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МИНИСТЕРСТВО СЕЛЬСКОГО ХОЗЯЙСТВА


РОССИЙСКОЙ ФЕДЕРАЦИИ
ФГБОУ ВО ПЕНЗЕНСКАЯ ГСХА

Кафедра «Философия, история и иностранные языки»


С.Ю. Дмитриева

ENGLISH FOR ECONOMISTS AND MANAGERS


(Английский язык для экономистов и менеджеров)

Учебное пособие

Пенза, 2016

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УДК 802.0(075)
ББК 81.2Англ. (я7)
Д 53

Рецензент – И.Е. Шпагина, кандидат экономических наук, доцент


кафедры «Бухгалтерский учет, анализ и аудит» ФГБОУ ВО Пензенская
ГСХА

Дмитриева, Светлана Юрьевна


Д 53 Английский язык для экономистов и менеджеров: учебное
пособие / С.Ю. Дмитриева. – Пенза: РИО ПГСХА, 2016. – 217 с.

Учебное пособие подготовлено в соответствии с рабочими програм-


мами дисциплины «Иностранный язык», разработанными для студентов
уровней бакалавриата, обучающихся по направлениям подготовки 38.03.01
– Экономика, 38.03.02 – Менеджмент; специалитета, обучающихся по на-
правлению подготовки 35.05.01 – Экономическая безопасность в качестве
основного пособия, а также может стать удачным дополнением к основно-
му курсу магистратуры, т.к. поможет разнообразить языковое общение на
занятиях по дисциплине «Деловой иностранный язык».

© ФГБОУ ВО
Пензенская ГСХА, 2016
© С.Ю. Дмитриева, 2016

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Предисловие

Данное пособие предназначено для студентов 2-го курса


экономического факультета, продолжающих изучать дисциплину
«Иностранный язык» (английский). Содержание, объем и струк-
тура пособия также отвечают программным требованиям и на-
правлены на формирование следующих общекультурных компе-
тенций:
ОК-14: Способность к деловому общению, профессиональ-
ной коммуникации на одном из иностранных языков
ОК-16: Способность работать с различными источниками
информации, информационными ресурсами и технологиями,
применять основные методы, способы и средства получения,
хранения, поиска, систематизации, обработки и передачи инфор-
мации, применять в профессиональной деятельности автоматизи-
рованные информационные системы, используемые в экономике,
автоматизированные рабочие места, проводить информационно-
поисковую работу с последующим использованием данных при
решении профессиональных задач
ОК-4(ОК-5 менеджеры ): Способность к коммуникации в
устной и письменной формах на русском и иностранном языках
для решения задач межличностного и межкультурного взаимо-
действия.
ОК-7 Способность к самоорганизации и самообразованию.
Основной целью данного пособия является формирование у
студентов навыков самостоятельно читать спецлитературу на
английском языке с целью извлечения из нее необходимой ин-
формации, пользоваться иностранным языком в сфере профес-
сиональной деятельности.
Пособие имеет четкую и логичную структуру. Задания
представлены последовательно в понятной и доступной форме,
что способствует качественному усвоению материала при само-
стоятельной подготовке. Автором выбраны все необходимые
грамматические явления, которые характерны для спецлитерату-
ры. Тематика и терминология текстов отвечают программным
требованиям.

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UNIT I
THE BASICS OF ECONOMICS
Lesson 1 Economics
Lesson 2 Economic Outline of a Country
Lesson 3 Economic Development of Russia
Lesson 4 Economic Security
Lesson 5 Demand and Supply
Lesson 6 Money and Banking System
Lesson 7 Agricultural Economics

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LESSON 1

Compare the words:


Economy – economics
Economic – economical

Economy is a system by which a country‟s trade, industry and money


are organized.
Economics is the study of the way goods and services are produced.

Task 1. Use: «economy» or «economics.»


Applied …; natural …; market …; command …; agricultural …; de-
scriptive …; developed …

Economic means relating to the economy of a particular country or


region.
Economical means 1) not spending or costing much money; 2) not
wasting anything.

Task 2. Use: «economic» or «economical.»


… theory; … faculty; … wife; … method; … laws.

Introduction Text
Economics

Economics – how people satisfy their needs and wants – has


been a powerful force in history. People have always struggled with
others over land, oil, gold, fishing rights and so on. Every country tries
to provide for its people. How countries do that is the story of eco-
nomics.
Think of all the things you have got. You have clothes, food, and
a home. Perhaps, you have got a bicycle, a stereo, or a car. Ask your-
self which of these things you could do without. Can you do without
food? Yes, you could do for a while, but not for long. Food is some-
thing you must have in order to live. Food is something we call a
need.

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Even though you may have got a great many things, you proba-
bly do not have everything you would like to have. A thing you could
do without is called a want.
Resources can be divided into three groups: land, labour and capital.
Everything we need or want is produced using these three things.
Land, labour and capital are called the factors of production.
Land resources include more than just land itself. Soil, of course,
is an important resource. It lets us grow food. Also, parts of the land
are plants, animals, water, oil, and metals. All these things can be tak-
en from the land. But the amount of land, water, oil, and so on is li-
mited.
Labour is the work people do with their hands and their minds.
Carpenters, for example, build houses with their hands. Singers, make
music with their minds and voices. A carpenter provides goods. A
singer provides services. Both are the parts of the resource we call la-
bour. Labour is also a limited resource. Not everyone is a good car-
penter or singer. You probably wouldn’t want a house built by your
favourite singer, and you probably wouldn’t want to listen to your
carpenter sing. Since not everyone can do everything well, labour is a
limited resource.
Capital is the machines, buildings, and tools used to make things
(products). Capital is something made by people. Like land and la-
bour, capital is a limited resource.
Land, labour, and capital all work together to produce goods and
services we need. A product, such as a house is made of wood and
stone from the land. Workers put these materials together with their
labour. They also use capital such as hammers, saws, trucks and other
equipment in their work.
As for services, imagine a musical group giving a concert. The
place where the concert is held is land. The singing and playing of the
band members is labour. The building where the concert is held is
capital.
Goods and services are provided because people work to meet
the needs and wants of themselves and other people. People all over
the world have many of the same needs and wants. However, because
of limited resources we can’t produce everything that everybody
wants. There is a scarcity of resources. Therefore, we have to make

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choices. The value of things you give up when you make choices is
called opportunity cost.
An economic activity is anything people do to meet wants and
needs. The things people do to provide goods and services can be di-
vided into three groups. We call these groups the basic economic ac-
tivities. They are: taking materials from the earth; making things and
providing services.

Exercises
1. Scan the text.

2. Answer the questions: «Have you got any new information?


What is it about?» Use: I’ve learned that (about) …

3. Continue the following: a) Economics is … b) A need is … c) A


want is … d) Factors of production are … e) We can’t produce every-
thing we want, because of …

4. Comment on the table. Give your examples to illustrate it.

resources
Land (soil, water, oil, Labour (hands and Capital (machinery,
metals,…) minds) buildings, tools)
factors of production goods, services

5. Refer the following words into two categories: goods or servic-


es: haircuts, food, cars, taxi, education, shoes, houses, medical care,
roads, fitness club, a dictionary, translation.

6. In groups of four, discuss the question: «Economics has been


called the study of scarcity and choice. How does this relate to your
budget for a week?»
Report back to the entire class on your major conclusions.

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Grammar Revision

to be, to have, to do
1. Translate the sentences paying attention to the different func-
tions of the verbs «to be,» «to have,» «to do.»
1) He is our new bookkeeper. 2) Where is your resume? 3) A
company is also called a business. 4) When a manufacturing company
expands it is to increase its production. 5) Are you on business? – Yes,
I have to go, because Petrov is ill. 6) Do you run your own business?
7) I do my work on time. 8) I have got a lot of duties. 9) I do play
chess well. 10) We don’t want to employ more workers. 11) Poor
countries have to export raw materials abroad. 12) Do you have
enough time for hobby? 13) When resources are limited choices are
limited as well. 14) The UK economy has recently experienced eco-
nomic growth combined with low inflation and falling unemployment.
15) They are making a report. 16) I have ( got ) a cold. 17) He has an
appointment. 18) I’ll do my best. 19) He is the most interesting
person I have ever met. 20) People have to make choices because of
the scarcity of resources.

2. Use: am, is, are.


1) He … a millionaire. 2) You … French. 3) I … a new manag-
er. 4) It … a car. 5) Nick … from Glasgow. 6) Ann … a doctor.
7) We … to go there. 8) He … checking the accounts now. 9) We …
on business. 10) They … invited to the party. 11) What … the oppor-
tunity cost? 12) Profit dictates how goods … produced.

3. Use: have (got), has (got).


1) We … many relatives in Moscow. 2) They … to study many
subjects. 3) She … a good computer. 4) I … done the work. 5) Recent
years … generally seen the fastest growth in the services sector.
6) David and Mike … to correct all their mistakes in the balance-
sheet. 7) Nick … to make up a price list. 8) I … a good day.

4. Use: do, does.


1) … you like this book? 2) We … this work together. 3) You …
not play tennis. – But I … 4) He … his work on time. 5) Julia and Ann
… work in my office. 6) My brother … not want to live in a noisy
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street. 7) I … not know any country with a pure market or command


economy. 8) … mixed economy contain elements of both types?

noun as an attribute

1. Translate the word combinations.


Market economy, farm product, soil quality, pension fund, pro-
duction possibilities, production level, opportunity cost, command
economy, consumer goods, weather forecast, summer rain, winter hol-
idays, English test, public choice theory, government support, plant
protection means, farm labour, resource scarcity, key question.

2. Make up various word combinations and translate them.


Harvest, school, university, centre, time, day, the Earth, year,
government, duty, farm, village, autumn, apple, population, lamp, pie,
home, assistant, task, lab, cattle, table, beef, library, credit.

questions

3. Ask questions to the sentences (general, special).


1) I study descriptive economics. 2) The amount of resources is
limited. 3) We have done the work. 4) People have to make choices
every day in their life. 5) He is writing a report on the topic «Demand
and Supply». 6) Yesterday she came early. 7) Often, nonprofit groups
work with a fixed budget. 8) Ann will make a report on profit. 9) In a
command economy decisions were left to bureaucrats (чиновники).
10) I shall have made up this document by 6 o’clock.

Word-building
4. Give nouns for the following verbs. Eg. to work – worker
to operate – …
to produce – …
to make – …
to distribute – …
to buy – …
to sell – …
to compete – …
to export – …
to import – …
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5. Translate the words.


Produce – to produce – productive – productivity – production –
producer
Profit – profitable – profitability
To consume – consumptive – consumer – consumable – con-
sumption

Useful Words and Word Combinations

activity – деятельность
amount – количество, объем
consume – потреблять
consumption – потребление
demand – спрос
distribution – распределение
expenditure – расходы, затраты
factors of production – факторы производства
free of judgment – беспристрастный
give up – отказаться, пожертвовать
goods – товары
individual – человек
input – капиталовложения
key – ключ, ключевой
law – закон
make a choice – делать выбор
make a decision – принимать решение
output – выпуск продукции
owe – обязан
owe their origin – обязан своим происхождением
prediction – предсказание, прогноз
price – цена
product – изделие, продукт
production – производство
profit – прибыль
quality – качество
quantity – количество
relationship – отношение
sacrifice – пожертвовать
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satisfy – удовлетворять
scarce – дефицитный
scarcity – дефицит
supply – предложение
surplus(es) – излишки
trade – торговля
yield – урожай, доход, приносить доход

Exercises
1. Translate the sentences.
1) Business activity is aimed at getting profit. 2) Not all re-
sources are scarce. 3) Because resources are scarce, only a limited
amount can be produced from them, and there arises the necessity for
choice. 4) Macroeconomists typically do not worry about the break-
down of consumer goods into cars, bicycles, televisions, and calcula-
tors. 5) The law of demand was discovered by A.A. Cowrnot. 6) The
term opportunity cost refers to the most desirable of the alternatives
not chosen. 7) Consumers are ready to buy more at lower prices.
8) Expenditure should ideally not exceed income. 9) Land, labour and
capital are called the factors of production. 10) Industrial output in-
creased by four per cent last year. 11) Investors have made a 14 %
profit in just three months. 12) This committee decides how the mon-
ey is distributed.

2. Match the words with their definitions.

Consumer a) condition of having comfortable living and work-


Income ing conditions, good health, etc.
Employment b) money that someone gets from working or from
Welfare investing money
c) someone who buys and uses goods and services
d) a situation in which someone has regular paid
work

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Reading

Text A
The Science of Economics

Economic activity began with the advent of towns and villages,


which, in turn, owe their origin to the agricultural surpluses that al-
lowed men and women to turn to crafts and trades. But the science of
economics really began only about three hundred years ago, with the
publication of Adam Smith’s monumental book «The Wealth of Na-
tions.»
Economics is a study of the production, distribution, and con-
sumption of goods and services in a society. It concerns itself with
two key variables: inputs and outputs. Inputs include labour, land and
commodities, such as energy or minerals, which companies require to
turn out their products. Outputs are the goods and services that com-
panies produce for consumption or further production. Economics is
concerned with relationships. It also employs scientific tools to dis-
cover the laws that regulate economies. The description of economic
facts and relationships falls within the purview of descriptive econom-
ics, so named because it is supposed to be free of judgment. Descrip-
tive economics is a pure science. Its questions can be answered only
by facts.
Economics is a tool that can help society solve three fundamen-
tal problems: (1) what commodities it should produce and in what
quantity; (2) how it should produce its goods; and (3) for whom it
should produce them.
Of course, there are many ways for a society to solve the three
basic problems. In a command economy the government dictates pro-
duction and distribution goals. Decisions are left to bureaucrats.
In a market economy the government takes a back seat to the
marketplace. In such an economy companies generally produce goods
and services that yield the highest profit, thus answering the question,
what goods and services and in what quantity. Profit dictates how
goods are produced. Generally, the least costly method of production
yields the greatest profit. In a market economy the question «for
whom?» is determined by money.

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In truth, most nations’ economies are mixed, that is they contain


elements of market and command economies. The mixed economies
of Great Britain, Canada and the United States, for example, all pro-
mote free enterprise, a system driven by supply and demand, but gov-
ernments of these countries also influence and even regulate their
economies to one degree or another.

Exercises
1. Read and translate the text.

2. Find English equivalents for the following word combinations:


экономическая деятельность, в свою очередь, излишки с/х про-
дукции, фундаментальная, переменные величины, полезные ис-
копаемые, выпускать (изделия, продукцию), дальнейшее произ-
водство, наука в чистом виде, предмет потребления, метод наи-
меньших затрат на производство.

3. Answer the questions to the text.


1) When did economic activity begin?
2) When did the science of economics begin?
3) What is economics?
4) What do inputs and outputs include?
5) What is descriptive economics?
6) What are three fundamental problems of a society?
7) Who dictates production, consumption and distribution goals
in a command (market) economy?
8) What can you say about mixed economy?

4. In pairs, complete the dialogue. Give necessary information


from the text.
Use the speech patterns: To my mind – По-моему …
It is true that … – Верно, что …
You are mistaken. – Вы ошибаетесь
You are right to a certain extent. –
Отчасти, Вы правы.
I’m afraid, no. – Боюсь, что нет.

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Dialogue
– I think the advent of towns had played the major part in the
development of economics.
–…
– Have you ever seen Adam Smith’s book «The Wealth of Na-
tions»?
–…
– To my mind, economics cannot be a science at all. Do you
agree with me?
–…
– I think all nations’ economies are mixed. Am I right?
–…
– A good knowledge of economic principles helps people to pre-
dict their future. Is it true?
–…
– Economics can be useful in everyday life, can’t it?
–…

5. Find in the text all nouns in the function of an attribute.

6. Retell the text.

Text B
An Overview of Economic Systems

The basic economic questions of what, how and for whom to


produce are answered in different ways in different societies.
Command economies are sometimes called planned economies.
They rely almost totally on government to make economic decisions
through centralized authorities and the government owns all the major
productive resources. Pure command economies are largely mythical
creatures, but the former Soviet Union and some other eastern block
countries are examples of countries with economic systems in which
government direction is dominant.
The government makes major decisions about where an individ-
ual works and lives, what consumer goods are produced and who gets
them, and how many resources are devoted. Command economies
permit only limited private ownership.
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However, a central authority has got little information available


about individual consumer preferences. Efficient organization of pro-
duction is also very difficult in a command economy. However, un-
employment, inflation are very rare phenomenon in a command econ-
omy.
Market economy permits private ownership. In market econo-
mies most productive resources are owned by private individuals (as
households or through the businesses they own). The basic economic
questions are answered by the actions of buyers and sellers as they ne-
gotiate exchanges in the marketplace.
In market economies, individuals make economic decisions in
response to market signals and on the basis of their own preferences.
In a pure market economy government has got little (if any) role to
play. However, in all but the very purest or imaginary market econo-
mies, government is called upon to protect individuals and their prop-
erty rights. Government provides services that markets cannot provide
well.

