BGF Középfok 2010 Ősz

KZPFOK ZLETI NYELVVIZSGA
FELKSZT ANYAG
2010. TB
1
CONTENTS
Articles and Discussion . 3

Tests 1-8 . 14
Enquiry . 37
Offer ......... 40
Order ......... 42
Complaint . 44
Memo . 46
Situations ......... 48
Sample Dialogues . 54
Abbreviations . 60
Prepositions . 63
Topics . 70
2
1. Labour market
BAE to cut 946 UK jobs
BAE Systems has sparked fears of heavy job losses "With the forthcoming defence review these cuts may
across the UK defence industry after announcing that it be the tip of the iceberg but knee jerk reactions from
will cut up to 946 positions across its UK workforce. employers could make things even worse. Cuts are
The cutbacks will mostly hit its military aircraft being demanded before the shape of the defence
division, which makes parts for planes including the industry has been decided. The defence industry will
Tornado, Harrier jump jet and Hawk advanced jet suffer more than necessary, if employers make poor
trainer. judgement calls," said CSEU general secretary, Hugh
Almost 450 jobs are at risk at two sites in Lancashire Scullion.
Samlesbury and Warton with more than 200 Scullion vowed to resist any compulsory redundancies,
threatened at BAE's plant in Brough, Yorkshire. Jobs and warned that unions would "negotiate nationally"
are also going at Farnborough and at Chadderton, with BAE if workers at individual plants could not
Oldham, where the Lancaster bomber was build. mitigate the planned losses themselves.
BAE said that it had started consulting with workers Skills in the defence industry could be transferred to
about 740 job cuts across the five plants. Union leaders, other areas of manufacturing, Scullion added, saying:
though, warned that another 206 jobs are also being lost "The government is risking destroying the UK's
across BAE's integrated system technologies division, manufacturing base with ideologically driven cuts."
called Insyte. BAE has cut thousands of jobs over the last two years,
In July, BAE warned that it faced a "challenging including 230 at its submarine shipyard in Barrow-in-
trading environment" as governments around the world Furness, 500 at its Land Systems division, and
look to cut spending and demand efficiency savings. hundreds more at various sites including Guildford,
The Confederation of Shipbuilding and Engineering Leeds, Telford, Newcastle, and Leicester.
Unions (CSEU) said today, though, that it was a
mistake to start laying off staff before the UK Guardian 2010
government has published its strategic review of
defence and security, due this autumn.
1. How would you define the labour market?
2. Why is a free economy practically always characterized by unemployment?
3. What is the normal rate of unemployment?
4. What possible consequences does unemployment have?
5. How are GDP and unemployment related?
3
2. Globalisation
Sarkozy raps globalised economy
French President Nicolas Sarkozy has warned of political and social unrest unless there
is greater regulation of the globalised economy.
He argued that the current system of "speculation and The French president's comments were backed by his
dumping" cannot continue. "We have to overhaul Brazilian counterpart Luiz Inacio Lula da Silva, who
everything," he said. He called for a larger role for called for a clampdown on financial speculation and
social institutions in financial regulation. The tax havens. "We cannot afford to live with a financial
president was speaking in Geneva at the invitation of system that speculates," Lula said. "As the leader of a
the International Labour Organization (ILO). developing country, I hope that a new international
"Regulation of globalisation is the central issue," he order that rewards production and not speculation will
argued. "Either we have reason or we will have revolt. emerge from the crisis." The ILO itself warned that the
Either we have justice or we will have violence. Either current economic downturn will affect the global jobs
we have reasonable protection or we will have market for years to come. "Even if the signs of
protectionism. "It is irresponsible to believe that the recovery are confirmed, and even if there is a real
financial markets can continue to impose their recovery by the end of the year or early next year, we
obsession with short-term profit on the entire global will need still several years before the jobs market goes
economy, and on society," he added. Earlier on back to the pre-crisis situation," said Raymond Torres,
Monday, the US government outlined plans that will director of the Institute for Labour Studies at the
lead to tighter regulation of the biggest financial organisation. The process normally takes four to five
institutions and a new framework for consumer and years, he said. (BBC)
investor protection.
1. How would you define globalization?
2. What are the characteristic features of globalization?
3. Discuss the argument for and against globalization.
Arguments for Arguments against
4
3. REAIL TRADE, WHOLESALE TRADE
Retailing
1. How would you define retailing?
2. List five functions of the retailer.
a,
b,
c,
d,
e,
3. Describe the major forms of retailing.
4. If you had a shop what marketing tools would you use to attract consumers?
Wholesaling
5. What are the most important functions of the wholesaler?
a,
b,
c,
6. What services can the wholesaler provide?
7. What types of wholesalers can you mention?
5
Tesco bids to increase dominance of Asian market with
basket of Carrefour stores
Tesco, already the biggest supermarket retailer in Thailand Tesco has particularly ambitious plans for China, where it
and Malaysia, wants to add 61 Carrefour stores to its intends to open 80 vast shopping malls in the country by
Asian portfolio 2016. Earlier this year chief executive Sir Terry Leahy
Tesco has put in a bid for more than 60 stores in Thailand, said: "We have continued to invest through the downturn
Malaysia and Singapore, currently owned by its French to ensure that we will be in an even stronger position as
rival Carrefour, as part of its strategy to conquer Asia and the economies recover."
cement its position as a global force in supermarket The deadline for first bids for the Carrefour stores closed
retailing. Tesco is understood to be among about 10 groups to have
The French hypermarket group put the stores on the tabled initial bids. Others include the Japanese Aeon
market after a strategic decision to pull out of Asian group, Dairy Farm of Singapore and the French Casino
countries where it stood no chance of becoming market group.
leader. Tesco is already the market leader in Thailand and The stores are expected to fetch about $1bn (647m) and
Malaysia, and more than a third of its shopfloor space is in Carrefour may decide to sell them piecemeal, if single-
Asia. store or country sales achieve a better price.
The Cheshunt-based retail group has operated in Asia for The portfolio consists of 40 supermarkets in Thailand, 19
more than a decade. It has more than 1,230 shops in Asia in Malaysia and two in Singapore.
and expects to open another 270 by February 2011. It Tesco currently has 571 stores in Thailand, including 110
views the region as "a significant long-term opportunity" hypermarkets, and 29 shops in Malaysia, of which 28 are
even though its like-for-like sales in Thailand, Malaysia hypermarkets. It plans to open another 50 outlets in the
and Japan went into reverse last year as a result of the two countries by March 2011. It currently has no presence
economic downturn and local political problems in in Singapore. (Guardian)
Thailand.
The Commercial Transaction
1. List the most important types of business letters usually needed in a commercial transaction?
2. How can the buyer make payment to the seller?
Means
Methods
3. Why is insurance important?
4. What are basic means of transportation?
6
4. Marketing
Loyalty fails to pull in shoppers
Supermarkets have failed to make a major impact on "Retailers are collecting huge amounts of data and
shopping behaviour through the introduction of loyalty once their IT systems are fine-tuned, they will be able
schemes, according to exclusive research commissioned develop closely targeted offers. In this way people may
by Marketing. not even realise their habits are being changed through the
Although six out of ten adults now have some form of use of cards," said Davies.
retail loyalty card, two-thirds said they do not visit the A majority of those questioned said they expected to
stores that issued their cards any more often and tend to receive more direct mail when they signed for loyalty
spend about the same amount as before. schemes, although around half said they were concerned
The survey confirmed the growth in popularity of by shops collecting detailed information about them.
retail loyalty schemes since Tesco launched Clubcard in In terms of building stronger, more caring brands, the
February 1995. It found that 61% of women and 56% of cards seem to be a success.
men hold cards such as Sainsbury's Reward card, Safe- Most said that they felt shops they visited regularly are
way's ABC card or Shell's Smart card. While 59% of more interested in them as customers compared with two
holders use them every time they go shopping. years ago and that shops were better at handling
Steve Davies, retail analyst at Corporate Intelligence, complaints.
said that even if retailers were not successful in changing The appeal of loyalty schemes also seems to bridge class
shoppers' habits, the information collected on customers divides. Half of DEs hold cards and two-thirds of ABs.
will prove invaluable. (Text: Marketing)
1. What is the difference between selling and marketing?
2. Why is it important to carry out marketing research?
3. What are the basic methods of market research?
4. What are the elements of the promotion mix?
5. What are the differences between advertising and sales promotion?
6. What are the most important means of sales promotion?
7. Comment on the advantages and disadvantages of sales promotion.
7
5. Mergers and Acquisitions
Superbrands on retail's agenda
Safeway and Asda may have publicly gone cold on the whole swathes of shoppers with a more powerful value-
idea of a merger, but it's increasingly clear that in an era of for-money message.
retail 'super-brands' both chains are going to have to Raymond Perrier, brand evaluation director at
decide whether to fight at the quality or value end of the consultancy InterBrand, said the merger would have
supermarket industry. placed Asda at the top of the pile.
Despite spending 50m a year on advertising their "It would give them a powerful opportunity to
brands, both companies felt so committed to a merger that reinforce what they are already doing well on a smaller
seats on the board had already been decided. More scale with the brand.
crucially, it had been agreed that the combined company "Asda is already about value for money, but through
would be called Asda. the merger they could say to customers 'now we are really
Although this particular deal is now dead in the water, big we can give you even better value for money'," said
most observers believe a similar merger is highly likely. Perrier.
Of the two, Asda is undoubtedly in the stronger Though an Asda/Safeway alliance would drastically
position. Not only is its business growing more rapidly, shift the balance of power at the top end of the grocery
but its larger stores have provided the flexibility for market, smaller players would suffer and chains such as
expansion into profitable markets such as clothing. Somerfield and Yorkshire based Morrisons would come
Combining the two chains would have pushed Tesco under increasing pressure.
and Sainsbury's into second and third place in terms of The troubled Kwik Save discount chain would almost
market share. certainly be hit hardest by an Asda able to offer lower
It would also have created a marketing leviathan under prices through greater economies of scale.
the Asda brand. This would have had the muscle to reach
1. What does internal/external expansion mean?
2. What is the difference between an acquisition and a merger?
3. What is the difference between horizontal and vertical mergers?
4. How is a joint venture different form an acquisition or merger?
5. Sum up the relative advantages and disadvantages of a merger from the companies point of view.
Advantages Drawbacks
8
6. Company Structure
Task 1. Take a look at the company chart below and put the following units in the
appropriate box.
Research and Development, Personnel, Northern Region, Southern Region, Production, Market
Research, Board of Directors with a Chairman (GB) or President (US), Marketing,
Sales, Managing Director GB or Chief Executive Officer (CEO; USA), Finance, Advertising and
Promotions, Financial Management, Accounting.
Task 2. Discuss the responsibilities/functions of each unit/department.
Task 3. Discuss the structure of a company or organisation of your own choice (the company
you work for or the college you attend). Use the following phrases.
consists of, is made up of, is divided into, includes, to be in charge of, to be responsible for
1.
2.
3. 4. 5. 6. 7.
8. 9. 10.
11. 12.
13. 14.
9
7. Company Forms
Read the following articles and sum up the contents of each article in one sentence.
Takeover talk boost BC Stock Humet gets US approval CBA targets small shops
Shares of petrochemical company Trading in the shares of dietary Aiming to consolidate many of the
BorsodChem Rt. soared 18.7% last supplement maker Humet Rt. was nations small food retailers under
week and nearly broke the Ft6,000 suspended last Friday following an its own distribution chain, CBA Kft.
barrier after reports that one of its announcement that the company recently launched the Target Retail
owners, Austrian Vienna Capital had received crucial approval from Chain.
Partners (VPC), may make a public U.S. authorities to launch its According to Ervin Imre, CBA
offering for the companys shares. product on the American market. Kfts sales director, the Target
Together with its fully-owned One of the smallest listed Chain is designed for shops with
subsidiary, CE Oil and Gas AG, companies on the Budapest Stock under 200 square meters of retail
VCP currently own 16.8% of Exchange, Humet makes a single space. He said stores that join the
BorsodChem, and a 6% stake in but unique product, a dietary CBA distribution network would
Petrochemical company TVK Rt. supplement. benefit from the chains complex
BorsodChems shares fell to a new To finance the cost of the necessary marketing package, including a
52-week low of Ft5,050 last clinical tests for the Food and Drug Target logo, employee uniforms,
Wednesday, continuing a trend Administrations approval, Humet and a monthly promotional
which began at the AGM on Jan 24, has so far raised over $1 million publication with at least 30 sales
when most of the board was through a private placement. The items from different product groups.
removed. Trading in BorsodChem next capital injection is scheduled He added that monthly sales offered
was suspended last Thursday, but for May. by the group should considerably
was restarted on Friday. increase shop turnover.
1. What kind of business organisations were mentioned in the articles?
2. What other form of businesses can you mention?
3. What is the difference between a limited company and a partnership.
4. What kind of documents do you have to submit if you want to start a limited company?
a,
b,
5. What is the difference between a private limited and a public limited company?
6. What financial statement do public limited companies have to publish?

a,
b,
c,
7. What special forms of businesses can you mention?
10
8. International Trade
Europe accused of protectionism
Europe has been accused of going back on world leaders' Polish candle-makers and estimate that the sanction,
pledge to avoid exacerbating the recession by throwing up which will stay in place for five years, will cost retailers
new barriers against international trade, just a month after up to 10m.
the London G20 summit. The EU has also imposed temporary "anti-dumping"
Brussels will slap tariffs of up to 60% on imports of cut- taxes, which are meant to protect against cut-price
price Chinese candles this month, in one of four measures subsidised imports, on three other products: Chinese wire,
identified by the World Bank president, Robert Zoellick, iron and steel pipes, and aluminium foil.
on a blacklist of anti-free trade decisions taken since the Gary Campkin, international spokesman for the CBI
summit. employers group, said firms had become increasingly
Haunted by the example of the 1930s, when leading worried about creeping protectionism around the world.
powers became locked in a tit-for-tat protectionist battle "We hosted the G20 business summit and the message
that is widely blamed for precipitating the Great - from all the businesses was that we are concerned about
Depression, world leaders at the G20 in London promised protectionism," he said.
to "refrain from raising new barriers to investment or to A new international trade agreement has been stalled for
free trade in goods and services" and "rectify promptly almost a year, since talks in the long-running Doha Round
any such measures". But the World Bank believes Europe of World Trade Organisation negotiations broke down
is among several G20 members, including the US, Russia acrimoniously last summer. Leaders at the G20 expressed
and India, which have taken trade-restricting steps since enthusiasm for resuscitating the talks, but so far there has
then. been little movement among trade negotiators at the
Britain's retailers are furious about the import tax on WTO's headquarters in Geneva, Armenia, Brazil and
candles, which will cost up to 60% of the value of the China.
products. They say the measure protects German and
Discuss the functions of the following international organizations.
World Bank
IMF
WTO
OECD
11
9. The European Union
EU ministers support Iceland bid
The European Union has taken the first step towards accepting Iceland as part of the
27-member bloc.
EU foreign ministers meeting in Brussels have asked the he said. "But we'll take it one step at time and as you
European Commission to begin assessing the country's know there are other applications on the table as well," he
readiness for membership. Entry talks with Iceland, which added. "There is the Albanian one, although we are not
applied to join the EU on Thursday after being hit hard by quite there yet and there might be others. Enlargement
the global financial crisis, are expected to proceed fast. remains an important issue." The EU wants to reassure
But that could lead to frustration among other applicants Balkan states they will not be forgotten, as there is
in the Balkans. Seven countries from the region are concern that delays could fuel political instability.
currently waiting in the wings. Croatia and Turkey started But Albania, which applied to join in April, is still waiting
accession talks in 2005. for an answer because of uncertainty over the outcome of
Iceland applied to join the EU, trying to bolster its battered last month's election, which saw a narrow victory for the
economy and reassure foreign investors. As part of a club governing Democratic Party and allegations of fraud by
called the European Economic Area, this tiny island in the the opposition Socialists. Montenegro waited for five
North Atlantic already applies about two thirds of EU months before its application was handed to the European
laws. Icelanders can also travel without restrictions across Commission for an assessment. Meanwhile, entry talks
the EU. The bid is backed by other Nordic countries such with Croatia, Turkey and Macedonia are blocked because
as Sweden, which holds the EU's rotating six-month of rows with neighbours and widespread fears of
presidency. But Swedish Foreign Minister Carl Bildt expansion in Germany and other EU countries. Officials
denied on Monday that Iceland would get preferential say Iceland's hopes to join the bloc within three years are
treatment. "There's no fast-track for Iceland, but there's realistic, provided of course Icelanders themselves agree
obviously a rather shorter track for Iceland because they're in a referendum, and the latest poll shows they are evenly
already part of the single market and the Schengen Area," split.
1. Comment on the advantages and disadvantages of Hungarys accession to the EU?
advantages drawbacks
2. How can countries/companies/consumers benefit from the single currency.
countries:
companies:
consumers:
12
10. Environment
Business chiefs urge carbon curbs
A coalition of 99 companies is asking political leaders to set targets for cutting greenhouse gas emissions
and to establish a global carbon market.
Their blueprint for tackling climate change is being All major economies, including developing
handed to Japanese Prime Minister Yasuo Fukuda ones such as China and India, should be
ahead of next month's G8 summit in Japan. Companies included in the post-Kyoto deal, with richer
involved include Alcoa, British Airways (BA), countries committing to deeper and earlier
Deutsche Bank, EDF, Petrobras, Shell and Vattenfall. emissions reduction
They argue that cutting emissions must be made to Governments should aspire to halve global
carry economic advantages. The business leaders hope greenhouse gas emissions by 2050
their ideas will feed through the G8 into the series of Governments and businesses should urgently
UN climate meetings that are aiming to produce a explore bottom-up approaches to reducing
successor to the Kyoto Protocol when its current emissions
targets expire in 2012. Scientific and economic A global carbon trading system should be
evidence assembled by the Intergovermental Panel on established as soon as possible
Climate Change (IPCC) and the Stern Review mean, Emissions caps should be applied flexibly
they believe, that taking climate action now would be across industry, with some sectors allowed
prudent. "While recognising that there are still some leeway to preserve competitiveness.
uncertainties in the scientific and economic evidence "It's important that the business community
available, these CEOs conclude that a responsible risk demonstrates a desire to work with governments to
management approach to the issue requires political tackle the challenge that climate change represents,"
and business leaders to take action now," the document said BA CEO Willie Walsh. "But the report makes it
states. The companies involved span virtually every clear that business can't operate in a policy vacuum -
major industrial sector. Among the key we need strong leadership from governments." Some
recommendations are that: of the report's elements fall close to aims already
articulated by political leaders.
1. Discuss the most important environmental threats.
2. What is the greenhouse effect?
3. How does deforestation threaten the environment?
4. Why do overpopulation and waste accumulation pose environmental problems?
5. What is sustainable development?
6. What can businesses do to protect the environment?
7. What are some of the alternative energy resources
13
TEST 1
I. Match the expressions with the business definitions. There are TWO extra expressions
which you do not need to use.
policy, certificate of origin, marketing mix, legal tender, GDP, GNP, consular invoice
1. This term applies to those forms and quantities of money that must by law be accepted in
settlement of a debt.
2. The set of controllable marketing variables that the firm blends to produce the response it wants
in the target market.
3. The contract between the insured and the insurer.
4. The output of a country without income from abroad.
5. A document issued by the proper authorities which states that the specified goods were
produced or manufactured in a named country.
II. Complete each sentence with the correct form of the word in capital letters.
6. EMPLOY Supply in the labour market is represented by .

