iTHHK 98 Basic English of Economics ORGANIZATION Human Resources: the people For many companies, their people are their main asset. How they recruit, train, develop and manage them can be key to the ongoing success of the company. «lluman Resources» means people, plus the skills and experience they bring to an organization. Job titles such as «Accounts Manager» or «Personal Assistant» define what people do. An employer is a person or company that provides job. Boss is an informal word meaning «someone in authority», for example an employer or owner of a company, or simply someone in a superior position. The person who runs a specific part of an organization is called a manager. An executive or, informally, an exec is usually a manager at quite a high level. People at the head of an organization, as it was already mentioned, are senior executives, top executives or top managers. Someone who is in charge of making sure a job is well done e.g. on the factory floor, or in retailing, is sometimes called a supervisor. People working for a company are referred to as its workforce, employees, staff or personnel and are on its payroll. Payroll is the list of all the people employed by a company, and the amount of money paid to each of them. The payroll is usually divided into monthly-paid staff, weekly-paid staff and hourly-paid staff. Professionals or people who perform various office jobs are White-collar workers, while manual workers in factories, on building sites, etc. are called blue-collar workers. Someone who MODULE 11 PEOPLE AND works with you in your job is a colleague (sometimes called a coworker). A. UTYGINA Exercises in Word Study Ex.l. Form verbs from the following nouns: employer, provider, runner, manager, executive, supervisor, assistant, authority, owner. Ex.2. Give the English for: JliOACbKi pecypcn•, HaBHMKU Ta ÅOCBin; p060TOÅaBeL(b,i KepiBHHK; CJIY)K60BeUb (2); nnaTi)KHa BiAOMiCTb; nepcoHan, 0TpHMY€ 3ap06iTHY nnaTY LUOMicqqHo/LUOTH)KHeBO/norOÅHHHO', P06iTHHK', Konera; KepiBHHUTBO, HaiMaT1d Ha p060TY. Ex.3. Match words from list A with words from list B that have a similar meaning: specific give manual provide workforce colleague define authority owner co-worker definite physical possessor personnel specify power Ex.4. Find suitable opposites to the following words and phrases: employee, blue-collar worker, general, inferior, junior, formal. Ex.5. Put each of the words under the correct heading. 177 Basic English of Economics I) employer 2) employee 3) staff 4) workforce 5) freelancer 6) personnel 7) blue-collar worker 8) white-collar worker 9) human resources 10) executive I l) entrepreneur Individual term Collective term IOO MODULE 11 PEOPLE AND ORGANIZATION Ex.6. Match the nouns in the left hand column with the adjectives in the right hand column. legal payrollofficial monthly authorityweekly senior permanent executivetemporary staffchief Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below: l) a person who works for another person, business or government; 2) a person who is employed to control, organize and direct part or all of a business or organization; 3) (infomal) a person who is responsible for the work of a company, a department or at least one other person; 4) a person with authority who watches others work to make sure a job is done properly; 5) a list of all the people employed by a company, and the amount of money paid to each of them; 6) the (official) power to give orders, make decisions, etc.; 7) a person that you work with in a profession or business; 8) an employee who does unskilled work, usually in a factory; 9) a person who works in an office; 179 MODULE 11 PEOPLE AND ORGANIZATION 10) all the employees in an office or factory; I l) a manager in a company who has the power to spend money, hire and fire employees. 180 Basic English of Economics A. UTYGINÅ Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. l . The new salary structure only affects . 2. Health and safety regulations state that all . . . must wear a uniform. 3. Many of his . . . are more qualified than he is. 4. The . . . has been reduced by half in the last five years. 5. If you have any problems please talk to your 6. She has been on the . . . for nearly 20 years. 7. I have no . . . to change decisions taken by management. 8. She has excellent advertising . 9. She is an with a bank. 10.The company has over 1000 people on its . 1 1. The company employs the largest in the country — 30,000 workers. authority, executive, skills, payroll (2), supervisor, workforce (2), colleagues, blue-collar workers, white-collar workers. Ex.9. Fill in the missing prepositions. I. The company's owner granted each manager authority to spend up S 10,000 . . . travel. 2. We hired him and put him . . . the payroll. 3. The workforce . . . this area is well-educated. 4. My colleagues . . . the office agree . . . this proposal. Basic English of Economics 5. 6. 7. 8. 9. Most blue-collar workers . . . the USA do not belong . . . unions. He got a white-collar job . . . a computer programmer. She is the boss . the publishing company. She has years . . . experience . . . marketing Large corporations try to develop their human resources . . . giving educational programs. 10. She is senior . . . the others . . . the company because she has worked here the longest. (to (4), on (2), in (5), as, at, of, by) 102 MODULE 11 PEOPLE AND ORGANIZATION Ex.10. These words are often confused: employer employer employee — a person, company or organization that pays someone to workfor them employee — someone who works for a person, business, or government Complete these sentences using the correct form of one of the words above. Make your own sentences to show that you understand the difference in their meaning. 1. The company has 1200 2. 3. 4. 5. 6. She asked her . for a pay rise. The steel works used to be the largest . in the town. She is an . . . of this company. My . . . is United Chemical. All the company's are encouraged to take part in training courses. 7. Philips is an equal opportunities . 8. I'll have a word with my . . . about leaving early this afternoon. 9. We cannot afford to lose skilled 10. There are plenty of seasonal ... in the tourists industry. 11. Their ... worked a ten-hour day. 12. Bill's . . . offered to pay for the course. 13. The company recruits some 3,000 . . . every month. Exercises in Comprehension Ex.l. Answer the following questions: 1. What does «Human Resources» mean? 2. What is an employer? 3. What is an executive? 183 MODULE 11 PEOPLE AND ORGANIZATION 4. Who is at the head of an organization? 5. Whom do we call «boss»? 184 A. Basic English of Economics LATYGINA 6. What is workforce? 7. Where do white-collar workers work? 8. What do blue-collar workers do? 9. What is a supervisor in charge of? 10. What is a payroll? I I. What is a payroll usually divided into? 12. What do managers usually run? Ex.2. Explain the difference between white-collar and blue-collar workers. Ex.3. Sum up what the text says about: Iluman Resources Employers and employees Executives Payroll Grammar Revision Past time (Past Simple. Past Continuous. Past Perfect Sim le Past Perfect Continuous Ex.l. Choose the correct variant: 1. He decided to go to the office immediately when he remembered hethe door. a) didn't lock b) had not locked c) have not locked 2. He has tested four new machines since he a) joined b) had joined c) has joined 185 the company. A. Basic English of Economics 3. When we installed the new equipment, it obsolete. a) became b) had become c) has become 4. While we were seeking a new solution, they to change our plans. a) had done b) were doing c) did 186 already everything MODULE 11 PEOPLE AND ORGANIZATION 5. When she took her driving test, she about 10 driving lessons. a) had had b) had c) was having 6. The hotel manager called the police when he discovered that a guestwithout paying his bill. a) left 7. He b) had left c) leaves in the laboratory when you rang. a) worked b) was working c) had worked 8. Phil to someone on the phone as we walked in. a) talked b) was talking c) had talked the report since early morning when suddenly he came. a) was reading b) had been reading c) read 10. We the main office before we moved into it. a) were reconstructing b) reconstructed c) had reconstructed I l. She alwaysformal clothes to work. a) was wearing b) wore c) had been wearing 12. He for 10 years at his telephone business, before he decided it was time for a change. a) worked b) was working c) had been working Ex.2. Compete the sentences by putting the verb in brackets into the correct tense. in the USA for two years when he decided to buy a house. (live) 2. The telephone when I was discussing this plan with my boss. (ring) 187 MODULE 11 PEOPLE AND ORGANIZATION for their company from 1996 to 1998. (work) 3. 1 4. I hardly the office when it started to rain. (leave) 5. 1 to London several times before 2000. (go) 6. we the answer to that problem yet when he came. (find/not) 7. I haven't seen him since he working for our company. (stop) 8. They so loudly that I could not hear his words. (talk) 188 MODULE 11 PEOPLE AND ORGANIZATION 9. As the equipment we decided to replace it. (get old) 10. Wea lot of work with British suppliers when he bought the company. (do) 11. After she had spoken to the manager, she the report. (write) 12. The conference was very interesting and it was obvious that all the speakerstheir material very thoroughly. (prepare) Speech and Discussion Ex.l. Discuss with your groupmates: what role human resources play in the work of a company; whose work is the most important in a company. Ex.2. What qualities in your opinion are the most important for the employer? Ex.3. Read these two quotes about a companys responsibilities. Which one is closer to your opinion? l . In business, profits are more important than people. 2. A company must look after its clients first, its workers second, and its shareholders last. Ex.4. Read the following passage. If you were an executive would you act like a boss or a leader? Why? Leadership One of the world's largest department stores in London was built up by H.Gordon Selfridge. He achieved success by being a 189 A. UTYGINA Basic English of Economics leader not a boss, here is his own comparison of the two types of executives: The boss drives his men; the leader coaches them. The boss depends upon authority; the leader on good-will The boss inspires fear; the leader inspires enthusiasm. The boss says «I»; the leader, «we». The boss fixes the blame for the break-down; the leader fixes the breakdown. The boss says «Go»; the leader says «Let's go». Ex.5. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. l. Providing services is the bread and butter of our business. 2. He was green with envy when I won the first prize in the competition. 3. We need $ 10, 000 to clear our debts. I'm afraid the $ 5, 000 Ted has offered us is only a drop in the bucket. 4. I am not worried about the consequences. I have a friend at court. 5. We have a gentleman's agreement. When you are dealing with Malcolm, that is as good as a signed contract. Ex.6. Comment on the following: «A man who builds his own pedestal had better use strong cement.» (Anna Quindlen) 190 A. UTYGINA Basic English of Economics LESSON 3 Text: Recruitment Procedure Grammar: Future time (uses of shall/will/going to/present continuous/present simple to talk about the future) Terms to remember recruit [hire hire (v) BrE) resume (AmE) covering letter applicant advertise (v) HaiHRTHM1, npHüHRTHji Ha p060TY vacancy employment/ (P06iTHHKiB) recruitment agency HajiMaTH peKnaMYBaTH BaKaHCiq areHTCTBO jobseeker headhunter 3 A060py KaapiB search (v) (v) promise hello persuade golden financial enticement post apply for (v) n}0AHHa, 111Y'Ka€ p060TY cneuianicr, nia6Hpa€ Ha p060TY KepiBHHKiB BHLUOro paHry UI)'KaTH nepeK0HYBaTH 06iURHKa 30110Te 11PHBiTaHHA; Be.1HKa CYMa rpomen HH iHL11a (bopMa 4)iHaHCOBoro 3aoxoqeHHfl, AK-y K0MnaHiA nponoHY€ KepiBHHKaM BHCOKOi *KHX 3anpowye Ha p060TY (i)iHaHCOBe 3aoxoqeHHR application form job nocaaa 3BePTaTHCA 3 npoxaHHRM, description noaaBaTH 3MBY aHKeTa, 3ana nocaA0Bi 060B'*3KH BHMorH', complete the form (v) nocaA0Ba iHCTPYKuiH curriculum vitae (CV, 191 A. UTYGINA Basic English of Economics 3anOBHHTH aHK-ery pe3}0Me pe310Me cy11POBiAHHii nHCT nonaBe11b 3aflBH, npoxaq; KaHAHJ1aT, npereruetrr•, 3a*BHHK 192 MODULE 11 PEOPLE AND ORGANIZATION Recruitment Procedure Personnel departments are usually involved in finding new staff and recruiting (hiring, AmE) them. Recruitment is the process of employing new people. Someone who has been recruited is a recruit or in American English, a hire. They join the company. This process will vary from one organization to another. When a company needs to recruit or employ new staff, it may advertise the vacancy in newspapers, or may contact an employment (recruitment) agency, a private company that matches jobseekers with jobs. Companies looking for senior staff may approach people working for another company, a practice known as headhunting. Headhunters are specialist consultants who search for high-level executives and try to persuade them to leave their current job in order to go to work in another company. Executives may be persuaded to move company by the promise of a golden hello: a large sum of money or some other financial enticement offered by the company they move to. If you are a jobseeker (a person who is looking for a job) and you are interested in a particular post, you may decide to apply for the job. The first step is to get an application form and a job description from the company. The next step is to complete the form and return it with your curriculum vitae (CV, BrE) or resume (AmE), which is a summary of your work history, education and skills. You should also send a covering letter, supporting your CV. It will explain why you want the job and why you are the right person for it. By doing this you have become an applicant. The company's Human Resources department will select the most suitable applicants and invite them to attend an interview. 193 MODULE 11 PEOPLE AND ORGANIZATION Notes: In British English, you hire a person for a job that will last only a short time, but you employ them for a permanent job. In American English, you always hire people whether it is for a short or a long period of time. 194 A. UTYGINA Basic English of Economics Exercises in Word Study Ex.l. Form nouns from the following verbs: involve, employ, vary, identi$', apply, advertise, persuade, move, decide, describe. Ex.2. Give the English for: Bimain KampiB•, I-laiiMaTH Ha p060Ty; peKJ1aMYBarrn; BarcaHciq•, areHTcTB0 3 A060py KmpiB•, JlK)ÅHHa, mca u.1YKae p060Ty; nepeK0HYBaTH 3aJIHUIHTH p060Ty; 06i11RHKa d)iHaHCOBoro 3aoxoqeHHff, 3Beprrarrncq 3 npoxaHHRM npo p060Ty; 3a110BHHTH aHKeTy; pe3K)Me; cynp0BiAHHii JIHCT; npeTeHaeHT, HaiiHRTHä Ha p060TY. Ex.3. Match words from list A with words from list B that have a similar meaning: leave recruit position give back fill in resolve convince look for necessity change select give up vary need search persuade decide complete return post Ex.4. Find suitable opposites to the following words and phrases: 195 A. UTYGINA Basic English of Economics to preserve, general, last, state, low level, to stay. 196 MODULE 11 PEOPLE AND ORGANIZATION Ex.5. Match the nouns in the left hand column with the verbs in the right hand column. application formcompile complete curriculum vitaesubmit approve job descriptionsend off vacancycontact fill employment agencyhave change use Ex.6. Look at the words Match them with the list below: and phrases in the box. correct definition from the l) an account of the main aims and tasks of the work done by a particular employee; 2) an organization that provides information about available jobs and finds employees for companies; 3) a job or position; 4) a person who is looking for a job; 5) a specialist consultant who searches for high-level executives; 6) a large sum of money or some other financial enticement; 7) a person who asks for a job , usually by answering an advertisement and attending an interview; 8) a letter sent with a document or goods explaining the contents; 9) an account of a person's qualifications, interests and work experience, usually sent with an application; 10) a post to be filled by a new employee; 197 MODULE 11 PEOPLE AND ORGANIZATION I l) the process of attracting qualified job applicants; 12) a piece of paper on which you must answer questions about yourself when you apply for a job 198 MODULE 11 PEOPLE AND ORGANIZATION Ex.7. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. l . In the last four months he has 2. 3. 4. 5. six jobs. Please send a full CV with a . . . stating your current salary. Twenty . have been invited for interviews. I've contacted several .. without any result. She rejected approaches from several . . . but decided to stay in her present position as Head of Sales. 6. Several employment agencies have set up a telephone advice line for 7. She was promoted when a . . . came up in their London office. 8. We received hundreds of . . . for only 5 positions. 9. All job applicants are required to submit a 10. She made a . . . to repay the loan in a week. 11. Some organizations employ outside agencies to . . . staff for them, especially for managerial jobs. Promise, curriculum vitae, applications, vacancy, jobseekers, headhunters, employment agencies, applicants, covering letter, applied for, recruit. Ex.8. Fill in the missing prepositions: I . We had over 200 applicants . . . the sales job. 2. 3. 4. 5. 6. 7. There were lots applications . the manager's job. He has already filled . . . an application form . . . this job. Please include a covering letter . . . your job application. We'll have to advertise . . . a new secretary. We have a vacancy . . . a new sales manager. A new post was created . . . the advertising department. 199 A. UTYGINA Basic English of Economics 8. Recruitment is the process . employing new people. 9. Please send your application, including a CV, . . . the address below. 10. The new chief . . . IBM picked . . . $ 5 million «golden hello». (up, to, for (5), of (3), in (2), with) Ex.9. In the following table there are seven jumbled recruitment tips. Try to match the correct halves from columns A and B. Don't hire until you Make sure you have If several applicants are equally ood Remember that when you talk Try to say nothing Ask o en-ended uestions that Ask an applicant to take the one you would like to work for. you are getting no information. and see what happens. start with How?, When? , Who? etc. are quite sure you need someone. demonstrate his or her skills. enough time for the interview. Ex.10. Build your vocabulary. Learn phrasal verbs for business! to take somebody on — to employ somebody to recruit somebody to hire somebody (AE) 200 MODULE 11 PEOPLE AND ORGANIZATION Read these sentences carefully and translate them into Ukrainian. 1. The economy is improving and many firms are taking on new staff. 2. They are taking two more people on to help with the orders. 3. It can be difficult to persuade companies to take you on once you are over 50. 4. I was taken on as a management trainee. 201 A. UTYGINA Basic English of Economics 5. He took on an assistant because he had too much work. 6. The company is taking on extra staff to cope with increased demand. 7. We would not have taken him on if we had known he was not qualified. 8. Since August they have taken on 40 new staff. 9. The company usually takes on quite a lot of students during the summer. 10. After a three month trial period, she was taken on as an area manager. Exercises in Comprehension Ex.l. Answer the following questions: 1. What are personnel departments involved in? 2. What does a company do when it identifies a need for new staff? 3. When may headhunters be engaged? 4. What are headhunters' duties? 5. How may executives be persuaded to move company? 6. What should a jobseeker do if he or she is interested in a particular post? 7. What is a curriculum vitae? 8. What other document should be sent together with a curriculum vitae? 9. How important do you think a CV or resume is to employers? 202 A. UTYGINA Basic English of Economics Ex.2. Sum up what the text says about: recruitment jobseekers jobhunters golden hello applicants 203 MODULE 11 PEOPLE AND ORGANIZATION Ex.3. Read the following job advertisements. What kind of jobs do they offer? What skills are essential to the jobs? What are the duties? 204 MODULE 11 PEOPLE AND ORGANIZATION Western bank established in Kiev is looking for: INTERNAL AUDITOR Requirements: • Minimum 2 year experience in Bank's internal auditing • Excellent proven organizational, communication and leadership • Fluent oral and written English • Proven knowledge of TAX and NBU regulations Responsibilities: • Execution of all auditing activities in accordance with guidelines • Examination in form and in fact of all Bank's transactions in all business units • Preparation of recommendations in the course ofaudit performed For confidential consideration, please fax CV to Human Resources Department, fax 2303391 Our Client is a great Company to work for and there's simply nowhere else like it to built your career Excellent Career Opportunity for talented, internationally minded people to develop in the Brand Marketing field. BRAND EXECUTIVE Working for our client means being part of a dynamic, exciting and challenging business. THE PERSON: You will probably be aged between 22-26, have a relevant University degree, fluent English and excellent PC skills. I + years Of working experience in an international environment on a junior position within the marketing department would be essential. In order to succeed in this role, the candidate must be able to demonstrate an interest in and awareness ofproduct development, trade and consumer insights. Excellent communication and interpersonal skills are principally required. You will have to demonstrate your commercial and creative thinking. If you are interested, please apply in writing with a full Curriculum Vitae Resume in En lish and a coverin letter. 205 Basic English of Economics A. UTYGINÅ Ex.4. Imagine that you are interested in applying for one of these 2 above-mentioned jobs. Write a letter to the employer in which you: • introduce yourself suitable say why you think you would be • ask for more information about the job Ex.5. Try to compose a job ad of your own. Take into consideration that you must: • • give basic information about your company; describe the features of character of the staff you need; mention qualification and age if necessary; • name the position you employ for; give your adress in full and all the phone numbers. Ex.6. Study the list of personal qualities below. You can use some of these ideas in your CV, or in an interview. active and dynamic approach creative problem — solver critical thinking — strong analytical skills determined and decisive emotionally mature and confident entrepreneurial good researcher — creative good team player — adaptable and flexible high standards of honesty reliable result-oriented self-aware — always seeking to learn and grow uses initiative to develop effective solutions to problems well-organized, good planner, good time- manager 206 MODULE 11 PEOPLE AND Which of these qualities would you use to describe: a) a real friend or collegue who you admire? b) yourself? Can you add any other personal qualities? ORGANIZATION Ex.7. Read an example and write down your own CV/ resume. Then describe it as if talking to a potential employer. 207 Basic English of Economics OLENA BONDARENKO Personal details Address: Blvd. Shevchenko, 12, Kyiv, Ukraine, 03004 Tel.: 221-14-51 Nationality: Ukrainian Date of birth: 4 April 1994 Education 2012 — to date Kyiv National University of Trade and Economics. Major: Marketing 2010 UCE Business School, Birmingham, Great Britain. Took courses in Business Administration, Political Science, etc. 2000-2010 Secondary School No.57 with English Specialization, Kyiv Work experience 2012 — to date Eximbank. The work includes some secretary duties and assistance in translation business correspondence. Skills • fluent oral and written English speak German excellent PC skills driving licence Interests member of university basketball team • keen interest in Greenpeace References Available on re uest 208 Basic English of Economics A. UTYGINA Basic English of Economics Grammar Revision Basic English of Economics Future time l . a) Will is used: for future facts Our boss will celebrate his 50th anniversary this Sunday. to make predictions based on a personal opinion The company won't survive this crisis. to make requests and offers Will you help me to do the translation? Don't worry, I'll help you with whatever needs doing. with promises, threats, refusals I promise I'll be there on time. Our shop won 't give you your money back. for decisions made at the time of speaking I know, I'll get him a wallet for his birthday. b) Shall is used in the interrogative form with I and We to ask for and make suggestions or offers. Shall we go to the Chinese restaurant? I'll make you a cup of tea, shall I? 2. Be going to is used: • to express plans or intentions I'm going to do lots of work tonight. To make or ask for predictions in response to something which exists in the present situation Look, that child is going to fall if she's not careful! 3. Present Continuous is used: To talk about events which are arranged for the future/fixed plans in the future We're not having the party on Sunday now, I'm afraid. Basic English of Economics 4. Present Simple is used with future meaning when talking about timetables or programs of events The train arrives at 4.15. Basic English of Economics 1 18 MODULE 11 PEOPLE ORGANIZATION Ex.l. Choose the correct variant. 1. This lesson ends/will end at 2 0'clock. 2. I'll go/l'm going to go shopping this afternoon. Can I get you anything? 3. I'll start/l'm going to start a new job next Monday. 4. I doubt he will apply/applies for this job. 5. Will you help/are you helping me to complete the application form? 6. I think I am going/l'll go to London soon. 7. We are presenting/will present the new company structure next week. 8. When does the new shop open? It will open/opens officially on 1st September. 9. What am I going to do/shall I do if he is late? 10. Will you do/Are you doing anything on Sunday? We will go/are going shopping. I l. Don't worry about meeting. I support/will support you. 12. — I insist on seeing the manager. — O.K., Sir. I am going/will go and call her. Ex.2. Complete these sentences using the correct form to express future meaning of the verbs in brackets. 1. 1 to Paris next week if I buy a ticket. (fly) 2. 1you the money tomorrow. (give) 3. Next winter holidays, I with my granny in the village. (stay) 4. Have you heard the news? The company (move) 214 to London. MODULE 11 PEOPLE 5. 1 to the general manager on Monday. (go) 6. Our business trip starts tomorrow. We at 10. (leave) 7. Next summer I a week in the Crimea. (spend) 8. What time the lecture 9. I'm sure she the job. She has a lot of experience. (get) ? (begin) 10. According to the timetable the bus at 8.00. (arrive) I l. All the hotels are full. Where we the night? (spend) 12. I don't think you any problems at the airport. (have) 13. Our company its 10th anniversary next year. (celebrate) 215 Basic English of Economics A. UTYGINÅ 14. J think Ia promotion this spring. (get) 15. 1 my bank manager tomorrow morning. (meet) 16. The football matchat 6 0'clock on Sunday. (start) 17. Look out! The ladder. (fall) 18. He to buy new furniture this year. (plan) Speech and Discussion Ex.l. Talk to your groupmate: • How important are the following factors when choosing a career? • Money; job security; prospects; social aspects; status; opportunities for travel, training. • What makes a good employee? • What personal qualities would you look for in recruiting and selecting new employees/ a human resources manager? Determined, flexible, open, ruthless, sensitive, single minded, with a good sense of humour, sociable, talkative, sympathetic, team worker, friendly, hostile, motivating, supportive, resentful, respecting, arrogant, biased Select 4 traits of character which you consider to be the most important and say if you possess them. 216 Basic English of Economics Ex.2. Discuss with your groupmates which is the best way to recruit staff. Talk about the advantages and disadvantages of each of the following as a way of selecting people: application form references • interview trial period personality test Ex.3. List the key aspects to be considered when selecting the most suitable candidates for promotion. Ex.4. What qualities should a person possess to be successful and occupy an important position in business? 217 MODULE 11 PEOPLE AND ORGANIZATION Ex.5. «Work is by no means the most important thing in life.» Do you agree with this statement? Ex.6. Express your opinion of the following. I. Recruitment of personnel is a critical task because newcomers tend to break a lot of tools and devices they are not familiar with. 2. It is necessary to hire new personnel with a good mix of skills because not everything can be learnt on the job. 3. Iliring new staff is expensive because it is connected with costs of recruitment, costs of training and so on. 4. Recruiting managers from the ranks of the existing staff is most effective and economical. 5. Making a quick decision to hire a person is always cheaper than using the services of an expensive headhunter. Ex.7. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them: l . This book is selling like hot cakes. 2. I'm sorry I missed the appointment, it must have slipped my mind. 3. A bad management decision spelt disaster for the company. 4. He is very secretive, it's difficult trying to worm information out of him. 5. My boss's joke really got me into deep water. Ex.8. Comment on the following: 218 MODULE 11 PEOPLE AND «The employer generally gets the employees he deserves.» (Anonymous) Ex.9. Read the joke: A manager is talking to a job candidate and discovers that he has never worked a day in his life. She says, someone with no experience, you are certainly asking for a high wage.» «Yes, I am,» the candidate says. «But the work is really much harder when you don 't know what you 're doing!» 219 Basic English of Economics А. UTYGlNA LESSON 4 Text: Interviewing Grammar: Future time (Future Continuous, Future Perfect) Terms to remember: соре (v) mterviewee interviewer reference accept the јоЬ offer справлятися особа, яка дае запрошений на iHTepB 'юер GQ приймати про роботу tum down the јоЬ offer про роботу appoint (v) призначати, затверджувати (на посаду) working conditions умови salary probationary period 3ap06iTHa плата sign (v) empioyment contract трудовий контракт 220 Basic English of Economics випробувальний in advance строк research (v) implement (v) relocate (v) training course strengths weakness 221 Basic English of Economics Interviewing Interviews may take many forms in business today: from the traditional one-to-one interview, to panel interview where several candidates are interviewed by a panel of interviewers to «deep-end» interviews where applicants have to demonstrate how they can cope in actual business situations. Moreover, the atmosphere of an interview may vary from the informal to the formal and from the kindly to the sadistic. Fashions seem to change quite rapidly in interview techniques and the only rules that applicants should be aware of may be «Expect the unexpected» and «Be yourself!». But anyway an interview is a formal meeting between a candidate and people from the company. In this situation, the candidate is the interviewee and the representatives of the company are the interviewers. After an interview, the interviewers will follow up the references of promising candidates. To do this they ask for a letter about the candidate from a previous employer (or a tutor, in the case of a recent graduate). Once this process has been completed, the interviewers need to select the best candidate for the job and offer him or her the post. The candidate will then accept, or turn down the job offer. When the person has been officially appointed (given the job), an employment contract is signed, agreeing the working conditions and salary. New recruits to a company will often work a probationary period during which their employer can decide whether the person is suitable and should be allowed to continue. If you are an interviewee you should do the following in advance: research the organization read the job description carefully think about the questions you may be asked, and plan your responses be ready to talk about your career, both past and future + be prepared to explain why you think you are suitable for the job 222 MODULE 11 PEOPLE AND ORGANIZATION A. LATYGINA Below are some questions that are frequently asked in job interviews: Tell me a little about yourself. Why do you want to leave your current job? Why do you seek a job with this company? What information do you have about our company? What do you think you can bring to this job? What changes would you implement if you got this job? How would you feel about relocating to another city (working in a very small team? training courses?) Could you tell us something about your responsibilities in your last job? (about your experience of dealing with diffcult client? about your long term goals?) What would you say are your sfrengths/weaknesses? How do you deal with criticism? Wnat do you see yourself doing in 5 years? How do you see yourself developing personally? So, finally, why should we hire you rather than one of the other candidates? Exercises in Word Study Ex.l. Form nouns from the following verbs: interview, represent, refer, complete, select, accept, appoint, sign, agree, explain, implement. Ex.2. Give the English for: 3ycrrpiq; oc06a, 51Ka mae iHTePB'ro; npeAcrraBHMKM 223 Basic English of Economics K0MnaHii•, peK0MeHAauii•, nepcneKTHBHHi KaHAHAarr•, BiÅi6paTH Kpamnx KaHÅHÅarriB•, 3anp0fl0HYBaTH nocamy; HPHVIHATH/ BimxunMTH 11POP03HUiK) npo p060Ty; rliAnmcaTH rrpYA0BHM KOHTPaKT•, Y31'0AHTH YMOBH npaui 3 Ta gap06iTHY KJ1ieHTOM•, BMIIPO6YBaJ1bHHä CTPOK. nnarry; Kap'epa; AOBrOCTPOKOBi mocBiÅ cniJIKYBaHH}1 uiJ1i; p060ToaaBeL1b, Ex.3. Match words from list A with words from list B that have a similar meaning: formal turn down appoint conditions salary carefully response relocate implement responsibility duty put into action move to a new place answer attentively payment terms designate reject official Ex.4. Find suitable opposites to the following words and phrases: interviewee, formal, to accept, to dismiss, strengths, inattentively. Ex.5. Match the nouns in the left hand column with the verbs in the right hand column 224 MODULE 11 PEOPLE AND ORGANIZATION increase referenceearn cancel salarymake supply implement contractaccept turn down job offerbreak negotiate consider 225 UTYGINA A. Basic English of Economics Ex.6. Look at the words and phrases in the box. Match them with the correct definition from the list below: interviewer interviewee job salary reference l) a meeting at which a person applying for a job, is asked questions about his/her work, experience, interests to see if he/she is suitable; 2) a person who is interviewed, esp. for a job; 3) a person who carries out an interview; 4) a written report on a job applicant's character or ability to do the job; 5) a legal agreement made between an employer and an employee, giving details of salary, hours of work, holidays, etc; 6) a regular fixed payment for work or services; 7) a person offering to take up a post or job. Ex.7. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. l. The . . . will last for about 40 minutes. 2. Have you . . . the job offer? 3. Why did you . . . the job offer in that prosperous firm? 4. In her early twenties, she was . . . head of Public Relations. 226 UTYGINA Basic English of Economics 5. The asked him some awkward questions. 6. The starting is € 15 000 per year. 7. The Personnel Manager went through . . with each new employee to make sure that it was fully understood before signing. 8. My former boss said that I could use him as a 9, She was . to the post of sales director. 10. Finance is not one of her 1 1, At the end of the you will become a permanent employee. 227 UTYGINA Basic English of Economics Strengths, reference, the contract of employment, salary, interviewer, appointed (2), turn down, accepted, interview, probationary period. Ex.8. Fill in the missing prepositions. Interviews The employment interview is perhaps the most widely used selection technique. Job candidates are usually interviewed at least one member . . . the HRM staff and the person . . . whom they will be working. Candidates higher-level jobs may also meet . . . a department head or vice president. Interviews provide an opportunity . . . the applicant and the firm to learn more each other. The candidate has a chance to find . . . more . . . the job and the people . . . whom he or she would be working. (by (2), of, for (3), with (2), about (2), out) Ex.9. These words are often confused: power — strength power strength — the authority and ability to do something important — the energy that someone has to lift or move things; the ability to achieve something, even in a difficult situation Complete these sentences using the correct form of one of the words above. Make sentences of your own to show that you understand the difference in their meaning. 228 MODULE 11 PEOPLE AND ORGANIZATION l . The president has enormous . . . to make decisions. 2. I don't have the to move that table alone. 3. She has the . . . to help us with our problems. 4. We have the . . . to stop the deal at any time. 5. The illness has left her with very little A. 6, The British royal family has very little . . . these days. 7. She has a very character. 8. He made a speech asking the government to take measures. 9. As a manager, she has the to hire employees. 10. We need someone who has the inner to take on a difficult job. Exercises in Comprehension Ex.l. Answer the following questions: l . What forms may interviews take in business today? 2. What is a job interview? 3. Who interviews the candidates? 4. What will the interviewers follow up after the interview? 5. What document is signed when the person has been officially appointed? 6. What does an employment contract agree? 7. What should an interviewee do in advance? 8. Have you applied for any jobs? 9. Have you been interviewed? How did it go? 10. What's the usual process for getting your first job in Ukraine? 229 UTYGINA Basic English of Economics Ex.2. Put the following steps in the recruitment process in the correct order. The recruitment process: a. the candidates are interviewed b. the successful candidate is offered the post c. individuals apply for the post in writing d. the post or position is advertised 1. 2. 3. 4. 5. e. the employer selects job candidates for the interview 230 MODULE 11 PEOPLE AND ORGANIZATION Ex.3. Sum up what the text says about: interviewees and interviewers • an employjnent contract job interviews Grammar Revision Future Continuous, Future We use the Future Continuous to talk about: actions or events that will be in progress at a specific time in the future This time next week I'll be flying to London. • something that will definitely happen in the future, cither because it is already planned or because it is part of a normal routine We'll all be using the Internet in ten years' time. We use the Future Perfect to talk about actions or events that will be finished before a certain time in the future I'll have written the re ort b Sunda Ex.l. Choose the correct variant. l . I won't have time to solve this problem tomorrow because I'll be working/ I'll have worked all morning. 2. The interviewers will be finishing/will have finished the selection of the best candidates for this job by 6 0'clock. 231 3. 4. 5. 6. MODULE 11 PEOPLE AND Don't come to the office at eight because we won't have arrived/we won't be arriving by then. This time next week I'll be taking /l'll have taken my entrance exams. By the time I retire I'll be working/ I'll have worked here for thirty years. Will you be using/will you have used your computer this evening? 232 UTYGINA A. Basic English of Economics 7. I expect the meeting will be starting/will have started by the time we get to the conference hall. 8. We won't have finished/ won't be finishing this work by the end of the month. 9. By the time we get to the stadium, the game will be starting/ will have started. 10. We'll have held/we'll be holding our annual meeting soon, so we can make a decision then. 11. We will make/will have made the last payment by the end of the month? 12. This time next week I'll attend/l'll be attending a seminar in London. Ex.2. Complete these sentences using the correct form to express future meaning of the verbs in brackets. 1. 2. 3. 4. 5. Wait for me. I . . . ready in a moment. (be) In ten years time I expect I . . . in this company. (work) By the time we reach office, the rain (stop) He . . . the employment contract by the end of this week. (sign) The representatives of the company . . . my friend from 3 to 5 tomorrow. (interview) 6. I'll give him your message. I can do it easily because I . . . him tomorrow. (see) 7. This time next Sunday I in a London cafe reading a newspaper. (sit) 8. I . . . this article by tomorrow morning. (finish) 233 UTYGINA Basic English of Economics 9. By next summer the company . . . new offices in Kyiv. (open) 10. By the end of the month 2, 000 visitors . this exhibition. (see) 11. By the end of the year the company . . . all our debts. (pay off) 12. You . . . to your boss at the meeting tomorrow? (speak) 13. I wonder what I . . . this time next year. (do) 14. — I am going to Netherlands next week. You are lucky. The tulips just . . . out. (come) 234 MODULE 11 PEOPLE AND ORGANIZATION Speech and Discussion Ex.l. These words are often used in job advertisements. Explain what kind of people companies look for. selfstarters, proactive, self-motivated; • methodical, systematic and organized; computer — literate; numerate; talented; team-players. Ex.2. Imagine you have to interview a candidate for a vacant position. Draw up a list of questions you would like to ask each person applying for this job. After the interview discuss the candidate with your partner. Would you employ him/her? Why? Why not? Ex.3. Describe a job that you would or would not like to have and explain what skills and type of personality are required for it. Ex.4. Discuss with your groupmates which of the following factors would be important to consider while choosing a company to work for: Size of a company, attitude towards staff, recruitment process, location, reputation of a company, salary, management structure, working conditions, job security, career opportunities. 235 English of Economics Basic A. LATYGINA Ex.5. Read the text below and fill in the gaps with a word built from the word given on the right. I knew the last that walked through my door. interview He didn't recognise me but I most certainly recognised him. His name was Simon Brown. I looked at his form and curriculum vitae. According to apply at economy, his CV, he had been working as a senior a bank in the city of London. He claimed prestige that he had resigned because he no longer found his job challenging. Now, Mr. Brown and I had been to school together and I knew for a fact that his brain was the size of a pea. It was not inconceivable that he had gained the he claimed he had, but the qualify was that his CV was a tissue of lies. My likely suspicions were borne out by his poor performance during our interview. We said our goodbyes and I immediately rang one of thereference he had named at the end of his curriculum. I was sure that this person would tell me truth about Mr. Brown's track record. Mr. Brown had in deed worked for a big city bank, not as part of their team but rather as the person who made manage the tea in the morning. I then rang up the bank and found out that he had not resigned — he had in fact been fired. I was told that he was lazy, rude and permanently and that be late, was that completely his legendaryin any competent 236 lacking was English of Economics skills — and bear in mind that all he had organise to do was make tea. So what did I do? Did I employ him? I'll let you be the judge of that. (Advanced grammar and vocabulary Mark Skipper) to resign — iTH y BiÅcTaBKY, BiAMOBJ1flTHCH (BiA nocaÅH) inconceivable HeäMOBiPHHii suspicion — niA03pa track record— cnyxc60BHii cnncox, nepeniK BHAiB AiflJ1bHOCTi 237 MODULE 11 PEOPLE AND ORGANIZATION Do you think that Simon Brown was offered the post? If you were an interviewer would you employ him? If not, explain why. Ex.6. You are a jobseeker and you are interested in a particular post. How do you imagine your future interview? Ex.7. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. There is monkey business with tax money going on in this region. 2. We've been working for 10 hours and we are tired; let's call it a day. 3. He makes a killing selling umbrellas when it rains. 4. The advertising agency won't accept cheques any more, only hard cash. 5. I got the news at first hand, so I know it's true. Ex.8. Comment on the following proverbs and sayings. Do they have equivalents in Ukrainian? Think of situations where you could use them. Pride comes before a fall. People who live in glass houses shouldn't throw stones. Ex.9. Read the joke: THE JOB 238 MODULE 11 PEOPLE A woman was being interviewed for a job. «You understand that before we can offer you position, you must take a short test.» «Of course,» she answered how much is two plus two.» «Four.» A second applicant entered the room. After a short interview, the recruiter asked,» Are you ready for the test?» «Yes.» how much is two plus two?» The applicant answered, «whatever the boss says it is.» The second applicant got the job. .1 239 Basic English of Economics A. UTYGINA LESSON 5 Text: Executive Pay Grammar: When and if sentences Terms to remember: interest contribute to (v) at an advantageous price rent on properties income annual salary wages remuneration commission amount fee compensation package bonus fringe benefits/perks generous benefits package medical insurance pension plan share option npoueHTHHM npm6yroyc•, BiÅCOTOK; qacTKa (B HOMYCb); iHTepec, 3aUiKaBJ1eHiCTb moxiÅ BiÅ1 HepyxoMoro MaiiHa npH6YT0K', ÅOXiA•, 3ap06iT0K pit1HMVi 0KJ1aA (CJIPK60BUiB) gap06iTHa nnaTa (P06iTHHKiB) BHHaropoma; onnaTa; K0MneHcauiA KOMiciMHa BHHaropoma, K0MiciMHi KiJ1bKiCTb, 3araJ1bHa CYMa roHopap; BHHaropcua•, nnaTa 3araJ1bHa CYMa onnaTH npaui npeMi51 AOÅaTKOBi niJ1brH uxeÅpnii•, BeJIHKHii•, 3HaLIHHM naKeT niJ1br Memvrtma CTpaxoBKa nporpaMa neHciäHoro 3a6e3neqeHHH onui0H Ha arcuii (niJ1bra, iHOÅi orrpMMYEOTb npaUiBHHKM K0MnaHii. 240 MODULE 11 PEOPLE BOHa Hamae iM npaB0 Kyr1YBaTH aK11ii K0MnaHii 3i 3HU)KKOK) CTOCOBHO golden goodbye/golden handshake/golden parachute oust (v) golden boot PHHKOBOi uiHH). p06HTH BHeCOK•, cnpnxru (40Mycb) 3a BHriAH010 uiH010 AND ORGANIZATION 30JIOTe 11POLUaHHA/30JIOTHä napamyr (Benmca K0MneHcaqiMHa CYMa rpomeä ra pi3Hi npHBinei nocaÅ0BiV1 oc06i, 1110 ime y BiACTaBKy; BeJIHKa 0AHopa30Ba BH11J1aTa mupewropy, MeHeÅxcepy, 1110 y BimcrraBKY, a60 npauiBHHKY, 51KHii 3anmmae KOMnaHiO e BHPHaTH 3 P060TH, 3BiJ1bHHTH 30JIOTUVi qepeBHK (KOMneHcaL1i1iHHii naKeT, BH11J1aTH npauiBHHKY, *Koro 3MYL11YK)Tb 3aJIHIUHTH KOMnaHiYO) Executive Pay For their regular job performance, people get their pay in accordance with employment contract. Pay is seen as one of the most important forces in motivating the workforce. The money a person receives, including salary, dividends, interest and rent on properties is called income. White-collar workers and professionals usually get a salary which is paid monthly, while blue-collar workers receive a weekly payment called wages. Remuneration is a general term meaning «payment for work». In some jobs (in sales for example), the employee receives a commission, which is a percentage of the amount he or she has sold. 241 Basic Englis A fee is money paid for the professional services of people such as lawyers or consultants. Benefits add to the value of job. Apart from salary, an executive's compensation package can include bonuses and fringe benefits or perks. Many companies operate a bonus system for A. UTYGINA white-collar and blue-collar workers. Bonuses (extra payments) are usually paid against certain work done. Fringe benefits or perks are extras received by an employee in addition to wages or salary. In managerial position these are usually generous, and are negotiated when a job offer is being made. A benefits package may include: a company pension scheme, private medical insurance, company car, share options. A company pension scheme is a private pension plan which the employer contributes to. Share options give the employee the chance to buy shares in the company at an advantageous price. There is also a compensation package for an executive leaving a company. It is also known as a golden goodbye, golden handshake or golden parachute. When executives are ousted, people may talk about companies giving them the golden boot. In Britain, executives with high pay and good benefits may be referred to as fat cats, implying that they do not deserve this level of remuneration, 242 MODULE 11 PEOPLE Exercises in Word Study Ex.l. Form nouns from the following verbs: pay, remunerate, mean, employ, serve, consult, add, negotiate, insure, contribute, compensate. Ex.2. Give the English for: AHBimeHÅH, npoqeHTHHii rrpH6YTOK, AOXiA Bia Hepyx0Mor0 MaäHa, Ha p060qoMY Micui, CITY)K60BeUb, piq1-1Hvä OKJ1aÅ, p06iTHHK, 3ap06iTHa rlJ1aTa P06iTHHKiB i cnyx60BUiB, K0MiciMHi, roHopap, nocnyrn, }OPHCT, KOHCYJ1bTaHT, 3HaqHi AOAaTKOBi niJ1ffU, narceT niJ1br, MennqHa cTpaxoBKa, rcyr1YBaTH aK11ii 3a BHI'iAHO}0 uiH010, onui0H Ha arcuii, npeMiH, uporparvta neHciM1-10ro 3a6e3neqeHHR, BHT'HaTH 3 p060TH. 243 MODULE 11 PEOPLE AND ORGANIZATION Ex.3. Match words from list A with words from list B that have a similar meaning. B earnings obtain stimulate big payment reimbursement perk stock receive motivate pay income compensation perquisite share generous Ex.4. Match the nouns in the left hand column with the adjectives in the right hand column. 244 MODULE 11 PEOPLE AND regular wagesannual high low paymentnet weekly monthly incomequarterly controlling absolute interestlife taxable poor remunerationgenerous guaranteed perksfair basic incentive 245 A. Basic English of Economics LATYGINÅ Ex.5. The words in the box frequently occur after epay»: phone døY packet Qasvter cbecX Find combinations that mean: l) the day when an employee receives his/her wages or salary; 2) an envelope containing money earned by an employee; 3) a salary or wage given in a check; 4) a public telephone that you put money in to use; 5) a list of all the people employed by a company, and the amount of money paid to each of them; 6) a cashier; 7) a piece of paper you get from your employer when you are paid, showing how much money you have earned and how much tax has been taken away. Ex.6. Match the synonymous expressions: 1) social security 2) wage packet 3) office job 4) health services 5) unemployed people a) pay packet b) clerical work c) social welfare d) jobless people e) medical care Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below: 246 A. Basic English of Economics interest commission compensation package corne consultant m dividend 247 MODULE 11 PEOPLE AND ORGANIZATION 1) a percentage paid on amount of money; 2) money (in the form of wages or a salary or profit) received from work done; 3) payment for services given; 4) a payment made to someone for providing a service or goods. The amount is usually a percentage of the total value of the deal; 5) an amount paid for a professional service or advice; 6) money or goods received in addition to a salary; 7) a combination of salary and benefits that an employer offers to an employee; 8) a right offered to employees, to buy shares in the company where they work at a cheap price; 9) a compensation package for an executive leaving a company; 10) a sum of money paid to shareholders as their part of the company's profit; 11) a person who provides advice for pay; Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. 2. 3. 4. 5. 6. 7. 8. Will you accept € 100 as . . . for the work? She is much better off since her . increase. These shares should pay high These gas shares earn a lot of She receives excellent . . . for her work. The bank charges . . . for exchanging foreign currency. How much is your lawyer's . . . ? He was offered a company car as 248 MODULE 11 PEOPLE AND 9. . . . we consider most important are non-contributory pensions, company cars and healthcare. 10. A € 750,000 to Mr. Brown, 68, retiring chairman of the tobacco company was pushed through at the company's annual meeting. 11. We receive a substantial part of our pay in the form of 12. When I retire, my will be 60% of my final salary. 249 A. Basic English of Economics UTYGINA Golden goodbye, the benefits, a perk, fee, a commission, remuneration, interest, dividends, salary, payment, bonuses, pension. Ex.9. Fill in the missing prepositions Fringe benefit Fringe benefit is a reward . . . an employee's labour which is not based . . . money, but which takes an alternative form. Increased holiday entitlement, a subsidized canteen, free or cutprice products, or private health care insurance, are examples such non-financial rewards. It is increasingly recognized that money is only one element that motivates the workforce, so the use nonmonetary incentives is becoming more common shopfloor level, trade unions are increasingly including nonfinancial elements . . . their negotiations management. management level, the «perks» . company cars, sizeable expense accounts . . . traveling, and other nonsalary incentives, are an important element . . . attracting executives . . . one post . . . another. (to, in (2), with, at (2), of (3), from, for (2), on) Ex.10. Use the terms in the box to complete the text. 250 A. Basic English of Economics bonuses Pension salary ye options payroll A . . . package is the total amount of money and extra things that an employee receives for the work that they do. If an employee is on a company's . . . , they work for and are paid by the company. In addition to their basic . . they may receive for example a car or medical care. They may also receive extra 251 MODULE 11 PEOPLE AND ORGANIZATION amounts of money, or This is especially true when they are receiving performance — related pay, which is a rate of pay based on how well someone does their job. Some companies also offer their staff or stock options, which means that they can buy shares in the company at a special price. Staff may also receive a which is money paid to an employee after they retire. Ex.ll. These words are often confused: salary — income —pay — wage salary — is paid monthly to professional employees income — money receivedfrom work done, or (as interest) from money invested or (as rent) from property owned Pay — money given to an employee by an employer in returnfor work wage — is paid weekly to manual or unskilled workers Complete these sentences using the correct form of one of the words above. Make your own sentences to show that you understand the difference in their meaning. 1. My friend is going to get a . . . rise next week. 2. That company pays a good . . . to its workers. 3. Her . . . increased when she changed jobs and bought stock. 4. Her husband is a lawyer. His . . . has increased 10 percent this year. 5. The starting . . . of our new sales manager is € 15 000. 6. Tax is payable on all . . . over € 2000. are paid every Friday. 8. His . . . is about € 150 a week. is usually paid monthly but . is usually paid weekly. 10. Very few office workers get good 11. A person's . . . falls dramatically on retirement. 12. In many countries workers are paid a legal minimum . . . 