Exercises
1. Scan the text.

2. Complete the table.

Command economy Market economy


main features main features
advantages disadvantages advantages disadvantages

For ideas: to serve as arbitrator when legal disputes arise; to


dictate, economic laws, medical care; education, police, army, to redi-
stribute income; free of charge; to provide social security, economic
balance, social care; unemployment; inflation; free competition.

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BE READY

1. Match the words with their definitions.

a) the gifts of nature that are used to produce


goods and services. They include land, timber,
Human resources
fish, oil and mineral deposits, the fertility of soil,
climatic conditions and so on;
b) the health, strength, education and skills of
Natural resources
people;
c) the buildings, equipment, roads and other manu-
Capital
factured and constructed things.

2. Test yourself.
1) The situation in which resources are limited and can be used
in different ways, so that we must sacrifice one thing to another is
called (…) a) choice; b) economics; c) scarcity; d) opportunity cost.
2) People must make choices of what to consume because
of (…) a) factors of production; b) scarcity; c) elasticity
3) Which of the following are factors of production? (…)
a) human capital; b) scarcity; c) production possibilities
4) Which of the following are not factors of production? (…)
a) labour; b) physical capital; c) land; d) time; e) human capital
5) Human effort used to produce goods and services is
called (…) a) natural resources; b) labour; c) physical capital; d) hu-
man capital

3. Make a report. The topics:
1) It is difficult to make choices in our life.
2) I want to become an economist.

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LESSON 2

Compare the words:


Social, society, sociable, socialism

Social means 1) relating to society and to people‟s lives in general;


2) relating to the position that someone has in society relating to other
people; 3) relating to activities that involve being with other people.
Society means 1) people in general living together in organized com-
munities, as well as people who live in a particular country; 2) an or-
ganization or club for people who take part in a particular activity.
Sociable is relating to a person who is friendly and enjoys being with
other people.
Socialism means a political system that aims at creating a society in
which everyone has equal opportunities and in which the most impor-
tant industries are owned or controlled by the whole community.

Task 1. Insert the proper word: social, sociable, society, socialism.


1) They try to address (…) problems such as unemployment and
poor health. 2) (…) is a system where private property is not domi-
nant. 3) The scheme aims to encourage the reintegration of prisoners
into (…). 4) There has been a progressive deterioration of the (…)
conditions of small farmers. 5) I’m not feeling very (…) today.

Task 2. Fill in the grid.


1) A developing tend(s) to … a) be an industrial country.
country must … b) be an agrarian country.
2) A developed c) import raw materials.
country d) export raw materials.
3) Both develop- e) have high living standard.
ing and developed f) have real incomes lower than necessary.
countries g) have sagging economy.
h) have hard currency.
i) participate in ICT (Information Commu-
nication Technology)
j) have dynamic interest rate policy.
k) make choices.
l) deal with unemployment and inflation.

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Introduction text
Economy and Economic Systems

Economy is a social mechanism which answers the main eco-


nomic questions. The economy means a system for the management,
use and control of the money, goods and other resources of a country,
community or household. Every human society – whether it is an ad-
vanced industrial nation, a centrally planned economy, or an isolated
planned economy – must confront and resolve three fundamental and
interdependent problems; 1) what to produce; 2) how to produce; and
3) for whom to produce goods and services. Different societies take
different approaches in solving them.
Every country has its own history of economic development.
And in their history all countries try to reach four major economic
goals that are generally accepted. These goals are:
- full employment;
- price stability;
- equitable distribution of income;
- safety and security.
People and societies organize economic life to achieve these
goals through economic systems. An economic system can be de-
scribed as the collection of institutions, laws, activities, controlling
values and human motivations that collectively provide a framework
for economic decision-making.
Many economic systems have been undergoing fundamental
changes during the last decades of the 20th century. The elements of
tradition have been more evident in the rural areas of the developing
countries of Asia and Africa, yet even those rural areas have partici-
pated in elements of a market economy and/or a command economy.
The element of a command economy had been most evident in the
former Soviet Union until the country collapsed and was replaced by
15 independent countries. China, which describes itself as a command
economy, has many elements of traditional and market-price econo-
mies. The American economy is a mixed capitalistic economy, in
which both government and private decisions are important; it is an
economic system in which there is private ownership of capital, free-
dom of enterprise, competition, and reliance upon markets.

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Exercises

1. Scan the text.

2. Answer the question: «Have you got any new information?


What is it about? »

3. Find sentences about: a) economic questions; b) economic


goals; c) economic systems. Translate them.

4. Explain in your own words the meaning of the concepts:


equal distribution of income; price stability; full employment; crisis

5. Divide the text into logical parts. Formulate the main idea of
each part.

Grammar Revision

there is/there are



1. Use: is, are.
1) … there any new students in your group? 2) There … old
houses in our street. 3) There … not any milk in the fridge. 4) There
… three main questions in economic science. 5) What … there in the
office? 6) There … nothing to do. 7) There … a lot of things we want
to have. 8) There … a scarcity of resources. 9) There … many prob-
lems for the manufacturing company: packaging, transportation, in-
surance, and payment. 10) There … a shipping company that is en-
gaged in transportation goods.

2. Make the sentences interrogative and negative.


1) There is a milk processing complex in our street. 2) There is
some money to carry the loss (возместить потери). 3) There are a lot
of documents on your desk. 4) There are some risks in export trade.
5) There may be some questions customers might ask about the prod-
uct.

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It

1. Translate the sentences with «it».


1) I cannot find my ticket. I think I must have lost it. 2) It is stuf-
fy in the train, isn’t it? 3) Don’t do it again. 4) You should come to
Rome – it is a wonderful city. 5) Is it a boy or a girl? 6) It is nice to be
home again. 7) It annoys me to hear people blaming everything on the
government. 8) The new law made it easier to get a house in an own-
ership. 9) It seems that no one is willing to accept responsibility for
what happened. 10) It looks as we are going to lose our jobs. 11) It is
winter now. 12) It is not feasible to invest money into this project.
13) It rained in the night. 14) It is 4 o’clock. 15) It was nearly mid-
night when we got home. 16) It was farm surplus that gave birth to
trade. 17) It was a year ago today that I started working for this com-
pany. 18) It is not that government shouldn’t take part in the economy;
it is just that market should be free to operate. 19) It seems strange
that Adam Smith’s theory worked out some centuries ago is still ac-
tual today. 20) It is John M. Keynes who put forward a new concept of
government participation in the economy. 21) Money serves as the
store of value because it is the most liquid. 22) Great Britain is no
longer the imperialist power it used to be. It has lost its colonies which
used to supply it with cheap raw materials. 23) It is my uncle’s farm.
It is rather profitable.

Word-building
1. Give derivatives of:
economic, employment, competition, scarcity, supply, regulation, pro-
duction, allocation, expansion, growth, political.

2. Read and translate the words:


΄produce – to pro΄duce; ΄export – to ex΄port, ΄import – to im΄port;
manufacture – to manufacture; market – to market; trade – to trade;
increase – to increase; supply – to supply.

3. Translate the words paying attention to the suffixes.


Use – useless, care – careless, worth – worthless, job – jobless, home
– homeless.

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Useful Words and Word Combinations

aircraft industry – авиационная промышленность


approach – подход
article – 1) статья; 2) изделие
be employed in industry (agriculture) – быть занятым в пром-
сти (с/х)
bring about smth. – приводить к чему-либо
chemicals – изделия хим. промышленности
competition – конкуренция
consumer goods – потребительские товары
decrease – понижать(ся)
disperse – рассредоточивать
do away with smth. – покончить с чем-либо
economic growth – экономический рост
employ smb. – нанимать, задействовать
exhaust – истощать
expand trade in smth. – развивать торговлю
GNP (gross national product) – валовой национальный продукт
goal – цель
heavy industry – тяжелая промышленность
increase – повышать(ся)
industrial output – промышленный выпуск
light industry – легкая промышленность
machinery – оборудование
make emphasis on – делать упор
make progress – добиться прогресса
manufactured goods – промышленные товары
manufacturing – 1) производство; 2) обрабатывающая про-
мышленность
mining – добывающая промышленность
package – упаковывать
per head of population – на душу населения
precision instruments – точные инструменты
private ownership – частная собственность
process smth. – перерабатывать
rate – темп, норма, процентная ставка
reach – достигать
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revival – оживление, возобновление


share – доля
skilled labour – квалифицированный труд
standard of living – уровень жизни
technique – прием, техника
tend to do smth. – иметь тенденцию
textiles – изделия текстильной промышленности
undergo – испытывать, подвергаться
unemployment – безработица
welfare – благосостояние
wool – шерсть

Exercises

1. Translate the sentences.


1) People who have just faced unemployment try to reduce their
expenditures to some extent. 2) The crisis brought about inflation and
mass unemployment. 3) The choices people make as consumers, em-
ployees, business owners, and government officials create the econo-
my. 4) For every person employed in agriculture eleven people are
employed in mining, manufacturing and building. 5) The country
tends to produce and export manufactured goods. 6) Our complex is
engaged in processing raw materials. 7) The large-scale privatization
has brought about private ownership. 8) I prefer to buy high quality
consumer goods from leading designers. 9) In the past century the tra-
ditional industries such as mining and manufacturing were less pro-
gressive and this fact forced Britain to make emphasis on new indus-
tries such as car manufacture aircraft industry, and space engineering.
10) Government is always responsible for living standard in the coun-
try. 11) Economists usually study economic growth over long periods
of time.

2. Make up pairs of opposites in the list of words.


Industry, urban, light industry, income, rural, revival, agricul-
ture, decline, consumption, heavy industry, manufacturing, import,
loss, input, increase, decrease, surplus, output, to rise, lack of, arable
land, to fall, pasture, export.

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3. Think of the facts that lead to a favourable (or unfavourable)


economic situation in a country and fill in the grid.
a favourable economic situation in a a unfavourable economic situation in a
country means … country means …

For ideas: industrial output, debts, GNP, standard of living, for-


eign trade, revenue, un(employment), (un)stable political situation, in-
flation, economic growth.

Reading

Text A
British Economy

Britain lives by manufacture and trade. For every person em-


ployed in agriculture eleven people are employed in mining, manufac-
turing and building. The UK is one of the world’s largest exporters of
manufactured goods per head of population.
Apart from coal and iron ore Britain has got very few natural re-
sources and mostly depends on imports. Its agriculture provides only
half the food it needs. The other half and the most of the raw materials
for its industries such as oil and various metals have to be imported.
Britain has to import timber, cotton, fruit and farm products.
The country used to be richly forested, but most of the forests
were cut down to make room for cultivation. The greater part of land
is used for cattle-raising, sheep-raising and pig breeding. Among the
crops grown on British farms are wheat, barley and oats. The fields
are mainly found in the eastern part of the country. Farms tend to be
bigger where the soil is less fertile.
In the 19th century Britain secured a leading position in the
world as manufacturer, merchant and banker. After World War I the
world demand for the products of Britain’s traditional industries –
textiles, coal and machinery fell off, and Britain began expanding
trade in engineering products and electrical goods.
The crisis of 1929-1933 brought about mass unemployment,
which reached its peak in 1932. Britain’s share in the world industrial
output decreased. After the crisis there was some revival in produc-
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tion, employment and world trade as the result of extensive armament


program.
After World War II the situation radically changed. Now Britain
is no longer the leading imperialist power it used to be. It has lost its
colonies which used to supply it with cheap raw materials.
Britain produces high quality expensive goods which have al-
ways been characteristic of its industry. It mostly produces articles re-
quiring skilled labour, such as precision instruments, electronic
equipment, chemicals and high quality consumer goods, among them
are cotton goods, leather goods, and woolen goods.
The original basis of British industry was coal-mining, and the
early factories grew up not far from the main mining areas. Glasgow
and Newcastle became great centres of engineering and shipbuilding.
Lancashire produced cotton goods and Yorkshire woollens, with Shef-
field concentrating on iron and steel. Birmingham developed light en-
gineering. Then there appeared a tendency for industry and population
to move to the south, particularly to London area. Now there is a great
progress in the development of new industries, such as aircraft, auto-
mobile, electronic industries and others.

Exercises

1. Read and translate the text.

2. Answer the questions to the text.


a) What natural resources does Great Britain have?
b) What raw materials does Great Britain import?
c) What produce does the country export?
d) What did the crisis of 1929-1933 bring about?
e) What is a characteristic feature of British industry?
f) What are the main articles produced by British industry?
g) What are the main industrial centres of the country?
h) What can you say about British agriculture?

3. Complete the sentences.


1) Great Britain is rich in (oil, gold, copper, silver, iron ore,
zinc, coal).

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2) The UK has to import (coal, agricultural products, electrical


goods, oil, cotton, tobacco, fruit, wheat, various metals).
3) It produces (cheap articles, raw materials, high quality ex-
pensive goods, articles requiring skilled labour, precision instru-
ments).
4) The new industries of the country are: (the aircraft industry,
the electronic industry, the textile industry, the shipbuilding industry,
the automobile industry).
5) In the UK they mostly breed (cattle, horses, sheep, pigs, rab-
bits).

4. In pairs, prove the ideas.


Use: It is true because …
a) Great Britain is an industrial country.
b) Britain depends on imports to a great extent.
c) The original basis of British industry was coal-mining.
d) Britain produces high quality expensive goods which have
always been characteristic of its industry.

5. Write an annotation to the text. Use the following pattern:


1) The title of the text is …
2) This text is (economic, agricultural, scientific …)
3) This text is about … (deals with …, describes …, is devoted
to … touches upon the problems …)
4) I think it should be divided into 2, 3, 4, … logical parts.
5) The first one is about … (deals with …, describes …, is de-
voted to … touches upon the problems …)
6) The main idea of the text is …
7) I think …

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What is the European Union?


The European Union - often known as the EU - is an economic and
political partnership involving 28 European countries. It began after
World War Two to foster economic co-operation, with the idea that
countries which trade together are more likely to avoid going to war
with each other.
It has since grown to become a "single market" allowing goods and
people to move around, basically as if the member states were one
country.
It has its own currency, the euro, which is used by 19 of the member
countries, its own parliament and it now sets rules in a wide range of
areas - including on the environment, transport, consumer rights and
even things such as mobile phone charges.

What is Brexit?

Brexit = Britain + exit

Text B
The Events around the 23 June 2016 Referendum
.
The United Kingdom European Union membership referendum,
known within the United Kingdom as the EU referendum and
the Brexit referendum took place on Thursday 23 June 2016 in the UK
and Gibraltar to gauge (оценить, выяснить) support for the country’s
continued membership in the European Union. The referen-
dum resulted in an overall vote to leave the EU, as opposed to remain-
ing an EU member, by 51.9% to 48.1%, respectively. The vote was
split between (голоса разделились между …) the constituent coun-
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tries of the United Kingdom, with a majority in England and Wales


voting to leave, and a majority in Scotland and Northern Ireland, as
well as 96% of Gibraltar, voting to remain.
Membership of the EU and its predecessors was a topic of debate
in the United Kingdom before the country joined the European Eco-
nomic Community (EEC, or “Common Market”) in 1973.
Britain Stronger in Europe was the main group campaigning for the
UK to remain in the EU. Many other campaign groups, political par-
ties, businesses, trade unions, newspapers and prominent individu-
als were also involved. Those who favoured a British withdrawal from
the European Union – commonly referred to as Brexit.
Those who wanted to leave the EU argued that it would: allow
the UK to better control immigration, thus reducing pressure on public
services, housing and jobs; save billions of pounds in EU membership
fees; allow the UK to make its own trade deals; and free the UK from
EU regulations and bureaucracy that they saw as needless and costly.
Those who wanted to remain argued that leaving the EU would
risk the UK’s prosperity; diminish its influence over world affairs;
jeopardize national security by reducing access to common European
criminal databases; and result in trade barriers between the UK and
the EU. In particular, they argued that it would lead to job losses, de-
lays in investment into the UK and risks to business.
The referendum was precipitated by internal fighting within the
governing Conservative party, and the Prime Minister David Came-
ron stated he would resign as his side lost the referendum. The
Labour Party also faces a leadership challenge as a result of the EU
referendum. Scotland’s parliament may try to block the UK’s with-
drawal from the European Union.
Exercises
1. Read and translate the text.