7. COMMERCE . banks provide a wide range of services to their
customers.
8. COMPARE You can use the annual percentage rate to make a ..
between two bank loan offers.
9. SELL Your company's products are not easily on our markets.
10. ADD Value .. Tax paid by firms on the cost of inputs is reclaimable.
III. Complete the following sentences with the missing prepositions.
Could you supply us (11). 200 bottles of Oasis shampoo?

You should not get involved (12) our company's finances.
I found it difficult to pay attention (13) .. the conference.
We were forced to sell the new shares (14) . a loss.
The new subsidiary is financially independent (15) ... the parent company.
IV. Rewrite the following sentences so that the meaning stays the same.
16. It's over 25 years since we founded the company.

We
17. It was a mistake to purchase the shares.

The shares ..
18. Apparently our field workers completed the market research project.
The market research project ..
14
19. Offering him a higher salary doesn't mean he will accept the job.
He won't ..
20. I'd like to issue a press release instead of waiting for the reporters.
I'd rather ..
V. What do the following abbreviations stand for?
21. GDP ..
22. AGM
23. R&D
24. CIF .
25. POS .
VI. Fill in the gaps in the sentences with one of the following words or expressions in the box.
You will not need two of the words/expressions.
also, before, although, both, according to, but, however, so that, after, despite, in addition,
in case
(26)...marketing and production share the same opinion about the need for a new design.
(27)., neither of them want to start production yet.
(28). investing nearly $14m in the company, it soon went bankrupt.
They bought up two Japanese companies last year. (29) .., they acquired several small
subsidiaries throughout Europe.
(30) sales are high this year, a significant fall is expected next year.
(31) . our records we have not yet received payment.
We are pleased to learn that you intend to increase the volume of you business with us (32)..
we are unfortunately unable to agree to you request for credit.
Please send us the replacements as soon as possible (33) .. we can complete our customers
orders.
I took my BA at Cambridge University and I (34). hold an MBA. (35).. joining
Infinty Inc., I had worked for Toys International as a marketing assistant.
VII. Which is the odd word out in each line?
36. partnership, merger, takeover, joint venture

37. loan, borrow, interest, research
38. gain, receive, promise, get
39. quotas, tariff, shares, protectionism
40. retailer, wholesaler, producer, jobber
15
TEST 2
GNP, GDP, claim, inflation, marketing strategy, balance of payments, market research
1. A demand for payment for a loss under the terms of the insurance contract.
2. This indicator records all the payments to other countries and the total amount received
from them for goods and services.
3. A rise in the price level of a country.
4. The value of all the goods and services produced by a country during a given year including
net income from abroad.
5. Investigating which customers are likely to buy a product or service and exactly how those
customers want the product or service to be, in terms of features, pricing, packaging,
distribution and after-sales services.
6. COMPLAIN Your was found unjustified.
7. REFER With .. to your letter, we are pleased to inform you that we have
been able to secure the vessel you asked for.
8. STRONG The company is ready to cut prices in order to .. its position in
the market.
9. COMPETE Our launched a new product in an effort to increase
market share.
10. THREAT The customer the supplier to cancel the order if the
shipment is delayed.
III. Choose the correct alternative.
11. We can offer you a quantity discount if you . for more than 100 pieces.
A) place an order for B) give an order to us C) place an order with D) submit an order for
us us us
12. He asked me .. to work for his company.
A) if I wanted B) do I want C) do I need D) whether I want
16
13. Mr Boregar is . new staff.
A) is in charge with B) is charged with C) is charged to D) is in charge of

recruiting recruiting recruit recruiting
14. I can .. you that there will be no further delays in the future.
A) assure B) insure C) ensure D) make sure
15. Our company car by the security guards last week.
A) is thought to be B) is thought to have C) was told to be D) is thought to be

stolen been stolen stolen stealed
16. Can you check the flights to other US states as well?

He asked me
17. Excuse me, could answer a few questions?

Excuse me, would you mind .
18. We couldn't win the contract because the tender was high.
If the tender ..
19. In my job I meet a lot of new people

My job involves .
20. Don't forget to send the requested samples!

Remember
21. Ltd.
22. Qty.
23. Incl.
24. FOB
25. WTO
17
VI. Complete the following sentences with the missing prepositions.
The companys current order book is (26). excess (27)..1 million pounds.
You should take (28) an additional policy covering you against accidental damage.
We have over 500 carpets (29) stock in our warehouse.
Prices are subject (30).. change as the market for raw materials is very unstable at present.
VII. Complete the sentences using the grammatically appropriate form of the verb
given.
31. The one-way fares now 15 % off regular fares. (discount)
32. I could to Oxford, but I went to Cambridge instead. (go)
33. The aim of every company must be profitably. (trade)
34. The other day he his chances of promotion when he argued with the MD. (ruin)
35. They ought the last instalment by Friday, but they didnt. (pay)
36. The latest forecast says that profits for the next three years (rise)
37. For the last two weeks no new proposals to the committee. (submit)
38. We a new telephone system last week. (install)
39. His secretary telephoned to say he late. (be)
40. Would you mind the list of participants at once, please? (fax)
18
TEST 3
market economy, public limited company, overheads, private limited company, bond, share, trade
mark
1. An organisation which sells shares to the general public through the Stock Exchange.
2. A fixed-interest security issued by the government or companies borrowing money from the
public.
3. When prices are set by the forces of demand and supply and not by state intervention.
4. A brand or part of a brand which is given legal protection.
5. The expenses of running a business, especially those fixed costs that cannot be related to
particular units of goods produced or goods sold (rent, rates, public utilities).
6. EMPLOY Hes been living off . benefit for three months, and still has
no job.
7. SATISFY Job .. is as important as high pay.
8. OCCUPY Seasonal unemployment can be attributed to slack periods in some
.
9. JOB The official .. rate was around 6 percent.
10. BIND The insurance contract is a legally agreement.
III. What do the following abbreviations stand for?
11. FED
12. div.
13. CAP
14. Co.
15. i.e.
19
16. I had a lot of free time in my previous job.

I used ..
17. There is a smell of some chemical compound in this warehouse.

The warehouse .
18. I've been employed 20 years, come the end of the year.
By
19. I think we should leave at the end of the presentation.

Let's .
20. I'll be at your premises soon.

It won't be long ..
V. Complete the following sentences with the appropriate prepositions.
21. A complaint may be about a delay .. shipment.

22. The Tokyo Round resulted in overall reduction . tariffs.
23. GATT entered force in 1948.
24. If you want to keep track your income and outgoings, you will have to write them
down.
25. Next month our company will offer for sale to the public 100,000 shares . 100p each.
VI. Find the correct answer that fits the sentence.
26. The vice-president will his post and join LCA as chairman.
A) resign B) discharge C) fire D) resolve
27. tariffs are a means whereby nations attempt to protect their own industries.
A) Protection B) Protected C) Protecting D) Protective
28. He works for a(an) agency.
A) publicity B) advert C) advertising D) advertisement
29. We expect prices to by at least five per cent.
A) grow B) raise C) rising D) rise
30. If our company wants to survive, it has to to changes very quickly.
A) expect B) adapt C) accept D) adopt
20
VII. Complete these sentences with the following words.
Use each word once only.
cutting built emerging plans performance

annual deals embarking revive acquisition
Vodafone, the mobile phone group, 31 to improve revenue growth by extracting

better performance from existing assets rather than 32 on another acquisition spree.
While announcing 33 results that may show a record loss, Vodafone is expected to
reassure investors that it is not looking to34 slowing revenue growth by buying
more mobile operators in 35 markets. Instead, Vodafone is seeking to improve the
...36 of existing assets by 37 costs and developing strategies to increase
customers use of mobiles. Vodafone was 38 into the worlds biggest mobile
phone operator by revenue by a series of large 39 such as the 101bn 40 of
Germanys Mannesman in 2000.
21
TEST 4
I. Match the expressions with the business definition. There are TWO extra expressions
balance on current account, balance of trade, Bill of Lading, futures, proposal, insurance claim,
freight
1. Making contracts to buy and sell a commodity or financial instrument at a pre-arranged price in
the future as a protection against price changes.
2. The amount of money charged by the shipowners for carrying the cargo. It is calculated either
by weight or volume.
3. This indicator records both visible and non-visible transactions.
4. A form the client has to fill in if he wishes to insure his property.
5. Central document of sea transportation which is also a document of title.
II. Complete each sentence with the correct form of the word in capital letters. Write the
words on the answer sheet.
6. COMPETE With so many similar products available the . is very stiff.

7. FAVOUR When there is more money flowing out of the country than flowing in
the balance of payments is said to be . .
8. TIGHT The finance minister promised to . the countrys economy.
9. GROW American economic slowed down in the third quarter.
10. EXPIRE The buyer sets the date of the Letter of Credit.
III. Complete the following sentences with the appropriate prepositions.
11. There is a steady demand . high-class goods of this type.

22. By loosening restrictions .. foreign investment the turnover of the sector can double.
13. The truck broke down and this has resulted some delay.
14. Value added tax is levied .. most goods and services
15. We are pleased to advise you . the dispatch of your order which was collected today for transport.
16. I think an integrated marketing communication strategy is the best way to break into the market.
He said .
17. The managing director said he hadn't passed on any trade secrets.
The managing director denied .
18. Our CEO anticipates the resignation of the Chairman.

Our CEO expects .
19. I made the wrong decision when I decided to quit my previous job.
I wish
22
20. Mr Brown became a member of the supervisory board two years ago.
Mr Brown
21. encl.
22. Inc.
23. MBO
24. No
25. e.g.
VI. Choose the correct alternative.
26. It is worth .. some gold right now because the price is low.
A) to buy B) buying C) to be buying D) to be bought
27. We have found an alternative supplier sell us similar products.
A) what might be able B) which is able toC) that might be able D) who might be
to possible to
28. Our company has no difficulties money on the Stock Exchange.
A). to raise money B) in raising money C) with raising money D) to receive money
29. We need to purchase a lot of new ..
A) equipment B) pieces of C) equipments D) piece of

equipments equipments
30. I the prime minister for a long time
A) know B) have been C) have known D) had known

knowing
23
VII. Find the headings for the following lists of words.
Example
Recruitment 31 .. 32. .. 33
Appointments page Advertising Money order Producer
Interview Sales Promotion Current Account Wholesaler
Candidate Public Relations Credit card Retailer
Application Personal Selling Loan Consumer
34. 35.
V.A.T. Bill of Lading
Refund Consignment Note
Levy Air Waybill
Excise duty Certificate of Origin
VIII. Match the words on the right hand-side with the ones or on the left hand-side to make
word partnerships. Write the partnerships on the answer sheet.
Example: standing order

36. time . house
37. issuing . draft
38. public .. share
39. packing . liability
40. ordinary . list
24
TEST 5
commercial bank, subsidiary, fiscal policy, monetary policy, liability insurance, unemployment
benefit, franchise
1. A procedure by which the government plans to raise money (mainly by taxation) and spend
money.
2. A type of policy which protects a company from claims made against them due to injury to a
client/consumer e.g. from defective products.
3. Organisation offering a wide range of financial services mainly to individual clients.
4. The amount of money a registered jobless person is entitled to on a monthly basis.
5. This company belongs to a lager organisation called the parent company or holding company.
6. LEAD If a brand captures the largest market share it becomes a brand

.. .
7. BANKRUPT The management of BookWorld filed a voluntary petition for
.. .
8. RESTRICT The government has imposed .. on the imports of certain
agricultural products.
9. FRANCHISE Franchising is an agreement by which a monopoly producer gives the
.. the exclusive right to manufacture or sell his products
in a certain area.
10. SURE We can . you that there will be no more delays in the future.
III. Choose the best alternative.
11. Astra International plc. plans to set subsidiaries in Singapore.
a) off b) up c) in d) forth
25
12. As soon as George left school, he started to work for a real-estate agent . a
commission-based salary.
a) at b) with c) on d) off
13. If you can offer the goods . competitive prices we will place regular orders.
a) at b) on c) for d) with
14. We look forward .. receiving your early reply.
a) to b) for c) upon d) --
15. We have received the documents and taken delivery the above order.
a) -- b) of d) on d) with
IV. Rewrite the following sentences beginning as shown, so that the meaning stays the same.
16. Smoking is forbidden here.

You are ..
17. My boss hates staying in cheap hotels.

My boss can't .
18. Trying to contact the marketing manager is pointless because he is abroad.

It is no ..
19. Someone has suggested the resignation of the chairman.

It .
20. We will make a deal with them if they offer low prices.
Unless ..
V. Find the correct answer that fits the sentence.
21. We decided to establish a company.

A) limited B) restricted C) limited liability D) restricted
responsibility liability responsibility
22. Before the Christmas season, our staff had to work .
A) over-hour B) overtimes C) overtime D) over-hours
23. The requested product have not arrived in time.
A) patterns B) schedules C) samples D) statements
24. The CEO was accused of money .
A) laundering B) washing C) cleaning D) defaulting
25. Brokers seem to be as the stock market index hit a new record yesterday.
A) bearish B) bullish C) volatile D) pessimistic
26
VI. Complete the sentences using the grammatically appropriate form of the verb
given.
26. I dont feel like late tonight. (work)
27. We had better the contract before it is too late. (sign)
28. I regret you that your application has been turned down. (inform)
29. Would you mind a few questions? (answer)
30. So far $1 billion to control sewage discharged this year. (spend)
VII. Complete these sentences with the following words.

officer spun gain strengthen competing

worth based capitalisation takeover rival
Leading US telecoms firm AT&T has agreed to buy smaller 1 BellSouth in a deal
2 $67bn. Under the deal, AT&T will 3 full ownership of Cingular Wireless,
America's biggest mobile phone firm. The 4 will create a new giant in the US
telecoms sector, with a market 5 of $165bn. It will also see BellSouth returning to
its old stable. It and several other operators - dubbed the Baby Bells - were 6 off
from AT&T in the 1980s. "This is essentially re-creating the old AT&T," said Tim
Ghriskey, chief investment 7 of New York- 8 Solaris Asset Management. "It
will 9 two companies that aren't particularly strong. The industry needs that
consolidation to make them stronger against 10 technologies."
27
TEST 6
I. Match the expressions with the business definitions. There are TWO extra expressions which you do
not need to use.
tariff, return, executives, wholesaler, warehouse, board of directors, distribution channel
1. A business or company in the distribution channel 'between' the producer and the retailer.
2. A rate of income received by an investor from a security.
3. A place where goods are stored.
4. A form of 'tax' levied on imported goods.
5. A group of persons elected by the shareholders to carry on the strategic management of a company
6. PROPOSE Before taking out an insurance policy you need to fill in an insurance
form.
7. PROSPER Western European countries are usually more . than central
European ones.
8. SUPPLY The . is unwilling to deliver the ordered quantity by the agreed date.
9. CONSIGN The consists of fragile goods.
10. CARRY The person who undertakes to perform the contract of carriage is referred to as
the .
If you don't want to pay high taxes you had better set (11) an offshore company.
You earnings will be based (12) .. a fixed rate of dividends.
Our company has never defaulted (13) a loan before.
As a stock holder you will participate (14). the distribution of the company's profits.
We managed to obtain the goods (15).. a favourable price.
IV. Rewrite the following sentences, beginning as shown, so that the meaning stays the same.
16. Lets buy some T-Com shares.

He suggested
17. Its three weeks since I last sold an insurance policy.
I
28
18. If you missed the first half, you cant really say you understood the presentation.
Unless ..
19. Im sure the management has made several acquisitions.
The management .
20 The CEO consulted the Marketing Director before signing the contract.
The CEO did not .
V. Match the words on the right with the ones on the left to make word partnerships. Write the
partnerships on the answer sheet.
Example: market research
21. crossed offer

22. documentary option
23. firm cheque
24. call share
25. preference credit
VI. Write on the answer sheet what the following abbreviations stand for.
26. ATM
27. CV
28. D/A
29. EMS
30. p.t.o.
VII. Complete the sentences using the grammatically appropriate form of the verb given.
31. The government proposes that the decision-making mechanism . (revise)
32. We business with them for over thirty years now. (do)
33. If we any orders soon well have to make some of our workers redundant. (get)
34. Its not my signature, it by someone else. (sign)
35. The Personnel Manager thought that we ... all from further trainings. (benefit)
VIII. Find the correct alternative.
36. .. the documents at the end of the day.
A) I'm usually signing B) I usually sign C) I sign usually
37. John has been working on this project ..
A) for 3 months B) since 3 months C) three months ago
38. Do you want .. them right now or later?
A) me calling B) that I call C) me to call
29
39. Next quarter employees will need to work 6 days ..
A) a week B) the week C) in the week
40. I asked two investors if they wanted to buy any more shares but . of them had any
surplus funds.
A) neither B) either C) none
30
TEST 7
currency, sample, Plc., bed debt, partnership, advertising agency, Ltd.
6. An amount of money outstanding which is treated by a company or bank as a loss since it is not
likely to be repaid.
7. A business which assists companies in organising their promotion activities.
8. Money (coins, banknotes) used as cash for payment in a given country.
9. An association of two or more people running a business together to make a profit. In most
countries this business form is not a separate legal entity.
10. A product usually given free of charge for testing or examination purposes.
11. THREAT The US economy is by a higher than expected

unemployment rate.
12. SUBSIDY In EU countries agriculture is .. to make it more
competitive against imported goods.
13. DESCRIBE One of the important elements of a good job advertisement is job

14. SHIP We would like to inform you that the has not arrived
yet.
15. DOCUMENT We would like to make payment by . collection.
Who is responsible (16) the decline in sales?