252 A. Basic English of Economics UTYGINÅ Ex.12. Consult a dictionary and say whether these expressions refer to earning a high or a low salary. Translate the sentences into Ukrainian. I. I've been an actor for years, earning a crust wherever I can. 2. We are tired of working for peanuts. 3. She is rolling in money. 4. She expects her employees to work for a pittance. 5. I bet he gets a nice fat salary. 6. He knew her family was loaded. 7. He made a fortune from mining. 8. They live from hand to mouth. 9. Ha has been laughing all the way to the bank. 10. It's difficult for her to make both ends meet. 11. He worked for nothing. 12. Don't worry, he has got deep pockets and will see the project through. 13. It's hardly worth getting out of bed for. 14. Are we talking telephone numbers? Exercises in Comprehension Ex.l. Answer the following questions: 1. What is seen as one of the most important forces in motivating the workforce? 2. What is income? 253 A. Basic English of Economics 3. What does a whitecollar worker receive for his/her work? 4. What does a bluecollar worker receive for his/her work? 5. Where do employees receive a commission? 6. What is a fee paid for? 7. What are fringe benefits? 8. What may a benefits package include? 9. What is a golden handshake? 10. What are bonuses usually paid for? 11. How important is salary in your choice of career? 12. Do you think top executives are too highly paid? Or do they deserve what they earn? 254 MODULE 11 PEOPLE AND ORGANIZATION Ex.2. Which of the following are examples of fringe benefits? 1 ) company mobile phone 2) share options 3) rapid promotion 4) free health insurance 5) overseas travel on company business 6) company car 7) being on the company payroll 8) use of a subsidized canteen 9) attendance at board meetings 10) relocation package to cover moving expenses 11) sick-leave and holiday pay 12) retirement plans 13) training 14) child care Ex.3. Explain the difference between: • salary and wages; • income and fringe benefits. Ex.4. Sum up what the text says about: • income; bonuses and fringe benefits; • a compensation package for an executive leaving a company. 255 A. Basic English of Economics UTYGINA Grammar Revision When and If Sentences 1. In sentences involving link words and phrases such as when, before, after, as soon as, in case, till, until, if, unless the Present Simple Tense (the Present Perfect Tense — to emphasise the completion of an event) is used, although this refers to future time. I'll give you my phone number in case you get lost. I'll give you a ring as soon as I've received his telegram. 2. We use: • if to say that we are not sure whether something will happen. I'll see you in October, if I come to Kyiv. • when to say that we are sure that something will happen I'll see ou in October when I come to K iv. Ex.l. Put the verbs in brackets into the correct tense (present or future). 1. When he (get) his salary we'll buy a new TV set. 2. I'll be ready as soon as you (be). 3. She will be happy when she (hear) this news. 4. I (lend) you my car whenever you want it. 5. My boss will be upset when he (see) how slowly she works. 6. He'll pay you when he (get) his cheque. 7. As soon as she (learn) English he'll get her a job. 8. You shouldn't count on a salary increase before you actually (get) it. 256 A. Basic English of Economics 9. The company won't make any decision till he (arrive) here. 10. By the time he (retire) he will have worked here for 20 years. 11. I (contact) you as soon as I get information. 12. If they (not receive) payment next week they will take legal action against us. 257 MODULE PEOPLE AND ORGANlZATlON Ех.2. Put each verb in brackets into а suitable tense. АП sentences refer to future time. 1. As soon as I (get) there, I (write) уои а letter. 2. She (buy) that house when she (have) enough топеу. З. I (phone) уои ifI (be) late. 4. I (buy) this company's shares as soon as the price (соте down). 5. The machine (not work) until уои (press) that button. 6. I (Пу) to Greece after the strike Фе) over. 7. We (have) to stay here till the rain (stop). 8. IfI (see) him I (ask) for а rise. 9. As soon as I (hear) from him I (let) уои know. 10. 0ur shop (not give) уои your топеу back if уои (not bring) the receipt. 11. Ifthey (close) the factory, а lot of small businesses (suffer). 12. 0ur sales (fall) when we (put ир) prices. Ех.З. Translate into English: 1. Якщо ваша зробить заходи, то рада оклад 2. Як ви продасте що товару, ми виплатимо вам винагороду. З. того, як будуть умови наших p06iTHldkiB значно покращаться. 4. Якщо у мене буде то я придбаю за зниженою 5. Якщо ви будете працювати в ви будете мати багато додаткових 6. Як директор йому 3ap06iTHY плату, BiH придбае новий 7. Коли ви одержите медичну страховку, ви зможете легко свот проблеми. 258 MODULE 11 PEOPLE AND 8. Якщо цей адвокат зможе нам допомогти, то BiH отримае високий гонорар нашоТ компанй. A. LATYGINA 9. AKLI(O BH 6yneTe 110CTiiHHM KJ1i€HTOM Lliei K0MnaHii, TO BH 0TPHMaeTe 3HaqHi IliJ1brn. 10. 51KL110 BH 3BepHeTecb AO Hamoi K0MnaHii, TO MH HanaMO Barvf np0(beciiiHi nocnyrn. 11. A 3ycTpiHyc9 3 reHepaJ1bHHM AHpeK'10POM, neplll Hix rliÅrmcaTH ueii KOHTPaKT. 12. BiH 6YAe 3aAOBOJ1eHHii, KOJIM orrpHMae rraKHVf narceT ninbr. Speech and Discussion Ex.l. Discuss with your groupmates what way of being paid is the most attractive for an executive. Ex.2. Do you think that employees' benefits are really necessary? Why? What extra benefits would you like your company to offer you? Ex.3. Imagine the manager of a firm is interviewing applicants who have applied for the job of his personal secretary. You are also being interviewed. Give a conversation between the manager and yourself. 259 Basic English of Economics The manager wants to know: your name, age, address, details of your education, qualifications, why you are interested in the job, the names of the people who could send personal references, etc. you would like to know: what kind of work you will have to do, about your salary, holidays, fringe benefits and bonuses, a company pension scheme, working hours, etc. Ex.4. Speak about the perks you would like to have in order to get what you want. ORGANIZATION Ex.5. Interview two people you know about their jobs. Find out about the benefits and rewards they get from their job. Tell the class. Ex.6. Think about the following: «Performance-related pay is a horrible invention that creates enormous stress and insecurity in the workplace». Ex.7. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. I hope that, by the time you retire, your son will be old enough to step into your shoes. 2. Don't get shirty with me; I didn't take your book. 3. Now her husband has lost his job, she will be obliged to cut her coat according to her cloth. 4. He has it together and is doing well in business. 260 MODULE 11 PEOPLE AND 5. All I had to do was to walk up and down the room and smile at the customers. It was money for jam. Ex.8. Comment on the following: «Patience pays dividends.» (Anonymous) Ex.9. Read the joke: A certain firm had the following legend printed on its salary receipt: «Your salary is your personal business, and it should not be disclosed to anyone.» The new employee, in signing the receipt added: won't mention it to anybody. I'm just as much ashamed of it as you are». A. UTYGINA LESSON 6 Text: Leaving a job Grammar: Tense Revision. Progress Test I Terms to remember: resign (v) iTH y BiACTaBKy; BiÅMOBJIRTHCR Bin nocanw, CKJ1aguaTH 3 ce6e 060B 'fl3KM quit one's job (v) 3aJIH1naTH p060Ty; 3BiJ1bHflTHCW, iTH y BiACTaBKY fire (v) terminate (v) sack (v) unemployed retire (v) antep. 3BiJ1bHRTH 3 p060TH 3BiJ1bHflTH 3 p060Tu 3BiJ1bHflTH 3 P060TH 6e3p06iTHHii 3aJIHL11aTH nocany, iTH y BiÅCTaBKY (Ha neHCiK)), 261 Basic English of Economics takc early retirement (v) 3BiJ1bHflTHC51 paH0 niTH Ha neHciro (y BiACTaBKY) unemployed closure dismiss (v) dismissal lay off (v) make redundant (v) redundancy redundancy/severance payment outplacement 6egp06iTHHM 3aKPHTTfl, 3aBep111eHH}1 3BiJ1bHflTH (3 p060TH) 3BiJ1bHeHHS1 3 p060TH IIPHIIHHHTH p060Ty; a,uep. 3BiJ1bHATH P06iTHHKiB 3BiJ1bHHTH y 3B'A3KY 3i CKopoqeHHHM UlTaTY 111TaTiB', 3BiJ1bHeHHA crcopoqeHHfl P06iTHHKiB (CJIY)K60BuiB) monorqora rlPH 3BiJ1bHeHHi 3 P060TH (Hanpmcnan, npn cKopoqeHHi urraTiB) npaueBnaL11TYBaHHR npauiBHHKiB, *KHX 6yno 3BiJ1bHeHO cKopoqeHHi urraTiB 262 npn MODULE 11 PEOPLE AND ORGANIZATION Leaving a Job There are many different reasons why employees leave their job. Some people leave a job voluntary and some involuntary. On the one hand, they may decide to leave themselves because they want to move to another job or retire. On the other hand, they may be forced to leave their job by the company. A person resigns, 0! quits his job, when he leaves it voluntary. When people are made to leave the organization we say that they are fired, terminated or sacked. For them, finding a new job may be difficult and as a result they become unemployed. At the age of 60 many employees retire, though the retirement age varies from one country to another. Some employees leave at an earlier age; this is known as taking early retirement. Labour market is very flexible. Companies can react quickly to economic problems. Company reorganization, relocation or closure often result in job losses. When people lose their jobs, they are dismissed, laid off or made redundant. These job losses are known as redundancies, dismissals or lay-offs. An employee who is made redundant or laid off has- a right to receive compensation in the form of a redundancy/severance payment. This is an amount of money paid out to compensate the employee for the job loss; it is calculated according to the age, length of service and the salary earned by the employee. They may also get advice about finding another job, retraining, etc. This is called outplacement advice. Exercises in Word Study Ex.l. Form nouns from the following verbs: resign, retire, reorganize, relocate, close, lose, dismiss, pay, vary, form. 263 A. Basic English of Economics UTYGINÅ Ex.2. Give the English for: 3aJIHUIHTH p060TY 3a BJ1aCHHM 6axaHHflM•, iTH Ha peopraHi3auifl K0MnaHii•, BTpaTa p060Tw, cKopoqeHHH 111TaTiB; onep)KYBaTH A0110Mory npn 3BiJ1bHeHHi 3 p060Tw, KOMneHCYBaTH CJIPK60BLUO BTpaTY P060TW, 3aP06JIATH rpollli; 3BiJ1bHATH 3 p060TH (KODCb); 6e3p06iTHHii•, pearyBaTH Ha eKOHOMiqHi np06neMH. Ex.3. Match words from list A with words from list B that have a similar meaning: resign jobless sack quit (one's job) change sum dismissal obtain vary fire redundancy receive salary amount unemployed wages Ex.4. Find suitable opposites to the following words and hire, remain, find, waste, voluntarily, location, receive' closure, early, react, jobless. 264 MODULE 11 PEOPLE AND ORGANIZATION Ex.5. Match the nouns in the left hand column with the verbs in the right hand column. redundancygive hand in resignationoffer take make lossface result in threatened with closuresuffer salarybe get the sackincrease reduce Ex.6. Look at the words them with the below. and phrases in the box. Match correct definition from the list I) a situation in which a worker agrees to give up his/her job; 2) to give up a job or position; 3) to stop work, esp. because of age; 4) the act of bringing something to an end; 5) moving a person or an organization from one place to another; 6) to remove an employee from a job or position; 7) a payment made to an employee as a compensation for the loss of a job; 8) to get money by working; 9) to leave a job at an earlier age; 10) without a job; idle. 11) advice about finding another job, retraining, etc. 265 A. Basic English of Economics UTYGINÅ Ex.7. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. She decided to take . . . rather than a cut in pay. 2. She has . . . from her post as marketing manager. 3. He was asked . . . when the fraud was discovered. 4. He ... from the bank after 30 years service. 5. The usual age of . . . is 60. 6. The bank clerk was .. . for dishonesty. 7. Over 500 steel workers face 8. A slump in business has led to the . . . of many factories. 9. The merger will result in 10. If he is late again he will get 11. The employee protested against the reason for his 12. The company has ... a section of its employees. 13. My friend was ... from her job yesterday. 14. Workers will be given 60 days' notice and paid . . . based on length of service. Terminated, laid off, dismissal, the sack, relocation, closure, redundancy (2), fired, retirement, retired, to resign, resigned, voluntary redundancy. Ex.8. Divide the words and word combinations in the box into two columns. dismissed, laid off, fired, made redundant, sacked, offered early retirement, terminated, ousted 266 MODULE 11 PEOPLE AND ORGANIZATION If you've done something If you've done nothing wrong, wrong, you are you are Ex.9. Fill in the missing prepositions. Redundancy Redundancy is the situation that results when an employee's contract . . . employment is ended because that job no longer exists or is no longer needed. A factory might close which would make all the workforce redundant, or a factory, a new machine might make a particular job no longer necessary. Workers who are made redundant have a right to receive compensation . . . the form a lump-sum payment which varies ... the length . . . service . . . the employee. Many companies . fact negotiate . . . trade unions to give more than the minimum legal requirement compensation, especially if they are asking . . . workers to accept voluntary redundancy as opposed . compulsory redundancy. (to, down, in (3), within, according to, of (4), with, for) Ex.10. Build your vocabulary. Learn phrasal verbs for business! to step down — to leave an important job or position (as/from something) and let somebody else take your place. to resign — has a similar meaning but means «to tell someone officially that you are leaving yourjob.» Read these sentences carefully and translate them into Ukrainian. 1. She is stepping down after four years in the job. 267 Basic English of Economics UTYGINÅ 2. He has decided to step down as director of the company. 3. No one knows who will replace the Governor of the Bank of 4. 5. 6. 7. England when he steps down in March. Although she is stepping down from the committee, she will still be involved with the organization. Mr. Brown has announced that he is stepping down as chairman next month. Mr. Black will step down as head of the department in January. She is stepping down from the committee due to other work commitments. 268 Basic English of Economics UTYGINÅ A. 8. He has finally stepped down after fifteen years as the company's CEO. 9. I have heard that Ms Hudd has stepped down from the management committee. 10. He is under pressure from shareholders to step down. Exercises in Comprehension Ex.l. Answer the following questions: 1. How can a person leave a job? 2. When does a person resign? 3. When is a person fired or sacked? 4. When does a person retire? 5. What do we call «early retirement»? 6. What is redundancy? 7. Why do employers make employees redundant? 8. What is a redundancy payment? 9. How is the compensation for the job loss calculated? 10. What do we call «outplacement»? Ex.2. Are these words about starting or finishing a job? apply, retire, employ, resign, dismiss, hire, make redundant, fire, recruit, take on, sack, appoint, headhunt, step down, oust. Ex.3. When a worker is made redundant, the firm is obliged to make a payment to the employee. What is this payment called? a. compensation 269 Basic English of Economics UTYGINÅ b. outplacement c. severance Ex.4. Sum up what the text says about: various ways to leave a job; + resignation and retirement; redundancies; dismissals. 270 MODULE 11 PEOPLE AND ORGANIZATION Grammar Revision GRAMMAR PROGRESS Choose the correct variant. TEST 1 I. I have not seen my business partner since he . . . London. a) has left b) had left c) left 2. I decided to go to my office immediately when I remembered I . . . the door. a) didn't lock b) hadn't locked c) haven 't locked 3. He has made four presentations since he . . . in Ukraine. a) has arrived b) arrived c) had arrived 4. I will be explaining this rule to you until I . . . you understand it. a) will see b) shall see c) see 5. You will miss your train unless you .. . now. a) leave b) will leave c) do not leave 6. The plane which . . . from Heathrow at 12.30 is expected to land in 5 minutes. a) took off b) had taken off c) was taking off 7. He . . . his annual report at the moment. a) is preparing b) preparesc) has been 8. It will not be good if you wait till he . . . about it from your boss. a) will learn b) learns c) will have learnt 9. Just as I thought, he . . . our office easily. a) has found b) had found c) found 10. I knew he me before so I wondered why he didn't recognize me. a) had met b) met c) has met 11. I do not want to draw any conclusions now. But if he to persist I will fire him. a) continues b) will continue c) continued 271 MODULE 11 PEOPLE AND ORGANIZATION 12. How did you know that somebody your computer before you came into your room? a) was using b) has been using c) had been using 13. He . . . this company for several years when I began my career. a) has been managing b) had been managing c) was managing 14. You will not leave the office before five unless you everything. a) will not have finished b) will have finished c) have finished 272 A. UTYGINA Basic English of Economics 15. When he arrived in Birmingham in 1999 the English language was not a problem to him as he it for five years. a) have been studying b) had been studying c) was studying 16. He . . . to solve this problem several times. a) had tried b) has tried c) was trying 17. By the time you are back we . . . everything. a) have done b) do c) will have done 18. If he his job he will have to leave our city. a) will lose b) loses c) is losing 19. If you . . . any problems with our product we will be pleased to help you. a) had b) have c) will have 20. When . . . to Ukraine? a) have they come b) did they come c) they come 21. He . . . hard, that is why he is tired. a) had worked b) worked c) has worked 22. He to his personal stereo so he couldn't hear your words. a) listens b) was listeningc) had listened 23. While I . . . my best to solve your problem you were discussing some unimportant matter. a) have been doing b) was doing c) did 24. Our company . . . this product since 2000. a) has been producing b) had produced c) produces 25. We . . . a letter from our business partner. a) have just received b) just received c) had just received 26. 1 . . . € 800 so far. a) earned b) have earned c) will earn 27. It will be difficult for you to find a new job if you . a) will be fired b) are fired 273 c) fired A. UTYGINA Basic English of Economics 28. Do not believe him! He . . . a lie. a) tells fourth time b) is his tellinglaw firm . . . part c) toldin the Employment 29. It is the a) took b) has taken 30. Brown&Partners . . . the firm now and need c) had to hire takensecretaries and lawyers. a) expand b) are expanding c) expanded 274 MODULE 11 PEOPLE AND ORGANIZATION Speech and Discussion Ex.l. Discuss with your goupmates the possibility of taking early retirement. Which in your opinion is the best retirement age? Ex.2. Do you think that a redundancy payment can compensate job loss? If you were a manager of a big company would you try to do your best not to make your employees redundant? Ex.3. Study the following notice. Discuss with your groupmates the reasons which will force you to fire your employee. Notice These are the only ways that you can lose your job at this company: Employees who steal will be terminated. Anyone who contadicts the boss will be sacked. Salespeople who don't meet their targets will be fired. When business is bad, the laziest workers will be laid off. If the company goes bankrupt, everyone will be made redundant. If you don't like any of these rules, you're free to resign and find another job. + But if nothing goes wrong, you have a job for life and you can retire happily at the age of sixty. (From D. Evans. Business English Verbs, Penguin Quick Guides) Ex.4. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences 275 MODULE 11 PEOPLE AND ORGANIZATION into Ukrainian. Think of situations where you could use them. 1. Harry got the sack for taking time off without permission. 2. They were firing off questions at me from all sides. 276 A. UTYGINA Basic English of Economics 3. Don't worry if we have to close the shop. I have other irons in the fire. 4. Martin should have resigned his office this year, but he is staying on an extra year to keep the seat warm for you. 5. I have tried to reorganize the company, but it's hopeless. The game isn't worth the candle. Ex.5. Speak on the problem of unemployment and its effect on people. Ex.6. Comment on the following: «lf a man doesn't make new acquaintances as he advances through life, he will soon find himself left alone.» (S. Johnson) TEST 2 (MODULE rx) Choose the word or word combination to match the definition. 1. A sum of money given in addition to a salary. a) bonus b) wages c) motivation 2. To tell an employee that he/she must leave his/her job. a) to hire b) to employ c) to sack 3. A sum of money paid for professional or special services. a) wages b) fee c) salary 277 A. UTYGINA Basic English of Economics 4. Money or other benefits given in addition to a salary. a) compensation b) incentive c) wages 278 MODULE 11 PEOPLE AND ORGANIZATION 5. A monthly payment in exchange for work. a) interest b) salary c) dividend 6. To give employment to someone. a) to estimate b) to promote c) to hire 7. A person or company that provides job. a) employee b) employer c) businessman 8. The process of interviewing and choosing people to do a job. a) recruitment b) description c) evaluation 9. A list of all the people employed by a company, and the amount of money paid to each of them. a) pay-day b) payroll c) pay master 10. A person who is looking for a job. a) applicant b) jobseeker c) headhunter 11. A post to be filled by a new employee. a) job description b) vacancy c) employment 12. Money (in the form of wages or a salary or profit) received from work done. a) dividend b) interest c) income 279 MODULE 11 PEOPLE AND ORGANIZATION 13. A right offered to employees, to buy shares in the company where they work at a cheap price. a) bonus b) share option c) fringe benefit 14. A person who provides advice for pay. a) consultant b) co-worker c) executive 280 MODULE PRODUCTS, MARKETS AND 15. A compensation package for an executive leaving a company. a) golden hello b) golden parachute c) golden rule 16. To stop work, esp. because of age. a) to fire b) to hire c) to retire 17. To get money by working. a) to resign b) to earn c) to save 18. A payment made to an employee as a compensation for the loss of a job. a) golden good-buy b) remuneration c) redundancy payment 19. Examining how much money a job is worth and how much the person doing it should be paid. a) job analysis b) job evaluation 281 c) job security A. UTYGINA Basic English of Economics 20. A person who buys something from a shop, pays for a service or orders something from a company. a) supplier b) customer c) consumer Ill MARKETING LESSON 1 Text: Customers, Consumers and Clients Grammar: The Passive Voice (Simple) Terms to remember: customer safety consumer protection emerge (v) pass a law (v) consumer resale safeguard (v) consumerism 282 MODULE PRODUCTS, MARKETS AND protect (v) investigate (v) consumer taste safety market research client accountant agency norcyneub T0Bapy nocnyrn, KJ1ieHT, 3aMOBHHK cn0)KMBaq nepenpomamc rapaHTYBaTH (140Cb), advertising OXOPOHATH 6e3nerca 3&XHCT cri0)KHBaqa 3'RBJIHTHC51, BhHHKaTH npHiiMaTH 3aKOH KOHCK)MePU3M (pyx Ha 3aXHCT npaB C110)KHBaqa) 3aXHL1(aTH AOCJ1iA>KYBaTH, BHBqaTH CMaK cn0)KMBaqa 6e3neKa BHBqeHH51 (MO)KJIHBocereM) PHHKy; ÅOCJ1iaxceHHA PHHKY KJ1i€HT, 3aMOBHHK, [10KyneL1b npod)eciäH0i nocnyrn 6yxran•rep peKJ1aMHa arevmi$l Customers, Consumers, and Clients There are different ways to talk about people who buy things. Customers are individuals or organizations who buy things from other individuals, shops or organizations, pay for a service or order something from a company. Consumers are people who buy goods and services for their own use or consumption and not for resale. Consumers are now recognized as an important group — the government has passed laws to safeguard the interests of the consumer in relation to safety of goods, buying on credit, food labelling and much more. An organized movement (consumerism) for consumer protection has emerged in the last 40 years. Consumerism consists of all those activities that are undertaken to protect the rights of consumers in their dealings with business. There exist four basic rights of consumers: the right to safety, the right to be informed, the right to choose and the right to be heard. Manufacturers investigate consumer tastes using market research. 283 A. UTYGINA Basic English of Economics Clients are individuals or organizations who pay for services provided by a professional person or organization such as a lawyer, an accountant, a bank, advertising agency, etc. A business may refer to its regular customers as its customer base or client base. Exercises in Word Study Ex.l. Form verbs from the following nouns: consumer, protection, investigation, service, recognition, activity, manufacturer, choice, movement, customer. Ex.2. Give the English for: r10Kyne11b, cr10)KHBaq, nnaTHTH 3a nocnyry, CHO)KHBaHHfl, nepenpcmaxc, npuj:marru 3aKOH, OXOPOHflTH iHTepecH CHO)KHBaqa, 3axHCT npaB cn0)KHBaqa, CMaKH cn0)KHBaqa, AOCJ1iJVKeHHH PHHKY, KJ1iCHT, 6yxraJrrep, peKJ1aMHa areH11ifl, 6e3nerca. 284 MODULE 111 PRODUCTS, MARKETS AND MARKETING Ex.3. Match words from list A with words from list B that have a similar meaning. customer end user consumer producer protect activity study purchase buyer action safeguard select manufacturer investigate choose buy Ex.4. Find suitable opposites to the following words: similar, to sell, to reject, idleness, insignificant, producer. Ex.5. Match the nouns in the left hand column with the nouns in the right hand column and translate them into Ukrainian: choice consumerindustry products customer protection spending taste service mix base Ex.6. The words in the box frequently occur after «consumer». 285 MODULE 111 PRODUCTS, MARKETS AND priæ Index 286 Basic English of Economics A. UTYGINA 1) loans made to the public by banks, shops and businesses for 2) articles necessary for daily living, such as food, clothes, and 3) the average cost, published monthly, of a group of consumer goods, such as bread, milk, chicken, etc. in comparison to their past cost; 4) goods such as cars, furniture, refrigerators, televisions, etc. that last for a long time; 5) the situation of buying and selling goods for personal use, not for resale; 6) goods such as foods, drinks, newspapers, etc. that have a short life and need to be replaced often; 7) a period when consumers are spending a lot; 8) refusal by consumers to buy things from a country or a company that they disapprove of. Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below: 287 Basic English of Economics 1) a person or business who buys something from another person or business; 2) a person who buys and uses goods and services; 3) a customer of someone who provides a professional service; 4) an organized movement for consumer protection; 5) a sale of something again; 6) the condition of being free or protected from harm; 7) the study of what products and services customers might like to buy; 8) action taken against harm or loss, a defense; 9) all regular customers of a business; 10) the legal rights that people have when they buy something. 288 MODULE 111 PRODUCTS, MARKETS AND MARKETING Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. have the right to return faulty goods and demand a refund from the supplier. 2. Prices of . . . goods have risen by an average of 3% in the last 3 months. 3. A good hairdresser never lacks 4. Please serve the next . . . before answering the phone. of alcohol in that country is high. 6. 7. 8. 9. 10. 11. 12. The government . . . new legislation concerning health and safety in factories. The Consumers' Association . . . the rights of the consumer. We made money on . . . of our house. My prepares my tax returns every year. helped us design our products to sell better. She has good . . . in clothes. We . . . various towns before we decided where to buy a house. investigated, taste, market research, the resale, accountant, safeguards, has passed, the consumption, customer, clients, consumer, consumers. Ex.9. Fill in the missing prepositions. Consumer Protection Consumer protection means safeguarding the interests . . . the consumer. the growth . . . the number products ... offer, and the size 289 MODULE 111 PRODUCTS, MARKETS AND the companies producing and selling them, it has become much more difficult consumers to protect their own interests. Thus a movement . consumer protection has emerged the last 40 years the developed countries. The areas where consumer protection has been seen as most important have been the way goods and services have been described, labelled and advertised; the quality and safety . . . goods, buying credit and guarantees. (on (2), in (3), for (2), of (4), with) 290 English of Economics A. UTYGINA Basic Exercises in Comprehension Ex.l. Answer the following questions: 1. What do we call people who buy things from other individuals or shops, pay for service or order something from a company? 2. Who are consumers? 3. What movement has emerged in the last 40 years? 4. What are the four basic rights of consumers? 5. Who investigates consumer tastes and with what purpose? 6. Whom do we call «clients»? 7. Do you think that it is necessary to protect the rights of the consumers? Ex.2. What is the difference between: customers — consumers — clients Ex.3. Are the following statements true or false? True False I. If a company gets repeat customers, people who have bought their goods or services before buy them again 2. Consumer laws are designed to protect businesses from dissatisfied customers 3. When customers are not pleased with the goods or services that they have bought, you can refer to customer satisfaction 4. Customer data is the information that consumers need to decide what to buy 291 English of Economics 5. Consumer rights are the legal rights that people have when they buy something Ex.4. Sum up what the text says about: customers consumers and consumerism clients 292 MODULE 111 PRODUCTS, MARKETS AND MARKETING Grammar Revision The Passive Voice (Simple) 1. a) We use the Passive Voice in three main ways: •to describe a process •when the action is more important than who does it: The computer was repaired in 3 hours. •when we do not know, or do not want to say, who does the action: The letter was received a week ago. b) The agent (by . . .) is only used when it includes important information: America was discovered by Columbus in 1492. c) When you want to mention what the agent used in order to carry out an action, you use «with». The letter was written with my pen. 2. Form be +Past Participle Simple Present the letters are written Past the letters were written Future the letters will be written Ex.l. Change the following from active to passive. 1. The company manager increased my saläry last week. 2. We bought this car last Friday. 3. He paid for this service in cash. 4. We seldom undertake such activities to protect the consumers' rights. 5. We informed the customer of the delivery of his order. MODULE 111 PRODUCTS, MARKETS AND 6. The company increased the commission paid to agents. 7. Human Resources department recruits new staff every year. 8. Research and Development department developed several new products last year. 9. My company opened several subsidiaries in different locations. 10.Manufactures investigate consumer tastes. 11.Ford announced the loss of 4,000 jobs yesterday. 12.British Airlines forbids smoking during the flight. 167 MODULE 111 PRODUCTS, MARKETS AND A. UTYGINA Basic Ex.2. Complete the sentences using the correct passive (simple) form of the verbs in brackets. 1. He (not invite) to the conference if he doesn't present a report. 2. I (not pay) enough for the work I do. 3. A security system (install) in this laboratory next week. 4. Newspapers (deliver) every day except weekends. 5. The problem (solve) by the committee a week ago. 6. Taxes (reduce) in a few years. 7. The office (wash) every day. 8. The delegation (meet) at the airport. 9. Our working conditions (change) by new equipment. 10.The most important decisions usually (take) by the owners of a company. 1 1. Services in tourism (provide) by tourist companies. 12. When a private company (buy) by the state and (bring) into public sector, it is nationalized. Ex.3. Translate into English: l. Kono nocnyr Hauxoi KOM11aHii 6yno poum•rpeHe MHHynoro POKY. 2. 3. 4. 5. J li TOBaPH 3aB)KÅH KY11Y}0Tbc51 6. CMaKU cr10)KHBaqiB 6YÅYTb mocJ1iÅ)KYBarrncn Hall-IHM MapKeTHHrOBHM BimiJIOM. 7. 8. KJ1iewrar„f Hamoro 6aHKY 6YÅYTb 3anp0110H0BaHi 3HaYHi 3HH)KKH. nepenpomaxy. IIpaBa cn0>KHBaqa 3aXHLUæOTbCR mepxaB0}0. I-len 3aKOH npo 3aXHCT npaB C110)KHBaqiB 6YB npniiHATHii KiJ1bKa POKiB T0MY. I-IR areHUiHMH. 3aB)KÅH p03r10Bc10Å)KyeTbcfl peKJ1aMHHMH 1106YTOBi nocnyrn cnnaqYk0TbcR 3a A0110Mor0}0 nnacTHKOB0i KaPTKH. 295 English of Economics 9. AeKiJ1bKa 11PaUiBHUKiB Hau-10i 6YJ10 3BiJ1bHeHO 3a 06MaH 110KynuiB. 10. MH He MO)ICMO 110BipHTH Ball-IHM CJIOBaM, OCKiJ1bKH BCi Ball-li BHMoru 6YJIH 3aA0BoneHi. I I. CniJ1bHe nimr1PH€MCTBO 6YJ10 CTBOPeHO cBoeqacH0 i 3apa3 MH MaeM0 BeJIHKHä npu6YT0K. 12. flpoeKT 6YÅiBHHUTBa 11boro rorrenro 6YB 3aTBePÅ)KeHmPi Lue B 2000 poui. MARKETING Speech and Discussion Ex.l. Speak about different ways of talking about people who buy things. Ex.2. Think of situations where it is necessary to protect the rights of a consumer and discuss them with your groupmates. Ex.3. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. l . Don't believe him! He is a slippery customer. 2. I don't want to go to law, but I shall have to if he doesn't offer me fair compensation. 3. When you are being interviewed for a job, you must weigh your words before answering the questions they put to you. 4. Don't waste words on that man; he isn't interested in our complaint. 5. The losses you made on the Stock Exchange last year should have taught you a lesson. Ex.4. Identify the type of a customer yqu are. My habits as a consumer 296 MODULE 111 PRODUCTS, MARKETS AND 1. It is embarrassing to leave a shop without having bought anything, especially if you had been well advised by the shopassistant. I don't agree I agree 2. Things that cost little are of bad I quality.don't agree O I agree CJ 3. When buying something it is recommendable to follow the advice of CJthe shop-assistant, because I don't he agree is the expert.[3 I agree 4. Looking for something particular in many different shops takes too much time. I don't agree I agree O 297 Basic English of Economics A. UTYGINA 5. I am getting mad when I discover something smashing shortly after I have bought something similar that is less nice. I don't agree C] I agree 6. If you happen to see an advertisement that appeals to you very much, don't hesitate to buy what is offered. I agree O I don't agree 7. A shop-assistant cannot afford to deceive the consumer. If he says that an article ran out of stock, it is true. I agree C] I don't agree O 8. It may happen that something appeals to you at first glance but you have not got enough money to buy it. Going shopping with friends solves that problem: simply borrow the money from them. I agree C] I don't agree C] Now check your total scores and identify your type 020 You are a very clever purchaser. You don't get trapped when going shopping. But don't be suspicious of literally everything that is offered to you. Try to relax. 30-50 Mostly, you think twice before you buy something. That's good. But be careful: now and then you are in the mood of purchasing without thinking at all. 50 and more 298 Basic English of Economics You are the ideal victim of all advertisers and sellers. NO doubt, you believe everything they promise and say. Stop getting trapped any longer. Check thoroughly if you really need what you are about to buy. Be more skeptical when shopping. Or are you a millionaire? Ex.5. Comment on: «Do not fear when your enemies criticize you. Beware when they applaud.» (Vo Dong Giang) 299 MODULE 111 PRODUCTS, MARKETS AND MARKETING LESSON 2 Text: Markets and Market Orientation Grammar: The Passive Voice (Continuous) Terms to remember: commodity market competitor/rival competition low-key target market indication market share market leader market segment market niche dominate (v) TOBapHuVi PHHOK KOHKypeHT KOHKypeHUiR CTPHMaHHä UiJ1bOBHVf PHHOK 03HaKa, cBiÅqeHHq•, IIOKUHHK qacTKa PHHKY KOMnaHiq, mca 3aMMae npoBiAHe CTaHOBH1-qe Ha pnHKY cerMeHT PHHKY PHHKOBa Hima, HeBeJIHKUM cerMeHT PHHKY 36YTY neBHoro T0Bapy 3aBOJIOAiBaTH, UiJIKOM norJIHHarrn•, naHYBarru, BOJ10Aap10BaTH marketer/marketeer Aigq pm-IKY, cneuianicT, npomaBeL1b respond (v) BiA110Bimarrn•, pearyBaTH, BiA1'YKYBarruc51 (Ha LILOCb) marketdriven/marketled/marketoriented 3 PHHKOBOIO opieHTauiero 300 MOD ULE 111 PROD UCTS, approach desire niÅXiA COQ 6axaHH51; nparHeHHq•, 1106axaHH R 301 Basic English of Economics A. UTYGINA Market and market orientation A market for a product is the people or organizations who buy it or may buy it, or an area where it is sold. There exist different types of markets: street markets, shops and supermarkets, markets for services (e.g. restaurants), financial markets, commodity markets (e.g. coffee, tin). Companies or products in the same market are competitors or rivals. They compete with each other to sell more, be more successful, etc. when their competition is strong, you can say that it is intense, stiff, fierce or tough. If not, it may be described as lowkey. A company's or product's target market is a group of consumers a company aims to sell its products to, for example children, housewives, fishermen, etc. As an indication for the success of a business market share is often used which is the proportion of sales that a company or a product has in a particular market. The market leader is the company or product with the biggest share. A firm usually focuses its attention on a market segment. Market segment is the part of a market consisting of consumers with similar characteristics. Ways in which a market might be segmented include age, income, lifestyle, geographical location. A market niche is a small, specific segment of the market, often dominated by small firms selling some kind of goods. Marketers often talk about market orientation: the fact that everything they do is designed to meet the needs of the market. Companies quick to respond to the needs of a market are market-driven, market-led or market-oriented. A marketoriented approach to developing a product is one which puts the 302 Basic English of Economics desires Of the consumer at the centre of the decision about what to produce. To make decisions about products companies do a market research which is the collection of information on markets, products and consumers; on what people need, want, and buy; how and when they buy and why they buy one thing rather than another. 303 MODULE 111 PRODUCTS, MARKETS AND MARKETING Exercises in Word Study Ex.l. Form nouns from the following verbs: produce, organize, exist, differ, indicate, characterize, locate, dominate, decide, collect, compete. Ex.2. The following words can be used in more than one way. Underline the correct part of speech for each word as it is used in the text. 1. 2. 3. 4. 5. 6. 7. 8. market aim share desire produce research segment need a) noun a) noun a) noun a) noun a) noun a) noun a) noun a) noun b) verb b) verb b) verb b) verb b) verb b) verb b) verb b) verb Ex.3. Give the English for: TOBapHHii PHHOK, UiJ1bOBHii PHHOK, rpyna cr10XMBaqiB, PHHOK, qacT1•ca PHHKY, cerrvfeHT pm-IKY, npu6YT0k, PHHKOBa Hill-la, PHHKOBHÄ ninxiA, CTBOP}OBaTM np0AYKT, PHHKOBa opi€HTauiH, KOHKypeHT. Ex.4. Match words from list A with words from list B that have a similar meaning: Jtough share ? respond market-driven income < desire indication rival output 2target 2 homemaker reply wish 304 MODULE 111 PRODUCTS, housewife earnings 3market-led segment fierce product Ompetitor 305 Basic English of Economics A. UTYGINA Ex.5. Find suitable opposites to the following words: failure, part, whole, slow, general, low-key. Ex.6. Fill in suitable nouns to form two-word expressions. Translate these expressions into Ukrainian. 1. orientation 2. share 3. 4. target segment 5. 6. commodity niche 7. free 8. economy 9. price 10. 11. reform 12. low-key -fierce Ex.7. Study the collocations below. Check any unknown words in a dictionary and translate them into Ukrainian. 306 Basic English of Economics booming, depressed, expanding, flat, growing, health niche slu •sh s ecialist stron weak market Ex.8. Match the word combinations in the left hand column with the verbs in the right hand column and translate them into Ukrainian: market leader increase lose market price carry out do market research charge pay market share become remain 307 MODULE 111 PRODUCTS, MARKETS AND MARKETING Ex.9. The words in the box frequently occur after «market». leader share segment resea price market economytrend penetrationforces Find combinations that mean: 1) the company that sells the largest amount of a specific commodity in a particular area; the brand or make of goods that sells the most; 2) the price of a raw material, product, service, etc. that is charged in a free or competitive market; 3) study carried out by a company before launching a new product, into the needs, lifestyles, incomes, etc. of potential buyers; 4) the percentage of the total sales of a certain product in a particular area or country obtained by one company; 5) that part of a market which consists of consumers with similar characteristics; 6) a pattern or change in buying and selling activities; 7) the act of obtaining a larger market share by increasing advertising, promotion, etc. 308 MODULE 111 PRODUCTS, 8) an economic system in which individuals and firms are free to enter and leave markets at will; 9) changes a government makes to an economy, so that it becomes more like a market economy; 10)the way a market economy makes sellers produce what people want, at prices they are willing to pay. 309 Basic English of Economics A. UTYGINA Ex.10. Study the following diagram and fill in the blank8 with suitable words from the diagram. 1. Companies must be able to compete in the market 2. He was forced to sell below the current market to make a quick sale. 3. Our new product was well received in the market 310 Basic English of Economics 4. The price of petrol is influenced by market 5. In the late 2000s, Internet use was doubling every 100 days. Market ... was incredible. 6. Women are an important market ... for Volvo. 7. Among UK supermarkets, Tesco has the highest market 8. Tesco is the market ... among UK supermarkets as it sells more than any of the other chains. 311 UTYGINA Basic English of Economics Ex.ll. The following diagram shows some very commonly used verbs with «a market». Study the diagram, consult your dictionary and translate these word combinations into Ukrainian. Make up sentences with them. Ex.12. Use the correct form of the words in brackets to complete the sentences. l. Asian films do not export well: Asian movies barely (abandon, penetrate) the European market. 2. In the 1970s, Kodak photography market, until then by Polaroid. 312 (enter, leave) the instant (dominate, abandon) MODULE 111 PRODUCTS, MARKETS AND MARKETING 3. In the 1940s, MGM (get out, monopolize) the market on film musicals, but by the late 1950s, Warner Bros had also started buying film rights to musicals. 4. This company tried to fix diamond prices and to (enter, corner) the diamond market, (drive act, monopolize) all competitors. A. Ex.13. Look at the words and phrases in the box. Match the words with the correct definition from the list below: 1) a group of consumers for whom a business has designed a product and marketing strategy; 2) the bond markets, stock markets, etc. that accept money and turn it into equity instruments; 3) a course of action, a way of handling a situation; 4) to have the most important place or great influence; to have or use power or command over; 5) a company that produces goods that it knows will sell because buyers have said that they need them; 6) a large sell-service store offering food and general household items; 7) the activity of trying to sell more and be more successful. 313 UTYGINA Basic English of Economics Ex.14. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1 helped us design our products to sell better. 2. Sony is in hi-fi equipment. 3. The computer company has a 25% 4. Companies need to produce new products to keep up with 5. He was forced to sell below the current to make a quick sale. 6. A ... approach to developing a product is one which puts the desires of the consumer at the centre of the decision about what to produce. 7. As in many other Japanese industries, at home, Toyota, is not the strongest exporter. 8. Gillette . . . the business in the USA. is one where things are bought and sold freely and not under government control. 314 MODULE 111 PRODUCTS, MARKETS AND MARKETING 10. My company has its own .. ., selling to fishermen and hunters. 11. Women are an important . . . for Volvo. 12. Our primary . . . is 20 to 30-year-old women. 13. Increased is good for customers and bad for producers. 14. Changes in the exchange rate can make a company more or less compe itron, target market, a market economy, dominates, måket-oriented, markå price, market*ends, markei share, the marketheæ (2), mark& research, markethiche, market s4rnent, chl etitive. Ex.l . Fill in the missing prepositions. most consumer goods, producers have become marketoriented {o. growth h." competition and the increasing knowledge consumers . what is available. Products, such as cookers, cars, televisions, have to be attractive . the customer to sell competitors as all the products now perform their basic functions a similar way. Service industries like banking and insurance have also become more market-driven. (against, to, about, of, in (2), because of, for) Exercises in Comprehension Ex.l. Answer the following questions: 1. 2. 3. 4. 5. What do we call a market for a product? What do we call companies which compete with each other? What kinds of competition do you know? What types of markets do you know? What is a target market? 315 UTYGINA Basic English of Economics 6. What is a market share? 7. When can the company be called the market leader? 8. What is a market niche? 9. What companies are market-driven? 10. What do companies do a market research for? A. Ex.2. Sum up what the text says about: different types of markets target market market share, market segment, market niche • market-oriented approach Grammar Revision Form The Passive Voice (Continuous) be + Past Participle Continuous the letter is being written the letter was being written Present Past Future Ex.l. Complete the sentences using the correct passive (continuous) form of the verbs in brackets. 1. I can do nothing when I know I (watch). 2. Close the door please, the matter just (discuss). 3. We watched how this information (collect). 4. President's speech (translate) for the foreign guests. 5. When I came to my native town two years ago, this supermarket still (build). 316 MODULE 111 PRODUCTS, MARKETS AND MARKETING 6. When my father was a worker at this plant this work still (do) by hand. 7. My car (repair) now. 8. Don't enter the room. My friend (interview) there. 9. The runways (lengthen) at all the main airports. 10. My proposal just (consider) when I came. 1 1. _My office (redecorate) when I moved there. 12. I couldn't give you our daily program, it still (work out). Ex.2. Open the brackets, using the Passive Voice. I. As I entered the office, I had the feeling that I (watch). 2. 3. 4. 5. 6. 7. A lot ofnew experiments (make) in my husband's laboratory now. I am sure a lot of questions (ask) when I finish speaking. This report (send) at once. This money (spend) on market research next year. Service (include) in the bill. Don't enter without invitation. A very important problem (discuss). 8. The program (work out) many years ago, but it still (use) with great success. 9. When the market (segment) last? 10. Market share often (use) as an indication for the success of a business. I l. The new method (show) to the young specialist today. 12. If we hurry with the work, it (spoil). Ex.3. Translate into English. 1. KOHTPaKT caMe TOAi nimnucyBann, KOJIH MH npHiXaJIH. 2. JIHCTH 3apa3 apYKY}0TbcH. 3. Flpo Moro HOBHM eKCIEPHMeHT Cbor0AHi 6araT0 roBOPflTb, MH He TaK? 317 UTYGINA Basic English of Economics 4. 3apa3 BHKOHyeTbCA MiM YJ1}06neHHii KOHL1ePT. FlocnyxaWre Moro, 6YÅb-nacKa. 5. 6. BiH He BHABUB Bej1HKOro iHTepecy, KOJIM ue nurraHH51 06roB0PIOBUIOCb. BiH YBiä1110B AO 3any B ereMpflBi i He 0Åpa3Y 3p03YMiB, d)iJ1bM mervf0HcrrpyBaBcq. 7. A 3ÅHBOBaHHä, 1110 Moro cnyxa}0Tb 3 eraKoyo 3auiKaBneHiCTK). 8. BOHa BiAHYBana, LILO Ha Hei AHBJ151TbCfl. 9. Cb01'OÅHi 11POBOÅHTbCA ÅOCJ1iJViCHHS1 PHHKY Toro, 11106 3P03YMiTM, 1.110 norrpi6H0 cn0)KHBaqy. 10. Konn IIPHÜIIIOB y cynepMaprceT, TaM nponaBaJIHc51 BiAeoKaceTH 3 (l)iJ1bMarv1H Moro YJ1106neHoro pemcucepa. 11. H0BHii npoeKT HHHi pogrJ1}1Aae.Tbcfl r Panoro AHPeKTOPiB. 12. CaMe 3apa3 BCi 3aMOBneHHS1 AOcrraBJIS110TbCS1 KJ1iCHrraM Hat11HM Kyp'epoM. 318 UTYGINA A. Basic English of Economics Speech and Discussion Ex.l. Think about the following: «Usually a great fortune and success in business come not only because of luck and happy circumstances in somebody's life, but due to thinking ahead, to the knowledge of people's psychology and market». Ex.2. Imagine you are setting up your own business. What target market would you choose? Why? Ex.3. Discuss with your groupmates the situation in the Ukrainian consumer markets. Ex.4. Do you think that Ukraine can be called a marketoriented country? Prove your point of view. Ex.5. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. I. We can ask any price we like for our product; we have a captive market. 2. Once a government has cornered the market, as for instance in gas or electricity, there is always a huge rise in price. 3. The fees you are charging are so high that you are in danger of pricing yourself out of the market. 4. The dishonest advertising agencies will spoil the market for the good ones. 319 UTYGINA Basic English of Economics 5. We are not in the market for diamonds at present. Ex.6. Comment on: «Necessity never made a good bargain» (B. Franklin) 320 MODULE 111 PRODUCTS, MARKETS AND MARKETING LESSON 3 Text: Products, Goods and Services Grammar: The Passive Voice (Perfect). Progress Test Il (Passive Voice) Terms to remember: fast-moving CllO)KHBHi T0Bapu, TOBapH UlHPOKOro B)KHTKY TOBaPH goods consumer BHP06HHqoro npH3HaqeHHfl product consumer products industrial products convenience goods TOBapH 110BC51KÅeHHOro norTHTY TOBapH nonepeAHboro BH60py T0Bapu iM11YJ1bCHoro nor-IHTY' shopping goods impulse TOBapH OC06JIHBOro 11011HTY, goods specialty goods npeCTH>KHi T0Bapm Ha BHXOÅi at the checkout goods white brown goods TaKi TOBapn, AK npaJ1bHi MaUIHHU, X0110AHJ1bHHKH TaKi TOBaPH, AK ereneBi30pH, BHCOKOTeXHonoriMHe 06J1aAHaHHH merchandise succeed (v) TOBap(H) JlocflraTH ycnixiB, rlP011BiTaTH market (a product) (v) 3HaXOJLHTH PHHOK 36YTy•, introduce/launch (a product) on to the market (v) product life cycle 111)0AYKT•, BHPi6; np0ÅYKuiA xoA0Bi cr10)KMBt1i TOBapn riponaBaTH BliPOBaJIHTH np0JIYKT Ha PHHKY UHKJI T0Bapy 321 Basic English of Economics UTYGINA A. withdraw (v) BHJ1yqa•ru; aHYJ1fOBaTH star niAep Ha PHHKY, T0Bap- 111BHÅKO 3pocTac money spinner TOBap, mo Aac BenuKi TIPH6YTKH cash cow BHCOKor1PH6YTKOBHii a60 6i3Hec loss leader TOBap, AKHii 11p0Aa€Tbcn 3a T0Bap 3HH)KeHMMH UiHaMH L1106 norcynun Toro, npHBa6J1}0BaTH persuade (v) nepeK0HYBarru, CXHJIATH, YMOBJI%TH profitable npn6YTKOBHM, BnriÅHMM•, peHrra6e11bHuä HerlPH6YTKOBUü mcoro Tpe6a r1036YTnc51 dog TOBap, Products, Goods and Services The exchanging business world. 3 2 2 of products makes the MODULE 111 PRODUCTS, MARKETS AND MARKET A product is something that is produced or manufactured and sold, often in large numbers. Products are sometimes referred to as goods for example in the expression fastmoving consumer goods, or FMCG. Products may be grouped into two general categories: consumer and industrial. Consumer products are classified as convenience, shopping, impulse or specialty goods. Convenience goods are mostly cheap products which people use regularly and buy frequently with little effort (food, tobacco products). Shopping goods are those products that the consumer buys only after comparing value, quality, and price from a variety of sellers. 323 MODULE 111 PRODUCTS, MARKETS AND MARKETING Impulse goods are bought on impulse, often at the checkout, and include products such as chewing gum, chocolate bars, magazines, etc. Specialty goods have an outstanding position in the market; they are mostly represented by certain brands. Industrial goods are products used in the production of other products for resale purposes. These goods include materials, equipment, parts, and services. We usually call white goods such things as washing machines and refrigerators, ovens and hobs and brown goods such things as televisions and hi-fi equipment. Goods are also referred to as merchandise. Merchandising is used to refer to the way that shops and businesses organize the sale of their products, for example the way that they are displayed and the prices that are chosen. Services are activities such as banking or tourism that contribute to the economy but which may not directly involve manufacturing. Services may be referred to informally as products. For firms to succeed in business, they must continue to develop and market products. New products are introduced or launched onto the market. Products have a life cycle. The stages of the product life cycle are: introduction, growth, maturity and decline. A product that a company no longer wants to make available is withdrawn from the market. A star is a product which is a leader in a booming market. A product generating a lot of profit is a money spinner or a cash cow. A loss leader is a product sold very cheaply in order to attract customers who will then, it is hoped, be persuaded to buy 324 MODULE 111 PRODUCTS, MARKETS AND MARKETING profitable ones. Loss-leaders aim to get people into the shops, where the strategic presentation of goods can influence their decisions about which products to buy. A dog is a product that is in a market that is stagnant, shrinking or weak. Its market share is small or going down. 325 English of Economics A. UTYGINA Basic Exercises in Word Study Ex.l. Form nouns from the following adjectives: profitable, attractive, consumer, industrial, expressive, active, productive. Ex.2. Give the English for: XOAOBi CllO)KHBHi TOBaPH, cn0>KHBL1i TOBaPH mnp0Koro B)KHTKy•, TOBaPH BHP06HHqoro npM3HaqeHHq•, TOBapu 110BCHKÅeHHoro nonvmy•, TOBapn nonepeAHboro BH60py; T0Bapm oc06JIMBoro nonwry•, 3HaXOAHTH PHHOK 36YTY T0Bapy; )Knrrr€BHii LIHKJI TOBapy; BHJ1yqaTH TOBap 3 pHHKy•, BliPOBaAHTH npoAYKT Ha PHHKy•, BUCOKOnpn6YTK0BHM TOBap; mocwru ycnixiB B 6i3Heci, TOBaPH iM11YJ1bcHoro nor1MTy•, HenpH6YTK0B1dM TOBap, mcoro Tpe6a n036yrncx, 3aCTiäHnä PHHOK. Ex.3. Match words from list A with words from list B that have a similar meaning. goods produce beneficial merchandise profitable manufacture appeal to retract cash cow 8 launch money spinner introduce r. attract persuade z withdraw Oconvince 326 English of Economics Ex.4. Find suitable opposites to the following words and phrases: profit, loss leader, to introduce (a product), harmful, slowmoving goods, to fail. 327 111 PRODUCTS, MARKETS AND MARKETING MODULE Ex.5. Match the nouns in the left-hand column with the adjectives in the right-hand column: commercial consumer goodsfinancial free intermediary servicestraining acceptable advertised capital durable fancy impulse slow- welfare competitive moving Ex.6. Give synonyms to «Products». Ex.7. The words in the box frequently occur before «goods». consumer perishable brown impulse goods free duty- 328 Basic English of Economics Find combinations that mean: l) items created to be used in everyday life, e.g. food, clothes, magazines, bicycles, toys; 2) items such as television sets and radios; 3) items such as refrigerators and washing machines, so called because they are made of white painted metal; 4) goods such as cars, furniture, refrigerators, televisions, etc. that last for a fairly long time; 5) expensive items that are bought from choice and not necessity; 6) goods that can be imported, usually in limited quantities, without customs duties; 7) goods, esp. food, that can go bad or decay quickly; 8) goods that are bought on impulse. Ex.8. Study the collocations below. Check any unknown words in a dictionary and translate them into Ukrainian. bring out, discontinue, improve, introduce, launch, modi take offthe mark u e withdraw a product Ex.9. Look at the words and phrases in the box. Match them with the correct definition from the list below: 329 Basic English of Economics manufacture noneyp/hnåo;s aeeåand/&e loss leader proqC;mfandß/hgwithdra 330 111 PRODUCTS, MARKETS AND MODULE MARKETING 1) the idea that the sale of a product goes through 4 phases: introduction, growth, maturity and decline; 2) something that earns a lot of money; 3) a product sold at a loss to encourage trade; 4) bringing in more money than is spent; 5) to take something back; 6) the job that an organization does; 7) to make goods to sell from raw materials; 8) goods for sale; 9) slow-selling goods in stagnant markets; 10) the way that shops and businesses organize the sale of their products. Ex.10. