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1 II

2009

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I II

- 09 2009 .

I II . , , .

CONTENTS
UNIT 4. MARKETS...............................................................................................................34 Appendix 1................................................................................................................................81 Appendix 2...............................................................................................................................84 Appendix 3...............................................................................................................................87

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UNIT 1. ADVERTISING Vocabulary List 1 1. a research a market research ,

a marketing research to do researches = to carry out research work 2. information = data to inform = to advise 3. to obtain = to get 4. a consultant a consultant company 5. a fee 6. to be interested in 7. demand for the goods to be in great demand (small, little) on demand demand & supply to meet the demand need, requirements 8. market potential 9. a competition to run a competition competitive competitiveness a competitor 10. price 11. to compare 12. as compared with by/in comparison with 13. local 14. preference to prefer 15. a custom in a customary manner : 1) customs (house) customs duties formalities 2) a customer 16. a habit 17. an account to take into account to do smth. for smb.s account

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18. 19. 20. 21. 22.

23.

24.

25.

a current account an account with a bank settlement account an accountant the like to be like general in general to cover selection to select a sale cash sale public sale sale by sample to be for sale to be on sale promotion of sales sales department a service to do/render a service a service station service & maintenance to run to run a business a factory running = operation to mean

: means 26. to avoid 27. overproduction 28. 29. 30. 31. 32. .: to overestimate advanced to advance within within the framework as well (as) = also, too to enable consumption

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a consumer consumer goods 33. a purpose/aim/goal/target on purpose 34. use using a user benefit .: profit for the benefit to the benefit way to be on the way in the best possible way in such a way anyway needs = requirements, demands advertising an advertisement = ads to deal in to deal with mass media a poster a matter on the matter as a matter of fact the matter is that printed matter to participate in participation to hold to hold the meeting conference/negotiations choice to have a wide choice of to choose to depend on dependence case

35.

36.

37. 38. 39. 40. 41. 42.

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43. 44. 45. 46. 47.

in this case 48. to distribute 49. a distributor 50. i.e. = id est (.) = namely 51. consequence consequent consequently 52. a line

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Text 1. Marketing Methods and Advertising Before selling the goods, you must do a lot of market research first. The information needed can be obtained from embassies, consulates and trade representations, from the Russian Chamber of Commerce and Industry and from the Institute for Scientific Market Research, from trade associations and trade journals or from specialized consultant companies (who will do a professional market research job for you for a fee). The information you are interested in if there is any demand for your goods, what the market potential is, what sort of competition you will meet, i.e. how the price of your goods compared with other competitive products including those produced locally, local conditions and preference, local trading customs and habits, what seasonal factors should be taken into account and the like. But in general marketing covers not only market research, but also planning the selection (assortment) of goods, and consequently the production itself, price policy, advertising and promotion of sales, controlling the sales and post-sales servicing. So marketing is a system of running all the business activities of a company in respect of coordinating supply and demand for the goods produced. Originally marketing was meant to help avoid overproduction in advanced capitalist countries. Marketing may within the framework of socialist economy as well enable to coordinate production and goods circulation (consumption of goods) for the purpose of using all the resources for the benefit of people and for covering in the best possible way all their needs (requirements).

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Advertising is an important means of promoting the goods that are being produced already as well as new lines in business. Each country has specialized firms dealing with advertising. Different kinds of mass media TV, radio, newspapers, cinema, journals, magazines, and posters are used for advertising goods. Special leaflets, booklets and other printed matter about the goods may be published for the same purpose. Participation in fairs and exhibitions helps promote goods as well. Also, special advertising depends on the kind of goods and on the local conditions and peoples habits: sometimes TV and radio ads are the best, in other cases it may be trade journals or leaflets distributed among potential buyers. EXERCISES Exercise 1. : sales, the customs, consumer goods, as compared with, to require, distribution, to run, lines, a habit, customers, competitors, to render, general, to the benefit, to run a competition, a custom 1. What . . . are in greater demand in your country? 2. You will see that our prices have been reduced . . . those of our competitors. 3. The contract has been signed . . . of both parties. 4. The success of foreign deals often depends on our studying the . . . and habits of our future . . . . 5. All of these samples are duty free when taken through the . . . . 6. This consultant company . . . a wide choice of services. 7. This company is . . . for the best advertisement of the goods. 8. . . . is second nature. 9. The . . . of the advertisement material was done for the sellers account. 10. . . . conditions are to be strictly observed both by the Sellers and by the Buyers. 11. The goods can be delivered in the assortment you . . . . 12. . . . are up (down) this month. 13. What kind of business is your firm . . . ? 14. The firm has specialized . . . in chemicals, oils and fats. Exercise 2. , :

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) : to compete, to consume, to research, to inform, to consult, to account, to sell, to buy, to produce, to deal, to publish, to distribute ) : to compete, to consume, to research, to consult, to produce, to publish, to distribute, to depend, to circulate, to advance, to select, to compare Exercise 3. : , , , , , , , , , , , , , , , -, , , , , , , , , , , , , , , , Exercise 4. : A. Present/Past Indefinite or Present/Past Continuous: 1. 2. 3. 4. 5. 6. What language they (speak) in Holland? What language he (speak) now? My friend always (tell) me the truth, but I see that she (tell) a lie now. He (look) out of the window when the accident (happen). I (finish) my meal, (pay) the bill and (leave) the restaurant. Two or three times a year she (go) to stay with her married daughter. As I (walk) in the park, I met a few fiends. They (tell) me that they (go) on a picnic and (ask) me to join them. 7. While the students (solve) the last problem in the test, the bell (ring) and they had to hand in their papers. 8. I (not know) where Mary (live) now. I (meet) her last week and she (promise) to call me, but she (not do) it. 9. Lets hurry: it (get) very dark. 10. Normally he (lecture) in economics, but at present he (lecture) on the new techniques of management. 11. As she (cross) the road she (slip) and (fall). 12. We (look forward) to hearing from you soon. B. Past Indefinite or Past Perfect:

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1. 2. 3. 4. 5. 6. 7.

They (not explain) why they (be) so late. He (look) at the girl and (understand) he (see) her somewhere before. She (give) him the book the teacher (recommend). They (finish) the work by 5 oclock. I (not recognize) him. He (change) a lot. You (lock) the door before you (leave) the office? By the beginning of the negotiations we (manage) to discuss the main points of the project.

C. Past Indefinite or Present Perfect: 1. I (not recognize) him. He (change) a lot. 2. Where you (be) all this morning? Its nearly midday now. 3. I (go) to Germany five years ago. Since then I (not speak) German and (forget) nearly all I (learn) there. 4. When they (marry)? 5. She (go) to Australia but now she (come) back in Britain again. 6. Who (write) the play Hamlet? 7. Einstein (be) the physicist who (develop) the theory of relativity. 8. The Chinese (invent) printing. 9. I can reach my work easily now, as I (buy) a new car. 10. I (lose) my keys and cannot remember where I (see) them last. 11. I (not see) you for ages. 12. Jane (speak) Italian well because she (speak) Italian all her life.

Vocabulary List 2 1. approach 2. inspire 3. to take up 4. a brand 5. a megaagency 6. to attract attractive 1. 2. 1. 2. 1. 2. 3. , 1. , 2.

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7. a corollary 8. cost 9. cheap 10. instead of 11. separate 12. to create creative creation 13. sense common sense 14. to impose 15. like 16. such as 17. the same 18. to agree an agreement 19. a clich 20. similar 21. to tailor 22. to require a requirement 23. a network 24. an advent 25. to suppose supposedly 26. editorial to edit an editor an edition 27. to book 28. to set up 29. supervisory a supervisor 30. unlike 31. to perform performance 32. a performer

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33. statutory 34. a limited company 35. a board 36. a levy 37. tremendous = great 38. to ensure 39. an independence 40. a lobby 41. majority major 42. entire entirely 43. to connect a connection unconnected 44. an interest 45. to monitor 46. to draw up 47. to revise 48. intra (.) 49. a complaint 50. to enforce enforcement 51. up to up to now 52. to follow to follow the example 53. to consider to be considered 54. to mislead 55. ultimate 56. legal 57. back up 58. to remain 59. to draw attention 60. a transgression

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61. a deterrent 62. aware awareness 63. to donate 64. a poster

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Text 2. Global Advertising An approach to international advertising and marketing, inspired by Theodore Levitt and taken up enthusiastically by Saatchis. The idea is world brands marketed by multinationals, serviced by megaagencies, using the same advertising material and commercials everywhere. This has the attractive corollary that production costs would be very much cheaper: only one worldwide campaign instead of separate creative work and TV commercials for each country. There are in the sense that they sell all over the world, many world brands already, such as Coca Cola, Levis Jeans, Marlboro. There are also many global marketing companies, such as Unilever, Kodak, De Beers, Philips, Sony. But even companies like these do not impose the same advertising on every country. They would agree with the ex-Chairman of ICI: There is a clich that the world is a single marketplace but the reality is that this is not true. Similar products are required but they have to be tailored and delivered to meet the national need each of those markets requires a different response. The worldwide communication networks and the promised advent of DBS are also supposedly forces for globalization. DBS is still struggling on the ground and the media empires (like Murdochs) do not run the same editorial or programs worldwide. This suggests that even if space/time can be booked globally, it has to be filled locally. ASA. Advertising Standards Authority. Set up at the 1962 AA Conference to take up the vital supervisory role in the industrys new system of selfregulation for non-broadcast advertising. Unlike the IBA, which performs a similar role for broadcast advertising, the ASA is not a statutory body. It is a limited company, financed through the Advertising Standards Board of Finance Levy of Advertising. Tremendous efforts are made to ensure the independence of the ASA and that it could never become, or be mistaken for, a pro-advertising lobby. The Chairman and the majority of its 12 council members must, for example, be entirely unconnected with any advertising interest.

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The ASAs role is to monitor the work of the CAP Committee in drawing up and revising the British Code of Advertising Practice and British Code of Sales Promotion Practice, and to deal with intra-industry complaints. One independent ASA council member sits on each of the CAP Committees special sub-committees. ASA enforces BCAP. Up to now the UK has not found it necessary to follow the example of such countries as Canada or Sweden and set up, and pay for a statutory framework for print advertising, and our system is considered to have worked well. When the EC Misleading Advertising Directive came into force in 1988 there was an ultimate legal back up. But the terms of BCAP and its day-to-day administration remained the same. Enforcement to date has depended not only on ASAs attention being drawn to transgressions of the Code, but also an active monitoring programme. Since 1975 at the investigation of the OFT who concluded that its self-regulation were to be as effective a deterrent as legislation the Code needed to be more widely known and public awareness increased, the ASA has been energetically publicizing BCAP. Newspapers, magazines and poster companies for the advertising campaign donate free space. EXERCISES Exercise 1. : to ensure, to set up, connection, to take into account, a way, to draw up, to follow on, cash, a network, requirements, to draw attention 1. The new approach to this problem discovered the new . . . of its solution. 2. Has your lawyer . . . the contract yet? 3. The advertising campaign has . . . our . . . to the publications considered to have been not too attractive before. 4. These documents . . . to you the authority you need. 5. You may pay . . . or by cheque; it comes to the same thing. 6. Joint enterprises are . . . to manufacture products for sale in these countries and in third countries. 7. Big companies in Great Britain have their own . . . of distributive organizations to sell their goods at home and abroad. 8. Weve had long . . . with the firm since our first deal in 1980. 9. If you dont keep your account straight, serious debt could . . . . 10. The performance of the machine meets the . . . of our customers. 11. The top management of the company must . . . all the possible consequences connected with taking a risk in running their business.

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Exercise 2. . : to approach, to create, to agree, to edit, to perform, to connect, to enforce, to be aware . : separate, similar, entire, ultimate, legal, consequent, cheap Exercise 3. : , , , , , , , , , , , , , , , , , , Exercise 4. A. both, either, neither : 1. 2. 3. 4. 5. 6. 7. The supermarkets just near your house are very good. I like them . . . . . . . of the hotels we stayed at were too expensive. We can visit . . . of those museums today. I dont mind. Can . . . of you speak Spanish? . . . of us were very tired. . . . team played well. I liked . . . flats. I couldnt decide which one to choose for living.

