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Module 1
The Economy and Business

Simple tenses. Continuous tenses. Future plans and intentions. Articles.


Pronouns: some, any, no. Prepositions. There is/are. Multifunctional words:
it, that, one.
Phraseological units: depend on something, come across something, result
from, result in, relate to, sell off, ride out, and so on, both.and

Exercises.
1. Translate the sentences paying attention to the use of the Present Simple
and Continuous Tenses.
1. What are you doing? Im preparing this months sales figures.
2. Consumer prices shoot up every quarter. The acceleration takes place mainly
because of a rise in utilities tariffs.
3. Most of Russias metal exports go to different European countries.
4. Computers are becoming increasingly important in our lives.
5. Our new manager is extremely generous but not very tolerant of people who
dont agree with him.
6. The cost of living rises every year all over the world. Prices are increasing all
the time.
7. Mr. Johnsons secretary is rather careless. She makes many mistakes in business
letters.
8. We are having a lot of problems with our suppliers at the moment.
9. She is being encouraged to apply for a job.
10. Currently, the countrys largest oil firm is beating forecasts with record profits
and is looking for new markets.
11. Profits and losses of the firm are being analyzed by the division managers in
the performance review at the moment.
12. The business is a great success. New staff is being hired, and it is expanding
fast.
13. Our investors are happy because we are making profit.
14. We are learning Business English in order to read articles on different
economic problems and discuss them in the English language.

2. Complete the sentences using the correct tense of the verbs in brackets to
express permanent or temporary action:
1. The demand for the companys products _________ (grow) from year to year.
Though now it __________ (not grow) fast.
2. Famous American companies such as Coca Cola and McDonalds________
(have) subsidiaries in Russia and they successfully _____ (compete) with
domestic producers for consumers.
3. In the past Russia traditionally ______ (export) wheat, now it ________
(export) oil, gas and other natural resources.

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4. They usually__________ (introduce) some brands on the market every few
months.
5. This manager___________ (choose) to be a salaried worker after graduation
from University, but now he ________ (work) as a freelancer.
6. This company usually __________ (make) money, though it ________ (do)
rather badly just now.
7. Problems of globalization ____________ (discuss) by leading economists,
scientists, writers and activists of the International Forum on Globalization every
year.
8. The success of any firm__________ (depend) on market conditions.
9. An economist _________ (become) the most popular profession among young
people, so the departments of the EBM Faculty __________ (involve) a number of
academic courses, such as Management, Marketing, Accounting, Finances and
others.
10. Finding a proven competitive edge_________ (require) special attention to
competitors strengths and weaknesses.
11. The department manager often _____________ (meet) suppliers to discuss
various problems. He __________ (meet) an experienced wholesaler at the
moment and _______ (try) to find out if the deal is profitable.
12. Everybody ________ (think) you are a successful businessman: your firm
___________ (have) a profit, people _____ (work) as a good team and you
________ (run) the company well.
13. Customers usually _________ (ask) questions about the products
advertised.
14. Market people often________ (do) research to see if it is possible to launch
a product.
15. A new brand of a soft drink ___________ (to be advertised) now.
16. I dont think this plant _________ (produce) good household appliances.
17. Our students _______ (have) a lecture on economics by a visiting professor
from England tonight.

3.Look at the examples and answer the questions:


1. How is the regular past simple formed?
2. How is a question about the past formed?
3. How is the past negative formed?

I rented an apartment near my office last month.


Gaye McLoughlin first tried a fruit smoothie in California.
He arrived in Hastings in the early 1990s.
When did Mr. Carter live in Oxford?
Did they start production in China in 1999?
They didnt have the stock to meet demand.

4. Give the past simple, past participle and present participle forms of the
verbs from Text 1A, pay attention to irregular forms, and translate the verbs
into Russian.
4
intervene, add, take, mean, happen, let, site, depend, result, fall, ride, arise, cover,
sell, provide, lessen, cause, cut, pay, cost, understate, read, come, watch, have,
define, make, be, enjoy, rise, spend, suffer, become, use, produce, lend, borrow.

5. Choose the correct form of the verbs (Past Simple or Past Continuous).
Thomas Edison started/ was starting work on the railway when he was
twelve, selling newspapers and snacks. There were long periods with nothing for
him to do so he built/ was building himself a little laboratory in the luggage van
where he could carry out experiments when he didnt sell/ wasnt selling things to
passengers. Another way that he occupied/ was occupying himself was by reading.
He joined a library and read/was reading every single book in it. One day, when he
waited/ was waiting at a station he noticed/was noticing a small boy who played/
was playing by the track, unaware that a train approached/ was approaching.
Edison ran/ was running out and grabbed/ was grabbing the child just in time. The
childs father was so grateful that he offered/ was offering to teach Edison to be a
telegraph operator. Edison accepted the offer and soon he had/ was having regular
lessons. After a year, he was good enough to get a job in the telegraph office. He
continued to read and experiment, whenever he had/ was having time. At twenty-
one he left/ was leaving the telegraph office to devote all his time to being an
inventor.

6. Complete the sentences with the appropriate future form of the verbs in
brackets: will+ infinitive; going to + infinitive, present continuous.
1. We want to build up our US sales, so we (set up)regional office in
Chicago. (intention, decision made);
2. I (travel) to Chicago tomorrow on the 8:30 flight. (fixed arrangement).
3. I (look at).some office premises that we might rent. (intention, decision
made).
4. How (you, travel) round Chicago? (intention), (two possible answers);
5. Justin Brown (meet ) .me at the airport.( fixed arrangement );
6. We dont know which the best location is. I (collect) as much
information as I can. (intention , decision made);
7. I (present) all the options after my trip. (intention, decision now )

7. Give the Simple and Continuous Passive Forms (Present, Past and Future)
of the following regular and irregular verbs.
Example: collect is /are/ was/ were collected/ will be collected
Is / are/ was/were being collected
read is, /are/ was/ were read/ will be read
is /are/ was/ were being read
tell - am/ is/ are/was/ were/ will be told
am/ is/ are/ was/ were/ being told
Build, paint, design, write, process, use, discover, wash,
question, sing, pass, do, move, send, stick, polish, inform, ask.

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8.Translate into English:
1. : ,
(first line)
2. (is repaid) .
3. (head-office) ?
.
4. ?
(for) .
5. 10.30,
.
6.
(budgeting).
7. ,
(fit together) .
8. (interview)
.
9.
(to check) ?
10. ,
(approximately) 80%
, .
11.
.
12. .
(manage) (negotiate) .
13. (skill) (
)
.

9. Put in a/an/the or nothing.

Tina wants to buy a car. She has come to see Ryan, who is trying to sell
his.
T: So, you dont say much in your advert. Is this an old car?
R: Four years old. Come and have a look at it.
T: Were you ______first owner?
R: No, I got it two years ago.
T: Have you driven it a lot?
R: Well, I drive to my office in ____ city center five days
_____week, but I dont use it much at ________ weekends.
T: I see. Now, the thing is, I m _____doctor. Ive just started work at
____hospital, Im on call a lot of the time and I have to find ____car,
which is really reliable, _______car I used to have was always breaking
down and giving me problems.
R: Oh, this ones very good and its got ____new set of tyres.
T: Right. Its good. Can I go for ___ test drive?
6
R: Um, actually, thats not possible right now.
T: Why not?
R: Well, basically, Im afraid it wont start. You see, _______battery is flat.

10. Complete the sentences with: some, any or no and translate them.

1. There is . information about the economic downturn in todays


newspaper.
2. There are main sectors in any economy.
3. There are..countries rich in land which can use it intensively and
produce agricultural products and minerals.
4. There are. visitors outside the bosss office.
5. There arent opportunities for the new staff to work flexitime.
6. There is ...money in my bank account.
7. There are students who get scholarships both from the government
and from private firms.
8. I want ...paper. Have you got...?
9. May I give you advice how to avoid a stressful job?
10. Have you got spare time now? Wed like to discuss the new
sales plan for the quarter.
11. There are . well-paid jobs on the labour market at the moment.

11. Choose the correct prepositions in the conversations:

1. A - Im trying to write a report on/for consumer behaviour. Can you help


me to answer the question: What are major economic needs?
B - Definitely. They are economy at/of purchase, efficiency in/ on operation,
dependability in/on use and improvement of/in earnings.
2. A - You are lucky to have joined our company.
B - Why do you think so?
A - Because its been successful in/on business. Its got subsidiaries in
Moscow, Paris, it has Swiss accounts and a chain of/at stores all
over/around the world.
3. A -Our CEO is very concerned.
B - Why? Whats the matter?
A - We seem to be having a problem. There appeared a small but
prospective firm at/on the market half a year ago.
B - So, is there any challenge?
A - Yes, there is. They are quite competitive though they dont produce
much yet. Our boss wants to meet the representative at/of the firm and
negotiate the merger contract.

12. Define the functions of it, that, one. Translate into Russian.
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1. The information required by project managers is different from that
required by department managers.
2. The values and logic that shape worker actions are not the same as those
of engineers.
3. He says that his new sales team is difficult to manage.
4. The best investment isnt always the one that offers the greatest reward.
5. At least two new factors are present one is the element of time, another
that of planning.
6. It is your boss that I would like to speak to.
7. It was three weeks later that he heard the news.
8. You should come no London its a wonderful city.
9. It seems that no one is willing to accept responsibility for what
happened.
10.Its important to know that a product manager is responsible for the
development and marketing of a particular product.
11.It is difficult to set up a new business.
12.It appears that the two leaders are holding secret talks.

13. Before you read the text below, answer the questions.

a) What is the difference between the terms economy and economics?


b) What is the meaning of the adjective economical?
c) What do you understand by economic forces?
d) Can you name any countries that have developed economy?
e) Do you think that it is important for a future engineer to know economics?

Read and translate the text using Essential Vocabulary and any other
dictionary.

Text 1A
The Economy and Business
It is difficult nowadays not to have some knowledge of the economy. If you
read a good newspaper or watch the news on television, you often come across an
item of an economic nature. It may be one about unemployment, inflation or
perhaps the balance of payments.
All business organizations are affected to some degree by economic forces,
such as the rate of inflation and the amount of skilled labour available.
We can define the economic environment as the factors relating to the state
of the economy, which contribute to the framework on which businesses make
decisions.
Whatever the size or nature of the business, its activities are subject to
economic forces. Clearly, firms will benefit if the economy becomes more
prosperous and we enjoy an economic boom; wages rise and customers have more
money to spend. Equally, they will suffer if, for example, prices and interest rates
rise and products become internationally uncompetitive.
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The economy is an immensely complex entity. It comprises millions of
buyers (or consumers) and hundreds of thousands of businesses all making
decisions to spend, hire labour, use certain machinery, produce more (or less), lend
(or borrow) money, provide services and so on. This scenario is then further
complicated by the action of the government, which intervenes in the work of the
economy for both economic and political reasons. Foreign trade and thus the
activity of overseas producers, government and consumers add another dimension,
as does the behavior of trade unions and pressure groups. Finally, any attempt to
analyze the economy and its operation is further complicated by the involvement
of people. This human element means that the economy does not always behave in
a predictable manner: people do not always take the highest wage or purchase the
best products.
Why is the economy so important? The managers of all enterprises, whether
public or private, large or small, manufacturing or service oriented, have to be
aware of what is happening in the economy and of the likely consequences for
their businesses. Let us take an example. Before a major retail chain, such as
Marks &Spenser, sites a store in a town or city, its management will have to be
convinced that the local people will have sufficient income now and in the future
to make the new store profitable. The inhabitants income level depends on the
prosperity of the local and national economy.
Some firms are more susceptible to the difficulties resulting from an
economic change than others. If the economy experiences a downturn with rising
unemployment and falling consumer expenditure then large businesses are
generally better equipped to ride out this rough period because they have greater
financial reserves to cover losses. In addition, their greater assets make them more
able to arise loan capital than smaller organizations.
Some firms sell products (such as food) or provide services (such as public
transport) which are not subject to lessening demand in periods when incomes
stagnate or fall, but which do not enjoy rising demand during times when incomes
are buoyant.
Some firms sell their goods and services abroad. Factors such as the
exchange rate of the national currency are therefore very important to them. Other
businesses may sell in exceptionally competitive international markets and
inflation in the country, for whatever reason, may cause them acute difficulties as
overseas rivals undercut their prices.
The economy affects the sales levels that businesses can expect to reach, the
rate of taxation they have to pay, the cost of their labour and raw materials and so
on. Its importance cannot be underestimated.

Exercises.
1. Answer the questions to the text:

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1. Why isnt it difficult nowadays to have some knowledge of the state
of the economy?
2. Where can you come across economic items?
3. What processes does the economy affect?
4. How can we define the word economic environment?
5. Why do managers have to be aware of what is happening in the
economy?
6. Which factors does the inhabitants income depend on?
7. What is the role of the human element in the economy?
8. What makes large businesses able to raise loan capital?
9. What products are not subject to lessening demand in periods of
stagnation?
10. Why is the exchange rate of national currency very important to some
firms?

2 (A). Look back at the text and find:


which adjectives go with: forces, environment, nature, organization,
labour, entity, reasons, trade, producers, unions, groups, element, manner,
enterprises, chain, income, economy, expenditure, reserves, assets,
transport, currency, markets, rivals, levels, materials, consequences;
which verbs go with: decision, money, losses, loan capital, demand,
economic boom ,labour , machinery, services, another dimension , the
best products, a downturn, example, products, acute difficulties, prices, a
store;
phrasal verbs which mean: cause something; to find something by
chance; to be about something ,to be connected with something; to be
affected by the other thing; to sell something quickly and for a low price;
idiomatic phrases meaning: to be affected by something, to make
someone\something experience something.

(B). Translate the collocations and phrasal verbs into Russian.

3. Match each word or word combination with its definition:


1. cost a) the spending of something having
value
2. a balance of payment b) a rise in prices caused by an excess
of demand over supply
3. a customer c) a level of smth; a fixed scale;
4. a rate of smth. d) a person who buys at a shop
5. environment e) the natural, social and economic
condition in which we live and work.
6. to be available f) the difference between the amount
of paid and received money
7. inflation g) the price paid for something

10
8. expenditure h) to grow weaker; to refuse
9. to decline i) the income received by the State
from taxation
10. tax revenues j) to be ready at hand; ready for use;
having force

13.Choose the correct phrasal verb in an appropriate form to complete


each sentence. Some phrasal verbs should be used twice in two
different sentences.
(result from; result in; relate to; come across; depend on; sell off; ride out)
1. He had __________ most of the best cattle to pay taxes on the property.
2. Isnt it time that the talks __________a decision?
3. The new tax law doesnt __________land used for farming.
4. The projects success _________ the support of everyone concerned.
5. Job losses __________changes in production.
6. The store __________their old TV sets to make room for the latest models.
7. Public opinion can__________ government decisions in Europe.
8. If you want to advance in the world of business you have to know how
__________to the customer.
9. The unemployment figures __________not necessary __________the rise
in prices.
10. The nations troubles __________the governments stupidity in Albania.
11.I __________ this old photo in the back of the drawer.
12.You can always __________our bank, it wont fail you.
13. When the crisis finally came, they were able to___________ (it).
5. Which of the following sentences are not true according to the text?
1. We generally find out economic news from science - fiction literature.
2. The economic environment depends to a large extent on the state of national
economy.
3. The higher the economy is developed, the more profitable the companies
are.
4. All businesses ignore such economic factors as the rate of inflation, overall
economic downturn or the amount of competent workforce.
5. Economic activities become complicated if the government plans a number
of economic and political changes.
6. Economists are interested in the factors that affect prices of goods and
services and also resources necessary to produce them.
7. The customers income level has nothing in common with the success of the
national economy.
8. Its easier for smaller organizations to overcome economic difficulties
concerning financial reserves to cover losses, because they have more
mobility and flexibility.
9. Currency and exchange rate factors are rather important for the firms selling
abroad.