2. Find in the text the synonyms for the following words and
phrases:
to be held, to find out, discussion, to take part in, employment, use-
less, expensive, to risk, to be preceded by.

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3. a) Study the meaning of the words and word combinations:


to favour, favourite, favourable, Please, do me a favour. To be in
favour of…, unfavourable, to lose favour.
b) Translate the phrases.
1) Большинство граждан Англии и Уэльса выступили за выход
из ЕС, а жители Шотландии и Северной Ирландии проголосо-
вали за членство в ЕС.
2) Пожалуйста, сделай мне одолжение.
3) Неблагоприятные погодные условия снизили урожай.
4) Бизнес круги в Великобритании проголосовали в пользу вы-
хода из ЕС.
5) Такие страны, как Польша, Латвия, Эстония и Литва имеют
более благоприятные условия от членства в ЕС чем промыш-
ленно развитые страны Западной Европы, так как получают
помощь от Евросоюза.
6) Это не входит в мои обязанности, просто я делаю тебе
одолжение.
7) Из-за проблемы с эмигрантами из Ближнего Востока член-
ство в ЕС утратило свою привлекательность.
8) Фильм получил благоприятный отзыв у критиков.

4. Comment the table. Use the following phrases:


This table presents the information about …
The information is arranged horizontally (or across) in rows, and
vertically (up and down) in columns.
The referendum was aimed at …
It took place … (date).
It was held in … (place).
… voters took part in the referendum.
According to the results …

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United Kingdom European Union


membership referendum

Should the United Kingdom remain a member of the


European Union or leave the European Union?

Location United Kingdom and Gibraltar

Date 23 June 2016

Results
Votes %
Leave 17,410,742 51.89%
Remain 16,141,241 48.11%
Valid votes 33,551,983 99.92%
Invalid or blank votes 25,359 0.08%
Total votes 33,577,342 100.00%
Registered voters/turnout 46,501,241 72.21%

5. a) Using the information from the text fill in the table.


b) In pairs, have a conversation discussing advantages and dis-
advantages of EU membership. Use: On the one hand … on the
other hand …
To leave or to remain?
Arguments in favour of re- Arguments in favour of leav-
maining in the EU ing the EU

Text C
The US Economy

The United States is rich in natural resources, the main ones be-
ing iron, coal and oil. The nation produces more than 100 million tons
of iron a year. Four fifth of the ore mined in the country comes from
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the Great Lakes region. Most of the coal mined is used by power sta-
tions to produce electricity. Coal is also used in the chemical indus-
tries for the manufacture of plastics and other synthetics. The produc-
tion, processing and marketing of such oil products as petrol (called
«gasoline» or «gas» in the USA) make up one of America’s largest
industries.
The basic metals and minerals mined in the United States are
zinc, copper, silver. Some of the main crops are wheat, maize, cotton,
tobacco and fruit. Cattle-breeding and pig-breeding are the most im-
portant branches of the US agriculture. To make farmers’ work more
productive scientific methods of farming are employed and modern
techniques of freezing, canning and packaging farm products are used.
The United States is a highly industrialized country with various
branches of heavy industry prevailing, namely, the mining, metallur-
gical, automobile and chemical industries as well as engineering and
computer technologies. Many branches of light industry are also de-
veloped; among them are the textile, food industries. Great emphasis
is made on the use of labor-saving machines. New industries are
created as new discoveries are made in physics, chemistry and other
sciences. Americans pay great attention to management training. The
leading US exports are industrial machinery, electronic equipment,
textiles, grain, iron, coal, oil products and chemicals.

Exercises

1. Read and translate the text.

 2. Find in the text and write down all the words connected
with:
1) industry; 2) agriculture; 3) science.

3. Complete the sentences.


a) The United States of America is rich in natural resources such
as … b) The USA is a highly industrialized country with various
branches of heavy industry, namely … c) The leading exports are …
d) The main crops grown in the country are … e) In the USA they
breed …
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 4. In pairs, discuss the state of the US economy and the reasons


for its success.
Key words for your dialogue:
The main branches, is rich in …, heavy (light) industry, in the
past few years, there is a tendency, a labor-saving machine, great ex-
penditures directed to the development of science, to make great em-
phasis on …, the leading exports.
Use the speech patterns: You see … (Видишь ли …); I’d like
to add smth. to your words. (Мне бы хотелось добавить к тому, что
Вы сейчас сказали); I’m afraid I don’t know. (Боюсь, я не знаю);
Looks like that. (Похоже на то); Is it true that …? (Верно ли …?)

 5. Retell the text.


Text C
Japan’s Economic System

Japan is a relatively small, but densely populated country. The


economic base of the country was largely destroyed at the end of the
World War II. Despite these handicaps, Japan has developed into one
of the world’s industrial superpowers. In fact, Japan’s standard of liv-
ing places that country among the four or five most prosperous nations
in the world.
The rapid economic growth has been achieved with an economic
system based on efficient economic planning. In fact, one of the truly
important characteristics of Japanese style planning has been its flex-
ibility.
The agricultural sector remains the only major sector protected
by high tariffs.
The relationship between firms and employees in Japan differs
from that in western economies. Japanese workers traditionally identi-
fy themselves closely with the firms that employ them. Firms subsid-
ize their employees’ purchases of medical care, housing and food.
Many Japanese workers spend their entire life within only one compa-
ny. Unemployment in Japan is very low (3 %).
In recent years the Japanese have demonstrated to the world that
one of the best ways to improve productivity is to improve product
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quality. The nation has proved that «doing it right the first time» im-
proves product quality, lowers production costs and maintains their
competitive position in the market.
In a famous study in 1980, a manager of Hewlett Packard’s Data
Systems Division tested 300,000 computer chips from six manufac-
turers, three from Japan and three from the USA. The failure rate per
1000 was zero for the Japanese chips and between 11 and 19 for the
U.S. chips. After 1000 hours of use, the failure rate was two for 1000
Japanese chips and 27 for the U.S. chips. Is there any doubt that atten-
tion to «quality» has helped the Japanese enter and become a major
force in the computer chip market? The Japanese have had similar
successes in other industries.

Exercises

1. Scan the text.

2. Choose the main features that characterize Japan’s economic


system. Use the text to support your opinion.
a) product quality and social care;
b) effective economic planning and its flexibility;
c) protection of agricultural sector by high tariffs and competi-
tive position in the world market

3. Find and translate the paragraph about


a) product quality
b) agricultural sector
c) relationship between firms and employees

4. Name as many brands of Japanese products as you can.

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WHAT IS QUALITY?

The quality of something is


how good or bad it is.
(a noun)
Quality means to be of a
high standard. (adj.)

David Garvin, a professor at the Harvard Business School, has


identified eight dimensions of quality.

Performance The quietness of a car‟s ride; the resistance of cos-


(показатели, metics to smudging; the clarity of the picture, sound
характеристики) and color of a TV set; low energy consumption of ap-
pliances; the sound from a stereo system
Features The colours, patterns and fabrics that are available in
(свойства, детали) furniture, towels, sheets, drapes, etc; the different
cycles and options available on washers, dryers, mi-
crowaves, refrigerators, etc; the adjustments availa-
ble on a stereo to improve the sound or on a camera
to allow for different types of shots, lenses and tripods
Reliability Dependability of a product or service to perform
(надежность) properly over time
Conformance How the product meets desired standards and toler-
(соответствие ances such as size, consistency of colour, etc. Does
требованиям, the product reach its customers on time?
стандартам)
Durability How long will a product last under various condi-
(прочность, tions?
долговечность )
Serviceability (исправ- The ease of repair or maintenance of a product
ность,
пригодность
к эксплуатации)
Aesthetics How product looks, tastes and smells. The design of a
(внешний вид) product is important.
Perceived The reputation of the product, its name and label.
Quality
(репутация фирмы)
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 When you think of quality items, what brand names come to


mind? Why? In pairs, act out a conversation. Begin with:
«I need new watches (a mobile telephone, a car, a TV set, a pair
of walking shoes, etc)»

BE READY

 1. Make a report. Find and study extra material. Choose any


country in the world. Analyze different industries developed
there. While working answer the questions:

1) How do natural and climatic conditions influence the econo-


my?
2) What sector is more developed in the country, agrarian or in-
dustrial one?
3) What goods and services are provided by the country?
4) Who are the main trade partners (exporters and importers) of
the country?
5) What countries are competing with it and in what produce?
6) What is standard of living in the country?
7) What is GNP, incomes per head of population, national cur-
rency?

 2. Describe any product you like from the point of view of


quality items.

3. Find extra material and fill in the table. Comment it.

№ country GNP Standard employment export import


of living
1 USA
2 Gr Br
3 Germany
4 France
5 Japan

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LESSON 3

Compare the words:


policy – police – political – politician – politics

Policy – 1) a set of plans or actions agreed on by a government, polit-


ical party, business or other group; 2) the government economic poli-
cy (verbs: to pursue, to operate, to implement).
Police – 1) the people who work for an organization that tries to catch
criminals and checks that people obey the law; 2) an organization that
tries to catch criminals and checks that people obey the law.
Politics [΄polətiks] – 1) the ideas and activities involved in getting
power in a country; 2) the profession of being a politician; 3) the
study how people gain and use political power.
Political – relating to politics, interested or involved in politics.
Politician – someone who has a job in politics.

Task 1. Use: «policy», «politics», «political», «politician», «police».


Foreign …; traffic …; … system; … economy; to talk about …; to en-
ter the … at age of 21; a … of rearmament.

Task 2. Translate the sentences.


1) What is the party’s policy on immigration? 2) We recognize
the importance of political stability. 3) He was a famous politician.
4) Let’s not talk about politics now. 5) Over 100 police were called in
to deal with the riot. 6) Someone called the police. 7) At the summit
the politicians discussed Soviet policy towards Afghanistan. 8) Every
organization supports their political leaders. 9) The new government is
expected to pursue a vigorous environmental policy.

Introduction Text
Russian Federation

The Russian Federation spans 48 oblasts, 17 million square ki-


lometers, and covers 11 time zones, stretching from the Baltic Sea to
the Pacific Ocean and the Arctic Circle to the steppes of Central Asia.
It has the population of about 150 000 000 people. The capital and the

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largest business center is Moscow. Other major cities include St. Pe-
tersburg, Novosibirsk, Nizhniy Novgorod, Vladivostok, and Yekate-
rinburg.
The greater part of Russia’s territory is a vast plain with low
mountains ranges and long rivers. The country is rich in iron ore,
manganese, copper, zink, lead, natural gas and oil.
Although Russia is somewhat more stable than some other states
of the former Soviet Union, Russia is a very young country, and many
of the new laws and regulations established within its political and
economic institutions are extremely fragile. Laws are constantly
changing, and there are often big discrepancies between how things
are done in Moscow and on regional levels.
Since the breakup of the Soviet Union in 1991, living standards
have fallen significantly within the country. The Soviet Union broke
up into 15 independent countries known as the Newly Independent
States. Twelve of them entered into a union called the Commonwealth
of Independent States (CIS).
The system of central supply and distribution ended. Also prob-
lems in downstream agricultural activities – transportation, storage
and processing – had a negative effect. Another problem was the wea-
kening of the power of the national currency. The result was severe in-
flationary pressure. However, state prices for most consumer goods
including foods, remained controlled at below market-clearing levels.
That produced excess demand. The result was all signs of consumer
shortages – longer lines for goods, hoarding, barter, and the growth of
black markets. Many factories and farms failed to receive the inputs
necessary to maintain previous production levels. Real GNP fell. The
whole economic system was to be radically reformed.

Exercises

1. Scan the text.

2. Which of the statements do not render information of the text?


a) The Russian Republic had to begin an important program of
economic reform.
b) In Russia most natural resources are concentrated in inaccess-
ible areas and costly to extract.
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c) It is difficult to regulate economy in such a vast country like


Russia.
d) Foodstuffs and other goods were available, but higher prices
were severely stretching people’s pocketbooks.
e) Russia’s stronger growth performance is due in large part to
two factors: the real devaluation and high energy prices.
f) A lot of farms were making a loss.

3. Develop the idea.


a) Russia is rich in natural resources, such as …
b) Natural and climatic conditions make it possible to develop
agricultural production, because …
c) Russia is a young country that is why its economy …
d) Severe inflation was due to the fact that …
e) Excess in demand was because …
f) A lot of enterprises faced bankruptcy because …

4. In groups, speak on the problems stressed in the text. Which


basic problems of the economy were (are) to be solved?
Use the speech patterns: Yes, certainly. – Да, конечно.
Exactly. – Именно.
Right you are. – Ты прав.
Most likely. – Весьма вероятно.
To a certain extent … – До некото-
рой степени
I’m of the same (another) opinion. –
Я того же (другого) мнения.
I don’t agree with you. – Я не со-
гласен с вами.
Not at all. – Отнюдь нет.
Far from it. – Далеко не так.

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Grammar Revision

degrees of comparison

1. Give the degrees of comparison of the following adjectives and


adverbs.
Short, tall, large, nice, long, big, profitable, feasible, high, pro-
ductive, fertile, active, fast, easy, good, bad, few, busy, near, far, old,
permanent, competitive, late, thin, comfortable, prosperous, resistant,
tolerant.

2. Put the adjectives and adverbs in the proper form.


1) The central regions of our country are (industrialized) than
northern parts.
2) Living conditions in some Latin American countries are (bad)
than in developing Asian countries.
3) It was (easy) to make a decision than economists thought.
4) This is (important) stage in the processing of the product.
5) Nowadays mining plants use (many) modern machines than
ten years ago.
6) Bananas require (hot) climate for growth than potatoes.
7) This is (costly) method of production.
8) Sometimes the work of a farmer is (difficult) than that of an
industrial worker.
9) Food, clothes, and shelter are (necessary) things for man’s life.
10) Angola is known as a (little) developed country.
11) Consumers were interested in (cheap) goods of (high) quality.
12) In vast countries central authorities have (little) information
about remote districts than in small countries.

3. Translate the sentences with: «a bit,» «a little,» «much,» «far,»


«a lot».
1) Let’s go by car. It is much cheaper. 2) Don’t go by train. It’s much
more expensive. 3) Ann works a lot harder than most of her friends. 4)
Could you speak a bit more slowly? 5) His business losses were far
more serious than at first thought.

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comparative constructions

4. Make up sentences and translate them.

The sooner … … the more independent it on the


The warmer the weather, … world market.
The more goods you sell, … … the higher the demand.
The lower the price, … … the better.
The more expensive the hotel, … … the better I feel.
The deeper I study Keynes’ theory, … … the more I realize the importance of
The more mineral resources a country government role.
has got, … … the better the service.
… the more profit you’ll make.
5. Rewrite the following sentences changing as … as, into not so as.
1) She is as young as you are. – You’re mistaken. She …
2) I am as tired as you are. – Nothing of the kind. You …
3) Great Britain is as prosperous as Japan. – I don’t think so.
Great Britain …
4) To produce and export farm products is as profitable as to ex-
port electronic equipment. – I’m of another opinion. To export …
5) My office is as light as yours. – On the contrary. My office …

Word-building
1. Define the part of speech of the following words. Pay special
attention to the degrees of comparisons.
Factor, goods, consumer, better, depending, direction, the larg-
est, greater, completely, supplier, more lucrative, easier, sold, affect-
ing, lower, previously, farmer, cultivation, able, to offer, quantity, the
highest, high, higher, she changes, a lot of changes, changeable.