B. bothand, eitheror, neithernor : 1. 2. 3. 4. 5. 6. The film was boring long. That mans name is Richard Robert. He is Ret. We can leave today tomorrow. It doesnt matter for me. He has got time wish to join us. he apologizes Ill never speak to him again. you me must take part in this talks. They are very important for the business.

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7. He said he would contact me but he wrote phoned. 8. Im not sure where he is from. Hes Spanish Italian. 9. The cottage was luxurious comfortable.

UNIT 2. MONEY Vocabulary List 1 1. any at any rate = in any case 1. - 2.

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2. to perform performance

a performer 3. to employ an employer an employee unemployment 4. to negotiate to hold negotiations negotiation 5. a rate at any rate = in any case 6. a profit = interest 7. a surplus 8. to accumulate accumulation an accumulator 9. as a result 10. expense 11. wages = salary 12. to share a share shares a shareholder 13. in order 14. an accommodation 15. machinery 16. success successful = of great success 17. to bear the risk 18. to justify justified 19. to invest investment 20. to earn earnings

1. , , 2. 3. 1. 2. , , ; , 1. , , 2. , , , , , , () 1. , 2. , , 1. 2. 3. , , ,

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21. in return for something 22. to save savings 23. certain 24. a term 25. to define 26. assets 27. to possess possession 28. to exchange an exchange 29. to measure measurable measurement 30. a value valuable surplus value 31. to undertake 32. to fix 33. to care for/of 34. therefore 35. sense 36. to be aware of 37. a reward 38. to concern to be concerned with 39. essential essentially 40. to pay a payment 41. to judge a judgement 42. distinctions 43. available

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Text 1. Money and Labour

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Labour is any work performed for an employer at a negotiated rate while profit is the surplus, which accumulates as a result of productive work. The employer obtains this surplus after he pays the necessary expense of his business and the wages of his employees. He may be required to share the surplus with others who have provided the capital with which he started his business. Most businesses need capital in order to start productive work, and the capital pays for the accommodation, machinery and other items, which the business needs. There is always an element of risk in providing capital and starting a business. The business may not be successful. The employees of the business do not bear this risk, but the employers do bear it. If the business is successful, the risk has been justified and the invested capital earns part of the profits as a return on the investment. The capital that people provide to help new businesses is an accumulation of previous surpluses on previous business activities. In this way the past is used to finance the future. Such capital is accumulated by a deliberate policy of saving surpluses. This policy may be personal and individual, or it may be public and collective. In any case, a certain part of the profits is returned back into the system in order to create capital. In general terms, capital can be defined as: 1) a factor of production (for example, machinery or cash); 2) the assets possessed by a person, a company or a nation. Land, houses and shares in a business are capital. In terms of the state, all railways, docks, roads, airports are part of the nations capital. Money is not only a means of exchange but is also a means of measuring the value of mans labour. In economic theory, labour is any work undertaken in return for a fixed payment. The work undertaken by a mother in caring for her children may be hard work, but it receives no fixed payment. It is not therefore labour in the strict economic sense. As a scientist, the economist is interested in measuring the service, which people render to each other. Although he is aware of the services, which people provide for no financial reward, he is not concerned with these services. He is interested essentially in services, which are measurable in terms of money payments of a fixed and of regular nature. In economics, money is the standard by which the value of things is judged. This standard is not a religious or subjective standard, but an objective and scientific one. Human labour produces both goods and services. The activities of a farm worker and a nurse are very different, but both are measurable in terms of payment received. Labour in the sense is not concerned with distinctions of social class, but simply with the payment of wages in return for work. When we

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talk about the national labour force, however, we are thinking of all those people who are available for work within the nation, i.e. the working population. EXERCISES Exercise 1. : to concern, to care for, of great success, to hold negotiations, in order to, rate of exchange, terms, unemployed, to render services, to bear the risks, to justify, at any rate, machinery 1. Our companies shall . . . on this matter next week. 2. Our car agency . . . any kind of . . . in repairing. 3. The first night performance of this play was . . . . 4. They will call us . . . find out all the details of the situation. 5. He has been . . . for several months already. 6. The children are well . . . . 7. The other party shall . . . all . . . concerning transportation. 8. Under certain conditions the . . . can rise. 9. I cant help you . . . as I have no certain information on the question. 10. Are you . . . with solving that question soon? 11. All the risks were . . . because as a result the deal turned out to be profitable. 12. All the points concerning accommodation and . . . expenses, workers salary and terms of running the production into operation were defined at the shareholders meeting. Exercise 2. . : to perform, to employ, to negotiate, to accumulate, to share, to accommodate, to invest, to return, to save, to measure, to possess, to exchange B. : to measure, success, profit, value, to care Exercise 3. : , , , , ( , ), , -,

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, , , , , , , -, , , , Exercise 4. (/could, may/might, should, need, must): 1. . . . I come in? 2. . . . you help me? 3. He asked if he . . . take his sister to the party. 4. The teacher said that everybody . . . take part in the picnic. 5. . . . I take your dictionary? 6. . . . you tell me the nearest way to the city museum? 7. . . . I go to the country tomorrow? - No, you . . . not. 8. His health is not too strong. He . . . stop smoking. 9. She asked me if she . . . use my telephone. 10. We . . . hurry if we dont want to be late. 11. Im afraid you will miss the train. You . . . take a taxi. 12. Theres something wrong with your TV-set. You . . . call a repairman. Oh, we . . . not do it! My brother . . . fix it himself. 13. You . . . not stay here if you dont want. 14. Everything is all right. You see that you . . . not worry. 15. You . . . not put so much pepper in the meal. No one will be able to eat it. 16. Its raining hard. You . . . put your raincoat on. Exercise 5. (to be able to, to have to, to be to, to be allowed to) : 1. We shall not (can) arrive on date, as planned. 2. You really (must) work harder if you want to pass that examination. 3. You (not, must) pay to get in the library. 4. Smoking (not, may) here. 5. I (must) wait her at the station last night. 6. Will you (can) translate this article by Monday? 7. You (not, need) change the whole text as the beginning is all right. 8. He was out when we came, so we (need) wait him for over an hour. 9. The train (must) arrive in a few minutes. 10. I (must) solve the problem myself. 11. I think I (can) make all the arrangements in time.

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12. As it (not, may) take extra weight, we (must) pay extra charge. 13. She (must) telephone us the moment she was out of danger. 14. Well (must) send an urgent message as we will (not, can) prepare the papers so soon. 15. We (must) get there before the others. Vocabulary List 2 1. retail 2. to strike a strike striking 3. to apply to application 4. to issue 5. a set 6. extreme extremely 7. few a few 8. to fill in 9. convenient convenience 10. to rely on 11. to pay off 12. a balance 13. outstanding 14. interest rate 15. a holder 16. fraud 17. a stage 18. sufficient 19. to point out 20. an origin 1., 2. 1. 2. , , 1. 2. 1. , 2. 1. 2. , , 1. 2. , , , 1. , 2. , , ,, 1. 2. ,

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in origin = originally 21. claims on 22. confidence 23. to break down 24. occasionally 25. to replace replacement 26. sophisticated 27. to debit 28. to accept acceptable 29. a payer a paye 30. to honour 31. instantly 32. to withdraw (cash)

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Text 2. Development of money Retail banks were at the forefront of one of the most striking developments in personal finance over the last twenty years the credit card. Barclays was the first with the Barclay-card (Visa); the other three banks then responded with Access (MasterCard). However, all four banks have now applied to issue both sets of cards. Using a credit card is an extremely expensive form of borrowing with an interest rate of around 25 per cent annum. But a card is very easy to obtain there are very few forms to fill in. It is also convenient to use for the shopper. Credit card companies rely for profit on the fact that consumers do not pay off the balance at the end of the month. The sum outstanding is very small but the interest rate is high. There are surprisingly few bad debts among credit card holders fraud is much more of a problem. The fact that large items can be bought with a card (unlike a cheque which normally can be used only to cover items of under 50) makes credit cards very attractive to the sneak thief who can run up a bill of several thousand pounds in the course of a few hours. However, the problem of the forgery of the cards themselves seems to have been solved by the incorporation in the design of holograms and computer codes. The next stages of the development of money are banknotes and cheques. It is sufficient to point out here that banknotes were, in origin, claims on gold

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and silver. Now money depends on the confidence of its users in the strength of the economy. When economies break down (as they occasionally do in wartime) money disappears and is replaced by some other commodity such as cigarettes. As money has grown more sophisticated, so it has grown farther away from its origins. For large sums, payment by cheque is far easier and safer than payment by notes and coins. The money is debited from the payers bank account and credited to the payees. Even if someone presents a cheque for cash at a bank, he or she will be paid in banknotes, which are, in origin, only a claim on the real assets, gold and silver. The system depends on the confidence of all those concerned. Shopkeepers accept cheques because banks will honour them. Bank accounts are therefore money in the same sense as notes and coins are, since they can be used instantly to purchase goods. Banks can thus create money. This is because only a small proportion of the deposits they hold is needed to meet the claims of those who want to withdraw cash. Those who deposit cash meet much of the need. Simple way for a bank to lend money is to create a deposit (or account) in someones favour. EXERCISES Exercise 1. : debit, to accept, sufficient, a few, few, to run up, to break down, to rely on, a payer, a paye, to apply, to fill in 1. The Government intends . . . economic sanctions. 2. He can always be . . . for help. 3. Balance-sheet is a written statement showing credit and . . . . 4. Negotiations have . . . . 5. . . . is a person who pays or is to pay. 6. . . . is a person to whom something is to be paid. 7. Have we . . . food for ten people tonight? 8. One is to . . . application form . . . when applying for a job. 9. The paye will prefer . . . the payment for the purchase in advance. 10. Ive got . . . English books, you can take some if you like. 11. Hes got very . . . friends who knows any foreign language perfectly. 12. He has . . . a bill in the bank quite enough to acquire real estate abroad. Exercise 2.

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. : to apply, to set, to pay, to hold, to replace, to withdraw, to solve, to pay, to purchase B. : occasional, instant, extreme, easy, surprising, real, original Exercise 3. : , , , , , , , , , , , , , , , , , , , Exercise 4. some/any/no something/somebody, anything/anybody, nothing/nobody. 1. Theres . . . at the door. Can you go and see who it is? 2. I havent read . . . of these books, but Tom has read . . . of them. 3. He left the house without saying . . . to . . . . 4. Would you like . . . more coffee? 5. Does . . . mind if I open the window? 6. Is there . . . news? - Yes, there are . . . letters on the desk. 7. If . . . difficulties arise, let me know. 8. I take . . . sugar with my tea, as Im keeping a diet. 9. He told us . . . strange story. 10. They have got really good friends. Have you got . . . ? 11. Its so dark here. Can you see . . . in front of us? 12. Im sure . . . can be done under the circumstances. 13. The film is really great. You can ask . . . who has seen it. 14. If . . . asks you . . . questions, dont tell them . . . . 15. There must be . . . who saw the accident.

UNIT 3.