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10.The economy has great influence on all the spheres of economic factors
such as taxation rate, sales revenues, labour cost and others.

6. Match the two halves of the sentences.


1. Russia is rich in raw materials, a. without accurate and timely
energy and mineral resources accounting information.
2. Mr. Brown hasnt been abroad b. to people and environment.
3. We sell the equipment at these prices c. since May.
to many customers
4. Its impossible to manage a business d. which enable the country to develop
operation the national economy.
5. Cash flow is the movement of e. abroad.
money
6. A technology is the knowledge and f. into and out of an organization.
process the firm uses
7.Some companies sell their goods and g. to convert input resources into output
services goods or services.
8. Resource utilization must not cause h. in need of highly qualified
damage specialists with the fundamental
knowledge of national economy.
9.Managers of all enterprises have to be i. whats happening in the economy.
aware
10. Now our country is in the period of j. it is in great demand at present.
global changes in its economy and we
are badly

7. Complete the sentences with some, any, no.


1. Im sure ___________ of their shareholders will invest in our project.
2. Theres ___________ important economic news in this months issue.
3. Its advisable nowadays to have ___________ knowledge of the state of
the economy.
4. ___________ national economy can prosper at the time of the economic
downturn.
5. Prices and interest rates have risen to __________ extent recently.
6. ___________attempt to analyze the economy and its operation is
affected by the human factor.
7. There will be ________ more brand-new superstores opened this year in
out-of-town cites, creating more than 250 new jobs for the booming
retailing sector.

Translate into Russian:

12
1. , ,
.
2. (affect)
.
3. (trouble) c .
4.
.
5.
,
, .
6. , ,
.
7. (support) ,
?
8. ,
.
9.
.
10. (account for)
, ()
.

Text 1B
Read the text and answer the question: what links do you think exist between
the banks suffering bad debts and the small firms falling orders and
difficulties in borrowing money?
Small Firms Face Squeeze
The Confederation of British Industry (CBI) will present a deeply
pessimistic report on small companies this Tuesday. There is evidence that small
companies are suffering as much from increasingly restrictive lending policies by
the banks as from high interest rates.
Small businesses are complaining that banks are preventing them from
expanding, and sometimes even surviving, by turning off the lending tap. The
clearing banks, which have announced poor results over the last few days, are
struggling to stop a mounting tide of bad debts among their UK business customers.
For the first time in years, small firms are as gloomy as big ones, says Tom
OConnor, chairman of the CBIs smaller firms council.
Last weeks CBI quarterly industrial survey, covering all sizes of companies,
showed that only 19 per cent had experienced an increase in orders in the previous
four months, while 38 per cent had suffered a drop.

Text 1C
13
Read the text and answer the questions:
1. What does the term a sole trader mean?
2. What is partnership?
3. What sorts of businesses are run as partnerships?
4. What type of a business do you think Sue would like to form?
Sole Traders and Partnership
Sue Thomas has just been made redundant from her job as a manageress in a
local factory. She has plenty of ideas on how to spend her redundancy payment of
5000. After much thought she has decided to open a clothes shop for women and
children in her hometown.
Her cousin Paula Marsh is a manager at a local bank and unsurprisingly Sue
has turned to her for advice. They spent a long while together discussing plans for
Sues business and Paula was able to give her some good advice. Paula and Sue
chatted about finding a suitable empty shop and how much rent Sue could afford
to pay; they also discussed Sues likely sales. Paula argued that some research was
essential to find out whether Sue would have sufficient customers to make her
business profitable.
Are you going to form a company, Sue, asked Paula, or will you find
someone to join you in a partnership? Sue was unsure what these terms meant and
asked Paula to explain.
When you walk down the High Street in Wimberly [a nearby town], began
Paula, you must notice the names above the shops and other businesses that are
there. In the side roads there are little businesses like Joness Newsagents who
deliver your papers each morning. We call this type of business a sole trader or sole
proprietor. It is owned and managed by just one person; although, if large enough,
there may be other employees. It is very easy and cheap to set up and consequently
is a very popular type of businesses.
Sounds just right for me, exclaimed Sue. Ill start my business as a sole
trader.
Hold on. Sue! There are other possibilities. When you bought your new
house, you saw it advertised in West, Marsh and Curwen, the estate agents in Morris
Street. They are an example of a partnership which exists when at least two people
decide to join together to run a business. They usually all put in money and share
any profits that are made. Yes, said Sue slowly, I can see that taking a partner
would have advantages.

Mini-presentation
You are asked to give a short talk on a business topic. You have to choose
one of the topics from the four below and then talk for about three minutes.
1.Russian Economy
2. British Economy
3.Types of business
4.Economic environment
14
The ability to make a short presentation is a key business skill that enables
you to communicate statistical information, present ideas and persuade
people of the strengths of your argument. To do this effectively you need to
prepare.
1. Make a plan of your talk. This should include at least three sections:
introduction
development
conclusion

2. Write detailed notes of what you will say, showing


key points and keywords
transitions between the different sections
visual aids you will refer to
the action points you will stress

3. Practice you presentation to make sure that


you use simple and clear language
your talk doesnt go over the time available
you will not need to read from your notes

Useful language

The subject matter of my presentation is

I have chosen this subject because..

My aim is to ..

I have considered, analyzed.. because

Key words that you need to know well:

Analyze, argue, assess, compare, contrast, define, describe, discuss,


enumerate, evaluate, explain, illustrate, identify, interpret, justify, list,
outline, prove, relate, review, show, state, summarize, trace.

Sequencing ideas: firstly, secondly... then, next, after that, lastly, in


conclusion, finally, first of all

Expressing contrast: but, however, nevertheless, yet

15
Stating results: thus, as a result, so.

Providing reasons: in order to, so as not to, so that.

Adding further support: besides, also, moreover.

Concluding statements: in summary, to sum up, to conclude.

Essential Vocabulary to Text 1A


amount n
assets n , , , .
available a , , ,

balance of payments
benefit n /v , ,
, ,

buoyant a ,
cause v , , ,

come across smb /smth -., -,
-., -.
competitive a
consumer n
contribute to ,
cost of labour
customer n ,
decline v ,
define v
depend on -., -., ,
economic environment
economic forces
enterprise n , ,

entity n , , ,

expenditure (s) n , ,
hire n/ v /
income n (), ,
interest rate
labour n , , ,
16
manufacture v ,
monetary a , -,
overseas rival ()
private enterprise
public enterprise ()
rate of inflation
rate of taxation
raw material
relate to -.
result from (-.)

result in (-.)
retail chain

ride out ,
()
rise (rose, risen) v (-)
skilled labour ,

stock n\v , , ,
,
subject (a) , ,
tax revenue(s)
undercut prices
understate v ,

17
Module 2
Employment and Unemployment

Perfect tenses (Simple)

Comparative and Superlative Adjectives and Adverbs

Conjunctions: Both and, either or, neither nor

Exercises

1. Translate into Russian paying attention to the time modifiers used with
Present Perfect tense. Put question to each sentence.

1. Their way of life has changed over the centuries. 2. We have made big
progress in the education in the last two years. 3. I have not heard from him since
he left. 4. Tom has been away from university for two weeks. 5. Over the last 10

18
years the Japanese market place has grown from 8% to 41%. 6. Great changes
have taken place in the world during the past 30 years. 7. Over the past twenty
years the banking systems of most developed countries have changed
considerably. 8. He has been in electronics for most of his life. 9. Since 1946
Congress has continued to pass laws giving Presidents more power to deal with
economic problems. 10. At the present time the robot has taken over only those
jobs where humans can not or dont want to work.11. Real wages have been cut
in half in the last 10 years.12. Much has been said recently about air pollution
and its effect on the environment.13. Some housing projects have been planned
recently by local authorities. 14. Some of the new ideas have been put into
practice up to now. 15. The hotels have had an online booking system since
1996. 16. Nine percent of the work force has been out of work for more than two
years. 17. A British lead in this technology has not been lost yet. 18. British
constitution is based on hundreds of years of legislative acts, court decisions and
customs that have never been put together into one document.

2. Translate the sentences into English.

1. . (be active)
2. . (tend) 3.
. (change) 4.
. 5.
. (pay off) 6.
. (be the leader) 7.
, . (unemployment
benefit, dismiss) 8.
2005 . (own) 9.
. (be a big user) 10. 20
. (grow)

3. Translate the sentences with Past Perfect and Future Perfect.

1. News had traveled about the world long before newspapers appeared. 2. By
1940 the number of workers had almost doubled. 3. After two years in office
things didnt go the way the President had planned. 4. By the time she leaves
next month, she will have been with the firm for 22 years. 5. The price of this
book will have doubled by the time it reaches the local bookstore. 6. Until last
year the firm had had 16 years of profit growth. 7. During the crisis Japanese
companies faced difficulties that they had never before experienced. 8. Ill be
back at five. I hope you will have had a good rest by that time. 9. By the time
you receive this letter I will have finished my final exams. 10. Though the
company had been established primarily for railroad construction, it diversified
its activities later.

19
4. Fill in the gaps in the sentences using the correct form of the verbs in
brackets.

1. This bicycle (be) in our family for fourteen years. My farther (use) it for the
first five years, my brother (ride) it for the next five and I (have) it for the last
four. 2. Information technology (change) not only the nature of markets, but it also
(break down) the barriers of geography and time. 3. For a long time Toyota (be) a
very successful Japanese car manufacturer. 4. My son is still at the High School.
He (not start) work yet. He (be) at the High School for six years; before that he
(spend) five years at the Primary School. 5. I hope they (repair) this road by the
time we come back next summer. 6. I (arrive) in England in the middle of July. I
(be told) that England was foggy all year round, so I (not be) surprised to find that
it was raining. 7. The Human Resources Department (invest) a lot of money in
training by the end of this year. 8. You (book) your hotel room yet. Well, I (wrote)
to the hotel last week but they (not answer) yet. 9. News (travel) around the world
long before newspapers appeared. 10. Each of the 13 departments (run) by the
secretary appointed by the President. 11. Computers now (use) to compile
information on numerous social problems. 12. Much (say) recently about air
pollution. 13. These services (pay for) in full by the end of the last year. 14. Real
wages (cut) in half in the last 10 years.

5. Complete the sentences using a comparative or superlative form of the


adjectives.

1. Natural resources and energy are getting (expensive). 2. We usually


finish work (early). 3. The central regions of the country are _
industrialized than the northern parts. 4. Wholesalers sell large quantities of a
product to retailers who sell much______ (small) quantity to customers. 5.
Consumers are interested in (cheap) goods of (high) quality
6. (Hard) thing about English is the prepositions and adverbs, students
usually say. 7. I can remember the days when (good) computer was
(big) computer. 8. Our plant with (little) automation and (little)
investment is turning out (good) quality products. 9. Japan now has
the third (large) military budget in the world. 10. The aerospace
industry is by far (large) user of titanium. 11 The main trend in our time
is towards a (healthy) political climate in the world. 12. Bosses
today are (young) and (close) in age to the workers they
supervise.

6. Translate into Russian the sentences with the larger.the more.

1. The higher a persons income, the higher the tax rate. 2. The more your
employees know about the salary programme, the better they work. 3. The more a
country produces, the richer it is. 4. The more competition, the lower the prices. 5.
Your body is the baggage you must carry through life. The more excess baggage,
the shorter the trip. 6. The more the rich steal, the poorer are the poor. 7. The
20
healthier the economy is, the lower the unemployment rate. 8. The more
prosperous the country is, the fewer problems it has.

7. Translate the sentences with various types of comparison.

1. In Great Britain ten years ago the 20 highest paid directors received as much as
450 average manual workers. 2. Their production costs are as much as 70% less
than US costs. 3. Youth unemployment in Britain has risen three times as fast as
unemployment among the working population. 4. He employs as few people as
possible and lets machines do the work. 5. As many as nine of the firms senior
management started as drivers. 6. Red is the second most popular colour for cars
in Britain. 7. About twice as many brown cars are sold as black cars in Britain. 8.
Far fewer green cars are sold than red ones. 9. This fan isnt as powerful as the
other ones.

8. Translate the sentences into Russian. Before doing this, read the notes
and memorize the words and expressions given there.

1. Goods are products which people either want or need. 2. Neither a parent
company nor its overseas subsidiaries made profit due to the economic downturn.
3. He was neither for nor against the proposal of the Board of Directors. 4. A
personnel manager serves not only the employer, but also acts in the interests of
employees. 5. Students watching the videotaped lectures feel free to ask questions
of both the tutor and each other. 6. Either heat or cold is a threat to about three-
fourths of all control devices. 7. The standards for measuring a managers work
are neither universal nor permanent. 8. When the Japanese achieve market
leadership, they become defenders rather than attackers. Their defense strategy is
to continue product development. 9. Top managers spend about 80% of their work
time communicating with each other. Thus, a communication skill enables
managers to hold meetings, make reports, etc. 10. A good manager involves as
many people as he can in both work and decision-making. 11. Practical knowledge
of both written and spoken English is essential for this job. 12. The department
manager must demonstrate initiative as well as readiness to learn. 13. Why didnt
you ask for help, rather than trying to do it on your own? 14. They sell books as
well as newspapers in this shop. 15. She is a talented musician as well as being a
photographer.

Notes:
either or ; neither nor ; both and-
; rather than- ; thus ; as well as .

1. Before you read the text below answer the questions.

a) What is the meaning of the word labour?


b) What do you understand by employment, unemployment, employee, employer?
21
c) Can you name any countries which have high level of unemployment?
d) What do you think is the social threat of unemployment?
e) Do you think that good education will help your employability?

Read and translate the text using Essential Vocabulary and any other
dictionary.

Text IIA
Employment and Unemployment

Labour is the main resource in any enterprise and it is vitally important for a
company to have flexible and well-trained workforce. Governments try to
minimize the rate of unemployment. Workers will buy some of the output of
business and so it is important that they should be in work to allow them to
purchase the economys output. Unemployment also poses a social and economic
threat to any nation.
The social threat is that the unemployed feel degraded and of no value to the
society. The loss of a job may result in depression, stress or in some cases, crime.
After long periods of being out of job, some people experience severe difficulties
in rejoining the workforce.
In economic terms, the cost of lost output is immense. A ten percent rate of
unemployment means that the potential output of one-tenth of the workforce has
been lost to the society. In addition, those in employment pay taxes to support
those out of work and the government has lost tax revenue from the unemployed.
There is no single measure of unemployment to assess the proportion of the
workforce which is not in work. Indeed, most nations alter the way of measuring
this key statistics from time
Predicting the impact of unemployment and controlling it are made more
difficult by the fact various types of unemployment occur. Some types of
unemployment pose a threat to economic stability.
Frictional Unemployment
We should not be too surprised that the business community expresses little
concern about frictional unemployment. This type of unemployment is caused
when people move between jobs. For example, a bricklayer may be unemployed
for a few weeks while waiting for a suitable vacancy to appear.
A healthy economy will always exhibit some of this unemployment as
workers move from one job to another.
Businesses favour such flexibility as they search for suitably skilled and
qualified labour. This unemployment offers little threat to their wellbeing unless
the interval between jobs becomes prolonged. Equally, the government only seeks
to minimize the time spent searching for, or transferring to, the new place of
employment.