2. Complete the following sentences using adjectives or adverbs.


Model: to buy something (cheap/cheaply) – to buy something
cheaply
1) This is a (comparative/comparatively, easy/easily) book to
read and translate. 2) (Total/totally) car production is not always
(easy/easily) to estimate (general/generally). 3) Even some (com-
mon/commonly) tools of (economic/economically) analysis are not
(general/generally) known. 4) Some macroeconomic analysis offer
(extreme/extremely) detailed treatment (individual/individually) deci-
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sions. 5) If we compare the markets for cars and bicycles (care-


ful/carefully), we may be able to offer a (good/well) explanation for
their prices.

Useful Words and Word Combinations

average annual production – среднегодовое производство


barren – пустой, голый
barter – бартер
break up – разбиваться, распадаться
budget deficit – дефицит бюджета
cause – 1) причина; 2) вызывать
central supply – централизованные поставки
circular flow – циркулирующий поток (товаров, вложений
и т. д.)
competitive price – конкурентоспособная цена
cost of living – прожиточный минимум
down stream – упадок, движение вниз
draw into competition – вовлекать в конкуренцию
effort – усилие, попытка
emerge – 1) возникновение; 2) возникнуть
entrepreneurship – предпринимательство
equitable – справедливый
face bankruptcy – быть на пороге банкротства
fail – провалить, не удаваться
fiscal policy – бюджетно-налоговая политика
free – 1) свободный; 2) освобождать
free enterprise – свободное предпринимательство
give a boost – дать толчок
hoarding – припрятывание (товаров)
impose sanctions – вводить санкции
incentive – стимул
input – капиталовложение
liberalization – либерализация
line – линия, поток, очередь
long run – долгосрочный
meet the demands of smb. – удовлетворять потребности
mode of exchange – способ обмена
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money income – денежный доход


national currency – национальная валюта
performance – функционирование, показатель
private property – частная собственность
privatization – приватизация
purchasing power – покупательная способность
revert – обратиться (во что-либо)
severe – суровый
shelf – полка, прилавок
sluggish – застойный
small business – малый бизнес
tend – иметь тенденцию
threaten – угрожать
unemployment benefits – пособие по безработице
voluntary exchange – добровольный обмен

Exercises

1. Match the verbs from (A) with the nouns from (B).

to cause A the demands of people B


to draw into inflation
to face hoarding and barter
to free business
to cut free enterprise
to approve prices
to meet expenditures

2. Translate the sentences.


1) A market economy is called a free enterprise system or capi-
talism. 2) Voluntary exchange could be defined as the primary means
of organizing and coordinating production. 3) The situation on the
farm threatens to face bankruptcy. 4) Oil prices tend to increase.
5) The country has to cope with sluggish economic growth. 6) Nina
receives unemployment benefits, but she is promised to give a job.
7) The pillars of free enterprise are private property, the price system,
market competition, and entrepreneurship. 8) The rights to own and

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exchange property and to make a profit give individuals and business-


es incentives to use their resources wisely. 9) Entrepreneurship is the
willingness and ability to see opportunities and to develop them into
new products for the market. 10) Economists use a circular flow mod-
el to highlight (освещать, выдвигать на первый план) basic ele-
ments of a market economy. 11) The Soviet Union broke up in 1991
and the system of central supply ended. 12) A lot of enterprises failed
to receive funds necessary to maintain necessary levels of production.
13) Ruble is the national currency in Russia. 14) Purchasing power is
the ability of people to buy goods and services. 15) In a barter system
a product would have as many different prices as there are other prod-
ucts that could be changed for it.

3. Choose the letter of the item that best completes the statement
or answers the question.
1) Most businesses earn their profit by
a. competing successfully against consumers.
b. charging higher prices.
c. selling what consumers want to buy at prices they are willing
to pay.
d. ignoring consumers’ preferences.
2) Lots of businesses work together as a team to provide you
with products like bread and peanut butter. For the most part, busi-
nesses do this because they are guided by
a. voluntary exchange.
b. the government.
c. the banking system.
d. the stock market.
3) When resources are privately owned,
a. people have incentives to use them carefully and productively.
b. people typically ignore the opportunity and benefits of using
the resources.
c. both of the above.
d. none of the above.
4) In a market economy prices provide information. This means
that prices
a. usually tell businesses about the values consumers put on var-
ious products.
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b. often lets households know which products businesses want to


buy.
c. tell the government which products it should allow businesses
to produce.
d. clearly identify products that are not scarce.
5) Competition can take many forms, but there would be no
competition at all without
a. money.
b. markets.
c. scarcity.
d. businesses.

4. Complete the sentences using the words from the box. Trans-
late them.
1) In 1992 the … situation in Russia … difficult.
2) Large macroeconomic imbalances … in the initial stages of
… to a … economy.
3) Nevertheless, … progress was achieved in implementing
structural adjustment … in some areas.
4) Real … and industrial … are estimated to have dropped by
19 % in 1992.
5) Inflation … began to decline after the jump in … .

prices, arose, economic, significant, market, the transition to, GNP, rates,
policies, continued to be, output

5. In pairs, develop the discussion and complete the dialogue.


– You know, the ups and downs in the economy remind me of
one of those good news/bad news stories.
– What do you mean?
– Well, think of what happens during periods of expansion. The
good news is that there are plenty of jobs around, so anyone looking
for work can probably find it.
– So, what’s the bad news?
– Well, if you happen to be an employer, qualified workers be-
come hard to find.
– Right.

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– But the good news is that since workers are scarce, wages tend
to increase.
– I can live with that.
– Yeah, but the bad news is that as wages increase, so does the
price of everything else.
– Inflation time?
– That’s what they call it, but the good news is …

Reading

Text A
Russian Economy during the 90-s

The Russian Federation is the largest country in the world cover-


ing 12,7 % of the world land territory.
Its share in the Total World Output is 1,1–2,4 % (1998). The
Russian Federation evolved from the USSR as the country broke up in
1991. So, the whole economic mechanism came to imbalance.
In 1992 the economic situation in the country continued to be
very difficult. The nation suffered from economic decline and social
hazards. Real GNP and industrial production are estimated to have
dropped by 19 % in 1992. Oil extraction fell by 15 %, while the output
of natural gas remained unchanged; agricultural output fell by 8 %.
Real incomes dropped leading to the drop in the total demand. The
breakdown of the monetary system had led to the weakening of the
power of the national currency as effective money. Nobody wanted to
sell goods for rubles. A great number of factories and farms failed to
receive inputs needed to maintain production levels. In January 1992
the Russian government began an important program of economic
reform. Its long-run goal was to create the institutional conditions for
a market oriented economy. The key policies to do that were privatiza-
tion of enterprises and private ownership of farmland.
Two policy moves were necessary to restore macroeconomic
balance:
 The government was to prevent the further growth of infla-
tionary pressure. That required reducing both the budget deficit and
the growth of the money supply. The Russian program promised

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tough budget, money and credit policies. These policies, though re-
duced the funds available to producing enterprises, and thereby threat-
ened firms with bankruptcy, and workers with loss of their jobs. The
government faced a difficult choice between reducing inflation and
protecting enterprises and employment.
 In a second policy move the state had to mop up the existing
«stock» of surplus rubbles. Prices were completely freed for many
products and consumer goods (including clothes, most foods such as
meat and sugar). The price liberalization changed the nature of the
food problem for Russian consumers.
The tough monetary policy made it possible to curb the inflation,
to stabilize the ruble, and to restructure the country’s external debt.
Enterprises seemed to be adapting to the new conditions. A boost was
given to such industries as ferrous and non-ferrous metal industries,
and the fuel and energy complex resulting in export increase.
The large-scale privatization has brought about private owner-
ship which has caused the appearance of private property, the setting
up of privately-owned businesses and the development of the non-
state sector. Of course, the emerging business needed support in the
form of programs to support entrepreneurship. A number of federal
programs began to support small businesses and enterprises providing
tax benefits, information support and training of personnel to them.
So, the massive shift Russia is making now from a command to
a market economy is really unprecedented [Λn'presi,dentid]. Liberali-
zation of economy, restructuring of production sectors, an extensive
privatization program have brought about real changes and to the crea-
tion of types of business unit accepted throughout the world.
Economic security of large nations, like Russia, can be main-
tained because of its smaller dependence on world markets. In spite of
all handicaps, Russia is developing, it is provided with such economic
fundamentals as natural resources, good agricultural land, forests,
fresh water, etc. It has got the greatest scientific and industrial poten-
tial. Self-sufficiency can be ensured by well-thought government poli-
cies.

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Exercises

1. Read and translate the text.

2. Find English equivalents for the following words and word


combinations:
распался, страдала от экономического упадка и социальных
потрясений, добыча нефти, выпуск сельскохозяйственной про-
дукции, ослабление покупательной способности национальной
валюты, ключевые политические решения, зажим инфляции, же-
сткая бюджетная политика, покончить, программы по поддержке
предпринимательства, льготное налогообложение, подготовка и
обучение кадров, не смотря на все потрясения, самодостаточ-
ность.

3. Find in the text the words which mean the following:


a) To control or limit something that is harmful is to …
b) An amount of money that you owe is …
c) An action or event that helps something to increase, improve
or become more successful is …
d) Never having happened or existed before is …
e) Paper money used in a country is …
f) The turn over of some public sector production activities into
the private sector is …

4. Correct the plan to the text.


I. Real Incomes and Monetary System
II. Privatization
III. GNP
IV. Economic Reform and Two Policy Moves
V. New Russia

5. Answer the questions.


1) What happened in the country in 1991?
2) What problems did Russia have to deal with in 1992?
3) When did the government begin a program of economic reform?
4) What was its long-run goal?
5) What were the key policies of the reform?
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6) What were the policy moves?


7) What was the measure to control inflation?
8) What was the result of privatization?
9) How can economic security of the country be maintained?

6. Comment on the table.

problem result way of solution


drop in total demand
1 economic imbalance economic reform
and social hazards
weakening of the
tough budget and
2 power of national inflation
monetary policy
currency
3 consumer shortages surplus rubbles price liberalization
total industrial de- privatization of en-
4 bankruptcy
cline terprises

 7. Prepare a retelling of the text.

Dialogue
Foreigner: Could you give me a general idea of budget organi-
zation and budget process in the Russian Federation?
Russian: Certainly. First of all, by the budget organization we
mean the structure of our budget system and its major components.
Foreigner: I suppose there is a close link between the budget or-
ganization and your state system, isn’t there?
Russian: Yes, there is. Being a federal state we have the federal
budget, regional budgets, or budgets of the subjects of the Federation,
and local budgets.
Foreigner: I see. I know that in the past you used to have a sin-
gle budget including the federal and local budgets, didn’t you?
Russian: Yes, that’s true. But now the situation has changed.
Our regional and local authorities have been given considerable budg-
et autonomy now.

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Foreigner: Do you mean to say that some of expenditure respon-


sibilities have been handed down from the federal government to the
regional ones?
Russian: Exactly.
Foreigner: I’m clear now. And how is the budget process ar-
ranged?
Russian: This process includes all activities of government bo-
dies on formulation, consideration, approval and execution of the
budget.
Foreigner: What governing bodies are involved in this process?
Russian: Well. The executive branch is responsible for the prep-
aration and execution of the budget; budget consideration and approv-
al is the responsibility of the legislative branch and the Accounts
Chamber controls the execution.

Exercises

1. In pairs, act out and translate the dialogue.

2. Comment on the scheme.

Executive body is responsible for … Legislative body is responsible for …

3. Explain the meaning of the phrases:


1) To formulate the budget means …
2) Autonomy means …
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3) Consideration of the budget means …


4) To approve the budget is …

Text B
Проблема России

Главная беда экономики России – нехватка денег у населе-


ния на самое необходимое, что разрушает балансе между ценами
на продукцию разных отраслей и на оплату труда. Мировая прак-
тика давно установила примерный баланс цен на различную про-
дукцию, который определяется затратами. К примеру, в США це-
на одного килограмма хлеба равна двум долларам или стоимости
четырех литров бензина. У нас – наоборот. Килограмм хлеба де-
шевле литра бензина.
Получается, что наш экономический порядок ущемляет тех,
кто производит хлеб (крестьян, работников зернохранилищ, пе-
карен и т.д.). То же самое происходит и по отношению к «молоч-
никам» и «мясникам». В выигрыше оказываются работники неф-
тедобывающих и нефтеперерабатывающих предприятий (а точ-
нее, их владельцы), в большей степени ориентированные на экс-
порт своей продукции. Изначально преимущество дается тем, кто
работает не на свое население, а на удовлетворение чужих по-
требностей за счет наших природных ресурсов. В результате у
нас не работает главный двигатель экономики – покупательский
спрос.

Exercises

1. Translate the text using a dictionary.

2. Do you agree with the author? Can you add anything?

3. What should be the price for 1 lt of petrol if 1 kg of bread costs


10 rubbles? What should be the price for 1 kg of bread if 1 lt of
petrol costs 15 rubbles?

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Text С
Russian Economy and Political Situation in the World

Russia is a vast country. Its economic security can be maintained


due to its smaller dependence on world markets. With largest natural
gas and second largest oil resources in the world Economy of Rus-
sia has already attracted billions of dollars of foreign invest-
ments. This country is the 8th largest economy in the world today.
And this ranking is continuously progressing. Russia is provided with
such economic fundamentals as natural resources (oil, gas, metals,
coal, wood, fresh water), good agricultural land, labour resources.
1
At present the economic situation is influenced by political
events. The world is changing. In 2014 the political situation in the
Ukraine radically changed. Ukrainian crisis began in 21 November
2013: President Yanukovitch backed out of signing the Association
Agreement with the EU, accepted $15bn loan from Russia. In No-
vember 2013 protests broke out in Kiev, in 20 February 2014: large-
scale clashes between police and protesters took place. On the 21st of
February 2014 Peace agreement was signed between opposition lead-
ers and Yanukovitch, and also signed by Foreign Affairs ministers of
Germany and Poland. On the 22nd of February 2014 radical opposition
leaders refused to recognize the peace agreement and made Yanuko-
vitch leave Kiev. On the 23d of February 2014 Turchinov proclaimed
enacted President of Ukraine. On February 2014: Law granting Rus-
sian the regional status language was abolished. It resulted in the Cri-
mean parliament decision to declare independence in Crimea. On the
16th of March 2014: people’s referendum on independence took place.
The results of the referendum was the following: President Putin
signed a decree on Crimea re-joining Russia.
Western European countries and the USA imposed sanctions on
Russian Federation.
The United States and European Union imposed trade sanctions on
Russia in 2014. That targeted the pocketbooks of the coun-
try's oligarchs. As a result, they've sent $75 billion out of the country,
or 4% of the country's entire economic output as measured by GDP.

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2
• First Round:
– Immediately after March 16, 2014 following on Crimea’s joining
Russia
– Target: individuals banned from visiting EU, Canada, the US;
doing business is also prohibited with them
• Second Round:
– April 28, 2014
– Further visa bans, 17 Russian companies
• Third Round:
– July 17, 2014: Malaysian MH17 crash
– Government-owned Russian banks, trade restrictions on defense
industry, additional visa bans
– Inability to borrow for more than 30 days

3
Depreciation increased by 23% (RUB/USD), and by14%
(RUB/EUR)
Most depreciation occurred after the third (sector) round of sanc-
tions
Capital flight occurred due to increased geopolitical uncertainty
Exports did not grow proportionately to ruble’s depreciation due to
global economic slowdown. Ability to borrow abroad restricted by
sanctions, limiting supply of foreign currency
Inflation picked up significantly shortly after the first round of
sanctions. Inflation rate kept roughly at or below the similar infla-
tion level of 2008, the year of the global crisis
• January – September 2014: 6.27%
• January – September 2008: 10.57%; January-September 2013:
4.72%

4
As a response to the sanctions Russia imposed food imports ban
from the EU, US, Canada and Australia in August 2014. It was as-
sumed that having lost the Russian market, countries which agricul-
tural products were banned would not be able to find other markets
and would suffer losses. Poland, Finland, Lithuania are most affected

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by the Russian food ban. The main task was to develop domestic in-
dustries and agriculture in order to fulfill import substitution.