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. The book could be a real 2. Soap, toothpaste, batteries and light bulbs are all consumer goods. 3. You are welcome to examine before buying. 4. Shops use . . . to attract customers. 5. This deal should be highly . . . . 6. Fashion goods have a short 7. These goods were . in France. 8. The popularity of home entertainment will be maintained with sales of . . . such as televisions and hi-fi equipment. 9. In Great Britain supermarkets sometimes sell top brands below cost as . 10. Trained staff is trying . . . customers to spend far more. 331 111 PRODUCTS, MARKETS AND 11. Consumers buy a lot of . . . at Christmas time. 332 MODULE 111 PRODUCTS, MARKETS AND MARKETING UTYGINA A. Ex.11. These words are often confused: to succeed — to manage — to cope t to succeed — to accomplish a task or reach a goal; to do well in life to manage — to struggle but succeed at doing something to cope — to face difficulties and try to overcome them. Complete these sentences using the correct form of one of the words above. Make sentences of your own to show that you understand the difference in their meaning. 1. 2. 3. 4. She has . in business and is now a millionaire. The test was difficult but he to do well. He to carry the heavy suitcase into the house alone. He .12, with the pain anclfinally got well again. 5. Unfortunately I didn't . . . to pass the exam. 6. Not many of us . .. in achieving our ambitions. 7. If her business . she will become a rich woman. 8. He . in passing his final exam. 9. He can't n. with this difficult task, so he is going to ask you to help him. 10. She . to achieve good results in a short space of time. Ex.12. Build your vocabulary. Learn phrasal verbs for business! to roll something out — to introduce a new product, service or technology by gradually making it available to more people. 333 Basic English of Economics Read these sentences carefully and translate them into Ukrainian. 1. The airline will roll out its new passenger jet in May. 2. They are able to roll new products out very quickly. 3. They will introduce the clothing into 84 stores before rolling it out across the chain. 4. Pl'he system will be launched in London and then rolled out across Great Britain. 5. The company rolled out its new product last month. 6. The service will be rolled out commercially all across Japan. 7. Before rolling out a new product nationally, the company conducts detailed tests. 8. We plan to try out the system here and then roll it out to other regions. 9. The group rolled its new car out on Monday. 10. The new phones will start to roll out at the end of the year. Exercises in Comprehension Ex.l. Answer the following questions: 1. What makes the business world? 2. How can a product be characterized? 3. What two general categories may products be grouped into? 4. What do we call such things as washing machines and refrigerators? 5. Can brown goods be also referred to as merchandise? 6. What are services? 334 MODULE 111 PRODUCTS, MARKETS AND MARKETING 7. If a product generates a lot of profit is it a money spinner or a loss leader? 8. What purposes is a loss leader used for? 9. Why must firms introduce new products? Ex.2. Find in the text the correct term for the definition and write it in the space provided. 1. Products calledare products that consumers want to purchase frequently with a minimum of effort. 2. Products that have a special attraction to consumers who are willing to go out of their way to obtain them are called 3. Products known asare products that consumers are unaware of, haven't necessarily thought of buying. 4. Consumers buyonly after comparing value, quality, and price from a variety of sellers. Ex.3. Sum up what you remember about: products and services; different kinds of goods. 335 Basic English of Economics A. I-ATYGINÅ Grammar Revision Form The Passive Voice (Perfect) be + Past Participle Perfect the letter has been written the letter had been written the letter will have been written Present Past Futu re Ex.l. Complete the sentences using the correct passive (perfect) form o 1. A lot of new compani open m 0 1 2. We didn't know that he (not invite). 3. The construction of our new office ef 4. He went to London last ear 4 Åe no e o v r since. 5. I wondered why her chil o teac any forel anguage. 6. The instructions just (give) 7. He didn't follow the advice he 8. I realized that the letter (lose). 9. The answers to all business letters write ong e ore the end of the working day 11. The workto) he comes back to the office. 12. I wondered whether the product alre d (withdraw) from the market. Siv o•ce. 336 Basic English of Economics 1. This new product much 2. Those papers (not look through) yet. 3. Several contracts (sign) next week. 4. When I came, the problem (not settle) y t. 5. The letter still (translate). 6. The list of applicants (make) before I came. 7. Nothing (hear) of her since she left Kyiv. e this complaint about a bad quality. 337 MODULE 111 PRODUCTS, MARKETS AND MARKETING 9. A new cosmetic line (launch) onto the marke by the end of GRAMMAR PROGRESS TEST 11 (PASSIVE VOICE) Ex.l. Choose the correct answers. 1. 2. 3. 4. He knew why he was chosen/had been chosen. He was shocked/had been shocked by his boss's attitude. We are just sent/have just been sent new information. Everything will be done/will have been done by the end of the week. 338 MODULE 111 PRODUCTS, MARKETS AND MARKETING 5. He is interviewed/is being interviewed now. 6. My application is still considered/is still being considered by the managers. 339 Basic English of Economics A. UTYGINÅ 7. The letters has just been brought/have just been brought. 8. He explained that a new job was offered/had been offered to him in February. 9. She was never made/has never been made such an exciting proposal. 10. My computer is repaired/is being repaired now. 11. This cheque was signed/has been signed by the manager an hour ago. 12. Negotiations will have been held/will be held in Kyiv next v.reek. 13. Prices for oil had been increased/have been increased again. 14. Our company was founded/has been founded in 1990. 15. Extra payments are given/are being given to employees with initiative once a month. Ex.2. Open the brackets, using the Passive Voice. 1. Payment (make) in the local bank last week. 2. Special training (give) to new employees in our company. 3. Taxes (raise) now. 4. The project just (complete). 5. This new product (develop) by the end of the month. 6. A lot of the ideas for new products (provide) by customers. 7. My friend just (promote). 8. A decision already (make) when he came. 9. Every product (check) for quality. 10. Nothing (do) since we left the office. 340 Basic English of Economics 11.The first branch of our bank (open) in 2000. 12.New marketing strategy (develop) now. 13.1 (ask) to do a lot of extra work at the moment. 14.Most of the top managers (fire) after the takeover. 15. The company's German subsidiary (sell) by the end ofthe year. 341 MODULE 111 PRODUCTS, MARKETS AND MARKETING Speech and Discussion Ex.l. Describe what a product is and how products are classified. Ex.2. What is the difference between goods and services? Give some familiar examples of each. Ex.3. Think about the following: «We buy many products that we don't need. This shows that we are being manipulated by large, evil corporations». Ex.4. Speak about the importance of product knowledge for sales staff. Ex.5. Discuss with your groupmates what firms should do to succeed in business. Ex.6. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. My manager has given me yeoman service for many years. I shall be sorry to lose him. 2. If you want to get to the top of the ladder, you must work like a demon. 3. I would like the job he is advertising. When you see him tomorrow, can you put in a good word for me? 4. You can rely on my promise, even though it is not in writing. My word is my bond. 342 MODULE 111 PRODUCTS, MARKETS AND MARKETING 5. At the interview, Jack played his cards well by trying to show how he could be useful to the company. Ex.7. Comment on the proverb: you wish to know what a man is, place him in authority». 343 Basic English of Economics A. LATYGINA LESSON 4 Text: Marketing Grammar: The Sequence of Tenses Terms to remember: driving force pytL1iäHa CHJ1a involve (v) MiCTMTH B c06i, Ma-rm Ha YBa3i demand nonHT, noTpe6a appropriate BiÅfl0BiÅHHii achieve (v) AOcqraTH, ycniL11H0 BHKOHYBaTH objective MeTa, 3aBnaHHS1 marketing strategy cTpaTeriq MapKeTHHry take into consideration (v) 6paTH no YBarH (bopMyna MapKe•ruwy, marketing mix KOMnneKC MapKeTHHry promotion support reliability charge (v) distribution package (v) cr1PH%HH51 y np0Aaxy (T0Bapy) niATpHMKa, nor10Mora HaAiÄHiCTb npH3HaqaTH, BHMaraTH nnaTY p03110Åin•, por3110BcE0AxeHHq•, p03MiuxeHHn•, 36YT naKYBarrm Marketing In recent years marketing has become a driving force in most companies. Marketing involv g and understanding a e e order to ompany to provide customer demand in the most appropriate products ar)d services so as to make a profit. 344 Basic English of Economics A company's to achieving its marketing objectives is called marketing strategy. A marketing strategy includes the following: • analysis of the wider business environment; of target markets for new products; 345 analysis MODULE 111 PRODUCTS, MARKETS AND MARKETING • sales goals; the marketing budget; • elements of the marketing mix. The various factors a company must take into consideration when developing its marketing objectives are referred to as marketing mix. The marketing mix is often summarized as the socalled four P 's: product, price, place, promotion: what to sell, to whom, where, and with what support. Some writers would add fifth «P»: packaging. (The importance of packaging is often uh*thhteä•, it attracts the buyer's attention, it describes the contents and it also protects the product). There is even a sixth «P»: people. (This refers to the knowledge, skills and personality of the staff who come into contact with the customer.) Each of the elements plays a vital role in the success or failure of a business operation. Product can be defined as goods or service that you are marketing and includes its design, quality and reliability. Price refers to how much money a company charges for its products. The marketing view of pricing involves considering the value of a product, the volume of sales required. Place refers to distribution, that is, how and where the product is made available to customers. Promotion means presenting the product to the customer. Promotion involves considering the packaging and presentation of the product, its image, the product name, advertising. A company that believes in marketing is forward-thinking and doesn't rest on its past achievements. It must strengths and weaknesses as well as the opportunities and threats it faces in the market (remember the letters: «SWOT»). 346 Basic English of Economics A. I-ATYGINA Exercises in Word Study Ex.2. The following words can be used in more than one way. Underline the correct part of speech for each word as it is used in the text. b) verb b) verb b) verb b) verb 5. charge ah a) noun a) noun a) noun a) noun a) noun 6. view 7. value coo 8. name a) noun a) noun a) noun b) verb b) verb b) verb 1. demand 0b 2. approach 3. place 4. support b) verb Ex.3. Give the English for: KY11iBeJ1bHHä nonm•, mocqraTH MeTW, cTpaTeriq MapKeTHHry•, 6paTH no YBarH pi3Hi WTOPW, (bopMYJ1a MapKeTMHry•, nimrpHMKa•, *KiCTb Ta HamiÄHiCTb', 06cqr npomaxy•, cnpHHHHR y np0Aaxy (T0Bapy); naKYBaHH51 T0Bapy; pew-rarvta, py111iVIHa CHJ1a. Ex.4. Match words from list A with words from list B that have a similar meaning: involve cost appropriate achieve S' supply A objective 6 empowerQSOA 347 Basic English of Economics t support assistance enable k aim providereach *price suitable include 348 MODULE 111 PRODUCTS, MARKETS AND MARKETING Ex.5. Find suitable opposites to the following words: to understand, appropriate, to fail, to provide, identical, inaccessible. Ex.6. Match the nouns in the left hand column with the nouns in the right hand column. strategy environment distributiondepartment mix promotionplan objectives channels marketing costs company system network campaign Ex.7. Replace each definition with a single word relating to marketing mix: 1) the item made for 2) how much it will 3) where it will be 4) what publicity it sale cost sold will g Ex.8. Study the collocations below. Check any unknown words in a dictionary andv translate them into 349 MODULE 111 PRODUCTS, MARKETS AND MARKETING a) Ukrainian. b) agree o to, a Ive at, bring own increase, ower, p h up, put up, rarSe, reduce, set, work out fix 350 a price Basic English of Economics Find combinations that mean: 1) the combination of factors that influence sales and can be controlled by a company. These include product, pricing, promotion and place; 2) a detailed report that shows how a company or a department will maintain and improve sales in a certain area; 3) the combination of factors that affect a company's sales in a particular area or country. These factors include changes in government policy, in people's levels of income, the development of new technology or transport systems and the activity of rival firms; 4) a detailed inspection of the strengths and weaknesses of the marketing activities of an organization; 5) a company's approach to achieving its marketing objectives; 6) the business philosophy that involves the entire organization in the process of satisfying customers' needs while achieving the organization's goals; 7) the general and specific aims which a firm sets for itself in selling its products. Ex.10. Look at the words in the box. Match them with the correct definition from the list below: 351 Basic English of Economics value demand ob.Jec&e charge /QöCP marketing distribution 9100 352 MODULE 111 PRODUCTS, MARKETS AND MARKETING 1) the desire of consumers to obtain goods and services; 2) an aim or target; 3) advertising or otner activity intended to increase the sales of a product; 4) the movement of goods to places where they can be sold; 5) the actions of identifying, satisfying and increasing the buyer's demand for a company's products; 6) the amount of money for which something can be bought or sold; 7) to put a price on; to ask for payment from; 8) correct, suitable; 9) the worth of something in terms of the money or goods for which it can be exchanged. Ex.ll. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1 * for reliable cars has increased. 2. Our main is to reduce prices. 3. Television advertising is an expensive but effective method of 10 4. The company's main activities are manufacturing, marketing and fi . 5. She works in 6. We can't afford to buy the computer at tfiat . -f. 7. The bank 6. 1% for changing traveller's cheques. 8. This company is very successful, so she has made the choice in joining it. 9. The 40f this home has doubled since we bought it. 10. The company has increased sales because of a favourablO. 353 MODULE 111 PRODUCTS, MARKETS AND MARKETING I I. The organization has decided to follow the recommendations of the most recent marketing .Z. 12. Next meeting of the Board of Directors will discuss our new marketing .1 estrategy, audit, mar eting envirgnment, Blue, appro Mate, charges, priée, markding, distribuffon, promotion, objective, 354 Basic English of Economics A. LATYGINA Ex.12. Fill in the missing Marketing prepositions:mix Marketing mix is the combination .•marketing plans and policies that are employed . simplest an organization form, o it in can order be representedto achieve i marketing Q •ec areas, the four P 's but there can be policies adbp e a arge The variety exact combinatielements empl yed such e size QYéach policies and category.resourc employeds thean organization will depend organization, nature th oduct, the nature he market and the state . (withm, o Ex.13. Build your vocabulary. Learn phrasal verbs for business! to mark something up — to increase the price ofsomething Read these sentences carefully and translate them into Ukrainian. 1. If a store faces a lot of competition, it is less likely to mark up its prices. 2. Wholesalers sell goods to stores, which mark them up for retail. 3. The fruit is heavily marked up out of season. 4. Many stores took advantage of the change in currency to mark up prices. 355 Basic English of Economics 5. Most furniture stores marked up their beds by about 20%. 6. Restaurants make most of their money from marking up drinks. 7. Companies have to mark up their products to make a profit. 8. Steel prices have been marked up by almost 10%. 9. The cameras have been marked up to $320. Exercises in Comprehension Ex.l. Answer the following questions: 1. What does marketing involve? 2. What is marketing strategy? What does it include? 3. What are the four elements of the marketing mix? 4. How can «product» be defined? 5. What does «price» refer to? 356 MODULE 111 PRODUCTS, MARKETS AND MARKETING 6. What does «place» mean? 7. What is promotion? 8. Is packaging important for a buyer? 9. What does the sixth «P» refer to? Ex.2. Define the main elements of the marketing mix. • includes its quality, its features, style, brand name, size; includes consideration of things like the basic list price, discounts, the length of the payment period, and possible credit terms; includes such factors as distribution channels, coverage of the market, locations of points of sale; + includes advertising, publicity, sales promotion; co.-ah... protects the product; includes the knowledge, skills and personality of the staff. (c Ex.3. Sum up what you remember about: • marketing and marketing strategy • marketing mix 357 MODULE 111 PRODUCTS, MARKETS AND MARKETING Grammar Revision The Sequence of Tenses After one of the past forms in the principal clause we find past forms in the subordinate object clause: 1. if the action of the object clause is simultaneous with that of the principal clause, the Past Simple or the Past Continuous is used in the object clause. He thought I was joking. 2. If the action of the object clause precedes that of the principal clause, the Past Perfect or the Past Perfect Continuous is used in the object clause. I understood that he had already left the office. 3. If the action of the object clause follows that of the principal clause, the Future-in-the-Past is used in the object clause. I was sure that we would win this ame. 358 Basic English of Economics A. UTYGINA Ex.l. Make the actions in the following object clauses simultaneous with those of their principal clause, l. He was surprised that I (know) his telephone number. 2. I knew the children (hide) somewhere in the room. 3. He told us that he (work) for a large corporation. 4. He said the information (be) rather interesting. 5. We knew that Ann (have) an English class every Wednesday. 6. I knew that they (discuss) my new proposal then. 7. He said that he (be) interested in marketing. 8. She said she (be) busy. 9. The customer said that he (want) to have a word with me. 10. He explained that he (take) driving lessons. 11. The customer said he (think) about buying a new computer. Ex.2. Make the actions in the following object clauses precede those of their principal clause. l. I knew that he (go) to London already. 2. He asked me why I (not invite) him to that scientific conference. 3. He said he (not hear) anything about her complaint. 4. She said the secretary (send) the message already. 5. I knew that she (make) an appointment with general manager. 6. He said that he (work) hard all the time. 7. He told her that he (meet) her the year before. 8. I knew that he (to be) ill the day before. 9. She thought he (graduate) from the University. 10. Didn't you know that he (establish) a business of his own? 359 Basic English of Economics 11. We knew that he (work) for this company before. Ex.3. Make the actions in the following object clauses follow those of their principal clause. 1. He told us that his daughter (be) a marketer. 2. She said that she (finish) her report by 6 0'clock. 3. Mr. Black said the manager (come back) to New York the following day. 360 MODULE 111 PRODUCTS, MARKETS AND MARKETING 4. The secretary told me that the meeting (take place) the following month. 5. I hoped that he (apologize). 6. She said she (not attend) our meeting on Monday. 7. I asked him when the negotiations (begin). 8. He said that the price (not include) the cost of packing. 9. She decided that she (ring) up there tomorrow. 10. We decided that you (be) able to help us. 11. I was sure that they (offer) me that job soon. Ex.4. Translate into English: I. BiH CKa3aB, Luo BiH Cb0POÅHi myxe 3aViH*THä. 2. 3. 4. 5. 6. MeHenxep 110BiÅOMHB HajM, LAO B HbOro e BOKJIMBi HOBUHM. 7. 8. 9. CKa3aB, 1110 51 HOBHHHa BiAfl0BicTH Ha Lien JIHCT HeraMH0. B0Ha 3a11HTana MeHe, me npawoe Miii 6paT. CeKpeTapKa ITOBiÅOMWla, 1110 B)Ke HampyKYBana ueM KOHTPaKT y TPbOX rlPHMiPHHKax. 10. BiH 3HaB, 1110 BOHH MapKeTHHroBY cTpaTeriK). BOHa 3a11HTana, KOJIH nimy 3a 110KymcaMH. BiH no*CHHB, 1110 HiKOJIH TaM He 6YB. A C110AiBaBCA, 1110 np0Beny TaM BC}O BiAnycTKY. BiH 1110 BOHH B)Ke 06rOBOPWIH 1110 He6e3neqHY CHTyauiK). B)Ke P03P06HJIV1 1 1. BiH rlOBiAOMUB, 1110 He 6yne 6paTH AO YBarH 11K) 361 HOBY Basic English of Economics A. UTYGINA Speech and Discussion Ex.l. Talk to your groupmates about the role and nature of marketing in the Ukrainian economy. Ex.2. Discuss with your groupmates: if marketing information is as important to small firms as it is to larger firms; if a good marketing strategy is vital to a product's success Ex.3. You work for the marketing department. Discuss plans for promoting your new product. Ex.4. «A poor product can be made successful by clever marketing techniques.» Do you agree with this statement? Ex.5. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. I am making my first speech at our company meeting. I hope you'll be there to give me moral support. 2. We have to get this product off the ground by the summer. 3. Hughes isn't worth his wages; it's time we gave him the elbow. 4. We'll get more bang for our buck if we advertise online. 5. When I left home, work was difficult to find, and I earned hardly enough to keep body and soul together. 362 Basic English of Economics Ex.6. Comment on the quotation: «A man without a smiling face must not open a shop.» 363 MODULE 111 PRODUCTS, MARKETS AND MARKETING LESSON 5 Text: Advertising Grammar: Reported Speech (Statements) Terms to remember: advertising pew-rarv1Ha cnpaBa•, percnaMa•, peKJ1aMYBaHH51 target customer account 110TeHuiiiHHV1 KJ1i€HT y npaKTnui peKnaMHHX areHL1iM 3araJ1bHOBU3HaHa Ha3Ba K0HTpaKTY Mix KJ1ieHTOM, nnaTHTb 3a 3AiiiCHeHH51 nocnyru, Ta areHL1iero advertising campaign peKJ1aMHa KaMnaHiA allocate (v) P03MiLUYBaTU (KaniTaJ1); acurHYBaT1d budget 6kOÅhCT, KOUITOPHC brief statement message communicate (v) cnpaBa•, KOPOTKUVI BHKnaA advertisement (advert, ad) media d)iHaHCOBHä BHKJ1aA, (bOPMYJIK)BaHH51 r10BiA0MneHfiq, nocnaHHA 110BiAOMJ1flTH (Korocb-to), nepeAaBaTH pewrarvta; peKJ1aMHe oroJIOLUeHHR 3ac06H MacoB0i iH(bopMauii, 3ac06H/HOCii peKJ1aMH advertising media 3ac06H P03n0BC10A)KeHHfl percnaMH broadcasting leaflet rrpaHcJ1fl1AiH JIHCTiBKa, HeBeJIHKa TOHeHbKa 6pomypa 364 MODULE 111 PRODUCTS, MARKETS AND MARKETING flyer display coq JIHCTiBKa 110Ka3, neM0Hcrrpauiq•, BHCTaBKa 365 Basic English of Economics A. LATYGINA display (advertising) inrocTpaTHBHa (peKJ1aMa)oronomeHH51 ad)iura; poster nnaKarr; LILHT, A0L11Ka AJ151 HaKne10BaHH51 boarding (BrE)/billboard (AmE) point of sale trade fair word-of-mouth (advertising) corporate advertising brand image public relations (PR) expert publicity oronomeHb, ad)iL11, nnarcarriB TOLUO Micue 3AiVICHeHHA npomaxy TOPrOBHV1 qpMapoK YCHa (peKJ1aMa) peKJ1awma iMiÅ)K ToproB0i MapKH eKcnepT 3 nvrraHb opraHi3auii rpoMamcbK0i AYMKH na6nicHTi; peKJ1aMa•, ny6J1iMHicTb•, rnacHiCTb Advertising Advertising is one of the main methods of promotion. Its aim is to increase sales by making a product or service known to a consumer and to persuade that consumer to buy it. Advertising is often designed and managed by advertising agencies. Large companies usually use advertising agencies to promote their products and the company's image to the target customers. The account is the contract between the client company and the agency to develop an advertising campaign. The client allocates a budget, an amount ey, to the task. The agency and the client then discuss the e , which is a statement of the client's objectives, as well 366 MODULE 111 PRODUCTS, MARKETS AND MARKETING as the message the company wishes to communicate to the consumers. After that the agency is ready to start work. An advertising campaign consists of a series of advertisements (adverts, or ads) which are run in various media. The most common types of advertising media include: broadcasting (TV, cinema, radio), press (newspapers, magazines), printed material (brochures, leaflets, catalogues, flyers), electronic (Internet), display (posters, hoardings/billboards, vehicles, point of sale), others (trade fairs, word-of mouth, packaging). Corporate advertising is not concerned with increasing sales of a particular product or service. Its aim is to present to the public the brand image. Public relations (PR) experts organize activities which generate positive publicity for companies. They establish good relations with the news media, issue press releases and hold press conferences. Exercises in Word Study Ex.l. Form verbs from the following nouns: advertisement, information, persuasion, management, promotion, development, allocation, discussion, statement, communication, agreement. Ex.2. The following words can be used in more than one way. Underline the correct part of speech for each word as it is used in the text. 1. 2. 3. 4. increase a) nounverb use a nounverb target a nounverb account a nounverb 367 Basic English of Economics 5. contractnounverb 6. 7. budget a noun b verb wisha noun b verb 8. work 9. present a nounverb a nounverb 368 MODULE 111 PRODUCTS, MARKETS AND MARKETING A. UTYGINA Ex.3. Give the English for: OCHOBHi MeTOAH CIIPH*HHR y np0Åaxy T0Bapy, iHd)OPMYBaTH cr10)KHBaqa; percnarvta•, peKJ1aMHa areHuifl, norreHUiVfHHM KJ1i€HT; P03P06HTH peKJ1aMHY KaMnaHiro; 110BiAOMJ151TH cn0)KHBaqa, noqaæu p060Ty; 3ac06H P03110BC}OANCHH51 peycnaxam•, Topr0BHä xpMapoK; YCHa peKJ1aMa; iJ1fOCTPaTHBHa pewiarvla•, peKJ1aMa 4)iPMH; eKcnepT 3 nHTaHb opraHi3auii rpoMancbK0i AYMKH; 36iJ1bL11YBaTH npoaax. Ex.4. Match words from list A with words from list B that have a similar meaning: -main— promote notify budget begin allot -vehicle allocate 6contract automobile sum principal advertise Ex.5. Find suitable opposites to the following words: similar, to f is , to conceal, subordinate, producer, to agree. Ex.6. Match the nouns in the left hand column with the verbs in the right hand column: cut advertisement budget allocate increase finance do 369 Basic English of Economics promot e place advertising take out Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below. 1) the business that deals with making, distributing and selling advertisements; 2) an independent firm that plans, produces and places advertising for its clients; 3) the various forms of communication through which advertising reaches its audience; 4) a book containing details of items for sale; 5) the place where a customer buys something; 6) an exhibition where companies in a particular industry display their products to potential buyers; 7) the contract between the client company and the advertising agency to develop an advertising campaign; 8) a statement of the client's objectives; 9) a notice or message in a newspaper, or on a poster in a public place, or announcement on television or on the radio offering or asking for a product or service; 10) the feelings and opinions that a buyer has about a particular named product. 370 MODULE 111 PRODUCTS, MARKETS AND MARKETING Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. My friend wyks for one of the biggest . . . in Ukraine. 2. we'll have for a new secretary. 3. The best way to sell your car is to put . . in the local paper. 4. How easily.re you persuaded by st. ? 5. We place .+. 'about our products in the newspapers every week. 6. The agency lost a $10 million account when it mistakenly ran ll.?for a new product befo it had formally been introduced. 7. The choice of pdvertising was limited by the budget. 8. The client's stated that the advertising should target the students. 371 Basic English of Economics A. UTYGINA 9. is a large board for displaying pgsters alongside roads. 10. Advertising is often designed by ..4 I l. Mercedes cars have a quality brief -media, an-advert adver adverti Ing, an-adv*isement, to advertise, agencies (2); bFand-image. Ex.9. Fill in the missing prepositions: Advertising Agency Advertising agency is an organization that creates advertising material on behalf f its clients. Agencies will take the advertising r quirements a business and organize the production their campaign designing and producing advertisement and booking space the advertising media. . .1.b0 recent years hey have grown size and importance as expenditure vertising business has increased and as a wider range . ganizations ave used advertising. (of (3), by ), in (3), on) Ex. 10. Use the terms in the box to complete the paragraph. Companies will often employ an or marketing consultancy to advise on and put together marketing Traditionally products and services were on TV and radio in commercials, in newspaper ads, and on by the side of the road or street. But increasingly companies are advertising on One development has been viral marketing where individuals pass 372 MODULE 111 PRODUCTS, MARKETS AND MARKETING adverts which they like on to friends. This is very much like making recommendations. Increasingly, companies communicate with their customers through the Internet such as Twitter or Facebook. The result of this is that commumcation has become a two-way process with companies listening to their customers much more in the new marketplace. Exercises in Comprehension Ex.l. Answer the following questions: 1. What is advertising? What is its aim? 2. Who is advertising managed by? 3. What do large companies use advertising agencies for? 4. What is the account? 5. What do we call a statement of the clients objectives? 6. What does an advertising campaign consist OP 7. What do the most common types of advertising media include? 8. What steps are required to start an advertising campaign? 9. What is the aim of corporate advertising? 10. What do public relations experts do? Ex.2. What do you understand by these terms? target customers, account, budget, brief, brand image, public relations experts. Ex.3. Sum up what you remember about: a) product advertising b) advertising agencies and an advertising campaign c) the most common types of advertising d) corporate advertising 373 Basic English of Economics Grammar Revision Reported Speech. Statements l . When you report what someone has said you often have to make certain changes to verb tenses and other words: a) When the reporting verb is in the past, you make the following tense changes: Present Simple -+ Past Simple Present Continuous -+ Past Continuous Past Simple -+ Past Perfect Simple Past Continuous —Y Past Perfect Continuous 374 Basic English of Economics A. UTYGINA Present Perfect Past Perfect Simple Future Would must had to can could b) Main changes of time indicators: today that day now then this —5 that here there ago before /previously tomorrow —5 the next day/the following day yesterday the day before/the previous day last night the night before/the previous night next week the following week/the week after (that) 2. There are occasions where you needn't change the tense: where facts are still true My name is Mary — She said her name's Mary. if the direct speech is in the past perfect or has the following modals: must (for deduction), might, ought to, could, should, would) if the reporting verb is in the present I'll be back in a minute. She sa s she'll be back in a minute. Ex.l. Match the direct speech word or phrase on the left with its reported speech equivalent on the right: 375 Basic English of Economics a) 10 ago weeks 1) that night b) last night 2) there c) today3) the following month d) these4) the day before e) now) the next morning f) tomorrow ) then g) yesterday 7) those h) next month ) that day i) here) the night before j) tonight 0) 10 weeks previously 376 MODULE 111 PRODUCTS, MARKETS AND MARKETING Ex.2. Rewrite these sentences, changing the direct speech to reported speech. I. «We have only finished because we've worked late the whole week.» He said 2. «I am leaving tomorrow.» Mary explained 3. «l've forgotten to phone him.» Carol said 4. «I work for a small advertising agency.» Lucy told me 5. «I went there with my customer last week.» The advertiser said 6. «We are working towards increasing the quality of services.» Manager said 7. «I must finish this work before I leave.» He said 8. «Kyiv is the capital of Ukraine.» He explained 9. «I want to buy this elegant dress, but I haven't brought any money.» Ann told us 10. «lfyou answer the questions correctly, you may win $100.» The advertisement said 377 MODULE 111 PRODUCTS, MARKETS AND MARKETING Ex.3. Rewrite these sentences, changing the reported speech to direct s eech% 1. The advertiser said tha they had already started the advertising campai 2. He said he would phone back. 3. She explained that her company had opened an office in London. 4. He said that the advertising campaign had failed to increase sales. 5. He said that they would sign the contract the next morning. 6. The client explained that they had already discussed the brief with the agency. 7. He told us that the agency was ready to start that work. 378 Basic A. UTYGINA of English Economics 8. Tom said that he had tried to ring up his mother several times on the previous day but had not succeeded in getting through. 9. My employer told me that, in his opinion, I would do better in some other kind ofjob. 10. The secretary said Mr. Black was having an appointment then. Ex.4. Complete each sentence, using say, tell or speak in an appropriate form. l . He . . . a few words about this account. 2. She can . . . a few European languages. 3. Don't . . . me that this advert is important. 4. Can you . . . me the way to the nearest advertismg agency? 5. She she is interested in our goods. 6. I can . . .that these goods are in great demand. 7. We . . . with the advertiser about this problem. 8. Neither of my parents . . . English. 9. The magazine also . . . about advertisin in Italy. 10. She . . . me that she would be late. 11. 1 to my secretary and she . . she would phone you. 12. Why don't you . . . what you mean? Speech and Discussion Ex.l. Talk to your groupmate about advertising. Think about: + the role and the purpose of advertising; Basic of + the advantages and disadvantages of using various advertising media; the best way/place to advertise products and services. Ex.2. Discuss with your groupmates: + What are the best and the worst adverts in Ukraine at the moment? What do you think advertising agencies should or shouldn't do? Do you think that the world would be better off without advertising? 216 MODULE 111 PRODUCTS, MARKETS AND MARKETING Ex.3. Think about the following: «Advertising is not so important. A good product with the right price and the right distribution will sell itself». Ex.4. Think about the following: «Everyone knows that celebrities in their private lives don't actually use the products they advertise. You must be a fool if you are persuaded by them». Ex.5. Can you think of any new and innovative ways to advertise? Does it pay to invest in advertising? Why? Ex.6. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. If you want any information, ask Mrs. Jones. She knows her onions. 2. 3. I can't lend you $ 10, because I'm really hard up this month. 4. 5. I wish I hadn't paid Brown all that money in advance; he has taken me for a ride. I don't care two pence what Martin thinks. high time we did away with red tape!» a voice called. Ex.7. Comment on the following: «Doing business without advertising is like winking at a girl in the dark. You know what you are doing, but nobody else does.» (Anonymous) 381 Basic of English Economics A. UTYGINA TEST 3 (MODULE rrr) Choose the word or word combination to match the definition. l. An advertisement on radio or on television. a) article b) review c) commercial 2. A phrase used in advertisements to attract c) proverbattention to the product. a) celebrity b) slogan 3. The perception that the public has of a person or organization. a) attitude b) reputation c) image 4. A company which sells goods or equipment to another company. a) customer b) supplier c) retailer 5. The group ofpeople that the company wants to buy the product. a) target market b) local market c) competitive market 6. A customer of someone who provides a professional service. a) buyer b) client c) seller 7. An organized movement for consumer protection. a) consignment b) consumption c) consumerism 8. The study of what products and services customers might like to buy. a) market penetration b) market demand c) market research Basic of 9. A group ofconsumers for whom a business has designed a product and marketing strategy. a) supermarket b) target market c) financial market 10. The company that sells the largest amount of a specific commodity in a particular area. a) market trend b) market share c) market leader 11. Items created to be used in everyday life. a) durable goods b) consumer goods c) industrial goods 12. Goods that can be imported without customs duties. a) perishable b) luxury goods c) duty-free goods 218 MODULE 111 PRODUCTS, MARKETS AND MARKETING 13. Something that earns a lot of money. a) money broker b) money spinner c) money-maker 14. A product sold at a loss to encourage trade. a) loss leader b) moneylender c) cash cow 15. The movement of goods to places where they can be sold. a) marketing b) promotion c) distribution 16. The amount of money for which something can be bought or sold. a) charge b) value c) price 17. An exhibition where companies in a particular industry display their products to potential buyers. a) trade gap b) trade fair c) trade mark 18. The work of presenting a good image of an organization to the public. a) public monopoly b) public relations c) public spending 19. The combination of factors that influence sales and can be controlled by a company, these include product, pricing, promotion and place. a) marketing concept b) marketing c) marketing environment 20. Bringing in more money than is spent. a) profitable b) promotional c) productive 384 mix MODULE IV BUSINESS AND FINANCE LESSON 1 Text: Costs. Assets and Liabilities Requests Grammar: Reported Questions, Orders, Terms to remember: costs liabilities be due for (v) BUTPaTH, BHACTKH•, BaPTiCTb, c06iBapTiCTb profitability output fixed costs variable costs direct costs indirect costs overhead costs/overheads expenses/expenditur e assets and liabilities fixed assets current assets BUP06HHUTBa; 11POAYKTHBHiCTb OCHOBHi BHTparrm CR 3MiHHi BHTPaTH nP51Mi BUTPaTU cn Henp51Mi, nocepeAHi BHTPaTH HawraÅHi BMTparru BHTPaTH, BHAaTKH aKTHBH Ta naCHBH HeniKBiAHi aKTHBu•, OCHOBHHM KarliTan receivables deposit generate, (v) long-term liabilities FIPH6YTKOBiCTb, peHTa6eJ1bHiCTb np0ÅYKuiq•, BurlYCK, BMI'OTOBneHH51; 06cqr current 110T0HHi 060poTHi aKTHBH (KOILTH), 060POTHuä KaniTa.n paxyHKH me6iTopiB', ne6iTopH, Ae6iTopcbKa 3a60proBaHicTb mer103HT, BKnaA y 6aHKY 385 CTBOPIOBaTH ca AOBrOCTPOKOBi 3060B'fl3aHHfl (naCHBH) KOPOTKOCTPOK OBi 3060B'*3aHHA (nacHBH) 6YTH 3060B'S13aHHM•, ninnqraTH BHnnarri 386 MODULE IV BUSINESS AND FINANCE Costs. Assets and Liabilities I The money that a business spends in order to produce goods or services is its costs.l Companies need to control and reduce costs to ensure profitability.IDifferent businesses have different cost structures and define and calculate their costs in different ways.\One way of classifying the costs of a business is to relate them to the output of the firm. i Fixed costs are those which remain unchanged whatever the level of output, e.g. rent, heating, interest charges, salaries; variable costs change directly with the output of the business, e.g. materials. Direct costs are directly related to the things produced.'ln manufacturing, for example, direct costs include raw materials and wages. V Indirect costs may include things like social security charges on top of the wages. € VOverhead costs or overheads are used to mean different things, but usually cover all the regular non-production costs of running a business, such as salaries and telephone bills; they may include the cost of marketing. Costs are also referred to as expenses or expenditure. Things of value owned by a firm are its assets. Fixed assets are long-term assets which are for use in the business and not for re-saleb(land, buildings, furniture, equipment, etc.) ICurrent assets are used in the course of business} They include cash, receivables, bank deposits and investments in other companies. The assets help generate the income of the company. Liabilities are what a business owes to those outside the business (suppliers, lenders, etc.). 387 MODULE IV BUSINESS AND FINANCE ILiabilities are classified as either long-term liabilities which are due for repayment after more than one year, or current liabilities which are short-term debts and debts to suppliers the company expects to pay within one year.t\ 388 Basic English of Economics A. UTYGINA Exercises in Word Study from list A Ex.3. Match words with words from list B that have a similar meaning: expenditure possess alter production shortterm liabilities deferred liabilities manufacture stay capital assets circulating assets 389 Basic English of Economics Ex.4. Find suitable opposites to the following words and phrases: assets, to own, current liabilities, fixed assets, withdrawal, bottom, revenue. 390 MODULE IV BUSINESS AND FINANCE Ex.5. Match the nouns in the left hand column with the verbs in the right hand column: increase limite debt maintain 0 reduce expand discharge be in repay run into write off calculate q 101 estimate incur offset save Ex.6. Study the collocations below. Check any unknown words in a dictiona translate them into a) b) MODULE IV BUSINESS AND FINANCE brin own, calculate, cut, gure out, lower, meet, a costs reduce work out Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below. „nditJß døpOS long-g11øD11 /iabi/iffes ssets boo.yvx OR Basic English of Economics A. UTYGINA 1) the money that a business spends in order to produce goods or services; 2) the quantity of goods produced; 3) the money spent to run a business, such as rents, salaries, heat, etc; 4) items of value to a person, business, or institution; 5) money owed by a company; a debt; 6) money that is owed to a business; 7) a sum of money paid into a bank; 8) an amount of money spent; 9) debts that are payable on demand or within one year; 10) money owed that does not have to be repaid until some future date; 1 1) the cost of materials, labour, etc. involved in making a product; 12) a company's ability to make a profit. Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. We had to increase prices this year just to cover our 2. Factory workers have increased . . . by 10 %. 3. It took him years to pay off all his 4. . . . are bills that the company expects to pay in the near future. 5 include rent. 6. Updating these machines will increase our . . .. this year. 393 Basic English of Economics 7. The company does not have enough money to meet its to pay his debts. 9. The assets help . . . the income of the company. 10. The company was forced to sell off its 11. Telephone bills, payroll, and rent are some of our monthly assets, generate, due, liabilities, expenditure, fixed costs, current liabilities, debts, output, costs, expenses. 394 MODULE IV BUSINESS AND FINANCE Ex.9. Fill in the missing prepositions: Assets Current assets are cash and other assets that can be quickly converted ... cash or that will be used one year. Cash is the most liquid asset, so it is listed first. Following that are stocks, bonds, and so on — that can be converted . . . cash . . . a matter days. Next are the firm's receivables. Fixed assets are assets that will be held or used . . . a period longer than one year. They generally include land, buildings, and equipment. Intangible assets are assets that do not exist physically but that have a value based legal rights or advantages that they confer a firm. They include patents, copyrights, trademarks. They are . . . value the firm . . . a number . . . years. (to, on (2), for (2), of (3), in, into (2), within) v/ Ex.10. These words are often confused: price worth cost value price — the amount of money you have to pay (usually for goods) in order to buy them; worth — adj. having a value or a price; cost — n. the amount of money paid or chargedfor goods or services; — v. to be the price ofsomething; value — the amount that something is worth, measured especially in money. Complete these sentences using the correct form of one of the words above. Make sentences of your own to show that you understand the difference in their meaning. 1. She bought this coat in the sales for a very good 395 MODULE IV BUSINESS AND FINANCE 2. I thought this bracelet was made of gold, but it turned out to be 3. Will the . .. of my property go down if they build a plant nearby? 4. This dress was a real bargain; it only . . . me $20. 396 Basic English of Economics A. UTYGINA 5. The . . . of keeping a person in prison for a year is enormous. 6. I'll send you a cheque to cover the . . . for the stamps. 7. That shop was always empty because the . . . were too high. 8. In London the . . . of living is very expensive. 9. That ring has great 10. That new magazine is certainly . . the money. 11. Gold coins are 12. His offering . . . for the apartment was $150,000. 13. We wanted to invest in a new production facility but the was prohibitive. 14. It . . . a lot to buy real estate in London. 15. Returned goods can be exchanged for goods of an equivalent Ex.ll. Build your vocabulary. Learn phrasal verbs for business! to cut back (on something) — to reduce something such as the amount somebody spends or produces. Ifa company or an organization cuts back, it reduces the amount ofsomething it produces. Read these sentences carefully and translate them into Ukrainian. 1. The company will need to cut back if it wants to meet its spending targets. 2. A lot of businesses have cut back on managerial staff. 397 Basic English of Economics 3. During the recession, many companies cut back technology spending. 4. The company has cut output back by 2%. 5. Our expenses are far too high — we'll have to cut them back. 6. Production has been cut back dramatically. 7. Consumers cut back on their borrowing in November. 8. In order to reduce inflation, the government must cut back on spending. 9. The firm's production will be cut back in the next few years. 10. To cut costs, we cut back on staff. 398 MODULE IV BUSINESS AND FINANCE Exercises in Comprehension Ex.l. Answer the following questions: l . What are costs? 2. Do different businesses have similar cost structures? 3. How can the costs be classified? 4. What are fixed costs? 5. Do variable costs remain unchanged whatever the level of output? 6. What are direct costs related to? 7. What do indirect costs include? 8. What do overheads mean? 9. What are assets? 10. How are fixed assets distinguished from current assets? I l . What are liabilities? 12. How are liabilities classified? 13. What is the difference between long-term liabilities and current liabilities? Ex.2. Choose the correct variant. l) the salary of an Accounts Manager (fixed/variable costs) 2) rent and heating (fixed/variable costs) 3) running a business (direct/overhead costs) 4) materials used in making some goods (indirect/variable costs) Ex.3. Use the terms in the box to complete the paragraph. cost structures fixed costs indirect costs costs overheads direct costs variable costs A business'sare the money that it spends in order to produce goods or services. Businesses of 399 MODULE IV BUSINESS AND FINANCE different kinds have different and define, calculate and refer to their costs in different ways. do not vary in relation to output, whereas do. are directly related to the things produced, 400 A. UTYGINÅ Basic English of Economics may include things like e.g. raw materials and wages. social security charges on top of wages. Overhead costs, or usually cover the non-production costs of running a business such as telephone bills, and can be extended to cover R&D activities, for example. Ex.4. Sum up what you remember about: costs assets liabilities Grammar Revision Reported Ouestions. Requests. Orders. When you report a question, you use the same word order as in the statement. You make the same tense and other changes as you do for reported statements: Wh questions: «Where is Mary, Tom?» She asked Tom where Mary was. Yes/No questions: «Are you going with us, Tom?» — She asked if/whether Tom was going with them. Requests «Would you pass the book please, Tom? She asked Tom if he would pass her the book. She asked Tom to pass her the book. Orders: «Go to bed!» —Ma 's mother told her to o to bed. 401 A. UTYGINÅ Basic English of Economics Ex.l. Rewrite these sentences, changing the direct speech to regorted speech. I. 2. 3. just dropp* $ 10 note?» I asked. to your partner?» asked one of the men. «Why do the prices go up so often?» she wondered. 402 MODULE IV BUSINESS AND FINANCE L.1 4. 5. 6. 7. 0.1 got a work permit?» Ann wanted to know. 0 1 terested in advertising?» asked Mary. «Wo o ike to join our company?» she said. «Are y leaving today or tomorrow morning?» asked his . secret*Mh'I'«Don't watc late-night I warned them sign It,» he sti$o his client. 10. u a new car,» I advised him. 11. rlye so fast,» she begged him. 12. < t w it till tomorrow,» said the advertisement. 13. «Could anslate thihor me, please?» I asked the agent. 14. ve the weekend ofP» she 15.ÄQ<Would you mind paying cash?» saiCiGe sal sgirl ölen he took out his cheque-book. 16. «Why don't yqu t her?» I asked Mary. Ex.2. Rewrite these sentences, changing the reported speech to direc!ppeech. I. She said had become bankrupt and its stock was of no valyep 2. I asked her if to take my pen but she thanked me. 3. He wanted to know if {Wå"oing to calculate the indirect costs. 4. My employer hoped I would not be offended hetol e that I would do better in some thpr bind ofjob. 403 MODULE IV BUSINESS AND FINANCE 5. He asked me how long 6. I wondered 7. He asked what we 8. I wondered if they woul&soi• problem at the meeting. 9. He asked the manager to accept his resignation. 10. She asked me when I would be in Kyiv. 11. The court ordered the company to pay all their debts before I September. 12. He wanted to know when the new training program would be presented. 13. She wondered where we had held the conference the previous year. 404 A. UTYGINÅ Basic English of Economics 14. Helen asked Tom if he had got a car. 15. He promised her that if she attended the conference the following week, she would hear his new theory about classification of the costs. 16. He couldn't understand how I managed on my salary. Ex.3. Rewrite the passage in Direct Speech. Joan worked in a shop selling gramophone records. One day a middle-aged woman came in, sat on a stool in front of the counter and smiled at Joan. Addressing Joan familiarly, she said she wanted a record-one she had heard on the radio that morning. Joan asked what the record was called. The woman shook her head, and said she didn't remember, though she would know it if she heard it. She suggested that Joan should play her some. Joan pointed out that they had hundreds of records in stock, and that it would take a very long time to play her even a little of each. The woman looked very unhappy, but suddenly her face brightened. She had just remembered something, she said: the music she wanted came from a play in which there was a woman who spoke very badly, but who after a time learnt to talk beautifully. Joan asked if it could be from «My Fair Lady». The woman cried out that that was it. She wished Joan had thought of it earlier instead of wasting time asking silly questions. She supposed Joan was new to the job. (From B.D. Graver. Advanced English Practice, Oxford University Press) 405 MODULE IV BUSINESS AND FINANCE Speech and Discussion Ex.l. Define the following terms: • costs • assets liabilities Ex.2. Explain how a firm can define and calculate its costs. Ex.3. Discuss with your groupmates which is more important for a business — its assets or liabilities. Why? Ex.4. What do you think are the most important things that a business spends money on? Ex.5. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. You'd better not rely on him. When it comes to business he'll show the white feather. 2. We were surprised at Jack turning up in our office. We saw him here once in a blue moon. 3. Stop arguing. We'd better read the paper. Here it is put in black and white. 4. It's time we shut up shop. 406 MODULE IV BUSINESS AND FINANCE 5. Reading between the lines of Miss Prout's reference, I have the impression that her employer was not satisfied with her work, although he doesn't actually say so. Ex.6. Comment on the following: «A small debt produces a debtor; a large one an enemy.» (Syrus) 407 A. UTYGINÅ Basic English of Economics LESSON 2 Text: Raising Finance Grammar: First Conditional Terms to remember: raise finance (v) run costs (v) financial reserves KepyBaTH, ynpaBJIRTH BHTPaTaMH extra capital AOAaTKOBHii KaniTaJ1 premises 11PHMimeHHq; 6YAHHOK 3 6YAiBJ151MH i AiJ1flHKOK) working capital 060POTHHä KaniTan; 060POTHi preserve (v) cash flow time-lag 36epiraTw, niÅTPHMYBaTH liquidity niKBiÅHiCTb retained profit borrowing grant Hep03n0AineHHä npu6YT0K pe3epBH noTiK rOTiBKH BiwraBaHHfl B qaci; cni3HeHHR r103HKa (KOUITiB); KpeÄMT A0Tauiq•, cy6cMAiA, rpaHT•, rp0LL10Ba monorvrora n03HKa nomaT0K p03110Ainxrw, P03ÅaBaTH loan distribute (v) lender leasing npmnerJIHMH GR Kpemwrop, r103MKomaBeUb Jli3MHr, AOBrOCTPOKOBa oper-ua 408 MODULE IV BUSINESS AND FI hire purchase debt factoring share issue 60pr0BHä (baKTOPHHr share flotation P03MiLqeHHR, BHNYCK HOBHX UiHHHX share offering nanepiB Ha BiJ1bHHä PHHOK KY11iB1151 y p03cTpoqKY 3anyqaTH 409 A. UTYGINÅ Basic English of Economics Raising Finance All firms need capital to stay in business. Capital is the money that a company uses to operate and develop. As well as money for running costs such as wages, material and rent, companies need to have financial reserves. Extra capital may be needed to expand by buying new premises or developing new products. Firms may also need working capital (money which is available for use immediately) to preserve cash flow through the business, for instance if there is time-lag between producing goods and services and getting paid for them. A firm without sufficient working capital has liquidity problems. There are four main ways of obta ning capital: retained profit borrowing • share issues and loans government grants Retained profit is the amount of profit after tax at rectors of a business decide not to distribute to their shareholders, but to keep within the business. Borrowing money usually accounts for 80-30 percent of firms' capital. There are several types of lender' to business: commercial banks, leasing, hire purchase, debt factoring, the Stock Exchange. When companies raise finance by selling shares for the first time they make share issues, share flotations or share offerings. The government has a variety of schemes which give grants or cheap loans to firms for certain purposes. 