22
Seasonal Unemployment
Like frictional unemployment, seasonable unemployment is not regarded as
a major problem on a nation level. It regularly rises in the winter before declining
again the following summer. For some local communities this can be a serious
problem. Both business and government are prepared for it and its small-scale
regularity means that it poses little or no problem.
Structural Unemployment
Of some concern is structural unemployment. It may occur because
machinery replaces workers. It could be the result of consumers no longer wishing
to buy certain products which are out of fashion.
Structural unemployment has some implication for business. Firstly, it may
mean that some of the workers have outdated skills and this will require money on
their retraining. Secondly, such workers realize that the type of job they had is no
longer available. Thus, they are not spending as much as before and some firms
will probably experience falling sales. Such unemployment will cause the
government to introduce policies to make the problem less severe. For example, to
support a declining industry or to increase the level of economic activity and thus
demand from firms for labour.
Cycling Unemployment
Over time, all economies move through cycles during which the level of
business activity fluctuates. Boom, with high spending, low unemployment and
general prosperity, is followed by a slump in which prosperity declines and the
level of unemployment rises. The intensity of such fluctuations in business
activity may vary, but the general pattern continues.
Such cyclical unemployment is a major target of the governments
employment policy as it seeks to maintain a steady growth in the economy.
Business find that such fluctuations in unemployment have considerable impact
on their production and sales and make forward planning more difficult. The
intensity and length of these cycles differ. As a recession begins, firms sometimes
do not know how to adjust their output plans. To some degree, the decisions that
they take help to determine future demand and sales.
Regional Unemployment
Some parts of every country are more prosperous that others. An indicator
and cause of regional variations are called regional unemployment. Causes of such
unemployment are complex, but in many areas they are linked to structural
changes in the local economy.
Businesses tend to locate in more prosperous regions in order to be near to
their most important market. The consequences of this can be costly: higher rents,
salaries and increased transport costs. It is often difficult to distinguish between
types of unemployment. However, it is important for both firms and governments
appreciate the nature of unemployment so that they can take actions appropriate to
the situation.

23
Frictional unemployment may require improvements, initiated by the
government, so that employers with vacancies can communicate with unemployed
workers.
Exercises.
1. Answer the questions to the text.
1. What types of unemployment do you know? 2. Why is it important to
decrease the rate of unemployment? 2. What does unemployment result in? 3.
Why is it difficult to distinguish what kind of unemployment we deal with?
4. Why is it unprofitable to the government to have a big rate of
unemployment? 5. Why is it necessary to understand the nature of
unemployment? 6. What do you know about frictional unemployment? 7.
When does seasonal unemployment rise and when does it decline? 8. Which
types of unemployment cause the most negative effect on economy? 9.
Where do businesses tend to locate? 10. What are the measures that the
government uses to decrease the rate of unemployment?

2. Look back at the text and find:


which adjectives go with: resource ,workforce, cost, difficulties, terms,
revenue, statistic, unemployment, community, vacancy, economy,
labour, products, implications, skills, industry, activity, prosperity, target,
policy, growth, change, rents, actions, schemes.
which verbs go with: rate of unemployment, depression, severe
difficulties, taxes, the proportion of workforce, environment of business,
expenditure on retraining, the problem ,the level of economic activity, a
steady growth, future demand , actions, improvements.

3. Choose the correct phrasal verb in an appropriate form to complete


each sentences. Translate the sentences.
(link to/up; wait on/for; work off/out; tend to/towards; be possessed by/off;
transfer to/from; seek out)
1. How can we a really good person for this job? 2. Our family_____
this city recently so I am now a job. 3. The rights in the property will
be the present owner your family. 4. Land
that this city should be turned into parks. 5. As a director he
strong ability to manage and solve all problems. 6. His lectures on business
dullness. 7. More and more countries in Europe are now
integration. 8. Farther is still trying to his tax. 9. I hope to
most of the urgent letters by tomorrow. 10. You must permission to
enter the office. 11. His whole future the results the talks. 12. A
common wall the main office the storehouse.
13. Arrangements are being made to the two firms, so as to reduce the
competition. 14. He ______________your reply to our letter.

4. Match each word or word combination with its definition.

24
1. fluctuations (a) to be not fixed; differ
2. major resources (b) the effect of an increase that a certain
activity has upon the demand
3. prosperity (c) a monthly payment to an employee
4. a rent (d) condition when the real income is constantly
5. a steady growth increasing
6. a salary (e) money received by the owner of property
7. an output (f) a state of being rich
8. impact (g) to put right; to make suitable for
9. to vary (h) things provided by nature or accumulated by
10.to adjust people
(i) booms and slums when industrial activity rises
and falls
(j) the total value of all produced goods

5. Choose the appropriate letter.

A. Some types of unemployment;


a) improve the environment of business
b) threaten the environment of business
c) change the environment of business

B. Governments seek the rate of unemployment.


a) to increase
b) to lessen
c) to minimize

C. The enterprises having high structural unemployment will experience


.
a) falling sales
b) stable sales
c) rising sales

D. A slump is a state of economy where .


a) prosperity rises, unemployment declines
b) unemployment rises, prosperity declines
c) prosperity rises, unemployment rises

E. Labour is a/an resource in any enterprise.


a) additional
b) necessary
c) major

F. Most companies pay taxes those out of work.


a) to get rid of
25
b) to feed
c) to support

6. Choose proper words or word combination in the box to complete


the sentences.

since he left school; to meet; depression; one-tenth; the recent economic


survey; machinery; a considerable impact; in poor conditions; in more
prosperous regions; to recruit

1. Unemployment may result in , stress or in some cases, crime.


2. __ has revealed a record slump in the graduate jobs
market and a considerable cut in vacancies. 3. He has worked for the same
company . 4. A 10 percent rate of unemployment means that the
society has lost of the work force. 5. In
some industries unemployment may occur because replaces
workforce. 6. Most businesses find that such fluctuations in unemployment have
on their production and sales. 7. Businesses tend to locate
to break into the most important markets. 8. Many skilled and qualified employees
refuse to work , and such a company may find it difficult to
well-trained workforce, if they arent able their needs.

6. Translate into English.


1. (recruitment)
. 2.
. 3.
(open position) ,
. 4.
,
. 5.

. 6.
. 7.
(unemployment benefit/dole)
. 8.
(redundant) .

Read the text and answer the questions:


1. What was economic situation like when the students applied for university?
1. Could the graduates realize their ambitions?
2. What opportunities do university graduates have?

Text II B
Degree of Despair for Children of the Slump

26
The class of 1995 was the students who applied for university at the height
of an economic boom and graduated into recession. Three years ago, when they
won their places at Kent University, interest rates were at their lowest for a
decade, inflation was just over 4% and unemployment was still falling.
Today, anxiety has tarnished optimism and ambition that the thirty-seven
freshers had when they studied at Keynes College, one of Kents four halls of
residence. Only eleven of those who were reunited at their graduation last week
have secured a permanent job. Sixteen are still looking for work, or have found
temporary employment, while the others intend to continue with their studies.
Last week, a report by some of Britishs biggest employers revealed a
record slump in the graduate job market, with a 20% cut in vacancies and virtual
freeze on salaries.
Like many of the 135, 000 graduates leaving College this year, Caroline
Kirk, twenty-one, was disappointed. In spite of a good second-class honours
degree in history, she has so far failed to find a job after three months of searching
and fifty applications.
The idea of going to university was to improve your chances of being
chosen for a good job. Its difficult to keep a positive attitude when you get
rejections, but you have to remember that you are one of thousands.

Read the text and answer the questions:


1. Why is unemployment rate in the Czech Republic so low?
2. Can this can be called a miracle and why?

Text II C
Unemployment in East Europe

Unemployment is an unwelcome novelty for East Europeans. Some former


communist countries have much higher unemployment rates than others. After
communisms collapse in some Eastern European countries unemployment rates
have indeed risen. When reforms began and state factories were exposed to the
free market most people expected widespread redundancies. On the other hand, a
high unemployment rate, if it is short-lived, is a good sign, a signal that
restructuring was proceeding fast. In Poland, for example, 16% of the labour force
is out of work, in Bulgaria the rate is 13%. Unemployed people cant quickly find
new work in the private sector. More than half the unemployed in East Europe
have been out of work for a few years. A few countries have managed to keep
unemployment rates low. The Czech Republic, for one, has a rate of only 3%. The
Czech employment miracle has several straightforward causes. Some, such as an
income policy which ensured relatively low real wages, and special public-work
programmes could be copied by other countries. Other Czech advantages are
unique. They include the separation from Slovakia, where a lot of dying industries
were situated, and a job-creating tourist boom centred in Prague.

27
Mini-presentation
You are asked to give a short talk on a business topic. You have to choose
one of the topics from the four below and then talk for about three minutes.
1. Types of Unemployment
2. Employability
3. Rate of Unemployment in the UK
4. Unemployment in Russia

Essential Vocabulary to Text II A


adjust v
appreciate v
be available v
at least
cause n ,
cause v ,
consequence n
costly adj
decline v
declining industry ,
demand for labor
distinguish
enterprise
exhibit v ,
express a concern
experience v ,
falling sales
fluctuation n ,
impact on v -
implication n ,
involve v
link to v ,
locate v ,
output n ,
major resource
measure n
outdated skills
pose a threat
possess n
purchase v
recession ,
rent n
result in v
28
retraining
seal n
to seek to do -
single a
slump n (, ),
steady growth
target n
to take actions
to tend to do
to transfer to ,
value n ,
to vary v ,
wellbeing

Module 3
Inflation

Perfect Continuous Tenses.


Modal verbs and their equivalents.
Causatives: to cause, to make, to force.

Phraseological units and prepositions: in line with; carry on; a number of; no
longer; tend to (do) something; in terms of; owing to; because of.

Exercises.
1. Translate the sentences into Russian paying attention to the time
modifiers. Put special questions to each sentence.

29
1. The oldest of these machines has been operating for ten years and the newest
for less than a year.
2. The manager had been studying the market before he negotiated a
successful deal.
3. He had been training for an MBA degree for two years before he became a
global manager.
4. By the 15th of September this year he have been working at the laboratory for
three years
5. For many years, scientists had been studying the nucleus before they found that
it is possible to split it.
6. The enrolment of African-American students reached a peak in the late 1970s
and has been declining ever since.
7. For several weeks, the media has been reporting on the decline of the dollar.
8. I have been managing many groups of people since I was 25 years old.
9. I have been thinking about studying Japanese for a long time but I have
always held back because I have heard it is such a difficult language.
10.Support for the conference has been coming in from many organizations.
11.Computers are among the labour-saving devices that have been appearing since
the beginning of the Industrial Revolution.
12. My Personal assistant had been ringing you up from 4 oclock but the number
was engaged.
13. The plant had been increasing the product output before they reached
significant economies of scale.
14. He had been studying French for three years before he started learning
English.

2. Translate into English.


1. , ,
.
2. .
3. ,
.
4. .
5. ,
30% .
6.
.
7. ,
.
8.
.
9. 1993 (pursue)
, .

30
3. Put the verbs in brackets in the proper tense: Perfect Simple or Perfect
Continuous.
1. For a long time economists __________ (try) to define the main objective
of business organizations.
2. I would like to understand what_______________ (change) in the status of
personnel management.
3. The plant ___________ (sell) its industrial products to foreign countries for
decades.
4. The USA_____________ (be) the world leader in technology for a long
time.
5. The consumption of electricity by an average family __________ (increase)
since the early 1990s.
6. We __________already __________(work) on the project for two
weeks when you joined the team.
7. Ford ________ (try) to lower the price of the Model T, since it first
appeared.
8. This year the firm _______ (introduce) a new policy of advertising goods.
9. Most African countries________ (try) to reach the living standards of
developed countries for a long time.
10.Joe __________ already __________(think) about changing jobs when
he got the offer.
11.These firms (increase) the export of clothes to European countries since the
late 1990s.
12. The plant (employ) two hundred new workers since 2012.
13. Easy Jet Airlines ________ (make) a profit for a few years purchasing air
tickets online, because online sales develop fastest where there are no goods
that have to be physically delivered.

4. Fill in the spaces, using modal verbs can, could or their equivalent
be able.

1. When I pass my driving test, I hire a car from our local garage.
2. I .remember the address of the firm where my colleague works.
3. When I first went to Spain I .. speak Spanish well enough but I
translate business articles from Spanish into Russian.
4. . you run fast?
I am not sure. I .when I went to school but I dont think I do it now.
5. We . ship the goods next September.
6. . you sign the contract now?
No, We .. to do it on Friday
7. Its a pity I help him yesterday.

5. In some of the sentences either could or was able can be used.

1. The worker was very tired but he to repair the machine tool.
2. We to solve the problem a week ago.
31
3. I was sitting far from the speaker. I .see all right but I . .hear very well.
4. When he was young herun a mile in less than five minutes.
5. The company.to make some profit even during the inflation.
6. We were late for the conference, but we ..to make our reports.

6. Translate the sentences paying attention to how probability is expressed.

1. The Swedish company might buy our company.


2. Things change, I might even lose my job.
3. May I look around the plant now?
4. I could send this order on Friday.
5. Anyone can learn how to use a computer.
6. Couldnt you employ more well-qualified employees to complete the project?
7. Your boss may be able to change the situation.
8. This company might have enlarged the construction site, because they needed
more space.

7. Translate the sentences paying attention to how obligation is expressed.


1. We must not use the machine until the green light is on.
2. You must call on me at the office, when you arrive in Moscow.
3. You have to use a mouse when you work on a computer.
4. We have to work together if we want to meet the deadline.
5. They should rely on the information from our top management.
6. You should not have opposed that proposal.
7. The Government ought to have reconsidered their decision.
8. Successful leaders must be able to articulate their ideas.
9. Our graduates will have to be prepared to realize innovative ideas.
10. We have to get up early tomorrow, as we are to be at the airport at 5 oclock.
11. What is to be done about this problem? We are to report about it to our
supervisor.
12. The workers must be allowed to take part in the management of their
organization.
13. Nowadays all employees in every field of science and technology need to be
regularly retrained.
14. Effective planning must begin with objectives that are to be achieved by
carrying out the plan.

8. Translate the sentences into English using modal verbs.

1. .
2. .
3.
.
4.
.
5. .
32
6. .
7. .
8. .
9. , .
10. .
11. .
12. , ,
.
13. ,
, ,
.
14. , .