5
Russia supplies 30% of Europe’s oil and 24% of its natural gas.
The budget crucially depends on the oil-gas revenues. Rising energy
prices increase oil-gas revenue component of the Russian budget
without any growth in the physical volumes. In 2014 the oil price of
USD $50 per barrel was perceived as an inevitable disaster, but in
2015 these values would be a dream come true. The oil price hit a new
low on 6 January 2016, reaching the 11-year bottom of US $33 per
barrel. In response, Russian ruble immediately hit the record level of
75 ruble per USD.
On the other hand, EU depends on about 1/3 of its energy con-
sumption on imports from Russia:
 34% crude oil
 26% solid fuels (mainly coal)
 32% natural gas.
Germany, Italy, and Eastern European countries are the most vul-
nerable importers.
6
According to the Ministry of Economical Development, Russia’s
GDP came down by 3.8% in 2015, and unemployment increased by
nearly 11%. Many people including pensioners live on fixed income,
which doesn’t give much liberty for adjustments. The largest part of
regular citizens’ income is spent on food, the sector where prices sky-
rocketed in 2015. Sanctions against Russia didn’t incite local econom-
ic growth, as some economists predicted. The growth in prices was
accompanied by decrease in quality of available goods and products.
The attempt to replace certain food groups by produce of the local
suppliers so far has been failing, with great numbers of importers
creating schemes to bring European cargo through Belarus, trying to
bypass the regulations. Officially 12% of Russians or 18 million
people live below poverty level, the worst result in 11 years.
7
“In spite of the difficult economic situation, Russians remain
calm, because they believe in the stability of the state and "floodabili-
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ty" of the Russian economy, German financial analyst Matthias Siller


said in an interview with “Finanz und Wirtschaft”. Since Russia ma-
naged to achieve a high degree of self-sufficiency, the threat of infla-
tion and bank failures is very low.
Russia no longer needs foreign investment because it already has
sufficient fixed capital. The country will rather move further and
manufacture its own products, the expert stated, adding that Russia
still has great potential "in the field of food production".

Exercises
1. Scan the text.

2. Choose the titles to the paragraphs 1-7.


 Social problems
 Ruble depreciation
 Viability of the economy
 Oil and gas in the Russian economy
 Crisis in the Ukraine and its impact on the Russian economy
 Sanctions: history
 Russia’s food imports ban

3. Find the information about:


a) EU dependence on Russian energy supplies
b) Independence of Crimea
c) Price changes
d) Russia’s food imports ban

4. Put the events in chronological sequence.


 Crimean people declared independence.
 Yanukovitch left Kiev.
 The new government in the Ukraine abolished the law grant-
ing Russian the regional status language.
 Russia imposed food imports ban from some countries.
 Western European countries and the USA imposed sanctions
on the Russian Federation.
 Protests broke out in Kiev.
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 Inflation picked up significantly in the country.


 President Putin signed a decree on Crimea re-joining Russia.

5. Fill in the table and develop the idea. Use the model below.

reason/condition event/fact result


Russia is provided With largest natural Russia is the 8th
with such economic gas and second larg- largest economy in
fundamentals as natu- est oil resources in the world today.
ral resources (oil, gas, the world Economy
metals, coal, wood, of Russia has already
fresh water), good attracted billions of
agricultural land, la- dollars of foreign in-
bour resources. vestments.

President Yanuko- … …
vitch backed out of
signing the Associa-
tion Agreement with
the EU
In the Ukraine the … …
law granting Russian
the regional status
language was ab-
olished.
President Putin signs … …
a decree on Crimea
re-joining Russia

The United States and … …


European Union im-
posed trade sanctions
on Russia

Model: Russia is provided with such economic fundamentals as natu-


ral resources (oil, gas, metals, coal, wood, fresh water), good agricul-
tural land, labour resources. So, with the largest natural gas and
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second largest oil resources in the world the economy of Russia has
already attracted billions of dollars of foreign investments. The result
is Russia is the 8th largest economy in the world today.

BE READY

1. Explain the meaning of the terms:


Price liberalization, inflation, a budget, bankruptcy, output, in-
put.

 2. Write a composition. Choose the topic:


1) How I see Russian economy in future.
2) Positive and negative features of economic changes in Russia.

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LESSON 4

Compare the words:
to tax – taxation – taxability – taxable – tax-free – taxpayer
To tax means to get money for public services and other government
institutions by putting a tax on something (to put a tax on smth.)
Taxation – the system that a government uses for collecting money
from people in the form of taxes.
Taxability – ability to pay taxes.
Taxable – something you have to pay tax on.
Tax-free – if something is tax-free, you do not pay tax on it.
Taxpayer – someone who pays taxes on smth.

Task 1. Match the word combinations with their translation.

liable to a tax подоходный налог


tax on income подлежащий налогообложению
to collect taxes обложить налогом
to impose a tax собирать налоги
rate of tax льготное налогообложение
concession taxation размер налога
tax-free goods товары, не облагаемые пошли-
ной

Task 2. Translate the sentences.


1) Government plans to tax private schools. 2) Childcare for
working mothers should not be taxed. 3) Reducing taxation further
could have disastrous economic consequences. 4) You should settle
down the question about your taxability in due time. 5) I’d like to buy
some tax free perfume in the airport. 6) Taxpayers must know how
their money is used.

Introduction Text
Government and Economy
People debate the proper role and size of government in a market
economy. But government has a potential role to play because market
often falls short in the following tasks:

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– Establishing and enforcing private property rights and the


law.
– Dealing with external costs and benefits.
– Protecting consumers.
– Stabilizing the economy.
– Promoting economic security.
– Providing public goods and services.
Government may step in to overcome these problems. It enforces
contracts and property rights. It establishes procedures for dealing
with external costs, such as pollution and external benefits, such as
public health. It can try to promote market competition, and it can
provide public goods, such as national defense. Finally, government
can act to promote the economic security of some citizens, and it can
stabilize the economy.
Market decisions are dictated by interaction of business and con-
sumers. These different motivations often result in conflict between
decision makers in the private and public sector.
The federal government spends money on direct benefits to indi-
viduals, national defense, interest and grants. It receives money from
personal income taxes, social insurance taxes, corporate income taxes,
and miscellaneous taxes like excise (sales) taxes.
Taxes can be enacted according to the benefits-received or the
ability-to-pay principles.
Regional and local governments also receive and spend money.
The relative importance of the various federal taxes has changed over
the years.

Exercises

1. Scan the text.

2. Choose the correct variant.


1) This text is about
a) rate of taxes; b) role of the government; c) relationship be-
tween market and government
2) Government’s sources of revenue are:
a) social grants; b) federal budget; c) taxes
3) People
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a) think that government shouldn’t interfere with market; b)


think that government role is very important; c) debate the proper role
and size of government in a market economy.

3. Answer the questions.


1. What are the tasks to be fulfilled by the government?
2. Which external costs and benefits can be promote by the gov-
ernment?
3. Where does government take money?
4. How are market decisions dictated?

4. Study the table. What information does it provide? Comment


on it.
The most important government revenues
taxes
direct taxes indirect taxes
on income on capital on commodities on services

Grammar revision

Simple Tenses

1. Use the Present Simple tense.


1) The plant (to produce) many different machines for farmers.
2) Consumers (to pay) for some extra services, such as medicine, edu-
cation, transport. 3) Government decisions (to affect) the economy.
4) Regional and local governments also (to receive) and spend money.
5) In modern economies taxes (to be) the most important source of
government revenues. 6) Today American economic system (not to
be) the same as it was in the 19th century.

2. Use the Past Simple tense.


1) Smith (to accept) the idea of government participation in the
economy. 2) Earlier government leaders (to refuse) to do anything to
control business. 3) In the 19th century the government (not to take)
big role in business affairs. 4) Workers (to get) together to organize
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unions to protect themselves. 5) Gradually, the government (to begin)


to take action. 6) The prices for the services (not to be) high at that
time. 7) The economist prediction (to be) correct.

3. Use the Future Simple tense.
1) I don’t think this company (to produce) good computers. 2) If
you speak English you (to get) a better job. 3) Next year taxes (to be)
higher. 4) I’m sure local government (not to interfere) in this situation.
5) Certainly, Congress (to approve) this project. 6) We hope you (to
earn) enough money for living.

4. Use the appropriate tense form.


1) When we (to finish) work, we (to go) home. 2) If it (to get)
warmer, we (to go) to the river. 3) After they (to buy) new equipment,
they (to teach) their workers to work with it. 4) If the country (to in-
vest) more money in education, productivity and living standards (to
be) higher. 5) If the government policy (to be) proper, employment (to
be) higher. 6) If Russia (to improve) conditions of scientists’ work,
there (to be) great progress in science. 7) Before the manager (to
make) a decision, he (to study) all the data. 8) If the economists (not to
use) the new method of analysis, they (not to make) a correct model.

5. Make the sentences interrogative (general and special ques-
tions) and negative.
1) In 1890, Congress passed a Sherman Anti-Trust act to break
up monopolies. 2) In future government role in a market economy will
decrease significantly. 3) The table compares government economic
activities in the USA to those of the Russian Federation. 4) There is
too much government regulation. 5) The biggest changes came in the
1930s. 6) Government provides social services. 7) Lower incentives to
work will result in social crisis.

to be going to

6. Translate the sentences.


1) The student is going to study both English and French. 2) I am
going to write new words in my notebook and learn them. 3) My
mother is going to work as an economist. 4) My friend is not going to
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take computer course this winter. 5) Government is going to control


farm sector more thoroughly.

Word-building
1. Give derivatives of:
national, importance, functional, independent, governor, executive,
maintenance, deposition, progressive, stability, tendency.

2. Use different suffixes and prefixes to derive new words.


e. g. to produce – produce – production – productive – unproduc-
tive – productivity – producer – reproduction – overproduction
an implement –
policy –
a tax –
to abolish –
to appoint –
responsible –
profit –
able –

Useful Words and Word Combinations

ability-to-pay principle – принцип учета платежеспособности


affect – действовать, влиять, затрагивать
allocate – размещать
benefits-received principle – принцип взимания налогов с уче-
том размера индивидуальных доходов
borrow – занимать (деньги, и т д.)
citizen – гражданин
complementary – дополнительный
correctional facilities – исправительные учреждения
create – создавать
deficiency – нехватка
define – определять
dispute – оспаривать, противиться, спорить
equitable – справедливый, беспристрастный
establish – основывать, устанавливать, доказать
excise tax – акцизный сбор
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experience – опыт, испытывать


experience deficits – испытывать дефицит
external costs – внешние издержки
failure – неудача, провал, ошибка
fall (fell, fallen) short – испытывать трудности, не удаваться
grant – грант
national defense – национальная оборона
overcome (overcame, overcome) – преодолеть
policymaker – политик
property right – право собственности
public choice theory – теория общественного выбора
public goods – товары общественного назначения
rate of tax – размер налога
relative to – относительно, относящийся
result in – приводить к чему-либо
revenue – годовой доход (правительства)
security – безопасность
social insurance tax – налог в фонд социального страхования
solvency – платежеспособность
tend to – иметь тенденцию

Exercises

1. Match the Russian word combinations with the English ones.


tax on income покрыть дефицит
to collect taxes стимулирование спроса
to file a tax осуществить
to come into effect подоходный налог
to effect payment заполнить налоговую декларацию
to bring into effect государственное обеспечение
defense establishment собирать налоги
to establish banking relations вступить в силу
to provide with funds осуществить платеж
provision for old установить отношения с банком
public provision фонд обеспечения престарелых
demand promotion военно-промышленный комплекс
to cover deficit предоставлять средства
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2. Translate the words without a dictionary. Read them correctly.


Principle, deficit, regulation, stabilization, personal, individual,
interaction, federal, constant, social security, private, motivations,
public sector, regional, local, business, market, budget, act, invest-
ment.

3. Arrange the letters in brackets into definitions of given state-


ments.
a) A financial plan that summarizes expected income and ex-
penses for the coming year (tegbdu).
b) The cumulative sum of all borrowing that is necessary to be
paid off (bted).
c) The principle source of income to state and local governments
(xta).
d) Something controlled or owned by individual people, rather
than by government (vateirp yporpetr).

4. Translate the sentences.


1) To carry out its allocation, distribution, and stabilization roles
government must budget its revenues among competing uses. 2) Prop-
erty rights are well defined when markets function successfully. 3)
Rate of tax is established according to a great number of factors. 4)
Without help of government market often falls short in a lot of tasks,
such as dealing with external costs and benefits, protecting property
rights, providing public goods and services and many others. 5) The
majority of government revenues come from taxes. 6) The distribution
of income should be equitable. 7) National defense questions received
more attention last year.

Dialogue

– You see, most Americans would agree that government has
an important role to play in the economy.
– But nevertheless, there is considerable disagreement as to
how active this role should be.
– Will you stick to the point?

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– Of course. In 1984 the nation’s seventh largest bank Conti-


nental Illinois of Chicago faced bankruptcy. Under the circumstances,
the Reagan Administration decided to save Continental Illinois. It did
this by investing $4.5 billion in the bank and promising to invest
more.
– It was a wise decision, I believe. Government leaders feared
that if bankruptcy were to occur, public confidence in the banking sys-
tem might also fail. Moreover, if I remember rightly, in this particular
case, in exchange the government was to receive 80 percent of Conti-
nental Illinois’ stock.
– In other words, government purchased a private organization
such as Continental Illinois. It was, no doubt, contrary to the spirit of
American free enterprise.
– I can’t agree with you. Continental troubles threatened the
economy as a whole. For that reason, the government was obliged to
help Continental.
– You’re right to a certain extent. But this government action
was unfair to the firm’s competitors who had to make it on their own
(вынуждены были сами справляться с трудностями).
– It’s difficult to argue.

Exercises

1. In pairs, act out and translate the dialogue.

2. Find in the dialogue English equivalents for the following


phrases:
Видишь ли…; Нельзя ли конкретнее?; Конечно; стоял на
пороге банкротства; при сложившихся обстоятельствах; Это было
мудрое решение; Насколько я помню…; Другими словами, …;
Это, без сомнения, противоречило духу…; Не могу с тобой со-
гласиться; С этим трудно поспорить.

3. Identify and explain the reasons why there is much debate


about government’s role in the economy.

4. With which point of view would you agree? Explain your posi-
tion.
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Reading

Text A
Economic Role of Government

Since markets function properly when property rights are well


defined, one very important function of the government is to set these
basic «rules of the game».
Besides its legal function of defining and protecting property
rights what else should the government do? Another important func-
tion of the government is to correct the failures of private markets that
result from monopoly or the existence of public goods and externali-
ties government is also asked to address macroeconomics problems
such as inflation, unemployment, and low economic growth.
But it is not certain that the government’s intervention in mar-
kets to allocate resources, to redistribute income, and to stabilize ag-
gregate of economic variables (like employment) will always lead to
better results. Public choice theory assumes that government efforts
sometimes do not improve market outcomes.
While government plays a somewhat secondary role in market
oriented economies, that role is still extremely important.
The first government’s function is to decide who can own re-
sources and define what rights go with ownership. A complementary
function is to create a legal structure of courts and police, to enforce
rights when disputes arise. The history of earlier civilizations, or even
in American West in the 1800s, illustrates the problems that arise with
systems of rights in which people own only that which they can pro-
tect. Using brute strength to enforce property rights is costly, however,
because it forces everyone to be a part-time policeman, judge and
jury. Thus, a major part of government role at all levels, from local to
national, is to define property rights (legislated, civil, and criminal
laws); to create instruments to recognize and establish ownership (la-
bour and business contracts, deeds to land, automobile titles); and to
set up legal systems (police, courts, and correctional facilities) in order
to clarify, refine and enforce property rights.
In its allocation function, government tries to assist markets
when they fail, or to replace them, in order to assure that resources are
allocated efficiently. Government allocation activities include:
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 limiting private monopoly and regulating natural monopolies;


 regulating, taxing and subsidizing firms and individuals to
internalize externalities;
 providing public goods such as national defense, navigation
aids and preventing the spread of communicable diseases.
The next function of government is distribution. Many people
believe that the market determined distribution of income is unfair.
They call upon government to modify that distribution. Changing the
market-determined distribution to make it more equitable is govern-
ment’s distribution function.
A major role of government at a federal level is its stabilization
function. The government has strong interest in achieving macroeco-
nomics goals of stable prices (no inflation), stable growth in aggregate
output and full employment of the labour force and other productive
resources. To achieve this government controls the nation’s supply of
money, sets up taxes and the like.
Policymakers, therefore, must keep in mind all the effects of the
actions government might take.