We shall pay (17). a banker' draft (18) receipt of the documents.
The client cancelled the order because of repeated delays (19) delivery.
The supplies are likely to run (20) by the end of the week so we won't be able to make
deliveries to our clients.
31
21. The reception room needs to be redecorated before the delegation arrives.
We must have
22. I should have accepted the job offer.
I wish .
23. Id prefer you not to hire a marketing consultant.
Id rather
24. The introduction of the new IT system has reduced the amount of paperwork at the company.
Since the new IT system ..
25. Everyone believed that the company had been sold.
The company .
V. Find the correct alternative.
26. You can't stop me .. a voluntary petition.
A) that I file B) filing C) to file
27. What . the latest news in connection with the merger?
A) is B) are C) were
28. It's .. drive to get to the company's headquarters.
A) a three-hours B) a three-hour three hours
29. . will be promoted on Friday.
A) A colleague of me A) A colleague of mine B) One of my colleague
30. John couldn't come to the meeting, was a pity.
A) what B) that C) which
VI. Complete the sentences using the grammatically appropriate form of the verb given.
31. Our exclusive agent a product for two weeks. (sell)

32. If you me, I would not have applied for the job. (advise)
33. I have had my laptop . (steal)
32
34. It is worth in shares when the central bank cuts interest rates. (invest)
35. The requested products are not in stock. Our customers must them all. (buy)
VII. Find the odd word out.
36. bull, bear, fox, stag

37. description, proposal, claim, policy
38. freight, consignment, endorsement, carrier
39. product, price, place, promotion, public relations
40. reinsurance, enquiry, offer, order,
33
TEST 8
wages, salary, share, bond, line, bank statement, budget
1. A document sent to a client showing debit and credit entries.

2. An account recording government, company or household expenditure and income over a given
period.
3. Amount of money paid usually by the hour to workers.
4. A product 'family' produced by the same manufacturer for the same purpose. The products
differ in terms of size, design, price etc.
5. A type of security which represents ownership in a given company.
6. RESPONSIBLE Corporate . is getting more and more attention these

days
7. ADVISE It's is . to take out an insurance policy before shipping
goods.
8. DISTRIBUTE We are looking for an exclusive in your country.
9. EXPENSE Government has exceeded the amount agreed upon
in the budget.
10. EXPLAIN I think you owe me an why you turned down the offer.
III. Complete the following sentences with the appropriate prepositions.
I hope they can find a solution (11) the storage problems soon.
The company we acquired specialises (12).. chemicals.
The price index rose (13) an annual rate of over 12% in March but dropped (14)..
4.8% in May.
It has taken them a month to respond (15).. our letter.
16. I wasn't interested in marketing at college, which is a pity.

I wish .
34
17. I need a company car, but my company will not give me one.
I wish
18. You will understand my position only when you take more responsibility.
Only when .
19. Our business partner left before we got to the conference room.
By the time ..
20. We must work 12 hours a day, which is completely new to me.

I'm not used .
V. Choose the best alternative.
21. . the company's headquarters, ask for the HR manager!
A) Contacting B) Having contacted C) Having been contacted
22. he is not qualified, he was put in charge of finances.
A) Even B) Even when C) Even though
23. the boycott, the company kept up production.
A) Despite of C) In spite of C) Despite of being
24. It was so funny when our CEO bowed in front of the Japanese management that I couldn't
help .
A) to laugh B) laugh C) laughing
25. We saw him .. the information in the documents, but we didn't report him to
the police.
A) falsify B) to falsify C) that he falsifies
35
VI. Complete these sentences with the following words.
widespread replaced held back disruption electricity
unlikely reservoir pollution free at once chances
This is the most common form of generating 26 from water at the moment.
Generally a 27 is built with a dam in it, a mass of water is 28 by the dam, and
then suddenly released all 29 , sending the water through a turbine at great force.
This kind of system used to be 30 before we started using engines. Hydro-
electricity powered things like flour mill machinery. However, these were 31 by
engines when fuel to run them was very cheap. Hydro-electric power is 32 and
safe, although in creating it there can be tremendous 33 to the environment,
animals and nearby residents. We currently get about 2% of our electricity from hydro-
electric power, but the 34 of increasing that much are pretty 35 .
VII. Complete the sentences using the grammatically appropriate form of the verb
given.
36. He admitted a serious mistake. (make)
37. Id rather my boss all bank references. (check)
38. If they had brought out the new model earlier, they market share. (lose)
39. Thanks for calling. I look forward to you at the conference. (meet)
40. I am writing about the poor service I received in your store. (complain)
36
Enquiry-Ajnlatkrs
n Ms/Mr Wessy, aki beszerzknt dolgozik egy magyarorszgi ruhzlnc alkalmazsban

(EasyShopping Kft. 1222 Budapest, Gesztenye utca 12.) Farmerruhzati beszlltkat keres. Mlt
hten a Nemzetkzi Budapesti Vsron mrks farmerruhzati termkeket gyrt brit cg standjt
ltogatta meg (David & Son Ltd., London, Addison Avenue 122, 8RN 1TA) s az ott bemutatott
termkek elnyertk a tetszst. Fogalmazzon meg egy ajnlatkr levelet 120-150 szban. J
minsg farmerruhzatra van szksge, krjen termkmintt, katalgust, s krdezze meg, milyen
rengedmnyt tudnak biztostani nagy ttelben trtn megrendels esetn, valamint rdekldjn a
fizetsi felttelekrl.
Figyelem! A magyar szveget a vizsgn nem adjk meg. Itt gyakorlsi clbl szerepel, hogy a
hallgatk lssk, mit lehet rni egy hasonl levlben. A feladathoz egy- s ktnyelv ltalnos
sztr hasznlhat.
Tisztelt Hlgyem / Uram!
A mlt hten megltogattam az nk standjt a Budapesti Nemzetkzi Vsron s elnyerte

tetszsemet az ott bemutatott farmervlasztkuk.
Mi egy nagy ruhzlncolat vagyunk, Magyarorszg egsz terletn rendelkeznk kiskereskedelmi

egysgekkel. Kizrlag minsgi termkeket forgalmazunk a piac fels szegmense szmra. Olyan
gyrtkat keresnk, akik szles vlasztk farmerruhzatot tudnnak neknk szlltani rvid
hatridre. Krjk, jelezzk milyen hatridre vllaljk a szlltst. Ksznettel vennnk, ha
termkmintt tudnnak kldeni a f termkvonalaikrl.
Mivel ltalban nagy ttelben rendelnk, ezrt kedvezbb rajnlatra szmtunk nktl, mint azt
ahogy rlistjukon feltntetik. Krem nket, hogy tjkoztassanak bennnket arrl, hogy milyen
mrtk rengedmnyre szmthatunk nagy ttelben trtn rendels esetn.
Hlsak lennnk, ha tovbbi tjkoztatssal szolglnnak a fizetsi felttelekrl, valamint krjk,

hogy kldjk meg rsznkre rszletes katalgusukat.
Vrom mielbbi vlaszukat.
Tisztelettel:
Ms Wessy
Head Buyer
37
EasyShopping Kft.
12 Gesztenye Street
1112 Budapest
Hungary
Telephone:
Fax:
E-mail:
David & Son Ltd. 10 August 2009

122 Addison Avenue
London 8 RN 1TA
UK
Dear Sirs
Dear Sir/Madam
Dear Mr/Ms
Yours sincerely
Yours faithfully
Best regards
38
Useful phrases
Reference
We have seen you advertisement in Dealer's Magazine.

Your name was given us by
Request
We should be grateful if you could send us your catalogue and price list.
I'd appreciate it if you would send me a quotation for 50 tons of oranges.
Would you please let us know if you have in stock AC1 screwdrivers.
Please give us as soon as possible your lowest quotation for BB62 DVD recorders.
Please let us know if you can supply us with 50 tons of oranges.
Conditions
If you quote competitive prices, we will place regular orders with you.
Ending
We look forward to hearing from you.

We should appreciate a prompt reply.
39
Offer-Ajnlat
n Mr/Ms Boregar, aki a David & Son (David & Son Ltd., London, Addison Avenue 122, 8RN
1TA) farmerruhzatot gyrt brit cg alkalmazsban dolgozik, mint export zletkt. Tegnap
kapott egy ajnlatkr levelet egy magyarorszgi ruhzlnctl (Ms Wessy, Head Buyer,
EasyShopping Kft. 1222 Budapest, Gesztenye utca 12.). A Nemzetkzi Budapest Vsron
tallkozott a kpviseljkkel, akinek tetszettek az ott bemutatott termkeik. J minsg
farmerruhzatra, rvid hatridej szlltsra, katalgusra van szksgk, valamint rdekldnek a
fizetsi felttelek s a lehetsges rengedmnyekkel kapcsolatban. Tjkoztassa ket, hogy jelenleg
nagy a kereslet a brit piacon is ezrt csak 6 htre tudnak szlltst vllalni. 1000 darab felett tudnak
biztostani 20% rengedmnyt. A fizets banki tutalssal trtnik 14 napon bell. Csatolja az
export katalgus. Fogalmazza meg az ajnlatot 120-150 szban.
sztr hasznlhat.
Kedves Ms Wessy!
rmmel olvastuk augusztus 10-n kelt levelben, hogy tetszettek nknek a Budapesti Nemzetkzi
vsron bemutatott termkeink.
Vllaljuk, hogy biztostjuk az nk szmra a megrendelt mennyisget, de a rvid hatridre nem ll

mdunkban garancit vllalni, mivel az ilyen tpus ruhzat igen keresett a brit piacon is. A megrendels
kzhezvteltl szmtott hat hten bell tudunk szlltani.
20 szzalk rengedmnyt biztostunk nknek az rlistn feltntetett rbl, amennyiben 1000 db. felett
rendelnek.
A fizetsi mdja banki tutals a kereskedelmi szmla kzhezvteltl szmtott 14 napon bell.
Mellkelten megkldjk az aktulis rakat tartalmaz legjabb exportkatalgusunkat, amely CIF Hamburg
rakat tartalmaz.
Vrjuk mielbbi megrendelsket.
Tisztelettel:
Mr.Boregar
40
Useful phrases
Reference
Thank you for your enquiry of 10 August.

With reference to your letter of 10 August
We have received your inquiry of 10 August.
We are very pleased to learn that you are interested in
Focusing attention
We should like to draw your attention to our new range of .
Terms of delivery
Our articles can be delivered within 10 to 12 weeks.
Discount
For quantities over one ton, we can offer a discount of 10% on list prices.
Enclosures
I enclose our catalogue and export price list for

Please find enclosed our export catalogue
Polite closing
We trust that you will find our samples attractive and look forward to receiving your order.
41
Order-Megrendels
n Ms/Mr Fekete, aki a magyarorszgi TimeWorld (4322 Debrecen Fiastyk u. 25)

nagykereskedelmi cg alkalmazsban dolgozik, mint rtkestsi vezet. Mlt hten kapott
ajnlatot s termkmintt az amerikai Chronotime cgtl (Mr Lambert, Sales Director, Chronotime
Inc., 22 South Cross Park, New York), akik a Chronologic AC2 minsgi rt gyrtjk. 1000
darab rt szeretne rendelni 82 dollros egysgron az rlista szerint (egy vig garantlt fix rak). A
dokumentci 270 dollr, a szllts 600 dollr (a TimeWorld fizeti). Fizets akkreditvvel.
Szllts az akkreditv megnyitstl szmtott 4 hten bell. Krjen 10 pldnyt az elszmlbl s
10% rengedmnyt a jvbeni rendelsekre. Fogalmazza meg a megrendelst 120-150 szban.
sztr hasznlhat.
Tisztelt Mr Lambert!
Hivatkozssal a 2009. jan. 22-n kelt ajnlatukra, rmmel tjkoztatjuk nket, hogy megkaptuk
a termkmintkat, amelyek minsgt megfelelnek talltuk. Ezennel szeretnnk megrendelni
nktl a kvetkez termkeket:
Mennyisg (db) Termklers Egysgr sszesen
1,000 Chronologic ra AC2 $82 $82,000

Szlltmnyozs $600
Dokumentci $270
sszesen FOB: $82, 870
A fentiekben emltett rak az nk ltal megadott felttelek szerint, fix FOB rak. A fizets mdja
megerstett, visszavonhatatlan akkreditv, amelyet a megrendels visszaigazolsakor nyitunk meg
az nk a javra. Krem, kldjk meg szmunkra az elszmlt 10 pldnyban.
A szllts az akkreditv megnyitstl szmtott 4 hten bell trtnik, de rmmel vennnk, ha a

rendelst a lehet leghamarabb megkaphatnnk. Krjk, tjkoztassanak, mikor tudjk legkorbban
rendelkezsnkre bocstani a szban forg termkeket.
Ahogy nk is ltjk, mi ltalban nagy ttelben rendelnk, ezrt krjk, vegyk fontolra egy 10
%-os rengedmny lehetsgt a jvbeni megrendelsekre.
Vrjuk a megrendelsnk visszaigazolst.
Ksznettel:
Fekete Klmn
rtkestsi menedzser
42
Useful phrases
Reference
Thank you for your offer / catalogue of 22 March.
Order
We have pleasure in sending you an order for

We would like to place an order for the following products:
Please find enclosed the official order form.
Discount
Considering the size of the order we hope you will agree to grant us a special discount of at least 3%.
Conditions / terms of payment
As soon as we receive your confirmation / acknowledgement we shall apply for the import licence and take
the necessary steps to open the L/C (Letter of Credit).
We shall open an irrevocable L/C as soon as we receive your pro forma invoice.
We shall pay by banker's draft on receipt of your pro forma invoice.
Advice of despatch
Please advise us when the goods have been dispatched.
Packing
Please ensure that the goods are carefully packed.

The goods must be sent in seaworthy packing.
Threatening
If you are not able to send the goods before the end of this month, please consider this order as cancelled.
Closing
We are looking forward to receiving the shipment.
43
Complaint-Reklamci
n Ms/Mr Fekete, aki a magyarorszgi TimeWorld (4322 Debrecen Fiastyk u. 25)

nagykereskedelmi cg alkalmazsban dolgozik, mint rtkestsi vezet. A mlt hten megkapta
az 1000 darab Chronologic AC2 rbl ll szlltmnyt (rendelsszm: 4852/CDE) az amerikai
Chronotime cgtl (Mr. Lambert, Sales Director, Chronotime Inc., 22 South Cross Park, New York
41210). Mikor kinyitotta a csomagokat azt tapasztalta, hogy 250 ra manyag fedlapja slyosan
megrongldott. Valsznleg az ers napsugrzs okozta a krosodst. Attl tart, hogy elveszti az
gyfeleit, ugyanis ilyen llapotban nem tudja leszlltani az rkat. Lehet, hogy knytelen lesz
msik gyrtt keresni. Azonnal szksge van a 250 csererra. rja meg a reklamcit 120-150
szban.
sztr hasznlhat.
Rendelsszm: 4852/CDE
Tisztelt Mr. Lambert!
Megkaptuk a szlltmny rt a fenti rendelsszmmal, azonban sajnlattal rtestjk nket arrl,

hogy a 250 ra minsge nem megfelel, ugyanis a manyag fedrsz csnyn megrongldott. A
vizsglat sorn kiderlt, hogy a krt valsznleg az ers napsugrzs okozta.
Bizonyra nk is megrtik, hogy ilyen llapotban nem bocsthatjuk megrendelink

rendelkezsre a termkeket, ez azonban jelents ksedelmet okoz a megrendelseink teljestsben
fontos gyfeleink fel, akiket nem szeretnk az nk hibjbl elveszteni.
Azonnal s kifogstalan minsgben szksgnk van a 250 csererra, amelyet szveskedjenek a

fuvardj kifizetsvel a szmunkra lgi ton minl hamarabb elkldeni.
Amennyiben a jvben hasonl problma addik, knytelenek lesznk ms beszlltt keresni.
Tisztelettel
Fekete Klmn
rtkestsi menedzser
44
Useful phrases
Reference
We took delivery of the above order and regret to inform you that
Describing the problem
Unfortunately we find that you sent us the wrong goods.

We have examined the cases and found that the contents have been badly damaged.
The workmanship does not come up to our expectations.
Asking for adjustment
We need the replacements immediately and in perfect condition.
Threatening
If there are any further quality problems in the future, we will be forced to turn to an alternative
supplier.
Closing
We trust this matter can be solved to our mutual satisfaction.

We trust this matter can be settled swiftly and amicably.
45
Sample Memo-Feljegyzsminta
Situation 1: You work for Dunns Wholesale Confectionery. You office manager is Miss Jane
Treadgold. You arrive at work one morning and find the following note from her on your desk.
Carry out her instructions.
Write a memo under my name to all the companys representatives informing them that the new
supply of company-headed writing paper, note pads and ball pens embossed with the companys
name and address, which are to be given to customers, has arrived and will be available to the reps
from next Tuesday from the office. I need to know in writing by next Monday the quantities of
these items each rep requires.
Memo
To: All representatives

From: Miss Jane Treadgold, Office Manager
Subject: Ordering of company-headed stationery
Date: 12 March 2001
The supply of company-headed writing paper, note pads and ball pens embossed with the
companys name and address will be available from next Tuesday from my office. These are to be
distributed to customers.
All representatives should decide how many of these items they require. I need to have orders on
my desk in writing by next Monday at the latest.
46
Memo-Feljegyzs
n Ms/Mr Boven, az Furniture World Kft. irodavezetje. Az utbbi idben tbb reklamcit is
kapott. Nhny gyfl tves szmlt kapott a megrendelt btor mell, nhny pedig a megrendels
szerinti szmlt kaptk, azonban a megrendeltektl eltr rt. August Foley igazgat r
elgedetlensgt fejezte ki ezzel kapcsolatban. n szerint a szlltsi osztly felels, mivel ott tbb
j munkatrs is dolgozik. A kvetkez kt hetet a cg egy msik rszlegnl kell tltenie, mert ott
j nhny kollga betegllomnyban van, gy nem tud az ggyel szemlyesen foglalkozni. rjon
egy feljegyzst az asszisztensnek, Jimmy Smithnek.
Vilgtson r a problmra. Krje meg az asszisztenst, hogy intzkedjen a szlltmnyozsi

osztlyon az ggyel kapcsolatban, hvja fel a figyelmket, hogy legyenek figyelmesebbek.
Krje meg t, hogy hvja fel a kvetkez kt gyfelet: (1) Mr Brown (Discount Furniture Kft):
mondja el, hogy a rendelsk azrt fog ksni hrom napot, mert meghibsodtak a gpek, ezrt
ajnljon fel neki valami kompenzcit. (2) Mr White (Office Furniture Rt.): Holnap 18 rra
beszlt meg vele tallkozt, amit az asszisztens mondjon le.
sztr hasznlhat.
Mivel tbb munkatrsunk is betegllomnyban van arra krtek, hogy tltsek el egy pr napot a
cgnk egy msik rszlegnl. Ezrt szeretnm megkrni, hogy a kvetkez feladatokat intzze el.
1. Tbb reklamcit is kaptunk gyfeleinktl arra vonatkozlag, hogy a megrendelst tves

szmlval kaptk meg, illetve a szmla a megrendelt termkekre volt killtva, de a szlltmny
nem a megrendelt termkeket tartalmazta. Az hiszem, hogy a szlltsi osztly tehet felelss a
trtntekrt. Tudom, hogy tbb j munkatrs is dolgozik ott s egyelre nem akarom ket
hibztatni. Legyen szves, krje meg ket, hogy a jvben jobban figyeljenek oda, hogy mind a
kldemny, mind a szmla helyes legyen. Ha valakinek problmja addna, nyugodtan
forduljon Harry Hawke rhoz, aki segtsgre lesz. August Fowley igazgat r aggodalmt
fejezte ki, ugyanis hasonl problma mg soha nem fordult el.
2. Krem hvja fl Brown urat a Discount Furniture-nl s mondja meg neki, hogy a megrendelse
gphiba miatt az grtnl hrom nappal ksbb rkezik. Ajnljon fl neki valami kompenzcit,
mondjuk 10% rengedmnyt s krjen tle elnzst a ksedelemrt. Majd krem hvja fl White
Smith urat az Office Furniture-nl s mondja le a holnap du. 6 rs megbeszlsemet.
Ms Boven
Office Manager
47
Situations
1/A: You are a customer

Call Blank Office Supply and place the following order:
12 boxes of Marvel copy paper.