410 Basic English of Economics A. I-ATYGINA Exercises in Word Study Ex.l. Form adjectives from the following nouns: finance, business, profit, govemment, commerce, work, reserve. UEx.2. Give the English for: ganyqaTH (i)iHaHCH•, ynpaBJ151TH BHTParraMH; Marrn (l)iHaHC0Bi pe3epBw, momaTKOBHii KaniTaJ1, KY11YBaTH HOBi npHMiuxeHHT, noTiK roTiBKH, BHP06HHUTBO TOBapiB Ta nocnyr; 3A06YBaTH KaniTan; Hep03r10AineHH1i 11PH6YTOK•, 1103MKa K0111TiB; BHnycK aKuiM•, yp%A0Bi cy6cHAii; nomaT0K; aKui0Hepn•, Kpeawrop; d)OHÅOBa 6iPKa. Ex.3. Match words from list A with words from list B that have a similar meaning: share flotation creditor hire purchase shareholder profit stockholder instalment plan lender share offering purchase earnings enlarge keep get obtain preserve buy expand 'UEx.4. Find suitable opposites to the following words: borrowing, profit, to sell, cheap, lender. Ex.5, Match the nouns in the left hand column with the verbs in the right hand column: 411 Basic English of Economics arrange capitalrepay take out loanraise supply apply for financeborrow invest lend 412 MODULE IV BUSINESS AND FINANCE Ex.6. Look at the words and phrases in the box. Match them with the correct definition from the list below. other activities; 1) money as a resource 2) the capital from a business that is set aside from profit or from shares sold at higher than their original price; 3) the amount of money moving into and out of a business at a particular point in time; 4) part of the annual profit that is not paid to sharehold s out as dividend, but reinvested in the company; 5) receiving money from a person, a bank, or other financial organization and agreeing to pay it back later, usually with interest; 6) money that has been borrowed and has to be paid back; 7) a person or an organization that lends money and charges interest on the repayments; ten dr." 8) a way of buying goods where the buyer takes the goods and pays for them in regular instalments over a fixed period of 413 MODULE IV BUSINESS AND FINANCE exchange for the first time; 10) the amount of short-term capital that a business has available to meet the day-to-day cash requirements of its operations; I l) money given for a specific purpose; 12) buildings and the land they occupy. tvQ SQ 414 Basic English of Economics A. UTYGINA Ex.7. Write the appropriate word or phrase in the following spaces. Transl e the sentences into Ukrainian. 1. I'd like to pay in . lease. of $1 OO,OOO. 2. The bank agreed to give the compan 3. The ... in our company is good because we take in much more 4 our öill provide I f r the planned growth next year. 5. I app ied at the bank for ... t 7% interest. or research. 6. The Ford Foundation gave the economist 7. He bought a computer on . 8. A guard asked the stranger to leave the . 9. As Britain recovers from recession, co panies will seek to raise fiaceurqygh customers first. 10.Goods are . .. major 11. The business will need to increase the level of its or else it may face problems with its cash flow. distributed; share issues; premises; hire purchase; a grant; retained profit; cash flow; a loan (2); cash, working capital. Ex.8. Fill in the missing prepositions: Retained Profit Retained profit is the amount profit . .. tax that directors k.OYa business decide not to distributeV..#iheir sharf Iders, but to keep Q e business. It is held as an increase . he capital and reserves the bus• Basic English of Economics and will be used to expand the operation the business purc ase . . . Assets. Retained profits form the most important source . . . finance .k.T.6usiness expansion. (Or, *5h, Ex.9. These words are often co to lend — to borrow to lend is used when it would be possible to say «give» to borrow is used when it would be possible to say «take» 236 MODULE IV BUSINESS AND FINANCE Complete these sentences using the correct form of one of the words above. Banks charge interest for money they That means a a•certain amou t mu t pay back more than he debtors money from a second bank to pay back the money first bank within an agreed period. The crdiwgpolicies of banks differ widely. Some banks do notmoney to private persons. Practically all banks, however, require a security before they any money at all. Ex.10. Build your vocabulary. Learn phrasal verbs for business! to bring something in — to make or earn a particular amount ofmoney Read these sentences carefully and translate them into Ukrainian. 1. The deals will bring in more than 5 million. 2. The business brought in a good profit. 3. The event should have brought more money in from shoppers than it did. 4. They hope the price changes will bring in more cash. 5. His job only brought him in a small income. 6. The sale might bring in € 1 million if we are lucky. 7. He has brought in 80 % of the company sales. 8. The changes should bring in much-needed cash. 9. The group brought in revenues of $ 105 billion last year. 10. How much does she bring in every month? 417 Basic English of Economics A. UTYGINA Exercises in Comprehension Ex.l. Answer the following questions. 1. What do businesses need financial reserves for? 2. What do companies need working capital for? 3. What are the four main ways of obtaining capital? 4. What is meant by the «retained profit»? 5. Is retained profit distributed to shareholders? 6. What are the main types of lenders to business? 7. When do companies make share flotations? Ex.2. Use the terms in the box to complete the paragraph. liquidity working capital financing take over Most businesses increase in size through internal growth, i.e. they produce more and take on more workers. Businesses also grow in size through external growth, though, such as buying another business in a Sometimes growing the business may be the only way that it can survive. Increasing production can lower unit costs, for example. In order to survive, it is necessary to have enough working capital to pay for dayto-day expenses such as wages or bills. is money used to bridge the gap between the time products are planned, materials are paid for and the goods produced, and the time payment is received for them from customers when they are sold. A firm without sufficient working capital has problems, and needs to find some form of 418 MODULE IV BUSINESS AND FINANCE Ex.3. Sum up what you remember about: a) financial reserves; b) retained profit; c) borrowing; d) share flotations; e) grants and loans. 419 MODULE IV BUSINESS AND FINANCE Grammar Revision First Conditional: Form: if + Present Simple/Continuous, + will + infinitive Use: We use the first conditional: to talk about a likely situation and its probable result in the future. If the weather keeps warm, we'll go to the river. • to give advice, threats and to make promises. If I have time, I'll hel ou. Ex.l. Finish these sentences using the first conditional. 1. If he washes my car 2. If you smoke, 3. If you need a lot of money, . . . . 4. If you fail your test in math, 5. If she loses her weight 6. If you phone me tonight, . 7. If I go to the party, 8. If it rains, . 9. If I eat a lot of sweets, . 10. If we get this loan, 11. If you skip classes, . 12. If you buy a new flat 13. If inflation rises, . 14. If I can afford it, . 15. If you feel underpaid 420 MODULE IV BUSINESS AND FINANCE Ex.2. Put the verbs in brackets into the correct form. 1. 2. 3. 4. If you (see) Mary, tell her I have a message for her. If he (refuse) to help, I'll have to manage without him. What will we do if he (not meet) us? If I (get) a work permit, I'll stay for another three weeks. 5. If you (help) us, the job will only take an hour. 421 UTYGINA Basic English of Economics А. 6. IfI fmd his passport, I (phone) him at опсе. 7. lf уои leave your саг unlocked, someonc (steal) it. 8. Unless she (sell) more, she won't get much commission. 9. Ifl lend уои $ 100, when уои (repay) те? 10. Ifwe (таКе) share issues this month, wc'll raise our бпапсе. 11. Ifyou тападе to get cheap loans, the f1rrn (stay) in business. 12. lfwe (need) extra capital, we'll apply at the bank for а loan. 13. If уои (be) in diffculties with топеу, I'll help уои by all means. 14. IfI (fmish) this work before six, I'll let уои know. Ех.З. Translate into English: 1. Якщо я попрошу його, BiH допоможе нам одержати цю позику. 2. Вони обговорять це питання, якщо у них буде час. З. Якщо нас запросять на переговори, ми будемо вашу 4. Ми одержимо цю якщо BiH iT електронною поштою. 5. Якщо BiH забуде мувати вчасно, свою 6. Якщо прибуток не буде вони будуть 7. Якщо ми одержимо цю довгострокову оренду, то один у цьому MiCTi. 8. Ми зможемо купити HOBi якщо у додатковий 422 ще буде UTYGINA Basic English of Economics 9. Якщо наш вчений отримае грант, BiH зможе важливоТ для всього людства проблеми. 10. Якщо я куплю цей комп'ютер у розстрочку, то я зможу заощадити на подорож до египту. 423 MODULE IV BUSINESS AND FINANCE Speech and Discussion Ex.l. Define the following terms: retained profit; shareholders; share offering. Ex.2. Interview the financial manager in a large corporation. Ask him about the ways his corporation obtains capital. Ex.3. Discuss with your groupmates which way of obtaining capital is more suitable for a small firm. Why? Ex.4. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. He gave me one of his sandwiches, and I gave him some of my candy; share and share alike. 2. He stole the lion's share of the company's profit. 3. In my book, you don't complain about the staff to the boss until you have discussed it with them first. 4. Bob lies for the sake of lying. It has become second nature to him. 5. You'll give us a bad name if you talk to our customers like that! Ex.5. Comment on the following: 424 MODULE IV BUSINESS AND FINANCE «Finance is, as it were, the stomach of the country, from which all the other organs take their tone.» (W. Gladstone) 425 UTYGINA A. Basic English of Economics LESSON 3 Text: Financial Centres Grammar: Second Conditional Terms to remember: trade (v) stock market foreign exchange (forex) market commodity market interest rate TopryBaTH (HHMOCb- in;) raise capital (v) 36iJ1bL11YBaTH KaniTaJ1, 3anyqaTH securities market-maker uiHHi narrepn stockbroker bond bond market bull market (bOHAOBa 6iPKa BaJ1}OTHa 6iPKa TOBapHa 6iPKa n03HKOBHä npoueHT/BimcoT0K KaniTan AHJ1ep, rlPOBOÅHTb onepauii 3 UiHHHMH nanepaMH 6ipK0BHii MaKJ1ep/6poKep 06J1irauiA PHHOK 06J1irauiM PHHOK aKuiä, Ha HKOMY niÄBHLUY}OTbCR uiHH•, PMHOK 426 UTYGINA Basic Engl Economics bear market PHHOK mcuiii, Ha flKOMY 3HM)KYEOTbCH uiHH; PHHOK 427 MODULE IV BUSINESS AND FINANCE Financial Centres Financial centres bring together investors and the businesses that need their investment. Things traded in financial centres include: securities on the stock markets; currencies on the foreign exchange or forex markets, commodities such as cereals, coffee and precious metals on the commodity markets. The stock market is the financial centre of any country. It reflects any change in the economy. It is sensitive to interest rates, inflation and political events. In a very real sense, it has its fingers on the pulse of the entire world. Among the most limous stock markets are the New York Stock Exchange (NYSE or Street»), the London Stock Exchange (LSE) and the Deutsche Börse. The stock exchanges exist to allow investors to buy and sell shares, and companies to raise capital. They also provide a market for government loans and securities. On the market, the main operators are the market-makers who trade in a group of shares, and stockbrokers who act as agents for their clients. Marketmakers sell to stockbrokers. A share (BrE) or stock (AmE) is any of the equal parts into which the capital of a company is divided. Securities are shares and bonds (official papers given by a company or the government, to prove that you have lent them money and that they will pay it back with interest). The bond market is about ten times bigger than the stock market. If a government or large company wants to borrow a large sum of money, it issues a bond and receives the money as a loan from the institution or individual who buys it. The bond market is entirely electronic and does not have any physical exchanges. 428 MODULE IV BUSINESS AND FINANCE The foreign exchange market is bigger than all the securitieS markets combined. Here, dealers buy and sell currency. Players include: + commercial banks central banks + pension funds, etc. 429 UTYGINA A. Basic English of Economics There is a huge amount of speculation in this market. When prices in a stock market or currency market are rising people talk about a bull market. It is a situation on the stock or currency market when people are buying a lot of shares because they expect that the shares will increase in value and that they will be able to make a profit by selling them again after a short time. When prices are falling people talk about a bear market. It is a situation on the stock dr currency market when people are selling a lot of shares because they expect that the shares will decrease in value and that they will be able to make a profit by buying them again after a short time. Finally, there are the commodity markets. Here, dealers trade the future price of such things as: goods confirm whole change 430 UTYGINA Basic English of Economics Energy: sensitive permit crude oil,entire natural foreign currency gas, allow etc. stock exchange Metals: foreign exchange alteration gold, securities market perceptive silver, prove commodities copper, steel, etc. Soft commodities: coffee, sugar, grains, livestock. Exercises in Word Study Ex.l. Form nouns from the following verbs: reflect, exist, invest, govern, operate, act, divide, prove. Ex.2. Give the English for: ToprYBaT1d arcui51Mn•, (l)OHAOBa 6ipxa; T0BapHa 6ipxa; BaJ110THa 6ip»ca; noporoqiHHi MerraJIW, BaJ1}OTa•, ypflA0Bi T103HKH era uiHHi nanepu•, 6ipK0BHii MaKJ1ep•, KaniTaJ1 K0MnaHii•, 06J1irauii; 1103HKOBHii BiÅCOTOK; PHHOK PMHOK Ex.3. Match words from list A with words from list B that have a similar meaning: 431 MODULE IV BUSINESS AND FINANCE Ex.4. Find suitable opposites to the following words: to rise, to borrow, to include, partial, to unite, to prove. Ex.5. Match the nouns in the left-hand column with the verbs in the right-hand column: pay off redeem securitiesretire deal in commoditiesissue trade in bondsmake advertise sell Ex.6. Look at the words Match them with the list below: and phrases in the box. correct definition from the interestrate stmtvk« 1) a market where stocks and shares are bought and sold under fixed rules, but at prices controlled by supply and demand; 2) a place where raw materials and some manufactured goods are bought and sold; 3) a market where foreign currencies are traded; 4) a person or organization that buys and sells stocks and shares; 5) a certificate of debt; 6) shares and bonds; 7) a market in which the general level of share prices is rising; 432 MODULE IV BUSINESS AND FINANCE 8) a market where the general level of share prices is falling; 9) the amount of interest that is paid for money at a savings bank, on a bond, etc; 10) a rise in prices and lowering of currency's value. 433 UTYGINA A. Basic English of Economics Ex.7. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. The main international are based in the USA, Japan, and the UK. 2. The Euro was stronger than the dollar on the market yesterday. 3. Borrowers are encouraged to take out loans while . . . are low. 4. I'll ask my to sell these shares for us. 5. try to predict changes in share prices. 6. Companies sell . . . to raise money. 7. Her company buys and sells 8. The . . . on a car loan is 10 %. are wholesalers of shares who keep supplies of the shares in which they deal, making a continuous market for buyers and sellers. 10. Brokers on stock exchanges. trade, rate of interest, securities, bonds, market makers (2), stockbroker, interest rates, foreign exchange, stock exchanges. Ex.8. Fill in the missing prepositions. When companies are first listed . the Stock Exchange, their shares are issued, or floated, . . a price normally determined the company. Existing companies which are already listed may issue new shares if they need more capital. The issue new shares is known as the «primary» market. 434 UTYGINA Basic English of Economics The «secondary» market is where shares are bought and sold once they have been issued. Prices are determined . . . the operation . . the basic economic laws supply and demand. If investors were unable to realise their assets . selling their shares . the secondary market they would be reluctant to invest companies. . . . turn, companies would be deprived . . . a major source capital. these reasons there are stock exchanges most countries . market economies. (with, in (3), for, of (5), on (2), by (3), at) 435 MODULE IV BUSINESS AND FINANCE Exercises in Comprehension Ex.l. Answer the following questions: I. What can be traded in financial centers? 2. What is the stock market sensitive to? 3. What do stock exchanges exist for? 4. What do stock exchanges provide? 5. Who are the main operators on the market? 6. Who do market-makers sell to? 7. What are securities? 8. What is a bull market? 9. When do people talk about a bear market? 10. What is a commodity market? Ex.2. Sum up what you remember about: a) things traded in financial centres; b) stock exchanges; c) market-makers and stockbrokers; d) securities; e) bond market; f) bull market and bear market. 436 MODULE IV BUSINESS AND FINANCE Grammar Revision Second Conditional Form: If + Past Simple/Continuous, + would +infinitive Use: We use the second conditional: to talk about an unlikely or imaginary situation and its result If I won the lottery, I'd buy a new car. • in the expression «lfl were you, I'd ...» to give advice If I were ou, I'd retire. 437 Basic English of Economics A. LATYGINA Ex.l. Finish these sentences using the second conditional. 1. If I passed my English exam, 2. If my friend got promotion, 3. If he listened to my advice, . 4. If he invested in government bonds, 5. If I were you, 6. If the customer complained 7. If you knew him better, 8. If I could help you, 9. If she were present, 10. If you didn't ask me any questions, 11. If he took better care of his health, 12. If I saw it with my own eyes 13. If I were sacked, . 14. If the government raised taxes, . . 15. If you were introduced to the Managing Director Ex.2. Put the verbs in brackets into the correct form. (All the sentences refer to the present or future). 1. If nothing better (turn up), he would apply for this job. 2. I wouldn't want to live in this city even if I (have) all the money in the world. 3. If you (change) your mind, I would never forgive you. Basic English of Economics 4. If you (study) harder, you would get better marks. 5. If I (win) a lot of money, I would feel very happy. 6. If I were you, I (be) more careful. 7. If it (not be) so late, I would phone him. 8. If you really wanted to help, you (can) do it even now. 9. If we reached an agreement, we (sign) the contract. 10. If market prices (rise), we would talk about a bull market. I l. Ifyou (can) send us this information, we would be very grateful. 12. Our products (not sell) if we didn't have a strong sales department. 13. If she had more money, she (spend) her summers in Italy. 14. If you (provide) a better service, you would get more customers. 15. We would save money if we (employ) our own people. 248 MODULE IV BUSINESS AND FINANCE Ex.3. Answer these questions with a conditional sentence. What would you do if... you won lots of money? you were a famous film star? you found a wallet on the ground? 4. you were invited to play a part in a film? you were trying to lose weight? 6. . you were to change your job? 7. . . . you saw someone cheating in an exam? you wanted to buy someone a really good present? you were to apply for the manager's job? 10. you found a job abroad? 11. . . . you were promoted? 12. . . . you were fired? 13. . you were asked to work overtime? 14. . you were president of a big company? 15. your company's main competitors offered you a good job? Ex.4. Translate into English. 1. 2. K0MnaHiH ToplYBana 6 CBOiMU aKui}1MH, HK6H Mana JA03BiJ1. BOHH 6 3HH3HJIH n03HKOBHVi BiACOTOK, 51K6H KOM11aHifl He ojxep>KYBana rraKi npH6YTKH. 3. 51K6H I-re iCHYBaJ10 (l)iHaHCOBHX ueHrrpiB, KOMnaHiflM 6yno 6 BOKKO 36iJ1b1LIYBaTU CBiV1 KaniTan. 4. AK6H BOHVI nponaBaJIH IliHHi nanepm Ha (l)0HJL0BiVl 6iPKi, BOHH 5. MUIU 6 BMI-qi npn6YTKM. 51K6H qi erypmcTHHHi nocnyrm HanaBaJIHCfl KOHKYPYIOIIHMH (l)ipMaMH, MH 6 Mann KpaL11H1i BH6ip. 6. 51K6u TH nponaB Ili aK11ii, TO BHPiL11HB 6M yci CBOT np06neMH. 7. AK6H IVI KOMIUHi51 AOCJ1iJVKYBaJ1a PHHOK 6iJ1b111 pemeJ1bH0, BOHa 6YJ1a 6 6ir1b111 JIPHBa6JIHB010 iHBeCTOPiB. 440 MODULE IV BUSINESS AND FINANCE 8. 9. 51K6H nonwr Ha Iteii T0Bap 3HH3HBCS1, MH 6 BHJIYCIHIIH ii011) 3 PHHKY. 51K6H y HHX 6.YB BH6ip, BOHH 6 IliJ(TPHMYBaJIH BiTHH3HSIH01*O BMP06HMKa. 10. C110>KHBaqi i3 gaÅOBone11HSlM KYVlYBaJIH 6 Balli T0Bap, SIK6H BH 3MiHHJIH 441 Basic English of Economics A. UTYGINA Ex.5. Under what circumstances, if any, would you: tell a lie to your parents? skip a lecture? • leave the restaurant without paying the bill? lend a large amount of money to a friend? give a lift to a complete stranger? waste a large amount of money? • betray you friend? • leave the university? Ex.6. Translate the following proverbs and sayings into Ukrainian. Pay attention to if clauses. 1. If wishes were horses, beggars would ride. 2. If you speak of the devil, he will appear. 3. If you use your head, you may save your feet. 4. If nothing ventured, nothing gained. 5. If you run two hares, you will catch neither. 6. If you lie down with dogs, you will get up with fleas. 7. If a man could have half his wishes, he would double his troubles. 8. If there were no clouds, we wouldn't enjoy the sun 9. If we could see ourselves as other see us, we would probably change our views. Basic English of Economics Speech and Discussion Ex.l. Define the following terms: stock market commodity market foreign exchange market bull market • bear market 250 MODULE IV BUSINESS AND FINANCE Ex.2. Say what you know about stock exchanges in Ukraine. Do you think stock exchanges are necessary? Is it usual for ordinary people in Ukraine to own shares? Ex.3. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. I. The work was difficult at first but, after a few weeks, everything fell into place. 2. not my place to give you advice», the clerk said to the manager. 3. If we cut out all unnecessary expenses, we shall have a reasonable chance of weathering the storm. 4. Charging you € 200 for that simple repair was daylight robbery, 5. After months of work, we are beginning to see daylight. Ex.4. Comment on the following: «The best entrepreneurs are risk avoiders. They identify the risk, and then they take actions to minimize the effects of it.» (Paul Hawken) 444 Basic English of Economics А. UTYGlNA LESSON 4 Text: 1nvestments Grammar: Third Conditional. Progress Test llI (Conditionals). Terms to remember: capital goods portfolio Unit Trust (BrE) Mutual Fund (АТЕ) fxed rate of interest gilt-edged security /gilt (BrE) treasury bond (АТЕ) derivative instrument/derivative futures deal option swap suit (у) засоби виробництва; товари виробничого призначення портфель пайовий фонд/траст взаем:шй фонд; фонд процентна ставка гарантований GQ казначейська GQ iHcTpyMeHT ф'ючерс, контракт, TepMiH0Ba угода угода угода з (обумовлене виплатою npeMiT право купити чи продати папери за встановленим курсом) са своп, 06MiH активами чи зобов'язаннями са влаштовувати, задовольняти Basic English of Econom 252 MODULE IV BUSINESS AND FINANCE Investments When we speak about investments we mean the purchase by a business of new capital or of capital goods such as new machinery. In the most general sense, the objective of investing is to earn money with money. When an investor holds the collection of financial securities we say that he holds portfolio. Unit Trust (BrE) or Mutual Fund (AmE) is a company that spreads its investors' capital over a variety of securities. Investment in a unit trust/mutual fund reduces the risk for the small investor. Apart from stocks and shares there are many types of investment opportunities available. When a company or government wishes to raise finance it can issue bonds. These are securities offered at a fixed rate of interest. Bonds issued by the government are called giltedged securities or gilts in the UK, and treasury bonds in the US. Derivatives or derivative instruments are financial products such as futures, options and swaps. Futures are contracts that give the right to buy and sell currencies and commodities at an agreed time in the future at a price agreed at the time of the deal. Options are contracts enabling the holder to buy a security at a fixed price for a limited period. Swaps allow the exchange of one asset for another to suit both parties. Companies should always consider diversifying when making investments. Putting all one's eggs in one basket is invariably wrong. Exercises in Word Study Ex.l. Form verbs from the following nouns: collection, reduction, product, agreement, investor, holder, meaning, earnings. 447 MODULE IV BUSINESS AND FINANCE Ex.2. Give the English for: KY11iBJ151 T0BapiB BHp06Huqoro npH3HaqeHH51', 3ap06JIHTH rpollli; MeTa iHBec'1YBaEIHw, B3aCMHHV1 (l)011Jt•, 3MeH111YBaTH PH3HK•, iHBecTop; 3anyqaTH (l)iHaHCW, BU11YCKaTH 06nirauii; rtp0110HYBaTH L(iH11i nanepH 3a (l)iKCOBaH010 npoueHTH010 C'NBKOKY, rapaH'11)BaHHii UiHHHä nanip; KY11YBaTH ILiHHi nanepH 3a (l)iKCOBaH010 UiH010; BJ1aUITOBYBaTH 06HÅBi CTOPOHH. 448 Basic English of Economics A. LATYGINA Ex.3. Match words from list A with words from list B that have a similar meaning: objective mutual fund reduce gilts deal buy investor opportunity available obtainable possibility shareholder transaction purchase treasury bonds decrease unit trust target Ex.4. Find suitable opposites to the following words and phrases: disinvestment, to increase, domestic investment, obstacle, to forbid, inaccessible. Ex.5. Match the nouns in the left-hand column with the verbs in the right- hand column: analyse unit trustadd to invest portfoliomanage make giltsconclude issue dealtrade in in Ex.o. Look at words and phrases in the box. Match them with the correct definition from the list below. Basic English of Economics swøP caplülgood 0'Vts 110 døøl OP 254 MODULE IV BUSINESS AND FINANCE 1) a group of different investments held by a private investor, or a financial organization; 2) an organization that manages a fund invested in a wide range of securities; 3) government securities with a fixed interest payable at regular intervals; 4) a bond issued by the US government; 5) goods, currency or securities that will be supplied or exchanged on an agreed future date and for a price fixed in advance; 6) the right to buy or sell a fixed quantity of a commodity, currency or security on a particular date at a particular price; 7) the exchange of business asset for another, instead of money; 8) a business agreement to buy or sell goods or provide a service; 9) an item such as a machine, a building, or a raw material that is used to manufacture products for sale to consumers; 10)a person or an organization that buys property, shares, securities, etc. in order to sell again to make a profit or to receive money in the form of interest or dividends. Ex.7. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. are easier to manage because a group of people do the trading for you and your money is spread among a variety of different investments. 2. In an attempt to raise finance, the company issued . . . to public investors. 451 MODULE IV BUSINESS AND FINANCE 3. You should diversify your investment . . . because you have all your money in one stock. 4. Investing in a . reduces risk for small investors. 5. The fell through, ie. no agreement was reached. 6. Our . . . ranges from shares in food companies to shares in the fashion world. 7. A . . . contract is an order that you place in advance to buy or sell an asset or commodity. 452 A. UTYGINA Basic English of Economics products 8. More exotic financial futures and swaps. 9. These oil shares were a good 10. People who own stocks and bonds are referred to as 11. A treasu1Y . . . may be sold to any individual or corporation. 12. Government bonds are considered to be a safe bond, investors, investment (2), derivatives, futures, deal, unit trust, portfolio (2), shares, mutual funds. Ex.8. Fill in the missing prepositions and adverbs. 1. You can expand your portfolio . . . investing a wide range stocks and bonds. 2. Stockbrokers buy and sell stocks and bonds . . . their clients. 3. If the market is strong, expect a good return . . . your investment. 4. Mutual funds are managed . . . a group . . . fund managers who add all the investor's money together to invest . . a variety of things. 5. If inflation remains low, he will make a huge return his investment. 6. An investment bank is a firm that controls the issue new securities. 7. Speculation . . . derivative instruments such . . . futures, options and swaps has been criticized its effects the stock markets. 8. Portfolio is a selection investments held . . . an individual or organization. 9. Securities issued . . . the British Government are called gilts or gilt-edged securities. 453 A. UTYGINA Basic English of Economics 10. Unlike a stock, a bond is evidence not . . . ownership, but . a loan . . . a company or . . . a government. (to (2), for, as, on (3), on behalf of, of (6), in (3), by (4)) 454 MODULE IV BUSINESS AND FINANCE Exercises in Comprehension Ex.l. Answer the following questions: I. What do we mean by «investments»? 2. What is the objective of investing? 3. What is portfolio? 4. What services do mutual funds provide? 5. What types of investment opportunities exist apart from the stocks and shares? 6. What does the term «gilt-edged security» signify? 7. What are derivatives? 8. What right do futures contracts give investors? 9. What kind of contract enables the holder to buy a security at a fixed price for a limited period? 10. What do swaps allow? 11. What should companies always bear in mind when making an investment? Ex.2. Match these financial institutions with their descriptions below: insurance company, investment bank, mutual fund, pension fund. 1) used to protect yourself against risks (money is paid out if something bad happens) 2) used by private investors to hold a basket of stocks 3) used to save money during your working life and then have an income during retirement 4) used by large companies to issue bonds, buy and sell currencies, manage their portfolio of shares in other companies 455 MODULE IV BUSINESS AND FINANCE Ex.3. Sum up what you remember about: a) investments and their objective; b) unit trusts/mutual funds; c) gilts/treasury bonds; d) derivative instruments 456 A. UTYGINA Basic English of Economics Grammar Revision Third Conditional Form: if + past perfect, + would have + Participle Il Use: We use the third conditional: • tc talk about possible situations in the past which didn't happen If you had followed my advice, you would have earned a lot of money. (but you didn't) We can «mix» clauses from second and third conditional sentences (mixed conditional) if we want to connect a possible past event with the present or future. If you had followed my advice (but you didn't in the past), ou would be rich . ut ou aren't now Ex.l. Choose the most suitable tense: 1. Why didn't you phone me? If you phoned/had phoned me, I 2. 3. 4. 5. 6. 7. would have reserved/had reserved a room for you. If you organized/had organized your conference last month, I was able/would have been able to take part in it. If he lent/had lent me the money, I would pay/ would have paid him back last week. If you had been there at that moment, what would you do/ would you have done? Why didn't you say that you were short of money? If I knew/ had known, I would lend/would have lent you some. She was so impatient. If she had been/ were -more patient, she would received/would have received everything she needed. If I didn't lose/ hadn't lost my key, I wouldn't have/ wouldn't have had to wait outside in the rain. 457 A. UTYGINA Basic English of Economics 8. If the traffic hadn't been/ were not so heavy, we would arrive/ would have arrived on time. 9. If I weren't/ hadn't been promoted then, I would leave/would have left the company. 458 MODULE IV BUSINESS AND FINANCE 10. If I hadn't saved/ didn't save enough money, I wouldn't buy/wouldn't have bought this house. l l . If he didn't gamble/ hadn't gambled so much, he wouldn't lose /wouldn't have lost all his money. 12. If I knew/ had known yesterday that you were coming, I would meet/ would have met you at the airport. 13. You wouldn't get / wouldn't have got into trouble last time if you followed/ had followed my advice. 14. He never would buy/ would have bought shares in that company if you didn't recommend/hadn't recommended him to do it. Ex.2. Put the verbs in brackets into the correct form. 1. 2. 3. 4. If I had sold my shares then, I (make) a lot of money. If you hadn't taken so many risks, you (lose) so much. If I had bought that lottery ticket, I (win) one million. It's a pity you missed the conference. If you (come), you (meet) American scientists working in this branch of economy. 5. If the company hadn't raised its funds, it (go) bankrupt. 6. If we hadn't issued bonds, we (not raise) finance. 7. If I had known this great news, I (tell) you. 8. If I had sold my car a couple of years before, I (get) more money. 9. If I (not make) profit on my shares, I would have never bought this house. 10. If he had invested on the stock market, he (live) from the income. 11. If you contacted a stockbroker, he (give) you some very good advice. 12. If I were you, I (invest) on the stock exchange. 13. If he (work) alone, he would never have finished this work. 459 MODULE IV BUSINESS AND FINANCE 14. If he had known all the facts, he (help) us last Monday. Ex.3. Finish these sentences using a mixed conditional. 1. 2. 3. 4. 5. 6. If I had won the money, . If I had been better at English, . If I had only known about this earlier, . If he had consulted the stockbroker on time, . If he were an honest man, If I knew her better, . 460 A. UTYGINA Basic English of Economics 7. If he had been more friendly, 8. If I had asked his permission, 9. If you had established a company of your own, 10. If she had arranged for free food to be made available to all employees, . 11. If we had signed an agreement, 12. If the new investment plan had been completed, 13. If our market share were much bigger than our competitors', 14. If the company employees were not given the opportunity to travel abroad, Ex.4. Translate into English: 1. Ha Ball-IOMY Micui 6 He XBUJ110BaBcq; BOHa 3Hae, AKi aKL1ii KY11YBaTH. 2. SIK6H BH npa1.U0BaJIH CYMJ1iHHime, BH 6 AaBHO 3aBepLLIH11H p060TY Hal! AHM npoeKT0M. 3. 4. }IK6H 3HaB npo ueü KOHTPaKT, 51 6 nepeKJ1aB Moro me Ha MUHYJIOMY TVDKHi. 5. 6 3BiJ1bHUB Moro, 51K6H He 3HaB, 1110 BiH m06pe BHKOHY€ CBOTO p060TY. 6. 7. 51K6H np0JtaB CBOT aKL1ii niBpoKY TOMY, 51 6 3ap06HB 6araxo rpomeä. 8. AKUIO K0MrraHifl OllHHnnaC51 6 y BOKKOMY (l)iHaHCOBOMY CTaHi, MH 6 BTPCI'HJIH BCe Hame MaVIHO. 9. 51K6H 3HaB npo Barny np01103Hui10 paHirue, 51 6 He noroAHBCA Ha 11K) p060TY. }IK6H BH npornsmynm CTapi UiKaBViä Marr•epian Bamoi A0fl0BiÅi. 3BiTH, BM 6 3HamJIV1 51K6H 51 6YB Ha Ba1110MY Micui, 6 HeraMH0 rapaHT0BaHi ILiHHi manepm. 10.51K6H BH BCe 3P06HJIH cBoeqacH0, TO ueä BHriÄHHÜ Hamoi (l)iPMH KOHTpaKT 6YB 6m BNC niA11HcaHHü. 11.}IK6H CMaK1,i CllO)KHBaqiB He 3MiHIOBaJIHCS1, TopriBJ151 6 He 461 A. UTYGINA Basic English of Economics P03BHBaJ1aCH. 12.SIK6H Ha peKJ1aMY Ile BHTpaqanoc$1 CTiJ1bKH rpomeü, TO MH 6 Bi)1KPHJIH HOBY •rexHOJ10rit1HY JliHi10. 462 MODULE IV BUSINESS AND FINANCE GRAMMAR PROGRESS TEST 111 (CONDITIONALS) Ex.l. Choose the correct answers: I. If you didn't help/hadn't helped me, I would have [would have had financial problems last month. 2. If you didn't know /don't know maths well, you will find/find accounting difficult. 3. If you need /will need some money, I give/will give it to you. 4. If we did/had done it two weeks earlier, we would receive/ would have received big profit. 5. If I am /were you, I will [would apologize. 6. If I didn't get/hadn't got promoted, my salary wouldn't go up/wouldn't have gone up. 7. If he had been /were well paid, he won't worry/wouldn't worry about his future. 8. If you won't finish/don't finish this work on time, you have to/ will have to report to the manager. 9. If you accepted/had accepted these conditions then, you wouldn't make/wouldn't have made any money at all. 10. If I had known/knew her address, I would give/will give it to you. I l. If she were/had been at the meeting, he would see/would have seen her. 12. If he will refuse/refuses to sign the contract, we try/will try to take urgent measures. 13. I tell /will tell you the whole truth if you will promise/promise to keep it a secret. 14. If I had gone/go to Spain next summer, I will change/will have changed some money into traveller's cheques. Ex.2. Put the verbs in brackets into the correct form. 1. What shall we do if he (be) late? 2. It will be a pity if you (not get) the job. 463 MODULE IV BUSINESS AND FINANCE 3. 4. 5. 6. 7. 8. 9. It will be better if you (use) my computer. If you (come) late again, you (be fired). If you (have) sense, you (buy) these shares a year ago. If you (go) to a job interview, you should be well prepared. If you (not buy) useless things, you (be able) to save more. What you (do) if you (lose) your passport? If I (not be) so busy, I (keep) her company. 464 Basic English of Economics A. LATYGINA 10. If we (not advertise) our products, we (not succeed). 11. Ifyou (ring) me yesterday, I (tell) you something very important. 12. 13. If I (not be) so busy then, I (join) you. He (not succeed) in such a risky business if he (not be) such a clever entrepreneur. 14. If Unit Trusts (not put) investors' money into different companies, their risk (be) much higher. Speech and Discussion Ex.l. Define the following terms: • Unit frust gilt-edged security • futures options swaps Ex.2. If you'd like to raise capital would you invest your money in government securities? Why? Why not? Ex.3. Think about the following: «Why invest in the stock market? What goes up must come down. Spend money today and enjoy it while you can.» Ex.4. Discuss with your groupmates the advantages and disadvantages of stocks and bonds as a form of investment. 465 Basic English of Economics Ex.5. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. I have to be careful how I spend my money. I don't have money to burn. 2. There must be some way to raise enough money to buy a car. We've put all our savings together but it isn't enough. Still there's more than one way to skin a cat. I'll get a second job! 466 MODULE IV BUSINESS AND FINANCE 3. I need more work like I need a hole in the head. 4. The boss wasn't happy with a few of his workers who had begun to leave the offce before quitting time. He was afraid they would fall into the habit of leaving early if he didn't nip it in the bud, so he told them they would have to stop. 5. Let's skip the small talk, and go straight to the nitty-gritty: what price do you want for the car, and when will you be able to part with it? Ex.6. Comment on the following: «Future is purchased by the present.» (S.Johnson) Ex.7. This test will help you to estimate your target orientation of earning capital. Choose one of the suggested options. l. Which is the easiest way to make money? a) to work hard, be well-informed, risk and, of course, invest money in business b) to hope to get your uncle's inheritance c) to make a career going step by step to a managing post or to try your hand at politics 2. Which character of Walt Disney makes you smile? a) Donald Duck b) Gusto Hans c) Dogbert Duck 3. In your opinion which income can make the richest people of the world close a bargain? a) from half a million to a million 467 MODULE IV BUSINESS AND FINANCE b) up to 10 million c) dozens of million and higher 4. Which ofthe statements do you agree to? a) The more money you have the more pleasure you get b) Money means power c) Money causes much envy 468 Basic English of Economics A. LATYGINA Have you ever heard of the game called (CA Fortunate letter»? You put a small sum into an envelope, look for a victim, who also pays and, at last, your investment comes back to you multiplied many times. Which part are you ready to play in it? a) not to take part in it b) to take part and also earn c) to be the initiator of the game 6. Is it importantfor you to be mentioned in different newspapers and magazines? a) I would be very glad b) No c) I am often mentioned in them anyway 7. How can you win in races? a) gamble with high stakes b) save money and just be present at the races c) buy a horse-winner 8. In your opinion, who has the highest chance to become a rich man quickly and reliably? a) a director, an actor, a writer, an artist, a sportsmanrecord holder b) a lawyer, a doctor, a politician c) a head of a company, a publisher 9. What is your attitude to the business between friends? a) I am ready to lend money to my friends. Some time they will also lend me. b) Money and friendship are incompatible. 5. 469 Basic English of Economics c) I am ready to borrow money from my friends but not to lend it. 10. Be frank. Ifyou managed to become a millionaire, would you enjoy thisfeeling? a) Of course, I would enjoy it. b) I would demonstrate my enjoyment to everybody who did not trust me or looked at me haughtily. c) No. Il. Where would you invest your millions? a) in real estate, in an art collection b) in shares or other securities c) I would do as my wife/husband would say 470 MODULE IV BUSINESS AND FINANCE 12. (fyou already have a couple of million, are you going to try to earn more? a) No, if we are speaking about a small sum. But I will never refuse to earn a big one. b) Of course. c) No, it is enough for me. 1 a) 6 b) c) 3 2 a) 3 b) c) 6 b) 3 c) 6 b) 3 c) 0 b) b) 6 b) If you have: From 0 to 23 points It means, thal the best way to become rich personally for you is either to get married luckily, or to become an heir, or, at last, to win a lottery. From 24 to 48 points Wealth is connected with work for you. Avoid financial speculations. The best way for you is to make a career and take a place of your boss. Even if it does not bring you desired millions, your life will be financially secured. From 49 to 72 points 471 MODULE IV BUSINESS AND FINANCE You have the best chances to become a millionaire some day (if you are not now). You have a commercial mind, you separate money from friendship. You are not going to boast of your luxurious way of life and are inclined to multiply your förtune patiently. 472 Basic English of Economics А. ИТУС,ТА LESSON 5 Text: Financial Statements Grammar: Expressing Wishes and Regrets Terms to remember: fnancial statement са 3BiT (компанй) fmancial performance ся (компанй) compile (v) укладати; збирати auditor annual report proflt and loss account (P&L)/income statement revenue ся тощо) аудитор; peBi30p 3BiT 3BiT про прибутки та збитки; рахунок надходження; прибуток turnover balance sheet mortgage cash statement витрати; витрачання, видаток оборот баланс; балансовий 3BiT застава; заставна баланс оборотних accuse (v) звинувачувати (у чомусь-ођ expenditure Basic English of Economics «прикраса розм. window dressing балансу»; враження створення високо} прикрашання справжнього стану справ «творчий (методи завищення прибутку creative accounting в 266 MODULE IV BUSINESS AND FINANCE Financial Statements A company and its shareholders need to know information about the company's financial performance. Companies give information about their financial situation in financial statements. This information is compiled by the company accountants and checked by independent auditors. The company's annual report consists of three financial statements: • profit and loss account/P&L (BrE) or income statement (AmE) It summarizes business activity over a period of time. This account shows the revenue (money coming into the business) and expenditure (money going out). It also shows the company's turnover (total sales), costs and overheads. • balance sheet This account shows the financial situation of the company on a particular date, usually the end of the financial year. It consists of a list of assets (cash investments, property and debtors — money owed by customers) and liabilities (all the money that the company will have to pay out, such as taxes, mortgage and money owed to suppliers). Firms in a good situation are said to have a strong balance sheet and those that are not, a weak one. cash flow statement This document shows the flow of cash in and out of the business. It includes sale of assets, issuing of shares, payment of dividends, trading profits and many other activities. There are many reasons why companies can sometimes have a problem with cash flow, even if the business is doing well. Amongst them are: • • unexpected late payments, and non-payments; unforseen costs; an unexpected drop in demand; 475 MODULE IV BUSINESS AND FINANCE • investing too much in fixed assets. Companies are required by law to keep and publish accurate accounts. When company's accounts are presented in a way that makes performance look better than it really is, the company may be accused of window dressing or creative accounting, which means recording transactions and values in a way that produces a false result — usually an artificially high profit. 476 Basic English of Economics A. UTYGINA Exercises in Word Study Ex.l. Form nouns from the following verbs: perform, inform, supply, pay, act, present, accuse, audit, account (for). Ex.2. Give the English for: d)iHaHCOBU1i 3BiT K0MnaHii, aK11i0Hepn, cl)iHaHcoBa AiW1bHiCTb K0MnaHii, 6yxraJITep, He3aJIOKHHÜ ayAHTop, piHHHä 3BiT, 3BiT apo npH6YTKH e ra 36HTKU, Ta Burrparru, HarcnaÅHi Burrparru, 6anaHCOBHä 3BiT, aKTHBH Ta nacHBH, MaiiH0, nonaTKH, 3acTaBa, 110CTaqaJ1bHHKH, 6aJ1aHC 060POTHUX KOLIrriB, aKTUBiB, BH11Jlarra AHBineH)XiB. Ex.3. Match words from list A with words from list B that have a similar meaning: account check revenue window dressing accuse profit expenses expenditure gain creative accounting blame income verify report Ex.4. Find suitable opposites to the following words and profit; assets; a strong balance sheet; to look better; to absolve. Basic English of Economics 268 MODULE IV BUSINESS AND FINANCE Ex.5. Match the nouns in left-hand column with the verbs in the right-hand column. apply for arrange annual off present revenueproduce mortgageincrease reduce reportpay publish provide Ex.6. Look at the words Match them with the list below. and phrases in the box. the correct definition from expenditure annua/ÆpM —ntnt balancesheet revenue 1) a person who keeps records and provides information about a company's or person's money; 2) a person who examines the accounts of an organization to check they are true and correct; 3) a report, containing financial results, presented each year by the directors to the members and shareholders of a company; 4) a summary lisl of income and expenses for a business; 5) money received from the sale of goods or services; 6) an amount of money spent; 7) the total business done by an organization in a given period; 479 MODULE IV BUSINESS AND FINANCE 8) a long-term loan from a bank for buying property, which is used as security; 480 Basic English of Economics A. LATYGINA 9) accounting which follows the literal rules of legislation and accounting standards but succeeds nevertheless in presenting an unduly favourable picture of a company's position or progress; 10) statement of what a company owns, or assets, and owes or liabilities. Ex.7. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. l . My . . . prepares my tax returns every year. 2. The were called to inspect the accounts. 3. The government has a huge need for tax . 4. The company has made several big . . . on new equipment. 5. That company has a $10 million a year . 6. The flat was bought with a $100,000 . 7. The majority of the government's . comes from taxes. 8. The company won't be able to increase . on technology in the coming year. 9. Financial accounts give information about financial of a company. 10. Analysis of our during the last year shows that approximately one third of our revenue came from the Asian markets. I l . The accountant prepared the company's . for the year. 12. The in our company is good because we take in much more money than we spend. Basic English of Economics cash flow, balance sheet, performance (2), expenditure, mortgage, turnover, expenditures, revenue (2), auditors, accountant. Ex.8. Fill in the missing prepositions. An annual report is prepared the management a company whose stock is traded publicly. It contains written and financial statements the progress . . . the company in the previous financial year. An annual report performs a useful 270 MODULE IV BUSINESS AND FINANCE function .. . a free market system, transmitting information . . . the company its shareholders and investing public. Although the report is addressed . . . shareholders, other people who have a stake the business — stakeholders such as employees, suppliers, customers, and lenders — will find it informative. Such a report acts as good public relations . . . the company. (to (2), from, in (2), of (2), by, about, for) Exercises in Comprehension Ex.l. Answer the following questions: 1. Who compiles the information about the company's financial performance? 2. Who is this information checked by? 3. What does the company annual report consist of? 4. What is the purpose of an annual report? 5. What does the income statement show? 6. What does the balance sheet include? 7. When do firms have a strong balance sheet? 8. What is cash flow statement? 9. When may the company be accused of window dressing or creative accounting? Ex.2. Read the paragraph and put the terms in the box in the correct place. profit and loss account auditors liabilities results 483 balance sheet assets MODULE IV BUSINESS AND FINANCE Public Limited Companies are required by law to publish nd-of-year financial statements. This report on the financial performance, or of the company must include at least e a and aso that shareholders can assess the performance of the company. check the accuracy of the 484 Basic English of Economics А. UTYGlNA and accounts. The balance shcet shows the flrm's whilst the proflt and loss account tells shareholders what kind 0f return to expect оп their investments. Companies often publish half-yearly results, especially if they need to warn shareholders ofpoor results. If а frm is doing well it сап report а strong balance sheet, however. Ех.З. Sum ир what уои remember about: Ф proflt and loss account; Ф balance sheet; Ф cash f10w statement. Ех.4. Translate into English: 1. 2. У 3BiTi про прибутки ла збитки зазначаються про та витрати З. Активи пасиви у балансовому 3BiTi. 4. 3BiT готуеться менеджментом 5. Цей незалежний аудитор — 6. Показники балансового 3BiTY про гарний совий стан 7. нашоТ за pik що близько 1/3 наших було отримано европейських 8. Ми не зможемо витрати на HOBi в цьому 9. Вони були продати BCi активи для того, щоб розплатитися з боргами. Basic English of Economics 10. Бухгалтер наиюТ балансу». був звинувачений у 272 MODULE IV BUSINESS AND FINANCE Grammar Revision Expressing wishes and regrets To wish can be used as a simple verb: I wish you a Happy New Year. wish + could or past simple/ continuous is used to talk about something you would like to be different, but can 't change. I wish I could speak Italian fluently! • wish + past perfect is used to express past regrets I wish I had attended that conference. • wish + would is used to express annoyance at the habits of others. I wish ou wouldn't take m car! Ex.l. Complete these sentences using the correct form of the verbs in brackets. I. I wish I (have) enough money to buy this house. 2. I wish I (reserve) a hotel beforehand. 3. I wish he (establish) his private company. 4. I wish I (take) that job in the marketing department. 5. He wishes he (go) on holiday with his friends. 6. She wishes she (be) more careful. 7. They wish they never (get) married. 8. I wish I (not accept) his invitation. 9. She wishes she (not leave) her last job. 10. I wish he (not interfere) with my possessions. 11. I wish nothing (happen). 12. I wish you (nol think) so. 13. I wish you (not smoke) indoors. 487 MODULE IV BUSINESS AND FINANCE 14. | wish she (take) the chance. Ex.2. Translate into English. l. LIIKOJta, 1110 BH He 311acre Ilici 2. 111KOJta, 1110 BH He 110)LYMaJlH upo BH•rpaTH (l)iPMH. 3. 111Kona, 11(0 MH Ile gac'rpaxYBaJIH Hatll T0Bap. 4. 111KOJta, 1110 BH He MaJIH qacy Toni. 488 Basic English of Economics A. LATYGINA 5. LLIKona, 1110 TH He FlinrrpMMaB Moro. 6. LlIKona, 1110 BH He BHBMHJIH pit1HHä 3BiT peereJlbH0. 7. 111KOJxa, (t)iHaHCOBHii 3BiT Hamoi K0MT1aHii LILe He nepeBipeH0. 8. LIIKona, 1110 Barni BHTPaTH nepeBHLUYJOTb Bami npn6YTKH. 9. LIIKona, 1110 Ham 6yxramep 3BiJ1bHHBCfl. 10. LIIK0Aa, 1110 BH He nonepeÅHJIH Moro 3a3ÅaneriÅb. BiH 6H BHPiUIHB Baruy np06neMY. 11. 111K0Åa, ni (barcropu BliJIHBa10Tb I-la (l)iHaHc0BHiä CTaH Haruoi K0MnaHii. 12. I-LIKona, MM me He B 3M03i 110BHiCTK) 3aAOBOJ1bH51TH r10Tpe6H HalliHX Kili€HTiB. 13. 111K0)xa, IRO 11011HT Ha Lteii TOBap nepeBH11tye 11130110.3Muiro. 14. LLlK0)1a, 1110 BH BHTpaTHJIH TaK 6araT0 rpomeä Ha peKJ1aMY uiei nocnyrn. Speech and Discussion Ex.l. Discuss with your groupmates the importance of the financial statements: what information you could learn from studying a firm's balance sheet; what information an income statement gives you; what cash flow statement shows. Ex.2. The Profit and Loss Account and Balance Sheet are two important documents used in preparing financial statements. Which of the following is a definition of Basic English of Economics a Profit and Loss Account? Which defines a Balance Sheet? Statement showing income and expenses resulting from trading over a period of time Statement of financial position at a specific point in time Ex.3. You are to report on the financial performance Of the company. What information will you use? Why? 274 MODULE IV BUSINESS AND FINANCE Ex.4. What is the only way of keeping track of a company's success or failure? Ex.5. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. The president assembled a blue ribbon panel of experts to study the problem. 2. The businessmen were given the red-carpet treatment by the small town. The small town wanted to impress them in the hopes that they would decide it was a good place to build a factory. 3. You can stop hinting that you don't want my company. I got the message. I won't bother you again. 4. Jan invested all her money in the playwright's new play. She was taking a real chance. She was going for broke. If it were a success, she would be rich. If it were a flop, she would be penniless. 