Exercises

1. Read and translate the text.

2. Find in the text English equivalents for the following words and
word combinations:
действуют, четко определены; правила игры; исправлять ошибки
и просчеты; существование; требуется; инфляция; медленный
экономический рост; вмешательство; доход; предполагает; по-
пытки второстепенный; экономика, ориентированная на рынок;
присваивать (владеть).

3. Make up pairs of synonyms in the list of words.


To enable, property, expensive, to enforce, unfair, ownership,
costly, aim, effect, inequitable, result, goal, to modify, to rule, authori-
ties, to change, government, to control, to set up, outcome, to estab-
lish.

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4. Answer the questions to the text.


1) What role does the government play in a market oriented
economy?
2) Will government’s intervention always lead to the improve-
ments in economy?
3) What is the first function of government in a market-oriented
economy?
4) What is the allocation function? What does it include?
5) How does government fulfill its distribution function?
6) What is a major role of government at a federal level?
7) What macroeconomic goals does government try to achieve?

 5. In pairs, using the dialogue and text A discuss with your


partner the following statements:
 Government participation in the economy should be kept to a
minimum. The best that government can do to help the economy is to
keep its hands off business.
 There are too many problems to be left to the marketplace,
such as public health, education, environmental pollution and the like.
It, is government that should keep control over them.
 Government is always responsible for economic situation in
a country, growing inflation, increasing crime rate and the like.

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Use the scheme:


Use the scheme:

I think, the role There is no doubt about it.


of government Nevertheless, in a market-
… oriented economy
government’s efforts …

In my opinion there are


You’re right. What is the
too many …
… should keep control main …?
over them.

Policymakers, therefore, …
Of course, … property
rights. The other
functions …

6. Prepare a short retelling of the text.

6. Prepare a short retelling of the text.

Text B

All government’s functions are quite interrelated. It is difficult


for government to pursue one of the objectives without affecting
another.
Changing distribution of income will alter consumption patterns.
Policymakers must recognize the fact that attempting to meet one ob-
jective, may require other objectives to be sacrificed. In order to carry
out its allocation, distribution roles government must allocate or budg-
et its revenues among competing uses.
Where do governments get funds to make all necessary expendi-
tures? They obtain revenue primarily from taxes, which account for
some two-thirds of both federal and state revenues and about half of
local government revenue (in the USA).

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Because the federal government has tended to spend far more


than it receives in tax revenue for the past 20 years, borrowing is now
very important at the federal level.
At the state level, federal grants are the most important revenue
sources.
The property tax is also used by local governments, rather than
the income tax or sales tax, because people cannot easily avoid a tax
on immobile property.
The federal government handles national defense and most trans-
fers. State governments provide education, roads and the like. Local
governments provide water, police, fire and health services.
So, governments collect taxes, purchase and produce goods and
services, borrow money, and take part in other economic activities.
Really governments are involved in promoting all the economic goals.

Exercises

1. Scan the text and choose the title for it:


a) Government’s Functions
b) Revenues and Expenditures of Government
c) The Borderline between Market and Government

2. Finish up the sentences.


1) The main sources of federal government revenues are …
2) The main sources of state government revenues are …
3) The federal (state, local) governments are responsible for …

3. Study the table and answer the questions.

FEDERAL EXPENDITURES (USA)

1970 1988
Some items of spending category
Percent Percent
(статья расходов)
of total budget of total budget
Defense, space, and international affairs 45 % 31 %
Social security, well-fare, health 36 % 50 %
Education, commerce, transport 10 % 6%
Energy and national resources 2% 2%

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1) What is the federal government largest expenditure?


2) What is the tendency of its development?
3) Defense spending fell, didn’t it?
4) What is the tendency of education expenditure development?
5) What is the tendency of social security expenditure develop-
ment?
6) What is the least expenditure?
7) What is the tendency of energy and natural resources expendi-
ture development?

Text C
Theorist Who Brought Economics into the Twentieth Century

John Maynard Keynes stands with Adam Smith and Karl Marx
as one of the world’s most influential economists. He served the Brit-
ish government as financial adviser and was a key participant in the
negotiations following both World Wars I and II.
Although Adam Smith had written «The Wealth of Nations»
about the time of the American Revolution, by 1930-s little had
changed in the thinking of economists. Most would agree with Smith,
that the best thing government could do to help the economy is to
keep its hands off. They reasoned that as long as the economy was
free to operate without interference, the forces of supply and demand
would come into balance. Then, with total demand and supply in bal-
ance, everyone looking for a job could find it at the prevailing wage,
and every firm could sell its products at the market price.
But as the 1930-s was the period of the government depression,
the fact was that unemployment and business failure had reached
record proportions. At that time Keynes demonstrated that unem-
ployment could persist indefinitely, unless someone stepped in to in-
crease total demand. The «someone» Keynes had in mind was gov-
ernment. So, the ideas advanced by Keynes have become a part of
conventional wisdom. In addition, government as well as markets can
fail.

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Exercises

1. Scan the text.

2. Will you give any example how government steps in to help the
national economy in your country?

3. Finish up the sentences. Use the words: «against», «in favour


of»

According to Adam Smith …


According to John Maynard Keynes …

Text D
Economic Security

Historically, national security includes the strength of nation’s in-


frastructure, the foundation upon which the continuous growth of our
society depends. This includes our strong societal and moral codes,
the rule of law, stable government, social, political and economic in-
stitutions and leadership.
Nation’s strength also requires investments in science, engineering,
research and development.
National security must include a healthy market-based economy
with globally competitive products and services that produce jobs.
Economic security or financial security is the condition of having
stable income or other resources to support a standard of living now
and in the foreseeable future. It includes:

 probable continued solvency


 predictability of the future cash flow of a person or oth-
er economic entity, such as a country
 employment security or job security
Economic security, in the context of politics and international rela-
tions, is the ability of a nation-state to follow its choice of policies to
develop the national economy in the manner desired. Historically,
conquest of nations have made conquerors rich through plunder,
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access to new resources and enlarged trade through controlling of the


conquered nations' economy. In today's complex system of interna-
tional trade, characterized by multi-national agreements, mutual inter-
dependence and availability of natural resources etc. Economic securi-
ty today forms, arguably, as important a part of national security as
military policy.

Exercises

1. Read and translate the text.

2. Do you agree with the phrase:


“Providing national security leads to the national indepen-
dence in global scale”?

3. Develop the idea:


 Investments in science help …
 Stable government can …
 Producing competitive products and services people
make the economy …
 Stable incomes provide …

4. Find key sentences of the text.

5. Make a summary of the text.

BE READY

Write a composition. Topics:


1. I am working in the government. My first steps to help the
economy.
2. My idea of an ideal policymaker.

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LESSON 5

Compare the words:


supply – to supply
demand – to demand

Supply is an amount or quantity of something that is available to use.


To supply means to provide someone or something with something
that they need or want.

Task 1. Read and translate the following a) word combinations


and b) sentences, pay attention to the part of speech the word
«supply» belongs to.
a) food supply; to supply raw materials, energy supply, to supply
diverse produce for the population, money supply;
b) 1. A limited oil supply has made gas prices raise. 2. The fall-
ing leaves provide a good supply of nutrients to the soil. 3. Industry
supplies agriculture with all necessary machinery. 4. Agriculture sup-
plies people with food and industry with raw materials.

Demand is the amount of a product or service that people want, or the


fact that they need it.
To demand means to be in situation when something is necessary.
To be in demand – to be wanted by a lot of people.

Task 2. Read and translate the following:


a) word combinations and
b) sentences, pay attention to the part of speech the word
«demand» belongs to.
a) increase of demand, market demand, demand shift, to demand
skilled labour, to demand high quality goods;
b) 1. 18,400 new houses will be needed by 2011 to cope with the
demand. 2. Demand for organic food is increasing. 3. Our software is
in demand all over the world. 4. Modern agriculture demands high
skilled specialists. 5. The work of bookkeeper demands attention.

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Introduction Text
Supply and Demand in Real Markets

What if sellers do not know the demand or the supply schedules?


In fact, do they even know what demand and supply are? It may be
useful to show how demand and supply determine price and allocate
output in the absence of perfect knowledge about the schedules.
Prices have two social functions: they are a rationing device
among consumers of the product, and they serve as an inducement for
producers to produce more or less of a product. High prices restrict
consumption to those who have a willingness and ability to pay a price
at least equal to the going price. For the producer, since supply is up-
ward sloping, a higher price causes more to be produced; a lower price
causes less to be produced.
The Law of Demand says that quantity demanded is negatively
related to price. At higher prices, buyers demand smaller amounts per
time period, at lower prices, they demand larger amounts. The market
demand for a good or service is the sum of the demands of all con-
sumers in a particular market.
The Law of Supply says that quantity supplied is positively re-
lated to price. The law of supply says that quantities supplied of any
economic good increase with higher prices and decrease with lower
prices.

Exercises
1. Scan the text.

2. Answer the following questions:


1. What does the law of supply say?
2. What does the law of demand say?
3. Is it important for sellers to know what the demand and the
supply schedules are? Why?
4. Is it important for producers to know what the demand and
the supply schedules are? Why?
5. What are the two social functions of prices?

3. Answer the question: «Is the following definition of supply and


demand correct?»
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«Supply and demand is the relationship between how much of a par-


ticular product is available and how much of it people want, and es-
pecially the way this affects the level of prices.»

4. Give examples of your own to illustrate how supply and de-


mand interact to determine prices?

Grammar Revision

Present Continuous
1. Use the correct form of the verb ( Present Simple/Present Con-
tinuous ).
1. Mercedes Benz manufactures / is manufacturing high-quality
cars at present.
2. Every year Benetton is launching / launches a new range of
clothes.
3. Benetton is expanding / expands the number of shops they
have in the UK.
4. The Financial Times Group is owing / owns Les Echos and
Recoletos.
5. This month the «Financial Times» is looking / looks for gra-
duates to join its staff.

2. Make up sentences after the model. Explain the meaning of the


tense –forms in them.
Model:
Alan – an engineer – Claas. Test – new designs. Today – make
presentation – senior management – safety of new designs.

Alan is an engineer for Claas. He tests new designs for the company’s tractor’s.
Today he is not testing tractors. He is making a presentation to senior man-
agement about the safety of the new designs.

Maria and Isabella – marketing officers – Sony. Design advertis-


ing campaigns. Today – meet – executives from Japan – discuss –
company strategy.

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Word-building
1. Give nouns for the following verbs:
a) to consume – consumer
to supply –
to buy –
to sell –
to purchase –
b) to restrict – restriction
to direct –
to consume –

2. What part of speech do the words belong to? Prove your an-
swers. Read and translate the words:
greater, greatest, larger, largest, easier, easiest, lower, lowest, higher,
highest.

3. Derive adverbs from the following adjectives, translate them:


Model: effective – effectively эффективный – эффективно
Authoritative –…, high – …, previous – …, thorough – …, care-
ful – …

4. Choose the proper word.


1. The economy (effective / effectively) become demonetarized
for some time. 2. The analysis was quite accessible and (authoritative
/ authoritatively). 3. The industrial output was rather (high / highly). 4.
They (previous / previously) accepted our suggestions. 5. The delega-
tion (thorough / thoroughly) discussed the topic. 6. Why were they
very (careful / carefully)? 7. Did they consider the matter very (care-
ful / carefully).

Useful Words and Word Combinations


adjust – регулировать
aggregate – общий, совокупный
commodity – товар
consumer – потребитель
credit – кредит
currency – денежное обращение
decrease – уменьшать(ся)
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demand – потребность, спрос


determinant(s) – решающий, определяющий фактор, опреде-
литель
direction – направление
for sale – на продажу
gain – зарабатывать, приобретать
goods – товары
gross national product (GNP) – валовой национальный продукт
income – доход
increase – повышать(ся)
induce – убеждать, заставлять
interest – проценты
lucrative – прибыльный, выгодный, доходный
offer – предлагать
price – цена
purchase – покупать
relative – относительный
restrict – ограничивать, снижать
schedule – список, перечень
shift – изменение, сдвиг
supply – снабжение, предложение
tax – (государственный) налог

Exercises
1. Match the word with its Russian equivalent:

1) commodity a) зависеть от
2) determinant b) налог
3) tax c) товар
4) lucrative d) решающий фактор
5) relative e) направление
6) to restrict f) прибыльный
7) to depend on g) относительный
8) direction h) ограничивать

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2. Match the words with their meanings:

constant to give, to bring


conventional to rise
schedule list
to buy change
to increase to decrease, to cut back
to supply unchanging, at the same level
shift to get something for money
to restrict equal balance
equilibrium ordinary, usual
tendency to increase to the greatest amount
magnitude possibility, promise
to maximize amount, importance

3. Make up word – combinations matching the word of column A


with the word of column B. Translate them.

A B
1) to offer a) constant
2) to gain b) at lower prices
3) to determine c) demand
4) to buy d) in opposite direction
5) to affect e) for sale
6) to remain f) an understanding
7) to shift g) price

4. Complete the sentences with the correct word from the box.

а) to buy b) determine c) gross national product


d) prices e) shift f) consumers

1. Demand and supply determine (1)____ in their interaction. 2.


___(2) are willing to purchase more goods at lower prices. 3. Price
always changes in the same direction as the (3)___in demand. 4. The
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(4)____ is the market value of the nation’s output. 5. Economists ana-


lyze the factors that (5)__the price. 6. Consumers are usually willing
(6)___ more at lower prices.

Reading

Text A
Supply and Demand

A fundamental task of economics is to analyze the factors that


determine the prices and quantities of commodities sold. The determi-
nants of price and quantity are usually separated into two categories:
those affecting demand for a good and those affecting supply.
Consumers are usually willing to buy more at lower prices.
When price falls and consumers purchase more of a good, other things
remaining the same, we say that quantity demanded increases. De-
mand is a list or schedule of prices and quantity demanded at each
price. For example, if the income of consumers change, causing them
to demand more of a good at each price than they did previously, we
say the demand for that good increases. If the change in income caus-
es consumers to demand less of a good at each price than they did be-
fore, then the demand decreases.
To gain an understanding of supply, suppose a large number of
farmers sell cabbage in the same market. One particular farmer is will-
ing to grow and sell 1000 cabbages per season if the price per head of
cabbage is 25 cents. If the price of cabbage were 35 cents, the farmer
would grow more – say 2000 heads. The higher price induces the far-
mer to take land out of the cultivation of other crops and grow the
more lucrative cabbage. Supply is a list of prices and quantities that a
supplier or group of suppliers (firms) is willing and able to offer for
sale at each price in the list per period of time.
When price rises and firms are induced to offer a greater quantity
of goods for sale, we say that quantity supplied changes, and in this
case increases.
When demand increases and supply remains constant, both price
and quantity increase. When supply increases and demand remains
constant price falls and quantity rises. When both demand and supply
increase quantity increases, but price can either increase or decrease,
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depending on the relative magnitude of the shifts. When supply and


demand shift in opposite directions, the change in quantity is uncertain
but price always changes in the same direction as the shift in demand.

Exercises
1. Read and translate the text.

2. Find English equivalents for the following words and word


combinations:
задача, определять цены, влиять, спрос, предложение, товар, по-
требитель, желать, по сниженным ценам, повышаться, оставаться
прежними, доходы, меняться, раньше, понижаться, достигнуть,
предположим, ряд фермеров, продавать, в сезон, кочан капусты,
прибыльный, за период времени, постоянный, в противополож-
ном направлении.

3. Make up pairs of synonyms:


commodity, affect, a good, to buy, to rise, to fall, to purchase,
the same, to increase, to decrease, schedule, to change, list, to cause,
to shift, to induce, to gain, constant, lucrative, importance, profitable,
magnitude, result, to reach.

4. Find the sentences about:


a) a fundamental task of economics;
b) the determinants of price.

5. Complete the sentences:


1. We say that quantity demanded increases when …
2. Demand is …
3. If the incomes of consumers change, causing them to de-
mand more of a good at each price than they did previously …
4. If the change in income causes consumers to demand less of
a good at each price than they did before … .