9. Choose the proper Modal verb. Translate the sentences.

1. According to the information received by the company, the


sale representatives (must, have to, be to) arrive on the next plane.
2. The government (must, should, have to) stimulate the production of
necessities and it (should, must) prevent the increase in prices
3. According to the contract all the papers (must, have to, be to)
be ready for tomorrow.
4. Japan is known as a small nation with big population that (to be able, have
to, should) overtake such industrialized country as the USA in some fields
of economy.
5. You (may, must, should) put up with my requirements or you (should, have
to, can) look for another job, said the director.
6. There are no parking facilities for manufactured cars in this plant, so the
company (should, must, have to) buy some land.
7. To start business a manufacturer (must, should, have to) buy the necessary
means of production.

10. Complete the sentences, using the Modal verbs or their equivalents: can,
could, may, to be able to, must, to have to.
1. Small nations ___________ ensure their economic security only by effective
cooperation with other nations.
2. They ____________ introduce new machinery as soon as possible.
3. _________ Russia supply its population with necessary amounts of gas and
petrol? Yes, they ___________.
4. This manager doesnt meet the sales target. You __________ employ a better
manager.
5. British farmers __________ (not) ensure the required quality of meat when
there was an infection among the cattle a few years ago.
6. You ___________ have a special license to import or export exotic animals and
seafood.
7. Members of the OPEC (Organization of Petroleum Exporting Countries)
_______________ to sell oil at the same price.
33
8. Any crisis in the economy of the USA ____________ dramatically influence
the economies of other nations.
9. The firm ________ increase its profitability by means of new materials and
technologies.

11. Translate into English.


1. (PS-Personal Assistant)
.
2. (complete) (CV:
Curriculum Vitae)?
3.
.
4. (partnership), (share)
. ,
.
5. -
.
6. (Board of Directors)?
.
7. (run) ,
.
8.
.
9. .
.
10. ,
.

12. Before you read the text below, answer the questions.

a) What do you know about inflation?


b) Do you think that inflation can be caused by increase in peoples pay?
c) Can you name any other reasons of inflation?
d) What do you think is the social threat of inflation?
e) Do you know anything about types of inflation?
f)Why do you think that a major objective of government economic policy is
to control inflation?

Read and translate the text using Essential Vocabulary and any other
dictionary.

34
Text 3A

Inflation
Inflation is generally defined as a persistent rise in the general price
level with no corresponding rise in output, which leads to a corresponding
fall in the purchasing power of money.
Inflation varies considerably in its rate. Hence, the consequences for the
business community differ according to circumstances. Mild inflation of a
few percent each year may pose few difficulties for business. However,
hyperinflation, which entails enormously high rates of inflation, can create
almost insurmountable problems for the government, business, consumers and
workers.
Economists recognize that two general types of inflation exist:
- Demand-pull inflation
- Cost-push inflation
Demand - pull inflation occurs when demand for a nations goods
and services outstrips that nations ability to supply these goods and
services. This causes prices to rise generally as a means of limiting
demand to the available supply.
Alternatively, inflation can be of the cost-push variety. This takes place
when firms face increasing costs. This could be caused by an increase in wages
owing to trade union militancy, the rising costs of imported raw materials and
components or companies pushing up prices in order to improve their profit
margins.
Inflation affects business in a number of ways. Significant rates of inflation
can cause accounting and financial problems for business. They may experience
difficulty in valuing assets and stocks, for example.
Such problems can waste valuable management time and make forecasting,
comparisons and financial control more difficult.
Many businesses may experience falling sales during inflationary periods
for two broad reasons. Firstly, it may happen that saving rises in a time of inflation.
We would expect people to spend more of their money when prices are rising to avoid
holding an asset (cash) which is falling in value. However, during the mid-1970s,
when industrialized nations were experiencing high inflation rates, savings as a
proportion of income rose! It is not easy to identify the reason for this, but
some economists suggest that people like to hold a relatively high proportion of
their assets in a form which can be quickly converted into cash when the future is
uncertain.

35
Businesses might be hit by a reduction in sales during a time of inflation for
a second reason, as inflation progresses, it is likely that workers money wages
(that is, wages unadjusted for inflation) will be increased broadly in line with inflation.
This may well take a worker into higher tax bracket and result in higher percentage
of his or her wages being taken as tax. This process, known as a fiscal drag, will
make workers spend less money available on firms goods and services. The
poverty trap has a similar impact as money wages rise, the poor will have to
find that they no longer qualify for state benefits to supplement their incomes and
at the same time they begin to pay income tax on their earnings.
This leaves less disposable income to spend on the output of firms. The
wages of many groups are not index-linked and so they rise less quickly than the
rate of inflation, causing a reduction in spending power and demand for goods
and services.
Inflation is often accompanied by high interest rates. High interest rates
tend to discourage investment by businesses as they increase the cost of
borrowing funds. Thus, investment falls. Businesses may also be dissuaded from
undertaking investment programme because of a lack of confidence in the future
stability and prosperity of the economy. This fall in investment may be worsened
by foreign investment being reduced as they also lose some confidence in the
economys future. A fall in investment can lower the level of economic activity,
causing lower sales, output and so on.
During a bout of inflation, firms will face higher costs for the
resources they need to carry on their business. They will have to pay higher wages
to their employees to compensate them for rising prices. Supplies of raw
materials and fuel will become more expensive as will rents and rates. The
inevitable reaction to this is that the firm has to raise its own prices. Such cost-
push inflation may make the goods and services produced by that enterprise
internationally less competitive in t erm s of price.
Some economists think that a low and stable rate of increase in the price
level can be beneficial.
Governments realize that low rates of inflation exist in many economics.
Inflation rates of 5 percent or below are not considered to be a great problem,
especially if competitor nations are suffering similar rates.
However, inflation is, in general, harmful to business and its
environment. It is for this reason that its control has been a major objective of
government economic policy for years.

Exercises.
1. Answer the questions to the text:
1. How can inflation be defined?
2. What can cause accounting and financial problems?
3. What types of inflation do you know?

36
4. Why is inflation harmful to business and its environment? Explain your point of
view.
5. Is inflation often accompanied by high interest rates?
6. What are the reasons of falling sales during inflationary periods?
7. Why do the wages rise less quickly than the rate of inflation?
8. How can firms compensate rising prices to their employees?
9. Do firms face higher or lower costs for the raw materials during inflationary
periods?

2. Match each word or word combination with its definition.

1. a demand a comparing favourable in price and


quality
2 profit b to predict
3 accounting c absence of trust
4 a reduction in sales d the total of the sums of money
earned by an employee
5 a lack of confidence e a recession
6 to make forecasting f a store of goods for sale ; a store of
raw materials
7 competitive g a system of recording the money
value of businesses dealings
8 earnings h The amount on which the price
received in greater than the cost
9 a stock i an association of employees
10 trade union j a request

3. Translate the sentences paying attention to the word combinations: owing


to, no longer, tend to, in terms of, because of, in line with.

1. Because of hyperinflation customers and workers face a lot of difficulties.


2. Many businesses may no longer experience rising sales during inflation periods.
3. The business trip was delayed owing to organizational problems.
4. People tend to think that their salaries depend on the efficiency of their work.
5. Mild inflation tends to pose few difficulties.
6. A number of firms faced high costs for resources.
7. I could give you a number of reasons for not going to the meeting.
8. The number of homeless people has increased dramatically.
9. In terms of sales many businesses will benefit in this situation.
10. Annual pay increase will be in line with inflation.
11. We should carry on with our work while our boss is away.

4. Mark these sentences T (true) or F (false) according to the


information in the text.
1. Hyper inflation which results in high rates of inflation can cause
serious problems for the government, business, consumers and workers.
37
2. Many businesses may experience rising sales during inflation periods.
3. Continuous rise in general price level might lead to a corresponding rise
in the purchasing power of money.
4. In 1970s when countries were experiencing high inflation rates, saving
and income of population rose.
5. When peoples wages are not indexlinked during the inflation period,
they rise less quickly than the rate of inflation.
6. Significant rates of inflation can cause financial problems for most
businesses, which find it difficult to value their assets.
7. Inflation is often accompanied by high interest rates, the latter having a
tendency to increase the cost of companies resources.
8. High inflation rates cause the increased spending power and demand
for goods an services
9. In the time of inflation businesses face a reduction in costs for raw
materials fuels and other resources necessary to run their business.
10.In general inflation is harmful to business and its environment.

5. Match the two halves of these sentences.

1. Inflation can change its rate a during inflation periods


2. Many businesses may b when prices are rising and assets
experience falling sales are falling in value.
3. Mild inflation of a few percent c May be often accompanied by
may high interest rates
4. People choose to have the d according to the circumstances in
larger part of their assets in a business community
form which can be.
5. Inflation process e The level of economic activity,
sales and output
6. Increasing costs could be f quickly converted into cash when
caused they are not sure about their
future
7. Cost push inflation may make g cause few difficulties for business.
the goods and services by the
firm which has raised its own
prices
8. A fall in investment can lower h by an increase in wages due to
the rising costs of imported raw
materials and components
9. People might spend more of their I to pay higher wages to their
money. employees as a compensation for
these raised costs.
10. During inflation when firms j less competitive in terms of price.
face higher costs for the
resources they have

38
6. Find in the text sentences with the modal verbs. Before translating them
define which of them express possibility depending on the capacity of
doing the action, possibility depending on the circumstances (or
supposition) and necessity of the event.

7. Translate the sentences into English.


1. , .
2. , ,
.
3. , .
4. ,
.
5.
,
.
6. ,
.
7. (launch) ,
.
8.
.
9. ,
- .
10. .
11. (range)
.

8. Comment on the meaning of the modal verb would in the following


sentences. Before doing this read the note.
1. We wanted to persuade him to talk with the director. But he wouldnt listen to
us
2. At the conference which I visited I would ask questions about economic
cooperation with other countries.
3. During the recession in the 1930s in the US people would stand in long lines in
order to get a job.
4. The manager wouldnt change his decision, even though he knew it was wrong.
5. The car wouldnt start this morning because it was freezing.
6. Would you mind leaving us alone for a few minutes?
7. When the boss was away, Mr. Brown would take over his responsibilities.
8. When I worked for this company I noticed that managers would spend most of
their working time at the meetings.

Note: Remember that it is used to express unwillingness (mostly in


negative sentences), when we talk about things happened regularly in
the past, past habits, in set phrases.

39
9. Translate the sentences paying attention to the emphatic constructions:
It is that (who, which); (, );
1. It is inflation that is the subject of the discussion.
2. It is a lack of confidence that results in falling the investment in any
country.
3. It is this problem that a project manager has not taken into account.
4. It was the new machinery by means of which they increased labour efficiency.
5. It is macroeconomics that studies the problems of the countrys economy as a
whole.
6. It wasnt until 1923 that Canada, Australia and New Zealand were able to free
themselves from British control.
7. It is through well-planned programmes that extensive data can be collected.

10. Translate the sentences with the verbs cause, make, force.
1. The growing rate of inflation makes us think that the economic
situation of the country is not stable yet.
2. Financial deficit in any country or region may cause economic and political
downturn.
3. Demand pull inflation is caused by demand for a nations goods and
services.
4. The government forces all the companies to pay taxes on their profits.
5. The President of the company was forced to resign because his managing
style led to big great losses.
6. Sometimes it is difficult for a first year student to make himself understand
the importance of studying Business English.

11.Translate the sentences into English using the verbs to cause, to


make, to force.
1.
.
2. (sales team)
(review) .
3.
.
4. .
5. ,

.
6.
.
7.
,
.

40
8.
(report) . (quarterly).

Read the text and answer the questions:


1. What has an investigation by the Sunday Times shown?
2. Why were the supermarkets disguising price increases?
3. What does John Winkler advise to improve profits?

Text 3 B

Top Value Tesco Raises Price Fastest

TESCO, which claims to offer the best value for money of any
British supermarket, is increasing food prices faster than any of its main
rivals.
The store, at present promoting discounts in a national advertising
campaign, has added more than 5% to the cost of basic foods since the
beginning of the year. The increase significantly outstrips overall food
prices, which according to Central Statistical Office figures have risen by
less than 1% over the same period.
An investigation by the Sunday Times has shown that Tescos three
leading rivals Asda, Safeway and Sainsbury are also increasing their
prices sharply.
The study will further fuel criticism of the high level of supermarket
profit margins. The Safeway supermarket group announced on Wednesday
that it had increased its margins from 6.3% to 7%. Safeways annual pre-
tax profits rose to &275m, a six-fold rise in five years on sales that are
up three fold. Sainsbury has become Britains most profitable retailer,
although a Sunday Times investigation last weekend showed how shoppers
were paying a price for its success.
The latest survey compared the cost of 34 popular foods and
household goods with prices in January, when researchers conducted a
similar study . The basket, selected by the Consumers Association, included
leading brands, fresh meat and vegetables.
Tesco, which last month announced a rise of nearly one third in
annual pre-tax profits to &545m, has put up the price of the basket by
more than 1% each month this year, the fastest among the big chains. It
came to &30.14 compared with &28.67 in the previous study, a rise of
5.1%, with a loaf of Hovis bread increasing by 19%.
The basket cost 30.19 at Safeway, Britains third biggest food retailer.
This represents a 3.2% increase, with tomatoes at 62p per pound, up 27%,
and a pack of ten Birds Eye fish fingers costing &1.17, up 18%.

41
Sainsbury claims its prices are on average 2% lower than those of its
rivals but it charged the most at &30.23, a rise of 4% on the cost of the
previous basket. Even Asda, attempting to promote itself as a cost
conscious retailer, put up the price of the goods by 2% to &29.75.
Experts said yesterday that supermarkets were disguising price
increase behind a barrage of discount promotions while extending their
profit margins. John Winkler, who advises firms on ways to improve
profits, said one tactic was to drop prices only to put them back up to a
higher level. The aim is to break down the consumers memory for
prices he said.
Supermarket shares were hit last week as politicians complained about
their profits achieved during the recession, strengthening the possibility of
an inquiry by the Office of Fair Trading (OFT) into food price.
Read the text and answer the questions:
1. Which factors does the economy of the UK depend upon?
2. What does a floating rate of exchange mean?

Text 3 C

The Effects of Inflation

In economies such as the UK which are dependent upon a high level


of exports and imports, inflation often leads to balance of payments
difficulties. If other countries are not inflating to the same extent, home-
produced goods will become more competitive in the home market. Exports
will be depressed and imports will rise. If this process continues it must lead to
a balance of payments deficit on the current account. The problem will be a
particularly difficult one where inflation is of the demand-pull type, because
in addition to the price effects the excess demand at home will tend to draw
in more imports. These balance of payments effects apply particularly
where a country is operating a fixed rate of exchange. A floating rate of
exchange means that the rise in home prices does not have such an
unfavourable effect on the volumes of exports and imports.