SUPPLY AND DEMAND Vocabulary List

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1. change changeable to change clothes money ones mind 2. a commodity commodity capital commodity production value of capital 3. expenditure 4. 5. 6. 7. 8. expense as long as utility sacrifice a purchase to purchase a purchaser 9. to decrease = to fall to increase = to rise 10. limit 11. a point to point to point out 12. relation/relationship to relate to relatively 13. to exist 14. on the one hand on the other hand 15. a desire = a wish desirable 16. to tend 17. to diminish the Law of Diminishing Marginal Utility 18. to reduce reduction 19. elasticity 20. as a response to

1. 2. , , , , , , 1. 2. , 1. 2. 1. 2. 1. 2. , ,

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21. to offer 22. particular particularly 23. care carefully carelessly 24. income 25. according to 26. a scale 27. essential essentially 28. luxury 29. insurance to insure 30. to seem 31. quantity 32. to regard 33. necessary necessarily 34. steeply 35. to explain explanation 36. flow of funds 37. to reduce reduction 38. to borrow (a book from the library) 39. to lend 40. to be likely likely He is likely to come soon. 41. to affect 42. to expect expectation 43. to achieve achievement 44. willing willingly willingness 45. largely 46. a spouse

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47. normally 48. assurance 49. tax advantages advantage disadvantage 50. substantial 51. liquid 52. to allow allowance 53. major majority

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Text In most economic systems, the price of the majority of goods and services are fixed. The individual cannot change the prices of the commodities he wants, and when planning his expenditure, he must accept these prices. A consumer will go on buying cigarettes as long as his satisfaction continues and they render utility. If he continues to pay the current price, his satisfaction is greater than his financial sacrifice. With each purchase, however, his satisfaction decreases, although the prices remain the same. If a consumers supply of money is limited, point will come when the financial sacrifice is greater than the satisfaction of smoking cigarettes. He will stop buying the commodity. The cigarettes are the same, but their utility has changed. If the prices rose, he would buy fewer; if they fell, he might buy more. We can see that the nature of a commodity remains the same, but its utility change. This indicates that a special relationship exists between goods and services on the one hand and a consumer and his money on the other hand. The consumers desire for a commodity tends to diminish as he buys more units of the commodity. This tendency is called the Law of Diminishing Marginal Utility. Utility is of course related to the Laws of Supply and Demand. When economists talk about a Law of Supply, they mean that the rise in prices tends to increase the supply of a commodity, while a fall in prices tends to reduce it. When they talk about a Law of Demand, they mean that a fall in prices tends to

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increase the demand for a commodity, while a rise in prices tends to decrease the demand. Elasticity of supply, as a response to changes in price, is related to demand. Economists define demand as a consumers desire or want, together with his willingness to pay for what he wants. We can say that demand is indicated by our willingness to offer money for particular goods or services. Money has no value in itself, but serves as a mean of exchange between commodities, which do have a value to us. People very seldom have everything they want. Usually we have to decide carefully how we spend our income. When we exercise our choice, we do so according to our personal scale of preferences. In this scale of preferences essential commodities come first (food, clothing, shelter, medical expenses, etc.) then the kind of luxuries, which help us to be comfortable (telephone, special furniture, insurance, etc.), and finally those non-essentials, which give us personal pleasure (holidays, parties, visits to theatres or concerts, chocolates, etc.). They may all seem important, but their true importance can be measured by deciding which we are prepared to live without. Our decisions indicate our scale of preferences and therefore our priorities. Elasticity of demand is a measure of the change in the quantity of a good, in response to demand. The change in demand results from a change in price. Demand is elastic when a good is regarded as a basic necessity, but particularly elastic for non-essential commodities. Accordingly, we buy basic necessities even if the price rise steeply, but we buy other things only when they are relatively cheap. The classical explanation of the level of interest rates is associated with the theory of supply and demand. Thus the interest rate is the balancing point between the flow of funds from savers and the need for investment funds from business. If more funds become available from savers, or if industry has less need to borrow, interest rates will fall. If the funds available from savers are reduced, or if industry has a greater need to borrow, interest rates will rise. The demand for funds is likely to be affected by businessmens expectations of future profits. If they believe that they will achieve a high rate of return on investment, they will be willing to borrow. The supply of funds for borrowers depends largely on the willingness of the personal sector to save. Why do people save? One of the main reasons is to provide for old age or for children and spouses in the event of early death. This form of saving normally takes the form of investment in pension funds and life assurance and is helped by tax advantages. There has been a substantial growth in this form of saving since the 1960s. Another reason is to guard against rainy days caused by illness or unemployment: by its nature, such saving needs to be very liquid and is normally placed in building societies or interest-bearing bank

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accounts. A third reason for saving is to allow for major purchases or for holidays.

EXERCISES Exercise 1. : to accept, income, to seem, on the one hand, likely, a deal, effort, to point out, particular, careless, to allow, on the other hand, a change, a purchase, change, a decrease, to point out, quality, advantages, in return for, an insurance policy, ones mind, expenses 1. 2. 3. 4. 5. Can you give me . . . for a pound note? Dont leave your . . . on the shop counter! Lets hope there will be . . . in the weather! Will you . . . the offer to conclude the deal? First we wanted to dine out last night, but then we changed . . . and stayed at home. 6. . . . is money received during a given period (as salary, receipts from trade, interest from investments, etc.). 7. I have some . . . to make. 8. There has been . . . in imports this year. 9. This . . . turned out to be the main point of our business. 10. I must . . . that the price is too high. 11. The . . . and . . . needed for that project bore no relation to the results. 12. He . . . to think so. 13. He took . . . interest in that problem. 14. A . . . driver is a danger to the public. 15. . . . , the quantity of our production should be increased, but . . . , we are to pay particular attention to the goods . . . . 16. According to an . . . a client will get an insurance indemnity in case of losses or damages . . . regular payment. 17. He is not . . . to succeed. 18. Smoking is not . . . on board the plane. 19. He is the kind of man who always takes full . . . of every opportunity.

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Exercise 2. . . , , : to change, to accept, to relate, to desire, to care; B. : normal, large, most, relative, marginal, particular, willing, careful, careless, essential, necessary, according, steep; C. 1 : to change, to accept, to purchase, to increase, to decrease, to limit, to point, to relate, to exist, to desire, to diminish, to offer, to care, to insure, to regard, to associate, to reduce, to expect. Exercise 3. : , , , , , , , , (, ), , , , , , , , , , , , , Exercise 4. Passive Voice : wake, knock, check, translate, find, drive, make, take 1. 2. 3. 4. 5. 6. 7. 8. That building is dangerous. It ought to down before it falls down. When you go through Customs, your luggage may by a customs officer. I told the hotel receptionist that I wanted to up at 6.30. Her new book will probably into a number of foreign languages. Police are looking for the missing boy. He cant anywhere. The injured man couldnt walk and had to to hospital. I dont mind driving but I prefer to by other people. A decision will not until the next morning.

Exercise 5. (Present Indefinite Passive, Present Continuous Passive, Present Perfect Passive)

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1. 2. 3. 4. 5. 6.

The preparations for the party just (finish) and the guests are already arriving. The cat (feed) yet? Not yet. He (not see) for a week already. You ever (teach) how to play chess? I just (advise) to keep a diet. Papers (deliver) usually at 8 a.m., they (look through) at the moment and youll get yours soon. 7. Where is your car? It (fill) in the garage at the moment. 8. We are finishing the last preparations for the party: the light (switch on), the floors (clean), the tables (lay). Do you think well be ready on time? 9. Lots of people (operate on) in this clinic. And now unfortunately my uncle John (operate) on here. 10. You cant use the fax now, it (fix). Exercise 6. few ()/ a few(): 1. We didnt have any money. But Tom had . 2. He doesnt speak English. Only words. 3. This town isnt very well-known and there isnt much to see, so tourists . . . come here. 4. I dont think she would be a good teacher. Shes got patience with the children. 5. This is not the first time the car has broken down. It has happened times before. 6. The caf was almost empty. There were very people there. 7. There is a shortage of water because there has been very rain recently. 8. Well have to hurry. We havent got time. 9. I cant believe youre still hungry. Youve had eaten so . 10. Why are you sitting there doing nothing? Youve got things to do.

UNIT 4. MARKETS

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Vocabulary List 1 1. a chain a chain-store 2. to burst out 3. a restriction 4. to impose 5. virtually virtual 6. whatever 7. consequence 8. for the first time 9. shares 10. Treasury bonds 11. to pick up 12. even 13. to look for 14. expansion 15. domestic stock market 16. (to be) at the mercy 17. aftermath 18. vicious circle 19. to recur 20. a link = connection 21. various = different 22. to spur 23. a debt a debtor 24. appearance disappearance 25. capital flow 26. level , (ex.: McDonalds) , , , , , - 1. 2. , , 1. , 2. 3. ,

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27. yield 28. worse off 29. interest rates 30. to be concerned to concern 31. to push up 32. alternatively 33. amount 34. excessive 35. pressure 36. to take place 37. to suite suitable 38. to influence something 39. considerable 40. fluctuation 41. since 42. numerous 43. complete completely 44. close closely 45. unimpeded 46. a subject 47. peculiar 48. however 49. to affect 50. artificial, artificially

, , , , , , - , , 1. , 2. , , ; 1. 2. 3. , , , Text 1

People may be in chains but in the 1980s capital has become free. It has burst out of the restrictions imposed by national governments and now goes virtually where it will, whatever the consequences on individual economics. Perhaps for the first time it is now possible to speak of a single world financial market. UK investors can now put their money into Japanese shares and into US Treasury bonds as easily as they can invest in British companies like ICI or Cadbury Schweppes. They can pick up the telephone at night and sell those shares in Tokyo or New York, even though they may have been purchased

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in London or Frankfurt. In the same way, UK companies looking for funds to finance their expansion can turn to investors in Switzerland or Germany almost as readily as to those in Birmingham or Manchester. The freedom of capital means that domestic stock markets are at the mercy of international capital movements. That was dramatically high-lighted by Black Monday 19 October 1987 and its aftermath. Wall Streets 508 point fall was repeated in every major financial market round the world, creating a vicious circle of recurring falls. In some ways, the linking of the various markets is only a reflection of the way that trade links the worlds economies together. But the creation of a single world financial market has also been spurred by a strange combination of factors the aftermath of the 1973 debt crisis, advances in information technology and the disappearance of regulatory barriers to capital flows. It is very important to remember that financial markets are now international. Rates in Britain cannot be separated from those in other countries. UK investors can invest abroad if there is the chance for higher rates overseas, and foreign investors can invest here if UK rates are above their own. Both decisions are linked with the level of exchange rates. As investment in the USA might yield a high dollar rate of return, but if the dollar fell against sterling, investors would find themselves worse off. Governments concerned about the level of interest rates will often intervene to try to influence their movement. They may be concerned about the exchange rate and may push interest rates up to defend the pound. Alternatively, they may be concerned about the amount or credit in the economy. People may be borrowing because interest rates are low, with the result that excessive demand is leading to inflationary pressures. In a free market, competition make place among sellers in order to sell their commodities at the best possible price, and among buyers in order to obtain that they want at a price which suits them. Such competition influences prices. Changes in supply and demand have their effects, and it is not surprising that considerable fluctuations in price can take place over periods of weeks and months. Since these modern markets are not normally located at any special place, buyers and sellers do not always have to meet face-to-face. They may communicate by letter, by cable, by telephone or through their agents. In a perfect market, such communications are easy, buyers and sellers are numerous, and competition is completely unimpeded. In a perfect market there can be only one price for any given commodity: the lowest price which sellers will accept. There are, however, no really perfect markets, because each market is a subject to its own peculiar conditions. It can be said however that the price ruling in a market indicates the point where supply and demand meet.

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Monopoly is one of the peculiar factors which can affect the sale and purchase of certain commodities. In some markets, there may be only one seller or a cartel of sellers working very closely together to control prices. The result of such monopolistic activity is to fix prices at a level suitable to the seller, a level which may bring him artificially high profits.