Insist on the Marvel brand.
You do not need any other products.
1/B: You are a sales representative

You are representing Blank Office Supply Co. A customer is calling you to place an order. Inform
him/her about the following:
You will have a shipment of Marvel copy paper only next week.
Recommend the Wearwell brand.
If the customer insists on the Marvel brand tell him you will send a box from you own. stocks
and the rest next week.
Try to persuade him to buy another office product (your choice).
48
2/A: You are Miss/Mr Stevens representing Harris Ltd. You placed an order for computer chips
with CompSystems Co., and the shipment has not arrived. Call them to make a complaint.
You ordered the chips a month ago.

They promised delivery within 10 days.
You placed the order on 10 March.
Ask about the problem and when they can send the goods.
Threaten to cancel the order if you do not receive the goods within three days.
2/B: You are Miss/Mr Black representing CompSystems Co. A customer is calling to make a
complaint.
Ask about the problem.

Apologise.
Ask him when he placed the order exactly.
Ask him to wait a few minutes until you find the order in the computer.
The consignment was delayed because chips needed a special attachment which was not in
stock.
Promise delivery within three days.
49
3/A: You are a salesman, you meet your client in a restaurant. Try to sell a special car filter
developed by your company.
Reduces pollution by up to 70 percent.

Unfortunately it is true that an American company has developed a similar product.
However your product comes at a lower price and offers more features and services.
There are no tariffs within the EU.
Promise that you will send a detailed catalogue.
3/B: You are a buyer. A filter is offered to you by a salesman of a well-known company.
You meet the salesman in a restaurant.
Express your interest in the product.

You know that an American company has developed a similar product.
Express you concern that the patenting of the product may run into difficulties.
Inquire about price as compared to the American product (more expensive or cheaper).
Ask for a detailed catalogue.
50
4/A: Phone conversation
You are Mr/Miss Fox representing Brown & Haris Ltd. You saw the advertisement of a market
research company called Computerised Export Intelligence in Financial Times. You need
information about import regulations, advertising and tariffs in EU countries. Call the company and
inquire about the following:
Introduce your company: invent information.

Inquire about services to small businesses.
Inquire about the type of information they can obtain.
Inquire about costs and charges.
Subscribe to the service.
4/B: Phone conversation:

You are Mr/Miss Benson representing a market research company called Computerised Export
Intelligence. You have been advertising in Financial Times. A potential client is calling to inquire
about your services.
Inquire about the callers company.

Introduce your company in a few words (market research, targeting small businesses).
You are offering services to small businesses which cannot afford expensive market research.
You can offer favourable fees.
Explain how your company obtains information: you work with market research professionals
in a number of countries.
You send information requested by the client once a month (eg. tariffs, import regulations,
distribution channels, advertising regulations, the structure of the market, market segments etc.
The subscription fee is 25 pounds a month.
51
5/A: Sales representative
You work for Dictamax Ltd. Call Burrows Imports Ltd. and discuss the following.
You are calling in connection with the dictating machines and calculators Burrows Imports
ordered.
The order was placed on the basis of last Septembers quotation.
Since then you have increased prices by 10%.
Ask if they got the circular about the higher prices.
As the caller is a regular customer you can grant him a 5% discount.
5/B: Buyer
You work for Burrows Ltd. A sales representative from Dictamax Exports calls you in connection
with the order you placed last September for dictating machines and calculators.
You are shocked to hear that they have put up prices by 10%. You havent been informed about
it.
You think 10% is too high.
You think you wont be able to sell the goods at such high prices. Ask what discount they can
grant you as you are a regular customer.
Accept or reject the offer.
52
6/A: Buyer
You are Mr/Ms Bryce. You work for SunSystems Ltd. You have the following complaint to make
to Mr/Ms Morgan, the managing director of CopyWorld. Pay a visit to him in his office.
They promised to deliver 25 photocopiers by 15 July, today it is 30 August and you still havent
received the consignment.
Ask about the reasons for the delay.
You could not sell the copiers in time so two customers cancelled their orders. You ask for a
discount as compensation.
Threaten to cancel the order if they do not send the consignment early next week.
6/B: Managing director

You are Mr/Miss Morgan, the managing director of CopyWorld. A representative of SunSystems
visits you in your office to make a complaint.
Express your regret over the delay.

Reason for the delay: factory stopped production because of a shortage of spare-parts. Shortage
of staff. Lot employees are either on holiday or ill.
Apologise.
Promise delivery within 3 days.
Inform him that similar delays are not typical of your company.
53
Sample Dialogues
1. ORDER
SALESMAN: Good Morning. Blank Office Supply, Al Sims speaking.

May I help you?
CUSTOMER: Good Morning. This is Dave Carter with the Jones Company. I'd like to order a
dozen boxes of Marvel copy paper.
SALESMAN: We'll have a shipment of Marvel in next week, Mr. Carter. Could you use the
Wearwell brand this time?
CUSTOMER: No, Id like the Marvel brand.
SALESMAN: I'll be happy to send you a box from our other store to hold you over. And then I'll
send you the balance of the order next week. Would that be all right?
CUSTOMER: That would be fine.
SALESMAN: Would you need some paint cartridges?
CUSTOMER: No thanks, I'm stocked up with paint cartridges.
SALESMAN: Thank you for your order, Mr. Carter. I'll get one box of Marvel copy paper to you
this afternoon, and send the remainder to you when our shipment comes in next week. You're still
at the same address, 1243 Main Street - right? Incidentally, Mr. Carter, have you heard of our sale
on filing cabinets?
CUSTOMER: Filing cabinets?
SALESMAN: Yes, Mr. Carter. They are the Grayroll brand, five feet high, eighteen inches deep,
four drawers, mounted on roller bearings for smooth operation, and they come in beige or blue.
They usually sell at $150, but this week, because of a special purchase, we're offering them at $120.
CUSTOMER: Well, I'd like to see them first.
SALESMAN: Why not stop in tomorrow? I'd be glad to hold a couple for you. No obligation, of
course, until you see them. Do you prefer beige or blue?
CUSTOMER: I'd like to take a look at one, maybe two of them, in blue.
SALESMAN: I'm sure you'll be happy with them, Mr. Carter. Now, let's see. I'll have a box of
Marvel copy paper delivered to you this afternoon from our other store. Then next week, I'll fill the
balance of your order when our shipment of Marvel arrives. Meantime, I'll put tags on a couple of
the blue filing cabinets to hold them until tomorrow. Thanks again for your order, Mr. Carter, and
I'll look forward to seeing you tomorrow. Goodbye, and have a nice day.
54
2. COMPLAINT
SALESMAN: Good Morning. Order Department, Allan speaking.

CUSTOMER: Good Morning. This is Harold Bryson. Id like to know what happened to that part I
ordered a month ago. You promised delivery in ten days. I'm holding up a job on one of my best
customers and may lose him because the job was supposed to be done today.
SALESMAN: I don't blame you for feeling as you do Mr. Bryson, and I'll do everything I can to
get the part for you. Could you give me some information first, then I'll see what happened to the
delivery, and, if you wish, I can call you back within an hour.
CUSTOMER: No, I'd rather hold on. What information do you need?
SALESMAN: Could you tell me who took your order and also, if you have it, the replacement
number of the part?
CUSTOMER: I don't know who took the order and I don't have the replacement number. All I can
tell you is I placed the order on Thursday or Friday, March 10 or 11.
SALESMAN: Could you wait a few minutes while I look up the order, Mr. Bryson? (Gets the
order) Thanks for waiting, Mr. Bryson. You are absolutely right, the order does say delivery in ten
days, and I am very sorry about this. However, for your job a special attachment was needed, and
this takes two weeks longer.
CUSTOMER: Then why didn't the salesman tell me it would take longer?
SALESMAN: No excuse for that, Mr. Bryson, but I'll have him call you as soon as he comes in.
Meantime, I could send over the standard part this afternoon. We could then send the attachment
over as soon as we receive it, which should be at the end of the week. I'd be glad to do whatever
you say, Mr. Bryson.
CUSTOMER: Yes, I'd appreciate it if you could get the part to me by two o'clock.
SALESMAN: I'll see that the part is delivered by two o'clock, if not sooner. If anything else comes
up that I can help you on, be sure to let me know. Good-bye.
55
3. Mixing Business with Pleasure
Herr Hansen, the export manager of a German firm which developed a device to reduce air
pollution by cars is visiting Mr. Evans, the manager of a large English manufacturing firm, to
whom he hopes to sell it. They are discussing the matter over lunch.
HANSEN: This is a very pleasant restaurant.

EVANS: Yes, I've been coming here for years. It's become rather expensive though, but
eating is an expensive business anywhere in London these days.
HANSEN: It's certainly worth knowing about a place like this. The food is excellent.
EVANS: Yes, It's a shame to have to spoil it by talking business.
HANSEN: Yes, isn't it?
EVANS: Now, as I understand from what you've been saying, this device that your firm
has developed can be fitted to any car, and will reduce pollution by up to 70 per cent.
HANSEN: Yes, that's right.
EVANS: Am I not right in thinking that the Americans recently produced something
very similar?
HANSEN: Cleanfilter, you mean? Yes and no. Their device is similar in so far as it performs
the same function. There are, however, quite basic differences.
EVANS: At any rate there is no danger of our getting into difficulties with the patent
office?
HANSEN: None at all. Moreover, our device has the advantage of being considerably cheaper
than the American one, owing to lower production costs and the lower import charges within the
European Union.
EVANS: This all sounds very interesting. I shall, of course, have to discuss the matter with our
managing director before making any decision.
HANSEN: Yes, of course.
EVANS: I should also like a more detailed explanation as to exactly how the device works. But I
think you can look forward to receiving a positive answer within the next week.
HANSEN: I'm very pleased to hear it. And now how about a Cognac to finish off the meal?
EVANS: That's an excellent idea.
56
4. Computerised Export Intelligence
Mr. Fox, the export manager of an electrical appliance firm, read an advertisement for
Computerised Export Intelligence. He is interested in the scheme and rings their number.
TELEPHONIST: Good Morning. Computerised Export Intelligence. Can I help you?

FOX: Good Morning. Extension 7122, please
BENSON: Benson here.
FOX: This is Mr. Fox, of Brown and Harris Ltd., manufacturers of electrical appliances. I read your
advertisement in the Financial Times today and wondered if you could give me further information.
BENSON: Certainly. What would you like to know?
FOX: In what ways could your service be of help to a small firm such as ours?
BENSON: In many ways, Mr. Fox. In fact it is especially helpful for smaller firms which dont
have the facilities for market research that larger firms have.
FOX: What form would this help take?
BENSON: From our Commercial Diplomatic posts in many countries abroad we receive regular
reports on all aspects of industry and commerce. From these we could pass on to you any
information that could be valuable to you.
FOX: What sort of information, for instance?
BENSON: Well, you could choose the type of information you wanted from the very wide
selection we offer. For example, of specific interest to your firm would probably be notification of
the changes in tariff and import regulations overseas.
FOX: Yes, that would be a help.
BENSON: Overnight you would receive from us information on potential markets it could take you
weeks, months or even years to accumulate on your own.
FOX: That would save a lot of time and trouble. And the 25 subscription would cover everything
- the service, the literature and the postage?
BENSON: Yes, it would. Would you like our representative to call on you and discuss how the
service can best serve your requirements?
FOX. Yes, I would.
BENSON: Then if you give me your telephone number, Ill get him to contact you.
57
5. A Matter of 10 per cent
SECRETARY: Burrows Imports Ltd. Can I help you?

EXPORTER: Can I speak to Mr. Turner, please?
SECRETARY: Who shall I say is calling?
EXPORTER: Herr Krieger of Wolters und Zwilling, Bremerhaven.
SECRETARY: Just a minute, Herr Krieger.
IMPORTER: This is Mr. Turner speaking. Good morning, Herr Krieger.
EXPORTER: Good morning, Mr. Turner. I'm phoning about your order for 150 Dictamax dictating
machines and 100 Addita calculating machines, to be delivered by July 31st.
IMPORTER: Oh, what seems to be the problem?
EXPORTER: The problem is that you've based your order on the quotation we sent you last
September. Since then we've had to put up all our prices by 10%.
IMPORTER: Really? I didn't know that.
EXPORTER: Well, we sent a circular to all our customers informing them of the increase - perhaps
you never received yours.
IMPORTER: I certainly don't remember seeing anything about it, but I can check the correspon-
dence files and see. 10 % you say? That makes quite a difference.
EXPORTER: Yes, it's unfortunate that you didn't realize in time and order before the new prices
were introduced. However, as you're a regular customer, we're prepared to offer you a 5% discount
on this order, above your normal discount.
IMPORTER: That puts things in a better light.
EXPORTER: On condition that you confirm the order with the new prices within two weeks -we'll
send you a new price list today.
IMPORTER: Right, we'll do that then. Can delivery still be made by the end of July?
EXPORTER: Yes - if we receive confirmation of the order within a fortnight, that should be
no trouble.
IMPORTER: Good. Well, thank you very much, Herr Krieger. I'm sorry about this mix-up.
EXPORTER: That's quite all right, Mr. Turner. I'm glad we've managed to sort it out satisfactorily.
Good-bye.
58
6. Complaint: An Angry Customer
MANAGER: Good Morning, Mr. Bryce. Have a seat please.

CUSTOMER: Good Morning. I asked for an appointment with you because I have a complaint to
make.
MANAGER: What seems to be the problem?
CUSTOMER: I placed an order with your company for 25 photocopiers. We were promised
delivery for June 15th, when we moved to our new offices. It's now July 28th and not only have we
not received the photocopiers but nobody at your end seems to know anything about them.
MANAGER: I'm very sorry about the delay, Mr. Bryce, but due to illness and holidays we've been
very short-staffed recently.
CUSTOMER: Five weeks ago I was told there had been a mix-up with the order, but everything
was sorted out. Then I was told there had been a hold-up in the factory, because of a shortage of
parts. Now you tell me you're short-staffed.
MANAGER: I'm really very sorry, Mr. Bryce, but these things are quite beyond our control.
CUSTOMER: That's as may be, but this isn't the first time you've let us down. At the same time as
the photocopiers we also ordered six laser printers.
MANAGER: Yes. I believe they were delivered on time.
CUSTOMER: Well, three days late, in fact.
MANAGER: Oh dear.
CUSTOMER: And when they did arrive, two had the wrong paint cartridges and one didn't work.
MANAGER: I take it these have now been replaced.
CUSTOMER: Yes, but we had to wait three weeks, which means that we couldnt sell them to our
customers.
MANAGER: I'm very sorry about that - I'll look into the matter at once.
CUSTOMER: Yes, do so by all means, but it's a bit late now. What concerns me more at the
moment is the photocopiers.
MANAGER: I'm pleased to say they are ready and awaiting shipment. You should receive them
within the next three or four days.
CUSTOMER: Good. But if they're not here by next Monday that is August 3rd - you can take
the order as cancelled, and we'll order from another firm.
MANAGER: I'm sure that won't be necessary, Mr. Bryce. I'll see to it myself that the
machines go out today.
CUSTOMER: Well that's something, anyway.
MANAGER: And please accept my apologies for the inconvenience you've been caused. I assure
you that such mix-ups are very rare with us.
CUSTOMER: I hope so. Well, I look forward to receiving the dictating machines within
the next few days, then. Good-bye.
MANAGER: Good bye Mr. Bryce and have a nice day.
59
ABBREVIATIONS
a/c Account szmla