Mini-presentation
You are asked to give a short talk on a business topic. You have to choose
one of the topics from the three topics below and then talk for about three
minutes.
1. Types of Inflation
2. Inflation and Business
3. The Reasons of Inflation

42
Essential Vocabulary to text 3A

accept v
accounting n
beneficial a
borrowing fund

to carry on .
circumstances n
consequences n
to convert into cash

cost-push inflation (
)

demand-pull inflation
disposable adj
dissuade v ,
earnings n ,
to entail ,
to experience
to face
to fall in value
fiscal drag
forecasting
general price level n
income rise n
index-linked
investment n ,
insurmountable adj
interest rate
likely adj
margin n , (. )
. ,
to pay income tax
persistent rise
poverty trap
profit n , ,
purchasing power n
push up v ,
reduction in sales
result in v -
saving \ s n ,
state benefits
supplement v ,
tax bracket
43
to tend to ,
terms of prices
trade union
unadjusted

44
Module 4
Economic Growth
The Object. Object Clauses
The Sequence of Tenses
The Attribute. Attributive Clauses
Phrasal verbs: coincide with; lead to/up; place on/in/with/; follow on/out;
throw up/out/ of; throw away/ on.

Exercises
1. Put the questions in the reported speech.

Every person wanted to know 1. Does a growing economy mean a


developing economy?

2. Are many changes in economy an


integral part of growth?

3. Will firms decline as their profit falls?


4. How long has the country been
producing new goods?
5. What can encourage the development of
businesses?
6. Could governments help promote
economy growth by increasing their own
expenditure?
7. Do small enterprises have any support
from the government at the time of
financial default?

2. Say the sentences in reported speech.

1. I'm going to work in Spain next year.


2. I work for a small publishing company.
3. I'm their marketing manager.
4. The company has opened the subsidiary in Barcelona.
5. It's been very successful.
6. I've been chosen to run a new office in Madrid.
7. I don't have much time to enjoy myself.
45
8. I haven't had lunch with a friend for ages.
9. I'm studying Spanish in the evenings.
10. I hope my friends will come and visit me in Madrid.
1. I went there last week with my secretary.
2. We didn't have much time for sightseeing.
3. I have to get back to work now.

3 a) Tony is being interviewed for a job. Look at the


interviewer's notes and Tony's answers, then put questions.

1.
Age? How old are you?

2.
Live locally?

3.
Address?

4.
When/leave school?

5.
Which /school/go?

6.
Work/now?

7.
Who/work for?

8.
How long?

9.
Enjoy/present job?

10.
Why/want/leave?

b) After the interview Tony told his friends what he had been
asked. Mind the correct word order in the clause.

1. She asked me how old I was.


2. She asked me...

4. Rewrite the sentences beginning in the way shown.


46
1. "Which company is looking for a good salesman?" asked
Tom.
Tom asked (me) which company was looking for a good
salesman.
2. "Does your organization need people for a short period of
time?"
asked Ann.
Ann asked
___________________________________________________
3. "What do the customers like in the company: prices or service?"
-
asked Jenifer.
Jenifer asked
___________________________________________________
4. "How often do you take part in the International Trade
Fairs?"
asked the company's guest.
The guest wanted to know
_________________
5. "Do you have an appointment?" asked clerk.
The clerk asked
___________________________________________________
6. "Have you seen the file with our new contract?" asked the
manager his secretary.
The manager wondered
___________________________________________________
7. "What kinds of advertisements do you consider to be the
most
effective? asked a reporter.
A reporter asked
___________________________________________________
8. "Is the full set of goods displayed in the company?" asked
Richard a travel agent.
Richard asked
___________________________________________________
9. "When can I see the production manager?" Charles asked
the
receptionist.
Charles asked
___________________________________________________

5. Translate the sentences with object clauses.


1. The director was sure the changes were going in a positive direction.
2. The lecture thought the students had little knowledge of digital
electronics. 3. Some banks believe that IMF are responsible for poverty in
the Third world. 4. Few people think it in their power to take control over
47
their future. 5. There is a good reason to believe this technology will find a
wide application.

6. Translate the sentences with attributive clause.


1. These farmers are the people that the authorities helped to start their
business. 2. This company, which is now 105 years old, produces very
popular goods. 3. All that is required is well-coordinated technical efforts.
4. The banks decreased their workforces, which meant that a lot of people
had to look for work. 5. The most important problem is poverty, which is
becoming threat for political stability. 6. The telephone, which we all have
now, was invented more than 100 years ago. 7. The components the
factory manufactures optimize the economy in this field. 8. Achievements
in this technology affect the quality of the products people buy. 9. The
document contained some points the deputies didnt agree with.

7. Different types of clauses. Translate the sentences paying attention to


conjunctions.
1. Once the agreement was reached it was confirmed in writing. 2. As
soon as the chairman was elected he offered a new plan. 3. As the
economy is growing the country is developing. 4. Hardly had they left the
house, when the rain started. 5. As competition has grown in all industries,
planning has become a necessity. 6. The time for action is now, for
tomorrow it may be too late. 7. There are plenty of things which the
authorities must do before serious negotiations. 8. The activities that must
be dealt with by an engineering manager are important. 9. Whatever the
form of government a nation may have it must be connected with the
healthy of economy. 10. No matter what business you are in, you must
create successful environment. 11. As labor costs continue to rise the
robots will become more creative. 12. As soon as the crisis broke out
newspapers reduced frequency and volume. 13. We found in the
newspaper everything which interested us. 14. There is a company, whose
name is unknown, that sells various computer facilities.

8. Choose the correct phrasal verb in an appropriate form to complete


each sentence (coincide with; lead to/up; place on/in/with; follow on;
throw up/out of/ away on).

1. The students in this college are taking course __________a degree.

2. The government ________ another tax ______cigarettes.

3. If you don't keep your accounts straight , serious debt could


.

4. Don't you education by leaving now.


48
5. The opening ceremony ________the worst storm in this century.

6. I wish some money ____________this bank.

7. The newspapers faithfully reported the events that _______the Minister's


dismissal.

8. I have had my order this bookstore for 3 months, but there is


still no sign of the books.

9. The serious fire at the factory ________ 2,000 men and women
_______ work.

10.Why did you ______your money_____ such a risky way to get interest?

9. Before you read the text below, answer the following questions:
a) What is the difference between developed and developing countries?
b) Why should a country increase efficiency of labour?
c) In which case does the standard of living in the country improve?
d) Could you name the products which are popular at present and which
used to be popular some time ago?

Read and translate the text using Essential Vocabulary and any other
dictionary.

Text 4A

Economic Growth

As a nation's economy grows, it is able to produce more goods and services


each year. The value of national output is measured by the national income.
Therefore, economic growth is usually termed as the rate at which the national
income of a country grows in real terms. This means the rate of growth of
national income, after allowance has been made for inflation. Governments seek
the fastest possible economic growth without incurring undesirable side - effects
such as inflation. Increases in those factors which create injections into the
circular flow (export sales, investment and government expenditure) increase the
level of economic activity which, if sustained, leads to economic growth. It
follows from this that governments can help promote economic growth by
increasing their own expenditure when appropriate. They can also do so by
attempting to create an environment where exports can flourish and businesses
consider investment worthwhile.

49
Such economic growth is a major objective of governments since a rise in
the standard of living of the country's people should follow. This is, however, only
true if national income has risen even when inflation has been allowed for,
otherwise it means that the price of the nations output has increased rather than
quantity. It is also important that the growth of the population has not exceeded the
growth of national income; otherwise, the additional output will have been
swallowed up amongst the extra people. It is necessary for real national income
per head to rise to increase the general standard of living. And even under these
circumstances some groups in society (for example, pensioners) may not share in
the increased prosperity because their incomes rise less quickly than those of other
groups, notably those in full time employment.
A growing economy means a developing economy: change is an integral
part of growth. Some firms will decline as their products become obsolete or go
out of fashion while others thrive as their goods or services become popular and
as they innovate new advanced ideas. Opportunities are regularly thrown up as
markets are created by the additional spending power that is placed in hands of the
public. Talented and perceptive managers can take advantage of the chances
created -growth provides a framework for success.
As with all opportunities, some businesses will benefit more than offers the
favorable economic environment. All products have a life cycle, though the length
of the cycle may vary. Firms with products at the end of their cycle may benefit
little from rising styles. In contrast, new product which coincides with a strong
period of economic growth has a distinct advantage. It is this factor which partly
explains the rapid increase in popularity and sales of Compact Disc players in the
late 1980s. Most businesses prefer periods of economic growth not only because
of buoyant sales but also because tax rates can fall. Since governments have to
support the less unemployed at a time when tax revenues are booming they can
afford to cut rates. It also offers the opportunities to improve the infrastructure of
the economy by building new roads, rail links, airports, etc. Both factors can
encourage the development of all businesses.

Exercises
1. Answer the questions to the text.
1. What is measured by the national income?
2. What is necessary for the growth of the national income?
3. What can increase the level of economic activity?
4. What leads to economic growth?
5. How can government promote economic growth?
6. Is the growth of the population important for national economy?
7. What does the expression "standard of living" mean?
8. What points to a growing economy?
9. Why do businesses prefer the period of economic growth?
10. What products have distinct advantages?

50
2. Match each word or word combination with its definition

1) to inject into industry a) to participate in, to deal with


2) to promote b) to reduce interest rates
3) a spending power c) to be no longer in demand
4) to exceed d) to bring into existence
5) to become obsolete e) to grow in profitability or
wealth
6) to thrive f) to get something to one's
advantage, interest, profit
7) to create g) to be beyond a certain limit,
to be greater than
8) to benefit from h) a purchasing power
9) to cut rates i) to increase the demand
10) to share in j) to give money to a plant

3. Complete the sentences, choosing the proper word.


Translate them into Russian.

1. Economic growth is usually defined as the rate at (that, which, what) the national
income of a country grows in real terms.
1. Apart from three or four top management executives (who, that, which) are
employed full time, the board of Directors comprises a number of outstanding
businessmen - often board chairmen or presidents from other diverse fields.
2. The rouble exchange rate (what, that, which) is periodically established reflects
the currency offer and demand balance.
3. Governments can help promote economic growth trying to create an environment
(that, where, what) exports can flourish and
businesses make considerable investments.
4. Nations have been long classified into groups (when, that, which) indicate their
economic strengths and weaknesses as well as their stage of development.
5. Economic growth is the government's major objective the aim of (that, what,
which) is to rise the standard of living of the countrys people.
6. In a time of the increased standard of living some groups in
society may not share in the increased prosperity (which, whose,
that) incomes rise less quickly than those of other groups.
Pensioners, students, unemployed, disable may comprise such
groups.
7. Much attention in international economic and political affairs
focuses on the welfare gap between the developed and developing
nations. Comparisons made among countries (when, what,
which) use such measures as population, per capita income
and wealth, labour costs, prices etc.
51
8. The scope of economics is indicated by the fact with (which,
what, that) it deals. The latter consists mainly of data on output,
income, employment, expenditure, interest rates, prices related
with the activities of production, consumption, transportation and
trade.
10. It is important (what, that, which) the growth of population has not exceeded the
growth of the national income.

4. Translate into Russian. The sentences are based on the rule of


sequence of Tenses.

1. The deputy said that economic growth was a major objective of the
government. 2. The participants of the seminar wondered what factors could
encourage the development of businesses. 3. The minister said that for many years
he had believed in justice and peace for the people of South Africa. 4. The workers
of the factory wanted to know when the problem of pay rise would be solved. 5.
The British government reported that it was necessary to prepare the people for
the changes in employment. 6. General Motors confirmed that they would have to
dismiss many workers. 7. The IBM predicted many years ago that the personal
computer industry would become a commodity business. 8. The chairman asked
the participants of the conference if they all had sent their reporters. 9. This
country said that they would continue its underground nuclear tests until a test ban
came into a force.

5. Translate the sentences into English. Remember the rules of sequence


of Tenses.

1. ,
(controlling stocks) . 2.
, . 3.
, 100 . 4. ,
, ,
. 5. , ,
. 6. ,
. 7. , ,
, . 8.
, 6 . 9.
, .

6. Translate the text into English.

.
.
,
.
. .
, , ,
52
.
. - ,
, .
. .
, ,
.

7. Translate into Russian.

Modeling Economic Growth


One very influential, and more specific, model of economic growth was
developed by economist Robert Solow in 1957. Technological innovation allows
capital and labour to be used in more effective and valuable ways. The use of
the Solow growth model served to highlight some important factors in economic
growth. For many years, economists tended to treat growth as primarily a matter of
encouraging savings, investment, and the creation and dissemination of technology.
In more recent years, other economists have suggested that perhaps this model
has directed too much attention to savings and technology. Some have argued that
other factors such as good institutions that support markets, innovations in the
organization of work, or access to global markets should be thought of as equally
important in promoting economic growth.

Read the text and give the most suitable heading for each paragraph.

Text 4B

There are a variety of ways in which the benefits of economic growth may
be enjoyed. By maintaining the same labour force working the same number of
hours, the community may enjoy the gains from its increasing ability to
produce in the form of higher levels of consumption. Alternatively, since any
given output can now be produced with a small labour input, workers may decide
to take part of their improved living standards in terms of increased leisure. It
would also be possible to maintain consumption levels and reduce the
proportion of the population at work by extending the provisions for full-time
further education and/or reducing the age of retirement. Economic growth, as
pointed out earlier, also makes it possible to devote more resources to the social
services without having to cut private consumption.
Nevertheless, in whatever form society chooses to take the further benefits,
economic growth imposes a sacrifice in terms of current living standards. In a fully
employed economy a higher rate of investment can only be carried out by
allocating more resources to the production of capital goods, therefore, will be
less than it might otherwise be. It is true that a much greater annual output of
consumer goods will be forthcoming in the future, but it may be many years before
there is any net gain. Is it worth it?

53
Economic growth also gives rise to a variety of social costs. Rising incomes
make it possible for more people to own cars, but this could lead to problems of
pollution and traffic congestion. Huge modern steel plants, chemical works, oil
refineries, and generating stations may be very efficient on the basis of purely
commercial assessments, but they could impose costs on society by destroying
natural beauty and other amenities. Modern methods of agriculture may greatly
increase yields per acre, but they could have damaging effect on wild life. On the
other hand, we must remember that it is economic growth which makes it possible
to devote more resources to the search for safer and cleaner methods of production.
Perhaps the most disturbing social costs are those associated with a rapid
pace of economic change. The technical progress which makes machines and
production methods obsolete also makes people redundant. Labour will have to
learn new skills, adopt new methods of working and accept more frequent
changes of occupation. While programs of retraining with adequate financial
grants can deal with the problem to extent, there still remains the social cost in
terms of the disruption of a career and the unpleasant breaks in the partners of a
person's working life. The benefits of economic growth may not be evenly
spread; instead of everyone reducing his working week by a small fraction, it is
more likely that some individuals may find themselves completely redundant.

Read the text and answer the questions.


1. What were the reasons of the biggest one-day decline in the
economy?
2. What has Congress been eager to force this year?

Text 4C
A Troubling Fall on Wall Street
The credit crunch, long blamed for the sluggish economy, is sharing blame for
a bad day on the stock market. Combined with a decline in biotech stocks, fears
about proposals to limit bank credit-card interest rates helped drive the Dow
down 120 points last Friday, the biggest one day decline since October 13, 1989.
Even worse damage occurred in the highflying over the-counter market, which
has been setting new records. With credit-card rates hovering near record highs
this year, Congress has been eager to force lower rates. Wall Street read the news
differently. "It dawned on the market that a cap on interest rates could cause less
credit to be available to consumers, not more", observes bank-stock analyst James
McDermott. "Congress is playing with fire". It could spread. Says investment
analyst Paul Kronlokken: "Until now, the high level of the market was the only
thing that was making people feel good about the economy."