EXERCISES Exercise 1. : consequences, a chain-store, to take place, peculiar, representatives, to expect, debts, to impose, to pick up, aftermath, suitable, to look for, relationship, considerable 1. Who are you . . . ? 2. New duties were . . . on transportation of wine, spirits and jewellery. 3. The telephone rang just as I was about to . . . the receiver. 4. We had to take into account all the . . . beforehand. 5. His . . . amount to 5000. 6. Rate of exchange is . . . of value between two currencies (e.g.: dollars and francs). 7. A . . . is one of many shops owned and controlled by the same company. 8. Whatever consequences will there be, well learn about it . . . . 9. When will the conference . . . ? 10. What is the most . . . time for meeting? 11. They will send their . . . in order to make closer business relations with our company. 12. All the equipment was bought at a . . . expense. 13. It was a complete surprise to me, I wasnt . . . it and hadnt even thought of it. 14. Are there any . . . conditions of living and working in this country? Exercise 3. : , , , , , , , , , ,

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, , , , , , , , Exercise 4. . 1. 2. 3. 4. 5. He said: Bill passed his examination yesterday. She said: Ive got many friends in this city. He asked: Did you send the letter? He asked: How long have you worked for TST Systems? The manager asked: Will the container be ready for dispatch by 18th November? 6. The Director asked: Did you give a call to our partners this morning? 7. He said: Im very busy. 8. Mary said: Ill stay in London for a fortnight. 9. She asked her friend: Will you go to the party tomorrow? 10. He asked: Can you speak more slowly? 11. Mrs.Taylor said: I wont be able to come tonight. 12. He asked: What happened at night? 13. He wanted to know: How much do you have with you? 14. He asked: When did you get interested in languages? 15. He wanted to know: Do you have any spare time today? 16. He wanted to know: Do you have to go to the office every day?

Vocabulary List 2 1. probable probably 2. by extension extension 3. to hold 4. origin 5. unwillingness 6. for fear , , 1. 2. ,

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7. a deposit 8. tension 9. to be able 10.onwards 11.current account 12.to attract attractive 13.to be born 14.a counterpart

1. 2. , , 1. , 2. , ,

Text 2. Eurocurrency The growth of the Eurocurrency market is probably the single most important development in the international financial markets since the Second World War, because it has created a market in which borrowers and lenders can borrow and invest funds, virtually untouched by the wishes of nation states. What is a Eurocurrency? The first Eurocurrency was the Eurodollar the simplest definition of which is a dollar held outside the United States. A Eurocurrency, by extension, is a currency held outside its country of origin. Eurocurrencies are normally held as bank deposits. So dollars deposited in Barclays Bank in London are Eurodollars; French francs held in the same bank are Euro-French francs; a sterling deposit in Paris is a Eurosterling deposit, and so on. How did the Eurocurrency market begin? Some people believe that the market had its origin in the unwillingness of the Soviet Union to hold dollars in New York for fear that the UK government might freeze its deposits at times of political tension. The Russians needed dollars to be able to conduct international trade, and they began to borrow in Europe through a Russian-owned bank, Banque Commerciale pour lEurope du Nord, whose telex code was Eurobank. Where did the dollars that the Russians borrowed come from? From the late 1950s onwards there were plenty of dollars around outside the United States because of the current-account deficit, it pays out more of its own currency than it receives in foreign currency. Dollars were therefore flowing out of the country into the hands of foreign exporters. At the same time the US Treasury imposed Regulation Q, which set upper limits on the level of interest rates that US banks could offer to domestic and foreign investors. Those people

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who held dollars outside the United States and wanted to invest them found that non-US banks were able to offer more attractive rates than their US counterparts. Thus the Eurodollar market was born.

EXERCISES Exercise 1. : to run up, to demand, temporarily, to attract, to borrow, to deposit, freeze, to lend, permanently 1. 2. 3. 4. 5. I can . . . you 100 $. Can I . . . that book of yours? Wed like you . . . a tenth of the price of the house. The workers . . . were refused by the employers. . . . means stop dealings in assets, credits and other financial operations . . . or . . . , as well as severe control of prices and wages. 6. House sales generally . . . during the summer months. 7. Bright light . . . insects. Exercise 2. . . : to compete, to buy, to sell, to supply, to demand, to purchase, to work, to grow, to develop, to borrow, to lend, to invest, to own . : possible, considerable, normal, complete, easy, real, close, artificial, probable, virtual C. : to obtain, to influence, to locate, to meet, to give, to accept, to rule, to indicate, to demand, to supply, to bring, to create, to hold, to begin, to own Exercise 3. : , , , , , , , ,

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Exercise 4. . : 1. The jacket is too small. I need a (large) one. 2. Hes not keen on his studies. Hes (interested) in having a good time. 3. Youll find your way around the town (easily) if you have a map. 4. Youre making too much noise. Can you be a bit (quiet)? 5. There were a lot of people on the bus. It was (crowded) than usual. 6. Health and happiness are (important) than money. 7. I prefer this flat. Its (comfortable) than my previous one. 8. We complained about the food in our hotel. But instead of improving it got (bad). 9. Your work isnt very good. Im sure you can do much (good). 10. If you need any (much) information, please contact our head office. 11. Travelling is becoming (expensive). B. : 1. This hotel is the (cheap) in the town. 2. It is (valuable) painting in the gallery. 3. He is one of (rich) man in the world. 4. His composition is the (good) in the group. 5. It was (bad) experience in my life. 6. Its (boring) film Ive ever seen. 7. (Many) students in the group can speak English. 8. This task was (difficult) in the test. 9. What is (happy) day in your life? 10. Who is (intelligent) person you know? 11. Who is (old) child in the family? 12. That was (delicious) meal Ive had for a long time. UNIT 5. MONETARY FUNDS. THE BANK OF ENGLAND Vocabulary List 1 1. to face the risk 2. to burn down 3. to fail 4. to encourage encouragement 5. to guarantee against something , -

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6. loss 7. to disrupt 8. alternatively 9. genuinely 10. insolvent 11. rescheduling of debts 12. repayment 13. slightly 14. to postpone postponement 15. to prove 16. unable 17. loan to loan 18. to resort (to help) 19. balance of payment 20. harsh harshly

, , , , , , , , , , 1. 2. ( ) , ,

Text 1. Monetary Funds Businesses face not only the risk that their buildings will burn down and their goods will be stolen but also the risk that their debtors will fail to pay. This is a particular problem for exporters who have to deal with clients that may not now to sell. The Export Credits Guarantee Department (ECGD) was set up in 1919 by the Lloyd George coalition with the aim of encouraging exports. The purpose of the ECGD is to guarantee exporters against bad debts by providing credit insurance.. Most of the exporters claims on these policies are for political causes of loss. A revolution or war may prevent exporters from receiving payment for their goods (a good example was the Falklands War in 1982, which disrupted trade with Argentina). Alternatively, an economic crisis in the importing country may cause the government to impose foreign-exchange controls and effectively prevent an importer, who genuinely wants to pay, from paying for the goods he has received. The ECGD will cover exporters for 90 per cent of loss if the buyer becomes insolvent or fails to pay within six months. It will cover 95 per cent of

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all political losses. Most of this cover is provided for consumer goods sold on credit terms of up to 180 days. At this point a supranational champion of the banks came on the scene the International Monetary Fund (IMF). Banks did agree to a certain amount of rescheduling of debts repayment over a slightly longer period or postponement of interest payments. But they proved unable or unwilling to lend the debtor countries all the money needed to enable them to repay their loans. Net lending to the developing countries halved every year between 1979 and 1983. The IMF seemed to be the only possible source of new loans for the debtor countries. The Fund was set up at the end of World War II with funds from the member countries, with the aim of being lender of last resort to countries with balance-of-payments problems. Under the rules of the IMF, countries can borrow up to a certain quota, depending on the amount of funds they contribute. However, should countries wish to borrow funds beyond their quotas, IMF terms are harsh. It insists on changes in economic policy to create the conditions for loan repayment. EXERCISES Exercise 1. : to burn down, to disrupt, to loan, an insolvent, to fail, losses, claim, alternatively, prevention, to prove to be 1. 2. 3. 4. Several of the biggest banks . . . during the depression. Half of the buildings were . . . in London during the Great Fire. He was punished by a fine of $25 or . . . six weeks of imprisonment. Insurance provides guarantee against different kinds of . . . , e.g. cargo damages, fire, etc. 5. Their quarrels seem likely . . . the meeting. 6. . . . is a sum of money demanded, e.g. under an insurance agreement. 7. . . . is better than cure. 8. Money which has been . . . to city councils can be repaid at a low rate of interest. 9. Our wood supply . . . insufficient. 10. . . . is a person unable to pay debts, or a bankrupt.

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Exercise 2.

A. : to face, to fail, to guarantee, to loose, to pay, to postpone, to be able, to encourage B. : alternative, genuine, slight, harsh, good, effective, genuine Exercise 3. : , , , , , , , . Exercise 4. . 1 : 1. 2. 3. 4. If the child (be) no better, we (must) take him to hospital. If I (not have got) enough money, I (take) some from the bank. What (happen) if you (not go) to work tomorrow? Im sure she (understand) everything if you (explain) the situation to her. 5. I (wait) until you (get back) , but dont be away too long. 6. You (not come) in time for the lecture unless you (hurry). 7. You (not go hiking) until the weather (change) for the better. 8. If you (not do) as I tell you, you (not succeed). 9. They (be) terribly upset if we (not come). 10. She (get) there faster if she (go) by plane. B. : 1. We (go) for a walk if the weather (be) better. 2. We (travel) more if we (have) enough money. 3. Theyre expecting us. They (be) disappointed if we (not come). 4. If I (be) offered the job, I think I (take) it. 5. If he (be) in the city, he (call) us. 6. If he (smoke) less his health (be) much better. 7. I (help) you if I (can), but Im afraid I cant. 8. If the book (be) less expensive I (buy) it. 9. If I (not must) work today I stay at home. 10. If she (know) English better she (try) to enter the University.

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. : 1. 2. 3. 4. 5. 6. 7. 8. 9. If I (have) some spare time yesterday, I (visit) you. If he (not get) to the station in time he (miss) the train. If he (miss) the train, he (be) late for the job interview. I (be able) to buy the car if Jane (lend) me money. I (forget) about his birthday if his sister (not remind) me about it. If she (arrive) I (let) you know. If she (help) me I (complete) the work much sooner. We (not believe) it if we (see) it with our own eyes. She (meet) her friends at the airport if they (inform) her about their arrival. 10. She (get in touch) with me yesterday if she (try) again later. Vocabulary List 2 1. 2. 3. 4. 5. 6. 7. to influence a twitch an eyebrow a trauma to reinforce reinforce a statute , , 1., 2. , () , , , , , , , , ,

persuasion to persuade 8. a merchant 9. to suggest 10. joint stock (capital) 11. to ensure 12. to remain 13. severe severely 14. ability 15. however 16. to erode 17. pre-eminent

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18. to follow a succession to follow something 19. a failure 20. to blame on 21. to restrict 22. total 23. currently 24. an occupant to occupy 25. formerly 26. controversial 27. an appointment 28. to make an appointment 29. a link to link 30. frequent frequently 31. independence independent 32. to strain over 33. to run a bank 34. a vast range 35. responsible responsibility 36. to phase out 37. to withdraw 38. equal 39. notoriously 40. unwilling unwillingly 41. to handle

- , 1. 2. 1. 2. , 2. , 1. , 2. , , , , / , , ,

Text 2. The Bank of England

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The Bank of England is the centerpiece of the British financial system, an institution which in the past has been able to influence the markets with a twitch of its Governors eyebrow. Today, after a few traumas, its powers are reinforced more by statute than by gentle persuasion, but it retains a slight air of a head prefect in a boys school. The bank was founded back in 1694, when King William III needed money to fight Louis XIV of France. A Scottish merchant, William Peterson, suggested that a bank should be formed which could lend money to the government. Within fifteen years, the Old Lady of Threadneedle Street, as it became known, was given the monopoly of joint-stock banking in England and Wales. That ensured that it remained the biggest bank in the country since those banks which were not joint-stock could by law have no more than six partners, severely limiting their ability to expand. However, that monopoly was eroded by Acts in 1826 and 1833 and the Banks pre-eminent position was not really cemented until the Bank Charter Act of 1844. The Act followed a succession of banking failures, which was blamed on the overissue its own notes, opening up the risk not only of fraud but also of inflation. The Bank Charter Act restricted the rights of banks other than the Bank of England to issue notes, a restriction which became total (in England and Wales) in 1921. Scottish banks can still print notes. By that time, the Banks position as one of the countrys most prestigious institutions had been established and the interwar governor, Montague Norman, was one of the most influential men of his age. Such was the power of the Old Lady that the Attlee government put through its right to nationalize it in 1946. It is now answerable to the Treasury, although it maintains a certain amount of independence. The Governor of the Bank of England is still a very important and prestigious post. The current occupant, Robin Leigh-Pemberton, formerly Nat Wests Chairman, was a controversial appointment because of his Conservative party links. (To be fair to Mr. Leigh-Pemberton, he has frequently demonstrated his independence. At times, the relationship between the Bank and the Treasury has been severely strained over the past few years). Mr. Leigh-Pemberton runs a bank which has a vast range of responsibilities. The one for which it is perhaps most famous is the printing of banknotes. Before the phasing out of 1 notes, the Bank was printing 7.5 million new notes every day (and withdrawing around the same number). That was equal to around thirty new notes per year for every person in the country. British people are notoriously unwilling to handle old banknotes in Germany; only nine new notes are printed per person per year.