A.A.R. Against All Risks minden kockzatra (bizt. ktvny)
ACT Advance corporation tax vllalati nyeresgad elleg
AGM annual general meeting ves kzgyls
APR annual percentage rate tnyleges kamatlb
A.O.B Any other business egyebek
appro. approval jvhagys
approx. approximately megkzeltleg (kb.)
art. article rucikk
ASAP as soon as possible amint lehetsges
Assn. Assoc. Association egyeslet
ATM Automated teller machine pnzautomata
att.,attd. attached csatolva
attn. (for the) attention (of) figyelmbe
av. average tlag
bal. balance egyenleg
B/E Bill of Exchange vlt
BIS Bank for International Settlements Nemzetkzi Fizetsek Bankja
bkg. banking banki mvelet
bkpt. bankrupt csdbe jutott
B/L Bill of Lading hajraklevl
blk. bulk tmegru
B.O., B/O branch office fikiroda
Bros. brothers trsai (cgnl)
B/S. B.S., b.s. balance sheet mrlegkimutats
c Circa kb.
cat. catalogue katalgus
cert. certificate bizonytvny
cf. compare (lat.) vesd ssze
chq. cheque csekk
Co. Company vllalat
Corp. Corporation vllalt
CPI consumer price index fogyaszti rindex
cr. Creditor hitelez
CAP Common Agricultural Policy Kzs Mezgazdasg Politika
CV curriculum vitae letrajz
c/o care of valakinek a cmn
D/A deposit account takarkbett-szmla
D.D.D. deadline delivery date szlltsi hatrid
dep., dept. department osztly
diff. difference klnbsg
div. Dividend osztalk
doz. Dozen tucat
e.g. for example (exempli gratia) pldul
60
EFTA European Free Trade Association Eurpai Szabadkereskedelmi
Trsuls
EMS European Monetary System Eurpai Valutarendszer
EMU European Monetary Union Eurpai Valuta Uni
encl., enc(s) enclosure(s) mellklet(ek)
excl. excluding, exclusive of kivve,
FED Federal Reserve System Szvetsgi Tartalk Rendszer
(USA kzponti bankrendszere)
FOB free on board kltsgmentesen a haj fedlzetre
f.o.c. free of charge ingyebes
FPA free from particular average rszkrtl mentes
frt. ppd. freight prepaid szlltmny elre fizetve
ft. foot, feet lb (mrtkegysg)
FTSE Financial Times Stock Exchange Financial Times rszvnymutat
Index
fwd. forward tovbbt
GDP gross domestic product brutt hazai termk
GNP gross national product brutt nemzeti termk
HGV heavy goods vehicle tehergpkocsi
H.O. head office kzponti iroda
H.P. horse power, ler,
HP hire purchase rszletvsrls, lzing
I.B.R.D. International Bank for Reconstruction Nemzetkzi jjptsi s
and Development Fejlesztsi Bank
i.e. that is to say (id est) azaz, vagyis
IMO International Money Order nemzetkzi postai fizetsi utalvny
Inc. incorporated with limited liability bejegyzett cg (Kft., Rt.)
lbs pound(s) font
I.C.C. International Chamber of Commerce Nemzetkzi Kereskedelmi Kamara
IMF International Monetary Fund Nemzetkzi Valutaalap
I.M.O. International money order Nemzetkzi pnzutalvny
inv. invoice szmla
ISO International Standards Organisation Nemzetkzi Szabvnygyi
Szervezet
K Thousand ezer
IOU I Owe You tartozs (tartozom nnek)
Ltd. Limited korltolt felelssg trsasg (Kft.)
L/C Letter of Credit akkreditv
libor London Inter-Bank Offered Rate bankkzi klcsn kamatrta
mar. marine tengeri
MBO management buy-out vllalat megvsrlsa a vezetk
ltal
MD Managing Director vezrigazgat, gyvezet igazgat
M.O. money order postai pnzesutalvny
M/R Mates receipt hajstiszti elismervny
MS motor ship motoros haj
MV motor vessel motoros haj
61
N/A, not applicable, non-available nem alkalmazhat, nem ll
rendelkezsre
N.B. note well (nota bene) megjegyezend, fontos
No/Nos number(s) szm(ok)
OECD Organisation for Economic Gazdasgi Egyttmkds s
Cooperation and Development Fejlesztsi Szervezet
OPEC Organisation of Petroleum Exporting Petrleum Exportl Orszgok
Countries Szervezete
oz. ounce uncia
P.A. personal assistant szemlyi titkr
p.a. per annum vente
P.A.Y.E. pay-as-you-earn brbl munkltat ltal levont
jvedelemad
P/E price earnings ratio rfolyam nyersg arnya
PIN code personal identification code szemlyi azonost szm
Plc. public limited company rszvnytrsasg
pc Piece darab
P.O. postal order postautalvny
P.O.B. Post Office Box Postafik
p.t.o. please turn over fordts!
R&D research and development kutats s fejleszts
Qty. Quantity mennyisg
recd. Received tvve
rep. representative kpvisel
rev. revenue rbevtel, llami bevtel
R.R. rail road vast
R.S.V.P please reply vlaszt krnk
Sec. secretary titkr
S/A Statement of account szmlakivonat
SDR special drawing rights klnleges lehvsi jogok
shipt. shipment szlltmny
Thru B/L through bill of lading kombinlt hajraklevl
T/O Turnover forgalom
T price total price sszesen (ssz. r)
TIR International Transport Routier nemzetkzi megllapods
amelynek rtelmben az rukat
vmvizsglat nlkl engedik t a
hatron
U price unit price egysgr
v. Vide lsd
VAT value added tax forgalmi ad (fa)
W.A. with average a biztost rszleges hajkrt is trt
WB, W/B Waybill fuvarlevl
viz. namely azaz hogy, nevezetesen
vol. volume rumennyisg
wt Weight sly
yr. year v
62
BUSINESS PREPOSITIONS
COMPLETE THE FOLLOWING SENTENCES WITH THE MISSING PREPOSITIONS OR ADVERBIAL PARTICLES.
1. We sold you car . accordance .. your instructions.

2. We regret to inform you that according .. current regulations payment . this consignment
must be made Letter of Credit.
3. It took me some time to become accustomed (to become accustomed) the new system.
4. They will sign only if the terms are fully acceptable .. them.
5. You will receive the payment advance.
6. We are pleased to advise you . the dispatch of your order which was collected today for
transport.
7. The finance manager did not agree . me.
8. I think they will agree terms of our contract.
9. I must apologise .. the delay .. replying (to reply) . your letter .
10. Why dont you apply the job.
11. You are allowed to have the goods approval for 10 days.
12. He is arrears with the rent.
13. We expect to managers to arrive .. London next week.
14. I will be available an interview at any time.
15. Im not aware the new regulations.
16. The buyer may refuse to accept the draft in an attempt to bargain a lower price.
17. We need someone who is capable .. negotiating in English.
18. We carried (to carry) . a survey on biological detergents.
19 The government wants to reduce the mount of money circulation.
20. Consumers called (to call) a boycott of Danone products.
21. Any decisions made must be consistent . the companys overall policy.
22. We can grant you a 15 % commission ... every deal.
23. When people complain the complexity of export procedures they generally refer .
documentation.
24. You are expected to comply . company regulations.
25 We have instructed The General Bank of South Australia to open a credit . 625 .
your favour.
63
26. We would like to present you with this watch .. behalf of the company.
27. Mrs Willis is away . business at the moment.
28. Tariffs on industrial goods were to be cut .. an average 37 per cent.
29. For the past 10 years we have been dealing (to deal) . fashions for teenagers.
30. The marketing department dealt (to deal) ... your inquiry.
31. We debit you . the amount 1000.

32. He is heavily debt because he still has not been paid for the last job he did.
33. The machine broke (to break) .. and production was halted.
34. There is no demand . our products this quarter.
35. It is risky to be dependent .. one supplier.
36. My lawyers will draw .the contract.
37. If you pay within seven days you will be eligible . a discount.
38. We have entered (to enter) . an agreement and we cannot change our minds now.
39. The directors entered (to enter) the conference room.
40. Some goods and services are exempt VAT.
41. The companys current order book is . excess ..1 million pounds.
42. You should be familiar the regulations relevant ... your work.
43. The buyer also may be .. fault.
44. They gave (to give) . . consumer pressure and redesigned the product.
45. He is incapable learning Chinese.
46. The company increased (to increase) the price . 10 %.
47. We are really indebted . you for all the help you have given us.
48. Now they are independent the parent company.
49. I have no intention resigning.
50. You dont want to get involved .. this kind of business.
51. They kept (to keep) costs .. by using less expensive material.
52. The US economy levelled ( to level) last year.
53. In his speech he left (to leave) the most important detail.
54. Value added tax is levied (to levy) .. the difference between the sale price of the goods or
services.
55. The firm laid (to lay) .. half their workforce.
56. We look . . hearing (to hear) . you in good time for the coming season.
57. The price of copper fell, so I sold the product .. a loss.
64
58. Next month Astra will offer . sale to the public 500,000 shares . 200p each.
59. I found it hard to pay attention the meeting.
60. Do you mind if I pay . cheque?
61. They paid (to pay) . the money they owed (to owe) . us.
62. Australian ministers pressed ( to press) .. big cuts .. subsidies to farmers.
63. The Wentworths have sold their business . huge profit.
64. We regret we are not a position to extend you any more credit.
65. GNP measures the value of output in a given period current prices.
66. She put an interesting proposal.
67. We put .. the meeting till next week.
68. We refer . your advertisement in this months edition of Fashion Plus.
69. Unfortunately we relied (to rely) .. a single supplier.
70. It has taken them a month to respond .. our letter.
71. Stock prices dropped . response the take-over.
72. You are responsible . checking the machines at least once a week.
73. The truck broke down and this has resulted ( to result) some unavoidable delay.
74. As a result . adverse publicity, their sales went down.
75. By loosening restrictions .. foreign investment the turnover of the sector can double.
76. The rise interest rates has had a considerable effect . sales.
77. The price index rose (to rise) an annual rate of over 12% in March but dropped
.. 4.8% in May.
78. His redundancy money ran (to run) . after six months and he was not entitled
further benefits.
79. If I do not receive your reply .. return I will be forced to approach an alternative
supplier.
80. Jim managed to sell the tractors . a premium price . $15,000.
81. The new range was so popular that the shop sold (to sell) .. in 2 days.
82. The company plans to set .. subsidiaries in Singapore.
83. The company we acquired specialises .. chemicals.
84. Last year they shut (to shut) . the factory.
85. I hope they can find a solution the storage problem soon.
86. NOW stands .. negotiable order of withdrawal.
87. I stood (to stand) Claire while she was away at the conference.
88. Prices are subject .. change as the market for raw materials is very unstable at present.
65
89. We are looking for a manufacturer who could supply us .. a wide range sweaters
90. I dont think Im very susceptible .. advertising.
91. We have over 500 carpets stock in our warehouse.
92. They thought (to think) it . for a week before making a decision.
93. You should take an additional policy covering you against accidental damage.
94. By taking (to take) them . we shall gain access new markets.
95. We had to take . extra staff during the holiday season.
96. Sales really took (to take) .. when the product was mentioned on TV.
97. He decided not to take . the option.
98. My plane took (to take) . 4 hours late because of the fog.
99. The goods were damaged transit.
66
1. Igei vonzatok
account for something szmoz ad, magyarzatul szolgl valamirl

accuse someone of something vdol valakit valamivel
allow for something lehetv tesz valamit
apologise to someone for something elnzst kr valakitl valamirt
appeal to someone tetszik valakinek
argue with someone about/over something vitatkozik valakivel valamirl
attribute something to something tulajdont valamit valaminek
base something on something alapoz valamit valamire
benefit from something elnyhz jut / hasznot hz valamibl
beware of vakodik valamitl
blame someone for something hibztat valakit valamirt
blame something on someone hibztat valakit valamirt
cater for something/someone gondoskodik valamirl / valakirl
charge someone with something vdol valakit valamirt
charge someone for something megfizettet (felszmol) valakivel valamit
coincide with egybeesik valamivel
comply with something teljest, eleget tesz valaminek
concentrate on something koncentrl valamire
confide in someone megbzik valakiben
consist of something ll valamibl
contribute to something hozzjrul valamihez
deal in something kereskedik valamivel
deal with something foglalkozik valamivel
depend on something fgg valamitl
differ from something klnbzik valamitl
distinguish one thing from another megklnbztet valamit valamitl
hint at something cloz valamire
impose something on something / someone rknyszert valamit valamire / valakire
insist on something ragaszkodik valamihez
insure something against something biztost valamit valami ellen
involve someone in something belekever / belernt / belevesz valakit
valamibe
laugh at something nevet valamin
object to something ellenez valamit
pay for something fizet valamirt
prefer one thing to another thing jobban kedvel valamit valaminl
protest against something tiltakozik valami ellen
profit from something profitl valamibl
react to something reagl valamire
refer to something hivatkozik valamire
remind someone of something emlkeztet valakit valamire
resign from something lemond (posztrl)
resort to something folyamodik valamihez
result from addik valamibl
result in something eredmnyez valamit
see to something gondoskodik valamirl
67
specialise in something szakosodik valamire
succeed in something sikerre visz valamit
suffer from something szenved valamitl
supply someone with something ellt valakit valamivel
suspect someone of something gyanst valakit valamivel
warn someone about/of something figyelmeztet valakit valamire
2. Fnvi vonzatok
access to something hozzfrs valamihez

agreement on something megllapods valamiben
alternative to something alternatva valamire
approach to something megkzeltse valaminek
ban on something betiltsa valaminek
contribution to something hozzjruls valamihez
control over something ellenrzs valami fltt
damage to something kr valamiben
demand for something igny / kereslet valamire
dependence on something fggsg valamitl
effect on something hats valamire
embargo on something embarg valamire
example of something plda valamire
exception to something kivtel valami all
influence on hats valamire
insistence on something ragaszkods valamihez
protest against something tiltakozs valami ellen
provision for gondoskods valamirl
reaction to something reakci valamire
reason for something indok / magyarzat valamire
reference to something hivatkozs valamire
responsibility for something felelssg valami irnt
restriction on korltozsa valaminek
solution to megolds valamire
tax on ad valamire
threat to fenyegets valamire
68
3. Mellknvi vonzatok
accustomed to hozz van szokva valamihez

attentive to something figyelmes, kszsges
aware of something tudatban van valaminek
bad at something rossz valamiben
capable of something kpes valamire
characteristic of something jellemz valamire
commensurate with arnyos valamivel
dependent on something fgg valamitl
different from something klnbz valamitl
experienced in something tapasztalt valamiben
exposed to something ki van tve valaminek
grateful for something hls valamirt
grateful to someone hls valakinek
impervious to something rzketlen valami irnt
inclined to something hajlamos valamire
incompatible with something nem sszeegyeztethet valamivel
indifferent to something kzmbs valamire
interested in something rdekldik valami irnt
irrespective of something fggetlenl valamitl
liable for something felels valamirt
liable to something ki van tve valaminek
liable to taxation adkteles (ad al esik)
pleased with something rl valaminek
prepared for something fel van kszlve valamire
successful in something sikeres valamiben
surprised at something meg van lepve valamin
used to something hozz van szokva valamihez
worried about something aggdik valami miatt
69
1. Commerce
1. Functions of Commerce
During the process of marketing and distribution, merchandise usually passes through the hands of
one or more intermediaries between the producer and the consumer. Commerce provides the
important links between the producer and consumer.
Commerce can be divided into two distinct areas: trade and services to trade.
Trade is the process of changing ownership. Traders are the businesses directly involved in the
buying and selling of goods and services. Trade can either take place within a country (home
trade) or between countries (foreign trade). Home trade involves the activities of wholesalers
and retailers. Foreign trade involves importers (who buy goods from other countries) and
exporters (who sell goods to other countries).
Services to trade are the commercial activities that assist trade in the job of selling goods and
services.
The activities that provide these services are:
1. Banking: providing short-term finance and providing facilities for easy payment transfer.
2. Finance: Various institutions (e.g. the Stock Exchange) providing long-term finance for
industry, commerce and consumer credit.
3. Insurance: Spreads the risks faced by industrial and commercial businesses.
4. Transport: It enables movement of commodities from one place to another.
5. Communications:
a) Postal- transfer of written communications through mail services.
b) Telecommunications - immediate distance transfer of written, verbal or data
communications by electronic devices.
c) Advertising - provides potential customers with information about goods and services
available.
2. Distributions channels
Vertical Marketing Systems: To be efficient, members of the distribution channel need to

cooperate closely with one another. This need has given rise in recent years to the development of
the vertical marketing system (VMS) - a centrally programmed and managed distribution system
that supplies or otherwise serves a group of stores or other businesses. The VMS is designed to
profit from economies of sale and to maximize the marketing impact of all the stores in its chain.
Sears Roebuck, which owns the manufacturers of many products sold in its store, is one type of
VMS called a corporate marketing system. Others include administered systems, like
Magnovox, which, as the dominant channel member, gains strong retailer support because the
traditional strength of the brand's reputation; and contractual systems, like IGA Food Stores,
which is a voluntary chain of independent members sponsored by a single wholesaler.
Other types of contractual systems include retail cooperatives, which set up their own
wholesaling operations to better compete with chains, and franchises, like Wendy's or PIP Printing,
70
in which dealers (franchisees) pay a fee to operate under the guidelines and the direction of the
manufacturer (franchisor).
The VMS offers both manufacturers and retailers numerous advantages: reduction of
nonessential product offerings; streamlining of product and information flow; reduced duplication
of efforts; standardization of record keeping; centralized coordination of marketing efforts; and
both substantial savings and continuity in advertising.
3. Wholesale trade
Producers need to sell their products in large quantities to enable them to carry out mass production
and enjoy economies of scale. But many retailers cannot buy large quantities that manufacturers
want to sell. Wholesalers bridge the gap between producers and retailers by buying in large
quantities and selling in smaller, more convenient lots to the retailer.
4. Functions of the wholesalers
1. Acting as intermediary: The wholesaler is positioned between the producer and the retailer.
However, there are exceptions where the producer will sell direct to the retailer, or even straight to
the consumer, by-passing both the wholesaler and the retailer.
2. Breaking of bulk: Buying in large quantities from the producer and selling in smaller lots,
usually to the retailer.
3. Taking on risks: Predicting market trends and buying ahead of demand. There is always the risk
that the price of a finished product may fall or the product may not sell. If the wholesaler buys
goods immediately they have been manufactured, then the risks will no longer be borne by the
manufacturer but by the wholesaler.
4. Warehousing: By storing goods the wholesaler saves space for both the producer and the
retailer.
5. Offering credit: The wholesaler may supply goods and allow the retailer to pay at some later
date (trade credit). This gives the retailer the opportunity to possibly sell the goods before he pays
for them.
5. Types of wholesaler
There are three basic forms of wholesaler:
1. General wholesalers operate from large warehouses sited for convenient access from many
local towns. They will allow retailers credit and will also deliver goods to their shops.
2. Cash and carry wholesalers do not allow credit and do not deliver goods: Retailers come to
warehouses, select goods, pay for them arid provide their own transport.
3. Co-operative Wholesale Society {CWS) supplies its own retail outlets, often obtaining goods
from its own factories.
6. Retail Trade
The retailer is the last stage in the passage of goods from the producer to the consumer. In this
position the retailer performs a number of important functions:
71
l. Outlet: The retailer performs a valuable service to the producer by providing him with an outlet
for his products, thus saving the producer from the need to market his own goods.
2. Stock: The retailer holds stock which the consumer can purchase locally in small, convenient
quantities.
3. Choice: The consumer is able to choose from the variety of products of different producers
offered by the retailer.
4. Information and advice: Retailers' expert knowledge and experience enable them to advise and
inform customers on quality and suitability of products.
5 Feedback: The retailer provides a feedback of consumer responses to the wholesalers and
producers. This helps the producer to become aware of what the consumer market wants, and also
helps to ensure that consumers' requirements are satisfied.
7. Trade transactions
7.1 Inquiries: A trade transaction usually starts with an enquiry. Inquiries are written when you
want to buy something or get some information about a product or a range of products which seems
likely to be of interest. An inquiry may be general, when you ask for a catalogue or price list; or
specific, when you know exactly which of the firm's products you are interested in, and you ask for
details.
In a general inquiryespecially if you send it to a firm that you have not yet done business with
you should state why you need the information and how you obtained the firm's name. (You may
have heard about the firm from another company, or have seen their products at a trade exhibition,
or talked to a representative of the firm.) Some details of your own business should also be
included.
In a specific inquiry you must ask about all the details that are essential for you to know.
Remember to include the following points:
(1) Describe the goods in detail.
(2) State the quantity that you intend to buy.
(3) Ask for a quotation even if you know the price (for example, from the catalogue). Prices may be
open to negotiation, or a reduction may be asked for when large quantities are bought or the terms
of payment are favourable.
(4) Make it clear what the terms of payment and the method of delivery could be. (For example,
you ask for GIF Rijeka prices and say you usually pay by a L/C.)
(5) It is also important to find out about the time of delivery.
(6) In some cases you may ask for samples or patterns.
7.2 Offers: The price and terms under which a company is willing to sell goods is called an offer. It
usually includes the description, the quantity, quality, and the price of the goods, as well as the
delivery or shipment period, and the delivery and payment terms (who pays the cost of delivery or
shipment and insurance, and how payment will be made). An offer may be firm (for a specified
period) or may not be firm (in this case it is usually called a quotation).
When a certain piece of work is to be done or services are offered, you may not be able to quote the
price exactly. In such cases you send an estimate. Specifications are sent when a detailed technical
description of certain goods (e.g. machinery) is needed or the description of construction work is
required.
A tender is a special kind of offer. It is sent in response to an invitation to submit such an offer in
competition with other companies. It is usually public bodies or governments that invite tenders (in
72
form of advertisement) for large-scale business deals, for example, construction work. Tenders are
to be submitted by a fixed date, and the advertiser will select the best offer.
When an offer is not an answer to an inquiry, it is sometimes called a sales letter or circular. These
are means of advertising a product or service. A sales letter is sent to prospective buyers who you
may never have done business with. Since the aim of a sales letter is to convince the reader that he
should do business with you, it is essential that the letter should attract his attention. Remember
how many circulars or sales letters find their way into the waste paper basket without being read.
It is also possible to attach an order form to the offer.
7.3 Orders: When you know where and what you want to buy and how much it will cost, you can
place an order. Writing an order is extremely simple (often all that you have to do is to fill in an
order form) but it must be done accurately. Every detail should be checked again and again, for if
you make a mistake your company will legally be liable to pay for the things you have ordered.
Incompleteness or errors may also mean further correspondence, shipping delay, re-packing or loss
of business. For example, an error in quoting a catalogue number, or a mistyped figure in the
quantity column can cause trouble which may be impossible to put right later.
Most orders will require detailed information about the following:
(1) the description, quantity, and quality, as well as the price of the goods
(2) method of transport, packing, delivery and insurance (E.g. 'We should like these sent by sea
freight, GIF Rijeka')
(3) method of payment (E.g. 'We are paying by L/C and claim your discount of 3%')
(4) any special documents which may be required (e.g. a Consular Invoice or any other documents
necessary to satisfy import regulations. Remember that it is the buyer's responsibility to ask for
them.)
(5) the length of time during which you are prepared to wait for delivery (E.g. 'Delivery must be
made by the 15th March by the latest.')
7.4 Complaints: Unfortunately, errors may occur in any business transaction. Delays are often
unavoidable, the goods supplied may have some defect or deficiency, or accidents may happen.
The most important thing is to complain as soon as the error becomes apparent. These are the most
frequent reasons for complaints:
(1) The wrong goods have been delivered.
(2) You are not satisfied with the quality of the goods.
(3) The goods have been sent in inadequate (insufficient) quantity.
(4) There was something wrong with the packing. (You should remember, however, that if the
goods were damaged by accident during transportation, there is a question of an insurance claim.)
(5) There was a delay in delivery.
(6) There is an error in the invoice.
When you write a complaint, remember the following points:
(1) The complaint must be polite and tactful. You mustn't make anyone angry.
(2) Explain your complaint clearly and precisely. Be very specific in pointing out what is wrong.
(3) You can either suggest what should be done, or ask the seller what he can do about your
complaint.
(4) If you do not receive a reasonably early reply to your complaint, you will have to write a
reminder or a "stronger" letter.
73
7.5 Contracts: The contract is an essential document of a business deal since it includes all the
particulars stipulated1 by the two contracting parties beforehand. A contract is generally binding2
for both parties.
A typical export sales contract includes the following details.
The seller's registered name and address.