Read the text and answer the questions.


1.Why is a jobless benefits package very important?
2.What is "hidden unemployment"?
54
Text 4D
The Plight of the Hidden Unemployed

When, as expected, the President signs into law the new, long-awaited
jobless benefits package, he will extend unemployment payments to the millions
of people who have already exhausted their benefits or will soon do so. But the
law will not help the millions of Americans who want to work but have given up
looking for jobs because they believe there are none to be had. Although the
number of these "hidden unemployed" has not yet hit the recession high of 1.8
million, it has jumped nearly 30 percent since last year, according to government
statistics. Add that to the "officially unemployed" those Americans who are still
hunting for jobs and the number of people not working edges toward 10
million. That's a particularly frightening number to politics.

Mini-presentation
You are asked to give mini-presentations on the topics given below.
1. How to overcome an economic crisis.
2. When we say a high standard of living what do you mean?
3. Favorable economic environment.

Essential Vocabulary to Text 4A

the value of national output


()
the national income
to allow for
allowance ,
in real terms
an injection ,
to sustain , ,
to promote , ,
to attempt , ,

the standard of living
quantity
to exceed
to swallow up
income per head
to share in something , ,
the prosperity ,
a developing economy
to become obsolete ,

55
to go out of fashion
to thrive ,
a spending power
a perceptive manager
a framework
to benefit from -,

buoyant sales ,
to cut rates , ,

to improve , ,

to lead to something/lead -,
up to -
to follow on/out ,
to throw up/out of/away , (), ,
on ()
to place in/with/on , ,
()
to coincide with

Module 5

Business and Economic Policy

Conditional Clauses and Clauses of Time.


Emphatic Structures.
Phrasal Verbs: provide for/with; demand from/of; refer back to

1. Translate into Russian. The sentences contain different types of


Conditional clauses.

1. If the market becomes saturated demand will fall.


2. Unless the country invests more money in education, productivity won`t
increase.
3. Russia will start producing this weapon provided any other country starts doing
this.
4. If we do our job well, we contribute to the national and world economies.
5. It won`t be easy to find a job abroad if you can`t speak the language of this
country well.
6. You won`t be given a bonus unless you exceed your sales.
7. Unless there was good will on both sides, we wouldn`t have to talk about
negotiations.

56
8. If the manager didn`t understand the staff well he wouldn`t be able to gain their
trust.
9. The results of this research won`t be recognized unless they aren`t supported
with statistical data.
10. I wonder what might happen to car manufacturers if we all rode bicycles.
11. Provided you deliver the goods by the end of the week, we will pay all the
advertising costs.
12. If California were a country, its gross domestic product would be the world`s
seventh.
13. If I should know English well I would have helped you with the translation
yesterday.
14. Should he finish his research he would have time to send it to the conference.
15. I wouldn`t have spent my time on the report if I didn`t think it would be of
some use.
16. Five years ago the results of the project wouldn`t have had the same effect.
17. Without active government involvement this industry wouldn`t exist.
18. If people don`t realize how important it is to conserve energy, there will be
nothing left for future generations.
19. If employees had followed safety instructions, they wouldn`t have been
injured during the fire.

2. Complete the following sentences with the correct form of the verbs in
brackets.

1. If we (break) into the Asian market, our turnover would increase greatly.
2. If young employees (to be keen) to build a career and work hard, the
company delivers training to help people reach their goals.
3. We are sure that as soon as customers (to decide) are to buy the new product,
they will place an order.
4. The merged companies will make a profit provided they (to be able) to
create benefit.
5. You will learn a lot about the market situation as long as you (to read) will
the annual report.
6. The company will promote the new food product as long as it (to package) it
with interesting recipes.
7. You could succeed as a businessman providing that you (to get) interested in
finance and management.
8. Provided that you had the money on your account you (can) withdraw up to
100$ a day.
9. The bank would not lend you the money unless you (to have) a good
banking history.
10. After the company (to access) the market potential, it will take part in the
Trade Fair where firms can exhibit samples of their products.
11. In case costs (to be) higher than profit, the business would be unprofitable
and the firm might go bankrupt.

57
12. If a company (to rely) on one supplier of raw materials, it will face huge
losses.

3. Complete the following sentences with your own ideas.

1. The quality of goods produced by this plant will improve as soon as .


2. If the company doesn`t meet the consumer`s demand its goods .
3. If no money had been spent on ecology .
4. The company could expand if .
5. If I were asked to work overtime .
6. Our advertising campaign would be more successful if .
7. If the consumer demand changes next year, the production of some goods .
8. If the company paid my transport costs, I .
9. There will be great progress in science if .
10. Unless the workers were taught how to work with new equipment, .

4. Fit these conjunctions into the gaps in the sentences.

if in case unless until when

1. We are unable to supply the goods .. we receive payment in advance.


2. A spare axle is provided .. one is damaged during routine use.
3. The machine should not be modified .. a service engineer is present.
4. The filter should be changed the unit has been in operation for two
months.
5. The red light will come on .. the machine overheats.
6. The machine should not be touched .. it has cooled down.
7. There`s a first aid box .. someone hurts themselves.
8. The red light will not go out .. the green switch has been pressed.

5. Fill the gaps using the verbs below.

1. If I have enough time, I`ll finish the report tonight.


2. If the machine .., we .. our service engineer at once.
3. If your guarantee .. still valid, any repairs .. free of charge.
4. If they .. a lower bid last month, we . it immediately.
5. What .. you if you .. a colleague stealing substantial quantities of
stationery from your office?
6. If you ..how angry my boss gets, you ..how nervous I feel.
7. If they ..... to pay up, we ..... them a threatening letter.
8. If I ..... the extent of the damage, I .....all our insurance policies!

accept be break down call carry out check contact do finish


foresee have know make realize refuse see send

58
6. Translate into English. The sentences contain Conditionals of different
types.

1. (to treat right),


(to stay with you).
2. (to hold the elections),
(to be the easy winner).
3. (to follow),
.
4. ,
.
5. , (to provide)
.
6. - (to settle)
,
.
7. ,
(to contribute to) .
8. - ,
, .
9. (to reserve the right) ,
.
10. ,
(to lower) , .

7. Translate into Russian the sentences with emphatic structures.

1. It was the industrial revolution that changed a rural society into an urban one.
2. It is this problem that the countries have not taken into consideration.
3. It is in marketing where the quantitative approach is most difficult.
4. It isn`t foreign money that is going to solve Russia`s problems.
5. It is for these reasons that corporations have specialized departments.
6. It was not until 1998 that relations between these countries were normalized.
7. It is due to well-planned programs that extensive data can be collected.
8. It was after this exhibition that I was invited to New York.
9. It is the communication between people, not between computers, which
improves the team work.
10. It is the Supreme Court that makes the final decision in constitutional cases.

8. Translate the words and define the parts of speech they belong to.

1) globe, globalization, global, globally


2) establish, establishment, established, establishing
3) advertising, advertise, advertisement, advertiser
4) reduce, reduced, reduction, reducing
5) introduced, introducing, introduce, introduction
59
6) competitive, competitiveness, compete, competition, competitor
7) participator, participation, participate, participating
8) promotion, promote, promoter, promoting
9) Europe, European, euro
10) circulate, circulating, circulation

9. Complete the following sentences with the words in an appropriate form


from Exercise 8.

1. The ____ in taxes usually stimulates production.


2. Both small and large companies spend money on ____ in newspapers or on
TV in order to promote their goods and services.
3. ____ may help people move from one country to another easily in order to
seek for better jobs.
4. In order to get more profits companies try to ____ goods.
5. The ____ of single currency has made transactions between different foreign
countries much easier and faster.
6. Most countries of Central and Eastern Europe try to join the European Union
as _____ in such a union can provide certain benefits in trade.
7. Famous American companies such as Coca Cola and McDonalds have
already _____ subsidiaries in Russia and they can successfully ______ with
domestic producers and consumers.

10. Before reading the text answer the following questions:


a) Why is it necessary for individuals and organizations to pay taxes?
b) What does the government spend its money on?
c) What is the role of banks in a society?
d) What are advantages and disadvantages of free market economy?
e) In what way does the government interfere in the economy?

Read and translate the text using Essential Vocabulary and any necessary
dictionary.

Text 5A
Business and Economic Policy

The Government has the duty to manage the economy so as to give the
highest possible standard of living to the countrys people and this includes
providing a prosperous environment for its businesses.
There are two categories of the government activities which may affect
businesses in the short and long run. They are: Fiscal policy and Monetary policy.
Fiscal policy refers to a policy based upon taxation. The current taxes can
be split into two broad categories: direct taxes on income and capital, such as

60
income, corporation and inheritance taxes; and indirect taxes on expenditures,
such as VAT and excise duties.
Expenditure by the government can be classified. The main items are
expenditures by central government on items such as social services, defense and
the National Health Service. There is also substantial expenditure to provide
education, libraries and many other services.
In general, a governments fiscal policy is the relationship between the level
of government expenditure and the amount raised in taxation in any given fiscal
year. If the government spends more than it raises in taxation (known as a budget
deficit) then, injections into the circular flow will exceed withdrawals from it and
the level of activity should increase. This might lead to rising employment rates
but also to the danger of inflation and increases in imports. On the other hand, a
surplus of taxation will reduce the level of economic activity. This is termed a
budget surplus and might result in an increase in unemployment. The balance
between taxation and government expenditure is determined annually as the
annual budget is announced.
All governments have fiscal policy even if they do not regard it as a key
policy in their management of the economy. This is true because all governments
spend money and raise taxes and, therefore, some balance or imbalance must
exist between the two.
We cannot predict the precise impact of fiscal policy on the business
environment by simply considering the relationship between government spending
and taxation revenue. The exact economic consequences will depend upon the
types of tax which are altered and the state of the economy prior to the changes
being implemented.
Monetary policy centres on adjusting the amount of money in circulation in
the economy and the level of spending and economic activity. This may involve
the manipulation of the money supply, interest rates or exchange rate.
The first difficulty here is to decide exactly what comprises money. We
should agree that it is notes and coins, and perhaps the money in our current
accounts at the bank, but should we include our savings and deposit accounts?
Part of the difficulty in assessing the effectiveness of monetary policy is the doubt
concerning what exactly is covered by the term money.
It is the central bank that plays a major role in the implementation of a
nations monetary policy. In some countries (for example, Germany) the central
bank operates monetary policy independent of government policy, the Bank of
England implements monetary policy on behalf of the government.
Monetary policy has three main aspects:
Controlling the supply of money
Controlling the rate of interest
Managing the exchange rate

61
The aim of the authorities when controlling the money supply is to limit the
amount borrowed, and hence spent, by businesses and individuals. It is hoped in
this way to limit the level of overall demand in the economy and thus to remove or
reduce inflationary pressure.
Controlling the money supply also affects the sales revenue of businesses.
If Governments relax monetary policy by making money more freely
available to businesses and citizens, expenditure and output will increase,
depending upon the level of demand and the level of economic activity will raise.
The overall impact of changing interest rates will depend upon the size of
the change as well as the initial level.
A one per cent rise in interest rates to 15 per cent may not have a great
impact if the rate of inflation is 20 per cent because the real value of the debtors
repayments is falling by one fifth annually, which more than compensates for the
high interest charges.
A variety of other policies exist to control all or some aspects of the
economy. Their popularity has fluctuated over the years as economic
understanding has progressed and new ideas have become fashionable.

Exercises
1. Answer the questions to the text.
1. Why does the government have the duty to manage the economy?
2. Into what broad categories can the current taxes be split?
3. Give the definition to the term fiscal policy and explain it.
4. Why do all governments have a fiscal policy?
5. What role does Central bank play in different countries?
6. What are the aspects of monetary policy?
7. For what do governments spend money gathered by taxation?
8. What determines the balance between taxation and government
expenditure?
9. Do you know the categories of government activities that affect
businesses? What are they?
10. What is the aim of the authorities when controlling the money supply?

2. Match each word or word combination with its definition:


1. a duty (a) a tax which has to be paid by the taxpayer
direct to the government
2. a fiscal year (b) the act or process of taxing smb. or smth.
3. a fiscal policy (c) a tax that is not paid direct to the government
but is collected by suppliers, stores etc.
4. a direct tax (d) a tax charged on the value of property
transferred at death to an heir.

62
5. taxation (e) a government tax on certain goods and
commodities.
6. an inheritance tax (f) the governments financial year.
7. an indirect tax (g) the plans made and followed by a government
in raising and spending money.
8. a deposit account (h) sums of money not spent but put aside for
future use.
9. savings (i) the amount of an economic good that will be
offered for sale in the market.
10. a supply (j) one tin which money paid in or deposited by a
customer and earns interest at the banks base rate.

3. Choose the correct phrasal verb in an appropriate form to complete each


sentence. Some phrasal verbs should be used twice.
provide against/ for/under/with; demand from/of; refer to/back to

1. What can we do ______ a failure of the wheat crop?

2. Who is going _____ money ______ the additional workers?


3. It was unwise in your speech ______ rising unemployment.
4. The new law doesnt ______ land used for farming.
5. A public health center in every city is ______ the health laws.
6. In requesting an answer, it is wise ______ the earlier letter on the subject.
7. The film ______ its workers ______ their uniforms but they are expected to
keep them regularly cleaned.
8. The GEO ______ obedience ______ his employees.
9. Hard work ______ students in this course.
10. Insurance helps ______ a sudden loss of income.
11. Many successful businessmen ______ their success ______ hard work.

4. Translate into Russian:


Using Profits
Some corporations pay out most of their profits in the form of dividends to
their stockholders. Investors buy into these companies if they want a high income
on a regular basis. But some other corporations, usually called growing
companies, prefer to take most of their profits and reinvest them in research and
expansion. Persons who own such stocks are content to accept a smaller
dividends or none at all, if by rapid growth the shares increase in price. These
persons prefer to take the risk of obtaining a capital gain or rise in value of the
stock, rather than be assured a steady dividend.
The typical corporation likes to keep a balance among these methods of
raising money for expansion, frequently plowing back () about half of
the earnings into the business and paying out the other half as dividends. Unless
some dividends are paid, investors may lose interest in the company.
5. Translate into English.
63
,
, .

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

.
. ,
. , ,
.
. , (,
)
.

Text 5B
Read the text and answer the questions.
1. What was Keynes Educational Background?
1. What contribution did he make to Economics and Economy?
2. What public service was he involved in?
3. What scientific work made John Keynes famous worldwide?