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EXERCISES Exercise 1. : to ensure, to draw, influence, joint-stock, to withdraw, to follow, appointment, to run a car, a failure, total, to occupy 1. Will you use your . . . to get me a job? 2. A . . . company is a group of persons who carry on a business with capital contributed by all. 3. These documents . . . to you the authority you need. 4. Our expenses reached a . . . of $ 200. 5. A current account is one from which money may be . . . without previous notice. 6. He got the . . . as manager. 7. I cant afford . . . on my small salary. 8. She . . . an important position in the Department of Environment. 9. Id like to . . . part of the amount from my savings and put it in my cheque account. 10.His . . . to help us was disappointing. 11.Monday . . . Sunday. Exercise 2. A. : to occupy, to appoint, to depend, to influence, to persuade, to fail, to connect B. : total, severe, equal, frequent, former, current, notorious, unwilling Exercise 3. : , , , , , -, , /, . Exercise 4. 1. The driver of the car was (serious) injured in the accident. It is a

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(serious) mistake. 2. Hes a very (quiet) child. Speak (quiet) please! 3. The prices are (reasonable). Its a (reasonable) cheap restaurant. 4. She waited (nervous) in the hall before the interview. She was (nervous). 5. Alice and Den are very (happy) married. They are very (happy). 6. The train was (late). Have you seen him (late)? 7. Its a (hard) work. Weve got (hard) any food. 8. Its so (warm) today. Its such a (warm) day. 9. I was surprised that he looked so (good) after his recent illness. Ive never read such a (good) book. 10. I lost the match because I played so (bad). He had such (bad) results for his test that he lost the opportunity to enter the University. 11. Hurry up! Youre always so (slow). Youre driving so (slow). 12. I havent seen him for so (long) that Ive forgotten what he looks like. 13. Youve been away for such a (long) time!

UNIT 6. ECOLOGY. FORESTRY OF FINLAND Vocabulary List 1 1. urgent urgently an urgent message 3. generation 4. a plant to plant 5. to include , 1. 2.

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6. soil 7. health healthy unhealthy 8. inside 9. outside 10. poison 11. to poison 12. fuel 13. liquid 14. wastes to waste (time, money) 15. a cause to cause 16. a cell 17. to find out 18. pollution to pollute 19. dump 20. nuclear 21. extinction extinct 22. soot 23. to obscure 24. to prevent 25. a stock 26. ulcer 27. plague 28. a casualty 29. contamination 30. to transfer 31. the rest the most 32. to pull ones efforts 33. to do away with something 34. to persuade 35. alarming

, , , , , , , , (, ) , , , , , () , , 1. . 2. , , , , , , () , , ,

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to alarm an alarm-clock 36. to keep ahead 37. fossil 38. to sustain 39. to go on 40. solid 41. to emit emission 42. species 43. solution 44. consumption 45. inevitably 46. to give up 47. affluence 48. on ones own 49. petrol 50. to decline

1. 2. , , , , , ; , , , , , , , ,

Text 1.Ecology There are a lot of problems facing people on the Planet Earth nowadays. The problems that demand world action are: the growth of world population, economic crises, ethnic conflicts. But the most urgent problem concerning the people of the whole world is an ecological one. What is ecology? Ecology is the science that studies the conditions of the habitat of man, animals and plants for the benefit of present and future generations.

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What is the environment? The environment is everything around us. It includes all living things. It also includes everything that is not alive, such as the soil, the air and the water. Human activities can make the environment unhealthy. The gasoline burned inside car engines produces gases that poison the air. Factories burn fuels to run machines, and this burning fuels, too, put poisons into the air. Human activities also poison water. Some factories produce liquid wastes that run into rivers. Often, these wastes contain poisons. Sometimes, useful chemicals cause problems in the environment. When small animals eat poisoned insects, they take in the chemicals into their cells. When larger animals eat these small animals, the poison is passed on to the larger animals. And the larger animals are eaten by still larger animals including people. Many scientists study the environment. When there is a problem, they try to find out why. Then they look for ways to stop the problem. Scientists have also helped to find ways to reduce air and water pollution. New cars burn fuel better and produce fewer poisons. There are laws against dumping factories poisons into rivers and lakes. People who break these laws should be punished. Nuclear Winter Awaits Our environment is vitally connected with the problem of peace on our planet. The scientists consider that nuclear war could destroy mankind completely, for a large scale nuclear exchange could mean the extinction of the human race. The climatic, biological and environmental effects of a nuclear war might be horrible. An exchange of only a small fraction of warheads would produce nuclear winter in which smoke and soot would obscure the sunlight; the temperature would fall below freezing levels and global toxic smog would be created. Thats why there is no more important task today than to safeguard peace and prevent a nuclear catastrophe on the Earth which is our one and only home. In the world there have been stocked great masses of chemical and bacteriological weapons. Included are the most dreadful varieties the bacilli of Siberian ulcers and the plague. If any of these weapons is used, casualties will run into tens of millions. Mankind has no immunity against bacteriological weapons, and the use of chemical weapons will result in mass contamination of the area and its transfer to the rest of the planet, thus affecting the life of several generations.

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One would like to believe that common sense will prevail and none of these weapons of mass destruction will be used. If we fail to find ways to pull our efforts to do away with wars, if we fail to persuade people to take a different approach to ecological problems, then the chances are that we will be the last happy generation to live on the Earth. Population Fears The worlds population may rise by 97 million people a year for the next decade. In 1950 the worlds population was 2,5 billion. In 1992 it stood at 5,4 billion. By the year 2050 it will have reached 10 billion, double what it is today. Most people find these figures alarming. Is the alarm justified? Optimists will say that world food production has kept well ahead of population growth. Exploration and new technology have meant that known reserves of minerals and fossil fuels have grown rather than diminished. Some scientists think that these reserves will go on forever. But the fact remains that the rate of food production fell behind population growth rather in two thirds of developing countries between 1978 and 1989. The annual fish catch already exceeds what the worlds oceans can successfully sustain. If we go on using our natural resources at todays rates, well have used up the entire reserves of copper, natural gas and oil by the year 2054. But the problems ahead also live in what we waste. This includes all solids, liquids and gases we emit, and all the forests and species we carelessly destroy in the process of living. The only solution is to try to change the areas of consumption, technology and population . There is little hope of reducing consumption over the next half century. The poorest people will inevitably increase their consumption, and the rich will never give up even part of their affluence. Technology changes will also not work on their own. Although cars now use less petrol, the number of cars has risen by 58% since 1973. Changes in technology must be backed by slower population growth. A decrease in population growth can only be achieved by education in health and womens rights. Such a program could cut a good two billion off the ten billion expected in 2050. If women have fewer than two children each, the world population will decline after 2050. EXERCISES Exercise 1.

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a stock, dumping, rest, most, urgent, pollution, on ones own, contamination, available, a cause, a stock broker, to give up, stocks and shares, to waste 1. It is the most . . . that the payments should be made in time. 2. All the efforts were . . . . 3. There is no . . . to complaint about. 4. . . . is selling abroad at the lowest prices the items which are unwanted in the home market. 5. The sellers demand that the . . . part of the amount should be transferred in advance, and the . . . part should be transferred within a month after the delivery date. 6. He is sure to manage the situation . . . . 7. One of the most essential problems of nowadays is air . . . and . . . of water supplies. 8. . . . is a store of goods available for sale, distribution or use, especially goods kept by a trader or shopkeeper. 9. The goods demanded by the Customer was out of stock (werent . . . at the moment). 10. A . . . is a man who buys and sells stocks and shares. 11. I did want a holiday abroad, but weve had . . . up the idea. Exercise 2. . : to poison, to waste, to cause, to pollute, to dump, to extinct, to prevent, to contaminate, to alarm, to emit, to solve, to decline, to consume, to change, to explore B. : urgent, mutual, vital, complete, horrible, happy, successful, careless Exercise 3. : , , , , , , , , , (), , , , , , (), , -, , , , ,

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Exercise 4. , 1. 2. 3. 4. 5. 6. It gives me pleasure to help you. It was very kind of them to book a room for me in advance. To tell him the truth at that moment meant to upset him. It was foolish of her not to have accepted the offer. To deceive the lawyer was absolutely impossible. To do your shopping at the supermarket means to save a lot of time they sell many things under one roof. 7. Your only chance to go on this excursion is to pass your exams beforehand and successfully. 8. Johns house was not easy to find we didnt remember its number. 9. The girl is very pleasant to talk to, she is well-read. 10. This is a very good hotel to stay at. 11. He isnt kind of man to turn to. 12. Thats not the sort of book to be recommended. 13. Ive got a lot of letters to write. 14. There are a lot of patients to be examined. 15. Mary was the first to come. 16. He was the last to be told the news. 17. He went to the doctor to ask for advice. Exercise 5. , 1. Do you want me to help you? 2. Id like them to call on us on Sunday. I havent seen them for ages. 3. What do you want me to buy? 4. When does she want me to ring her up? 5. I dont expect her to agree to his proposal. 6. What made him change his mind? 7. He is supposed to be in Paris at present. 8. The plane is reported to be delayed in Liverpool. 9. He is said to have left for London. 10. He doesnt seem to be a very experienced one. 11. They dont seem to be worried about the coming exams. 12. Im sorry I couldnt talk to him when he called yesterday, I happened to be out then. 13. He appears to be studying the documents at the moment. 14. The weather is likely to change for the worse. The sky is overcast. 15. We are not likely to finish our work by next week. Theres still too

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much to do. 16. The first thing for you to do is to find his telephone number. 17. She waited for the phone to ring. 18. There was nothing for us to discuss. 19. We left the message on the table for Jim to see it at once. 20. There was really nothing for them to do but wait. 21. Did you see them come in? 22. Its for you to decide. Exercise 6. , , 1. I was just going to suggest having a swim in the lake. Its unbearably hot. 2. I was just going to translate the text. Ive had no time to do it. 3. He was surprised to have been invited to that party. 4. She was sorry to have lost her chance to go to London. 5. Youd better come on time tomorrow. 6. Id rather not go to the pictures tonight. Im very tired. 7. I think Id rather return home than wait for them. 8. I think Id sooner put up at a hotel than stay at some friends house. 9. To be quite frank I dont believe them to have translated everything by themselves. 10. To put it mildly, his answer left much to be desired. 11. They had me accept the invitation. 12. We wont have him speak like that. 13. Im afraid he is not likely to be in. 14. Why didnt you make the child drink some hot milk? 15. That made her feel better. 16. I want to have my hair cut. 17. Hed like to have his shoes mended. Vocabulary List 2 1. 2. 3. 4. 5. 6. in the long run gradually due to primarily at the same time composition

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7. substantially substantial 8. upgrade 9. to tighten 10. constraint 11. a shift 12. external market 13. sustained 14. scarce scarcely 15. hence 16. to establish 17. to facilitate 18. threat 19. rather than 20. to enjoy an access 21. preferential 22. overall growth 23. in spite of 24. moderate 25. growth rate 26. to expect 27. to spread 28. literacy 29. in relative terms 30. threefold 31. obviously 32. except (for)

, , , , , , , , , , , , () ,

Text 2.