5. The fast food restaurant's new chicken sandwich went over with a bang. Everyone was asking for it. Ex.6. Comment on the following: «One can accumulate enough wealth to buy a golden bed, but one cannot buy sound sleep with money.» (Danial Arap Moi) 491 Basic English of Economics A. UTYGINA LESSON 6 Text: Bankruptcy Grammar: Modal Verbs (Ability. Permission) Terms to remember: bankruptcy be in a state of insolvency/ be insolvent lame duck creditor bankrupt go bankrupt/ go bust (v) rescue (v) go into liquidation/into receivership (v) receiver / administrator/ liquidator pay off the debts (v) wind up a company (v) failing company GR 6aHKPYTCTB0 6YTH Hennarrocr1POMO)KHMM niA11PH€MCTBO, 1110 nepe6YBae y BOKKOMY (KPHTHHHOMY) CTaHi Kpeanrrop 6aH1€pypr 36aHKpyTYBarrvrcn p51TYBarru 36aHKPYTYBaTHC51 JliKBiÅærop; ocbiuiMHa oc06a, npH3HaqeHa cynoM niKBiÅaqii KOMnaHii6aHKpyTa p03paxYBarrncn 3 60praMH JliKBiÅYBaTH K0MnaHiro np06J1eMHa K0MnaHisr, KOM11aHiH, Luo 3a3Hae YCKJ1aAHeHb; K0MnaHiH Ha Mexi 6aH1cpYTcTBa voluntary liquidation A06POBiJ1bHa JliKBinauifl Basic English of Economics on the verge of (bankruptcy) GR Ha MOKi (6aHKPYTCTBa) 276 MODULE IV BUSINESS AND FINANCE Bankruptcy While some companies perform well and expand, others are less successful and may have to go out of business. When a person or business is unable to pay its debts they are considered to be in a state of insolvency or to be insolvent. Companies in trouble and needing outside help are often referred to as lame ducks. If the creditors, the people who are owed money take the matter to the court, the person or company is declared bankrupt. A company is then said to go bankrupt or to go bust. Receivers are specialised accountants who are appointed by the court to find someone to rescue the company. Jf a company cannot be rescued, it goes into liquidation (into receivership). It is closed down and all its assets are sold. The receivers, administrators or liquidators are specialists who are appointed to sell the company's assets and pay off the debts to creditors. When this happens, a company is wound up, and it ceases trading. Another option is for the failing company to go into voluntary liquidation and appoint its own liquidator. When a company is on the verge of bankruptcy it should stop trading. Exercises in Word Study Ex.l. Form nouns from the following adjectives: unable, successful, insolvent, failing, voluntary, administrative, optional, bankrupt. 494 MODULE IV BUSINESS AND FINANCE Ex.2. Give the English for: yrH HerrnaTOC11POMO)lCHHM; rcpeÅ1•rropvt; oroJIOCHTH K0MnaHiro 6aHKPYT0M•, 36aHICPYTYBaTJdCS1 (3); [IPH3HaqaTH JliKBinamopiB', 6 P%TYBCI'H K0Mna11i10', porgpaxYBa'l'1,tc51 3 60praMH•, J106POBiJ1bHa K0MnaHii; Mexi 6aH1cpyrcTBa; np06J1eM1ta K0MnaHifl. 495 A. LATYGINA Basic English of Economics Ex.3. Match words from list A with words from list B that have a similar meaning. bankrupt appoint voluntary option go bankrupt receiver rescue save liquidator go bust optional alternative designate insolvent Ex.4. Find suitable opposites to the following words and phrases: voluntary, bankruptcy, successful, to go out of business, debtor, to dismiss. Ex.5. Translate the following collocations into Ukrainian. to file for to be on the verge of to be on the brink of bankruptcy to be declare facing to Ex.6. Match the nouns in the left-hand column with the verbs in the right-hand column: A. LATYGINA Basic English of Economics bankruptbe put into go into insolvencybecome go liquidationavoid declare 278 MODULE IV BUSINESS AND FINANCE Ex.7. Complete the following sentences with either «bankrupt» or «bankruptcy». 1. Years of mismanagement had left the region virtually 2. Several local companies have gone . 3. The firm I work for is facing . 4. The company is . 5. Many of the companies that they had invested in went 6. ... can be involuntary or voluntary. 7. The recession led to a flood of . 8. The company declared . . . in 2006. 9. Involuntary is initiated by creditors. 10. The newspapers accused the government of being in ideas. I l. I am sorry to say that we are facing . 12. We've got no choice but to declare ourselves . 13. If they keep spending money like that they'll ... the company. 14. We are on the verge of . .. . Ex.8. Make a proper selection. Match word combinations with «debt» to their definitions. debt repaymentwhen a company fails to make a debt repayment; debt burdenwhen a company persuades lender to change repayment dates and terms; debt company's debt, especially when considered as a problem; crisisa 498 MODULE IV BUSINESS AND FINANCE debt difficulty in rescheduling/ when a company has serious restructuringrepaying its debt; debt defaultwhen a company repays its debt and/or interest on it. 499 A. LATYGINA Basic English of Economics Ex.9. Look at the words and phrases in the box. Match them with the correct definition from the list below. involuntaN bankruptcy liquidation bankruptcy pep ditor liquidator 1) the state of being unable to pay your debts; 2) a person or an organization that you owe money to; 3) the person appointed by the court to close a company and dispose of its assets; 4) to become bankrupt; 5) to save someone or something from prison, danger, etc. 6) the closing of a company that has stopped trading, usually because it has gone bankrupt; 7) a bankruptcy procedure initiated by an individual or business that can no longer meet its financial obligations; 8) a bankruptcy procedure initiated by creditors. A. LATYGINA Basic English of Economics Ex.10. Find words in the text which have a similar meaning to the informal words and phrases listed below. These are more colourful, but less polite, ways of saying that a company has gone bankrupt. go under; go broke; go belly-up; • go down the tubes; + go to the wall; crash; fö!d; collapse. 280 MODULE IV BUSINESS AND FINANCE Ex.ll. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. I. The firm I work for is facing 2. Several local companies have gone 3. The owner of the small business became during the recession. 4. The company has gone bankrupt and can't pay its 5. One of the company directors was appointed 6. The company has decided to take . 7. It will take years'. all his debts. 8. His company is . . . bankruptcy. 9. Small businesses in Great Britain are currently . . . at a rate of one every six minutes. 10. Their business is so unsuccessful. I think they are considering 11. The manufacturing methods of Rover, once the . of British industry, were transformed thanks to that company's partnership with Honda. going bust, on the verge of, to pay off, voluntary liquidation (2), liquidator, creditors, insolvent, bankrupt, bankruptcy, lame duck. Ex.12. Fill in the missing prepositions. Insolvency Insolvency is the condition . . . being unable to meet debts. A company is insolvent when it is unable to meet the demands all its creditors . selling all its assets . . . cash. such a situation, the creditors would apply the business to be wound up, and ask a liquidator to be appointed who could dispose the assets and pay the 502 MODULE IV BUSINESS AND FINANCE creditors where possible. The company would stop trading, and when the winding . . . is complete, cease to exist. Notes: to cease — VIPH[IHHSITH (of (3), by, for (3), in, up, oil) 503 A. LATYGINA Basic English of Economics Ex.13. Build your vocabulary. Learn phrasal verbs for business! to wind something or — to stop running a business and close it itse(fup completely. Read these sentences carefully and translate them into Ukrainian. l. Rising prices and falling sales have forced us to wind up the business. 2. He was involved in winding the company up. 3. Although the company was solvent, it decided to wind itself up. 4. lhe trust could be wound up or merged with another bigger trust. 5. The business went bankrupt and wound up. 6. If negotiations fail, the company will be wound up. 7. Under these circumstances, the UK plants may have to be wound up. 8. The agency is attempting to wind itself up in an orderly way. 9. The decision to begin to wind up the business was taken at the meeting of the shareholders. 10.The shipping group decided to wind up its final salary pension scheme. Exercises in Comprehension Answer the following questions: I. What may happen to less successful companies? Ex.l. A. LATYGINA Basic English of Economics 2. When is a business considered to be in a state of insolvency? 3. Who are creditors? 4. When is the company declared bankrupt? 5. Who are receivers? 6. What happens to a company if it cannot be rescued? 7. What are liquidators appointed for? 8. Does the failing company have any option? 9. What should the company do if it is on the verge of bankruptcy? 10. What is voluntary liquidation? Ex.2. Sum up what you remember about a bankruptcy procedure. Who can it be initiated by? 282 MODULE IV BUSINESS AND FINANCE Grammar Revision Modal Verbs A. Ability: can, could, be able to l. Can and cannot/can't are commonly used to talk about ability to do something in the present. He can speak several foreign languages. 2. To talk about someone's general ability to do something in the past we use could and someone's specific ability (to do something on one occasion) — was/were able to I could read when I was five. I was able to see personnel manager without an appointment. 3. To talk about ability with perfect and future forms, the be able to structure is used. Will you be able to send this fax? B. Permission: can, could, may, be allowed to l. a) Can and could are used to ask for permission in the present. May can be also used but is quite formal. Could/ Can J call you back? May I use your phone, please? b) When talking about whether something is permitted or not we use can/ can't and be (not) allowed to. Passengers are not allowed to smoke during take-off. You can leave your letter at the reception. 2. To talk about permission in the past we use could/ couldn't and was/ were, not allowed to. We were not allowed to ask any questions. 3. When talking about permission with future and perfect forms be allowed to is used. He will not be allowed to invest in this business. 506 MODULE IV BUSINESS AND FINANCE Ex.l. Complete these sentences using can, could, may and be able to, or be allowed to in the correct form. l. When I pass my driving test, I 2. When he first came to London, he (negative)speak. 3. When we were in the old office, we hire a car. read English but he access all the files. 507 A. LATYGINA Basic English of Economics 5. This sweater was priced at $ 50, but I get a discount because of this little mark on the sleeve. Studentsbring notes into the exam tomorrow. 6. My sister never to travel alone. 7. I send him a message? He is at the meeting at the 4. moment. 8. you phone the boss today? solve this problem yet. I borrow your car? No, you 10. 11. Who appoint the receivers to find someone to rescue the company? 12.he pay off the debts of the company? 13. I: ve been looking for your papers but I find them yet. 14. If he doesn't tell me what his problem is, I help him. 15. She to raise money for her failing company. (negative) Ex.2. Translate into English: 1. 51 6 i3 3aAOBoneHH51M npuäH51B Bame 3anpomeHHH, ane 51 He MO)KY BiÄMiHHTH CBOIO 3ycTpiq. 2. 3. 51KLUO BiH IUOCb BHPiLLIUB, TO HiXTO He MO)Ke Ha HbOro BMJIUHYTH. 4. MO)KY cKa3aern MOMY BC}O npaBJIY? 51 BileBHeHHii, 1110 BiH Hiqoro He 3Hae ripo Ba)KKHä (l)iHaHCOBHii CTaH K0MnaHii. 5. KOJIH 51 TaM rlpa1A10BaB, TO TiJ1bKH rlimnucyBaTH TaKi AOKYMeHTH. myxe uiHY10 Bamy mor10Mory. 51 3HaB, 1110 H MO)KY AOBiP%TH BaM. Meylemmcep Mir BUSINESS AND FINANCE 6. IIpa11iBHHKaM Hal-Iloi K0N,maHii He A03BOJ151C1'bCS1 IWIHTM B od)icax. 7. TiJ1bKH cyn MONC 11PH3Haqwrm rocnpoMO)KHOi K0M11aHii. 8. LIA KOM11aHiH Ha Mexi npa1L10BaTH 3 KJ1iCH'raMH. 6aHKpyTcTBa•, JliKBiAaTOPiB iV1 9. BH Moxerre 3aJIM111HTH BCIO 10. 1M He Å03BOJIHJIM Biltcerpoqwrm ruwre)Ki. He Henna- A03BOJ1flCTbCS1 y cercpe•rapq. uro KON,maHi10, BH orrpnrvtaerre 1 1. 51KL110 BH 3Moxe•re Bin npe3HAeEITa. 12. }IKIUO BOHH He 3MO)KYTb p03paxYBa'1'1,tcS1 3 60praMH np0Tfl1'0M Micqusl, ix Ol'OJIOCflTb 6aHKPYTaMH. 284 MODULE IV Speech and Discussion Ex.l. Discuss with your groupmates: how voluntary bankruptcy is different from involuntary bankruptcy; how bankruptcy is initiated and resolved. Ex.2. Do you think the government should bail out lossmaking companies to avoid making people unemployed? Ex.3. Go to the library and research a firm that is presently in bankruptcy. Describe the type of bankruptcy and trace the major activities of the firm since the day the bankruptcy papers were filed with a bankruptcy court. 509 A. LATYGINA Basic English of Economics Ex.4. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. Our new office manager needs to get organized and get some work done. For two weeks, she's just been spinning her wheels. 2. In order to accomplish our goals and succeed, everyone in the company has to put their shoulder to the wheel. 3. John had to wheel and deal to get the new contract signed. 4. When we decided to develop this product, our first goal was to create something original and innovative. We did not want to reinvent the wheel. 5. Ile lost his job but landed on his feet by finding a better one. Ex.5. Comment on the following: shortest way to do many things is to do only one thing at once.» (Samuel Smiles) A. LATYGINA Basic English of Economics TEST 4 (MODULE IV) Choose the word or word combination to match the definition. 1. The property of a company, person etc. that has value and can be sold to pay the debts. a) liquid profits b) liquid liabilities c) liquid assets 2. Money spent regularly to keep a business running. a) overheads b) costs c) profit 3. General term used for all types of stocks and shares. a) investment b) income c) securities 4. Reduced in value (about currency). a) devalued b) cheapc) declined 5. Money owed by a company; a debt. a) assets b) liabilities c) costs 6. Money that is owed to a business. a) reception b) receivership c) receivables 7. An amount of money spent. a) income b) expenditure c) loss 8. A sum of money paid into a bank. a) departure b) deposit c) debt 9. Buildings and the land they occupy. a) precaution b) premium c) premises A. LATYGINA Basic English of Economics 10. The amount of money moving into and out of a business at a particular point in time. a) cash flow b) cash sale c) cash deal 11. A rise in prices and lowering of currency's value. a) injunction b) inflation c) insolvency 12. Offering company shares for sale to the public or on a stock exchange for the first time. a) share register b) share splitting c) share flotation 286 BUSINESS AND FINANCE MODULE IV 13. A person or an organization that lends money and charges interest on the repayments. a) tender b) lender c) licensor 14. A market where the general level of share prices is falling. a) target market b) bear market c) bull market 15. A person or organization that buys and sells stock and shares. a) stockbroker b) dealer c) market-maker 16. Contracts that give the right to buy and sell currencies and commodities al an agreed time in the future at a price agreed at the time of the deal. a) options b) futures c) swaps 17. A group of different investments held by a private investor, or a financial organization. a) gilts b) treasury bonds c) portfolio 18. A long-term loan from a bank for buying property, which is used as security. a) turnover b) revenue c) mortgage 19. A summary list of income and expenses for a business. a) cash flow statement b) income statement c) balance sheet 20. A person who examines the accounts of an organization to check they are true and correct. a) auditor b) accountant c) administrator 513 MODULE V ACCOUNTlNG LESSON 1 Text: The Field of Accounting Grammar: ModaI Verbs. 0bligation and приватний бухгалтер мати справу з (чимось) private accountant handle (v) fmancial records government accountant monitor (у) receipt GQ (документи) урядовий бухгалтер контролювати, одержання 514 (зазвичай час скорочення виробництва), скорочення персоналу робоче навантаження layoff work load Necessity Terms to remember: record (v) pore over (v) invoice ledger lure (у) transaction deal growth decline certi6ed public accountant (АтЕ) /chartered accountant (BrE) рееструвати; занурюватися рахунок-фактура бухгалтерська книга спокушати, принаджувати зростання занепад дипломований бухгалтер 515 UNIT V THE FIELD OF ACCOUNTING Remember the difference: Accounting is a comprehensive information system for collecting, analyzing and communicating financial information. Bookkeeping is just one phase of accounting — the day-to-day recording of accounting transactions. The Field of Accounting The stereotype of the accountant — a pale, bookish male dressed in a white shirt and narrow tie, seated behind a desk in a small office, pencil in hand, poring over invoices and making notations in a dusty ledger — describes none of those numerous men and women who list their occupation as «accountant». In fact, never before have accountants been in such demand. The availability of jobs and the relatively high starting salaries for talented accounting graduates have lured hundreds of thousands of students into accounting classes in colleges and universities. The accounting profession will always attract people who enjoy numerical organization. It offers the qualified person an opportunity to move ahead quickly in today's business world. Accounting, like statistics, is often called a language of business because of its ability to communicate financial information. It involves recording and summarizing an organization's transactions or business deals and reporting them in the form of financial statements. 516 UNIT V THE FIELD It is a basic and vital element in every modern business. It records the growth or decline of the business. The field of accounting is divided into three broad divisions: public, private and governmental. A certified public accountant (CPA) AmE or a chartered accountant — BrE must pass a series of examinations, after which he or she receives a certificate. The simple fact of having passed the certifying examination gives them an advantage over those who haven't. 517 Basic English of Economics A. LATYGINA CPAs can offer their services to the public on an individual consultant basis for which they receive a fee. Some CPAs perform work for firms, corporations or government offices and receive a salary. Private accountants, who are employees of individual businesses, handle the financial records of a business. They are responsible for preparing the financial statements and are salaried rather than paid a fee. Government accountants are employed by governmental agencies. They are responsible for monitoring the receipt and payment of funds. All of these accountants work on a salary basis. Salaried positions with business or government offer strong security, since salaried accountants are not affected by layoff or seasonal changes in the work load as are industrial or clerical workers. Through effective application of commonly accepted accounting system, private, public and governmental accountants provide accurate and timely financial information that is necessary for organizational decision-making. Exercises in Word Study Ex.l. Form nouns from the following verbs: qualify, grow, divide, certify, examine, consult, employ. 518 Basic English of Economics Ex.2. Some words change their stress when they change their part of speech. Underline the stressed syllable in these words. to employ to record to examine to certify to qualify to govern the employee the record the examination the certificate the qualification governmental 519 UNIT V THE FIELD OF ACCOUNTING Ex.3. Give the English for: 6yx06J1iK; nyxe Ba)KJIHBHi eneMeHT B cyqac110MY 6i3Heci; peccrrpYBaTH 3POCTaHHR MH 3aHenaA 6i3Hecy; AUTIJIOMOBaHVfä 6yxrwrrep BH1110i OTPHMaTH npor10HYBaTu nocnyru; OTPMMYBaTH T'0Hopap; OTPHMYBaTH 3ap06iTHY 11J1aTy•, MaTH cnpaBY 3 (l)iHaHCOB010 J10KYMeHTaui€10•, rorryBarru (l)iHaHc0BHii 3BiT•, 0Åepxa11H}1 (l)0HÅiB; 3BiJ1bHeHHW, 3MiHVi y p060H0MY HaBa1-1TOICHHi, 6yxrajrrepcbKa KHura, yrma. Ex.4. Match words from list A with words from list B that have a similar meaning. deal benefit hire layoff vital growth decline perform receive salary prepare employ advantage transaction get ready payment obtain accomplish deterioration expansion essential fire Ex.5. Find suitable opposites to the following words and phrases: decline; employer; employ; advantage; qualified; to fail an examination; to receive a fee; private accountants. 520 Basic English of Economics Ex.6. Match the nouns in the left-hand column with the words in the right-hand column. Translate the phrases into Ukrainian. of funds of goods of a licence of an order of payment of a credit accounting of competitive offer of a consignment statistical business chinese financial receipt banking cost Income management payroll salary Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below. aQ/nåhgpen'& aØountancy financial remrds work load accounting b"åeep/hg CPA 521 anunting UNIT V THE FIELD OF ACCOUNTING l)the recording, classifying, summarizing, and interpreting of those business activities that can be expressed in monetary terms; 2) an accountant who has passed examinations required by the state licensing officials; 3) the systematic recording of financial information; 4) a specilized branch of accounting that deals with government agencies; 5) a dismissal from employment, esp. temporary; 6) financial documents or computer files on which information is stored; 7) an amount of work to be done; 8) the profession of or work done by an accountant; 9) a period at the end of which the totals for the money coming into and money going out of a business are calculated. Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. There was in US exports overseas last year. 2 in the stock market scared investors. 3. She . all the financial records for the law firm. 4. The boss . . . the quality of her employees' work. 5. In a recession, there are often mass . . . of factory workers. 6. does the accounting for a business. 7. We calculated the total profit at the end of the . . . period. 522 UNIT V THE FIELD 8. 9. 10. 1 My friend got a degree in The cash register . . . the purchase and printed a receipt. In Great Britain, the term for CPA is . 1. Private and government accountants usually work on a . . . basis. 12. CPAs who offer their services to the public on an individual consultant basis are paid fees, salary, chartered accountant, recorded, accountancy, accounting, a CPA, layoffs, monitors, handles, the decline, growth. a 523 A. UTYGINA Basic English of Economics Ex.9. Fill in the missing prepositions. It is difficult a firm to plan the future when the managers do not know where the firm stands financially. Accounting is the primary means . . . which financial information a firm is communicated. Accounting can provide answers . . . interested persons both . . . the firm and . . . the firm. The balance sheet and the income statement are two basic statements used making many decisions concerning a firm's operations. analyzing these two statements, a firm can answer many questions its profitability, short term financial position, activity levels, and long-term debt obligations. Business firms may hire their own private accountants, or they may use the services .. a public accounting firm. (of, for (2), by (2), about (2), in, to, within, outside) Ex.10. Build your vocabulary. Learn phrasal verbs for business! lay-off — the act of dismissing workers because there is not enough work. Read these sentences carefully and translate them into Ukrainian. 1. They announced the temporary lay-off of 8000 car workers. 2. 500 lay-offs were announced in December. 3. The company will have to announce 150 lay-offs if sales don't improve. 4. If we lose the contract then we will have to announce lay-offs of some staff. 524 UNIT V THE FIELD 5. We are hoping to avoid closing our plants and thus our workers won't be affected by lay-off. 6. In a recession, there are often mass lay-offs of factory workers. 7. They've had to cut back production which resulted in mass layoffs. OF ACCOUNTING Exercises in Comprehension Ex.l. Answer the following questions: 1. What explains a great popularity of the profession of an accountant? 2. What does accounting offer a qualified person? 3. Why is accounting called «the language of business»? 4. Why is accounting a basic and vital element in every modern business? 5. What is the field of accounting divided into? 6. What is a certified public accountant? What is the British equivalent? 7. What do CPAs receive fees for? 8. Who can CPAs perform work for? 9. What are private accountants responsible for? Are they paid a fee? What areas does a government accountant deal with? ll. Why do salaried accounting jobs offer security? 12. Do CPAs have any advantages over other accountants? 13. What information do accountants provide? 10. Ex.2. Sum up what you remember about: CPAs; private accountants; government accountants. 525 A. UTYGINA Basic English of Economics Grammar Revision Modal Verbs. Obligation and Necessity. must, have to, should, ought to, need l. a) Must is used for strong obligations: rules or laws Investors must pay taxes. advice or recommendations You must take your medicine regularly if you want to get better. Obligations that the speaker imposes on him or herself I must etu earl tomorrow. b) Mustn't is used to express strong disapproval, or that something is prohibited You mustn't smoke. 2. a) Have to is used when the obligation comes from someone else or an external authority. You have to wear a uniform — that is the company rule. b) Don't have to is used to express the idea that there is no law, rule or requirement to make you do something. I don't have to get up early on Sundays. 3. a) Need, need to is used to talk about necessities, rather than obligations I need to get my hair cut. b) Needn't expresses the speaker's opinion that something isn't necessary You needn't fill in the form; the receptionist will do it for you. UNIT V THE FIELD 4. Should, ought to are used to express milder obligations; they are often used when giving advice You should alwa s kee recei ts when ou bu clothes. Ex.l. Complete these sentences using the correct form Of must, have to, need, should, ought to. 3. You not worry about the article. I'll translate it later. The drivers in Ukraine wear seat belts. You have medical insurance when you go abroad. 4. You to buy a licence if you want to set up your own business. 5. The customers not pass this point. They to transfer money yesterday. A CPA pass a series of examinations, after which he receives a certificate. 1. 2. 6. 7. 527 A. UTYGINA Basic English of Economics 9. You have the financial statement ready by the end of the month. Ileinvite her to the meeting. 10. You to fill in this application form. 8. 1 1 . You to consult an expert to identify this document. 296 UNlT V FlELD ТНЕ 12. УОИ 0F ДССОИНТШС, not takc а саг to gct to thc officc. 1'11 gladly give 13. 14. This уои Не а is lifl.serious, to send hc а lctter not of apology.joke about it. 15. TheyМу boss was ill follow and Ihis advice.to attcnd that press confcrence. 16. Ех.2. Translate into English: 1. встановлое правила, а ви виконувати Тх. 2. новий товар дуже висока. Ви знизити й. 3. Я вважаю, що BiH повинен на цей у цього 4. Почекай трошки, я повинен продивитися документи. 5. T06i не втручатися в цю брудну справу. б. Йому довелося на багато запитань Ради 7. Йому не нехтувати твоТми корисними порадами. 8. Ви вивчити попит перш розпочинати виробницгво 9. T06i допомогти Тй. Вона тце не складала 3BiT. 10. Коли я роботу, я змушений був переТхати на iHmy квартиру. 11. сплачувати податок на грош(, вони одержують 12. Ви 13. Ви приходити на роботу вчасно. цей факс негайно. 529 A. UTYGINA Basic English of Economics 14. Ти не повинен розмовляти з покупцями таким чином. Е х.З. Маке ир sentences about your university environment. Your sentences should describe: obligation prohibition по necessity to (l() something Speech and Discussion Ex.l. Explain why accounting is a basic and vital element in modern business. Ex.2. Speak about some of the qualifications, both technical and personal, that you think an accountant must have in order to achieve success in his or her field. Ex.3. Discuss with your groupmates the advantages and disadvantages of a career in accounting. Why does the profession of an «accountant» attract many young people today? Ex.4. Familiarize yourself with the following idioms, consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them: 1. I don't believe the company made that profit. Peter has been cooking the books so that he can get a good price for the business. 2. Mr. Brown had to foot the bill for his son. 3. I'll be hanging up my boots next year. I think I deserve a rest after running the business for thirty years. UNlT V FlELD 4. J can see you have set your mind on taking the job, so I won't try to dissuade you. 5. I warned you that the idea would never work; what a pity you wouldn't listen to reason. Ex.5. Comment on the following: «When two men in business always agree, one of them is unnecessary.» (Anonymous) 298 531 UNIT V THE FIELD OF ACCOUNTING LESSON 2 Text: Budgeting Grammar: Modal Verbs. Certainty, Possibility, Probability. Terms to remember: budget for, v nna1-1YBarru Maii6YTHi npH6YTKH i BMTpaTH budgeting CKJ1aAar-1HH 610Å)KeTY motivate (v) CllOHYKaTH operating plan BMP06HHLIHVi nnaH anticipate (v) oqiKYBarrn•, nepeA6aqaTH primary OCHOBHUÜ; HaiBa)KJIHBi111Hii framework paMKH', MOKa•, cTpyKTypa fiscal yearpiK•, (l)iHaHCOBHV1 piK arbitrarily AOBiJ1bHO•, BHnaAKOBO master budget POJIOBHUM 610ÅhCT, 3araJ1bHHV1 6k0Å>Kerr control device KOHTPOJ1bHHV1 3aci6, CTaHnaPTHH1i TIJ1aH AiW1bHOCTi 6i3Hecy Budgeting A financial plan, showing how much money a person or organization expects to eam and spend is called a budget. All companies have to budget for, or plan, their costs and have a budget. The preparation of a budget is an important aspect of a company's success. The preparation of it helps management to establish short-term and long-term goals and standards for the company, motivates employees to achieve company goals, provides for a systematic review of performance. The success of 532 UNIT V THE FIELD OF ACCOUNTING the budgeting process depends on the cooperation of all employees. Budget (of a business) is the financial operating plan for an organization for a fixed period. The budget shows what income is anticipated and how the resources will be used during the budget Period. It is a forecast used by a business to plan and control. 533 A. UTYGINA Basic English of Economics The primary objective of the budget is to establish a financial framework for the operations of the business. The accounting period for the budget is usually either the calendar year or the fiscal year. The fiscal year is any arbitrarily chosen twelve-month period that does not correspond to the calendar year. The total of separate budgets from different departments within a company that shows in detail how the entire business operates is called master budget. As the business year progresses, management can use the budget as a control device that permits monitoring of the company's operations. Exercises in Word Study Ex.l. Form nouns from the following verbs: prepare, establish, motivate, achieve, cooperate, operate, anticipate, permit. Ex.2. Give the English for: ycnix K0Mr1aHii•, BCTaHOBJ110BaTH AOBrOCTPOKOBi uini; npouec CICJ1anaHHH 6K)JVKeTy•, BCTaHOBneHHPi CTPOK; FIPH6YTOK; nporH03•, HaiBa)KJIHBiL11a MeTa•, 610A)KeTHHMf piK•, rOJIOBHUM BHKOPHCTOBYBaTH 610Å)1€eT 51K KOHTPOJTbE11dM gaci6; KOHTPOJUOBaTH p060TY KOM11aHii; BHP06HHt-1Hii 11J1aF1•, nepi0A. Ex.3. Match words from list A with words from list B that have a similar meaning: operate sum goal main progress achieve expect A. UTYGINA Basic English of Economics definite systematic fixed reach anticipate regular primary allow permit objective total function develop 300 A. UTYGINA Basic English of Economics Ex.4. Find suitable opposites to the following words: short-term; periodic; failure; expenditure; secondary. Ex.5. Study the following phrases. Translate them into Ukrainian. ad budget, annual budget, approved budget, consumer budget, current budget, deficit-free budget, household budget, low budget, master budget, operating budget, overall budget, surplus budget. Ex.6. Match the nouns in the left-hand column with the verbs in the right-hand column. Translate the phrases into Ukrainian: carry out negotiate offer the budgetprepare realize revise draw up the financial operating increase reduce set approve Ex.7. Look at the words and them with the correct below. submit plancut pass phrases in the box. Match definition from the list UNIT V THE FIELD OF ACCOUNTING røcøs njoldevice masterbu&et pLJdgøt l) a plan of expected income and expenditure for a particular period of time; 2) the total of separate budgets from different departments within a company; 3) a standard plan for the performance of a business by which its operations may be measured and regulated; 4) a statement about what one thinks will happen in the future; 5) related to a 12-month period of business activity; 6) the people who control a company; 7) an aim or target; 8) the main internal workings of business. Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. The financial director is responsible for the firm's 2. involves setting financial goals and standards for an enterprise. 3. Our company's is the calendar year, January 1 to December 31. 4. The new channel will be launched with a $3 million promotional . 5. A desire to go to business school her to study mathematics hard. 6. She was given a of € 25 000 to launch the magazine. 537 A. UTYGINA Basic English of Economics 7. In the UK, the government's runs from 6 April to the following 5 April. 8. Our financial manager will calculate the total profit at the end of the . . . period. 9. The boss ... the quality of her employees' work. 10. The of this month's sales is up 20 %. 11. The company ... for a 5% increase in sales. 12. The company has not set for the project. a budget, total, monitors, accounting, financial year, motivates, budgeted for, budget (2), fiscal year, budgeting, budgets. 302 UNIT V THE FIELD OF ACCOUNTING Ex.9. Fill in the missing prepositions. Budgeting Budgeting is the process . . . preparing budgets and exercising budgetary control. Budgeting encourages forward thinking managers; serves to help coordinate different functions and departments the firm. It defines the responsibilities individual managers, provides a framework delegating responsibility; and provides an instrument control; and a basis modifying plans, where necessary. (of (2), by, in, for (3) Ex.10. Build your vocabulary. Learn phrasal verbs for business! to write something off — to remove a debt from a company's accounts because the money cannot be collected; to remove an asset that has no value. Read these sentences carefully and translate them into Ukrainian. l . The company was forced to write off almost $ 40 million in debts. 2. We knew we'd never get the money back so we just wrote the loan off. 3. If they can't recover the losses, they may be forced to write them off. 4. After 10 years. the debt was written off. 5. The bank was forced to write off the loan. 539 UNIT V THE FIELD OF ACCOUNTING 6• It was a disastrous year in which the company wrote off $ 27() million in investments. 7. The losses had to be written off. 8. We decided to write off the loan. 9• The company can't recover its losses, so the directors have 1()• The US government agreed to write off debts of $ 170 billion, 540 Basic English of Economics A. LATYGINA Exercises in Comprehension Ex.l. Answer the following questions: 1. What does «to budget for» mean? 2. What is a budget? What does it show? 3. Why is the preparation of a budget an important aspect of a company's success? 4. What is the primary objective of the budget? 5. What is the customary accounting period for the budget? 6. What is a master budget? 7. What can a master budget be used for? 8. What is a control device? 9. What does the success of the budgeting process depend on? Ex.2. Sum up what you remember about: a budget and budgeting; the fiscal year; a master budget. Ex.3. Translate into English: AepxaBHHii 610A>KCT JIepxaBHHVi 610JVKer — ue nnar-l (l)opMYBaHHfl Ta BHKOPHC1aHYIA pecypciB 3a6e3neqeHH51 3aBJxaHb i (l)YHK11ivi neHTpaJ1bHHMH MicneBHMH opraHaMH H BJ1aJLH. BiH e BZD1€eJ1erv1 BIUIHBY lla Haui0HaJ1b Y eKOHOMiKY Ta Bin06paxac eK0H0MiqHY cvrryaui10 B KpaiHi. bt0JVKCT C rlJ1aHOM Toro, flKi BHAH AiSIJ1bHOCTi MatOTb cKiJ1bKH K0111TiB 6YJte BHTpaqaT1,tc51 Ha 060pouy, oxopony 3AOP0B'fl, OCBiTY' couiaJ1bHi IIOCJIYJ*H Ta I-la iHL11i uporpaMH. Y nepi0JLH eK0H0MiC11toro gpocera11H$1 3'*BJISICTbCS1 6iJ1b1LIC p060qøx MiC1(b. Jlep)1caBa Mae MO)KJIHBiCTb (l)inaHCYBaTH 6iJ1b111e nporpaM. Basic English of Economics 304 UNIT V THE FIELD OF ACCOUNTING Grammar Revision Modal Verbs Certainty, Possibility, Probability must, may, might, could, can't, should, ought to I. We use must or can't + infinitive to say we are certain about something; we have some evidence to reach this conclusion. We use must to indicate «positive» certainty and can't to indicate «negative» certainty. We don't use mustn't or can to talk about certainty. She must be very happy. She has finished her experiments. That can't be our business partner. He is arriving tomorrow. 2. We use may, might or could + infinitive when we are speculating that something is possible. She may/might/could pass her exam this time. (It's possible that she will pass her exam) 3. We use should and ought to + infinitive to show that something is probable now or in the future. He should/ought to pass his exams. (He will probably pass) Ex.l. Complete the following sentences with an appropriate modal verb form. 3. You be joking. The house is not worth that much. It's not a good time to visit Italy. The weather at this time of the year. She be ill; She looks so pale. 4. It be true. 5. You see interesting samples at the exhibition. It be late as the offices are closed. 1. 2. 6. 543 be awful UNIT V THE FIELD OF ACCOUNTING 7. 8. This contract to be profitable. It's impossible. It be the correct answer. 544 UNIT V THE FIELD OF ACCOUNTING A. LATYGINA 9. She be at home. I saw her in the office 10 minutes ago. 10. 1 have some new information for you tonight. I l. He has been working all day. Ile be very tired. 12. There be another rise in the price of sugar soon. 13. He get this job. He has got all the necessary qualifications. 14. I am not sure whether I can help you. I not enough time. have Ex.2. Translate into English: l . He MO)Ke 6YTH, 11106 BH 3HaJIH BCix criiBp06iTHHKiB! 2. 3. Ma6YTb BOHa npatuoe Hall piqHMM 3BiTOM. 4. 5. 6. 7. 8. 3aäJIY B HaL11 9. 51 He 6yny 3aBa>KaT1d T06i. Ma6YTb y Te6e e BOKJIHBi cnpaBH. boc rlOBHHeH 3apa3 6YTH TaM. I-IaBpflJ1 3MO)KY CKJ1aCTH 3BiT. byxranrrepa HeMae, BiH Mae 6YTH y KepiBHHUTBa (l)ipMH. BH HaneBHe 3aTBepAHTe 610A)1ceT 3aBTpa. Ma6YTb, ycrlix K0MnaHii 6yme 3aJIOKaTH Bia HanonerJIHB0i npaqi ICO>KHOro 3 Hac. Ma6YTb, BOHa nyxe macJIHBa. Pana ÅHPeKTOPiB 3aTBepÅHJ1a Ti npoeKT. 545 Basic English of Economics 10. lie MONC 6YTH, 11106 BH Ille npaUIOBaJIH Han 610AhCTOM! 11. Bxe 2-ra roAHHa. BiH MO)Ke 110BepHYTHc51 y 6YAb-51KY' XBHJIHHY. 12. 51 He 3Ha10 AOcrreMeHHO, ane JIHCT, MO)KJIHBO, 3apa3 y Hei. 13. Xoqa B)Ke Pi Ili3H0, BiH, MO)KJIHBO, BCe Ille OHiKye Hau10i iH(bopMauii. 14. 51 Hiqoro He rrpo Hb01'O. Ma6YTb, BiH neCb 3a KOPAOHOM B"Ke r10Bep11YBcs1 no KH€Ba. Speech and Discussion Ex.l. Discuss the importance of a budget for the company and the consequences that might result from its absence. Ex.2. Familiarize yourself with the following idioms, consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them: I. We spent days working on a solution but it led us up a blind alley. 2. I shall sugar the pill by sending John on a week's paid holiday before I make him redundant. 3. I was offered quite a well-paid job, but the work wouldn't have been my cup of tea. 4. We need to rethink our plan in light of this new information. 5. With the drop in sales, the company cut the number of employees to the bone. 546 UNIT V THE FIELD OF ACCOUNTING Ex.3. Comment on the following: «lt is easier to forgive an enemy than a friend.» (Anonymous) 547 A. Basic English of Economics I-ATYGINA LESSON 3 Text: Auditing Grammar: Modal Verbs with the Perfect Infinitive auditing 3AiiiCHeHH51 aynnrry•, nepeBipKa 3BiTHOCTi; peBi3YBaHH}1 review nepeBipKa; nepeBipflTH evaluation OLIiHiOBaHH51, OUiHKa; aHani3 (naHux) audit ayAHT; rrepeBiprca, peBi3iw, ayÅHTopcbKa nepeBipyca d)iHaHCOBHX onepauiä auditor outside/external/independ ent audit internal audit accounting department fiscal affairs the standard operating procedures books accounting records ayAHTOP, 6yxramep-peBi30p 30BHi111Hiii aynurr BHYTpi111Hi1,ä ayAHT 6yxraJITepiq (l)iHaHcoBi cnpaBH cTawxapTHi MeTOJIH p060TH 6yxraJITepcbKi KHHrH 6yxraJrrepcbKi paxyHKH, J10KYMeHTauiS1 maxpaiicTB0 fraud accurate adequate •roqHHii, npaBHJ1bHHii uto Binn0Binae BHMOraM, BiA110BiAHHii, KONtne1VHTHHi 548 A. Basic English of Economics AOCTY11HHii accessible Terms to remember: 549 UNIT V THE FIELD OF ACCOUNTING Auditing Auditing is an accounting function that involves the review and evaluation of financial records of a company. It is done by auditors. These reviews are called audits. Outside/external audits are a normal and regular part of business practice. In addition, many corporations maintain a continuous internal audit by their own accounting departments. They review operating procedures and financial records and report to management on the cunent state of the company's fiscal affairs. The internal auditors make suggestions to management for improvements in the standard operating procedures and check the accounting records. Independent auditing is done by accountants who are not employees of the organization whose books they examine. The independent accountant is almost always a CPA. Independent accountants review the business's operating activities; they have to check the company's internal control mechanisms; they examine financial statements and the accounting records. They try to prevent «creative accounting» and they have to make an official statement that no fraud is taking place. So they don't just look at the figures, but at the internal processes as well — they have to audit the way the figures are collected. An audit can take several days, even for a fairly small company. M anagement must act upon the information in the financial records; the auditor ensures that this information is accurate, adequate, and accessible. 550 A. UTYGINA Basic English of Economics Exercises in Word Study Ex.l. Form nouns from the following verbs: evaluate, improve, examine, act, inform, organize, manage. Ex.2. The following words can be used in more than one way. Underline the correct part of speech for each word as it is used in the text. 1. review a) noun 2. record a) noun 3. audit 4. 5. practice report 6. check a) noun a) noun a) noun a) noun 7. book a) noun 8. state a) noun b) verb b) verb b) verb b) verb b) verb b) verb b) verb b) verb Ex.3. Give the English for: nepeBiprca Ta aHaJ1i3 d)iHaHCOBUX AOKYMeHTiB, ayuwrop, 30BHiL11HiPi ayÅMT, BHYTpiL11HiEi ayÅMT, 6yxraJITepiA, d)iHaHCOBi cnpaBH K0MnaHii, nepeBip51TH 6yxrayrrepcbKY J10KYMewraui10, nepeBipRTH 6yxramepcbKi KHUI'H, CTEIHAapTHi MeTOÅH p060TM, TOLIHa iHd)opMauifl. Ex.4. Match words from list A with words from list B that have a similar meaning. outside audit uncontrolled 551 A. Basic English of Economics review evaluation check accurate adequate accessible procedure independent process sufficient achievable examination correct examine analysis external audit 552 UNIT V THE FIELD OF ACCOUNTING Ex.5. Find suitable opposites to the following words and phrases: incorrect, insufficient, unachievable, dependent, external audit, abnormal, irregular. Ex.6. Match the nouns in the left-hand column with the adjectives in the right-hand column. Translate the phrases into Ukrainian. approximate auditorstatistical external auditinternal evaluationannual unscheduled subjective travelling general Ex.7. The following diagram shows some very commonly used words with «an audit». Study the diagram, consult your dictionary and translate these word combinations into Ukrainian. Make up sentences with theme 553 A. UTYGINA Basic English of Economics Ex.8. Look at the words and phrases in the box. Match them with the correct definition from the list below. financials—en ardoper$ procedu intemal audit udltor enema/audit detailed inspection of the accounts of an organization by a professionally trained person; 2) an audit carried out by a person not employed by the company to check that the accounts are accurate and honest; 3) a professionally trained person who examines the accounts of an organization to check that they are true and correct; 4) a review and evaluation of a company's financial records by employees of the same company; 5) an organization's established methods of carrying out its operating and recording functions; 6) an analysis, study; 7) the books, files or computer records where a company's accounts are kept; 8) a report showing profit and loss for a business or institution. 554 UNIT V THE FIELD OF ACCOUNTING Ex.9. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. I . . were called in to inspect the accounts. 2. An accountant did a year-end . . . of our financial records. firm audited the company every year. 4. are not employees of the organization whose books they examine. 5. The tax inspector wants to examine 6. Many companies employ their own accountants to maintain . are a normal and regular part of business practice. 8. Auditors review and report to the management on the current state of the company's . in the form of an Auditor's Report. 9. An accountant did . . . of the company's financial health. 10.The numbers in the report are accurate; an evaluation; fiscal affairs; financial records; outsid audits; an internal audit; the books; independent accountants; th accounting; audit; the auditors. Ex.10. Fill in the missing prepositions: An auditor is an accountant, independent ... a company, who is appointed . . . the shareholders to ensure that the annual accounts give a true and fair view . . . the state affairs ... the company. The accounts should be prepared using the accepted methods accountancy. Auditors will also try to ensure that the organization's accounting systems do not allow any fraud or stealing to occur the company's funds. Large organizations might carry . . . an intemal audit themselves to ensure that their accounting practices and procedures are accurate and efficient. 555 A. Basic English of Economics (of (5), by, from, out) Ex.ll. Build your vocabulary. Learn phrasal verbs for business! to bail somebody or — to rescue smb / sthfrom difficulties, something out (ofsomething) especiallyfinancial dificulties. Read these sentences carefully and translate them into Ukrainian. l. The government has refused to bail the company out again. 2. Private business helped to bail out the museum. 3. We couldn't get any cash from our parent company to bail us out. 4. A $ 40 million government loan bailed the industry out of financial crisis. S. The airline had to be bailed out by the government. 6. When banks go bust, the government usually bails them out. 7. A millionaire fan has offered to bail out the football club. 8. The company has been in trouble before but this time the government will not bail it out. 9. The telecoms company was bailed out by its shareholders. 10.The state will not be able to go on bailing out loss — making companies. 556 UNIT V THE FIELD OF ACCOUNTING A. LATYGINA Exercises in Comprehension Ex.l. Answer the following questions: l . What is auditing? 2. Who carries out audits? Who are usually the clients? 3. What is an internal audit? 4. What do the internal auditors review? 5. What suggestions do the internal auditors make to management? 6. What is an independent audit? Who conducts most independent audits? 7. What do the independent auditors review? 8. What do they try to prevent? 9. What official statement do independent auditors have to make? 10. What does the external auditor ensure? Ex.2. Indicate whether each of the following statements is true or false. 1. The people who keep the financial records for an organization are the same people who carry out an audit of those records. 2. An external auditor is only invited when a company is having financial difficulties. 3. The more internal controls an organization has, the more efficient is its performance. 4. Many companies nowadays employ accountants of their own to maintain a continuous internal audit. 5. Internal auditors try to make sure that the operating sections Of a company follow the policies established by management. 6. The reports of internal auditors always reach the people in management. 7. CPAs seldom do independent auditing. 8. External auditors examine only the figures. 557 Basic English of Economics 9. Internal auditors have to make an official statement that fraud is taking place in their company. 10. Only very large corporations need external audits. Ex.3. Sum up what you remember about: + auditing intemal audits independent audits Grammar Revision Modal with Verbs Infinitiv the Perfect In the previous lesson we looked at how thc modals can, may, might, must, could, should, ought to are used to talk about possibility, probability and certainty in the prcscnt and future. Here we shall look at how these modals are used to talk about the same ideas in the past. Must + Perfect Infinitive expresses the speaker's certainty that something has happened. If she is not here by now, something must have happened. Could/may/might + Perfect Infinitive express the idea that there is a possibility that something has happened. She looks miserable. She could /may/might have lost her job. (perhaps she has lost her job) Can't /couldn't + Perfect Infinitive express the speaker's certainty that something has not happened. She can 't/couldn't have gone; her coat is still here. May not/might not + Perfect Infinitive express the idea that it is possible that something didn 't happen. Nobody is in the office. They may not/might not have received our message. Should/ought to + Perfect Infinitive indicate that an action considered desirable was not carried out. You ought to/should have warned your employer. 558 no UNIT V THE FIELD OF ACCOUNTING Shouldn't/oughtn't to + Perfect Infinitive indicate that an action considered undesirable was carried out. You shouldn't /oughtn't to have told her this news. Ex.l. Complete the following sentences with an appropriate modal verb from the box below. should, couldn't, ought to, must, can't, shouldn't, may l. She have lost her way; she must have missed the traim 2. Has she phoned yet? She have phoned two hours ago. 3. I'm not waiting much longer. Ile have been here h€ntrs ago. 4. S. Ihe Ile is busback already. have Ilebeen at the have airport. started I le promised very early.to meet us 559 Basic English of Economics A. LATYGINA 6. Do you remember reading about it in the newspapers? No have been abroad at the time. 7. We had a very good dinner for $3 at a restaurant yesterday. You have had a very good dinner if you only paid $3. 8. I saw your boss in the theatre yesterday. You him; he is still abroad. 9. The letter have been posted long ago. 10. You have greeted him first. have seen 11. She have made such a mistake. 12. You have left your glasses in the car. 13. Give him a ring. He have arrived by now. 14. Theyhave followed her advice. Now they regret not to have done so. 1 5. You have spoken to your employee in such a tone. I am sure, you have hurt him. 16. He have left without saying good-bye. 17. He have concealed something from his employer. 18. They have delayed the discussion of the problem. Ex.2. Translate into English. l . He MO)Ke 6YTH, 11106 BiH AaB 3romy BUICOHaTH TaKY KiJ1bKiCTb P060TH 3a TaKHM KOPOTKHM TepMiH. 2. 3. 4. He MO)Ke 6YTH, 11106 BOHH noci He BHPiUIHJIH Liboro rlHTaHHfl. 3apa3 BOHH, MO)KJIHBO, B)Ke 3aKiHHHJIH CBiVi AOCJ1iA. T06i 110Tpi6H0 6yno XBOPHÄ. Vf0MY Bqopa; TH 3HaB, Luo BiH 560 UNIT V THE FIELD OF ACCOUNTING 5. 3BnqaMHO, TM r10BHHHa 6yna nonepeAHTH ix paylime. LIOMY TM Iyoro He 3P06HJ1a? 6. 7. Horo 3ÅOPOB'51 r10Kpauxmnocfl. BiH, MO)KJIHBO, KHHYB naJIHTH. BiH, MO)KJIHBO, He YCBiAOMHB ozxpagy r BCiei Ba)KJIHBOCTi 110 Bi - ÅOMneHHfl. 8. LILOCb, MO)KJIHBO, 3aTPHMano noro. BiH 110BHHeH 6YB Y)Ke 110BepHyrucfl. 9. MONCIHBO, TH He 31)03YMiB IT. Bona He xoTina 06pa3HTH ere6e • 10. BOHH, MO)KJIHBO, He CKOPOTWIH CBOT BHTPaTH. OCb HOMY BOHH 3apa3 e 60P)KHHKaMH. I l . B Hei, Ma6YTb, He 6yno )KOAHOFO Il-laHcy nonepeAHTH Mede gagnaJ1eriÅb. 12. no 11boro qacy BiH, MO)KJIHBO, CllJ1aTHB Y)l€e BCi 60prH. 561 UNIT V THE FIELD OF ACCOUNTING Speech and Discussion Ex.l. Explain what the auditing function of accounting involve. Ex.2. Discuss with your groupmates various functions of internal and external auditors. Ex.3. Do you think auditing is useful to a business? Has the attitude toward auditing changed in modern times? Ex.4. Would you like to work as an external auditor? Do you think they get a very friendly welcome at the companies whose accounts they audit? If not, why not? Ex.5. Familiarize yourself with the following idioms, consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them: l. The company's owners are old and tired; the company needs some new blood. 2. He visits once in a blue moon; we almost never see him. 3. She started with no money and pulled herself up by her bootstraps to run her own company. 4. The bottom line is that we have to increase our sales or take a cut in pay. 5. He went broke without even a penny. 562 UNIT V THE FIELD OF ACCOUNTING Ex.6. Comment on the following: massive, determined action.» path to success is to take (Anthony Robbins) 563 Basic English of Economics A. UTYGINA TEST 5 (MODULE V) Choose the word or word combination to match the definition. 1. An accountant who has passed examinations required by the state licensing officials. a) government accountant b) private accountant c) certified public accountant 2. A plan of expected income and expenditure for a particular period of time. a) budget b) business plan c) forecast 3. The total of separate budgets from different departments within a company. a) budget account b) master budget c) bargain 4. The people who control a company. a) associates b) assistants c) management 5. The period used by companies and governments for accounting and tax purposes. a) control device b) fiscal year c) accounting period 6. A detailed inspection of the accounts of an organization by a professionally trained person. a) analysis b) evaluation c) audit 7. A report showing profit and loss for a business or institution. a) creative accounting b) financial statement c) standard operating procedure 8. The books, files or computer records where a company's accounts are kept. 564 Basic English of Economics a) books b) box files c) recorded delivery 9. An audit carried out by a person not employed by the company• a) interim audit b) internal audit c) external audit 10, An aim or target. a) observation b) objective c) obligation 565 UNIT V THE FIELD OF ACCOUNTING 11. A statement about what one thinks will happen in the future. a) forger b) forfeitc) forecast 12. The amount of work to be done. a) work permit b) work load c) work release 13. A specialized branch of accounting that deals with government agencies. a) creative accounting b) governmental accounting c) current cost accounting 14. The recording of all money received into and paid out of a company in a book or on a computer file. a) bookkeeping b) auditing c) accounting 15. Dismissing a worker for a period of time. a) mployment b) e lay-off c) sack 16. The person appointed by the court to close a company and dispose of its assets. a) employer b) creditor c) liquidator 17. A person or an organization that you owe money to. a) receiver b) creditor c) administrator 18. To be unable to pay your debts. a) instalment b) inefficient c) insolvent 19. To become bankrupt. c) rescue a) go too far b) go bust 20. A reduction in the amount or quality of something. a) decline b) growth c) prosperity 566 MODULEVI MONEY AND BANKING LESSON 1 Text: Money and its Functions Grammar: Progress Test IV (Modal Verbs) Terms to remember: crime whale beads colli paper bills value trust (v) medium of exchange measure of value yardstick 3J10HHW, 3J10/1iSIHHS1 bookkeeping 6yxraJITepiw, paxiBHHUTBO 3aci6 3aomanxeHHfl 36epiraTw, YTPHMYBaTH store of value retain (v) accumulate (v) counterfeit (v) KHT HaMHCTO•, 6ycH MOHeTa nanepoBi 6aHKHOTH uiHa, BapTiCTb•, UiHHiCTb AOBiPflTH 3aci6 06MiHY MiPHTlO BapTOCTi MiPHJICV, MiPKa; KpHTepi1i HaKorlHHYBaTH rlimp06JIHTH Money and its Functions In songs and popular language «money» stands for many things. It's a symbol of success, it's a source of crime, and it makes the world go round. Along with the Market, Manpower and Material, Money is the last of the big M 's that make business function. It is in the centre of any business activity. Money is anything used by a society to purchase goods' services or resources. Different groups of people have used all sorts of objects as money — whale's teeth, stones, beads, gold and silver, for example. Today, the most commonly used objects are metal coins, paper bills, checks and plastic money. 