John Keynes was an English economist and political statesman. Keynes was
bornin Cambridge in 1883 where his father lectured at the University in
economics and logics. He attended a local preparatory school and gained a
scholarship to Eton where he gained a number of prizes for his schoolwork.
Keynes impressed his teachers and peers with his ability and cleverness and
won a place at Kings College, Cambridge to read mathematics. As a University
student at Cambridge he led a full life. He was President of the Union and
President of the University Liberal Club as well as a member of the Apostles, a
select debating society. He achieved a first class degree in mathematics.
In the two years after receiving his degree, Keynes entered the civil service
and began to study economics intently. He spent his time as a civil servant
working in the India Office but found the work routine and tedious. In 1908 he
returned to Cambridge as a lecturer in economics, in due course he became a
fellow at his old College of Kings and he remained in this post for the remainder
of his life.
Keynes became editor of the Economic Journal and in this he wrote
extensively on economics. During the First World War Keynes entered
64
government service as an economist for the first time. During the war he rose
rapidly through the Treasury and ended up overseeing the management of the
UKs reserves of foreign exchange. He knew many of the premier figures of the
time and worked hard on behalf of his country.
Keynes opposed the policy by which the Allies forced the Germans to pay
huge reparations for war damages. He wrote pamphlets on these preparations and
on the economic consequences of the peace. In 1930 he published a lengthy work
on money and was appointed as chairman of a panel of economists set up to
advise the government.
It was during this post-war period and through these writings that Keynes
began to shape his views which were eventually expressed in his General Theory
of Employment, Interest and Money in 1936. This revolutionary text advocated a
central role for the government in the management of the economy. He argued for
the governments management of the economy through controlling the level of
spending of individuals and the government itself. After the Second World War,
his ideas on economic management were adopted in most democratic nations.
Keyness public service continued throughout the Second World, through
his health began to fail him after he suffered a severe heart attack in 1937.
Throughout the war Keynes acted as an advisor to the Treasury and wrote on
How to pay for the war. In 1942 he was given a peerage and became Lord
Keynes. His prime role during this conflict was to negotiate with the Americans
on financial matters. He arranged for the Americans to make loans and was
involved in establishing the International Monetary Fund in 1944.
He died in 1946. He left a legacy of a great understanding of the economic
system and how it could be used to the well-being of nations.

Text 5C
Read the text and answer the questions.
1. What are Milton Friedmans academic achievements?
2. Why was M. Friedman very popular in the 1960s and 1970s?

Milton Friedman was born in Brooklyn, New York, in July 1912 the son of
Jewish immigrants. He immediately attracted attention as a brilliant student and
received a number of state scholarships. He studied at a number of American
universities, eventually being awarded a doctorate by Columbia University. Since
then Friedman and his academic achievements have been honoured by a
considerable number of honoury degrees from universities worldwide.
In 1948 at an early age Friedman was appointed Professor of
Economics at the University of Chicago, a post he held until his retirement in
1977 aged 65. Friedman soon began to attract attention for his criticism of all
forms of government intervention in the economy. This brought him into direct
conflict with the ideas of Keynes and his supporters, such as Friedmans great
rival John Kenneth Galbraith. His free market views extended to criticizing many
65
aspects of the welfare state and even public education from which he had so
clearly benefited.
Friedman was at the height of his powers and popularity in the 1950s
and 1970s when undisputed leader of the Chicago School of Economics. This
group of liberal economists advocated the extending of free market economics and
the reduction of the role of the state in managing the economy. Friedmans ideas
had their origins in the work of earlier economists, but he expressed his ideas with
originality. Many of his views have attracted considerable controversy. For
example, he contends that government economic intervention in the form of
imposing minimum wages has an undesirable side effect, in that it creates
unemployment as firms hire less of the now more expensive resource. This,
Friedman argues, lessens the welfare of those whom the government sought to
protect.
Monetarism may not be Friedmans most important contribution to
economic thought, but it is the idea with which, he is most closely identified.
Monetarist economists believe that the sole cause of inflation is increases in the
money supply.
Friedman is credited with saying that inflation is always and
everywhere a monetary phenomenon. Friedmans leadership of the Chicago
School coincided with the rise of inflationary pressures throughout the Western
world alongside the apparent failure of Keynesian economics.
Friedman explains the failure of monetarist policies in the UK and US
by arguing that the government concerned did not wholeheartedly adopt
monetarist philosophies. They did not adopt the growth of the money supply as
their prime economic target. Unlike Keynes, Friedman has survived to see the
overthrow of his ideas and their replacement by new schools of economic thought.
Nevertheless, his impact on economic thought has been immense and his work
was recognized by the award of the Nobel Prize for Economics in 1976.

Read the text and answer the questions.


1. Describe the impact of Burtons decision on the local economy in the west End
of London.
2. What actions could the government take to minimize the impact of the job
losses on the local economy?

Text 5D
Burton Group

Burton Group, the fashion retailer, sacked more than 1900 people yesterday
in an attempt to streamline its bureaucratic head office, remove under-employed
shop assistants, and bear down on its large wages bill.
Burton is dismissing 933 buyers, merchandisers, personnel and financial
staff and others employed in central functions in five different locations in the
West End of London. They represent 25 per cent of the head office workforce. it is
66
also removing about 1000 full-time shop-floor jobs across all its fashion chains,
which include Burton, Top Shop, Top Man, Principles, Dorothy Perkins, Evans
and Champion Sport.
Burton will inform shop assistants over the next six weeks. It expects to
create up to 3000 part-time jobs instead. Most of the casualties will be offered
part-time work.
The cost of the redundancies will be $10-$15 million, Burton said. That cost
will be paid back in the current year in savings on wages.
Paul Morris, the store analyst with Goldman Sachs, applauded the
streamlining, raising, his profits forecast for 2006 from $62.5m to $72.5m. And it
will wash its face in the current year.

Mini presentation

You are asked to give a short talk on a business topic. You have to choose
one of the topics from the four below and then talk for about three minutes.

1. Fiscal Policy in Russia.


2. Monetary Policy in Russia.
3.What needs to be changed in Russian fiscal policy
4.Monetary Policy Rules

Essential Vocabulary to Text 5A


Annual budget
annually
Authorities
Budget surplus
Circular flow
Deposit account
Direct tax
Exchange rate
Excise duty
Fiscal policy -
Fiscal year (, )
Government spending
Income tax
Indirect tax
Inheritance tax
67
Interest rate
Key policy
Monetary policy -
Money supply ( )
On behalf of (-)
Standard of living
Taxation -
To affect smth -
VAT (value added tax)
Withdrawal

Module 6
The Competitive and Technical Environment

The Gerund
Phraseological units: fall over oneself (to do smth), turn up; look for; look
forward to.
Exercises
1. Translate into Russian paying attention to the use of gerunds.
1. Learning rules without examples is useless.
2. His aim is mastering English.
3. Discounting is the process of buying securities for less than their face value.
4. We discussed opening a new business
5. He risks losing all his money.

68
6. She kept on bothering me with her questions
7. Getting through to the right person isnt always easy.
8. My idea of relaxation is going to a fitness centre.
9. They suggested setting up a new company.
10. We succeeded in making a very important presentation.
11.There was no chance of getting an answer to our request before the end of
the week.
12.On pressing the button, you will get your money back.
13.I heard of the experiment having been started last month.
14.By increasing the minimum deposit and reducing the period allowed for
repayment the government has a quick-acting method of reducing the
demand for consumer durables.
15.Most western countries have experienced a sharp slowing down in the rate
of population growth in recent years.
16.We knew nothing about his having been sent abroad.
17.Not getting a refund on faulty goods is what really annoys me.
18. We postponed our visit because of Johns being engaged in the conference.
19.After developing its huge internal resources Russia created the necessary
conditions for increasing its GDP.

2. Use the gerund instead of the subordinate clauses.


1. I remember that I met these businessmen at the conference.
2. He suggested that we should start this survey at once
3. Their Marketing Department propose that the work should be done.
4. I prefer that you solve the problem of outsourcing.
5. He is responsible that the equipment is delivered within a week.
6. He denied that I had informed him about the delay of the flight.
7. She acknowledged that she had made a mistake.
8. We insisted that the work should be done properly.
9. I prefer that we should discuss the problem of takeover right now.
10. They admitted that they had made the wrong decision.
69
3. Complete the following sentences using gerunds and prepositions where
necessary.
1. When I heard the end of the story, I couldnt help
2. The employee was excused.
3. Do you mind.
4. Our marketing strategy needs.
5. I cant bear.
6. We enjoyed
7. Never put off.
8. I dont like the idea.
9. I am used.
10. I cant help
11. Its worth.
12 We are looking forward.

4. Complete the following sentences using gerunds with prepositions as


adverbial modifiers.
For example: Speak to me (before making this decision.)
1. _______________ we agreed to sign the contract.
2. You will improve your work _______________.
3. Speak to me_______________.
4. Ill ring you up _______________.
5. _______________ she began to argue with me.
6. You should prepare all the documents _______________.
7. Dont forget to switch off you computer _______________.

5. Translate into English.


1. .
2. .
3. .
4. .
70
5. , .
6. ?
7. .
8. .
9. .
10. .
11. .
12.
.
13. ,
.
14.
.
6. Before you read the text below answer the questions.

a) What do you mean by the term business?


b) What do you think is essential to do before starting any business?
c) Businesses can be classified by describing where they come in the production
chain: primary, secondary or tertiary. Can you explain the meaning of the terms
primary, secondary and tertiary activities?
d) Can you name any businesses in each of these sectors?
e) What is the meaning of the term competitive environment?
f) Why can businesses be described as integrated systems?
g) How do businesses interact with society?
h) Do you think that the study of business calls upon knowledge from many
disciplines?

71
Read and translate the text using Essential vocabulary and any other
dictionary.

Text 6 A
The Competitive and Technical Environment
The Competitive and technical environment in which businesses operate is
an important part of the overall business environment. In some ways firms shape
their own competitive and technical environment by creating and developing new
ideas. In other ways they have to react to changes in the environment as
competitors introduce new technology, change prices or alter their advertising
strategy. In all of these matters, change plays a central role.
Some businesses are more subject to change than others. A business
involved with the design and manufacture of computer equipment is highly
dynamic, whereas a business which is involved with insuring peoples lives tends
to be less dynamic. However, all businesses, regardless of how dynamic they are,
operate in a changing environment and must contend with this.
If the word dynamic implies change, then the most dynamic of businesses
is the new business which goes from nothing to something very quickly.
However, the startup business is a special case to change. All businesses have to
look for new opportunities for providing products or services in order to maintain
growth, replace obsolete or declining products, and keep existing customers happy
by offering a wider range of products.
New businesses obviously do not have existing customers, but they have
opportunities either to supply new customers with products or services already
available on the market, or to supply new products to a new market. Often,
potential customers are slightly suspicious of purchasing products or services from
a new supplier who does not have a track record. Many new businesses avoid
this problem by arranging to supply wellknown products, often with an
agreement from a major supplier. This can range from opening a corner shop to
retail well-known products to purchasing the rights to be the sole supplier in
defined locality, such as opening a Kentucky Fried Chicken take away in a major
town. The latter is an example of franchise.
It is often thought that to be really successful in business it is necessary to
design and produce a product or service which has never existed before. As a
result of its novelty, customers will fall over themselves in trying to buy it.
Sometimes this does happen: the Rubik Cube was a good example of a highly
innovative product. This toy had considerable success for a period until the
novelty wore off and competition from imitators reduced sales as quickly as they
had arisen. However, before the deluge of cheap imitations flooded the market, the
Hungarian designer, Professor Rubik, became a millionaire.
72
At the other end of the scale, the Sinclair C5 electric propelled bicycle
was an unsuccessful attempt to change transportation habits. Although inspired by
Sir Clive Sinclair, a successful designer of low cost computers, and designed by
professionals, it failed to attract customers in any significant numbers and a great
deal of money was lost. It is possible that these roles might have been reversed:
the Rubik Cube could have been the disaster and the C5 the success story!
Perhaps we all have a brilliant idea at some time in our lives. The problem
is that these ideas turn up when least expected and therefore the timing is usually
wrong. How many times have you heard people talk about a failed idea, that it
was ten years too early or that someone was born before his time?
Employees can be a good source of ideas for businesses, for final products
as well as ideas for improving production or administration methods. Some
employers offer cash incentives in an effort to attract such new ideas. However,
businesses are frequently criticized for ignoring this valuable source of ideas.
The generation of new ideas can be achieved through brainstorming
sessions. This is where a group of people, usually with a chairperson, concentrate
on generating as many ideas as possible in response to a simple question for
example, How do we diversify our product range into the catering industry?
Some ideas, which may be extreme and unsuitable, could well lead to very
plausible ideas from other members of the meeting. The ideas are all noted in
sufficient detail for future analysis. At the end of the brainstorming session, all the
ideas are considered and the best are selected to go forward to a more detailed
examination. A report on all the ideas generated is sent to members of the meeting
saying why they have been rejected, or stored, or taken a step further. A single
person is capable of generating many ideas, though a group is perhaps one natural
forum for developing ideas. Asking individuals for suggestions should also be part
of the information gathering stage.
Exercises
1. Answer the questions to the text.
1. How do firms shape their own competitive and technical environment?
2. What kind of businesses are more subject to change?
3. Why do all businesses have to look for new opportunities?
4. What opportunities do new businesses have?
5. What does the term franchise mean?
6. Is it always true that to be really successful in business it is necessary to
design and produce an innovative product or service? Why?

73
7. Who is a good source of new ideas for business?
8. How can generation of new ideas be achieved?
9. What is the agenda of brainstorming sessions?

2. Choose the correct phrasal verb in appropriate form to complete each


sentence.
(turn up, fall over oneself, look for, look forward to)
1. The manager ( ) to be nice to his customers.
2. The chairman ( ) trying to persuade the committee to share his
opinion.
3. Our business partner ( ) a suitable hotel at the moment.
5. Every year the students ( ) the holidays coming.
6. Dont worry, I am sure a job ( ) soon.

3. Look back at the text and find:


- which adjectives go with: environment, technology, strategy, role,
equipment, business, case, opportunities, supplier, success, imitation,
attempt, computers, idea, methods, incentives, source, industry, session,
examination;
-which verbs go with: ideas, new technology, prices, advertising strategy,
central role, new opportunities ,growth, products, customers, problem,
service, sales, market, habit, customers, methods, product range;
-phrasal verbs which mean: to be very enthusiastic about doing something,
to happen unexpectedly or by chance, to search for someone or something;
-terms which mean: your reputation based on the things you have done, a
meal that you buy in a restaurant or a shop and take home to eat, an industry
that provides food and drink for organizations.

4. Match each word to its definition.


1. competitor a) to make smth better, to become
better
2. advertising b) an increase in size, amount, or
degree.
3. range c) telling people about a product or
service in order to persuade them to
buy it
4. retail d) to decrease in quantity or
importance
5.growth e) to buy smth
74
6. purchase f) to change
7.alter g) a person, product, company,
country that is competing with
another
8. decline h) a set of similar products made by a
particular company or sold in a
particular shop.
9. improve i) to sell goods to the general public
in shops.
10. franchise j) an arrangement in which a company
gives a business the right to sell its
goods or services in return for a fee or
a share of the profits.

5. Match the words given in the box to complete the sentences.


Competition, will provide, to maintain, environment, implies, has
declined, suspicious, to inspire, to improve
1. The marketing team will need communication with the
suppliers.
2. Her resignation will do little...confidence in a company.
3. Colleagues became.when he started acting strangely.
4. The number of people buying their own homes
5. It is sometimes hard .the right balance between your work and
your home life.
6. The deal...Rolls-Royce with work for the next five years.
7. The increase in the inflation level that wages are rising too
fast.
8. In the new global business...the exchange of information is a key to
success.
9..between the two cable companies has driven down the price
for program services.