6. Find key sentences for brief retelling of the text.

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Text B
Dialogue
The Discoverers of the Laws of Demand and Supply

Ann and Andrew are the second-year students of the faculty of


economics. All questions connected with economics are interesting for
them.
- Hey, Andrew! What are you reading about?
- I am preparing for the seminar.
- What is the topic?
- The Law of Supply and Demand.
- How very interesting. Could you tell me who discovered the
law of demand?
- With pleasure. The law of demand was discovered by A.A.
Cournot (1801 - 1877), a professor of mathematics at the University of
Lyons, France, and it was he who drew the first demand curve in the
1830’s.
- Something else I‟d like to know is what was the first practical
application of demand theory?
- Oh, let me think a bit. If I am not mistaken the first practical
application of demand theory by Jules Dupuit (1804 - 1866) a French
engineer and economist, was the calculation of the benefits from
building a bridge. The bridge was built due to the correct toll (пошли-
на) to charge for its use.
- You are right. I am interested in the name of a person who
worked out the connection between the laws of demand and supply
and the cost of production.
- Let me see. This man was D. Lardner (1793 - 1859), an Irish
professor of philosophy at the University of London.
- And do you know what does the current theory of the law of
demand rest on?
- I can‟t say much about that, but what I know for sure is that
current theory of the law of demand rests on the foundations laid by
Marshall (1890), Edgeworth (1881), and Pareto (1896).
- I see you have studied the theory of the question. And what
about the practice? Is it correct to say that Supply and Demand are the
two sides of each market transaction?
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- It goes without saying it is.

Exercises
 1. In pairs, act out and translate the dialogue.
2. Pay attention to phrases in italics. Which of them help us:
a) to get information ;
b) to delay answering a question;
c) to express agreement with the speaker.

3. Work with tables. Do you understand Supply and Demand


Tables?
Economists often use tables to illustrate and explain their work.
A table is an orderly arrangement of facts and figures.
Information is arranged horizontally (or across) in rows, and ver-
tically (up and down) in columns.
The following is an example of the table:

Demand Schedule for Corn, March 29, 200__

Additional buyer
At a price per Total demanded
Buyer demands
a bushel (thousands)
(thousands)
1 US $ 3.50 80 80
2 3.25 20 100
3 3.00 20 120
4 2.75 20 140
5 2.50 20 160
6 2.25 20 180
7 2.00 20 200
This kind of table is called a «demand schedule». It tells us how
many bushels of corn buyers would take, at a variety of prices, at a
particular point in time.
At a price of US $ 3.50 per bushel, for example, one buyer
would be willing to buy 80,000 bushels. If the price were US $ 3.25
per bushel, however, a second buyer would step into the market and
buy 20,000 bushels. This, plus the 80,000 bushels demanded by the
first buyer, brings the total to 100,000 bushels at that price. (Naturally,

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the first buyer would also be willing to pay US $ 3.25 instead of US $


3.50 for the bushel.)
If the price were US $ 3.00 a bushel, another buyer would step in
and take another 20,000 bushels. At that price, the total number of bu-
shels demanded would be 120,000.

4. Answer the questions. How many bushels of corn would be


demanded at US $ 2.50 per bushel? How many at US $ 2.00 per
bushel?
The supply side of the same corn market is summarized in the follow-
ing table.
Supply Schedule for Corn, March 29, 200__

Seller Price per a bushel Additional seller Total supplied


(US $) offers (thousands) (thousands)
1 3.50 20 200
2 3.25 20 180
3 3.00 20 160
4 2.75 20 140
5 2.50 20 120
6 2.25 40 100
7 2.00 60 60

As you can see, the table summarizes the relationship between


price and the supply of corn.
How many bushels of corn would be offered for sale
a) at US $ 2.00 per bushel?
b) At US $ 3.50 per bushel?
c) At US $ 2.75 per bushel?
d) What is an equilibrium price for corn?

BE READY

Try to name products or services that have gone off the market or
become difficult to obtain in your country because of declining
demand. Do you know the reason?

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LESSON 6

Compare the words:


Bank – banking – banker
Bank is a financial institution that people or businesses can keep their
money in or borrow money from.
Banking is the work done by banks and other financial institutions.
Banker is someone who has an important position in a bank or other
financial organization.

Task 1. Use the proper word (bank, banking, banker):


career in …, commercial …, … system, central …, experienced …,
New York investment …, … account.
Money – monetary
Money – what you earn, save, invest and use to pay for things.
Monetary – relating to a country‟s money and to the system a country
uses for controlling its money supply.

Task 2. Use the proper word (money, monetary):


to borrow …, to lend …, the process of producing …, … policy, …
system, … supply, … demand.

Introduction Text
Origin of Money
Before money was invented, people had to buy and sell by ex-
changing things. A farmer might exchange his surplus wheat for a
horse or cow that one of his neighbors did not need; but first he had to
find another farmer who wanted wheat and who had a horse or a cow
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to spare. You would also have to agree upon the rate of exchange –
that is, how much wheat should be exchanged for a cow. The process
was extremely difficult and time-consuming. That is why it was de-
cided to invent a unit of account to specify price.
In the past, many different things were used for money: bales of
silk, blocks of salt, shells, bits of looking glass, beads strung together
like necklaces, squares of leather and other things. Eventually, people
realized that precious metal was the most suitable substance for mak-
ing money. It was valuable, it didn’t wear out and it could be made in-
to convenient sizes. Gold, silver and copper were the three metals
most commonly used.
According to Herodotus, the Lydians were the first people to in-
troduce the use of gold and silver coins. Modern scholars think that
these first stamped coins were minted around 650-600 BC. The first
banknotes appeared in China in the 7th century.
Coins and paper money have value because the government has
agreed that each note and coin shall be worth its face value, which is
the amount stamped on it.
Money is an asset that serves as a means of payment, a store of
value, and a unit of account.
Plastic money is the name given to all types of plastic money,
which are used in place of cash. There are different names for these
cards but in general, they have two main purposes: to enable people to
obtain cash; or to make payments without using cash or cheques.

Exercises
1. Scan the text.

2. Read the definitions (1-7). In the text, find the words which
have the same meaning.
1) A piece of metal, usually flat and round, that is used as money.
2) A printed piece of paper that you write an amount of money on,
sign and use instead of money to pay for things
3) A rare and valuable metal such as gold or silver.
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4) A piece of paper money.


5) A system of exchanging goods and services for other goods and
services rather than using money.
6) The amount of money you have pay for something.

3. These things functioned as money at different times. Put


them in chronological order.
Coins, barter, precious metal, plastic cards, banknotes.
4. Find the sentence about money functions.

Grammar Revision

1. Read and translate the following sentences determine the


tense-form of the predicates in them.
1. Have you ever been to Detroit? 2. She has already done her
market research paper. 3. He has not come yet. 4. I have been working
for this company all my life. 5. He has not seen her since their last
meeting. 6. I hope he will have arrived in Moscow before the signing
the contract. 7. By that time we hope the manager will have corrected
his failures. 8. When he arrived at the station, the train had left.
9. Yesterday by 5 o’clock they had finished the negotiations and left
for Moscow. 10 They had applied new methods of production before
the research was completed.

2. Fill in the blanks with the correct adverbs and adverbial


phrases.

ever, already, lately


never, just, yet, recently
Remember
В предложениях наречия never, already ставятся между вспомогательным
глаголом (have/ has) и причастием II, а наречие yet (в вопросительных и
отрицательных предложениях) и наречия recently/lately – в конце предло-
жений.

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1. The role of the service sector has increased … .


2. Most manufacturing industries have … used intensive tech-
nologies for processing resources.
3. Economists have … developed three main approaches to
economics.
4. Economists have not given a full definition of economics … .
5. - Have you got enough actual data to make a model …?
- Yes, I have … finished it.
6. Economists have … included service that are provided by
doctors and teachers in the primary sector.
7. Economics has … used models successfully to analyze some
difficult economic problems.
8. She has … been to England but she knows English quite
well.
9. They have … conducted the survey of the neighborhood’s
residents.
10. Have you … heard the name of this economist?
11. Microeconomics has … studied the problem of the whole
country’s economy

3. Finish the following sentences, use prepositions since / for.


1. India has been an independent country since / for…
1945; the end of World War II; the last five decades; more than 50
years.
2. Our company has sold 50 types of new goods since / for …
1993; last year; twenty-four weeks; the beginning of the year 2001;
the new machines were bought; two years.

4. Choose the proper tense.


a) Present Perfect or Past Indefinite
1. Last month the inflation level (to increase). 2. The sales (to
increase) lately. 3. The sales (to fall) last month. 4. They (to increase)
the production since the beginning of the year. 5. At the conference
today we (to discuss) monetary policy in the euro area. 6. We (to dis-
cuss) this question an hour ago. 7. I (not to see) him for ages. 8. You
ever (to be) in China? – Yes, we (to visit) it last month. 9. I (not/ to
finish) my report about exports of foodstuffs to developed countries
yet, but I (to finish) already the necessary data in the Internet.
b) Past Perfect or Past Indefinite
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1. He (to study) English before he (to enter) the University. 2.


They (not to increase) sales because the production (to drop) by 1%. 3.
We (to manage) to maintain the demand as we (to study) the market
thoroughly. 4. The revenue (to grow) as the exports (to increase) sig-
nificantly. 5. I (to want) to read this journal. As I never (to read) an
American journal or magazine. 6. I (to plan) to visit this town last
June. I never (to be) there before.

5. Read and translate the following sentences. Explain the differ-


ence in the use of Future Perfect and Future Indefinite.
1. I hope that you will finish the article. 2. I hope that you will
have finished the article by the end of the week. 3. We shall write the
Summary tomorrow. 4. We shall have written the Summary by the
time the attorney comes. 5. You will learn the report by heart. 6. You
will have learned the report by heart by the end of the week. 7. I shall
have bought that magazine before you come. 8. By the end of the
week I shall have spent my cash. 9. I think he will spend his cash on
books.

Word-building

1. Read and translate the following words paying attention to the


part of speech they belong to.
Finance – to finance – financial – financier; to save – saving(s) – sa-
vior – safe – safety; to collect – collection – collections – collectively;
circulate – circulation – circular; part – partner – partnership, relation
– relationship – relatives.

2. Form new verbs from the given ones using the prefix «over-».
to estimate – оценивать to overestimate – переоценивать
to come –
to crowd –
to tax –
to pay –

3. Derive nouns from the following verbs and translate them.


Model: to consume – consumer
to lend, to borrow, to deposit, to hold, to supply, to invest

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4. Read and translate the derivatives of the word to invest and


word combinations with them:
to invest – investor – investment
to invest funds, capital investment, to invest money at interest,
financial investment, investment fund, private investment, to
make an investment, foreign investors.

Useful Words and Word Combinations

account – счет
asset – имущество, статья актива;
assets – средства, фонды, авуары
ATM (automatic teller machine) – банкомат
bank – банк
bank transfer – банковский перевод
banking – банковское дело
bill – вексель
bond – облигация
borrow – брать взаймы
bottom line – итог, прибыль, конечная сумма в б. отчете
cash – наличные деньги (to pay cash, cash withdrawal)
checking deposit – вклад на текущем счету
coin – монета
commodity money – товар-посредник в роли денег
credit (loan) agreement – кредитное соглашение
credit card – кредитная карта
currency – деньги, национальная валюта
denomination – достоинство(о деньгах)
deposit – депонировать, положить
financial intermediary – финансовый посредник
hard-wearing – не изнашивающийся
interest rate – процентная ставка
lend (lent) – ссужать, давать взаймы
letter of credit – кредитное письмо, аккредитив
line of credit – кредитный лимит
loan account – ссудный счет
loan – заѐм, ссуда, кредит
market for loanable funds – рынок фондов
means of payment – средство платежа
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monetary unit – денежная единица


operating costs – затраты, текущие расходы
payment – платеж
preferred customer – привилегированный клиент
prime-rate – наименьший процент со ссуды
savings – сбережения
solid – (зд.) прочный
store of value – средство накопления
unit of account – расчетная единица
withdraw – снять деньги (со счета)

Exercises
1. Match the word with its Russian equivalent:

1) to borrow a) положить на хранение


2) to deposit b) менять процентную ставку
3) to change interest rate c) сделать карьеру в банковском деле
4) to make a loan to smb d) давать заем кому-либо
5) to make career in banking e) брать взаймы

2. Choose the necessary word.

а) interest rate b) lenders c) borrowers


d) loans e) savings f) banking
1. I hope to make my career in … . 2. Banks collect the … and
lend them to … . 3. Bonds are government’s … . 4. Credit market
links … and borrowers. 5. Borrowers pay different … .

3. Make up word combinations and translate them:

a long-term
a short-term
loan
to be eligible for a
to make a
checking
loan account
savings

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4. Make up word combinations and translate them:

line of
letter of
bank
commercial consumer
external
personal
farm
credit
industrial
investment
open
public
starting
sterling
capital market

5. Match the words with their definitions.

a) a piece of money made of paper;


b) a flat round piece of metal with special designs on
Coin is
it, used as money;
Banknote is
c) a document given to someone who invests money in
Bond is
government or company, promising to pay back the
money with interest

Reading

Text A
What Banks Do

Commercial banks and their relatives are the financial intermedia-


ries that make up the financial markets at the bottom of the circular flow.
Financial intermediaries collect the savings of households and lend them
to borrowers in the forms of consumer loans business loans (including
bonds, which are long-term loans), and governments loans (bonds Trea-
sury bills and Treasury notes). Banks and other financial intermediaries

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pay interest on the funds deposited with them and charge higher rates of
interest on the funds they lend. The difference between the two rates
covers their operating costs and, a margin is profit.
Banks and other financial intermediaries make up the market for
loanable funds, or the credit market, which links lenders and borrow-
ers and ensures a smooth flow of saving into investment.
Quantity in this market is the amount of funds lent and bor-
rowed, and price is the interest rate. Different borrowers pay different
interest rates. Similarly, the funds to be loaned are gathered in
different forms and sizes. There are small accounts and large accounts,
demand deposits and savings deposits, short-term and long-term ac-
counts. Thus, there is also a wide range of interest rates paid to differ-
ent kinds of depositors.
In addition to the basic function of channeling saving into in-
vestment (or into noninvestment borrowing by consumers and gov-
ernment), Those financial institutions that issue demand deposits that
can be used as money perform a second important function. They
create money, or more precisely, they play an important role in the
creation process in partnership with the central bank.

Exercises
1. Read and translate the text.

2. Find English equivalents for the following words and word-


combinations:
финансовые посредники; финансовые рынки; круговой поток;
сбережения; получатель ссуды; облигация; вексель; казначейский
билет; платить проценты на вложенные средства; назначать более
высокие проценты на фонды, которые дают взаймы; разница; по-
лучаемые или даваемые взаймы фонды; процентная ставка; счет
(бухгалтерского учета); депозит до востребования; сберегатель-
ный депозит; вкладчик.

3. Find in the text the opposites to the following words:


Consumption, constant, borrower, savings, production, variable,
lender, operating costs.

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4. Answer the questions to the text.


1) Why are commercial banks called the financial intermediaries?
2) How do banks get their profit?
3) What is the market for loanable funds?
4) What are the kinds of accounts?
5) Do banks play an important role in the creation of money?

5. In pairs, act out and translate the following dialogue.

 Dialogue
(A banker’s office in New York City. Mr. Smith, a Vice Presi-
dent, is speaking to Bill Wilson.)
S. O.K. Bill. As a secretary you ought to know certain things about
banking.
B. That’s what I want. I hope to make my career in banking.
S. And what banks services are you familiar with?
B. Oh, let me see. I am familiar with checking and savings accounts,
safety deposit boxes, insurance and things like that.
S. It is something.
B. But I don’t have a clear idea of the services which banks offer to
business.
S. O.K. Let’s discuss it then. In fact it is more directly concerned with
what passes over my desk.
B. I think businesses come to the banks for loans.
S. You are right. Banks make loans to corporations, individuals and to
small companies. For this service, we always charge interest.
B. But how can a bank decide whether a business should receive a loan?
S. First of all, we request a financial statement. It shows what the
company has in inventory, accounts receivable and other assets and
liabilities. Profit and loss statement shows the company’s income and
expenses.
B. In other words you look over the financial situation of a business.
S. Exactly. If the company is eligible for a loan, it may choose a long-
term or a short-term loan.
B. I see. And how much interest does the bank charge on these loans?