The buyer's registered name and address.
Purpose of the contract.
The number and quantity of goods precisely and fully described.
Price.
Terms of delivery. It is important that the correct Incoterm is selected.
Terms of payment, for example, open account3, cash with order, letter of credit, documents
against payment or acceptance.
Delivery period.
Methods of shipment
Method of packing. It is desirable that both parties are fully aware and agree on the packing
specification to ensure no dispute later arises, as packing must conform to international
standards and must comply with customs regulations.
Cargo insurance policy.
Shipping/freight/documentary requirements and/or instructions. This includes the marking4 of
cargo.
Contract conditions, for example, sale, delivery, performance (quality) of goods, arbitration5
etc. Arbitration tends to speed the settlement of any disputes without costly litigation.
The contract must include the law of the country under which it will be enforced.
Signature by both parties.
Obviously the terms of the export sales contract will vary by circumstance but other areas which it
may feature include agency involvement, after-sales activities such as supply of spares, product
servicing, training, advertising promotion cost and so on. A copy of the contract should be retained
by each party.
Other types of contracts:
Contract of employment (munkaszerzds)

Agency agreement (kpviseli szerzds)
Licensing agreement
Franchise agreement
Credit contract (hitelszerzds)
7.6 Payment in Foreign Trade
7.6.1 The cheque: A cheque (in American English check) is a written order by a person (the
drawer = kibocsjt) to a bank (the drawee = utalvnyozott bank), usually made on a special form
1
stipulate szerzdsben kikt
2
binding jog szerint ktelez rvny
3
open account - hitelszmla
4
marking (to mark) rujelzssel ellt
5
arbitration - dntbrskods
74
supplied by the bank to pay a certain sum of money from one's bank account to another person (the
payee = utalvnyos).
Payments of large sums of money are usually made by cheque rather than in cash, and the drawer
of the cheque will wish to make sure that the cheque does not fall into the wrong hands. A cheque
made out as payable on demand (an open cheque = nylt csekk) can be cashed or negotiated
(forgatni) by any person who holds it. To minimise risks (loss, theft) it is usual to cross the cheque.
A crossed cheque (keresztezett csekk) can only be paid into a bank account. The crossing is two
parallel lines placed across the cheque. This is called general crossing. Special crossing means that
the drawer or owner of the cheque writes special instructions between the lines: 'a/c Payee only'
(the cheque can be paid only into the account of the payee) or 'a/c payee only Barclays Bank' (the
cheque can be paid only in a certain bank), or 'not negotiable' (protecting against loss or theft).
7.6.2 Bill of Exchange (idegenvlt)
A bill of exchange is an unconditional order in writing, addressed by one person to another and
signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at
a fixed future time, a certain sum of money to a specified person or to the bearer. The person
drawing the bill is called the drawer (intzvnyez), the person to whom the bill is addressed is
called the drawee (intzvnyezett) (who becomes acceptor when he has accepted the bill), the
person to whom it is payable is called the payee (rendelvnyes), and anyone signing the bill on the
back is called the endorser. If the endorser endorses the bill to a specified person that person is
known as the endorsee.
7.6.3. Terms of payment
Payment in advance (cash with order): the best term for the seller, since he gets the money for the
goods together with the order. It is usual to give a special discount on the price of the goods under
this term.
Payment after delivery (credit transactions). This is the worst term for the seller, but of course
very advantageous for the buyer. The seller will only accept this term when competition is too
strong.
Payment by means of Letter of Credit (L/C): The buyer instructs his bank to make payment to
the seller if the seller presents the necessary documents (usually Commercial Invoice, Bill of
Lading, Insurance Certificate) within a certain time limit.
Documentary Collection: The sellers despatches the goods to buyer and sends the documents to
the buyer's bank. The buyer's bank will release the documents to the buyer if the buyer pays or
accepts a B/E.
75
2. International Trade
1. Introduction
International trade - the export and import of goods, services and intellectual property - enables the
countries involved to offer a wider range of goods. A country's trade policy involves measures to regulate
foreign trade. The balance of trade (BOT) shows a country's trade flow. If it is in deficit, governments
often take protectionist measures to make their own producers competitive on the world market. They
can limit free trade by imposing e.g. tariffs or quotas on imports. Another barrier to free trade is the
granting of subsidies to domestic producers to boost exports. Non-tariff measures like national standards,
slow administration and sanitary regulations are also considered protectionist tools.
1.2 Arguments for protectionism

The main argument against free trade is definitely the defence of the country's economy - for example
new, infant industries must be protected from foreign competition
The other major argument is the need to save jobs - workers in certain industries are in danger of losing
their jobs owing to foreign imports,
A state may introduce anti-dumping measures to protect domestic producers
1.3 Disadvantages of protectionism

It results in higher consumer prices, and so stimulates inflation
It may subsidise industries and companies that are operating inefficiently
It reduces the competitiveness of third world countries, preventing them from entering the world market.
2. International organisations
2.1 The World Bank
The World Bank, whose official name is the International Bank for Reconstruction and
Development (IBRD) was established as a result of the Bretton Woods Agreement in 1944 in order
to aid countries suffering from the destruction of the war.
In fact the World Bank is a pair of institutions, the IBRD and the International Development
Association (IDA), which obtains money from developed nations and lends out the funds to the
poorest Less Developed Countries (LDCs) at concessionary rates. A third institution, the
International Finance Corporation (IFC) is affiliated to the World Bank and provides risk capital to
the private sector in countries where enough private capital cannot be raised. It makes loans for five
to fifteen years, and does not demand a government guarantee that loans will be repaid. Hungary
became a member of the IFC in 1985. The Bank is capitalised by lending nations who subscribe in
proportion to their economic importance.
Hungary has been member of the World Bank since 1982. This membership has brought about a lot
of advantages for the country. Before the accession, Hungarian enterprises could not take part in
investment projects financed by the World Bank and did not get World Bank loans. Since the
accession Hungary has participated in a large number of tenders invited by the World Bank and our
companies have been awarded several contracts. These successes have not only meant business but
have won significant goodwill for Hungary's products.
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2.2 The International Monetary Fund (IMF)
The IMF was also set up as a result of Bretton Woods. Whereas the World Bank is concerned
mainly with lending capital, the IMF's basic function is to encourage world trade by improving
trade relations between countries. Hence it tries to ensure stable exchange rates and to discourage
devaluation without consultation. It also provides short-term credit for countries with temporary
balance-of-payments difficulties. Member countries subscribe by lending their currencies to the
IMF. The IMF then lends these funds to help countries. In recent years, the IMF played a useful
role in organising a co-operative response to international debt crises. Hungary joined the IMF in
July 1982.
Special Drawing Rights SDR (klnleges lehvsi jogok) is a international currency reserve system.
Drawing rights are the original rights of countries who are members of the IMF, and who have a
temporarily adverse balance of payments, to buy limited supplies of foreign currencies from a
reserve collected and managed by the Fund.
2.3 General Agreement on Tariffs and Trade (GATT) and the World Trade Organisation
(WTO)
GATT began in 1947 with 23 member countries. The main objective was to liberalise international
trade creating a basic set of rules under which trade negotiations took place and a mechanism for
ensuring the implementation of these rules. It used to function both as a multilateral treaty that laid
down a common code of conduct in international trade and trade relations, and as a forum for
negotiation and consultation to overcome trade problems and reduce trade barriers.
GATT laid down the following principles:
1. Countries should lower trade barriers.
2. Countries must adhere to the MOST FAVOURED NATION CLAUSE (MFN). This clause
requires that if a country grants a tariff reduction to another country, it must grant the same
concession to all other countries.
3. When a country increases its tariff above the agreed, it must compensate its trading partners for
economic injury.
4. Trade conflicts should be settled by consultations and arbitration. The agreement also laid down
principles to assist the trade of developing countries.
The World Trade Organisation came into being in 1995. One of the youngest of the international
organisations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT).
The WTO has more than 130 members, accounting for over 90% of world trade. Over 30 others are
negotiating membership.
The WTOs overriding objective is to help trade flow smoothly, freely, fairly and predictably.
It does this by:

Administering trade agreements
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Acting as a forum for trade negotiations
Settling trade disputes
Reviewing national trade policies
Assisting developing countries in trade policy issues, through technical assistance and
training programmes
Co-operating with other international organisations
2.4 The Organisation for Economic Co-operation and Development (OECD)
The OECD groups 29 member countries in an organisation that, most importantly, provides
governments a setting in which to discuss, develop and perfect economic and social policy. They
compare experiences, seek answers to common problems and work to co-ordinate domestic and
international policies that increasingly in today's globalised world must form a web of even practice
across nations. Their exchanges may lead to agreements to act in a formal way - for example, by
establishing legally-binding codes for free flow of capital and services, agreements to crack down
on bribery or to end subsidies for shipbuilding. But more often, their discussion makes for better
informed work within their own governments on the spectrum of public policy and clarifies the
impact of national policies on the international community. And it offers a chance to reflect and
exchange perspectives with other countries similar to their own.
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3. Marketing
1. Definition of marketing
Marketing is the management process responsible for identifying, anticipating and satisfying
customers requirements profitably. Marketers have to identify or anticipate consumer needs,
develop products or services that meet the needs better than any competing products or services.
They also need to persuade target customers to try the product or service. In the long term they may
need to modify their products or services to satisfy changes in consumer needs and market
conditions. Marketers can design particular features, attractive packaging, and effective advertising
that will influence consumers' wants. Marketing thus combines market research, new product
development, distribution, advertising, promotion, product improvement and so on.
2. The selling concept versus the marketing concept
Most management and marketing writers now distinguish between selling and marketing . The
selling concept assumes that resisting consumers have to be persuaded by vigorous hard-selling
techniques to buy non-essential goods and services. Products are sold rather than bought. The
marketing concept, on the contrary, assumes that a company's choice of what goods and services to
offer should be based and the goal of satisfying consumers' needs.
3. Identifying market opportunities supply and demand, market research
Marketers need to take into the account the factors of supply and demand. Supply refers to the
quantity of a product that a firm or industry is willing to produce at a specified price. As the selling
price increases, firms will produce more of the product because higher prices mean greater profits.
Demand refers to the quantity of a product that buyers are willing to buy at a specified price. As the
selling price increases, people will buy less of the product because higher prices take more of their
income. The market price is normally determined by the forces of supply and demand.
Marketers are always looking for market opportunities - profitable possibilities of filling unsatisfied
needs or creating new ones in areas in which the company is likely to enjoy a competitive or
differential advantage (an advantage over competitors in terms of quality, price distribution etc.)
Rather than risk launching a product or service only on the basis of intuition, most companies
undertake market research. They collect and analyse information about the size of the potential
market, about consumers reactions to particular product and service features, and so on
There are four basic research methods used by marketers:
Observation: Researchers monitor particular situations or actions of consumers. Today

computerised systems allow marketers to observe consumers' preferences.
Survey: When conducting a survey marketers need to ask questions about new marketing ideas,
product or service preferences. The heart of any survey is a questionnaire that is mailed to the
consumers or is used as the basis of a telephone or personal interview.
Focus groups: Members of the target market (6 to 15 individuals) are invited to discuss a
product concept.
Experimental research: This can be used to compare responses to the products and services
under different circumstances.
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Market segmentation is used to divide the market into distinct groups of buyers who have different
requirements or buying habits. Once a target market has been identified and market research has
been conducted, the company has to decide what products or services offer.
4. The marketing mix
Once the basic offer, e.g. a product concept has been established, the company has to think about
the marketing mix, i.e., all the various elements of a marketing programme. The best known
classification of these elements is the `4 Ps' : product, (quality, features, style, brand name, size,
packaging, services and guarantee), place, (distribution channels, locations of points of sale,
transport, inventory size, etc.) promotion (advertising; publicity, sales promotion, and personal
selling, ) and price (basic list price, discounts, the length of payment period, possible credit terms
and so on). The marketing mix can. be changed during the life of the product if necessary.
5. Market structure and competition
When developing and marketing products, companies need to consider competition in the given
target market.
Market leader: This is the highest market share company which retains its position by trying to
expand the total market or its market penetration, for example through an aggressive advertising
campaign.
Market challenger: One or more non-market leaders which aggressively attack for additional
market share.
Market follower: These are low share competitors without the resources to challenge or seriously
contend for market leadership.
6. The promotion mix/marketing communications
Even a good, attractively priced product has to be made known to its target customers. During the
introduction and growth stages of the standard product life cycle, the producer or the company has
to develop product or brand awareness, inform potential customers or the other members of the
distribution channel.
Advertising informs consumers about the existence and benefits of products and services, and
attempts to persuade them to buy them. Informative advertising tells us what goods are
available and gives the facts about them so that a consumer can choose the article that suits him
best. Competitive or persuasive advertising tries to persuade people to buy the goods whether or
not they want them.
Sales promotion such as free samples, coupons, price reductions, competitions, and so on are
temporary tactics designed to stimulate the sales of the product. Free samples combined with
advertising may generate the initial trial of a new product in the introductory stage of the
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product life-cycle. During the maturity and the decline stages marketers can try out promotional
tactics such as reduced price packs, discounts, competitions, free gifts, premiums, coupons,
special offers, games, and so on.
Public Relations (PR) is concerned with maintaining, improving or protecting the image of a
company or product. One of the most important elements of PR is publicity which is any
mention of the companys or products name that is not paid for. Many companies attempt to
place stories (e.g. news releases) or information in news media to attract attention to a product
or service. Publicity can have a huge impact on public awareness that could not be achieved by
advertising, or at least not without an enormous cost. A lot of research shows that people are
more likely to read and believe publicity than advertising.
Personal selling is said to be quite expensive. Sales people spread information about the
companys products and services and assist customers with possible technical problems.
7. Advertising media
Advertising media can be divided into the following categories:
The print media (newspapers, magazines, direct mail)

The broadcast media ( radio and television)
Other advertising media: outdoor advertising ( posters, illuminated signs) transit advertising,
point of purchase displays in shops, and so on.
8. Branding
Branded goods are marked with a distinctive name and/or design. A brand is a name, term, sign,
symbol, or design, or a combination of these to identify the goods or services of one seller, or a
group of sellers. Accordingly, there are product brands and service brands. One of the most
important functions of branding is to differentiate the given products or services from those of
competitors. This is referred to as brand differentiation.
A brand name is that part of a brand which can be vocalized the utterable. Examples are Avon,
Chevrolet, Disneyland, American Express etc. A brand mark is that part of a brand which can be
recognized but is not utterable, such as a symbol, design, or distinctive coloring or lettering.
Examples are the Metro-Goldwyn-Mayer lion, and the red K on a Kodak film box. A brand label
is a simple tag or complex design (graphics) attached to the product. The label might carry only the
brand name, and also a great deal of information.
Brand loyalty refers to the degree to which a consumer purchases a certain brand without
considering alternatives. On the other hand, the term brand switching is used to describe consumer
behaviour when consumers are not loyal to a specific brand in a given product category. They are
ready to purchase alternative brands as well.
Brand image is the set of beliefs consumers hold about a particular brand. Brand equity refers to
the value of how such people as consumers, distributors, and sales people think and feel about the
brand relative to its competitors over a period of time.
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4. Globalisation
1. Definition and major characteristics
Globalisation can be defined as the internationalisation of economic activities. It is an unstoppable

process which started at the beginning of the modern age and it can be characterised by three
important trends as opposed to the previous pattern of cross border economic relations:
There is a trend toward competition not only among companies, but also among industrial
centres.
The opening of the markets of Eastern Europe and Asia to the rest of the world, the introduction
of single markets: NAFTA, EU.
The rapid pace of technological innovation in the fields of telecommunications and data
processing.
2. Multinational companies
As mentioned earlier, globalisation promotes competition among industrial centres, so individual

companies face the challenge posed by a growing number of competitors around the globe. County
borders can no longer protect domestic companies from competition. In order to enhance their
competitive positions in global markets companies need to merge this process has led to the
emergence of multinational companies.
3. Telecommunication and IT (information technology).
Telecommunication and IT have made significant contributions to the process of globalisation.