Forestry of Finland

In the forest industry Finland has for a long time been among the worlds leading exporters. In the long run its global market shares have, however, gradually declined, particularly in Western Europe, due primarily to North American but also to less developed (LDC) producers. At the same time, during the last quarter of a century, the composition of Finnish forest product exports has been substantially upgraded.

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In the long run there are two major factors which are restricting the growth potentiality of the Finnish forest industry: first, tightened resource constraints and, second, competitive shifts in external markets due to new sources of production. Finland has already reached its wood-producing limit on a sustained yield basis, and as wood has become a scarce resource, its price has tended to rise. Forest industry products compete primarily by price, and hence low-cost wood sources have gradually become more and more competitive. Technological advances in the use of short-fiber materials for pulp and paper making, as well as in making programmes for establishing fast-growing plantations, have facilitated the utilization of tropical forest areas. The competitive threat from LDC wood-processing industry is primarily directed to home markets rather than to exports. Secondly, Finland enjoys free access to European markets than LDC due to its preferential trade agreements with EEC countries. Over the last quarter of a century, the world industry has grown steadily, although the overall growth of demand has not been so intense as in many other industrial sectors. In spite of the relatively moderate growth rate, the world consumption of the forest products is still expected to increase. The demand will grow fastest in the Third World, due to the low starting level, economic growth and urbanization as well as spreading literacy. There the production of the forest industries has also grown fastest in relative terms during the past two decades. The global share of less developed countries (LDCs) has increased both in the mechanical and chemical forest industry sectors. The growth has been particularly intense in the production of wood-based panels and wood pulp, in which the global share of LDCs has increased threefold during the period of 1961 to 1981. Obviously the developed countries still dominate the world forest industry production, but the continuation of such a growth rate in LDCs could lead gradually to considerable changes in the geographical composition of production. At present, about a fifth of the world mechanical wood processing takes place in LDCs, but still only a tenth of the chemical wood processing. The Finnish share in the global forest industry has declined slightly in every sector except paper and paper board. EXERCISES Exercise 1. : due to, built-up, access, substantially, to expect, except for, scarcely, to spread, to facilitate, threefold, overall

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1. 2. 3. 4. 5. 6. 7. 8.

Your efforts contributed . . . to our success. A course of studies . . . over three years. The casualty was . . . careless driving. We are restricted to 30 miles an hour in . . . areas. Ive never . . . him to act like this. Modern inventions have . . . processing and production. I . . . know the matter, so I can hardly help you. The . . . growth of our economy has been . . . this year compared with the previous one. 9. The University students enjoy free . . . to all new foreign publications. 10. We have discussed all the terms of the contract . . . the amount of prepayment which is to be defined within 3 days. Exercise 2. . A. : substantial, obvious, primary, gradual, moderate, scarce, hard, slight B. : to expect, to process, to establish, to facilitate, to restrict, to sustain Exercise 3. : , , , , ( ), , , , , , , , , , , Exercise 4. , used to: 1. 2. 3. 4. 5. 6. I used to play tennis a lot, but now Im too lazy. - Do you often go to the theatre? - Not now, I used to. This building is now a furniture shop. It used to be a cinema. Ive started drinking coffee recently. I never used to like it before. Ann used to have long hair but she cut it some time ago. Jack didnt use to go out very often until he met Jill.

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7. Do you see that hill over there? There used to be a castle on that hill. 8. Tom used to travel a lot. These days he doesnt go away very often. 9. I usually stay in bed late. But when I had a job, I used to get up early. Exercise 5. , to be used to, to get used to: 1. She is used to driving on the left, because she has lived in Britain for a long time. 2. Frank is used to living alone. He doesnt mind it because he has lived alone for 15 years. 3. Im used to the weather in this country though at first it was hard. 4. It took me a long time to get used to wear glasses. 5. He is the boss. He is not used to be told what to do. 6. Tom got tired very quickly. He wasnt used to running so fast. 7. She started working a nurse a week ago. She is not used to working at night, so she has to get used to it.

UNIT 7. WORLD FAMOUS COMPANIES

Vocabulary List 1. penetration

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to penetrate 2. to enter an entrance 3. to found foundation 4. content 5. brand image 6. further 7. to accomplish accomplishment 8. staff 9. to design a design 10. with the exception 11. to introduce introduction 12. profit margins 13. average 14. traffic jams 15. occasional occasionally 16. probability probable 17. to capture 18. recently 19. to realize 20. joint joint venture 21. modest modestly 22. to aid aid 23. for instance 24. to equip equipment 25. executive 26. a core 27. mainland 28. to work well

, 1. , 2. 3. 1. 2. , , , , , , , , , , , , , , ,

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29. to keep doing something 30. to stamp out 31. a rival 32. underwriter 33. to approve approval 34. limited liability 35. failure to fail 36. to suffer a loss 37. to servey 38. to conform in conformity 39. a vessel 40. worthy 41. publicly owned 42. to apply application 43. a vendor 44. alliance to ally 45. procurement to procure 46. in this pursuit 47. residential residence 48. humidity humid 49. emergency 50. installation 51. start up 52. preventive maintenance 53. processing to process 54. utility 55. fertilizer 56. to collaborate collaboration 57. combustion

- , , , , , , , 1. , 1. 2. , 1. 2.

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58. fluidized 59. capability 60. commitment to commit 61. utility customers 62. headquarter 63. a boiler to boil 64. pulp industry 65. equity 66. to chart 67. a charterer 68. to carry out

, , , ,

Text Automobile production Nissans European market penetration began with exports to Finland in 1959. The company historically has first moved into a limited market representing a large car. After entering Finland, the company concentrated on the northland European countries. Nissan did not enter the European Common Market until the late 1960s. To manufacture passenger cars in Europe, Nissan founded Nissan Motor Manufacturing in the UK in 1984. Nissan produced an upper-medium size car, the Bluebird. The car was produced with 80 percent local content and materials. The integration of the European Common Market, especially after 1992, will have a major impact on Nissans operations. With the expected growth of the European market Nissan planned to increase its market share, improve its brand image, and decentralize further its operations, product design, production, marketing and sales. Nissan plans to accomplish these European goals through its British operations. Studies indicated that with the exception of Germany, the importance of price was relatively high. Nissan planned to introduce a new car, the Micra. The Micra was planned as a smaller car than the Nissan Bluebird. The Bluebird had already been

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profitable and had high unit profit margins. Micra entered the market from the lower end. It was a relatively lower-priced car. Nissan in Europe, so far, has the image of being an average Japanese car maker because the company has focused on low-priced cars. In Bangkok, Thailand, sitting for hours in traffic jams, one can see Nissan, Toyota, and Mitsubishi cars and an occasional Mercedes or BMW. The probability of ones seeing an American car is less than one in 250. But in other parts of Asia, American firms are doing better. Despite the Japanese competition, Ford Motor Company has captured well over 25 percent of the market in Thailand. In Malaysia, Ford sales are growing fast, they went from 0 to 4.4 percent of the market within a year or two. Fords modest success has encouraged General Motors (GM) also. General Motors recently set up a regional office in Hong Kong and sales offices in Thailand, Malaysia, and Indonesia. The company realized that Buick car is very popular in Taiwan. General Motors has had a joint manufacturing venture in South Korea, but it has been very unsuccessful so far. In Japan, General Motors started making modest city cars. It has expanded its dealer network by finally using the Japanese affiliates in which it invested more than ten years ago. Aiding General Motors efforts are its lower prices. For instance, a well-equipped Grand Am in 1989 sold for about $20,000, about half a price. GM also started advertising on TV. Ford has been moving faster, too. It is automating its partners in Malaysia and Taiwan. In its Taiwan plan, the company is building up a core of Chinese managers who may help the company enter the mainland Chinese market. First the company planned to assemble subcompacts in Taiwan (a low-wage, low-cost operation) and export from there. This idea did not work well. But the company kept its struggling for joint venture operations on Taiwan and Malaysia. The Malaysian partner decided to become a volume player and today the highestquality cars in Malaysia are produced in the jointly owned plant. Many Ford cars coming from factories in Malaysia and Taiwan are stamped out in Mazdas Japanese factories. The cars are assembled there. Ford also moved its Asian headquarters to Tokyo to monitor the rivals better. Progress was slow but steady.

LLOYDS This is the name of the greatest insurance business in the world, but it acquired this name in a rather unusual way: it started in a seventeenth-century coffee house Mr. Edward Lloyd kept a coffee house in the City of London

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and there the underwriters used to meet because it was a good center for news concerning ships. Later in the eighteenth century, after several changes of home, the underwriters occupied the third building of the Royal Exchange (earlier buildings having been destroyed by fire) and organized their business under a Committee in Leadenhall Street, and as this soon became too small, an extension was built and opened in 1958. As a matter of fact Lloyds is not an insurance company or corporation. The members work as individuals, though usually in syndicates. To become a Lloyds underwriter it is necessary to be approved by the Committee and to pay a very large amount as entrance fee as well as an annual subscription. Lloyds underwriters are not allowed limited liability, but in the rare cases of failure (as also in the London Stock Exchange) the insured are not allowed to suffer and the Committee pays the outstanding claims. As the result of the marine insurance business, Lloyds branched out into shipping intelligence, and Lloyds List is published every day, giving the movements of ships and information of casualties. Lloyds Register, published every year, contains information concerning ships themselves: age, nationality, owners, build, tonnage and conforming to its rules. The classification Al-100 Lloyds is a guarantee to any prospective purchaser or charterer that the vessel is in good condition and thoroughly sea-worthy.

HONEYWELL CORPORATION Honeywell is a publicly owned, global enterprise whose success is built on creating control components, products, systems and services and putting them to work in homes and buildings, industrial processes and manufactured products, and aviation and space. The technology of electronic control began with a Honeywell invention. It grew into an industry through Honeywell innovations. And it remains the core of its business. Its mission is to develop and apply control science to help people around the world live better and work more productively. Honeywell believes they can accomplish the most for a customer by establishing a close working relationship in which they become the customers control partner. In customer-vendor partnerships, each party learns the other companys needs and abilities and becomes familiar with their partners worldwide business practices. Thus customer and supplier become closer together, understanding their mutual strengths and objectives.