320 UNIT VI MONEY AND BANKING For money to have value, it must perform certain functions, it must be easy to use, and it must be trusted. Money has three main functions in any society: Serves as a Medium of Exchange. Money, the medium of exchange, is used in one half of almost all exchange. Workers exchange labour services for money. People buy and sell goods in exchange for money. Serves as a Measure of Value. Money serves as a measure ofvalue because the prices of all products and resources are stated in terms of money. Money is used as a yardstick for all bookkeeping, budgeting and management. Represents a Store of Value. Money is a store of value because it may be held and spent later. It is a means for retaining and accumulating wealth. To perform its functions effectively, money must be divisible into units of convenient size, light and sturdy enough to be carried and used on a daily basis, stable in value, and difficult to counterfeit. Exercises in Word Study Ex.l. Form adjectives from the following nouns: symbol, success, crime, money, difference, value, product, wealth. Ex.2. The following words can be used in more than one way. Underline the correct part of speech for each word as it used in the text. 1. term a) noun 2. a) noun a) noun store 3. value b) verb b) verb b) verb 4. 569 UNIT VI MONEY AND purchase trust 6, function exchange bill stand a) noun a) noun b) verb b) verb a) noun a) noun b) verb b) verb b) verb b) verb a) noun a) noun 570 Basic English of Economics A. UTYGINA Ex.3. Give the English for: CHMBOJI ycnixy; KY11YBaTH TOBaPH Ta nocnyrw, 30JIOT0 Ta cpi6no; MOHerrm Ta 6aHKHOTm; BHKOHYBaTH d)YHKL1ii; 3aci6 06MiHy; B 06MiH Ha rpollli; Mipmno BapTocTi; CKJ1anaHH9 610Axerry•, 3aci6 3aoma)VKeH11q; ninp06JIATH rpomi. Ex.4. Match words from list A with words from list B that have a similar meaning. purchase value perform exchange represent forge riches increase keep pay money for smth. spend change retain denote accumulate complete a task wealth worth counterfeit buy Ex.5. Find suitable opposites to the following words: to represent, popular, success, value, to trust, to accumulate, similar, easy. Ex.6. Match the nouns in the left-hand column with the verbs in the right-hand column: Basic English of Economics A. UTYGINA assess decline in establish moneyexceed fluctuate in reduce offset the valueborrow transfer earn lose make save spend 322 UNIT VI MONEY AND BANKING Ex.7. What part of speech are these words? You can find out by looking in your dictionary. noun moneymaker verb adjective monetary moneyed money- monetize grubber Translate the following sentences into Ukrainian: I. He doesn't have much monetary sense; he's always wasting his money. 2. The government monetized its bonds and spent the money on new projects. 3. That new saleswoman is already a moneymaker for our company. 4. She married a man from a moneyed family. 5. He is such a money-grubber that he won't answer a question unless you tell him how much you will pay him. Ex.8. The words in the box frequently occur before «money». 573 UNIT VI MONEY AND CØea ppocke/ danger idle øulbn near 574 Basic English of Economics A. UTYGINA Find combinations that mean: l) money that is being used by the public as opposed to money left in bank accounts; 2) money easily available on loan at a low rate of interest; 3) extra money or high wages paid to people working in dangerous conditions; 4) money that is difficult to borrow because of high interest rates; 5) money that is not circulated or invested and does not earn interest; 6) an item that can be easily exchanged in the way that money can, although it is not money itself. It includes cheques and postal orders but not banknotes or coins; 7) money lent on condition that it must be repaid immediately if necessary; 8) money offered by someone to show that he/she is honest and truthful and will keep to all agreed terms and conditions; 9) the reward paid by the owners of a rescued ship or goods to the person or organization that saved it/them; 10) change for small purchases; 11) money which is moved from country to country to get the best return; 12) money paid to someone in retum for keeping silent about a crime. Basic English of Economics A. UTYGINA Ex.9. Look at the words and phrases in the box. Match them with the correct definition from the list below. va/ue levaa/v/J/ and wd/ 324 storeofvalue UNIT VI MONEY AND BANKING I) banknotes; 2) a means of payment, esp. coins and banknotes, given and accepted in buying and selling; 3) a means for retaining and accumulating wealth; 4) a single standard or «yardstick» that is used to assign values to, and compare the values of products and resources; 5) anything that is accepted as payment for products and resources; 6) the recording of all money received into and paid out of a company in a book or on a computer file; 7) the worth of something in terms of the money or goods for which it can be exchanged; 8) a large amount of money, goods or property. Ex.10. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. l. Our central aim is to make 2. Credit cards and cheques are increasingly used as . 3. Retumed goods can be exchanged for goods of an equivalent 4. You will be given a higher salary in for doing a more responsible job. 5. I ... my business partner completely. 6. She . . . most of her parents' property, but some went to her children. 7. My savings are interest. 8. A 10% profit after taxes is widely seen as for making money in a business. 577 UNIT VI MONEY AND 9. One of the most important . of my job is to see that goody are delivered on time. 10. He ... $200 to fix his car. 578 Basic English of Economics A. UTYGINA Ex.ll. Below are some of the most common terms used to describe different types of wrongdoing. Translate them into Ukrainian and match these types of wrongdoing to their definitions. Which 1. bribery a) taking goods secretly illegally in or out of a country, esp. without paying customs duty; 2. embezzlement b) illegally giving someone money so that they act in your favour; c) any illegal money-making activity; d) fixing the price of something illegally; e) illegally taking money from the organization you work for; f) hiding the criminal origin of money such as drug money; g) making or faking false documents, banknotes. 3. forgery or counterfeiting 4. fraud or racket or scam 5. market rigging 6. money laundering 7. smuggling act of wrongdoing in this exercise do you think is the most serious? Which do you think is the least serious? and Basic English of Economics A. UTYGINA Ex.12. Fill in the missing prepositions. Fraud He has tricked people out . . . their money all his life. He was sacked ... his first job when he swindled one . . . his customers making him pay the bill three times. He lost his second job when went he defrauded straight ... his his companybank account. several The end thousand came when pounds he tried whichto bribe a police officer ... offering him a gold watch. court the judge fined him a large sum ... money and sent him . . . prison several years. (of (4), from, by (2), into, in, to, for) 326 UNIT VI MONEY AND BANKING Notes: to trick a person out of his money BHAYPHTH y KOFOCb rpouli to swindle 06MaHIOBarrm•, 06nyp10BaTM to defraud 06MaHIOBarrn•, BiA6mparrm (06MaHOM) to bribe — nponoHYBaTH xa6ap; rlizucyr1MTH to fine — L11Tpad)YBaTH Ex,13. These words are often confused to spend — to waste to spend — to pay money for smth.; to use time and effort to do smth. to waste — to make poor use ofsmth. valuable; to use more ofsmth. than is necessary Complete these sentences using the correct form of one of the words above. Make your own sentences to show that you understand the difference in their meaning. 1. Let's get down to business about the contract details. We've enough time already. 2. Where is he going to his winter vacation? 3. Don't your time on him. I-le is not worth it. $50 to repair the motor in his car. 5. Governments taxpayers' money. 6. 7. 8. We are not doing anything special, just the time. He a lot of time with his girlfriend. The builder wood by ordering too much. 581 UNIT VI MONEY AND He's too difföult, so dealing with him is a of time. 10. She had to throw away the spaghetti. What a of good food! ll. They don't have any money to on luxuries. 9. 12. we so much time because the machine keeps breaking down. 13. That new computer is a of money. 14. Thank you for so much time listening to our complaints. 582 Basic English of Economics A. LATYGINA x.14. Build your vocabulary. Learn phrasal verbs for business! to lay something out — to spend money on something. a) Read these sentences carefully and translate them into Ukrainian. 1. They've laid out more than $ 1 million on new machinery. 2. No one wants to lay money out without some kind of guarantee. 3. We saved more than €15000 and laid it all out on new van. 4. A lot of money has already been laid out. 5. They have laid out a lot of money on the equipment. 6. We will have to lay out about $ 5000 on the project. 7. Around S 60000 has already been laid out on new offices. 8. Many firms are laying out vast amounts of money. 9. The company will lay out € 125000 over the next 3 years. b) Think about something you have had to spend a lot of money on. Write a sentence using lay out, to say what you bought and how much you spent. Exercises in Comprehension Ex.l. Answer the following questions: Basic English of Economics 1. What is money? 2. What objects did different groups of people use as money many years ago? 3. What are the most commonly used objects today? 4. What are the three functions that money must perform? 5. Why is money used as a medium of exchange? 6. Why does money serve as a measure of value? 7. What are the main characteristics of money? 8. Why can money be characterized as a store of value? 9. What do you enjoy spending money on? 10.How do you feel about borrowing money? Would you worry about being in debt? 328 UNIT VI MONEY AND BANKING Ex.2. Fill in the correct name for the different forms of money. The money an employee earns 2. The money a blue-collar worker gets 3. The money paid to a doctor or a lawyer for his services 4. The money pensioners get every month 5. The financial support a student gets at a university 6. Shareholders get this money once a year 7. An employee who is made redundant gets this money 8. The price of a flat/house paid to the owner every month 9. The money a company makes at the end of a successful year 10. Money we all pay to the government in one way or another Il, Money in notes and coins 12. All the money received by a person or a company The money needed to start a company 14. Money given to developing countries by richer ones 13. capital, tax, salary, fee, wage, profit, rent, pension, scholarship, cash aid dividend redundanc a ment income 585 Basic English of Economics Ex.3. Indicate whether each of the following statements is true or false. l. A barter system is a system of exchange in which goods or services are traded directly for other goods and services. 2. Primitive societies use the barter system to exchange goods and services. 3. Whale's teeth were once used as a medium of exchange. 4. Money is a common denominator that is used to compare products for purchase. A. UTYGINA 5. Spending money on a new car is an example of how money represents a store of value. 6. Stored money is protected from inflation. 7. When money retains its value over time, it has stability. 8. Exchanging goods for goods is called a measure of value. Ex.4. Sum up what you remember about money: a) as a medium of exchange; b) as a measure of value; c) as a store of value. 586 UNIT VI MONEY AND BANKING Grammar Revision GRAMMAR PROGRESS TEST IV (MODAL VERBS) Ex.l. Complete each sentence so that it contains can, must, should, have to, could, may, ought to (including negative forms). 1. 2. You You worry about your promotion. to come in early tomorrow. 4. He is always buying useless things. Hemake a lot of money. You realise that the company is in serious trouble. 5. Applications 6. All managers report to the Director who is responsible for making decisions. 7. 9. You give up smoking. I think we pay in advance. You disturb the manager while he is working. 10. I use your phone? 11. I stop work early today? I pay him tomorrow? Before you travel to Great Britain, you Mary isn't here. She get a visa. You record this interview be drinking tape.coffee in the canteen. 3. 8. 12. 13. 14. 15. 16. You be sent before 1 September. telephone from my office. 587 on UNIT VI MONEY AND BANKING buy a fresh newspaper. The boss asked me to get one. She understand what he was doing. IS. 19. This be right. He has certainly made a mistake in translation. 20. She get a rise in salary this month but I am not certain. 21. You work better if you want to finish this work on time. 22. Your manager was very kind to me. I write him a letter of thanks. 23. You do it now, it can wait till later. 24. He pass a special exam to be a CPA. 25. He pay in cash because he had left his credit card in the office. Ex.2. Complete the sentences with should have .. ., could have may have may not have ..., needn't have can't have shouldn't have l. You been here a week ago. signed that contract. He was on business trip last week. 3. If she needed money, she asked me. 4. «Where is the secretary?» «I don't know. She gone home.» got a new job. I'll phone him tonight. 6. She hasn't come. But shegot your message. You made that speech in front of an audience; nobody appreciated it. 7. 8. You really informed your employer of those changes! 9. The delegation arrived yet. 10. You warned him. Why didn't you? 588 UNIT VI MONEY AND BANKING ll.He spoken to the Personal Manager. I've already spoken to him. 12. You 1 3. bought that house. borrowed him money. It was my mistake. 14. invested all the money. I am sure he hasn't. 589 Basic English of Economics Speech and Discussion Ex.l. Discuss with your groupmates the functions of money. Do you feel it is the best means of exchange? Why or why not? Ex.2. Speak about your attitude to money. Do you spend all your money? Do you save any money? Ex.3. Interview your groupmate. Find out how careful he/she is with money. Ex.4. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them: 1. He is a whale at accounting. 2. We came to terms on the contract and signed it. 3. My partner is honest; you can set store by his promise. 4. The basic financial plan was approved, but the accountants met to iron out the wrinkles that remained. 5. For my money, this project will be very profitable. Ex.5. How good or bad are you with money? Read the questionnaire and think about your answers. 1. When you get a present of money (e.g. for your birthday), how much of it do you save? a) all of it b) most of it c) some of it d) none of it 590 UNIT VI MONEY AND BANKING 2. How many of the following things did you buy last month? Jeans, a CD, a computer game, a T-shirt a) none of them b) some of them c) most of them d) all of them 3. When you go out with your friends, how much money do you take with you? a) none b) not very much c) quite a lot d) all the money I have 4. If you see two things in a shop you really like, do you buy? a) neither of them b) one of them c) sometimes both of them d) always both of them 5. Someone asks you to give something to a charity that you like, how much money do you give? a) none b) a little c) quite a lot d) all the money I've got with me Results Mainly «a» answers: You are completely moneywise. Congratulations! Mainly «b» answers: You are pretty good with money. Keep trying! Mainly «c» answers: You are a big spender. Take care! Mainly «d» answers: You have a hole in your pocket. 591 A. UTYGINA Basic English of Economics Ex.6. Comment on the following proverbs: spent on the brain, is never spent in vain» 2. «Better go to bed supperless, than to get up in debt» LESSON 2 Text: Types of Banks Grammar: Comparison of Adjectives Terms to remember: banking be engaged in (v) Central bank the Federal Reserve System (the Fed) exchange rate intervene (v) commercial bank accept deposits (v) 6aHKiBCbKa cnpaBa make a loan (v) onepxaTH 1103MKY, HanaBaTH 1103MKY manage customers' accounts (v) merchant bank investment bank savings bank savings account the World Bank (the International Bank for reconstruction and Development) BeCTH paxyHKH KJ1i€HTiB '3aüMaTHC51 IleEITpaJ1bHH1i 6aHK (benepaJ1bHa pe3epBHa CHCTeMa BUIIOTHHÄ Kypc BTpyqaTuc51 KOMepuiVfHHii 6aHK npMüMaTH Aen03wrn (BKnaÅH) 592 (y 6aHKY) Topr0BeJ1bHHii 6aHK iHBeCTHUiäHUä 6aHK OL11aJXHnä 6aHK 011taÅHHä paxyH0K CBiTOBHä 6aHK (Mi)KHap0ABHV1 6aHK peK0HcTpYKL1ii Ta P03BHTKY) UNIT VI MONEY AND BANKING Types of Banks A bank is an institution that deals in money and provides other financial services. Banks are at the heart of any financial system. Banking is the business a bank is engaged in. There exist different types of banks but their names may v" from one country to another. Central banks such as the National Bank (Ukraine), the Bank of England (UK) or the Federal Reserve System (US) look after the government's finance and monetary policy, act as bankers for the state and for commercial banks, manage a country's reserves of gold and foreign currencies, and are responsible for issuing banknotes. They can try to have an influence on the exchange rate — the price at which their currency can be converted into other currencies. They do this by intervening on the currency markets, and moving the rate up or down by buying or selling their currency. Commercial banks deal directly with the public. They offer a wide range of services such as accepting deposits, making loans and managing customers' accounts. The aim of commercial banks is to earn profit. Merchant banks don't deal with the public. They provide services for companies. They specialize in raising capital for indusüy, arranging flotations, takeovers and mergers, and investment portfolios. Investment banks are firms that control the issue of new Securities (shares and bonds). They often represent firms in mergers and acquisitions. 593 A. UTYGINA Basic English of Economics Savings banks are financial institutions that specialize in Providing services such as savings accounts as opposed to general banking services. There are also supranational banks such as the World Bank or the International Bank for Reconstruction and Development Which are generally concerned with economic development. Exercises in Word Study Ex.l. Form nouns from the following adjectives: banking, financial, national, governmental, commercial, profitable, industrial, monetary. Ex.2. Give the English for: ycTaHOBa, 51Ka Mae cnpaBY 3 rp0LLIHMa•, I-raAaBaTH (biHaHcoBi IIOCJIYIW, 6aHKiBCbKa cr1paBa•, I-laniOHaJ1bHV1ä 6aHK YKpaiHH•, niKJIYBaTUCfl npo MOHeTaPHY 110J1iTHKy; BiÅ110Binarrn ga eMiciro rpomeii; KOMePUiMHH1i 6aHK•, npH1iMaTH ner103MTH•, I-laxuarru 1103HKy; 3ap06JIATU Topr0BeJ1bHMii 6aHK•, 11P1dA6aHHR KOHTPOJ1bHOro naKera mcuiü•, 3JIUTTfl (ninnpmervrcTB)•, iHBeCTHL1iMHHM 6a11K•, 6aHK', omaÅHHii paxyH0K, Ban10THHä Kypc; CBiTOBnü 6aHK. Ex.3. Match words from list A with words from list B that have a similar meaning: savings account make a loan engage in exist vary service an account get money by working take care of differ people be be involved in extend a loan look after public earn 594 UNIT VI MONEY AND BANKING manage an account thrift deposit Ex.4. Find suitable opposites to the following words and definite; to control; to lose profit; commercial banks; withdrawal• 595 UNIT VI MONEY AND BANKING Ex.5. Match the nouns in the left-hand column with the verbs in the right- hand column. repay depositobtain apply for accountback accept loanhold withdraw make close open manage Ex.6. The words in the <<bank». 500K settle box frequently occur after clerk drø bank unt deposit sBtement loan Find combinations that mean: book that lists all payments into and withdrawals from a customer's bank account; 2)the amount of money paid by a customer to the bank for its services; 3) a person who serves customers, keeps accounts and does other work in a bank; sum of money left with a bank for safe keeping or to earn Interest; S) a cheque that guarantees payment by a bank; 6) money that has been lent by a bank to a customer for a fixed period• 7) a Person employed by a bank to control a particular branch or department; 596 UNIT VI MONEY AND BANKING (UK) a day, not a Saturday or Sunday, when banks are closed and which is also a general holiday; an arrangement with a bank that allows the customer to pay in 8) 9) 10) a printed report that shows all the money paid into and out of a customer's bank account within a certain period and the total amount left in the account. Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below: dOO tø depos 60 bønK system Federal Resß savings acmunt savings bank• unmerda/bank 1) the business of running or working in a bank; 2) the most important bank in a country because it issues and manages currency and helps to carry out the government's financial policy; 3) a bank that provides many different services for its customers, e.g. providing bank accounts and credit cards, arranging loans, etc.; 4) a bank that specializes in raising capital for industry. It advises companies on flotations, manages investment portfolios; 5) a bank that provides finance for companies, especially by buying stocks and securities and selling them in smaller units to the public; 597 A. UTYGINA Basic English of Economics 6) a financial institution that specializes in providing serviceS such as savings accounts; 7) an organization that holds money, important documents and other valuables in safe keeping, and lends money at interest; 8) a sum of money paid into a bank or savings account; 9) an account with a bank for personal savings; 10) something lent, usually money, on the condition it will be paid back after an agreed period with interest; | 1) the central banking system of the USA; 12) offering company shares for sale to the public or on a stock exchange for the first time. Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. l. She opened her . . . with the Midland Bank last year. 2. She works in Her monthly salary was paid into the 4. I made a . . . at the bank this morning. 5. I applied at the bank for a . . . at 7% interest. 6. Lloyd's is one of the major . . . banks in the UK. 7. The firm has taken advice from a . . . bank on the flotation. 8. I put $600 in my . . . account last year and earned 5 percent annual interest. 9. The company has had a difficult time since its . . . in 2001. 10. The company decided to increase its . . . and bought shares in Smith. Ltd. ll. A ... card allows you to buy goods and pay for them later. 3. 598 UNIT VI MONEY AND BANKING Portfolio; flotation; savings; merchant; commercial; loan; deposit; bank; banking; account, credit. Ex.9. Fill in the missing prepositions. The central bank . . . the UK has a number important functions . . . the economy. It is the government's bank, which means that it issues and refunds government loans and securities and looks . . . the National Debt. It is the only bank allowed to issue bank notes England and Wales. It implements the monetary policy . . . the government its control . . . the money iupply and interest rates. It also controls the provision International exchangecontrolled trading. . . . the Treasury.It is a publicly owned Organization, largely (of (4), in (2), after, through, over, for, by) Ex.10. These words are often confused to make — to do Complete these sentences using the correct form of one of the words above. Make your own sentences to show that you understand the difference in their meaning. 1. What have you been 2. I have an arrangement with the Personnel Manager. 3. He likesnothing. 4. Let's 5. Could youthe shopping for me? 6. I must 7. a copy of this letter, please. a plan. the accounts now. 599 A. UTYGINA Basic English of Economics 8. I'llmy best to help you sign this contract. 9. We haven't a decision yet. 10. Merchant banks business with companies. 11. He accounting. 12. Our companycomputers. 13. The businessman contact with a new customer. 14. I 15. She a good salary as an auditor. 16. That companya big profit. what the boss wanted. Ex.11. Build your vocabulary. Learn phrasal verbs for business! to cash in (on something) — to gain an advantage for yourself from a situation. Ifyou cash in on something you earn a lot of money by taking advantage ofa situation. Read these sentences carefully and translate them into Ukrainian. I. Retailers are cashing in on the current boom in consumer spending. 2. It wasn't your idea — you're just cashing in on it. 600 UNIT VI MONEY AND BANKING 3 There's a huge demand for cheap air travel and more airlines are trying to cash in. 4. As share prices rose, shareholders cashed in by selling their stock. 5. Shoppers often go across the border to cash in on the favourable exchange rate. 6. The company is now cashing in on the rise in steel prices. 7. She made a fortune when she cashed in on the IT boom of the 2000 s. 8. The banks have cashed in on the growing demand for credit. There is a huge market for these products and many companies have been cashing in. 10. Reality TV shows are very popular and several TV companies are trying to cash in on them. 9. Exercises in Comprehension Ex.l. Answer the following questions: 1. 2. 3. 4. What is the bank? What is banking? What types of banks exist in most countries? What functions do central banks perform? What kind of institution is a commercial bank? 5. 6. What is the difference between a national bank and a commercial bank? 7. 8. Who are the clients of a merchant bank? What do merchant banks specialize in? What are investment banks? 9. 10. What is characteristic of a savings bank (as opposed to a merchant bank)? 601 A. LATYGINA Basic English of Economics I l. What are the potential advantages of large banks? 12. What is the Federal Reserve System? Ex.2. Which types of financial institutions do these types of business? 1) arranging mergers; 2) issuing shares and bonds; 3) receiving deposits and making loans to individuals; 4) giving financial advice to companies; 5) issuing banknotes; 6) arranging investment portfolios; 7) providing services such as savings accounts; 8) looking after the government's finance and monetary policy. Ex.3. Translate into English: 1. baHK — Ile YCTaHOBa, Alca Mae cnpaBY 3 rp0L11HMa era Hana€ pi3Hi 4)iHaHCOBi nocnyrm. 2. 3. baHKiBCbKa cnpaBa — ue 6i3Hec, 51KMM 3aiiMa€Tbcfl 6aHK. Hau6aHK YKpaiHH niKny€Tbc51 rrpo nepxaBHi (l)iHaHCM Ta M0HerrapHY r10J1iTHKY. 4. I-leHTpaJ1bHi 6aHKH Bimr10Bima10Tb 3a eMici}0 rpomeä. 5. EOJIOBHa MeTa K0MepuiäHoro 6aHKY — omepxaHHH npm6YTKY. 6. Topr0BeJ1bHMä 6aHK 1--lamae nocnyrm KOMnaHi*M. BiH He npauyoe 3 HaceneHHSIM. 7. IHBeCTHUiVIHUM 6aHK — Lte (l)iPMa, 51Ka KOHTPOJIIOC BH11ycK HOBHX uiHHmx nanepiB. 8. OmaJLHHVi 6aHK cneuiaJ1i3yeTbcq Ha HamaHHi TaKHX nocnyr, outaJ(Hi paxyHKH. 602 UNIT VI MONEY AND BANKING 9. K0MepuiVIHi 6aHKM — lie ronoBHa JiaHKa B KpeAHTHii cHCTeMi JtepxaBH. 10. (beÅepaJ1bHa pe3epB11a CHC'reMa, SIKa BKJ110qac 12 (l)eÅepaJ1bHHX 6aHKiB Ta ix (l)iJ1ii, KOHTPOJIIOC arvtepHKaHCbKY nepxaBHY 6aHKiBCbKY cucrreMY. Ex.4. Sum up what you remember about: a) banking b) different types of banks and their functions 603 A. LATYGINA Basic English of Economics Grammar Revision Comparison of Adjectives We add —er to one-syllable adjectives to form the comparative and —est to form the superlative Demand for our computers is high in Egypt, higher in Turkey but the highest demand is in Russia. We add —ier and —iest to adjectives ending in —y wealthy — wealthier — the wealthiest We add more/less and the most /the least to two or more syllable adjectives important — more/less important — the most /least important There are «irregular» comparatives and superlatives good — better — the best bad — worse — the worst far — farther/further — the farthest/furthest old — elder — the eldest (for family members only) We use than to compare two or more things The CD is more expensive than the cassette. Ex.l. Divide the adjectives in the box into groups according to how the comparative and the superlative are formed. cheap, responsible, important, reasonable. Ex.2. Use adjectives from the box and write sentences Comparing your country and some other countries. 604 UNIT VI MONEY AND BANKING Use both comparative and superlative adjectives. Write at least five sentences. Ex.3. Complete these sentences, using the correct form (comparative or superlative) of the adjectives in brackets. 1. Our profit is (big) than our competitors'. 2. He is (qualified) than the previous accountant. 3. She is much (experienced) than her friends. 4. This device is (cheap) of all. 5. She is (young) in our department. 6. This is one of the (reliable) banks in Ukraine. 7. The situation in the market is getting (difficult). 8. You have got the (small) office. 9. Money has always been the (important) thing. 10. The prices for this product are (high) here. 11. I hear you were having problems last year. Is your business (good) this year? 12. I am so happy. This is (good) news I've heard for ages! 13. That hotel was very cheap. I expected it to be much (expensive). 14. If you need any (far) information, please contact our bank. 15. It was (bad) experience in my life. 16. This is (difficult) decision I've made for years. 17. The quality of our product is rather high, but we must make it still (high). 18. This company's products are (expensive) on the market. 19. This supermarket offers (low) prices than any other local supermarket. 20. We were disappointed as the presentation was (successful) than we expected. 605 A. LATYGINA Basic English of Economics 21. The banking system of Ukraine is becoming (dependent) on global processes. Ex.4. Make up sentences using the present perfect and a superlative adjective. E.g. difficult decision/make It 's the most difficult decision I have ever made. J ) cheap hotel/stay in 2) fast car/drive 606 UNIT VI MONEY AND BANKING 3) reasonable boss/work for 4) boring presentation/hear 5) difficult customers/deal with 6) good product/produce 7) bad job/have 8) simple computer program/use 9) reliable bank/deal with 10) profitable contract/make I l) bad mistake/make 12) expensive thing/buy 13) big company/work for 14) long meeting/be to Speech and Discussion Ex.l. Describe the differences between central banks and other financial institutions in the banking industry. Ex.2. Discuss the role of the National Bank of Ukraine as you see it today. Do you feel it is doing an effective job? Why or why not? Ex.3. Name some big commercial banks in Ukraine. Would you deposit your money in a bank that did not offer state insurance protection? Ex.4. Think about the following: <<Where large sums of money are concerned, it is advisable to trust nobody». 607 UNIT VI MONEY AND BANKING Ex.5. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. l. The gambler broke the bank at the casino. 2. Loan sharks operate outside the law. 608 A. Basic English of Economics LATYGINA 3. You can bank on him to do what he promises. 4. He touched all the bases in his talk about the new product. 5. When they could not pay their taxes, they were behind the eight ball because the government fined them more money. Ex-6. Comment on the following: «A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain.» (Frost) Ex.7. Read the joke: The youngster entered into the bank to open an account. He had fifty dollars. The bank's vice-president gave him a benign smile and asked how such a small boy had accumulated so much money. <<Selling Christmas cards», said the boy. <<Well,» said the banker, «You've done very well. Sold them to lots of people, obviously.» «Nope,» the boy answered proudly. sold all of them to one family. Their dog bit me». 609 UNIT VI MONEY AND BANKING LESSON 3 Text: Banking Services Grammar: Comparison of Adverbs. Other ypes of comparison. Terms to remember: banking facilities 6aHKiBCbKi nocnyru, 6aHKiBCbKi onepauii credit card lcpeÅHTHa KapTKa repay (v) p03paxYBarrnc51 ('3a 1110Cb); TIOBepTaTH (60pr) rate of interest r103HKOBHii npouewr collateral repossess (v) overdraft 3acTaBa, 3a6e3neqeHH51 direct debit standing order transfer (v) foreign exchange BHJ1yqaTH (ga Hecnnaqy) nepeBmueHHA rcpenwry•, 0Bepnpad)T llpgrvre me6eTYBaHH51 nocTiäHe nopyqem-lfl nepeKUYBaTH nepepaxoBYBaTH (CYMH) iH03eMHa BU110Ta 610 (rpomi); UNIT VI MONEY AND BANKING diversify (v) YPi3HOMaHiTHHTU (AiW1bHiCTb); cerpaxYBaHHfl 611 insurance Basic English of Economics A. LATYGINA Banking Services Modern banks offer many services to businesses as well as to individual customers. The service menu of banks does not remain unchanged as new services are constantly being introduced. Here are some of the most widely used banking facilities: A credit card enables the holder to buy goods and services and repay the credit card issuer at a later date. A loan is an amount of money borrowed from the bank which must be repaid at a fixed rate of interest. A mortgage is a loan to buy property. It is a long-term loan on which the property acts as collateral or a guarantee for the bank. If the borrower doesn't repay the mortgage, the bank can repossess the house or flat — the bank takes it back from the buyer, and sells it. An overdraft is a loan made by a bank to a customer so he/she may take out more money than is actually in a bank account. A customer can have a debt, up to an agreed limit, on which interest is calculated daily. As well as offering credit facilities, banks provide services to allow customers to make payments: Direct debit is a system of paying bills, etc. by having money automatically transferred from a bank account. A standing order is an arrangement with a bank to pay a certain amount to another person or organization at regular intervals. Most banks offer a foreign exchange service — the facility to change money from one currency to another. 612 Basic English of Economics In recent years banks have diversified, and now offer such services as insurance, investment advice, private pension planS' and home-banking (telephone, SMS and Internet) facilities. 613 UNIT VI MONEY AND BANKING Exercises in Word Study Ex.l. Form nouns from the following verbs: hold, issue, loan, bank, credit, pay, borrow, insure, invest, advise. Ex.2. The following words can be used in more than one way. Underline the correct part of speech for each word as it is used in the text. 1. 2. 3. 4. 5. credit loan bank transfer order 6. pay 7. 8. change offer a) noun a) noun a) noun a) noun a) noun a) noun a) noun a) noun b) verb b) verb b) verb b) verb b) verb b) verb b) verb b) verb Ex.3. Give the English for: 6aHKiBCbKi Ilocnyrw, TIP0110HYBaTH 6ararro nocnyr KJ1i€HrraM', 3a11POBaÅ)KYBaT1d HOBi nocnyrm; KpeAMTHa KapTKa•, KY11YBa-rH TOBapw, eMiTeHT KpeAHTH0i KaPTKH; p03pax0BYBa•rmcq 3a 1103MKy•, nepeBMLueHHR KpeÅHTy; Ha 6aHKiBCbKOMY paxyHKy•, 3ÅiäCHIOBaTH nnaTix•, nepeKa3YBarrm rpollli; np51Me Åe6eTYBaHHw, nocTiöiHe aopyqeHHq•, iH03eMHa Bæuorra; cTpaxYBaHHq•, 3acTaBa. Ex.4. Match words from list A with words from list B that have a similar meaning: loan meet a loan facilities repay enable borrow property bank order foreign currency permit possessions receive a loan pay back make possible for UNIT VI MONEY AND BANKING allow services foreign exchange repay a loan standing order advance 349 Basic English of Economics Ex.5. Find suitable opposites to the following words and domestic currency; to borrow; regular, direct; individual; forbid; unchanged. Ex.6. Match the nouns in the left-hand column with the verbs in the right-hand column. pay by cancel mortgage arrange hold overdraft standing orderredeem raise apply for clear have Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below. 1) a plastic card, issued by a bank or finance company, which guarantees that payment for goods or services will be made to the seller by the card issuer. The cardholder then makes payment to the card issuer at a later date; 2) an agreement in which money is lent by a bank or a building society, etc. for buying a house or another property. The property acts as the security, it can be reclaimed by the lender if the mortgage payments are not made; 616 Basic English of Economics 3) a loan made by a bank to a customer so he/she may take out more money than is actually in a bank account; 617 UNIT VI MONEY AND BANKING 4) a system of making payments by having money transferred from an account; customer's instruction to a bank to pay a certain amount to another person or organization at regular intervals; method of guarding against injury, loss or damage to property by paying a sum of money to an insurance company; 7) the amount that one must pay for a loan; 8) to enter new types of businesses. Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. It's very convenient to pay by 2. My account allows me to pay insurance by We make monthly payments on our house . 4. I must pay off my 5. The rent is paid by 6. For . you should make an appointment with one of our specialist advisers. 7. I'd like to take out . . . on a house. 8. Most Ukrainian banks offer a . service, dealing in all major currencies. 3. 9. You'll find all information about . . . services in our bank's website. diversified; home-banking; foreign exchange; insurance; investment advice; standing order; overdraft; mortgage; direct credit card, 10. Many debit; banks have . . . to reduce the chance of a big loss. UNIT VI MONEY AND BANKING Ex.9. Fill in the missing prepositions and adverbs. Mortgage individuals to A mortgage is a type finance used purchase property. A loan is made a building society, bank or Insurance company, covering a proportion the purchase price over a set period ... time (often 25 Years). The institutions making that loan retain ownership the Property as security the loan until the loan is repaid. (of (5), by (2), back, for) 351 Basic English of Economics A. UTYGINA Ex.10. Find words in the text with the following meaning. 1) an amount of money borrowed from a bank for a certain length of time, usually for a specific purpose; 2) something that acts as a security or a guarantee for a debt; 3) an arrangement to withdraw more money from a bank account than you have placed in it; 4) a long-term loan to buy somewhere to live; 5) an arrangement for saving money to give you an income when you stop working; 6) to take back property that has not been completely paid for. Ex.ll. Build your vocabulary. Learn phrasal verbs for business! to pay something back — to return money that you borrowed from somebody. Read these sentences carefully and translate them into Ukrainian. He wasn't able to pay back the loan. It's only a small amount — you needn 't pay it back yet. The $ 500000 loan has now been paid back. You must pay the lender back within five years. I don't have the money to pay you back at the moment. You will be paid back in full. Too many people are borrowing money that they have no hope of paying back. 8. The bank threatened to put the company out of business if they didn't pay the loan back. 1. 2. 3. 4. 5. 6. 7. 620 Basic English of Economics 9. If you pay the money back within six months, no interest is charged. 10. You need to pay us back within 24 months. 621 UNIT VI MONEY AND BANKING Exercises in Comprehension Ex.l. Answer the following questions: l. Whom do modern banks offer their services? 2. Does the service menu of banks remain unchanged? 3. What does the credit card enable the holder? 4. What is a loan? 5. What is a mortgage? 6. What is an overdraft? 7. What is the difference between a loan and an overdraft? 8. What other services except credit facilities do banks offer to their customers? 9. What is direct debit? 10. What kind of arrangement is a standing order? ll. What is meant by «a foreign exchange service»? 12. What new services have appeared in the banks as a result of their diversification ? Ex.2. Sum up what you remember about modern banking services. Grammar Revision UNIT VI MONEY AND BANKING Comparison of Adverbs Most comparative and superlative adverbs are made with more and most - Can you type more quickly? I am typing the most quickly. Adverbs that have the same form as adjectives (e.g. early, fast, hard, late, long, near, etc.) have comparatives and superlatives with -er and —est. Can you type faster? I am typing the fastest. Irregular forms well best badly better worst far worse farthest/furtherst farther/further much/manylittle more most less least 353 Basic English of Economics Com aratives: other oints We use double comparatives (...er and ....er, more and more...) to say that something is changing The euro is getting stronger and stronger. He is working more and more slowly. We use the the ... with comparatives to say that one thing depends on another thing The earlier we start, the sooner we will finish the project. We use as ... as to say that things are equal or unequal The euro has become as popular as the dollar. This currenc is not as stron as that one. A. LATYGINA Ex.l. Divide the adverbs in the box into groups according to how the comparative and the superlative are formed: early, easily, fast, hard, slowly, late, soon, well, badly, high, low, direct, little, straight, often, loud, far, near, fluently, carefully. Ex.2. Complete these sentences, using the correct form (comparative or superlative) of the adverbs in brackets. l. If you don't walk (fast), you'll be late. 2. She works (fast) of all the secretaries in her company. 3. You could do it (well) with my computer. 4. We could have found the proper solution (easily) with your help. 5. My car is very economical, it uses (little) petrol. 624 Basic English of Economics 6. You are late again. We expected you to be here (early). 7. We've got (little) time than we thought. 8. They responded to our call (quickly) than we expected. 9. As far as I know Tom works (hard) of all in the company• 10. You can buy them (cheap) at Brown's. 11. Can you go out (quietly) next time? 12. You should look through the financial statement (attentively)' 13. She resumed her way (slowly). 14. The banks close (early) here than they do in Ukraine. 15. The company did (well) than analysts had been expecting• 625 UNIT VI MONEY AND BANKING Ex.3. Complete the sentences using as ... as. 1. 2. Your proposal is interesting but mine is more interesting. Your proposal isn't You read a lot about the euro but I read more. You didn't read 3. The last contract was more profitable than this one. This contract isn 't 4. Supermarkets are more convenient than small shops. Small shops aren't 5. This transaction is less expensive that that one. This transaction isn't 6. The restaurant was cheaper than we expected. The restaurant wasn't 7. We have bought less currency than we need. We haven't bought 8. The financial statement was easier to make than we expected. The financial statement wasn 't 9. Our results are worse than we forecasted. Our results aren't 10. Their products are reliable but ours are more reliable. Their products aren't Ex.4. Complete the sentences using double comparatives ( ...er and ...er, more and more ) l. As he waited for his first negotiations, he became . . . (nervous). 2. It's becoming . . . (difficult) for me to make such decisions. 3. Our financial situation is getting . . . (bad). UNIT VI MONEY AND BANKING 4. 5. 6. 7. 8. Hotels are getting . . . (expensive). Our transactions are becoming . . . (unprofitable). As the conversation went on, she became . . . (contused). The queue in the supermarket was getting . . . (long). Price differences in different countries of the Euro zone are becoming . . . (obvious). 9. It's becoming . . . (hard) to find a job in small towns. 10. My business is getting . . . (profitable). 355 Basic English of Economics A. LATYGINA Ex.5. Complete the sentences with expressions from the box. Use the ... the. cheaper/better, bigger/wider, more comfortable/higher, longer/less, more/less, longer/angrier, higher/better, older/more impatient, faster/more profitable, more/more. 1. The . . . money you earn, the . . . you waste. 2. The . . . you improve the quality, the . . . your business will become. 3. The . . . he gets, the . . . he becomes. 4. The . . . he waited for his boss, the . . . he became. 5. The . . shares you buy, the . . . profit you make. 6. The . . . I work in this company, the . . . I like it. 7. The . . . the price, the . . . the quality of the product. 8. The . . . the car is, the . . . price is. 9. The ... a department store is, the . . . the choice is. 10. — Are you looking for an expensive flat? —No, the . . . the .... Speech and Discussion Ex.l. Describe one of your local banks. Speak about: location, number of customers, opening hours' services offered, number of employees, its role in the community. 628 Basic English of Economics Ex.2. Make a list of the different services that banks in Ukraine provide for the public. Which of them seenl the most important to you and why? Ex.3. Think about the following: «lt isn't enough for you to love money — it's also necessary that money should love you» (Rothschild) 629 UNIT VI MONEY AND BANKING Ex.4. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them: l. I have my fingers crossed that I'll sign the contract today. 2. I know we should make her do more of the work, but I'd rather let sleeping dogs lie. 3. We worked like dogs to finish the job on time. 4. We worked for months on that project, and when it was stopped, all that time and effort went down the drain. 5. She decides what will be done; she is in the driver's seat. Ex.5. Comment on the following: «A bank is a place that will lend you money if you can prove that you don't need it.» (Bob Hope) Ex.6. Read the joke: Banker: What do you mean by telling me that you had had seven years' experience in a bank when you never had a job before? Youth: Well, you advertised for a man with imagination. UNIT VI MONEY AND BANKING 357 Basic English of Economics A. UTYGINA TEST 6 (MODULE VI) Choose the word or word combination to match the definition. l. A charge paid to a person b) interestor a bank for the c) money rent borrowed. a) loan 2. Illegally giving someone money so that they act in your favour. a) racket b) money laundering c) bribery 3. A book that lists all payments into and withdrawals from a customer's bank account. a) bank statement b) bank book c) bank deposit 4. The most important bank in a country that controls a nation's policy on money and interest rates. a) development bank b) major bank c) central bank 5. A bank that specializes in raising capital for industry. a) savings bank b) merchant bank c) national bank 6. An account with a bank for personal savings. a) savings accountb) capital account c) correspondent account 7. The central banking system of the USA. a) Commercial Bank b) National Bank c) Federal Reserve System 8. A system of making payments by having money transferred from an account. a) direct mail b) direct debit c) direct export 632 Basic English of Economics 9. A customer's instruction to a bank to pay a certain amount another person or organization at regular intervals. a) standard rate b) statement of account to c) standing order I O. A free trade association with a common currency and unrestricted movement of capital goods and people between countries. a) firm market b) single market 633 c) profitable market UNIT VI MONEY AND BANKING I l. The unit of currency of the European Union. a) dollar b) euro c) pound The coins and banknotes that belong to a particular country. a) benefit b) currency c) transaction cost 12. 13. Money that can be exchanged for the currency of another country. a) convertible currency b) counterfeit currency c) controlled currency A group of countries in Europe working to create a stronger world market for European goods and services. a) European Commission b) European Union c) United Nations 14. The amount of money that a person, an organization or a country has to buy goods and services. a) active power b) economic power c) purchasing power 15. The amount of money spent on a piece of business done. a) actual cost b) transaction cost c) contract cost 16. 17. An agreement with a company in which the company will pay for a loss or accident in exchange for regular premiums (payments). a) insurance b) installment c) insulation A large amount. of money, goods or property. a) value b) wealth c) cost 18. 19. Disguising the criminal origin of money such as drug money. a) money order b) money supply c) money laundering 20. Change for small purchases. a) near money b) pocket money c) cheap money U N I T V I M O N E Y A N D 35 9 MODULE Vil GLOBAL BUSINESS LESSON 1 Text: International Trade Grammar: The Infinitive Terms to remember: international trade consume (v) unobtainable Mi)KHap0A1-ra TopriBJT51 CllO>KHBaTH HeÅOCSDKHMi, IEÅOCTYIIHHVI domestic BiTYH3HSIHHiä, BHYTpi111Hiä living standardpiBeHb protectionist measures np0TeK11i0HicTcbKi 3ax0ÅH tariff quota KBOTa exchange control BU110THe per'YJIK)BaHH51 national producer HaniOHaJ1bHHä BUP06HUK barrier 6ap'ep free trade BiJ1bHa eropriBJ151 International Trade International trade is the exchange of goods and services between countries. It enables countries to obtain some goods and services more cheaply than they could produce them for themselveS or to consume goods and services which would otherwise be unobtainable from domestic supply sources. %rough international trade countries can improve their living standards. International trade keeps domestic prices down by creating competition at home and provides large markets abroad• Governments can control international trade when they want to protect various areas of the economy. The most comm011 protectionist measures are tariffs (a tax on imported goods)' quotas (the maximum quantity of a product allowed into a country during a certain period of time), exchange controls. They raise the price of imported goods to protect national producers. 636 MODULE Vil GLOBAL BUSINESS The international trade that takes place without barriers such as tariffs, quotas and exchange controls is called free trade. Itallows certain countries to buy and sell goods from each other without any financial restrictions. Free trade area is a form of trade integration between a number of countries, in which members eliminate all trade barriers among themselves on goods and services, but each continues to operate its own barriers against trade with the rest ofthe world. Exercises in Word Study Ex.l. Form nouns from the following verbs: produce, consume, improve, control, protect, integrate, eliminate, operate, supply. Ex.2. Give the English for: Mi>KHap0AHa TopriBnw, 110Kpa111YBaTH KOHIPOJIK)BaTH 3ax0ÄH; MbKHap0ÄHY TopriBJIK)•, piBeHb; npo•reKui0HicTbKi BaJIK)THe perYJ1k0BaHHT, niÅBH111YBaTH 1-(iHP1 Ha iMnopTHi TOBapn; 3aXH1qaTH HaqiOHaJ1bHOro BHP06HHKa; BiJ1bHa TopriBnw, ycyBaTH BCi ToproBi 6ap'epn. Ex.3. Match words from list A with words from list B that have a similar meaning: obtain obstacle produce consume defend internal MODULE Vil GLOBAL domestic protect barrier elevate raise use up manufacture get 361 Basic English of Economics A. UTYGINA Ex.4. Find suitable opposites to the following words and phrases: domestic; cheaply; obtainable; to raise the price; international trade. Ex.5. Match the nouns in the left-hand column with the verbs in the right-hand column. raise remove tariffseliminate abolish quotasimpose pay barriersexceed operate fix Ex.6. The following diagram shows some very commonly used words with Study the diag•am. Consult your dictionary and &anslate these word combinadons into Ukrainian. Make up sentences with them. 639 MODULE Vil GLOBAL BUSINESS Ex.7. The words in the box frequently occur before and after «trade». foreign ditor dom deficit cre trade roarK 00 restriction disco Find combinations that mean: l) trade between buyers/sellers in one country and sellers/buyers in other countries; 2) trade between buyers and sellers in the same country; 3) an organization of producers or sellers of similar products that provides advice, information and services for its members; 4) a group of countries that agree to trade with each other on favourable terms; 5) a person or business that has supplied goods or services to a company and is owed money for them; 6) the amount by which the value of a country's imports is greater than the value of its exports; 7) an amount that is taken off the normal selling price of a product; MODULE Vil GLOBAL 8) a big exhibition where manufacturers and sellers display their goods; 9) a name or symbol that is used on the products of a particular company; 10) an action taken by a government to limit the amount or type of goods imported or exported, usually by introducing taxes and tariffs. 363 Basic English of Economics A. LATYGINA Ex.8. Look at the words and phrases in the box. Match them with the correct definition from the list below: 1) the level of material comfort and wealth that a person or a community has; 2) an amount that must be paid when particular goods are imported into a country, or sometimes when they are exported; 3) a limit on the amount of a particular good that may be imported into a country during a given period of time; 4) a set of restrictions imposed by a government on buying and selling foreign currencies; 5) an obstacle; 6) trade between countries with few government restrictions; 7) a system of import controls set up by a government to protect the country's agriculture and industry from foreign competition; 8) inside a particular country. Ex.9. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. The country depends on ... trade. 642 Basic English of Economics 2. I hope this new job will give me a better barriers can make trade difficult. 4. The government fixed a on the number of foreign cars allowed to be sold in the USA. 5. The United Kingdom removed all 6. The General Agreement on Tariffs and long Trade titne ago.(GATT) is an international organization whose goal is to eliminate tariffs and other ... to international trade. trade among nations results in increased competition and lower prices. 643 MODULE Vil GLOBAL BUSINESS 8. This company is the largest . . . of steel. The government raised the price of imported goods to protect goods. 10.A fall in the value of the pound makes . .. more expensive for British consumers. 