Information and in its wake goods and services - is moving around the globe at lightning speed,
distance is becoming irrelevant for consumers and companies in the global village Powerful
global networks spanning the globe enable the delivery of services that reach far beyond national
and continental boundaries. Telecommunications and IT help companies to optimise their
planning, production, and procurement processes, what is more these new industries have created a
vast array of new workplaces.
4. Financial markets
Financial markets (currency, equity markets) have merged into global markets as a result of
convertibility, the floating of exchange rates, technological advancements in the areas of
communications and data processing. The volume of transactions on the international currency
markets exceeds that of the global goods many times over. The globalisation of financial markets
make it easier for companies to raise capital for expansion
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5. The advantages of globalisation
contributes to the efficiency of economic activities. This will allow world output to expand in
the form of additional economic growth.
increases competition. Competition generally leads to lower prices and higher quality and a
wider range of goods and services.
improves living standards.
large multinational companies create jobs by the thousands, lowering unemployment.
promotes innovation and the application of different technologies.
6. Disadvantages of globalisation
Giant multinational companies drive small local companies out of the market. Local companies
go bankrupt as they cannot compete with multinationals. This process leads to job losses.
It is true that multinational companies create thousands of jobs, but they pay workers minimum
salaries and wages especially in poor countries. They take advantage of cheap labour in an
effort to maximize profits.
Multinational companies usually specialize in producing highly standardized global goods and
services. That is how they destroy the cultural uniqueness of individual regions.
Large scale production has a negative impact on the environment.
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5. The European Union
The European Union (EU) is a supranational and intergovernmental union of 27 democratic

member states. It was established under that name in 1992 by the Maastricht Treaty.
Three countries, Switzerland, Iceland and Norway, have decided to stay out of the European Union.
In May 2004 ten applicant countries joined. The next phase of enlargement took place in January 2007
with the accession of Bulgaria and Romania.
The Four Freedoms
The free movement of goods, services, labour and capital forms part of the substantive law of the EU.
The Schengen Agreement abolished passport control and customs checks on many of the EU's
internal borders, creating a single space of mobility for EU citizens to live, travel, work and invest.
While the free movement of goods, services and capital has more or less been implemented, after the
enlargement of 2004, only 3 "old members" - Sweden , the UK and Ireland - allowed foreign workers
to take on jobs without a work permit. Most of the old members temporarily prohibit the inflow of
foreign workers, because they are afraid of the mass migration of cheap labour.
The single currency
The euro has been the official currency of the European Union in several member states since
1999, although coins and bank notes weren't introduced until 1 January 2002. Some of the old member
countries decided against joining the eurozone at that time. Most of the new members are preparing for
the adoption of the euro. The single currency is managed by the European Central Bank.
Countries wishing to accede to the eurozone have to meet certain requirements: the Maastricht criteria:
Price stability: inflation must be under the average of the three countries with the lowest inflation,
plus 1.5%.
The long-term interest rates should be within 2% of the average of the three countries with
the lowest inflation.
The public deficit shouldn't exceed 3 % of GDP
The national debt shouldn't exceed 60 % of GDP
ERM II (Exchange Rate Mechanism II)
Joining ERM II ensures that the participating countries orient their policies towards stability and
convergence, which will help them in their efforts to adopt the euro. A central rate is determined
between the euro and each participating non-euro area currency, with a standard fluctuation band of
15% above and below that rate, and each participating country has to hold its currency in this band
without the intervention of the National Bank for two consecutive years. Hungary has not joined the
system yet.
As a result of the introduction of the euro, transaction costs and exchange rate risks are
eliminated (there is no need to exchange the national currency) and prices become more transparent.
Apart from contributing to macroeconomic stability, it has further favourable economic impacts by
attracting foreign direct investment (FDI).
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Common Agricultural Policy
The Common Agricultural Policy (CAP) is a protectionist policy guaranteeing a minimum price to
producers and also giving direct aid to them.
Some countries in the EU have larger agricultural sectors than others, notably Spain, Poland
and Portugal, and consequently receive more money under the CAP. They are net recipients. Overall,
certain countries make net contributions, notably Germany, the Netherlands and the UK.
The enlargement of the EU in 2004 increased the number of farmers from 7 to 11 million, and it
also increased the agricultural land area by 30% and crop production by 10-20%.
The 2004 entrants into the EU gained immediate access to price support measures (export
refunds, intervention buying). However, direct payments to Hungary are being phased in over 10 years
(2004-2013), starting at 25% of the rate paid to old member countries in 2004.
Further enlargement
After the last enlargement (when Romania and Bulgaria joined the EU) the union remained open,
but countries wishing to join have to comply with strict requirements. Croatia and Turkey are the
official candidate countries which have started accession negotiations with the EU.
EU institutions
The European Council is made up of the Heads of State or Heads of Government and the
President of the European Commission assisted by the Foreign Ministers and a member of the
Commission. It meets twice a year in the capital of the member country whose head of state or
government is currently the President of the Council of Ministers. It does not make laws and it is
not involved in "routine" decision making but it does make key political decisions on many of the
most important, most sensitive, and most controversial matters facing the EU.
The Council is based in Brussels, is the real power behind the bureaucracy. It is the main decision-
making body. It is entrusted with deciding major policy issues for the EU.
The European Commission with its headquarters in Brussels, is the EU's watchdog or "civil
service". Its commissioners are nominated by the governments of the EU countries for five-year
renewable terms. The Commission has various duties, five of which are of particular importance:
Initiates EU policies.
Has major responsibilities with regard to the management, supervision and implementation
of EU policies.
Together with the Court of Justice ensures that EU law is respected.
Represents the EU in many of its external relations.
Acts as a mediator and conciliator.
The European Parliament is elected by direct universal suffrage. It normally sits in Strasbourg
where full plenary sessions, open to the press and public, are held for one week each month. The
representatives are seated in Parliament by political party, not nationality. It functions as a political
driving force and it is also a supervisory body with the power to approve the appointment of the
European Commission and to dismiss it on a censure motion carried by a two-thirds majority.
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The Court of Justice is the chief judicial body of the EU.
The EU and Hungary
Hungary concluded an Association Agreement with the EU Communities in December 1991,

which came into effect on 1 February 1994. The agreement covered trade-related issues, political
dialogue, legal approximation and other areas of cooperation, including industry, environment,
transport and customs, and aimed at establishing a free-trade area between the EU and Hungary. In
March 1994, Hungary was the first country of the region to formally apply for EU membership.
At the Luxembourg European Council in December 1997 it was finally decided to launch the
accession negotiations with six of the applicant countries, among them Hungary. The negotiations
with Hungary were launched on 30 March 1998. The European Council in Copenhagen on 13
December 2002 eventually concluded the negotiations with the ten countries mentioned previously
(including Hungary). It decided that these ten countries would become members of the EU from 1
May 2004. The Commission determined the most important short- and medium term priorities that
were to be tackled by Hungary to meet the political, economic and legal Copenhagen Criteria for
accession. The EU continuously monitored the accession preparations of Hungary.
The referendum on accession to the EU was held on 12 April 2003, four days before the Accession
Treaty was signed in Athens. Around 84 per cent of the Hungarian population voted in favour of EU
accession, while the participation was rather low with less than 46 per cent. On 16 April prime minister
Peter Medgyessy and foreign minister Laszl Kovcs signed the Accession Treaty in Athens.
Hungary, similarly to other new member countries, received transitional periods in certain areas, so
that it can have enough time to adopt and implement the Community legislation. The areas in question
include the free movement of services, capital and people, agriculture, environment, taxation, transport
and customs union. As regards the free movement of capital, Hungary has agreed to a transitional
arrangement in respect of the free movement of workers put forward by the EU. Restrictions on the
movement of labour from Hungary to the EU will apply for a minimum two-year period as of the date
of accession and may remain in force for a maximum of seven years. EU agricultural aid is scheduled to
be phased in until 2013 with 25 per cent in 2004, 30 per cent in 2005, 35 per cent in 2006, 40 per cent
in 2007 and 10 per cent increase every year from 2008. In the area of taxation, Hungary was granted
transitional periods until 31 December 2007 to continue applying a reduced VAT rate not lower than
12 per cent on the supply of certain heating products, on district heating services and restaurant
services. It may maintain a reduced VAT rate on the supply of natural gas and electricity until one year
after the date of accession.
Advantages of EU membership
Membership in the EU provides political stability, economic growth, accession to a market with 450
million inhabitants, global presence, business confidence, foreign direct investment (FDI) and
availability of structural funds. Hungary will definitely gain from the positive trade effects and
increased investment. As regards structural funds, however, the EU decided on only a gradual
opening up. Such regional fund would have provided billions of immediately available euros to help
revive the undeveloped eastern part of the country. The EU also wanted to keep its borders closed to
Hungarian job seekers and - to some extent - prevent the free movement of labour, which is one
of the most important symbolic aspects of membership. But the threat to EU citizens is exaggerated.
A Hungarian survey shows that only three per cent of the Hungarian workforce would consider
working in the EU, and as few as one per cent would actually go forward with such a plan.
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6. The Environment
1. The impact of industrial activity on the environment; global threats
Throughout history mankind has reaped the benefits of nature. But during the last century our earth changed
more rapidly than at any other time in history, primarily because of our careless interaction with its resources. Today,
in the wake of ever-increasing consumption and massive economic development, the ecological crisis has gone global.
Global problems - Air pollution
People all over the world breathe smog, sulphur dioxide, acid rain, carbon monoxide, and other
toxic pollutants every day as a result of industrial activity and the excessive use of cars, which emit
exhaust gases. The accumulation of gases in the atmosphere leads to the greenhouse effect and the
depletion of the ozone layer.
The build-up of gases may result in temperatures on earth increasing 2.2-5 degrees Celsius over the next century,
causing global warming.
Predictions include climatic changes leading to natural disasters, drought, floods, changes in agricultural patterns
and skin cancer. One major threat to the ozone layer is chlorofluorocarbons (CFCs).
Deforestation
The gradual reduction of forests in size is resulting in erosion, flooding, desertification and global warming. Rain
forests, which generate large amounts of oxygen, are being destroyed to harvest hardwood and to gain space for growing
plants and breeding animals.
Water pollution
10 percent of rivers worldwide are polluted and the oceans collect 6.5 million tonnes of litter per year. Less than 1
percent of all the water on earth is suitable for drinking, bathing, or growing plants.
Soil pollution
Agricultural activity contributes to the pollution of soil by using chemicals (fertilisers and pesti-
cides) to boost yields.
Overpopulation
If the current growth rate continues, world population will double over the next couple of decades. This process
accelerates the exhaustion of natural resources. In 2000 there were 6.3 billion people on the earth. It is an important
task to exploit renewable energy sources.
Waste accumulation
Huge amounts of hazardous waste are produced by the developed part of the world every year, part of which is
exported to the Third World. Households and industries also create piles of non-recyclable waste which are not able to
decompose in landfill sites.
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Oil shortage
With the increase in worldwide demand for oil, the price of oil products (e.g. petrol) is rising, posing serious
difficulties for oil-dependent economies. In fact, most of the feedstock (e.g. corn) for biofuels such as biodiesel and
ethanol is grown using the high-tech, oil-powered industrial methods of agriculture.
2. Social responsibility
Sustainable development, a notion referring to the interrelationship between businesses and the
environment, has been a major challenge for the past few decades. It describes a kind of
environmentally-friendly or green economic development that can be continued indefinitely,
because it means the exploitation of renewable natural resources instead of using (and depleting)
non-renewable energy resources.
Not only governments or international organisations are responsible for sustainable
development. It is the responsibility of everyone to preserve the earth through pollution
prevention (producing less waste), conservation of natural resources (using less energy, reusing
and recycling). Electric vehicles or at least unleaded petrol should be used, although the best
solution would be using public transport or riding bicycles. Household waste should be collected
separately for recycling purposes. Businesses and individuals should be forced through
legislation to take care of their environment better.
Businesses should be committed to environmental restoration and to applying green-marketing
strategies. They ought to choose environmentally preferable methods of resource extraction, use
alternative energy and water, engage in social activism and environmental education to help raise
community awareness of environmental issues. Fortunately, more and more companies claim to
be producing environmentally-friendly products. The motor industry has made successful attempts
to manufacture less polluting petrol-powered cars and more electric vehicles. Although over-
packaging is still a problem, more and more companies pay attention to using recycled or
biodegradable wrapping for their products, provide refills for their bottles, or offer deposit on
returning their containers.
3. Energy resources and waste management
Energy resources can be grouped as renewable and non-renewable. Non-renewable energy

resources are those whose supplies are limited, for example fossil fuels. Fossil fuels are oil, coal
and natural gas. They were once living plants and animals. The problem with fossil fuels is that
they produce carbon dioxide, the most important greenhouse gas, when they burn.
Alternative energy resources include solar energy, wind power, hydro power and geothermal
energy. A common characteristic of these energy resources is that all of them are renewable. The
only problem with solar energy is that it is hard to collect and to concentrate in large amounts.
Wind power has been used for centuries in the form of windmills. Today, aero-generators are widely
applied to convert wind energy into electric energy. Geothermal energy is not easy to utilise.
Unfortunately, these forms of energy are widely dispersed. Examples of such energy are molten
magma existing only a few miles below the surface, hot springs, running streams of nearly boiling
water. Hydro power provides more than a fifth of all the world's electricity.
The environmental awareness of the past three decades has prompted far better management of
solid and liquid wastes. In many countries it is prescribed by law to protect human health and the
environment from the potential hazards of waste disposal, to conserve energy and natural resources,
to reduce the amount of waste generated, and to ensure that wastes are managed in an
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environmentally sound manner. Handlers of hazardous waste must meet certain regulatory
requirements. Treatment, storage and disposal facilities must meet even more stringent
requirements, and must have a permit to operate. Landfills that collect household garbage are
predominantly regulated by local governments.
Another major development in waste management has been the emergence of recycling, which
has received wide public participation. As a result of recycling, the net solid waste disposals have
declined despite the growth in the economy and population. The term recycling refers to the process
of minimising waste generation by recovering and reprocessing usable products that might otherwise
become waste. Most paper can be recycled and made into new paper products, which helps save
forests. Recycled paper production reduces related air pollution and uses less energy. Plastics can
be recycled as well, for example PET bottles. Recyled plastic can be used to produce clothes.
Metals are made from minerals that are non-renewable. A ton of steel cans recycled saves 1.36
tons of iron ore. Glass is one of the easiest and best materials to recycle. It can be recycled completely,
meaning one kilogram of old glass can be turned into one kilogram of new glass, and it can be recycled
repeatedly without loss of quality to the new product.
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7. Work and Jobs
1. The labour market
There are two main features determining the labour market: the supply of labour and the demand for labour. The
quantity of labour available in a society depends on the size of the population, the age distribution and attitudes
concerning who should work, over what period and for how long each year. Employers, by increasing wages and
offering fringe benefits, can influence people's willingness to enter the labour market. At the same time low labour
costs in emerging countries threaten labour markets in the more developed part of the world. A recession in the
economy or the introduction of new technologies may also lead to a rise in unemployment. Governments have a
double task of both preserving jobs and reducing unemployment.
2. Types of unemployment
There are several types of unemployment, each caused by different circumstances: seasonal, frictional, structural,
cyclical and voluntary unemployment.
3. Some ways of reducing unemployment
Providing retraining schemes for those who have been dismissed and are willing to study in order to adapt
to the changes in the labour market
Offering tax allowances and subsidies to companies to set up businesses and create jobs in areas of high
unemployment. They can also be attracted by investment in public infrastructure.
Improving teleworking opportunities to overcome long distances and increase labour mobility.
Lowering unemployment benefits.
Giving incentives to companies which employ long-term unemployed.
Establishing efficient channels for informing people about vacancies.
4. Trade unions
These organisations of workers, especially in a particular trade or profession, have been created to act on behalf of
the employees. They represent their interests by/serving as a communication channel between them and the
management.
5. The black economy
People working in cash-in-hand jobs are employed illegally. The grey economy also constitutes a substantial part of
the economy.
6. The labour market in the EU

\
In certain countries of the EU the free movement of labour is temporarily restricted for citizens of the new
member countries, out of fear that cheap labour will raise unemployment. Therefore in these countries foreign job-
takers are obliged to apply for a work permit.
In countries which have fully opened their labour market, there is a large number of people who have chosen to
work there for the sake of better job opportunities and career prospects. The new member countries are
increasingly suffering from a brain drain i.e. the loss of highly-qualified workers.
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7. Recruitment, looking for a job
Companies may choose to outsource some functions to freelancers, however, many organizations
look for ways of having in-house staff, for example:
Offering full-time jobs. Employees work at least 36 hours a week.