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This alliance has several advantages for customers: Honeywell is able to assist in planning their control strategies; their control requirements help to guide the development of Honeywell products and applications; and cooperative planning and efficient procurement methods reduce costs. To fill its responsibility as a control partner, Honeywell is a leader in development of products, systems and services. In this pursuit, its strategic technologies are: sensors, signal processing, control processes, user interface, system integration, system architecture, artificial intelligence and expert systems and design and manufacturing tools. Honeywell products are found in six out of seven American homes. Honeywells products include: residential controls, building automation and control and industrial automation and control. Automatic control of residential environment, including temperature and humidity control and air cleaning. Management systems to control indoor environment, lighting and energy saving in commercial buildings and building complexes, fire and security systems to sense crisis situations, send alarms and manage emergencies. Services include engineering and design, installation and start up, training of operating personnel, preventive maintenance and emergency repair. Honeywell systems are at work in half of the four million commercial buildings in the U.S. Honeywell products and systems automate food processing and pharmaceutical plants and utilities. In 61 countries, they control production of half the worlds gasoline, half its chemical fertilizer and 40 million metric tons of paper a year. In 1990, Honeywell International generated sales of $2.0 billion 32 percent of Honeywells total. Profit of $ 240 million 35 percent of Honeywells total. Honeywells global presence covers over 90 countries. Honeywell people represent 50 cultures and speak 30 languages. They collaborate with 75 distributors and sales agents and participate in nine joint ventures. AHLSTROM PYROPOWER FACT SHEET Ahlstrom Pyropower is a world leader in advanced combustion technology and products, and is the leading supplier of fluidized bed combustion power systems. Our technology and products are selected by our customers and licensees for economic and environmental advantages. Through their research and development capability, we understand all aspects of combustion and heat transfer related to their products, and we continually develop new technology solutions for our customers. This capability, along with their innovative financing, project development,

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ownership and operations and worldwide activities, assists our customers in meeting their steam and power needs. Ahlstrom Pyropowers long term commitment is to provide our process, industrial and utility customers with products that use solid and waste fuels for environmentally clean power generation. Ahlstrom Pyropower, Inc., headquartered in San Diego, is part of the A. Ahlstrom Corporation of Helsinki, Finland. Ahlstrom Pyropowers San Diego operations include Pyropower Corporation and Ahlstrom Development Corporation. Ahlstrom Pyropwer, through Ahlstrom Boilers located in Varkaus, Finland, Pyropower Corporation and Ahlstrom Pyropower K.K. located in Kobe, Japan supplies AHLSTROM PYROFLOW circulating fluidized bed (CFB) boilers and other boilers for industrial, process and utility customers. There are currently over 100 Pyroflow CFBs in operation or under construction in more than a dozen countries. Pyroflow CFBs are recognized worldwide for their ability to burn a wide range of fuels cleanly and efficiently. Ahlstrom Development Corporation, a sister company of Pyropower, provides the full range of partnership capabilities required for the development of complex energy projects worldwide. Additional activity areas include the pulp and paper industry. The company has an interest in over $1 billion of equity projects, representing 520 megawatts of power. Ahlstrom Development Corporation is represented in the United Kingdom by Ahlstrom Pyropower Development, Ltd., located in London. Ahlstrom Capital Corporation, located in San Diego and Atlanta, supports the business activities of Ahlstroms US subsidiaries, including Ahlstrom Machinery and Kamyr Corporation. A.Ahlstrom Corporation is a multinational industrial corporation with subsidiaries in sixteen countries. Ahlstrom employs over 11,000 persons. Annual sales for 1992 were over $2 billion. EXERCISES Exercise 1. : to design, to affiliate, to approve, to branch out, to found, brand, with the exception, core, equity, worth, in conformity, emergency, a staff, joint ventures 1. . . . is a trademark or a tradename, as well as a particular kind of goods with such a mark, e.g.: an excellent . . . of coffee.

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2. The Oxford University Press was . . . in 1478. 3. A . . . is a group of assistants working together under a manager or head. 4. He . . . for a large firm of carpet manufacturers. 5. I have followed all his essays with . . . of his last. 6. . . . are those that have been set up with the stocks of two or more different countries. 7. The College is . . . to the University. 8. He is English to the . . . . 9. The design and arrangements of establishing a new enterprise have been already . . . . 10. The car-making company . . . into the selling firm and carrental and repairing business. 11. The delivery was carried out . . . with the International Regulations. 12. Its hardly . . . troubling about. 13. This exit is to be used only in . . . . 14. . . . are ordinary stocks and shares not bearing fixed interest. Exercise 2. .. A. : to penetrate, to enter, to found, to accomplish, to except, to introduce, to encourage, to aid, to equip, to fail, to conform, to apply, to procure, probable, humid, residential, to install, to collaborate, capable, to commit, to boil, to subsidize, to extend, to invent B. : historical, relative, occasional, final, joint, clean, efficient Exercise 3. : , , , , , , , , , , , , , , ( ), -, , , ( ), , , , , , , , , , , , , ,

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, , , , , Exercise 4. , . 1. 2. 3. 4. 5. The rising sun was hidden by the clouds. The decorated fir-tree looked very beautiful. The film released last month was a great success. The school being built in our street will be a sports school. This canal supplying the whole area with water for irrigation was built in 1938. 6. These men waiting for the director have been sitting here for a long time. 7. The concert planned for tonight must be postponed. 8. Receiving the telegram they immediately rang him up. 9. Having been weighed and registered first, our luggage was taken to the plane. 10. Coming to the station they saw that their train was about to leave. 11. Not having learnt the time of departure, we missed the train. 12. Being shown the way, we easily found the cottage. 13. Pressed for time, I couldnt even have breakfast. 14. Generally speaking his last novel is far from being good. 15. He looked at me as if trying to recognize me. Exercise 5. , . 1. I saw her walking along the embankment. 2. I found him working in the laboratory. 3. I watched them packing their things. 4. I heard the alarm clock ringing. 5. Hed like to see our car being repaired. 6. Have you had your computer connected yet? 7. My watch keeps good time at last. I have had it repaired. 8. She is going to get her hair dyed. 9. The man was seen climbing the ladder. 10. The cat was caught stealing meat. 11. They were seen talking near the reading-room. 12. The room being dark, we couldnt see anything. 13. There being no news of his arrival, I began to worry.

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14. The telephone being out of order, I had to go out. 15. The girl sat still, with her eyes fixed on the fire. 16. The room at the hotel having been booked beforehand, we had no reason to worry. Exercise 6. , one: 1. Can you lend me a pen? - Im sorry, I havent got one. 2. Is there a chemists near here? Yes, theres one at the end of the street. 3. Which house is yours? This one or that one? 4. Which hotel did you stay at? The one near the station. 5. I dont like the black coat but I like the brown one. 6. These chocolates are nice. Would you like one? 7. My shoes are very old. I need some new ones. 8. The cup is dirty. Can I have a clean one? 9. Im going to sell my car and to buy a new one. 10. Dont buy those apples. Buy the other ones. 11. Why do we always go to the same restaurant? Lets go to another one.

UNIT 8. ACCOUNTING IN THE MODERN WORLD Vocabulary List 1. 2. 3. 4. 5. accounting a society an enterprise a report to aid -

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6. an income 7. a tax 8. a return 9. to pass a budget 10. to deal with 11. further 12. a concern 13. an area that is of immediate concern to each of us 14. to evaluate 15. to apply for 16. to open a charge account 17. crude 18. livelihood 19. sophisticated 20. a treatise 21. a double-entry 22. durable 23. supervision 24. force 25. an absentee 26. to adapt 27. to respond to respond to to respond with 28. securities Text

, - , , , - , , , , , , , , , , (), () ,

Accounting plays an important role in our modern, complex society. Its main function is to communicate financial information about enterprises, individuals, nations, and the world. Business enterprises use accounting reports to aid management in various ways, and to give investors information about the results of enterprise operations. Individuals use income tax returns, a type of accounting report, to communicate information to the government. On the national level, each year the Congress of the United States passes a budget (another type of accounting report) that deals with the operations of the federal

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government. The United Nations also gathers and uses accounting information on a worldwide level in its operations. To go further into an area that is of immediate concern to each of us, let us look more closely at the importance of financial information to individuals. Financial data are important not only at income tax time, but also in evaluating alternative financial opportunities, such as decisions to invest in securities or property. In addition, whenever someone applies for credit whether buying a car, opening a charge account, or getting a student loan he has to provide financial information. Example. An application for undergraduate financial aid at a university asks for the following: applicants income per academic year applicants expenses per academic year applicants assets (savings, stocks, investments, etc.) applicants liabilities (loans, etc.) monthly salary of applicant, spouse, parents. The importance of financial information, provided through accounting, can be easily demonstrated and will become more apparent as this text unfolds. But now we turn to the questions: how did accounting reach this position of importance? And what is the place of accounting in our society? Accounting has developed in response to changes in mans economic life. The earliest accounting reports were in the form of crude records of those agricultural goods brought into village temples to provide a livelihood for the priests and military protectors of the village. The development of trade between villages, and, later, between countries gave rise to more sophisticated systems of accounting records. The first treatise in double-entry bookkeeping, written in 1494 by the Italian monk Fr. Luca Paciolo, described the accounting that was used by the busy Italian merchants of the fifteenth century. The accounting of Paciolos day, which was designed to be used by the owner-manager of the small enterprise, has been surprisingly durable. It remains the foundation of modern accounting. It was and is effective in business where the owner can have close personal supervision over company operations. Today there are many small business firms, but the principal force in economic life is the large corporation with absentee owners. A relatively simple accounting system is not adequate for the large company. Accounting has had to adapt to this major force in twentieth-century economic life.

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EXERCISES Exercise 1. - to evaluate, to deal with, to pass a bill, to apply for, to open a charge account, to adapt, to respond, 1. The school has only been opened for six months, so its hard _______ its success. 2. She _________ a full-time job as an English teacher. 3. They ________ an old engine to fit his boat. 4. Next year congress _________ giving banks permission to open branches overseas. 5. I ____________ with her 20 years ago. 6. We __________ with a limousine service. 7. She still _________ to my letter. 8. He _________ the injured man. 9. He _________ my suggestion with a laugh. Exercise 2. function, communication, financial information, individual, nation, investor, result, budget, alternative, protector, adequate Exercise 3. , : function, communication, financial, information, nation, account, various, investor, operation, immediate, evaluating, decision, response, to change, agriculture, surprisingly, effective, supervision, absentee, to adapt Exercise 4. 1. Most economic doctrines entailed changes in human society, which brought a discomfort to many people and challenges to tradition. 2. And like everything else it responds to the forces of supply and demand.

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4. 5. 6. 7. 8. 9.

1. In economic terms a market price is the amount of money that a willing buyer will pay a willing seller for a given good or service. A market economy uses a variety of financial instruments in making transactions. People spend their cash on goods and services they need or want. A modern economy is based on the use of money. Central banks usually print only enough currency to satisfy the everyday needs of businesses and consumers. The economy starts to function when someone spends money for something. We know certainly that there is a flow of money from households to governments in the form of taxes.

Exercise 5. 1. Market forces play a part in determining how much a person is paid for his work. a. , . b. , . c. . d. , , . e. , .

2. Market makes no moral judgments in who gets paid how much.

3. We know that the economies vary primarily in the degree of state intervention. 4. The real question concerns the proper means of achieving it.

5. A person with university degree, or 16years of education will over a lifetime earn more twice that someone with only eight years of education will earn.

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6. Laws, for example taxation system, can influence income and reduce extremes of wealth. 7. An individual worker may not know the true market value of his services to an employer.

f. , . g. 16- , . h. , , . i. , .

8. During the transitional period the postcommunist countries face both the fall in state-sector employment and general unemployment. 9. Unfortunately, the wealth created by government spending will fully compensate for the wealth destroyed by the taxes imposed to pay for that spending.

Exercise 6. 1. 2. 3. 4. 5. 6. 7. 8. 9. Some people can walk all day without feeling tired. Children are fond of being read to. Iron is found by digging in the earth. She was punished for having struck him. They remembered having been locked up in the room. He was tired of being constantly scolded for nothing. Sleeping with wide open windows is good for ones health. You must return books in the library in time without being reminded. Excuse me for having been rude.

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Exercise 7. 1. Why do you avoid (to see) me? 2. He tried to avoid (to see)? 3. We insist on (to send) him there at once. 4. Do you mind (to examine) the first? 5. I was annoyed at (to interrupt) every other moment. 6. In (to discuss) the problem they touched upon some very interesting items. 7. Excuse me for (to give) you so much trouble. 8. I dont remember (to ask) this question. 9. The boys were punished for (to break) the window.