9. imports, national producer; free; barriers; exchange controls; domestic, quota; tariff; living standard; international Ex.10. Fill in the missing prepositions: A foreign-exchange control is a restriction . . . the amount ... a particular currency that can be purchased or sold. . . . limiting the amount foreign currency that importers can obtain, a government limits the amount . . . goods that importers can purchase . . . that currency. This has the effect . . . limiting imports the country whose foreign exchange is being controlled. (on, of (4), by, from, with) Ex.ll. Use the terms in the box to complete the text. imports free trade exports quotas protectionism tariffs A system of allows countries to buy and sell goods from each other without paying taxes. On the other hand, some countries put large taxes on imported goods in order to help their own industries, this is called The use of limits the arnount of MODULE Vil GLOBAL BUSINESS coming into a country. its trading This may partners protect replya country's industry in the short-term, but if with similar measures, then will suffer. If governments set new will prevent free trade.or increase ones that already exist, these taxes 365 Basic English of Economics A. UTYGINA Ex.12. These words are often confused: to provide to secure to ensure to provide — to secure — to ensure — to give someone something they want or need — to get or achieve something important; to make an area or building safe — to make sure that something happens or is done Complete these sentences using the correct form of one of the words above. Make your own sentences to show that you understand the difference in their meaning. 1. My job ... me with the opportunity to meet new people every day. 2. People need a job to ... their independence. 3. Our company will soon . a full account of its investment activities. 4. I was very pleased with the room you . . . 'me with. 5. I ... that the house was protected by locking all the doors. 6. My departnent ... advice for those who plan to set up a business. 7. The company has ... all the workers who use dangerous machines. 8. She has ... a good job. 9. I can't ... that he will be there in time. 10.Can you ... me two good seats for the concert? 11.We ... legal advice to our clients. 12.Our new research strategy ... that we get the best possible results. Exercises in Comprehension Ex.l. Answer the following questions: 646 Basic English of Economics A. UTYGINA 1. What is international trade? 2. Why do countries engage in international trade? 3. Does international trade influence domestic prices? 4. Do governments control international trade? 5. What are the most common protectionist measures? 6. What reasons are generally given for imposing trade barriers • 8. What is free trade area? 647 MODULE Vil GLOBAL BUSINESS Exu2. Choose the correct term for each definition. free trade, free trade area, tariff, trade protectionism, import quota l. When there is a limit on the number of products in certain categories that can be imported, a(n) has been established. 2. In a there exists a market in which nations can trade freely with each other without tariffs or other trade barriers. 3. An import tax designed to raise the price of imported goods so that domestic products will be more competitive is called a(n) 4. The use of government regulations to limit the import of goods and services is considered to be 5. There is when the movement of goods and services among nations takes place without barriers. Ex.3. Sum up what you remember about: + intemational trade; • protectionist measures; • free trade. Ex.4. Translate into English: l. Mi)KHap0AHa TopriBJIA — ue 06MiH TOBapaMH Ta nocnyraMH Mix Pi3HMMH KpaiHaMM. 2. 3. 4. 3aBAHKH Mi)KHaPOÅHiii TopriBJ1i KpaiHH MO)KYTb norcpaLÅHTH CBiii ycnrreBHii piBeHb. Y BCix KpaiHax Mi)KHap0AHa TopriBJ151 TapncbH, KBOTH, BUI}OTHe perYJIK)BaHHR — ue 11POTeKui0HiCTCbKi 3ax0AH, RKi 3acTocoBye mepxcaBa, 11106 3aXHCTHTH HaqiOHaJ1bHoro BHP06HHKa. MODULE Vil GLOBAL BUSINESS 5. Y 30Hi BiflbH0i TopriBJ1i He iCHye eropr0BHX 06MexeHb Ha TOBaPH Ta nocnyrm. 6. Tapnd) — ue nonarrorc Ha iMnopTHi TOBapH. 7. KB0Ta — Lie JliMiT Ha KiJ1bKiCTb T0Bapy, *KHii A03BOJ1*€TbCR iMnopTYBaTH B rcpaiHY npo•rnr0M KOHKPeTHOro yacy. 8. 3aXOAH niABHLIVIOTb uiHH Ha iMnoprHi 10BapH. 367 Basic English of Economics A. UTYGINA The Infinitive Active Voice Indefinite Perfect Pro essive to ask Passive Voice Progressive Perfect to be askin to be asked to have asked to have been asked to have been askin 1. The infinitive has the followin forms: 2. The infinitive can be used as: • the subject It was hard to raise this question. • the predicative main problem is to get to the office on time. • an object She tried to speak calmly. • an attribute There was nothing to argue about. • an adverbial modifier I have come to see the manager. 3. Some verbs can be followed by object + infinitive. I'd like you to pay now. a) verbs followed by an object + infinitive with «to»: advise, allow, ask, expect, forbid, force, get, hate, help, intend, invite, permit, order, prefer, recommend, remind, tell, want, persuade, like, warn, wish, would like, encourage My boss always encouraged me to work as hard as I could. b) verbs followed by an object + infinitive without «to»: let, make, feel, see, hear, watch, notice, have and sometimes know and help Let me explain the rule. Grammar Revision 650 MODULE Vil GLOBAL BUSINESS Ex.l. Translate the sentences into Ukrainian and state the form and function of the Infinitive. I. She was the last to solve the problem. 2. To do it accurately was the main problem. 3. This is a prestigious company to work in. 4. It was kind of your boss to have offered it to you. 5. Our plan was to finish this work by the end of the month. I was lucky to have been chosen for this job. 7. This is a very good hotel to stay in. 8. There is a lot of work to be done today. 9. She was the first to be given a rise. 10. It's nice to be working right now. ll. He hopes to be chosen for this position. 12. Our boss doesn't like to be interrupted while he is working. 13. Do you know him well enough to ask him for some money? 14. I only want to be understood. 15. All the necessary changes may be made any moment. 16. I hope to find a job in accounting. 17. I'm sorry not to have kept my promise. 18. It was a big mistake for them not to keep him as accountant. 6. Ex.2. Insert «to» where necessary before the infinitives in brackets. We made him (do) it all over again. I recommended him (learn) the laws of my country. The boss made the secretary (repeat) the message. They won't let you (leave) the Customs area till your luggage has been examined. 5. Will you help me (fill in) this application form? 1. 2. 3. 4. 651 6. 7. 8. 9. MODULE Vil GLOBAL BUSINESS Please let us (know) about his decision as soon as possible. I'd like him (accept) this invitation. I don't want anybody (use) the results of my experiments. He made me (sign) this paper. 652 Basic English of Economics A. UTYGINA 10. I saw him (leave) the office. 11. Nobody noticed him (come) in. 12. I don't want anybody (know) about our plans. 13. She knew him (be) a good marketer. 14. I believe this (be) the only way out. 15. The lawyer advised me (read) the contract carefully. 16. They let us (go out) at the weekends. 17. I saw him (sign) the cheque. 18. They persuaded the bank (finance) the project. Ex.3. Translate into English: 1. BiH He XOTiB, 11106 Kacnp nepepaxoBYBaB rpomi. 2. Bci BBaxa10Tb, 11-(0 BiH myxce ycni111HHii ninnpnervreub. 3. Lle 3MYCHTb MeHemxcepiB K0MnaHii r10AYMaTH, AK BHPiUIHTH rrp06neMY 3axHcrry CBOro BHP06HHKa. 4. Lle 3MYCHJIO ypqm niABH111HTH uiHH Ha iMnopTHi TOBaPH. 5. 51 cnomiBaBcq, Luo HOBHHa 3MycHTb Moro niABHL11HTU T06i 3ap06iTHY nnarry. 6. 51 He xoqy, LL(06 BH KOHTPOJI}OBUIH MOEO AiflJ1bHiCTb. 7. BiH He cr10AiBaBcR, LAO ue rlHTaHHH P03rJJAHYTb TaK UIBHAKO. 8. HixT0 He cr10ÅiBaBcq, 1110 nepcneKTHBHa KOM11aHiA cTaHe 6aHKpyT0M. 9. HixT0 He 3HaB, 1110 npHMycHJ10 ix 3MiHUTH iXHi nnaHH. 10. A xoqy, 1406 BH nporJIRHYJIH I-lei 3BiT. 11. 1110 3MYCHJIO Moro 3P06HTH ueii KPOK? 12. J103BOJTbTe MeHi J&TH BaM nopaay. 13. MeHi 6 He XOTiJ10CR, 11106 TH Talc noraH0 AYMaB npo HborO. 14. BOHH He CllOÅiBaJIHCS1, I-go MH 3aKiHHHMO ueii 3BiT 6e3 ixHb0i norJOMOrn. 653 MODULE Vil GLOBAL BUSINESS Speech and Discussion Ex.l. Discuss with your groupmates why it makes sense for countries to engage in international trade, what are its advantages. Ex.2. Which of your country's biggest trading partners can you name? Is Ukraine the most trade dependent? Ex.3. Speak about free trade areas. Do they exist in Ukraine? Do they have any impact on the country's economy? Ex.4. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. When the stock market crashed, he took a bath. 2. When he lost his job and could not pay his bills, he was up the creek (without a paddle). 3. The new trade agreement opens the door to better relations between the two nations. 4. He was angry about failing the exam and took it out on his friend. 5. He has been on easy street since he won the lottery. Ex.5. Comment on the following: «Associate with men of good quality, if you esteem your own reputation, for it is better to be alone than in bad company» 654 MODULE Vil GLOBAL BUSINESS (G. Washington) 655 Basic English of Economics A. UTYGINA ca 3ap06J1flTH earn (v) purchase (v) KY11YBarru, npHÅ6aBaTH freight (bpaxT, nepeBe3eHHA Bawraxy n03mqaTH (y KOEOCb — Monetary Mi)KHap0AHHü from) the International BaJ1iOTHMü Fund exceed (v) nepeBH111YBaTH trade surplus I-lamJIUUIOK ToproBoro 6anaHcy balance of trade 6anaHc trade deficit TOPFOBOEO 6anaHcy Export and Import Exporting and importing are two aspects of foreign trade• 656 Basic English of Economics A. UTYGINA Exports are goods and services produced in one country but sold in another. Trade in goods is known as visible exports and trade in services is known as invisible exports. Exports are important because they allow a country to earn foreign exchange which can be used for buying imports from abroad. Imports are those goods and services which are consU111ed ill one country but which have been purchased from another country• 657 MODULE Vil GLOBAL BUSINESS Imports of goods such as food, raw materials, or manufactured goods are known as visible imports; imports of services such as insurance, tourism, freight are known as invisible imports. Imports are paid for by foreign currency earned by exporters, or by borrowing from foreign governments and agencies like the International Monetary Fund. The balance of trade is the difference between payments for imports and payments for exports. If exports exceed imports there is a trade surplus or a positive balance of trade. If imports exceed exports there is a trade deficit or a negative balance of trade. If a country has a trade deficit, the value of the goods and services that it imports is greater than the value of the goods and services that it exports. Exercises in Word Study Ex.l. Form nouns from the following verbs: earn, purchase, export, import, sell, borrow. Ex.2. Give the English for: eKcnopT Ta iM110pT•, eKcnopT T0BapiB; HeBHAHMMä iMnopT; 3ap06JIRTH iH03eMHY BUI}0Ty; KY11YBaTH TOBaPH B iH111iii KpaiHi; CUPOBHHa; 11POMHCJIOBi TOBapn; cqpaxYBaH1-w, nepeBe3eHHR Balrra)KiB•, nou•rqaTH Ba.mo•ry•, Mi)KHap0ÅHHii BEIJI}0THHii HaÅJIH1110K ToproBoro 6anaHcy; ToproBoro 6anaHcy; ToproBHii 6anaHC. Ex.3. Match words from list A with words from list B that have a similar meaning: MODULE Vil GLOBAL BUSINESS foreign exchange positive balance of trade exceed transported goods 373 Basic English of Economics A. UTYGINA buy important goods freight trade surplus trade deficit merchandise significant purchase surpass foreign currency negative balance trade of Ex.4. Find suitable opposites to the following words and phrases: visible exports, to sell; to lend; to waste; important; to ban. Ex.5. Consult your dictionary and translate the following word combinations into Ukrainian: capital export; controlled exports; currency export; duty-free export; food exports; invisible exports; unpaid exports; visible exports. Consumer imports; dutiable import; free import; merchandise imports; prohibited imports; protected import; token import. Ex.6. Look at the words and phrases in the box. Match them with the correct definition from the list below: Bible imp" iril visib/eeprÉ ø+Q0 fie Int—nal Monor/ Fund l)an item, a service, an idea that is sent from one country to another to be sold; 660 Basic English of Economics 2) an item, a service, an idea that is brought into one country from another; 3) goods, as opposed to services, that are sold to other countries; 661 Basic English of Economics 4) services such as banking, insurance and tourism that are brought from other countries; 5)an agency of the United Nations that lends money to encourage trade and economic development in poor countries; 6) a situation where a country exports more goods than it imports; 7) condition in which there are more goods imported than exported; 8) the transport of goods by sea or air. Ex.7. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. She . . . a new car. 2. Sales of the new product . . . our estimates. 3. Canada . . . wheat in great quantities. 4. This wine is from France. 5. Foreign technology is a significant . . . . 6. This country ... luxury items to Northern Europe. 7. Tourism is the most important part of the Cypriot 8. Sixty percent of the goods they come from Asia. 9. Sometimes governments put . . . on foreign trade. 10. This . . . company will be 100 years old next year. exporting; imports; restrictions; import; invisible exports; invisible import; imported; exports; exceeded; purchased. Ex.8. Fill in the missing prepositions. A country spends money goods it imports and gains money . . . its exports. Valuable though foreign trade is keeping domestic prices down creating competition home and providing large markets abroad, governments may have to put restrictions it, which they usually do subjecting imports . customs duties or restricting some types . exports. 662 MODULE Vil GLOBAL BUSINESS Customs authorities must make sure that imported goods are not sold . .. a lower price than that their courtry . . . origin. (of (2), in, at (2), by (3), on (2), for, through, to) 375 LATYGINA Ex.9. Build your vocabulary. Learn phrasal verbs for business! to take off — (about a product, an idea, etc.) to become successful or popular very quickly or suddenly. When something takes off it becomes very successful or popular. Read these sentences carefully and translate them into Ukrainian. 1. It was several years before the business really took off. 2. His career began to take off in the 2000s. 3. Sales on the Internet have taken off in recent years. 4. Our new service is not taking off as we had hoped. 5. It started as a small company, but has really taken off now. 6. His career took off when he moved to the USA. 7. Sales have taken off over the six months. 8. He expects the business to take off over the next five to ten years. 9. This type of insurance policy has never been taken off in Britain. 10. There is no sign ofour new export product taking off for a while. Exercises in Comprehension Ex.l. Answer the following questions: I. What are the principal aspects of foreign trade? Basic English of Economics 2. What are exports? 3. What are imports? 4. What do we call visible exports? 5. What do we call invisible exports? 6. Why are exports important? 7. What are imports? 8. What is known as visible imports (invisible imports)? 9. What are imports paid for by? 10.What is the balance of trade? 1 1; What is a trade surplus? 12. When do we speak about a trade deficit? Ex.2. Choose the correct term for each definition. balance of trade, exporting, trade deficit, importing l. A company is involved inwhen it is selling products to another country. 2. The relationship of exports to imports is called the 3. A country is involved inwhen it is buying products from another country. 4. When a country has ait is buying more goods from other nations than are sold to them. Ex.3. Look at the list of a country's imports. Which are visible and which are invisible? bananas oil processed food cars rice insurance tourism freight banking Visible Invisible Ex.4. Sum up what you remember about: exports imports • a trade surplus/a trade deficit 664 MODULE Vil GLOBAL BUSINESS Ex.5. Translate into English: I. Mi)KHap0ÅHa TopriBJ1fl — ue OCHOBHHÄ (l)tucrop po'3BHTKY cniBp06iTHHLITBa Mixc Pi3HHMH KpaiE1aMH CBiTY. 2. EKcnopr Ta iMr10PT — BOKJIHBi acneKTH Mi)KHaPOAH0i •mpriBJ1i. 3. ElccnopTYBaHH51 — ne rrp0Jxa)K T0BapiB Ta nocnyr B iH111)' KpaiHY. 377 4. IMnopTYBaHH.q — ue KyniBJIA T0BapiB era nocnyr B iH1üiii RpaiHi. 5. KyniBJIA •raKHX nocnyr, 51K crrpaXYBaHHA, TypH3M, nepeBe3eHH* Bawraxcy — ue HeBHÅHMHii iMnopT. 6. EKcnopTepH 3ap06JIM0Tb Banwry, *KOK) KpaiHa poapaxo_ Bye-rbCA 3a iMnopTHi TOBapn. 7. AKIIIO eKcnoprr nepeBH11Ve iMnopT, iCHye HaAJIHL110K ToproB0ro 6anaHcy. 8. AKI-UO iMnopT nepeBHLuye eKcnopT, MaeTbCfl npo ToproBoro 6aJ1aHcy. 9. EKcnopT T0BapiB — npiopwreTHHä HarrpflM p03BHTKY 30BHiUIHboi TopriBJ1i 6YAb-flK0i KpaiHH. 10. EKOHOMiKa KO)KHOi rcpaiHM 3HaHH010 MiP0}0 3aJIOKHTb Bia 30BHiUIHbOi TopriBJ1i. Grammar Revision Basic English of Economics The Gerund l. The Active Indefinite Passive being written writing Perfect having written erund has the followin forms: having been written 2. We use the gerund: • as the subject of a sentence Exporting will be our main objective next year. as the object of a sentence I've alwa s en•o ed readin • after certain verbs: admit, mind, appreciate, avoid, consider, can't stand, can't help' delay, enjoy, finish, imagine, involve, postpone, propose, risk' stop, suggest The mana er ro osed or anizin an exhibition. 666 MODULE Vil GLOBAL BUSINESS after prepositions after, before, by, when, while, without The company launched this product without doing the necessary research. after verbs and expressions followed by prepositions: be interested in, be good at, be fond of, be for/against, be used to, instead of, feel like, think of/about, look forward to, succeed in, approve of, insist on, object to I'm interested in learning more about this technology. after these expressions: it's no use, it's not worth, it's no good, to have difficulty It's no use askin him. I-le won't tell the truth. Ex.l. Put the verbs in brackets into the gerund. Translate the sentences into Ukrainian. J . Stop (argue) and start (work). 2. The boss is against (make) any complaints. 3. I am thinking of (retire) and (go) to Ukraine. 4. If he puts his money into that business he risks (lose) everything. 5. If a thing is worth (do) at all it is worth (do) well. 6. He hates (borrow) money. 7. I can't stand their (waste) so much time. 8. I thanked him for (solve) the problem quickly. 9. I suggest (postpone) the meeting. 10. It's no good (complain). Nothing can be done. 11. I can't help (think) about the interview. 12. We avoid (keep) late hours. Our working day begins very early. 13. The secretary admitted (steal) the money. 14. I believe he is capable of (solve) this problem. Ex.2. Finish these sentences using a gerund. l. My favourite activity is . 2. He can't stand Basic English of Economics 3. He is good at 379 A. LATYGINA 4. Some people just can't help 5. We are used to 6. I am interested in 7. This company is worth 8. The customer wants to know who was responsible for 9. I feel like 10. He admitted 11. I am thinking of 12. . . . was the key to the company's success. 13. It's no use . 14. Avoid Ex.3. Complete these sentences using the gerund form of one of the verbs below. give, get, make, have, lose, help, work, discuss, get, worry, meet, analyse, cry, buy, reduce 1. 2. 3. 4. 5. 6. 7. He is interested in . . . the shares of this company. It's no use . . . over spilt milk. This job involves . . . our international transactions. We are looking forward to . . . the new Sales Manager. It isn't worth . . . about it. You risk . . . bad results. As we don't agree about company policy we avoid this subject. 668 MODULE Vil GLOBAL BUSINESS 8. We don't mind . . . overtime, if it helps the company. 9. You mustn't insist on . . . him. He doesn't want it. 10.By delaying we risk . . . this contract. 11.I can't imagine not . . . a computer in my office. 12.He apologized for . . . this serious mistake. 13.He is very pleased with . . . the job he wanted. 14.It's no good . . . her advice — she never listens. 15.Overstaffing should be solved by . . . the workforce. MODULE Vil GLOBAL BUSINESS Speech and Discussion Ex.l. Discuss with your groupmates the advantages of trading worldwide. Ex.2. Can you say that exporting facilitates the economic growth? Ex.3. Speak about Ukraine's major exports and imports. Ex.4. How strong is the economy in Ukraine? Is it going to grow or decline over the next few years? Ex.5. Familiarize yourself with the following idioms, consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. We worked all night to finish the job and we delivered the goods at 9.00*m. 2. We spent many hours searching for a solution to the problem; it was a tough nut to crack. 3. If my stockbroker recommends a share, you• can bet your bottom dollar that it will go down. 4. Are you going to lend me the money or not? I'd like a straight answer. 5. The Prime Minister is convinced that there will soon be a sea change in the relations between East and West. Ex.6. Comment on the following: is happier to be sometimes cheated than not to trust» MODULE Vil GLOBAL BUSINESS (S. Johnson) 381 Basic English of Economics А. ИТУС,ША LESSON З Text: WorId Trade 0rganization Grammar: lnfinitive от Gerund? Terms to remember: The World Trade 0rganization угодами (WTO) administer trade agreements переговори (v) trade negotiations settle trade урегульовувати disputes (v) ocH0BHi npaB0Bi норми 1еда1 ground rules bind (v) зобов'язувати (законом та права наглядати, trade rights oversee (v) Кеер trade iH.) стежити за (кимось, policy (v) чимось) дотримуватися торгово? dumping cost price dealings (pl.) CBiT0Ba справи (угоди) керувати торговельними World Trade Organization The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. It does this by: 672 MODULE Vil GLOBA • administering trade agreements • acting as a forum for trade negotiations • settling trade disputes • reviewing national trade policies • assisting developing countries in trade policy issues through technical assistance and training programmes • reducing protectionism cooperating with other international organizations At the heart of the system are the WTO's agreements, negotiated and signed by a large majority of the world's trading nations. These agreements are the legal ground rules for international commerce. Essentially, they are contracts, guaranteeing member countries important trade rights. According to the WTO agreements, countries have to offer the same conditions to all trading partners. The only way a country is allowed to try to restrict imports is by imposing tariffs. Countries should not use import quotas — limit to the number of products which can be imported — or other resfrictive measures. The agreements also forbid dumping — selling goods abroad at below cost price in order to destroy or weaken competitors or to earn foreign currency to pay for necessary imports. They also bind governments to keep their trade policies within agreed limits to everybody's benefit. Their main purpose is to help producers of goods and services, exporters and importers conduct their business. The WTO is one of three major organizations that oversee international economic relations among governments. The other two are the International Monetary Fund, which works to improve payment arrangements and other financial dealings between countries, and the World Bank, which provides loans to poorer nations. The WTO headquarters are in Geneva, Switzerland. 383 Exercises in Word Study A. UTYGINA Basic English of Economics Ex.l. Form verbs from the following nouns: administrator, negotiation, settlement, assistance, training, cooperation, agreement, improvement, arrangement, dealings, dumping. Ex.2. The following words can be used in more than one way. Underline the correct part of speech for each word as it is used in the text. I. flow 2. dispute 3. guarantee 4. benefit 5. conduct 6. trade 7. issue 8. contract 9. limit a) noun a) noun a) noun a) noun a) noun a) noun a) noun a) noun a) noun b) verb b) verb b) verb b) verb b) verb b) verb b) verb b) verb b) verb Ex.3. Give the English for: CBiTOBa opraHi3aL1i51 TopriBJ1i; KepyBaTH Topr0BeJ1bHHMH yromaMw, propromnc neper0BopiB; yperYJ1b0BYBaTH ToproBi KOH(bniKTW, mor10MaraTH KpaiHaM, 51Ki P03BHBa}OTbcg; ToproBa noniTHKa; rrexHiqHa monoMora; HaBqaJ1bHi nporpaMV1; cniBnpa11K)Barrn 3 Mi)KHaPOAHHMH opraHi3aui51Mw, OCHOBHi npaBOBi HOPMH; rapaHTYBa•ru ToproBi npaBa•, AOTPHMYBaerncq ToprOBOi noniTHKW, Mi)KHaPOÅHi eKOHOMiHHi BiÅHOCHHH; CBiTOBHii 6aHK; HamaBarrn 1103MKW, POJIOBHe ynpaBniHHw, '3HHUIHTH K0HKypeHTa; 3a60POH%TH mer.aniHr; c06iBapTicTb. 674 MODULE Vil GLOBAL BUSINESS Ex.4. Match words from list A with words from list B that have a similar meaning: global administer dispute trade assist cooperate agreement negotiate legal oversee bind manage universal supervise lawful transact contract collaborate help quarrel• oblige commerce Ex.5. Find suitable opposites to the following words and phrases: national; agreement; predictably; legal; agreed; poorer nations. Ex.6. Consult your dictionary and translate the following word combinations into Ukrainian. barter trade; bilateral frade; border trade; cash trade; domestic trade; exclusive trade; export trade; external trade; fair trade; hirepurchase trade; illicit trade; invisible trade; lawful trade; licence trade; luxury trade; mail-order trade; profitable trade; retail trade; service trade; stock trade; tally trade; wholesale trade. Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below: 675 A. UTYGINA Basic English of Economics døøllnøø trade agreernent ground rules nøgotløtlon the Wori Bank tie World Trade Organbdon 1) an international organization that promotes trade in goods and services between nations; 2) an arrangement between countries to follow certain rules on pricing, import duties, etc. when buying from and selling to each other; 3) the process oftrying to reach an agreement through discussion; 4) the central bank, controlled by the United Nations, that lends money to member states; 5) a set of rules; 6) business in general in the buying and selling of goods and services within a country, and with other countries; 7) business done between people or organizations; 8) an agreement, usually written and signed by those making it. Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. His company has just signed a trade . . . with Japan. 2. This new ... company imports craft goods from South America. between the two countries resulted in a new trade agreement. 4. One of the main functions of the WTO is to settle . 676 MODULE Vil GLOBAL BUSINESS 5. By lowering trade ..., the WTO also breaks down Other barriers between peoples and nations. 6. The two companies have had . . . with each other over many years. 7. Developing countries in the third world have applied to • for development grants. 8. The growth of... between member states in the EU is remarkable• 9. I've had ... with him before and he is not to be trusted. 677 MODULE Vil GLOBAL BUSINESS 10. Trade union leaders and employers are meeting to . . . the pay dispute. 11. The WTO, the IMF and the World Bank international economic relations among governments. 12. She . . . the committee meeting to make sure that everything worked smoothly. administered; oversee; settle; commerce; the World Bank; dealings (2); barriers; trade disputes; the negotiations; trading; agreement. Ex.9. Fill in the missing prepositions: The World Trade Organization is an international organization that promotes trade . . . goods and services . . . nations. Most nations belong . . . the World Trade Organization, often called the WTO. A WTO member nation has both rights and responsibilities. The most important right guarantees that a country's export goods and services get the same treatment as those any other WTO member. This treatment includes the same tariffs and other trade restrictions. The main responsibility . . . a member nation is to follow WTO guidelines . international trade. Another important rule involves the resolution trade disputes. case of disagreement a trade issue, a member nation agrees to submit the case . . . a WTO committee . . . review. If the committee finds that a country has violated its WTO commitments, the country must either change its practices or face increased taxes its exports. (in (2), between, to (2), of (3), on (2), over, for) 678 MODULE Vil GLOBAL BUSINESS Ex.10. These words are often confused politics —policy Complete these sentences using the correct form of one of the words above. Make your own sentences to show that you understand the difference in their meaning. 1. Honesty is the best . 2. Only senior management can take . . . decisions. is the art of government. 4. It is company . . . to ensure that all employees receive adequate training for their job. 5. The mayor has been in ... all his life. 6. The ... of that store is that customers may return merchandise for an exchange, but not for a refund. 7. She refused to get involved in office 8. This President thinks more about internal affairs, such as unemployment and education, than about foreign 9. I am not interested in 10. He has chosen a career in . . . . 11. Many people disagree with the President's recent foreign decisions. 12. The WTO's agreements bind governments to keep their trade Exercises in Comprehension Ex.l. Answer the following questions: 1. What is the World Trade Organization? 679 A. UTYGINA Basic English of Economics 2. What is its main function? 3. What does the WTO do to fulfil its main function? 4. What are the WTO's agreements? 5. Who signs these agreements? 6. What do these agreements guarantee? 7. What do they forbid? 8. What do they bind governments to do? 9. What is their main purpose? 10. Who oversees intemational economic relations among governments? 11. Who does the World Bank provides loans to? 12. Where are the WTO headquarters? Ex.2. Sum up what you remember about the World Trade Organization. Ex.3. Translate into English: CBiTOBY opraHi3aui10 TopriBJ1i 6yno CTBOPeHO B 1995 poui. Lle OAHa 3 HaiiMOJIOÅU-1MX MbKHaPOAHUX opraHi3auiM. Bowa e CAHI-IO}O AKa Mae cnpaBY 3 OCHOBHHMH npaBHJ1aMH TopriBJ1i Mix KpaiHarvfH. B0Ha Kepye TOPrOBeJ1bHHMH yronaMH i Aie RK ÅJIA •ropr0BHX neperoBopiB. B0Ha TaKOX cniBrrpa11K)€ 3 iHL11HMH Mi)KHap0AHHMH opraHi3auiHMH. YperYJIY0BaHHf1 TOPrOBHX 3aBmaHb CBiTOBOi opraHi3auii TopriBJ1i. — OAHe 3 HaiiBaXJIHBiUIHX Yromn CBiTOBOi opraHi3auii TopriBJ1i — ue OCHOBHi npaB0Bi HOPMH Mi>KHaPOÅH0i TopriBJ1i. BOHH rapaHTY}0Tb KpaiHaM-qneHaM BOKJIHBi ToproBi npaBa. CBiTOBa opraHi3aui51 rropriBJ1i TaKO)K perymoe TopriBJH0 nocnyraMH Ta iHrrenewryaJ1bH010 BJ1aCHiCTIO. rOJIOBHe 680 MODULE Vil GLOBAL BUSINESS ynpaBJ1iHH51 CBiTOB0i opraHi3auii TopriBJ1i p03Ta1110BaHe B )KeHeBi (I-IJBejiuapi51). 681 Basic English of Economics A. LATYGINA Grammar Revision Infinitive or Gerund? 1. The infinitive is often used when talking about aims and objectives, and the gerund when the verb is the subject of the sentence. He made a decision to start a new life. Learning languages is my hobby. 2. The infinitive is used after adjectives, adverbs, nouns and pronouns; the gerund is used after prepositions and conjunctions. I was surprised to meet him there. She is certain to retire soon. He was shocked. He didn't know what to do. They have a plan to start a business. After graduating from the University he set up his business. He insisted on restructuring the company. 3. Some verbs can be followed by either a gerund or an infinitive. begin, can't bear, continue, hate, like, love, remember, start, stop, try, intend, bother, prefer 4. Some of these verbs change their meanings depending on whether they are used with the gerund or the infinitive to remember + infinitive = not to forget to do something to remember + gerund = to remember something done in the past to regret + infinitive = to be sorry for something you are doing to regret + gerund = to be sorry because of something that happened in the past to stop + infinitive = to stop so that you can do it to stop + gerund = to end an action 682 MODULE Vil GLOBAL BUSINESS Ex.l. Divide the verbs in the box into two categories: A-those generally followed by an infinitive, B-those generally followed by a gerund. Some verbs may appear in both categories, depending on their meaning. admit, avoid, resist, face, offer, miss, intend, remember, regret, stop, risk, forgive, decide, hate, expect, consider, refuse, start, hope, learn, plan, postpone, imagine, involve. Ex.2. Choose the correct way of completing each sentence. 1. Do you remember (to go/going) to the bank last Monday? 2. It's difficult (to make/making) long-term plans. 3. I remember (to meet/ meeting) your boss at the conference. 4. We've made an agreement (to work/working) together. 5. We usually avoid (to discuss/discussing) this subject. 6. You were stupid (to believe/believing) her. 7. He gave up the idea of (to hear/hearing) from his business partner. 8. She has an awful habit of (to interfere/interfering) in other people's business. 9. This job is not worth (to take, taking). 10. The problem was too difficult (to solve, solving). 11. We are looking forward (to see/seeing) him. 12. I was fined for (to exceed/exceeding) the speed limit. 13. It's no use (to explain/explaining) him our problem. 14. He couldn't resist (to go/going) to see his new office. Ex.3. Put the verbs in brackets into the correct form (gerund or infinitive). J. (Travel) across Europe is much more pleasant than (sit) in the oftice, 2. J have no intention of (accept) this invitation. 683 MODULE Vil GLOBAL BUSINESS 3, He made a lot of money by (trade) in the Stock Exchange, 684 Basic English of Economics A. UTYGINA 4. I don't feel like (work) today. 5. He apologized for (borrow) my computer without (ask) permission. 6. After (discuss) the problem for an hour the committee made a decision. 7. She was the last (leave) the office. 8. We thanked him for (solve) our problem so quickly. 9. I expected the boss (keep) his promise. 10. I wish (see) the senior manager. 11. He expects me (lend) him some money but I have no intention of (do) it. 12. He used (work) more efficiently when he was younger. 13. On (hear) the news he got very angry. 14. She avoided (speak) to the secretary. 15. A really prestigious job is worth (look) for. Ex.4. Translate into English using a gerund or infinitive. 1. 2. 3. 4. MeHi npmcpo, 1110 3ani3HHBCA. BOHa 3anepeqyBana, 1110 BKpaJ1a rpollli. Bci 3Hawrb, 1.110 Ham 60c myxe nporpecHBHa JlK)AHHa. 5. 6. 7. 8. 9. 10. 11. Bamco CKa3aTH, 140 BiH rvraB Ha YBa3i. I -In MO)KY noycnacrrncg Ha Te, 1110 BH BJ1aAHaeTe 1-11-0 cnpaBY? He p03YMi10, HOMY BiH yxnnqerrbcq Bim P03MOBH npo ue. 3 HeTepniHHHM oqiKYBaB Ha iHTePB'fO. Fli3H0 cnepeqarrnc% npo qe. Bxe Hiqoro He MO)KHa 3MiHHTH. naM'xra10, mo 3ycTpiqaB noro y Bau10MY Binnini. He PH3MKHYB 3anponoHYBaTH MOMY 1-1K) p060TY. HaroJ10111YBaB Ha TOMY, 11106 noroBOPHTH 3 npe3HAeHTOM K0Mr1aHii. 685 Basic English of Economics 12. 13. Ba1110MY 60cy HenerK0 AOPOAHTH. BiH 3aUiKaBHBCR npaUiBHHKOM, SIKHii Binn0BiAae 3a cwmaHHf1 d)iHaHCOBHX 3BiTiB Ha (l)iPMi. 14. €ÅHHe, 140 BaM norrpi6H0 3P06HTH, — qe CKJ1aCTH 6i3HecnnaH• 15. naM'xraro, Il-to 6aqHB uro peKJ1aMY B ra3eTi. 686 MODULE Vil GLOBAL BUSINESS Speech and Discussion Ex.l. Your boss has asked you to make a short speech about the WTO. Make a draft of what you intend to say. Ex.2. Discuss the benefits for Ukraine from joining the World Trade Organization. Ex.3. Familiarize yourself with the following idioms, consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. She had kittens when she found out her company was bankrupt. 2. He has no imagination. He can't see beyond the end of his nose. 3. He isn't worth his wages; it's time we gave him the elbow. .1 8 4. He is a great hand at giving advice, but when it comes to doing some work, he is not so good. 5. I'd love to take a holiday with you but I am tied hand and foot to my business. Ex.4. Comment on the following: «A business cannot afford conscience» (Anonymous) 393 Basic English of Economics A. UTYGINA LESSON 4 Text: Globalization and Economic Policy Grammar: The Participle Terms to remember: MYJ1bTHHaqiOHaJ1bHa KorvmaHiR, multinational company 6araT0Haui0HaJ1bHa KOMrraHiR 3aMrvraTHcq, 3aiiH51THcn engage (v) interdependent competitive saturated opportunity emerging markets B3aeM03aJ10KHHPi KOHI€ypeHTocr1POMO>KHHii HacuqeHMii Haroaa, MO)KJIHBiCTb HOBi PHHKH•, PHHKH, 1110 d)OPMYFOTbCX, PHHKH, 1.110 P03BHBaK)TbCq; KpaiHH 3 nepexiAH0K) eKOHOMiKOÆO supply chain .namuor flOCTaqaJ1bHHKiB eK0H0Miq1-1e 110)KBaBneHHA, niAHeceHH% (eKOHOMiKM) recovery growth recession 3POCTaHH* cram (eKOHOMiHHHü), peueciR, depression COQ 3aHenaa aenpeciR, nepi0A MJIABOi AiJ10B0i aKTHBHOCTi, eKOHOMiqHa KPH3a pace involvement outsource (v) TeMn, xiA 3anyqeHH51 3anyqaTH 30BHi111Hi A)Kepena foreign direct investment BHKOHaHHS1 neBHHX p06iT 688 Basic English of Economics npqrvti iH03eMHi iHBecTHuii (FDI) commitment 3060B'S13aHHq; nPHXHJ1bHiCTb; 3aqiKaBJ1eHiCTb 689 MODULE Vil GLOBAL BUSINESS Globalization and Economic Policy We live in an era of a Global Economy where multinational companies have more power to run economies than governments. Old political empires have been replaced by economic ones, with companies aggressively, seeking to dominate world markets. As more and more firms engage in international business, the economy of the entire world is becoming a single interdependent system, a process called globalization. The main drivers of globalization are: Cost factors. Companies are looking for cheaper labour and manufacturing costs to enable them to stay competitive. Market factors. As domestic markets become saturated, so emerging markets offer new opportunities. The BRICs (Brazil, Russia, India, China) could dominate world trade in the 21 st centure. Companies need to establish a global presence because customers are also global. It is dangerous to stand aside as competitors merge and make alliances. Technology factors. The Internet makes comparison of supply chain costs easy for manufacturers, and comparison of final price easy for the end-user. Mobile communications allow employees to keep in touch all over the world. Global business cycle. The «business cycle» — recovery, growth, recession, depression — used to happen in different national economies. With the integrated global economy, it is now intemational. In every turn of the cycle, the pace of globalization is likely to increase — particularly during «the recovery» and «growth» phases. If a company wants to trade outside its own national borders, it has three basic strategies, depending on the level of involvement in the foreign market: I. Import/Export. This is the lowest risk but also gives the lowest profit potential. MODULE Vil GLOBAL BUSINESS 2. Outsourcing. If companies want a deeper level of involvement they can outsource some or all of their manufacturing. 3. Fireign direct investment (FDI). This is the highest risk but gives the most control and shows the most commitment to the global market. Here companies buy property and businesses in the foreign nation. FDI includes acquisitions to create overseas divisions (subsidiaries), joint ventures and strategic alliances. 395 Basic English of Economics A. UTYGINA Exercises in Word Study Ex.l. Form nouns and verbs from the following adjectives: global, competitive, saturated, integrated, emerging. Ex.2. Give the English for: rn06aJ1i3auiR, 301H111HTHC51 KOHKypeHTOC11POMO)KHHM, BapTiCTb BHP06HHUTBa, BHYTpi111Hi PHHKH, I-lacuqeHHä PHHOK, HOBi MO)KJIHBOCTi, 110KY11L1i, AOMiHYBaTH B cBiT0Biii rropriBJ1i, KOHKYpeHTH, 110PiBHK)BaTH, BHP06HHK, CITO>KHBaq, HOBi PHHKH, 11PAMi iH03eMHi iHBecTHL(ii, ctpaTeriqHi co}03U, cniJ1bHe nimrrpnervrcTB0, 6araT0Haui0HaJ1bHa KOMnaHifl, eKOHOMiLIHe 110>1CBaBneHHH. Ex.3. Match words from list A with words from list B that have a similar meaning: manufacturer contract out end-user permit producer buyer slump upswing increase downtum customer consumer allow recovery growth recession depression outsource Ex.4. Find words with a similar meaning and then put them in order to show the business cycle. 692 Basic English of Economics 1 2. 3. 4. 693 MODULE Vil GLOBAL BUSINESS Ex.5. Find suitable opposites to the following words: employee, end-user, allow, increase, recovery, expensive, safe, global economy, dependent, loss. Ex.6. Match the adjectives in the left hand column with the nouns in the right hand column. businesses presence cheapcustomers saturatedbusiness cycle globaleconomy finalprice mobilelabour emergingmarkets communications economies Ex.7. Look at the words and phrases in the box. Match them with the correct definition from the list below. 1) the amount of money spent on running a business or part of it; 2) of or affecting the whole world; 3) a person or company that offers the same or better goods and services as another and therefore competes for the same customers; 4) 5) 6) 7) MODULE Vil GLOBAL BUSINESS the person who actually uses a product; a rise in the buying and selling of shares or of the economy; a slowing down or fall in the business activity; a period with very little economic activity, resulting in mass unemployment and the failure of many businesses; 397 Basic English of Economics A. UTYGINA 8) the idea that the world is developing a single economy and culture as a result of improved technology and communications; 9) a series of processes involved in supplying a product to someone; 10) to control something or someone because you have more power or influence; 11 ) developing markets; 12) situations where manufacturers will sub-contract production to a third party, often in a foreign country. Ex.8. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. The ... economy has become increasingly unstable. 2. At these prices, we are not covering our 3. Many firms are struggling to survive in a highly marketplace. 4. The job pays well, but there's no much for career advancement. 5. She tends ... the conversation. 6. There were still no real signs of an economic 7. The country is sliding into a 8. All our major . . . are also bidding for the contract. 9. The ... economy showed no improvement. 10. Two of Indonesia's top banks are planning . 11. If a company . . . goods or services, it pays workers from outside the company to supply the goods or provide the services. costs, global, opportunity, competitive, recovery, to dominate, competitors, depression, to merge, outsources, domestic 696 MODULE Vil GLOBAL BUSINESS Ex.9. Fill in the missing prepositions. 1. The internationalisation. capital, the growth the economic, and thus political power trans-national corporations and liberalisation . . . the financial markets are three key aspects . . . globalization. 2. Countries are forced to participate the global economy . the rules set ...institutions like the World Bank, International Monetary Fund and the WTO. 3. Free trade has been billed . . . economists as key . . . advancing global economic growth. 4. Globalization is the process . . . which events and decisions . . . one part ... the world have come to affect people quite another part . . . the world. 5. Globalization has weakened, and perhaps destroyed the distinction . . . «the domestic» and «the foreign» leading . . . the emergence . a world society. 6. National economies have been integrated a single, global economy. 7. Globalization implies that nation-states can no longer be viewed as independent actors . the world stage. 8. Outsourcing is when a manufacturer subcontracts production a third party. (of— 7, in — 4, according to, by — 2, to — 3, through, between, on, into) Ex.10. Build your vocabulary. Learn phrasal verbs for business! to contract something — to arrange for work to be done by out (to somebody) another company or by somebody• outside your company. Basic English of Economics Read these sentences carefully and translate them into Ukrainian. 1. 2. 3. 4. 5. 6. 7. 8. We contract out most of our IT work. The company contracts the printing out to a private firm. They have stopped doing their own catering and now contract it out. Training is often contracted out to specialist firms. The company contracts out its advertising. We contract out the office cleaning. Many companies contract out design. The company has been contracting out its transportation abroad for the past three years and has reduced its costs significantly. 399 A. LATYGINA Exercises in Comprehension Ex.l. Answer the following questions: 1. What process is called globalization? 2. What are the main drivers of globalization? 3. Why do companies look for cheaper labour and manufacturing costs? 4. What countries could dominate world trade in the 21 st century? 5. Why do companies tend to establish global presence? 6. What role do technology factors play in globalization? 7. What is the global business cycle? 8. What are three basic strategies for companies to trade abroad? 9. What is outsourcing? 10. What does foreign direct investment include? Ex.2. Match the company responses to globalization to their descriptions below. 698 MODULE Vil GLOBAL BUSINESS import/export, joint venture, outsourcing, strategic alliance, foreign subsidiary 1. A company (usually small or medium-sized) trades directly with another separate company in the foreign market. 2. A long-term partnership between two companies of very different sizes, such as a large manufacturer and one of its suppliers. The relationship is not very close, so there is usually no sharing of costs, risks, management or profits. Motorola and Oracle have both used this approach. 3. A partnership with two or more companies (often from different countries) join to undertake a major project or start a business activity. Volkswagen and General Motors entered the Chinese market through this route. 4. An international company uses a low-cost manufacturer in another country, and then sells the products under its own brand name in other markets. This has been done by many firms in the IT area and in the automobile industry. 5. A parent company directly owns a company in another country. Business operations are under the control of local management, although Head Office is responsible for global strategy. Examples include Nestle, Toyota and Siemens. Ex.3. Sum up what the text says about: globalization process cost factors of globalization market factors of globalization • • • technology factors of globalization outsourcing foreign direct investment global business cycle Basic English of Economics Grammar Revision The Participle 1. The participle has the following forms: Active Passive Present (Participle I) writing being written Perfect (Participle I) having having been written written Past (Participle Il) written 2. Participles can be used like: a) verb forms. Participles are used with the auxiliary verbs «be» and «have» to make progressive, perfect and passive verb forms. He was answering questions when I came in. He has forgotten my name. You'll be informed soon. b) adjectives Your offer seems exciting. The office window is broken. c) adverbs The secretary ran screaming out of the house. d) clauses Having spent all his money, he asked father to help him. Being unable to help, we gave him some money. 401 A. UTYGINA 3. The structure object + participle (clause) is used after verbs of sensation (e.g. see, hear, feel, watch, notice, smell) and some other verbs (e.g. find, get, have, make) I saw your secretary sending a fax to our business partner. I found him speaking to a customer. You ou htto et our car re aired. 700 MODULE Vil GLOBAL BUSINESS Ex.l. Insert Participle I of the verbs in brackets. 1. 2. 3. 4. 5. 6. We spent about an hour (take) our papers to the office. Generally (speak), this problem is rather difficult. (Work) a year in Germany he returned to Ukraine. He sat in his arm-chair (smoke) a cigarette. Our new manager is a young man (wear) glasses. The Japanese businessman bowed low and (take) my hand kissed it. 7. (Say) this, he left the room. 8. (Be) busy, he postponed his trip to Italy. 9. I stood (watch) the people who were entering the office. 10. He went to work, (leave) the letter on the dressing-table. 11. The conference (take) place at the university is devoted to the problems of green tourism. 12. While (wait) for you I have translated this article. Ex.2. Insert Participle Il of the verbs in brackets. I. She entered the room (accompany) by her superiors. 2. My boss looked (worry). 3. The letter will lose its importance if (not deliver) immediately. 4. (Press) for time, he couldn't even phone his wife. 5. She will certainly help if (ask). 6. When (invite) he always takes part in our discussions. 7. The problems (discuss) were of great importance. 8. Those (interview) will start training next week. 9. The (lose) document was found. 10.The secretary didn't even look at me as though too (occupy) with what she was writing. 11. I am going to have my car (repair) next week. 12. In Turkey your coat should be (button) when you are with superiors. 13. Don't expect (write) contracts in most Moslem countries. Basic English of Economics Ex.3. Insert Participle I or Participle Il of the verbs in brackets. 1. When (pay) by cheque, you must show a bank card. 2. (Know) that he was in trouble, I offered to help him. 3. (Find) nobody in the office, I left. 4. (Write) in very bad handwriting, the message was diffcult to read. 5. Time (permit), we shall stay for a few days in London. 6. The solution (adopt) was welcomed by our manager. 7. All things (consider), there is little hope of his arrival. 8. I was driving a car (lend) me by my close friend. 9. The necessary sum of money (save up), I could buy a new computer. 10. We found her (work) in the office. 11. I heard them (argue) again. 12. (Hope) to find the lost letter, he searched everywhere. 13. (Think) he had made a mistake somewhere, the accountant went through his calculations again. 14. When (ask) to help them she refused without hesitating. 403 702 A. UTYGINA Basic English of Economics Speech and Discussion Ex.l. What do you understand by the term «global company»? Can you give some examples? Ex.2. Discuss with your groupmates: • Is globalization a reality or a myth? • Is world government an attractive prospect? • Is the process of European integration unstoppable? Ex.3. Do you think that a globalised economy means opportunity for all or greater insecurity? Ex.4. Can you think of any disadvantages to outsourcing? Ex.5. Think about the following: <<Globalization is great! Everyone benefits. We don't see workers in poor countries complaining — they prefer to work for international companies». Ex.6. Familiarize yourself with the following idioms. Consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. I will get it by hook or by crook. 2. His business is in the red. 3. The company is now in the black. 4. I got Mexican promotion. 5. The company has now turned the corner. Ex.7. Comment on the following: 703 A. UTYGINA Basic English of Economics «When you hire people that are smarter than you are, you prove that you are smarter than they are». (Anonymous) 704 MODULE Vil GLOBAL BUSINESS LESSON 5 Text: Business across Cultures Grammar: Countable and Uncountable Nouns. Either ... or; both ... and; neither ... nor Terms to remember: do's and don'ts npaBnna 110BeÅiHKH spell out (v) P03UIHd)POBYBarrn; rlORCH}OBaTH TOHHO HaqaJ1bHHK, cTap111Hii superior bow (v) outcome patience gift acceptable embarrassment KJ1aH51TUCS1 pe3YJ1bTaT TepniHHA, Tep11J1%HiCTb nomapyH0K npHiiHATHHii 36eHTexeHHW, p03ry6neHicTb•, 3aMi111aHH51 tip qaM0Bi; HeBeJIHKHii rp0L110BHM nomapyH0K bill paxyH0K (3a TOBap TOIIIO) custom cause offence to smb (v) be offended (v) 3Buqaä nocJ1yrH, 06pa-3HTH (CKPHBAHTH) KoroCb 6YTH 06paxeHHM Business across Cultures Before doing business abroad it is important to understand the social and business culture of a country in which you are going to operate. Appropriate business etiquette is expected of MODULE Vil GLOBAL BUSINESS everyone. However, few are trained in the art of good manners. The following are just a few of do's and don'ts for business people visiting a foreign country: 405 A. UTYGINA Basic English of Economics • In the USA, it is polite to look people in the eye, to offer your • • • • • • • hand, and to smile. However, eye contact is seldom kept during British conversations; In France people shake hands much more than Americans or most Europeans; if you fail to shake hands, you may be considered rude; Never discuss business over dinner in France; The French have a great respect for privacy. Knock and wait before entering a room; Always be punctual in England. Arriving a few minutes earlier for safety is acceptible; Don't criticize royalty in Great Britain; Germans do not like surprises. Sudden changes in business transactions, even if they may improve the outcome, are unwelcome; In Turkey, your coat should be buttoned when you are with superiors; Don't pass documents with the left hand in Saudi Arabia; Do not bring liquour to an Arab house. For many Arabs, alcohol is forbidden by religious law; • In Arab countries, don't admire an object openly. The owner may • • • • feel obligated to give it to you. Don't expect written contracts in most Moslem countries; Don't expect the contract with South Korean businessmen to spell out all the details. Written contracts are typically documents that change as conditions do; In Japan and Korea bowing, rather than shaking hands, is usual behaviour; In Japan it's very important to get everyone's opinion. Patience is a prime factor in their culture. They also avoid saying directly; 707 A. UTYGINA Basic English of Economics • Those who dress according to their status or position impress the Japanese. Dress to impress; • Avoid the «OK» sign; in Japan it means money; • Offer gifts in Japan. The Japanese enjoy giving and receiving beautifully presented gifts; 708 MODULE Vil GLOBAL BUSINESS • • • In China expensive presents are not acceptable and cause great embarrassment. Give a collective gift from your company to theirs; In British restaurants a tip is included in the bill. In some Mediterranean countries, such as Greece and Spain, the customer is expected to pay a little extra for satisfactory service; while in Japan tipping is not expected; Thus, if you are aware of the customs of the country you are visiting, you will not cause offence or be offended. Exercises in Word Study Ex.l. Form nouns from the following verbs: fail, consider, behave, avoid, embarrass, criticize, expect, offend, admire. Ex.2. The following words can be used in more than one way. Underline the correct part of speech for each word as it is used in the text. I. 2. 3. visit smile offer a) noun a) noun a) noun a) noun b) verb b) verb 4. shake 5. 6. bow cause a) noun 7. 8. tip bill a) noun a) noun 9. present a) noun b) verb b) verb b) verb b) verb b) verb b) verb b) verb a) noun Ex.3. Give the English for: 709 MODULE Vil GLOBAL BUSINESS 06rOBOP10BaTH AiJJOBi nwramur, nepenaBaTH AOKYMeHTW, rlUCbMOBHii KOHTpaKT•, 110ACHIOBaTH BCi wrani•, 3BHqaüHa 110BeAiHKa•, TepruuqicTb; np0110HYBaTH 110AapyH0K; Aopori nomapyHKH; 36eH•rexceHHq•, qaä0Bi; paxyH0K (3a nocnyrn)•, 06pa3HTH Korocb; 6YTH 06pa)fCHHM•, 3Bnqai rcpaiHH', npaBHna rlOBeÅiHKW, pe3YJ1bTaT. 710 MODULE Vil GLOBAL BUSINESS Ex.4. Match words from list A with words from list B that have a similar meaning: custom gift operate spell out rude behaviour avoid expensive tip extra gratuity costly evade impolite conduct explain in detail act habit additional present Ex.5. Find suitable opposites to the following words: rude; cheap; buttoned; to succeed; patience; to permit; acceptable. Ex.6. Look at the words and phrases in the box. Match them with the correct definition from the list below. rudø royalty supenbr edquette 1) formal rules for polite behaviour in a society; 2) something done in a society because of tradition; 3) money given to smb. for doing smth. 4) rules for behaviour; 5) a person who is higher in rank or importance; 6) an agreement , usually written and signed by those making it; 7) smth. given freely to another, a present; 711 A. UTYGINA Basic English of Economics 8) a king or queen and family; 9) showing bad manners, impolite. Ex.7. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. I left the waiter a generous 2. It takes time to learn the . . . for business people visiting a foreign country. 3. 4. 5. 6. My boss gave me a watch as a birthday I gave the cab driver a $ 1 My . . . in the company have requested that I cut costs. He does not understand the technological process; you will have . . . it for him. 7. Wearing a shirt without a tie is . . . dress for dinner here. 8. It is British . . . to drink tea at four o'clock each afternoon. 