Employing temporary workers who only work for short periods when they are needed, either on a
temporary contract with a company, or through
a temp agency.
Employing part-time workers who work less than a full
working week.
Job sharing is an option as well, where two people share a particular
job, each of them working part-time.
When letting people go, companies only have to give them notice, and redundancy payments
depending on the employment contract and on the length of time employees spent working for the
company.
The government pays unemployment benefits (the money paid to people without jobs) for a fixed
period of time depending on the countrys labour law.
When a company needs to recruit or employ new people, it may decide to advertise the job or
position in the appointments section of a newspaper or on the internet. People who are interested
can then apply for the job by sending in a letter of application or covering letter (US cover
letter) and a curriculum vitae or CV (US resume) containing details of their education and
experience. A company may also ask candidates to complete a standard application form. The
company's Human Resources department will then select the most suitable applications and
prepare a short list of candidates or applicants, who are invited to attend an interview. Another
way for a company to hire is by using the services of a recruitment agency (US search firm) who
will provide them with a list of suitable candidates.
8. Careers in business
Accounting: Accountants engage in a wide variety of activities besides preparing financial

statements and recording business transactions including computing costs and efficiency gains from
new technologies, participating in strategies for mergers and acquisitions, quality management,
developing and using information systems to track financial performance, tax strategy, and health
care benefits management.
Branch Manager (commercial bank) : You would be responsible for overseeing all activities at
your branch including opening new accounts, loan origination, solving customer problems, foreign
exchange and safe deposit boxes. Most importantly, you are responsible for establishing relations
with customers. This job can be very satisfying, is never boring and requires you to be hands-on.
Many bank managers start as tellers or customer service representatives. Key things to have for this
position are customer service skills, empathy, quantitative ability, strong work ethic, organization
and and a solid understanding of banking. Can move up to be a market manager and oversee
branches in a market.
91
Loan Officer (banking): This is a highly desirable job in banking which involves making loans to
businesses and consumers. Being a loan officer requires that you have good selling skills, an ability
to understand a business and a solid understanding of how banking works. Most people in upper
management at banks were once loan officers.
Marketing Director/Manager: The Marketing Director/Manager is in charge of all marketing

activities for the organization. The marketing director position will vary depending on the size of
the organization. Many small companies have a one person marketing department while larger ones
may have a sizable marketing department.
Public Relations Specialist: The public relations specialist is responsible for determining and
evaluating public attitudes and communicating programs designed to bring about public acceptance
of an organization. The public relations specialist is much like the advertising account executive.
He or she is responsible for managing the public relations of an organization. The public relations
specialist may be in-house or a part of an agency.
Account Executive (advertising): The account executive is responsible for all aspects of the
account. He or she is responsible for understanding the advertising needs of the customer and
sharing the needs to other agency personnel. The account executive coordinates the planning,
creating, production, and implementation of the campaign.
Market researcher: The tasks required of market research analysts include: Establishing research
methods and designing formats for data gathering and analysis; collecting data on products or
services and consumers' needs and tastes, purchasing power, and buying habits; checking consumer
reaction to new or improved products or services; developing and implementing procedures for
identifying advertising needs; measuring the effectiveness of advertising and other promotional
techniques; gathering data on competitors' products, services, and locations and analyzing their
marketing methods and strategies. (competitive intelligence).
Store Manager: The store manager is responsible for the management and operation of an
individual store. The annual evaluation of the store manager depends to a great deal on how the
store fared during the year. Most store managers have served time as assistant store managers who
take on much of the duty of managing the day-to-day operation of the store.
Department Manager: Department stores contain several small departments such as clothing,
accessories, home appliances, etc. Each of these departments is led by department managers who
act as store managers on a department level. Department manager is a step to becoming a store
manager or going into corporate management.
92
8. Companies
1. The business environment
The business environment encompasses all those factors that affect a company's operations, and
includes customers, competitors, stakeholders, suppliers, industry trends, regulations, other
government activities, social and economic factors, and technological developments.
2. Starting a company
If you decide to form a company you need two basic documents. These are the Memorandum of
Association and the Articles of Association. They have to be drawn up and signed by the members
who found the business. The founding members have to send these documents to the Registrar of
Companies and have to pay a certain amount of registration fee for this. After the documents are
filed with the registrar, a certificate of registration or incorporation is given out, which allows the
company to trade. The general public can have a look into these documents if they pay a fee for it.
3. Legal form of companies
3.1 The sole proprietor
A sole proprietorship also known as a sole trader, or simply proprietorship is a type of business
entity which is owned and run by one individual and where there is no legal distinction between the
owner and the business. All profits and all losses accrue to the owner (subject to taxation). All
assets of the business are owned by the proprietor and all debts of the business are his debts and he
must pay them from his personal resources. This means that the owner has unlimited liability. It is a
"sole" proprietorship in the sense that the owner has no partners.
Advantages Disadvantages
The sole trader has: Sources of finance are limited (it is
Freedom in running the business. difficult to borrow money).
Flexibility. Therefore growth is restricted.
Personal control over the business. There is limited scope for economies of
Personal contact with staff and scale.
customers. He has to take full responsibility.
He does not have to share the profit. There is no continuity (if he is ill, there is
no one to run the business).
3.2 The partnership
General partnership: an association of persons or an unincorporated company which is owned by

two or more persons The owners are all personally liable for any legal actions and debts the
company may face. It is a partnership in which partners share equally in both responsibility and
liability.
Limited partnership: a form of partnership similar to a general partnership, except that in
addition to one or more general partners (GPs), there are one or more limited partners (LPs). It is a
partnership in which only one partner is required to be a general partner.
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The GPs are, in all major respects, in the same legal position as partners in a conventional firm, i.e.
they have management control, share the right to use partnership property, share the profits of the
firm in predefined proportions, and have joint and several liability for the debts of the partnership.
Like shareholders in a corporation, LPs have limited liability, meaning they are only liable on
debts incurred by the firm to the extent of their registered investment and have no management
authority. The GPs pay the LPs a return on their investment (similar to a dividend), the nature and
extent of which is usually defined in the partnership agreement.
There are additional sources of finance. Each partner is jointly liable for the debts
Partners share responsibilities. incurred by other partners except for
Partners share losses too. limited partners.
There is more scope for specialisation. The withdrawal of any one partner or an
additional partner causes the automatic
termination of the partnership.
3.3 Limited companies: private limited (Ltd.) public limited (Plc.)
The legislation of most countries allows for organisations to be created that have a separate legal
personality from their owners. In Britain: Ltd. (limited) or Plc (public limited), in the USA: Inc.
(incorporated) in Hungary Rt.
The act of incorporation creates a new legal entity distinct from the shareholders who own the
company. Companies can make contracts and they can sue and be sued.
The company is fully liable for its debts but the shareholders enjoy the privilege of limited liability,
which means that investors are only liable to lose the amount of money they have put into the
business and their private possessions cannot be taken away to meet the debts if the business fails.
The founders are required to lodge a Memorandum of Association and Articles of Association
with the Registrar of Companies (cgbrsg) and to pay certain fees.
Memorandum of Association (trsasgi szerzds)
It includes the name of the company, its purpose, its registered office or premises, the amount of
authorised share capital, a statement as to what the limit of liability will be if the company is wound
up with unpaid debts, the object clause, i.e. the scope within which the company can exercise its
separate legal personality.
Articles of Association (trsasgi alapszablyzat)
It regulates the relations between the company and its members and between the members
themselves, e.g. nominal capital (face value of shares), the issue and transfer of shares, the rights of
shareholders, meeting of members, the appointment of directors, etc.). It also sets out the right of
directors and shareholders.
There are additional requirements in relation to a public limited company. A private company
cannot appeal to the public to subscribe to a share issue. It must sell its shares by private
negotiations with individuals. A public company can offer its shares and debentures to the public.
The invitation to the public to subscribe to shares means that public limited companies are under a
greater obligation to disclose information, especially if they seek a quotation on the Stock
Exchange. Public limited companies are required to provide information to investors e.g. to the
public. They must produce the Annual Report which consists of the following financial statements:
94
Profit & Loss Account (eredmnykimutats): records the revenue and expenses of the
company over a given financial period.
Audited Balance Sheet (auditlt mrlegkimutats): gives a snapshot of the firms financial
position; what it owns and what owes.
Cash Flow Statement (pnzforgalmi kimutats): examines the changes in cash resulting
from business activities.
Company Administration
The shareholders are the owners; they have the ultimate say in the business but the running of the
business is done by directors who are elected to the board by shareholders. In theory control over a
company lies with the shareholders in general meetings.
Annual General Meetings (dividends are declared).

Extraordinary General Meetings to discuss special business (alterations to the Memorandum
and Articles of Association).
For most matters a simple majority is required to pass a resolution but certain issues need a 75%
majority.
Ltd.: advantages and disadvantages
Enjoys more economies of scale than Shares cannot be offered to the public.
partnerships. Accounts are not private.
There are more capital raising It can prove to be difficult to raise
possibilities. capital.
The business has greater continuity.
Members enjoy limited liability.
Plc.: advantages and disadvantages
Enjoys economies of scale. Formation involves considerable
Share transfer is easy. documentation.
It is relatively easy to raise capital. Share transfer can lead to take-over.
The business enjoys maximum There is too much red tape.
continuity. There is a lack of privacy, annual report
Members enjoy limited liability. must be made public.
It is relatively easy to borrow money.
95
4. Special forms of businesses
Multinational corporation: A company which is based in one country but also operates in a
number of countries where it owns factories and outlets.
Holding company: The leading company of a group of companies that holds all or more than 50%
of the shares of the other (subsidiary) companies.
Franchise: It is a business system in which a company (or franchisor) sells an individual (or
franchisee) the right to operate a business using the franchisor's established system or format. As
part of the franchise agreement the franchisee pays an initial sum of money, a franchise fee or
front end fee, to the franchisor and agrees to pay a royalty or management services fee for
continuing advice and assistance, which is usually calculated as a percentage of annual turnover.
The franchisee may also pay an advertising fee to contribute to the franchisor's annual advertising
and marketing costs. The franchisee also has to find the necessary capital to open the business. The
franchisor provides an operations manual which contains all the information that the franchisee
needs to run his or her business. A franchisor may appoint a master franchisee to supervise the
business in a particular area.
Charitable trust: A trust for relieving poverty, for the advancement of education or religion or for
the good of the public in other ways. They have to be registered, but normally they are not required
to pay income tax.
Public sector organisations: Governments have traditionally been involved in providing goods
and services that cannot be sensibly provided by market forces, for example, defence, education,
basic health services.
5. Company forms in Hungary:
e.v. (egyni vllalkoz): sole proprietor

e.c. (egyni cg): sole proprietorship registered at "companies house"
bt. (betti trsasg): partnership, at least one unlimited/general partner and one limited
partner
kft. (korltolt felelssg trsasg): Ltd. (UK)
kht. (kzhaszn trsasg): community interest Ltd. (UK) (not registrable anymore, must use
Nonprofit Kft instead)
kkt. (kzkereseti trsasg): general partnership
kv. (kzs vllalat): joint venture
rt. (rszvnytrsasg) limited company with shares (not registrable anymore, must use Zrt or
Nyrt depending on publicness)
zrt. (zrtkren mkd rszvnytrsasg): Ltd. (UK)
nyrt. (nyilvnosan mkd rszvnytrsasg): PLC (UK)
Of these, only nyrt., zrt., and kft. have legal personality.
96
6. Corporate alliances, mergers and acquisitions
As business and the world economy become increasingly competitive, more and more companies
have to strengthen their operations to remain profitable. Companies can go about this in a number
of ways, including the following.
Joint venture: Two or more companies agree to collaborate and jointly invest in a separate
business project. This type of deal allows the partners to combine their strengths in one specific
area.
Merger: Two companies, often in the same industry, come together to form one company.
Companies merge for many reasons, for example, to increase market share and cut costs in certain
areas, such as research and development.
Acquisition or takeover: One company accumulates enough of another company's shares to take
over control and ownership.
7. Company structure
Most companies are made up of three groups of people: the shareholders (who provide the
capital), the management and the workforce. At the top of the company hierarchy is the Board
of Directors, headed by the Chairperson (GB) or President (US). The Board is responsible for
policy decisions and strategy. It will usually appoint a Managing Director (GB) or Chief
Executive Officer (US), who has overall responsibility for the running of the business. Senior
managers or company officers head the various departments or functions within the company,
which may include the following: Marketing, Finance, Public Relations, Production, Information
Technology or IT, Research and Development or R&D, Personnel or Human Resources.
8. Ethics and business
Ethical behaviour is doing things that are morally right. Ethics (countable noun) are moral
beliefs about what is right or wrong. Ethics (uncountable noun) is the study of this. Ethically
responsible companies want to do the right thing in areas such as:
employment and community: they want to pay attention to things that affect all people,
not just their employees, in the areas where the company has its offices, factories and
activities.
the environment: they want to conduct business in ways that protect the environment to
ensure that the air, rivers etc. are not polluted and plant and animal life are not
endangered.
winning new business: they want to get business without engaging in corrupt behaviour,
for example offering bribes - money given to someone so that they behave unethically.
Companies want to be seen as good corporate citizens, with activities that are beneficial not only
for their stakeholders - their employees, shareholders and so on - but for the community and
society as a whole.
Ethical corporate behaviour includes accountability - the idea that companies are completely
responsible for what they do and that people should be able to expect them to explain their
actions. Transparency is explaining this behaviour in a way that can be understood by
outsiders, and not trying to hide anything. Companies may say that they demand high levels of
97
probity and integrity - complete honesty - from their employees, and that they do not tolerate
any form of misconduct.
Companies have long had codes of ethics and codes of conduct saying how their managers and
employees should behave. Now they are looking at these issues in more systematic ways. They
are designating executives to oversee the whole area of corporate social responsibility (CSR).
9. Corporate culture
Corporate culture is a set of values and beliefs that are shared by people and groups in an
organisation. A simple way of explaining corporate culture might be to say that is the `way that
things are done in a business. For example, at Microsoft, the computer company staff work long
hours, dress casually and communicate by e-mail. These are the norms of behaviour.
The corporate culture of a business can influence decision making. For example, General
Electric in the USA stresses that employees should feel ownership for the company. It also
encourages low level managers to behave like entrepreneurs. This means that managers tend to
make their own decisions and often take risks. Insurance companies may encourage caution and
conservative attitudes in employees as they do not want risky decisions to be made.
Business leaders are able to create a corporate culture to achieve the corporate objectives and
strategy of the company. Computer companies often encourage employees to perform tasks in a
creative way. This is because they believe that it will lead to innovation, which is the source of their
competitive advantage (versenyelny).
It is important that the corporate culture of a business is understood by all the people that work
in the organisation. It is usually transmitted to new members and reinforced informally, by stories,
symbols and socialisation, and more formally through training.
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9. Banking
The Hungarian two-tier banking system is made up of the National Bank of Hungary and the com-
mercial banks.
The National Bank of Hungary acts as banker to other banks. It is the lender of last resort when there
is no other source to borrow from. It is an independent financial institution responsible for the country's
monetary policy. Its primary target is achieving and maintaining price stability.
The central bank of the UK is the Bank of England. The Federal Reserve System is a decentralised insti-
tution performing central banking functions in the United States. Some of the functions of a central bank
are to:
issue banknotes
set the long-term interest rate
make open market transactions (e.g. issues treasury bills)
regulate the exchange rate of the national currency
regulate the amount of money in circulation
guard the gold reserves and foreign currency reserves of the country
maintain contact with international institutions
maintain the capital adequacy ratio
Commercial banks either separate the commercial function from the investment function (Anglo-
Saxon model) or handle both (universal banking). The most important requirements for banks are liquid-
ity and solvency. They provide a wide range of services for private individuals and corporate clients for
which they charge a handling fee. Their major source of profit is the interest margin. Commercial banks
perform the following services:
extend loans in the national and foreign currencies
manage current accounts: meet standing orders, issue credit cards and debit cards, make transfers,
operate cash dispensers, send monthly statements of credits and debits
manage deposit/savings accounts
offer insurance services
provide factoring and leasing services
deal with project financing
exchange foreign currency
trade in securities
provide safe boxes and night safe
provide private banking services
offer Internet banking, SMS banking and telebanking services
Unit trusts (UK) and mutual funds (US) use investors' money to purchase a variety of financial
instruments. Investors' earnings are based on the interest or dividends received by these investment
companies. Investors in US money market funds (a service offered by mutual funds) are also allowed
to write a limited number of cheques on their interest-bearing accounts.
Merchant banks (UK), also known as issuing houses or accepting houses, cater for the corporate
client. Their aim is to meet all the financing needs of small and big companies. They also give them
advice in all aspects of finance and management; manage pension funds and unit trusts; deal in
foreign exchange, gold bullion and securities; and raise money for governments.
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10. The Stock Exchange
The way the stock exchanges operate

The stock exchange is a highly organised market where securities are bought and sold. The issuer
offers the security for sale on the primary market. The investor can sell the security any time on the
secondary market. The over-the-counter (OTC) market has been created for unlisted securities which
are not traded on an organised exchange. The fall and rise of prices respond to changes in supply
and demand. Blue chips are the shares of the best-performing companies regarded as safe
investments. The Hungarian index, the BUX contains the liquid shares of companies with the
biggest capital value. Fluctuations in the volume and the price of securities traded on the stock
exchange are important indicators of the state of the economy.
Securities
A company can issue shares to institutional investors or the general public. Buying a share
through a specialist company or a broker gives its holder a stake in the company. Shares generally
entitle their owners to vote at the company's Annual General Meeting and to receive a dividend in
proportion to their investment. Ordinary shareholders with equities only get a dividend if
there is enough profit. Preference shareholders are entitled to get their fixed dividends before
ordinary shareholders.
Bonds represent a loan for a fixed period with a fixed interest rate. They can be either held till
maturity or sold before maturity. Treasury bills are issued by the state and represent a safe
investment with a state guarantee. If a company wants to raise money, it issues corporate bonds.
Portfolio
This is a set of investments made by an investor. A portfolio consisting mainly of bonds is
regarded as a low risk-level investment. The addition of shares to a portfolio of government and
corporate bonds increases the risk-level of the investment, but at the same time returns can be
higher.
Bulls and bears

Bulls are speculators who - anticipating a price rise (on a bullish market) - buy shares in large
quantities in order to sell them at a higher price later. Speculators who sell their securities in the belief
that prices are about to fall (on a bearish market) are called bears.
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Articles and Discussion . 3

1. How would you define the labour market?

2. Why is a free economy practically always characterized by unemployment?

3. What is the normal rate of unemployment?

4. What possible consequences does unemployment have?

5. How are GDP and unemployment related?

1. How would you define globalization?

2. What are the characteristic features of globalization?

3. Discuss the argument for and against globalization.

Arguments for Arguments against

1. How would you define retailing?

2. List five functions of the retailer.

3. Describe the major forms of retailing.

5. What are the most important functions of the wholesaler?

6. What services can the wholesaler provide?

7. What types of wholesalers can you mention?

The Commercial Transaction

2. How can the buyer make payment to the seller?

3. Why is insurance important?

4. What are basic means of transportation?

Loyalty fails to pull in shoppers

1. What is the difference between selling and marketing?

2. Why is it important to carry out marketing research?

3. What are the basic methods of market research?

4. What are the elements of the promotion mix?

5. What are the differences between advertising and sales promotion?

6. What are the most important means of sales promotion?

7. Comment on the advantages and disadvantages of sales promotion.

Superbrands on retail's agenda

1. What does internal/external expansion mean?

2. What is the difference between an acquisition and a merger?

3. What is the difference between horizontal and vertical mergers?

4. How is a joint venture different form an acquisition or merger?

Task 2. Discuss the responsibilities/functions of each unit/department.

1. What kind of business organisations were mentioned in the articles?

2. What other form of businesses can you mention?

3. What is the difference between a limited company and a partnership.

6. What financial statement do public limited companies have to publish?

7. What special forms of businesses can you mention?

Discuss the functions of the following international organizations.

1. Comment on the advantages and disadvantages of Hungarys accession to the EU?

2. How can countries/companies/consumers benefit from the single currency.

1. Discuss the most important environmental threats.

2. What is the greenhouse effect?

3. How does deforestation threaten the environment?

4. Why do overpopulation and waste accumulation pose environmental problems?

5. What is sustainable development?

6. What can businesses do to protect the environment?

7. What are some of the alternative energy resources

6. EMPLOY Supply in the labour market is represented by .

III. Complete the following sentences with the missing prepositions.

Could you supply us (11). 200 bottles of Oasis shampoo?

16. It's over 25 years since we founded the company.

17. It was a mistake to purchase the shares.

V. What do the following abbreviations stand for?

VII. Which is the odd word out in each line?

36. partnership, merger, takeover, joint venture

6. COMPLAIN Your was found unjustified.

III. Choose the correct alternative.

12. He asked me .. to work for his company.

A) if I wanted B) do I want C) do I need D) whether I want

A) is in charge with B) is charged with C) is charged to D) is in charge of

A) assure B) insure C) ensure D) make sure