UNIT 9. ACCOUNTING AS A COMMUNICATION PROCESS Vocabulary List 1. to convey 2. to invent 3. to define 4. a search ,, , , , ,

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5. a means 6. a limitation 7. circumstances 8. entire 9. rapidity 10. to transmit 11. intricate 12. emphasis(pl. es) 13. art 14. appropriate 15. to some extent 16. to master 17. creatively 18. to draw 19. to guard(against)

, , , , , , ,, , , , , , ,, , , ,

Text Accounting should be thought of as a communication process. It employs a set of symbols and words to convey information about financial matters. The symbols and words used in accounting were invented and defined by individuals in their search for means of communicating such information. Accounting is a human instrument and has many human limitations; but, in addition, it has limitations of the kind that characterize communication systems in general. Accounting is a dynamic communication process, faced with changing circumstances and changing needs on the part of those whom accounting serves. In fact, in this time of rapid technological and social change in our entire society, accounting is changing with great rapidity. Like all communication processes, accounting deals with people. It was developed in response to the needs of people. People receive accounting information and use it. Accounting has technical aspects, some of them quite intricate, but its focus is on people and their needs. Since it is a communication device, there is an emphasis in accounting on the ability to express and convey information. Therefore, a mastery of the ordinary tools of communication, speech and writing, is basic to a successful application of the accountants art. Accounting often has been called the language of business. This is appropriate, since it emphasis the communication aspects of accounting. The

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description has another important aspect, for accounting has many characteristics of a language. To some extent, accounting has a specialized vocabulary, and there are certain rules concerning the manipulation of this vocabulary. Accounting is learned in much the same way as one learns a language: the vocabulary and its rules are learned and practiced, the language is used as much as possible, and finally, after one has mastered the elements, the language can be used creatively. The analogy must not be carried too far, for the terms used in accounting are terms that are drawn from everyday usage and that must be understandable to the public. Accounts must communicate to the public in terms the public can understand, and they always must guard against the development of a vocabulary that is so specialized that they can talk only to other accountants. EXERCISES Exercise 1. - to convey, to invent, to define, to transmit, to master, to draw, to guard, to emphasize, to face 1. This book attempts _________ the position of the national government in local affairs. 2. He __________ a hundred reasons why he couldnt go. 3. It takes years _________ a new language. 4. Your luggage _________ by helicopter from the airport to your hotel. 5. They ___________ water from the well. 6. The information _______from one computer to another by a telephone line. 7. You should wash your hands when preparing food, __________ against spreading infection. 8. Id like _________ that we are ready to meet the management at any time. 9. The new administration ___________ the difficult task of rebuilding the countrys economy. Exercise 2. 1. Accounting plays an important role in our modern complex society. 2. Its main function is to communicate financial information about enterprises, individuals, nations and the world.

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3. The United Nations also gathers and uses accounting information on a worldwide level in its operations. 4. Accounting has developed in response to changes in mans economic life. 5. The earliest accounting reports were in the form of crude records of agricultural goods. 6. A relatively simple accounting system is not adequate for the large company. 7. The development of trade between villages and, later, between countries gave rise to more sophisticated systems of accounting records. 8. Financial data are important not only at income tax time. 9. If someone applies for credit he has to provide financial information. Exercise 3. , . . 1. People accept money in exchange 2. The progress made in computer technology has led to new forms . 3. Commercial banks are designed to make a profit a. of cashless payments b. of gold and foreign currencies c. at the Bank d. by acquiring banks in other countries 4. The Bank of England controls the countrys reserves 5. The major banks of the world have established extensive international net 6. The discount houses have borrowing facilities 7 Foreign exchange markets can also be affected 8. There are different kinds 9. Travellers cheques can be paid Exercise 4. Test , , e. for goods and services f. for their stockholders operations . g. by official operations h. of bank accounts i. for in cash or debited to your

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competition, private, economic, anarchy of production, chaotically, central direction, wealth, trade, goods, individuals, to produce, to invest, arbitrarily, private ownership, essential for, free market, within limits Individual capitalists or firms are free ___ __________ to do what they like to _________ what they like, to invest their capital where and how they like. The term _______ __ ________has often been used to describe capitalism. It does not necessarily mean that the system operates __________ and _________, only it goes without ________ _________. Capitalism is an __________ system. It is based on the ________ _________ of wealth and the _________ _________. Capital or __________ which is used for the production of _______ and _________ is owned by ___________ and not by the state. ___________ property and ___________ are _________ ____ capitalism. Exercise 5. , 1. Be it so! 2. Never before and never since, have I known such peace, such a sense of happiness. 3. So beautifully did she sing that the audience burst into applause. 4. Here comes my brother. 5. Here he is! 6. Had there been no storm, our flight wouldnt have been postponed. 7. Had we hurried, we shouldnt have missed the bus. 8. But for his help she would have fallen behind the group. He proved to be a true friend. 9. Hardly had I finished my translation when the bell rang. 10. Scarcely had he time to finish his dinner. 11. The above law does hold. 12. Hard as it is we must do this work.

Appendix 1 UNIT 1

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only consequently originally even already

supposedly locally globally , id est in any case (anyway)

UNIT 2 in order to therefore essentially extremely normally instantly , , , for example although(though) however surprisingly since

UNIT 3 on the one hand on the other hand according to accordingly in accordance with likely largely c , UNIT 4 virtually easily , usually carefully finally relatively thus against

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even though almost readily alternatively through closely at the same time

, ,

in the same way because of always completely artificially probably

UNIT 5 also at times until notoriously , genuinely still frequently ,

UNIT 6 inevitably vitally , particularly primarily , ; due to , - substantially , in the long run gradually steadily firstly , - forever for a large scale except (of) , hence as well as obviously rather than in spite of hence recently in relative terms secondly -

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UNIT 7 occasionally historically despite of probably so far for instance thoroughly ,

UNIT 8 in various ways on the national level in response to whenever on a worldwide level

UNIT 9 in addition creatively in fact in general to some extent

Appendix 2

The Synonyms

The Antonyms

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UNIT to obtain to require to accept to promote to purchase to require needs purpose different to get to demand to take to advance to acquire to demand/claim/ask requirements aim, target, object, goal various

1 to demand to fail to sell to supply to succeed to buy

UNIT 2 to provide labour profit wages similar to supply work interest salary, fee like to save to borrow to decrease retail employer necessities to spend to lend to increase wholesale employee luxuries

UNIT 3

expenses commodities consumer desire to diminish to expect to achieve to believe

expenditure, costs, price goods customer wish/want/willingness to fall, decrease to wait to get, obtain to consider

to fall particular quantity employment less to allow with

to rise general quality unemployment more to forbid without

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UNIT 4 domestic link abroad surplus to push up to offer home connection overseas excess to rise/lift/increase to suggest domestic together appearance worse low certain outside to push foreign separately disappearance better high uncertain inside to pull

UNIT 5 postponement to postpone to influence to blame to establish to organize to run a bank delay to put off to affect to access to set up, to found to manage to manage a bank UNIT 6 to emit to affect to decline to issue to influence to decrease/diminish/ reduce/fall to grow to increase casualty accident contamination pollution UNIT 7 to found to establish to design to plan, arrange, project core center to aid to help to keep doing to continue, go on to underwrite to insure to enter despite of to leave taking into account entrance exit it wont work it will work well to keep ahead to grow to go on to construct exporter to fall behind to diminish to stop to destroy importer cause to loan failure result to contribute success

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to procure to install for instance rival seller capability

to obtain, get to place, fix, set up for example competitor vendor power, capacity UNIT 8

impossible main income to evaluate securities apparent to reach complicated further

essential major, principal profit to estimate Treasury Bond clear to get sophisticated more, in addition UNIT 9

further following

closer followed by

rapid entire intricate needs to some extent Appendix 3

quick, fast whole, total complicated demands to some degree

rapid like specialized

slow unlike general

EXERCISES Translate the sentences from the following exercises using the words from the appendices given above to each of the lessons. UNIT 1

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1. There are two things to aim at in life: first, to get what you want, and, after that, to enjoy it. Only the wisiest of mankind achieve the second. (Swift) 2. The aim of the British trade fair is to sell British goods to our buyers and to enable the exhibitors to establish valuable contracts in a market with immense potentials for the future. 3. He does his best to achieve his purpose. 4. The tastes are quite different. 5. The effects of this disease are various in different cases. 6. I obtained from three cultivated Englishmen at different times three diverse pronunciations of a single word. 7. He demanded compensation for the damage done. 8. His apology was not accepted. 9. Its every man duty to advance himself in life by every legitimate means; it is the duty and the pleasure of every good man to promote those who show themselves deserving of being promoted. (Green) 10.Better buy than borrow. 11.The necessities of life are bought, the luxuries are purchased. UNIT 2 1. Payday (usually Friday) will bring employees their weekly wage (some labourers get daily wages); engineers, teachers, managers and some others receive a monthly (or less often quarterly) salary for their services. 2. The incomes of private doctors and lawyers come from the fees paid by their patients and clients, although doctors and lawyers may be salaried if employed on a regular basis by the state or a private establishment. 3. Writers, composers, playwrights are paid royalties, i.e. a percentage of the money derived from the sale of a book, a song, etc., a share of the profits from a stage production. 4. Commercial agents are paid a commission (a percentage of the value of the goods sold). 5. My friend is like me, our habits are similar. 6. Profit means material or spiritual benefit, advantage; a valuable result or consequence derived from something. 7. The lift broke down, and we had to walk up to the tenth floor. 8. Wholesale means selling of goods in large quantities to shopkeepers, for sale to the general public, but not for resale.

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UNIT 3 1. Cost means the price paid or to be paid for a thing to purchase it; the cost of a thing is all that has been expended upon it, whether in production, processing, transportation. 2. The price of this article is below the cost of its manufacture. 3. The expense of the journey was more than the contemplated cost. 4. I send you at your desire a list of all the books available. 5. We have achieved all that we arranged to do. 6. I believe he has left the city. 7. It is not enough to have great qualities, one must make good use of them. 8. Quality without quantity is little thought of. 9. Employment is business or occupation provided for oneself or others. UNIT 4 1. Economic development and general policy of the country defines its domestic and foreign directions. 2. We accept your proposition because we see there is no alternative. 3. British Chambers of Commerce are desirous of doing all to push up trade between the East and the West, and they believe that these fairs will do much to make this increase possible and to make cement relationship which will be of lasting value. 4. Would you try that call again, please, Ive been connected to the wrong number. 5. Arrangements are being made to link up the two firms, so as to reduce the competition. 6. Brazil had a surplus of coffee last year. 7. Their shares value was affected by increasing in the exchange rate of the dollar. Guarantee of employment is uncertain in many countries. 8. Its quite uncertain that everyone will be guaranteed the most suitable job after the graduation. 9. Never refuse a good offer. UNIT 5 1. Bad weather conditions were the cause of the planes delay.

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2. Dont put off making the arrangements until the last minute. 3. A special committee has been set up to examine the details of the suggestion. 4. They blamed their intermediary for the failure of the talks. UNIT 6 1. Do you think such a young man can succeed in this skilled trade without any experience? 2. Your plan seems to have failed of its purpose. 3. His difficulties issue from his lack of knowledge. 4. Several automobile accidents occurred yesterday but no casualties have been reported. 5. His father used to say that one secret of his success in business was that he always kept one step ahead of public demand. 6. If your payments of rent fall behind, youll be asked to leave. 7. I cant go like this, Ive got to get help. UNIT 7 1. Once you have reached informal agreement, you should enter into a contract with the other party. 2. I think I know where I can procure that rare book for you. 3. The dictionary is designed for foreign students. 4. We need a new contract to keep the firm going for the rest of the year. 5. The new equipment is to be installed within a month. 6. Despite of the weather the party will take place. 7. I nearly failed the negotiations but our export manager came to my aid and weve managed to come to the conclusion. 8. We will need some capital to establish a new subsidiary. UNIT 8 1. Being reserved is said to be an essential part of the English character. 2. He majored in economics. 3. They estimated that it would take a month to design and carry out the plan. 4. Securities (or Treasury Bonds) are documents or certificates showing ownership of property for money lent to a government. 5. It was apparent to all of us that to reach the station would be impossible until the morning. 6. We need go no further into the matter, need make no more inquiries.

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7. We decided to go further in spite of the darkness. 8. On closer examination I found she told the truth. UNIT 9 1. 2. 3. 4. 5. 6. 7. The fast train was exchanged for a local one. He wants to get rich quick. She was in entire ignorance of what was being done. I waited for her a whole half hour. Our expenses reached a total of $ 20. Theres nothing as good like walking as a means of keeping fit. After his first degree he got a lot of specialized knowledge on the subject. 8. This piece of machinery is so intricate, that it is very complicated for us to follow or understand it. 9. She walked first, then her sister followed by me.

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