9. She was . . . that we didn't accept her invitation to dinner. 10. The basic service costs $ 100 plus 20 percent for the . 11. This hotel is more . . . than I expected. 12. A salesperson must . . . market prices. 13. It wasn't very . . . to leave without saying thank you. 14. It was . . . to walk away while that customer was talking to you. rude; polite; be aware of; expensive; extras; offended; custom; acceptable; to spell out; superiors; gift; do's and don'ts; tip (2). Ex.8. Fill in the missing prepositions. A guide to doing export business in Japan Be prepared . .. important cultural and language difficulties. This may seem obvious but some businessmen try to get by Japan hiring a good interpreter who can also explain Japanese traditions and customs. Trade personal contact a senior level. This is more important that trading . . . price. 712 MODULE Vil GLOBAL BUSINESS Patience pays dividends. It may take several visits before an order comes Quote . . . local currency. Emphasise your product's country , . . origin. Offer gifts. However, it is not the value the gift, but the fact it is a present . . . you that counts. (for, in (2), without, on (2), at, through, of (2), from) 713 A. UTYGINA Basic English of Economics Exercises in Comprehension Ex.l. Answer the following questions: 1. What should a businessman know before starting business abroad? 2. In which country is it not recommended to discuss business over dinner? 3. In what countries will you never make written contracts? 4. Where do they change written contracts as conditions do? 5. What is considered polite in the USA? 6. What behaviour is usual in Japan and Korea? 7. What impresses the Japanese? 8. Do Germans like surprises? 9. In which country do they avoid saying «no» directly? 10. You shouldn't bring liquour to an Arab house. Why? 11. What gifts are not acceptable in China? 12. Should you not criticize royalty in Great Britain? 13. In which country should you shake hands? 14. Is the custom of giving tips still common in many countries? 15. When do you tip and how much? Ex.2. Put these statements about customs and culture into the correct order. 1. 2. 3. 4. 5. Clock/bad/a/is/symbol/of/a/luck. (China) Directly/»no»/avoid/they/saying. (Japan) Never/business/must/you/discuss/dinner/over. (France) Luckiest/is/the/number/eight. (China) Responsibility/managers/to/expected/are/full/take. (Saudi Arabia) 6. Always/taught/have/not/been/business/do/to/anyone/but/with/ friends/they. (Mexico) 714 A. UTYGINA Basic English of Economics 7. Rusiness/do/they/quickly/as/possible/as. (Britain) 8. You/if/shake/fail,mands/to/may/considered/be/rude/you. (France) 9. Take/they/queues/seriously/very/never/and/jump/line/in. (Britain) 10.Make/people/clear/a/distinction/personal/between/business/an J d/ relationships. (Germany) J. Titles/required/job/are/generally/talking/to/when/colleagues/ business. (Mexico) 715 MODULE Vil GLOBAL BUSINESS Ex.3. Are the statements in exercise 2 true for Ukraine? Write similar sentences about customs in Ukraine, using the following topics: parties • business numbers or politeness lucky objects Ex.4. Compare the customs in the text with those in Ukraine. What are the differences and what are the similarities? Grammar Revision Countable and Uncountable Nouns 1. Countable nouns are those that have both a plural and singular forms: things/persons that we can count. They are used with words such as the, a, several, many, (a) few and numbers. e.g. a computer, two computers 2. Uncountable nouns have only one form. This may be grammatically singular: e.g. advice, information, equipment, traffic, progress, work, trouble, furniture, news, money, cash, knowledge, luck, fun, accommodation, expertise, feedback, hardware, leisure, weather, bread, behaviour; or grammatically plural: e.g. personnel, police 3. Uncountable nouns cannot take the indefinite article (a/an), they are used with words such as some, much, (a) little. You can't use numbers with them. 4. Some nouns can have both plural and singular verb forms e.g. team, public, government, committee, group, media, staff 5. Some nouns are countable with one meaning and uncountable with another meaning. e.g. That conversation took too much time. How man times have I heard that? MODULE Vil GLOBAL BUSINESS 411 A. UTYGINA Basic English of Economics Ex.l. Identify the countable and uncountable nouns in the list below: money, economics, cheque, profit, production, product, progress, furniture, news, information, desktop, hardware, hacker, user, luggage, advice, business, virus, bug, equipment, feedback, personnel, bond, job. Ex.2. Make sentences using the prompts below. 1. Some people /be/always/late. 2. This new equipment/be/expensive. 3. The police/be looking for/the stolen/computer? 4. His/advice/be/useful? 5. The information/you/need/be/in the computer. 6. The personnel/be/pleased/with/the new/ equipment? 7. The board/discuss/the financial/statement/yet? 8. Where/be/the money/that/you/borrowed/yesterday? 9. The weather/be/really/good/today. 10. Hardware/be/the actual/machinery/of/a computer. 11. All/the luggage/be/here/in the office? 12. Philips' headquarters/be/in Eindhoven/the Netherlands. Ex.3. Complete the sentences below by choosing the correct alternative of the two given in brackets. 1. The letter contained very . . . useful information. (few/little) 2. He has got so . . . money that everyone envies him. (much/many) prices rose during the second half of month. (most/less) 4. The speaker was given very . . . time. (few/little) 5. We had to learn . . . information. (much/many) 6. This new encyclopedia contains . .. knowledge. (much/many) 718 MODULE Vil GLOBAL BUSINESS 7. You've heard so . . . news that you know everything about this event. (many/much) 8. She's made .. . progress this year. (many/much) 9. We have . time before the end of the meeting. (few/little) 10. How . . . times have you seen this film? (much/many) 11. How .. . money have you got? (many/much) 12. We need data before we make a final decision. (much/many) Either . .. or• both and' neither ... nor a) 1. We use either or to talk about a choice between two possibilities. Either you or I can phone him. 2. We use both ... and to join two ideas. She speaks both English and German. 3. We use neither nor to join two negative ideas. He speaks neither French nor Spanish. b) 1. We use either alone to mean «I don't mind which one.» «Do you want to go to the cinema or to the theatre?» «Either» 2. We use neither alone to mean «not one or the other» «Are we going to the theatre or to the cinema?» «Neither. We are going to the museum.» 3. We use both alone to mean «one and the other.» «Do you like jazz or country music?» « I like both.» Ex.l. Complete these sentences with both ... and, either ... or and neither ... nor. 1. Where would you like to go? We can go . . . to the theatre to the museum. 2. She promised to contact me but she phoned . . . wrote. 719 A. UTYGINA 3. 4. 5. 6. Basic English of Economics These companies sell . . rent cars. The pages of the Web are attractive . . . interesting. the Internet . . . the Intranet use the same technology. The information was useful . . . interesting. 7. . . . we . . . he was tired. 8. He wants to be . . . a banker . . . an accountant. 9. This car is . . . expensive . uncomfortable. 10. She owns . . . a house . . . a car 11. It is . . . more economical . . . quicker to use my computer. 12. She has a pleasant personality . . . the right qualifications for this job. 13. J am very busy . . . this week . . . next week. 14. I can go . . . by car by train. 15. I trust . . . the lawyer . . . his partner. 720 A. UTYGINA Basic English of Economics Ex.2. Complete these sentences with either, neither, both. 1. 2. of the candidates deserved promotion. Is . . . of you interested in this information. job was suitable for him. of the proposals was interesting. computers are very good. 6. Can . of you surf the Net during working hours? 7. of my partners is Ukrainian. 8. . cars are very reliable. I don't know which one to buy. 9. of the investments are attractive. 10. friends worked very hard and now they have their own business. 11. I can accept . . . proposal. 12. . of them worked very efficiently. 13. . plan is acceptable. 14. We can follow route to go there. 15. Cheque or credit card — you can use .. Ex.3. Translate into English. 1. Hi BiH, Hi Moro AiJIOBHV1 napTHep He TIPHii111JIH Ha 3acimaHH1 PaÅH AHpeKTOPiB. 2. AK H, TaK i Min mpyr 3P06WIH BCe MOWIHBe, 1406 monoM01TM ii0MY BHPi111HTH LUO np06neMY. 3. 4. H, Min ceKpeTap 5. 6. 7. 8. A60 BH 3MiHHTe CBOi nnaHH, a60 MH 3aJIH111HMOCb BA0Ma. BaM. BiH 6YB eraKHii 3HePBOBaHHii, 1110 He Mir Hi npaLU0BaT1d, Hi BiÅnoqHBaTH. Hi BiH caM, Hi Moro miTH He BMiJIH CKOPHCTaTHC51 Haromoro. AK q, TaK i MOT APY3i 111HP0K0 KOPHCTY€MOCR IHTepHeTOM. A60 BH 6ymerre 3MYL11eHi KYIIHTH K0M11'}0Tep, a60 BH He 3Moxerre BHKOHaTH Luo p060TY. 721 A. UTYGINA 9. Basic English of Economics He XBHJIK)WreCb, a60 a60 Mih apyr 3ycTpiHervf0 Bal.Uff0 napTHepa no 6i3Hecy. 10. Hi BiH, Hi Moro Konern He 3MorJIH peani3YBaTH gen npoeKT. 722 MODULE Vil GLOBAL BUSINESS Speech and Discussion Ex.l. Discuss with your groupmates what social etiquette is important for business travellers to Ukraine. Ex.2. How much do you know about different cultures around the world? Choose another country with a business culture that is very different from your country. Use newspapers, magazines, books or the Internet to find information about doing business in this country. Make a list of «dos» and for that country. Ex.3. Think about what information or advice you could give to visitors to your country. Ex.4. Do people tip in Ukraine? Do you think we should tip? Why? Why not? Ex.5. Think about the following: «Communication between countries is important. But it is also important to have an identity». Ex.6. Familiarize yourself with the following idioms, consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. In any profession, you have to learn to take the rough with the smooth. 2. Politicians take pot shots at each other during election campaigns. 3. I talked myself blue in the face trying to persuade her to save money for retirement. 4. She really sank her teeth into the problem and solved it. 5. We have a difficult problem and I must put on my thinking cap and find a solution. 723 MODULE Vil GLOBAL BUSINESS x.7. Comment on the following: <<Patience pays dividends». (Anonymous) 724 UTYGINA Basic English of Economics A. TEST 7 (MODULE vrr) Choose the word or word combination to match the definition. 1. a) Trade domestic between trade buyers b) in foreign one country tradeand sellers c) national in other tradecountries. 2. An amount that is taken offthe normal selling c trade price discountof a product. a) ) trade surplus b) trade mark 3. A group of countries that agree to trade with each other on favorable terms. a) trade association b) trade block c) trade creditor 4. An amount that must be paid when particular goods are imported into a country, or something when they are exported. a) barrier b) restriction c) tariff 5. A limit on the amount of a particular good that may be imported into a country during a given period of time. a) protectionism b) quota c) deficit 6. A set of restrictions imposed by a government on buying and selling foreign currencies. a) exchange control b) exchange rate c) foreign exchange 7. Trade between countries with few government restrictions. a) external trade b) international trade c) free trade 8. The level of material comfort and wealth that a person or community has. a) living wage b) living standard c) standard rate 9. A situation where a country exports more goods than it imports. a) trade investment b) trade surplus 725 c) trade deficit UTYGINA Basic English of Economics 10. Goods, as opposed to services, that are sold to other countries. a) invisible exports b) visible imports c) visible export 11. The transport of goods by sea or air. a) carriage b) freight c) front loading 726 MODULE Vil GLOBAL BUSINESS 12. An item, a service, an idea that is brought into one country from another. a) export b) import c) cargo 13. An international organization that promotes trade in goods and services between nations. a) the World Trade Organization b) the World Bank c) the International Monetary Fund 14. The process of tying to reach an agreement through discussion. a) negligence b) necessity c) negotiation 15. An agreement, usually written and signed by those making it. a) commerce b) contract c) dealings 16. Something done in a society because of tradition. a) customary b) customs c) custom 17. The central bank, controlled by the United Nations, that lends money to member states. a) the Central Bank b) the Federal Reserve System c) the World Bank 18. The amount by which the value of a country's imports is greater than the value of its exports. a) trade bill b) trade deficit c) trade surplus 19. An arrangement between countries to follow certain rules on pricing, import duties, etc. when buying from and selling to each other. a) trade b) trade agreement c) trade directory association 20. A small amount of money (in addition to the normal charge) to a waiter, taxi-driver, etc. to thank him/her. a) tip b) title c) token MODULE Vill INFORMATION TECHNOLOGIES 727 IN BUSINESS LESSON 1 Text: Businesses and Grammar: Possession the Internet Terms to remember: MO)KJIHBiCTb, opportunity simplify (v) access (v) benefit (v) enquiry corporate website publicity cnp0111YBaTH BHKOPHCTOBYBaTH mocTyn AicTaBarrn KOPHCTb 3annm•, 3ar1HTa1--1HR KopnopaTHBHa Be6-CTOPiHKa COQ peKJ1aMa, peKnaMYBaHHq; nponaryBaHHH BinnpaBJIRTH, HamcmnaTH, nepemaBaTH transmit (v) r time-saving method Merom, LAO 3a0111amycye qac 06cnyr0BYBaHH51 KJ1i€HTiB HepyXOMiCTb, HepyxoMe MaiHO customer service real estate HaroÅa 728 MODULE Vil GLOBAL BUSINESS Businesses and the Internet Businesses today are faced with an overwhelming amount Of data and information about their customers, their competitors and their own operations. The ability to manage this information can mean the difference between success and failure. The Internet opens up vast resources and business opportunities for millions of users around the world. Computer networks allow collegues to communicate effectively and to share resources and information efficiently. Computers have helped society by increasing productivity and simplifying many serviceS such as checking accounts, credit cards, and telephone service• Because of their speed, accuracy, storage capabilities, and ability to make comparisons, computers have emerged as a powerful tool for information management. 729 English of Economics Companies can use their presence on the Web to access the growing number of websites of interest. There are different ways in which businesses can benefit from its functions: • Businesses use e-mail to deal with customers, to make and respond to enquiries quickly and to communicate with employees. A corporate website may be used for publicity, for selling or for sharing information. + Marketing on the Web can be achieved by setting up a website and making it attractive to visitors. • The Internet is a powerful tool for gathering data. Companies can use it to look up other companies and their products, access financial information, find market information, foreign exchange rates and so on. • • • • Using computer networks to transmit audio and video data between two or more people in different locations (videoconferences) is a time-saving method of communication. Many companies place their recruitment needs on their own websites or on the websites of recruitment agencies. Large corporations place their annual reports on their websites in order to provide a service to their shareholders. Online customer service. Major areas include financial services, reservations for travel and holidays, sale of real estate, etc. Internet banking. With internet banking, it is possible to transfer funds on-line from one account to another. Exercises in Word Study Ex.l. Form verbs from the following nouns: 730 MODULE Vlll INFORMATION TECHNOLOGIES IN BUSINESS Basic presence, response, publicity, location, recruitment, benefit, transmission. Ex.2. Give the English for: p06HTH 3anwr•, cniJIKYBaTncH 3 npauiBHMKaMn•, 06cnyrOBYBaHHR KJ1ieHTiB•, KopnopaTHBHa Be6-CT0PiHKa; niJIHTHCfl iH(bopMauieo•, nepeBara; 36mpaTH maHi•, BanlOTHHÄ Kypc; KOM11'10TepHa Mepexa; BiÅe0K0Hd)epeHL1iw, Merr0Å, 1.110 3a011WP1€ye qac; piHHHii 3BiT; HanaBaTH nocnyry; mcui0Hepu•, OTPHMYBaTH KOPHCTb; Hepyx0MiCTb; KOHKYPeHTH. Ex.3. Match words from list A with words from list B that have a similar meaning. opportunity broadcast collect advantage answer enter access respond gather transmit chance benefit Ex.4. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. 1. Recently there has been considerable expansion of businesses which provide integrated media services through networks such as the Internet. 2. The product has sold well considering it was not given much advance . 3. Our . . . is used for delivering stock and bond information. 4. The firm tried to avoid adverse . about its faulty products. 731 English of Economics on the Web can be achieved by setting up a website and making it attractive to visitors. 6. A database of employees is maintained on your 7. He is the owner of a new . . . service, specialising in providing a variety of foodstuffs which can be ordered on the Internet. 8. Cybercash could provide an important stimulus to . . . sales. 9. Her new job represents an excellent to make much more money. 10.She owns . . . in the country. online (2); PC; marketing; opportunity; corporate website; publicity (2); real estate; multi-media. 732 MODULE Vlll INFORMATION TECHNOLOGIES IN BUSINESS Ex.5. Fill in the missing prepositions: Financial services companies are rushing to provide teenagers . . . easier ways . . . spending their savings online. Teenagers are just the sort . . . people an Internet retailer wants to sell . . ., and the things they want to buy — games, CDs and clothing— are easily sold . . . the Web. But paying online is a tricky business . . . consumers who are too young to own credit cards. most cases, parents pay . . . these purchases credit cards, an arrangement that is often unsatisfactory . . . them and their children. One way to help them convert notes and coins . . . cybercash is ... prepaid cards such . . . Internet Cash . . . the US and Smart cards ... the UK. (with (2), of (2), to, on, for (3), in (3), into, through, as) Ex.6. Translate the following sentences into Ukrainian. See how you translate the words «advantage» and «disadvantage». 1. The greater experience of our company gives us an advantage over our competitors. 2. The high cost of living is a disadvantage to living in a big city. 3. Our product is cheaper than the other, so we have an advantage. 4. | will take advantage of my business trip to London to see beautiful sights. 5. Many of the disadvantages of the project were quite clear. 6. She had all the advantages in life, such as wealthy parents and first-rate education. 7. This contract has many advantages. 733 MODULE Vlll INFORMATION TECHNOLOGIES IN BUSINESS 8. The salesperson took advantage of me by charging me too much. 9. His inability to speak English puts him at a disadvantage when he attends international conferences. 10.He always takes full advantage of the mistakes made by his rivals. 734 MODULE Vlll INFORMATION TECHNOLOGIES IN BUSINESS A. LATYGINA Basic Exercises in Comprehension Ex.l. Answer the following questions: 1. Why does a business need to manage information? 2. What business opportunities does the Internet open up for its users? 3. How can companies use their presence on the Web? 4. What do businesses use the e-mail for? 5. What may a corporate website be used for? 6. How can marketing be achieved on the Web? 7. What can companies use the Internet for? 8. What is a time-saving method of communication? 9. How can companies use the Web for recruitment purposes? 10. Why do large corporations place their annual reports on their websites? 11. What does online customer service include? Ex.2. Sum up what you remember about doing business on the Internet. 735 English of Economics Grammar Revision Possession 1. a) We use 's or s' to indicate possession with the following nouns: human nouns Tom's report; Tom and Mary's report • animal nouns the lion's share • time nouns • • tomorrow's meeting location nouns Ukraine's largest city organization nouns a group of people) the company's success b) We add 's to singular nouns Mary's brother We add 'only to plural nouns ending in —s my parents' shares If a plural noun doesn't end in —s, we use 's the children's books 2. We normally use of . . . with things the beginning of the report. Ex.1. Join two nouns using either 's or of 1) the newspaper/yesterday 2) the president/the company 3) the results/the negotiations 736 MODULE Vlll INFORMATION TECHNOLOGIES IN BUSINESS 4) the financial policy/the company 5) the office/the accountant 6) the financial statement/the beginning 7) the financial results/last year 8) the decision/the Board of Directors 9) the shares/the company 10) the new car/Lucy 11) the E-mail address/John 12) the walk/five minutes 13) the social policy/the government 14) the name/the user 15) the failure/the company 16) the firm/my aunt and uncle Ex.2. Translate into English using possessive forms of nouns: noBiÅOMJ1eHHA AiJ10Boro napTHepa; BH60PH HOBOro npeuueyrm K0MnaHii; Kanirran aK11i0HepiB•, eneKIV0HHa mpeca I-laLUOi KOMnaHÜi•, pimeHHfl PaÅH JIHpeKTopiB; a60HeHTCbKa nou1T0Ba CKPHHbKa; ycnix K0Mr1aHii; 3ap06iTHa npauiBHHKa; npH6Y11)K KOMnaHii•, 60prH niÅnpmervrcTBa•, 060B'*3KH KepiBHHUTBa; npaBa cn0)KHBaqa; uiHHi narjepH Malcnepa; ayAHTOPCbKHÄ 3BiT, KepiBHHKa K0MrjaHii. 737 Basic English of Economics A. UTYGINA Ex.3. Decide if each of the phrases is correct, and if it is not, correct it. 1. 2. 3. 4. 5. Have you bought today's newspaper? Tomorrow conference has been cancelled. My office is about ten minutes drive from my house. Ukraine imports have fallen lately. The personal manager's assistant looks through all the application forms. 6. 7. 8. 9. Those are two friends' of my boss. Is that E-mail address yours or your friends? This company is the country top suppliers of software. This radio station will be broadcasting our Managing Director speech at 2 p.m. 10. The employees' salaries will be increased twice. 11. A shareholders' meeting will be the last this fiscal year. 12. The manager reaction was unexpected. Ex.4. In a department store you often see signs like «Men's Shoes» or <<Children's Toys». Think of some other things that are just for men, women, children, etc. Ex.5. Look through a newspaper article and underline possessive forms of nouns. 738 Basic English of Economics Speech and Discussion Ex.l. Discuss with your groupmates why a business needs to manage information and how computers have revolutionized information management. Ex.2. Speak about the role of E-business in a contemporary world. 739 Basic English of Economics Ex.3. Discuss with your groupmates which of these things will change a lot in future, and how: communications • E-business online services Ex.4. Speak about advantages and disadvantages of Internet banking. Ex.5. Discuss with your groupmates the Pros and Cons of virtual pocket money. Ex.6. Familiarize yourself with the following idioms, consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. l. You have to take what he says with a grain of salt because he doesn 't always tell the truth. 2. Both toy companies are doing well; their sales are neck and neck. 3. She is up to her neck in financial problems. 4. He found his new job through the old boy network. 5. She is a very active manager and has a finger in every pie. Fx.7. Comment on the proverb: 740 MODULE Vlll INFORMATION TECHNOLOGIES IN BUSINESS «Everybody's business is nobody's business.» A. UTYGINA LESSON 2 Text: E-commerce Grammar: Numbers (fractions, decimals, percentages) Terms to remember: e-commerce/online trading storefront/shop front checkout intermediary suit (v) eneKTPOHHa TopriBJ1fl Mara3HH KOHTPOJ1b, Kaca nocepeÅHHK 3aAOBOJ1bH51TU, BJ1aL11TOBYBaTH, niltx0AHTH brick-and-mortar click-and -mortar TpaAuuiiiHa TopriBJIH premises delivery piracy 11PHMimeHHH maintenance YTPHMaHH51, AOPJIAA, noeÅHaHH51 eneKTPOHHOi TopriBJ1i 3 TPaÅHUiMHO}O nocTaBKa, AOCTaBKa nipaTcTB0, nopYLL1eHHfl aBTOPCbKOEO npaBa 'rexHiqHe 06cnyrOBYBaHH51 i r10TOHHHji peM0HT 741 Basic English of Economics BHMiPK)BaTH measure (v) 742 MODULE Vlll INFORMATION TECHNOLOGIES IN BUSINESS E-commerce The phrase «e-commerce» refers to the part of e-business related to buying and selling. Retailers set up an electronic storefront (BrE shop front) and shoppers place items they want to buy in an electronic cart (BrE trolley). When the shopper is ready, they go to the «checkout» where their payment is processed. E-commerce or «online trading» is an increasingly popular method of distribution which has proved to be very successful for some companies. It suits both the customers, who can choose how and when to shop, and companies, who do not have to hand over part of their profits to intermediaries. One of the advantages of this form of trading is that users can come to the website 24 hours a day. But there still exist some problems. For customers, key problems include: Fraud (the safety of online payment systems). Merchandise delivery and returns. The difficulty of speaking directly to a customer service representative. For companies, key problems include: The protection of intellectual property (piracy). Website costs and maintenance. Measuring the effectiveness of the website. E-commerce has even acted as a form of advertising and increased levels of business in traditional bricks-and-mortar shops. But to succeed, a company needs a combination of traditional retailing and e-commerce: clicks-and-mortar. In this case companies have some part of their business on the web, but also physical premises. 743 UTYGINA Basic English of Economics A. Exercises in Word Study Ex.l. Form verbs from the following nouns: retailer, shopper, payment, trading, success, user, advertising, combination, delivery, protection, maintenance, distributor. Ex.2. Give the English for: ene}crpoHHa TopriBJIH, TpaÅHL1iäHa TopriBJ151, noeÅHaHH* eneKTPOHHOi TopriBJ1i 3 •rpaAHuiäH0Y0, maxpaäcTB0, nopyureHH$1 aBTOPCbKOro npaBa, p03Åpi6HHii Topr0BeL1b, norcyneub, peKJ1aMa, npHMi1.ueHH51, AOCTaBKa T0Bapy, 3axucrr irrrenercryaJ1bH0i BJ1aCHOCTi, nocepeAHHK, npH6YTOK. Ex.3. Match words from list A with words from list B that have a similar meaning. e-commerce brick-and-mortar buyer set up shop front merchandise suit satisfy traditional retailing storefront online trading goods shopper establish Ex.4. Find suitable opposites to the following words and phrases. <<bricks-and-mortar» trade, shopper, retailer, successful. Ex.5. Make a proper selection. 744 UTYGINA clicks-and-mortar services via the the purpose of piracythe taking of etc; frauda operate on the Basic English of Economics the activity of buying goods and Internet; bricks-and-mortar deceit with gaining another's money or property; goods to a place of business, a home, traditional business that does not Internet; 745 MODULE Vlll INFORMATION TECHNOLOGIES IN BUSINESS delivery copying and selling the work of others without permission; online shopping used for describing a business that operates in traditional ways and by using the Internet. Ex.6. Write the appropriate word or phrase in the following spaces. Translate the sentences into Ukrainian. has become a major online service; it reduces company costs. represents 30 per cent of our total business. is a traditional business that does not operate on the Internet. 4. A business with no online presence is a . . . organization. 5. Most businesses are they have some part of their business on the web, but also physical premises. 6. . . . opens up vast possibilities for managers. 7. Many banks offer . . . services to their clients. 8. This company promises fast 9. The company offered property for sale in Arizona, but it was the property didn 't exist. 10. . is the business or activity of selling goods or services via the Internet. online retail, online trading, e-commerce, bricks-and-mortar (2), clicks-and-mortar, the Internet (2), delivery, a fraud Ex.7. Fill in the missing prepositions. Why waste your time surfing the Internet, when we can find your favourite piece . . . music .. you . . . seconds? We specialise . finding melodies to suit every taste hard rock country music. Just visit our website and . . . a matter . . . seconds you'll be downloading files containing your favourite songs. You can also browse our catalogue .. over a million titles and find . . . more your favourite stars accessing our huge database. 746 MODULE Vlll INFORMATION TECHNOLOGIES IN BUSINESS (of (3), for, in(3), from, to, through, out, by, about) (From D. Evans. Business English Verbs, Penguin Quick Guides) 747 UTYGINA Basic English of Economics A. Exercises in Comprehension Ex.l. Answer the following questions: 1. What is the phrase «e-commerce» referred to? 2. What is one of the advantages of the e-commerce? 3. What are the key problems of online trading for customers? 4. What are the key problems of online trading for a company? 5. What are bricks-and-mortar shops? 6. What does a company need to succeed in trade? 7. Do you shop on the Internet? What are the advantages and disadvantages? Ex.2. Sum up what you remember about: e-commerce bricks-and-mortar shops the key problems of online trading for customers and companies 748 UTYGINA Basic English of Economics Grammar Revision Numbers (fractions, decimals, percentages) 1. Most fractions are expressed using ordinal numbers a third (h), a fifth (X), a seventh (B), five eighths But there are some exceptions: a half (h), a quarter (1/4), three quarters (3/4), two and a half (2%), four and three quarters (4%) 2. A full point is used when writing decimals: 0.5 (zero point five), 1.5 (one point five): 233 (two point three three); 4.75 (four point seven five); 5.07 (five point oh seven) 3. Percentages 50 % (fifty percent); 0,25 % (a quarter of one percent); 2h % (two and a half percent); 6.25% (six point two five percent) 4. Numbers are singular Four thousand; three hundred, two million 5. When a noun following a number is used adjectively, it has no —s plural. It was a four- ear contract. 749 MODULE Vlll INFORMATION TECHNOLOGIES IN BUSINESS Ex.l. Write the numbers as words: X; 4.25; 0.25; 3.2; h; 0.75; 2%; 2.05; 13.62; 0.43; 0.125; 60.17. 6.85; 1%; Ex.2. Speak about interest rates. The National Bank of Ukraine has raised interest rates by: 0.5%; 0.3%; 0.25%; 0.15%; 0.4%; 0.2%; 0.32%; 0.44%; 0.17%; 0.21%; 0.08%. Ex.3. Remember the words which are used to give approximations when we are speaking about amount: approximately, about, roughly, around Speak about the approximate percentage of total leisure time devoted to various activities by 20-30 year olds in Ukraine (sports; visiting bars; televisions; computer games; reading; tourism; visiting discos; social activities; hobbies; walking; other activities). Ex.4. Finish each of these sentences so that it means the same as the sentence printed before it. 1. The interview lasted two hours. It was 2. 3. 4. 5. 6. 7. I had to pay a parking fine of five euros. It was My employment contract is for five years. This is Our new manager is 32 years old. He is He received a bank note for $ 100. It was His business trip will last ten days. It will be His advanced course in English lasted three months. It was 8. The flight from Kyiv to Vienna took approximately two hours. It was 750 MODULE Vlll INFORMATION TECHNOLOGIES IN 9. Her new house cost $ 50,000. It was 10. She offered the driver a note of ten pounds. It was 751 UTYGINA A. Basic English of Economics Speech and Discussion Ex.l. Speak about the role of e-commerce in a contemporary world. Ex.2. Discuss the main benefits of online shopping. Ex.3. Think about the following: «E-commerce is a wonderful thing . . . until you want to speak to anyone about anything». Ex.4. Familiarize yourself with the following idioms, consult your dictionary and translate the sentences into Ukrainian. Think of situations where you could use them. 1. First, he lost a lot of money in the stock market, and then when his house burned down, that really cooked his goose. 2. He makes unnecessary mistakes and leaves himself wide open to being fired. 3. That college admits only the cream of the crop of high school students. 4. He fired one employee after another and each time cried crocodile tears. 5. He wheels and deals in selling used cars. Ex.5. Comment on the proverb: «Man's character is his fate». (Chesterfield) 752 MODULE Vill INFORMATION TECHNOLOGIES IN BUSINESS TEST 8 (MODULE vrrr) Choose the word or word combination to match the definition. 1. Deceit with the purpose of gaining another's money or property. a) fraction b) fraud c) fortune 2. The taking of goods to a place of business, a home, etc. a) demand b) delight c) delivery 3. Copying and selling the work of others without permission. a) piracy b) pirate c) piper 4. A traditional business that does not operate on the Internet. a) bricks-and-mortar b) clicks-and-mortar c) e-business 5. A computer networking link restricted to a specific group of users. a) Internet b) Intranet c) www 6. A place on the Internet where information is available about a particular subject, organization, etc. a) website b) web cast c) web traffic 7. Property that cannot be moved, such as land, houses, etc. a) real delight b) real estate c) real life 8. Calculated or devised to save time by facilitating work. a) team-saving b) time-sharing c) timetable 9. A system for sending messages from one computer to another. c) b) 753 UTYGINA a) mailbox Basic English of Economics b) mail carrier c) e-mail 10.A business that supplies goods or services to a purchaser. a) shippersupplier producer 754 INFORMATION TECHNOLOGIES IN BUSINESS A. 11.One who purchases or inspects goods in shops. a) shoplifter b) shopper c) shopkeeper 12. A chance to do something or a situation in which it is easy for you to do something. a) opinion b) opportunity c) opponent 13. Buying and selling goods on the Internet. a) e-mail b) e-commerce c) trade 14. A cash desk a) check-up b) checkout c) checklist 15. This term refers to the way that companies behave towards their customers, for example how well they treat them. a) customer base b) customer service c) customer experience 16. To look for information on a computer, especially on the Internet. a) to wipe b) to attach c) to browse 17. To make a computer do something by pressing a button on the mouse. a) to edit b) to click c) to insert 18. A computer fanatic, often someone who illegally enters computer systems. a) hacker b) hackney c) hacksaw c) b) 755 LATYGINA Basic English of Economics 19. A business that operates in traditional ways and by using the Internet. a) bricks-and-mortar b) clicks-and-mortar c) online business 20. A piece of land and the buildings upon it, considered as a place of business. a) premises b) premise premium MODULE Vlll REVISION TEST Choose the alternative that best suits the context. 1 is the business of selling goods in large quantities and usually at low prices. a) retailing b) wholesaling c) franchising 2. ... are large shops which sell a wide variety of products. a) Department stores b) Greengrocery c) Grocery 3. When two or more people want to start a business together they can set up a a) concern b) corporation c) partnership 4. The line was shut down for two hours as a result of damaged machinery. a) delivery b) production c) control 5. Information on . .. prices is available to brokers throughout the world. a) share b) production c) trading 6. Hewlett Packard is known as one of the most reputable . . . in the electronic and computer industry. 756 INFORMATION TECHNOLOGIES IN BUSINESS a) customers b) buyers c) suppliers 7. During the bear market a lot of firms went a) ahead b) bankrupt c) melding 8. Monthly salaries of our staff go directly into their a) interests b) invoices c) accounts 9. Ifyou own some shares of a company, you receive . per share. a) dividends b) interest c) salary 10. He asked his parents if they would pay off his . a) debts liabilities rents c) b) 757 LATYGINA Basic English of Economics A. 11. We are planning to . . . $3 million on advertising. a) lose b) invest c) spend 12. . . act as agents in buying and selling shares. a) Wholesalers b) Brokers c) Investors 13. He . . . most of his savings in the Stock Exchange. a) gave b) fixed c) invested 14. To acquire . . . in the company which you work for may prove advantageous. a) a stake b) an investment c) part 15. If I open a saving account I will receive a) a share b) an interest c) a benefit 16 receive income, known as a dividend, from the companies in which they invested. a) Stockbrokers b) Shareholders c) Owners 17. In order to raise capital the company intends to issue shares a) on the consumer market b) on the production market c) on the stock market 18. Of course, our goods are not very cheap, but the prices are quite . . . for the average consumer. a) costly b) reasonable c) high 19. Our company specialized in producing . . . goods. c) b) 758 LATYGINA Basic English of Economics a) consumer b) consumerism c) consumption 20 can result if you have no more income to pay your debts. a) Transfer b) Bankruptcy c) Discount 21. Banks . . . very high rates of interest on credit loans. a) offer pay charge c) b) 759 A. UTYGINA Basic English of Economics MODULE Vlll IN 22. Some strategic industries, such as Atomic Energy and Defence, are too important to be left in . . . hands. a) public b) private c) government 23. Ukrainian business is . a lot of foreign capital. a) importing b) investing c) attracting 24. We'd like to know your views on the possibility of a venture with our company. a) capital b) joint c) business 25. . . . fix their own commissions for buying and selling shares. a) Stockbrokers b) Retailers c) Wholesalers 26. This alliance will help our companies survive in the fiercely market of today. a) contrasting b) contemporary c) competitive 27. The . . . of Harley-Davidson Motor Company are people with a high average income. a) suppliers b) target market c) budget 28. The successful candidate should have at least 3-year office management. a) qualifications b) experience c) efficiency 29. Our company is determined to so that we might reach our full potential. a) increase b) recess c) expand 760 INFORMATION TECHNOLOGIES BUSINESS 30. . . . is the term given to different activities involved in distributing goods from the manufacturer to the final customer. a) distribution b) marketing c) retailing 31. An advertisement on radio or television is called a a) movie sales program commercial 32 is used to increase sales by making the product or service known to a wider audience. a) advertising b) promotion c) research 33. If you pay . . . I'll give you a 5% discount. a) price b) cash c) bill 34. They've just launched an advertising a) promotion b) company c) campaign 35. An amount of money required to start or expand a business is a) rent b) capital c) loan 36. People who buy goods or services are a) users b) customers c) suppliers 37. People who work inside a company are its a) customers b) suppliers c) employees 38. Last year we increased our market a) stock b) stake c) share 39. She put all her money into government a) investment b) sharesc) bonds c) b) 761 A. UTYGINA Basic English of Economics 40. The firm attempted . . . its nearest competitor. a) to take after b) to take over c) to take off 41. I . . . for the position of a production manager. a) applied b) employed c) recruited 42. We suggest you the high quality product, which is not expensive a) to discount b) to buy c) to invent 43. Our . is to increase the market share within a few months. a) responsibility b) ambitions c) objective 762 INFORMATION TECHNOLOGIES BUSINESS MODULE Vill IN 44. situation is stabilizing at present. a) Economy b) Economic c) Economical 45. They are very . . . in their expenditures a) economics c) economical b) economic 46. Fixed assets are what a company . a) owes b) sells 47. Current liabilities are what a company a) invests b) owes c) buys c) owns 48. Wealth used to produce more wealth is called a) liabilities b) goods c) capital 49. Balance sheet is a statement of how much . . . has come in and how much has gone out. a) capital b) money c) shares 50. I'm a salesman and work in the . . . department. a) Advertising b) Accounting c) Export 51. New technologies make global easier. a) market b) communication c) travelling 52. Yon can buy the same software quite . at our local market. a) reasonable b) cheaply c) free 53. He bought stocks during the . . . market, when the share prices were the lowest, and sold them when they rose. a) bear b) bull c) boom c) b) 763 INFORMATION TECHNOLOGIES BUSINESS 54. A movement to a more important job, with more responsibility and money is . a) recruitment b) career c) promotion 55. To do business, to buy and sell is to . a) do research trade perform c) b) 764 A. Basic English of Economics UTYGINA 56. To make the necessary arrangements for starting a business means to a) maintain a business b) reorganize c) set up a business 57. A great number of companies in Russia were . . . by the 1998 financial crash. a) affected b) infected c) effected 58. Due to our new supply system more products are to consumers and supply costs are lower. a) reduced b) limited c) available 59. Our company has 220 . at present. a) employers b) employees c) workforce 60. Big companies cannot rely exclusively on their markets. They have to become more international in their outlook if they want to survive. a) consumer b) competitive c) domestic 765 PART 11 EFFECTIVE WRITTEN COMMUNICATION 1. Business Letters Business letters are an essential part of making and confirming transactions in the commercial world. They are important in creating a good impression, and therefore what is written is as vital as how it is presented. In terms of quantity the largest part of business correspondence consists of routine letters — enquiries, replies to enquiries, orders, etc. In these letters the writer needs little art; the basic requirements are to be clear and accurate. The following are examples of different types of business letters. Consider these letters and use them as samples for your business correspondence: a) a letter of application; b) a letter of enquiry; c) a letter of reply; d) an offer letter; e) a letter of order; f) a letter of complaint; g) a letter of apology; h) a letter of thanks. 766 A. Basic English of Economics UTYGINA a) A letter of application Dear Sir/Madam I am writing in response to your advertisement for a Personal Assistant to the Managing Director. 767 Basic English of Economics Dear Sirs, We are the manufacturers of Broadway delivery vehicles. Our company is a subsidiary of Broadway International Inc. of Portland, Oregon. We are seeking an alternative supplier of lightweight batteries to power our vehicles. We would need to have samples of the batteries to test in our laboratories before placing an order. If our laboratory tests are satisfactory, and you can provide us with a good price and services, we will be happy to place more substantial orders on a regular basis. 768 John North Buying Manager I am enclosing a copy of my curriculum vitae, which gives details of my qualifications and experience. As you will see I have had 4 years experience in a business environment. Although I did not have to travel in my job, I would be very willing to do so. I will be available for an interview at any time, and look forward to hearing from you. Yours faithfully Hilary Beachem b) A letter of enquiry CONTENTS c) A letter of reply 769 Basic English of Economics Gentlemen: Thank you for your enquiry of August 6. It will probably take a few days until our engineer has prepared the necessary samples. As soon as everything is available, we will send you samples of batteries and our quotation. Yours very truly Bill Black d) An offer letter Dear Sirs, We think you will be interested in the new brands of coffee and cocoa we have just introduced to the frade. Samples of both haxvé been dispatched to you by separate mail. We hope that the high quality of our products will meet your customers' requirements and you will place at least a trial order with us. You will see that the prices quoted are low, and as they are likely to go up very soon we would advise you to place an order as early as possible. Yours truly Brown & Co. 770 A. UTYGINA e) A letter of order Gentlemen: Please rush to us to reach our stockroom next Thursday 24 twooccupant portable tents for camping out. This is for a special sales week which is going well. Our stock on these items is running out. 771 Basic English of Economics Our regular purchase order is being made out in the routine way and should reach you in a day or two; but please do not hold up delivery of this special order. A delay of even a few hours may mean lost sales. Sincerely yours, Kenneth Miller f) A letter of complaint Dear Sir/Madam: Last week I bought a pocket calculator at your branch in Leeds. It seemed to work in the shop. When I got home, I found that it was faulty. I will be grateful if you exchange the faulty calculator for a perfect one. Please find enclosed the calculator, together with the receipt, showing the price and the date of purchase, and the manufacturer's guarantee. I look forward to hearing from you. Yours faithfully Steve Brown 772 CONTENTS g) A letter of apology Dear Sir, We regret very much that you should have cause to complain o the goods supplied by us. We are at a loss to understand this, an shall be very much obliged if you return them to us. When we have examined them, we will write you again. Yours faithfully T. Watts Manager h) A letter of thanks Dear Mr.Magues: Thank you for your order for Clover Danish Blue Cheese. It is being shipped out to you today. We enclose a catalogue of our other products. Please note that with orders of $10.00 or more, customers may receive, free, their choice of a jar of Current preserves. Yours sincerely Einar Toksvig 2. Social Correspondence in Business It would be unnatural to expect that human beings, who, spend most of their waking hours in business, would not form personal relationships of varying degrees of closeness in the course of their business. Consequently, there are many occasions 773 A. UTYGINA Basic English of Economics for letters that should not be «strictly business», although they are essential to the conduct of business. Examples are given below: a) A letter of congratulations Dear Mr. Leonard: What a pleasure it was to see the item in «The Times» business section this morning about your promotion to the position of Sales Manager. Actually I think I ought to write to the President of your corporation, Mr. Tate, to congratulate him. He had the good sense to recognize a good man. From what I know about people in the field he couldn't have picked a better man. Congratulations on a well-deserved promotion! b) A letter of invitation 774 CONTENTS Dear Professor Bondarenko: On behalf of the British Finance Society it is an honour for us to welcome you and to be your host in London during the International Finance Conference, November 13-15. It is a pleasure for us not only to invite you to a conference of the highest scientific standard but also to present London and, if you wish, other exciting places in Great Britain. I am glad to inform you that your abstract was accepted by our Committee for poster presentation. We attach with the letter of invitation Reservation and Registration Form. The deadline for its submission: May 5, 2013. If you have any questions or need additional information please contact us without hesitation. Yours sincerely John Trend c) Accepting invitations Basic English of Economics Dear Mr. Canby: d) Declining invitations 776 Dear Mr. Hopkins: CONTENTS I will be out of town during the week of March 10 not be able, therefore, to be present at the reception the opening of your new store. Since I will not be offer my congratulations to you in person, permit me to here. And I wish to add my sincere best wishes for the of the new store and the continued growth ofyour business. yours, Asch Unfortunately and will celebrating there to do so success Sincerely Anthony 447 Basic English of Economics A. UTYGINA e) A letter of sympathy Dear Walter: When your secretary called this morning to tell me that you wouldn't be able to keep our appointment because ofyour sudden illness, I was deeply disturbed. She told me that you were to spend some days in the hospital. I hope you will be back in your office very soon and in condition to renew our postponed engagement. Cordially yours, Arthur Reinhardt Now it's your turn Write your own letters. You can make the information up — it doesn't have to be true. Use the sample letters above to help you. 778 CONTENTS cnncox PEKOMEHAOBAHOi J11TEPATYPh 1. Barbara Campbell «Guide to English for Business», Chambers, 2001. 2. Bill Mascull Words in Business», Harper Collins Publishers, 1996. 3. Bill Mascull. Cambridge University press, 2003. 4. Bob Obee «Cambridge First Certificate. Grammar and Usage», Cambridge University Press, 2005. J. Chis Lewis «Using the Internet», Dorling Kindersley, 1997. 6. Collins Dictionary of Economics, Harper Collins Publishers, 1988. 7. David Evans «Business English Verbs», Penguin English, 2000. • 8. Edwin Kovanda Reader Nakladatelstvi Fraus, Plzen 1998. 9. Ian Chambers, adviser Diane Wallace «Collins GEM Business Studies Basic Facts», Harper Collins Publishers, 2003. 10. M. I. Balla English-Ukrainian Dictionary. — K. : OcBiTa, 1996. 11. Michael Lane «How to Set up and Run a Company», Easyway Guides, 1998. 12. Miroslav Kaftan. Modem Business English in Enterprise. Leda Praha, 2001. 13. Nick Brieger, Simon Sweeney, «The Language of Business English», Prentice Hall, 2004. 14. Oxford Dictionary of Business English, Oxford University Press, 1996. 15. Pride/Hughes/Kapoor <<Business», Second Edition, Houghton Mifflin Company, 1988. 779 CONTENTS 16. Pride/Hughes/Kapoor, K. Hegar «Business. Study Guide», Third Edition, Houghton Mifflin Company, 2001. 17. Ricky W. Griffin, Ronald J. Ebert «Business», Third Edition, Fall, 1992. 18. Sandra Costenett «The Language of Accounting in English», Prentice Hall, 1997. 19. The Cassel] Concise Dictionary, 1997. 780 A. UTYGINA CONTENTS 20. The New International Webster's Comprehensive Dictionary of the English Language. Encyclopedic edition, Trident Press International, 1996. 21. The Newbury House Dictionary of American English, 1996. 22. The Penguin Dictionary ofEnglish Idioms, Penguin Books, 1994. 23. Warrent R. Plunkett, Raymond F. Attner «lntroduction to Management», Fifth Edition, 2004. 24. €BTYU1eHKO Jl.l. AHI*J10-YKpaiHcbK0-pociiicbKHM TervrarrnLIHMM CJIOBHHK AiJ10B0i neKCHKH / Jl.l. €BTY111eHKO, I.M. rHaT}0K, H.O. MHXHeHKO Ta iH. — K. : IHKOC, 2006. 25. AL11HHa C.JI. AHI"JIHiiCKHii 3KOHOMHCTOB / C.JI. AlliHHa, E.A. 3aKOMOPHaH. — M. : MapT, 2003. 26. Mark Skipper «Advanced Grammar and Vocabulary», Express Publishing, 2008. 27. Paul Emmerson «Business English Handbook», Macmillan, 2012. 28. Will Capel, Jamie Flockhart, Sue Robbins «Business Vocabulary in Practice», Collins, 2012. 29. Neil Wood 'Business and Commerce», Oxford, 2010. 30. Bill Mascull «Business Vocabulary in USE», Cambridge University Press, 2003. 31. Phrasal Verbs for Business», Oxford University Press, 2008. CONTENTS TO THE STUDENT 781 Basic English of Economics DIAGNOSTIC PRE-TEST PARTI BUSINESS TOPICS MODULE 1 BUSINESS AND BUSINESSES Lesson 1 Text: Business Organization Grammar: Present Simple and Present Continuous Lesson 2 Text: Business Organization and the Economy Grammar: Past Simple and Past Continuous 17 22 30 Lesson 3 Text: Ownership 34 Grammar: Present Perfect Simple Lesson 4 Text: Business Relationship 41 46 Grammar: Present Perfect Continuous 53 Lesson 5 Text: Companies' Restructuring Grammar: Past Perfect Simple66 Lesson 6 Text: Organizational Structure70 Grammar: Past Perfect Continuous78 Test 1 (Module I)83 782 57 Basic English of Economics A. UTYG/NA MODULE 11 PEOPLE AND ORGANIZATION Lesson 1 Text: Employment Grammar: Tense Revision. Present time 85 Lesson 2 Text: Human Resources: the People Grammar: Tense Revision. Past time 98 104 Lesson 3 Text: Recruitment Procedure . 108 Grammar: Future time (uses of shall/ will/going to/ present continuous/present simple to talk about the future) .... 118 Lesson 4 Text: Interviewing 122 Grammar: Future time (Future Continuous, Future Perfect) 129 Lesson 5 Text: Executive Pay.......... ...134 Grammar: When and if sentences ...144 Lesson 6 Text: Leaving a Job 148 Grammar: Tense Revision. Progress Test I ...... Test 2 (Module 11) .. 155 ..158 MODULE 111 PRODUCTS, MARKETS AND MARKETING Lesson 1 783 Basic English of Economics Text: Customers, Consumers and Clients Grammar: The Passive Voice (Simple) Lesson 2 Text: Markets and Market Orientation Grammar: The Passive Voice (Continuous) 784 161 167 171 180 CONTENTS Lesson 3 Text: Products, Goods and Services183 Grammar: The Passive Voice (Perfect). Grammar Progress Test Il (Passive Voice) 192 Lesson 4 Text: Marketing Grammar: The Sequence of Tenses 196 203 Lesson 5 Text: Advertising Grammar: Reported Speech (Statements) 207 213 Test 3 (Module 111) 218 MODULE IV BUSINESS AND FINANCE Lesson 1 Text: Costs. Assets and Liabilities Grammar: Reported Questions, Orders, Requests 220 228 Lesson 2 Text: Raising Finance Grammar: First Conditional 232 239 Lesson 3 Text: Financial Centres Grammar: Second Conditional 242 247 Lesson 4 Text: Investments Grammar: Third Conditional. Grammar Progress Test Ill (Conditionals) Lesson 5 785 252 258 Basic English of Economics Text: Financial Statements266 Grammar: Expressing Wishes and Regrets 273 Lesson 6 Text: Bankruptcy Grammar: Modal Verbs (Ability. Permission) Test 4 (Module IV) 276 283 286 A. UTYGINA MODULE V ACCOUNTING Lesson 1 Text: The Field of Accounting Grammar: Modal Verbs (Obligation and Necessity) 288 295 Lesson 2 Text: Budgeting 299 Grammar: Modal Verbs (Certainty, Possibility, Probability). ...305 Lesson 3 Text: Auditing 308 Grammar: Modal Verbs with the Perfect Infinitive Test 5 (Module V) 315 318 MODULE VI MONEY AND BANKING Lesson 1 Text: Money and its Functions. Grammar: Grammar Progress Test IV (Modal Verbs). 330 Lesson 2 Text: Types of Banks 786 320 334 CONTENTS Grammar: Comparison of Adjectives.... 343 Lesson 3 Text: Banking Services .347 Grammar: Comparison of Adverbs. Other types of comparison .353 Test 6 (Module VI)358 MODULE Vll GLOBAL BUSINESS Lesson 1 Text: International Trade Grammar: The Infinitive Lesson 2 Text: Export and Import372 Grammar: The Gerund378 787 360 368 CONTENTS Lesson 3 Text: World Trade Organization Grammar: Infinitive or Gerund?.. Lesson 4 Text: Globalization and Economic Policy... . Grammar: The Participle Lesson 5 Text: Business Across Cultures Grammar: Countable and Uncountable Nouns. Either .. . or; both and; neither ... nor... 382 .390 394 ..401 .405 ...411 ..416 Test 7 (Module Vll). MODULE Vill INFORMATION TECHNOLOGIES IN BUSINESS Lesson 1 ...418 Text: Businesses and the Internet .... . Grammar: Possession .......................... Lesson 2 . ... ....422 .. ..426 Text: E-commerce .. 430 Grammar: Numbers (fractions, decimals, percentages) .433 Test 8 (Module Vlll) REVISION TEST CONTENTS PART 11 EFFECTIVE WRITTEN COMMUNICATION 449 CTIVfCOK PEKOMEHAOBAHOY JUTEPATYPH 455 Навчадьне видання ЛАТИГША Алла БАЗОВИЙ КУРС АНГЛЙСЬКО1 МОВИ З ЕКОНОМЖИ BASIC ENGLISH OF ECONOMICS Для навчальних Видання друге, перероблене та Доповнене Редактор В.Д. Римаренко Комп'ютерне верстання Г.В. Дизайн обкладинки Т.В. MaTBieHk0 Формат 60х84/16. Ум. друк. арк. 23,56. Тираж 2000 пр. Зам. 810. Видавець i виготовлювач Китвський Юото, 19, м. ЮТ- 156, Укратна, 02156 вул. ЦПНМВ КНТЕУ. зам. 1014-500-14. дод. тираж ЦПНМВ КНТЕУ. зам. 660-1500-15. дод. тираж ЦПНМВ КНТЕУ. зам. 888-2000-16. доц. тираж суб'екта видавничо\ справи ДК N2 4620 03.10.2013