6. Insert gerunds and prepositions where necessary. Translate the


sentences.
1. Talented leaders are good (produce) creative ideas.
2. Our success depends (introduce) new technology.
3. Our employees are involved (create) great ideas.
4. Potential customers are suspicious (purchase) products from a new
supplier.
5. Many new businesses avoid (sell) new, unknown products.
75
6. (produce) a product which has never existed before is very difficult.
7. (flood) the market with the Rubik Cube Professor Rubik became a
millionaire.
8. Everything depends (motivate) people.
9. (generate) new ideas can be achieved through brainstorming sessions.
10. (Ask) individuals for suggestion should be part (gather) information.

7. Translate into English.


1. ,
.
2. , .
3. ,
,
.
4.
,
.
5. , ,
.
6.
.
7. ,
.
8.
.
9.
,
.
10.
.

Read the text and answer the questions:

1. What is Sir Clive Sinclair famous for?


2. Why was his electric tricycle a commercial disaster?
3. What reputation does the UK have?
4. What is Sir Clive`s ambition?
5. Why does he think that it is important to innovate?

Text 6B
Sir Clive Sinclair

Sir Clive Sinclair was born at the start of the Second World War in 1940
and attended thirteen schools in Surrey and Berkshire. He left aged seventeen
76
having shown some real ability in mathematics and having developed a keen
interest in the then developing field of electronics. Whilst at school he had
designed a simple calculating machine and a micro-radio. On leaving school, he
joined Practical Wireless as a journalist and a year later became its editor. He held
the job for a further two years before setting up his own company to produce the
first of his many inventions. These inventions then followed one after the
other: micro-radios, small amplifiers, small calculators, and then his well-known
computers, the ZX80, the ZX81, the Spectrum and the Z88 laptop.
He was Chairman of Sinclair Radionics from 1962 to 1979 and, since
then, has been Chairman of Sinclair Research. He is perhaps best known for
inventing and manufacturing the electrical tricycle, the C5. This was a
considerable technical achievement, but a commercial disaster with few sales.
This contrast reflects Sir Clive accurately: undeniably brilliant at invention, less
successful at developing these ideas into commercial and profitable products.
Some would argue that it is true of the UK as a whole. The country has a high
reputation for research and invention, but other nations and their companies tend
to develop and market the ideas.
However, Sir Clive is not daunted! In 1992, he launched his battery-
powered bicycle, the Zike. This weighed eleven pounds, was rechargeable within
an hour and was introduced in the middle of a recession. He was not satisfied
with that. His ambition was to develop a successful and practical all-purpose
electric car.
In November 2010 Sir Clive told The Guardian newspaper that he was
working on a new prototype electric vehicle called the X-1. Technology has
moved on quite a bit, there are new batteries available and I just rethought the
thing. The C5 was OK, but I think we can do a better job now

Read the text and answer the questions:

1. What idea did Ben have while watching his goldfish?


2. Do you think Bens idea has any merit? Give your reasons.
3. Would you lend any money to Ben to develop his idea further?

Text 6C
Goldfish Windows

Ben was watching his goldfish one day when he had an absolutely brilliant
idea for doing away with curtains! Basically, Ben was a bit lazy in cleaning out the
goldfish tank and the water was getting exceedingly murky. So murky in fact that

77
you could not actually see the other side of the tank when you looked in from one
side.
That's when the idea hit him. The goldfish could 'retire' by withdrawing to
the other side of the tank, where it was no longer visible. Why not, he thought, have
windows which contained a liquid, probably heavily dyed water. The windows
would comprise three panes of glass. There would be a permanent air gap between
the two outer panes, just like conventional double-glazing, but the gap between the
two inside panes would be filled, or not, with the dyed liquid.
Instead of 'pulling curtains', all you had to do would be to raise the level of a
tank of dyed liquid so that the gap between the two inside panes became opaque. If
you wanted to see through the window, you would just lower the external tank, and
the window space would empty. Ben was not sure at this stage how the lowering
device would work.
Ben's imagination started working at a furious pace. Would it not be possible
to use lots of different coloured liquids so that architects could create a
'psychedelic' effect on skyscrapers? Could the liquid inside the window remove
heat from the tropical sun and heat up washing water? Could the coloured liquid be
a really strong dye so that if any burglar tried to break the glass he would be
covered in a very identifiable colour? Was there no limit to Ben's imagination?
Could he become a millionaire overnight?

Read the text and answer the questions:

1.What idea did Dave Allen have?


2. How much money a year could be saved by British industry and commerce if
all employers adopted suggestion schemes?
3. What does a survey by Industrial Relations Services show?

Text 6D
The Suggestion of the year

DAVE ALLEN had good idea last year. Mr. Allen, a works area supervisor
for Dexion the furniture maker, suggested that models be produced to help
architects experiment with furniture as they designed offices. The UK
Association of Suggestion Schemes and the Industrial Society decided this was
the suggestion of the year, and sent Mr. Allen to Florida for a holiday.
According to the UKASS, up to 1bn a year could be saved by British
industry and commerce if all employers adopted employee suggestion schemes.
Some of Britain's largest organizations, in both the public and private sectors, are
committed to such schemes. Claimed savings include 20m for the Department of
Social Security, 7m for British Rail and 5m for Rover.
However, British business has been much less keen to set up schemes than its
Japanese and American counterparts, and where they do exist, they have less
78
impact. A survey by Industrial Relations Services shows that while the average
British worker in a scheme makes a suggestion once every five years, the average
in Japan is a staggering 24 suggestions a year.

Mini presentation

You are asked to give a short talk on a business topic. You have to choose
one of the topics from the three below and then talk for about three minutes.

1. Competition
2. The Importance of Innovations in Technology and Science
3. The Effect of innovation on the Development of the Society
4. Business environment

Essential Vocabulary to Text 6A.



advertise (v)

advertiser (n)

advertising (n)

advertisement (ad) (n)
alter (v) ,
available (adj)
to be subject to (change)
to be suspicious of
compete (v)
competition (n)
competitive (adj)
competitor (n)
to contend (with) , ()(.)
,
deluge (n) ,
fail (v)
to fall over oneself
flood (v)
the former (adj)
franchise (n) , .
imply (v) ,
improve (v) ,
inspire (v) ,
the latter (adj)
maintain (v) ,
79
obsolete (adj)
operate (v) ,
range of products
retail (v) .
shape (v)
supply (v) ,
to turn up ,

Active Voice
Simple Continuous Perfect Simple
(V) (to be + Ving) (to have + Ved/3)

Present I translate I am translating I have translated


80
He translates He is translating He has translated
We are translating
Do you translate? Have you translated?
Does he translate? Are you translating Has he translated?

I dont translate I am not translating I havent translated


He doesnt translate
Past I translated. I was translating I had translated
(I went. 2f.) We were translating
Had you translated?
Did you translate? Were you translating
I hadnt translated
I didnt translate. I wasnt translating

Future I (shall) will translate. I( shall) will be translating I(shall) will have
He will translate. translated

Will you translate? Will you have


translated?
I wont translate.
I wont have translated

Passive Voice
Simple Continuous Perfect Simple
(to be + Ved/3f) (to be + being + Ved/3f) (to have + been + Ved/3)
Present The letter is translated The letter is being The letter has been
The letters are translated translated translated
The letters are being The letters have been
Is the letter translated? translated translated
Are the letters translated?
Is the letter being Has the letter been
The letter isnt translated translated? translated?
The letters arent Are the letters being Have the letters been
translated translated? translated?

The letter isnt being The letter hasnt been


translated translated
The letters arent being The letters havent been
translated translated
Past The letter was translated The letter was being The letter had been
The letters were translated translated translated
The letters were being
Was the letter translated? translated
Were the letters translated? Had the letter been
Was the letter being translated?
The letter wasnt translated?
translated Were the letters being
The letters werent translated? The letter hadnt been
translated translated
The letter wasnt being
translated
The letters werent being
translated

81
Future The letter will be The letter will have been
translated translated

Will the letter be Will the letter have been


translated? translated?

The letter wont be The letter wont have been


translated translated

Perfect continuous
Present Past Future
To have I have been translating I(we, he) had been I will have been
+been+ He has been translating translating translating
(V+ing) Had you been translating
Have you been I hadnt been translating. Will you have been
( since\ for) translating? translating?
Has he been translating? . I wont have been
I havent been translating.
translating.

He hasnt been
translating.

Comparative and Superlative Adjectives and Adverbs

Positive Comparative Superlative


) Short shorter (the) shortest

busy busier (the) busiest


)
-er,-y.-ow,-le

important more important ( the) most important

much (the) most


many more

little less (the) least

good better (the) best


well
(Irregular
Forms) bad worse (the) worst

far farther farthest


further furthest

82
late
later latest
latter last

Comparative Constructions

Translation Examples
asas , ... This job is as hard as the previous
one.

not as (so).as , The new warehouse is not so (as) large


... as the old one.
The (bigger) The harder you work the higher your
the (stronger) salary may be.
compared to Moscow Underground is more
( with) beautiful compared to London
in comparison to Underground
much -er than / () The London Stock Exchange is much
a lot older than the Singapore Exchange.
far

similar to - This mobile phone is similar to mine.

the same as . The price for some items in this


supermarket is the same as in ours
(twice) as (much) () () This computer is twice as expensive
as as than that one.

Modal Verbs and their Equivalents

Present Past Future


can/could 1., I can translate it. I could translate
Could you please articles when I
2. translate the was at school.
83
3. article?

to be able , I am able to I was able to I will be able to
(to) translate the translate the translate the
article/ article article
yesterday. tomorrow.
must 1., I must translate
this article.
2. You must
3. translate the
article.
He must be
translating right
now.
to have (to) , I have to translate I had to I will have to
the article. translate it. translate it.
to be (to) I am to translate I was to I will be to
the article. translate the translate the
article. article.

should 1. I should to
( , translate the
must) article.
2. You should
ought to 3., translate articles
more often.
You should not
translate articles
so carelessly.

May/might 1. I may translate it. He said I might


2. (1. translate it.
.
2. , ,
.)
To be I am allowed to I was allowed I will be
allowed (to) translate it. to translate it. allowed to
translate it.
To be
permitted

Sequence of Tenses

-
-
.

He lives in New York.


84
I thought he lived in New York. .
Mother is sleeping.
I knew that mother was sleeping. .
He has returned from London.
I was told that he had returned from London. .
He bought a new car.
They heard he had bought a new car. .
Mary will send us a letter.
I supposed Mary would send us a letter. .

(..
)

What is Nick doing? Mother asked what Nick was doing.
Where do you live? The policeman asked me where I lived.

When did you come home yesterday? Dad wondered when I had come home the day
before.
When will your mother come home? The teacher wondered when our
mother would come home.

What have you prepared for the lesson? The class-master wanted to know what Peter
had prepared for the lesson.

Do you play chess? Fred asked me if I played chess.
Did you skate last winter? Alex wondered whether I had skated last
winter.
Are you listening to me? The doctor asked if I was listening to
him.
Have you done your homework? The class master wondered whether I
had done my homework.
Will you see Alice tomorrow? Peter asked if I would see Alice the
next day.
Are you busy? Ann asked me if I was busy.

Keep quiet! The teacher asked me to keep quiet.

Dont make noise! She told me not to make noise.


, :

85
today that day yesterday the day before
tomorrow the next day .ago .before
this that here there
last year the year before last month the month before
last. the..before next.. the following..
now then

Conditionals

, ,


(I )
(II ) (III )


Ill come if I am free. I would \ if I were free. He would if he had been
should come have come free.
yesterday
, .
. , .
,
He did it if he was free. He would do if he were He would if he had been
it free. have done it free.
before
.
, , . .
,
I am never if my watch is I would never if my watch I would not if my watch
late right. be late were right. have been late had been
yesterday right.


, , ,
. . .

Gerund.

Forms

Active Passive
Indefinite writing being written
Perfect having written having been written

Functions

86

1. Smoking is not allowed here. ()

2. His hobby is driving a car.
().
(
to be)
3.
) ( The car needs repairing.
) .

) (
) They spoke about their traveling to
the North. .

4. Their plan of starting up a new


business failed. .
5. After receiving good results they ()
(After, before. on. at, stopped experiments () ()
in, for, by, without,
etc.) .

5. We knew of Johns having finished ,


his experiment. .

.
.. - . -
: , 1993.
Adam Gadsby. Longman Business English Dictionary. Harlow: Pearson
Education Limited, 2001.
Rosemary Courtney. Longman Dictionary of Phrasal Verbs. Harlow:
Longman Group Limited, 1998.
Reference and Electronic Media Division of Bloomsbury Publishing Plc.
Macmillan Phrasal Verbs Plus Dictionary, 2005.
Hornby A.S. Oxford Advanced Learners Dictionary. Oxford University
Press, 2005.
Surridge M., Bushell T., Gunn P. The Business Environment. London: Collins
Educational Ltd, 1994.
.

The Economist. London, 2011-2013.

87
Contents
..
Module 1.
Simple Tenses. Continuous Tenses. Future Plans and intentions.
Articles. Multifunctional words: it, that, one. There is | are.
Exercises
Text 1 A. The Economy and Business
Exercises..
Text 1 B. Small Firms Face
Squeeze
Text 1 C. Sole Traders and Partnership..
Essential Vocabulary to Text 1A .
Topics for Presentations.
Module 2
Perfect tenses (Simple)
Comparative and Superlative Adjectives and Adverbs
Exercises
Text 2 A. Employment and Unemployment.
Exercises..
Text 2 B. Degree of Despair for Children of the Slump
Text 2 C. Wage Rises Exert Pressure on Costs
Essential Vocabulary to Text 2A
Topics for Presentations..
Module 3
Perfect Continuous. Modal Verbs. Causatives.
Exercises
Text 3 A.Inflation
Exercises...............................................................................................................
Text 3 B. Top Value Tesco Raises Price Fastest.
Text 3 C. The Effects of Inflation
Essential Vocabulary to Text 3A
Topics for Presentations

Module 4..
The Object. Objective Clauses. The Sequences of Tenses
The Attribute. Attributive Clauses.
Exercises
Text 4 A. Economic Growth
Exercises..
Text 4 B..
Text 4 C. A Troubling Fall on Wall Street
Text 4 D. The Plight of the Hidden Unemployed..............................................
Essential Vocabulary to Text 4A .
Topics for Presentations.

88
Module 5.
Conditional Clauses
Exercises
Text 5 A. Business and Economic Policy.
Exercises..
Text 5 B. John Maynard Keynes.
Text 5 C. Milton Friedman.
Text 5 D. Burton Group
Essential Vocabulary to Text 5A .
Topics for Presentations.

Module 6
The Gerund
Exercises
Text 6 A. The Competitive and Technical Environment
Exercises..
Text 6 B. Sir Clive Sinclair
Text 6 C. Goldfish Windows..
Text 6 D. Suggestion Boxes of the Year.
Essential Vocabulary to Text 6A .
Topics for Presentations.

89

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