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S. It can vary. We have so-called prime-rate that is the lowest interest


rate available at the particular time. Only preferred customers can
have it.
B. Very often I hear the term «a line of credit». I have a vague idea of
what it is.
S. A line of credit is the maximum amount of money that a company
can borrow from a bank. This top amount of customer’s credit is
based on the profit and earnings of business.
B. Well. Then it is very important to have a good line of credit, isn’t it?
S. Sure. A bank also issues letters of credit. Such letter says that its
holder can borrow up a certain sum of money. Or a bank can also is-
sue a letter of credit for a person who goes to another country where
another bank is involved. Then there is the credit reference letter
which recommends a company to its suppliers, and well – I could go
on all morning.
B. Thank you. It’s very useful information.

6. Fill in the grid. Comment on it.


Bank services Kinds of loans
… …

7. Explain the terms: a) prime-rate; b) a line of credit; c) a letter


of credit.

8. In pairs, act out a conversation between a banker and a cus-


tomer, who wants :
a) to take a long-term (short-term) loan;
b) to deposit money;
c) to open an account.

Use the speech patterns:


That‟s what I want. - Именно это я и хочу.
Let me see… - Дайте подумать…
I think… - Я думаю…
I see… - Понимаю…
Will you stick to the point? - Нельзя ли поконкретнее?
I don‟t think so. - Я так не думаю.

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There is no doubt about it. - В этом нет сомнения.


You are mistaken. - Вы ошибаетесь
Text B
Money and Free Market Economy

Money can be anything that is generally accepted in payment for


goods or services. It provides a medium of exchange, a measure of
value, and a store of value. Principal forms of money are currency,
demand deposits (checking accounts), other checkable deposits, and
“plastics”.
Financial institutions such as commercial banks, saving and loan
associations and thrifts are essential to the smooth operation of a mar-
ket economy system. The demand deposits and other checkable depo-
sits they hold make up the largest part of the money supply. These in-
stitutions also provide a safe place for he deposit of funds and serve as
a source of loans and other financial services.
Because loans are typically added to demand deposits, one can
say that the lending ability of banks serves to “create money”. How
much money commercial banks create is limited by the required re-
serve ratio, which determine the amount of money that bank can lend
at any particular time.
The Federal Reserve System is nation’s central bank. It pro-
vides banking services for financial institutions and supervise their ac-
tivities. It also acts as a bank for the federal government.
The value of money is really its purchasing power – the amount
of goods and services it can buy. The purchasing power of money can
increase, as it does during periods of deflation, and it can decrease, as
it does during periods of inflation.

Exercises
1. Read and translate the text.

2. Find in a special dictionary the meaning of the underlined


words.

3. Answer the questions.


a) Which principal forms of money do you know?
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b) What kind of service do financial institutions provide?


c) How can the activities of commercial banks be limited?
d) How does purchasing power depend on the periods of def-
lation/inflation?

4. Complete the scheme and comment it.

forms functions
Money

1 2 3 4 1 2 3

Purchasing power

BE READY

1. Write an essay about the role of the banking system in the


economy.

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LESSON 7

Compare the words

farm – farming – farmer


farm – 1) an area of land used for growing crops or keeping farm an-
imals; 2) (only before noun) used on or belonging to a farm; 3) a
place where a particular type of animal is produced in order to be
sold; 4) a farmhouse; 5) (verb) to use land for growing crops or keep-
ing animals.
farming – 1) the activity or business of being a farmer; 2) growing
crops.
agriculture – agricultural – agriculturalist – agronomist
agriculture – the work, business or study of farming.
agricultural – relating to farming.
agriculturalist – someone who knows a lot about farming and gives
advice to farmers.
agronomist – a scientist who studies agronomy.

Task 1. Fill in the proper word in the proper form (farm, farm-
house, farming, farmland, agriculture, agriculturalist, farmer,
agronomist). Sometimes several variants are possible.
1) Patrick worked on a neighboring … 2) It is very difficult to
find … workers now. 3) He … sheep. 4) They’ve been … in the area
all their lives. 5) The land was … intensively. 6) Visitors often came
to the … at week-ends. 7) The … was quite big and cozy. 8) European
Union talks on the future of … 9) The two main sectors of … are …
and animal husbandry. 10) … is developing in Russia. 11) Farmers
have criticized the government’s … policy. 12) The land is only to be
used for … purposes. 13) Most of the population are employed in …
and fishing. 14) He works as an … 15) A lot of scientists, ecologists
and … are concerned by the future of …

Task 2. a) Compare the words:


product – ΄produce – to pro΄duce – productive – productivity – pro-
duction
b) Make up word combinations and translate them.

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c) Make up sentences of your own with the word combinations.


(Use the table)
labour produce
a final product
to sell productivity
crop production
to produce goods
productive resources

Introduction Text
Agricultural Economics

Agricultural economics has been one of the leading branches of


applied economics since 1920s. Now it is developing rapidly as it is
important for most countries of the world.
In order to understand agricultural economics it is necessary to
know how crops are sown, cultivated, fertilized, and harvested, how
livestock are bred, raised, fattened, and sold.
One of the main characteristics of agricultural sector is its great
dependence on natural conditions, such as climate, weather, soil, etc.
For example, there are differences between farms growing crops or
fattening cattle in the central part of Russia and in its southern regions,
as well as between farms growing wheat in the Ukraine and Ka-
zakhstan. Farms of the same type working under different natural
conditions use different livestock breeds, crop varieties, harvesting
machinery, etc.
In developed countries the productivity in agricultural sector in-
cluding agriculture and processing of agricultural products is being
raised as fast as in the economy as a whole. The main reasons for ris-
ing efficiency are: a) better agricultural technologies; b) better capital
inputs, such as machinery; c) achievements in biological sciences.
However, there are two main factors limiting further rise of effi-
ciency: increasing energy scarcity as well as the loss of topsoil and
water.
Unlike incomes in most industries, farm incomes vary from year
to year. They depend on weather conditions and changes in demand
for and supply of most farm products.

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All these problems are considered by agricultural economics.

Exercises
1. Scan the text.

2. Agree or disagree with the following statements:


a) Agricultural economics is very important for agrarian coun-
tries.
b) There are a lot of things to be studied in order to understand
agricultural economics.
c) Farms of the same type use the same livestock breeds, crop
varieties and farm machinery.
d) The only reason for rising farm efficiency is achievements in
biological sciences.
e) Farm incomes depend on weather conditions and changes in
demand for and supply of most farm products.
f) There are no factors limiting further rise of efficiency in
farming.
Use the phrases: You’re right (to a certain extent).
You’re mistaken.

3. Insert the proper words.


Agricultural … is a … branch of applied economics. It is neces-
sary to understand how crops are …, …, and … . Farm sector …
greatly on natural conditions. There are … approaches in how to farm
in different climatic … . Better agricultural technology is one of the
main … for rising efficiency.
(For help: reason, vital, different, economic, harvested, grown,
sown, conditions, depends).

4. Answer the questions.


1) Why is agricultural economics developing rapidly?
2) What is necessary to know to understand agricultural eco-
nomics?
3) What is the main characteristic of agriculture?
4) Why do farms of the same type in different regions use dif-
ferent livestock breeds, crop varieties and machinery?
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5) What are the main reasons for rising efficiency in agriculture


in the developed countries?
6) What are the factors limiting further rise of productivity in
agriculture?
7) Why do farm incomes vary from year to year?

Grammar Revision

Participle I Participle II

1. Put down different forms of Participle I.


To read, to write, to make, to raise, to use, to borrow, to feed, to
grow, to fertilize, to produce, to process, to manufacture, to include, to
buy, to sell, to predict, to rent.

2. Translate the word combinations.


Processing industries, growing demand, developing relation-
ships, increasing productivity, growing scarcity, working plants,
changing buyers’ behaviour.

3. Match the English phrases with their Russian equivalents.

Consumers choosing the cheapest Выбирая самые дешевые


goods … товары, потребители …
Choosing the cheapest goods Выбрав самые дешевые товары,
consumers … потребители …
Having chosen the cheapest goods Потребители, выбирающие
consumers … самые дешевые товары …
Consumers are choosing the Потребители выбирают самые
cheapest goods. дешевые товары.
Economies coping with resources После того, как с дефицитом
scarcity … ресурсов было покончено, …
Having been coped with resources Решая проблему нехватки
scarcity … ресурсов, экономики…
Coping with resources scarcity Экономики, решающие про-
economies … блему нехватки ресурсов …
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Economists predicting new Предусмотрев новые


tendencies … тенденции, экономисты …
Having predicted new tendencies Экономисты, предугадывающие
the economists … новые тенденции, …

4. Determine the Participial constructions. Translate the sen-


tences.
1) Having prepared asset accounts and liability accounts show-
ing the financial conditions of the company, she gave them to the
manager. 2) Much information being obtained from journals, addi-
tional funds should be invested in the bookkeeping system. 3) The
work in the field having been finished, farmers could go home.
4) Commercial organizations dealing with farm business have devel-
oped special programs to be used for processing the farm information
by microcomputers. 5) While using one of the programs for micro-
computers a farmer has to prepare proper records, code them, and feed
them into the machine. 6) Financial information may be obtained for
the company as a whole, each transaction being recorded separated in
a journal. 7) When speaking about the new project the reporter
showed a map. 8) A farmer using a microcomputer can examine his
accounts without waiting the end of the year. 9) All data having been
collected, the bookkeeper began calculating the sum of all the debit
and credit balances. 10) Water exists as ice at low temperature and as
steam at high temperature, with the temperature depending upon pres-
sure. 11) I saw him running. 12) The farmer watched the grain being
transported. 13) The tourists stayed at a very expensive hotel, their
room facing the sea. 14) These research organizations provide farmers
with valuable information being used in farm budgeting. 15) Having
been checked by the bookkeeper, the trial balance was sent to the ac-
countant. 16) Being applied correctly the technology becomes an im-
portant factor of maximizing profit. 17) New equipment being used,
the company was able to decrease the cost of production.

5. Compare word combinations with the Participles I and II.


a device consuming much energy – energy consumed by the de-
vice
the moving parts of the car – moved by the car

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the mechanic examining the new machine – the machine ex-


amined by the mechanic
meeting the delegation, the farmer… – when met the delegation …
opening the door, I … – the door opened by me …
packing the goods in strong cases – the goods packed in strong
cases

6. Determine the function of the Participle II. Translate the sen-


tences.
1) The prices for the produced goods change with the demand
level shift. 2) When written this book became very popular among
children. 3) He doesn’t speak unless asked. 4) This type of lease is
well suited to the farmer who wants to transfer running the farm to a
son or another person. 5) Different organizational forms have been
found in the US farm business. 6) The project won’t be adopted unless
examined by specialists. 7) When used this mechanism consumes
much energy but saves human labour. 8) Clocks produced at the plant
are in high demand. 9) The fertilizers are evenly spread in the field.
10) They have thoroughly studied the relationship between producers
and markets.

7. Use Participles when completing the sentences in English.


1) (Используя кредитные карточки), the busy people can rela-
tively easily purchase goods by mail or telephone. 2) (Использовав
кредитные карточки), the busy people could relatively easily pur-
chase some goods by mail or telephone. 3) (Когда они были исполь-
зованы для покупки товаров по почте), the credit cards helped the
busy people to economize much time.

Word-building
1. Consulting a dictionary translate the words with «down» in
their composition:
downstream, downstairs, to bring down, to put down, downright,
downward, to get down, to cut down.

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2. Translate the pairs of words:


grace – disgrace; equilibrium – disequilibrium; ability – disability; ad-
vantage – disadvantage; agreement – disagreement; appear - disap-
pear; honest – dishonest.

3. Consulting a dictionary translate the words with «up» in their


composition:
up-and-coming; upbraid; upbringing; to update; to uphold; upkeep;
uplands; upmarket.

Useful Words and Word Combinations

agricultural economics – экономика с.-х.


applied – прикладной
attempt – попытка, усилие
available – доступный, имеющийся в распоряжении
breed – порода, разводить
capital assets – основные средства
cash crop – товарная культура
cash lease – денежная аренда
companion crop – сопутствующая культура
cost – издержки, себестоимость
cover – охватывать, покрывать
data – данные
ecosystem – экосистема
fatten – откармливать
final farm product – конечный с-х продукт
finance – финансы, финансировать
healthy diet – здоровое питание
herd – стадо
human activity – человеческая деятельность
input – капиталовложения
involve – вовлекать
lease – аренда
loss – потери, убыток
marketing – сбыт, реализация

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meet the requirements of people – удовлетворять потребности


населения
net income – чистый доход
obsolescence – моральный износ
obsolete – морально и физически устаревший
occur – случаться, происходить
processing – переработка
rapid – быстрый
raw – сырьевой
record – 1) запись; 2) рекорд
relate – относиться
result in – приводить к (чему-либо)
row crop – междурядная культура
seasonable – сезонный (характер)
storage – хранение
topsoil – верхний почвенный слой
transportation – транспортировка
turnover – оборот

Exercises
1. Make up pairs of synonyms.
To take place, pig-breeding, to occur, to relate, yield, require-
ments, demands, selling, to fund, to finance, to involve, hog produc-
tion, surface, to belong, monitoring, marketing, attempt, effort, goal,
record, aim, income, to include, top soil.

2. Choose the correct translation.

1. Реализация (продукции) a) realization; b) marketing


2. Продуктовый магазин a) food shop; b) food magazine
3. Конверт a) convert; b) envelope
4. Растениеводство a) plant and animal production;
и животноводство b) plant and animal produce
5. Ремонтная мастерская a) repair master; b) repair shop
a) to own technology;
6. Овладеть технологией
b) to master technology
a) to own a farm;
7. Владеть фермой
b) to master a farm
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3. Match the words with their definitions.

to apply possibility to be used


applied means anywhere;
application to use
applicable to be used anywhere
using anywhere

4. а) Translate the word combinations. b) Make up sentences of


your own with them.
To face problems, food production, increasing supply, to result in
decreased market prices, farmer’s costs, to sell at a market price, an
applied discipline, society’s basic needs, providing food stuffs, biolog-
ical relationship, orchard establishment, to be seasonable, resistant
crop varieties, highly productive animals, to exhaust topsoil.

5. Translate the sentences.


1) Agricultural economics is an applied phase of economics.
2) Farmers have to sell their produce at a market price. 3) Farm busi-
ness activities include processing, transportation, storage and market-
ing. 4) A healthy diet is the cornerstone of good health. 5) This me-
thod of cultivation is especially suitable for row crops. 6) This equip-
ment has come to obsolescence. 7) The turnover is rather slow. 8)
Good farm records are essential for farm business. 9) Agriculture aims
at meeting the requirements of people in food stuffs and providing in-
dustry with raw materials.

Reading

Text A
Economics of Agricultural Production

The term «agriculture» covers all human activities in producing


raw farm commodities. Farming is the nucleus of agriculture in many
countries. The farmer is a person who manages the farmland ecosys-
tem and biological processes needed for plant and animal production.

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In addition to the farm production system, agriculture also in-


cludes all the business activities that provide various inputs to the
farm and that convert raw farm commodities into final farm products.
The latter group involves processing, transportation, and marketing.
Managing all the problems relating to agriculture is the subject
of agricultural economics.
General economics is a social science because it deals with
people in their daily activities where choices are required.
Agricultural economics is an applied phase of economics. Agri-
cultural economics may be defined as a science dealing with the
scarce resources of land, labour, capital, management and their best
combination in order to meet the requirements of people. It uses the
scientific method of economic theory to find answers to problems in
agriculture.
Agricultural economics is very important because it is concerned
with society’s basic needs. Agriculture is a vital sector in many coun-
tries. Its condition and development largely determine countries’ eco-
nomic achievements, the growth of national income, the supply of
population with foodstuffs and industries with raw materials. Provid-
ing farm products for all the people in the world in the right form and
at the right time is an extremely complex process.
About 60 % of the world’s population is involved in providing
food. Because of the rapid increase in world population, increasing
food output will receive greater attention in future years.
So, a good understanding of agricultural economics is extremely
important nowadays.

Exercises
1. Read and translate the text.

2. Choose the correct variant.


1) What is this text about?
a) about farming as the nucleous of agriculture;
b) about agriculture and agricultural economics;
c) about importance of food production

2) Who is the farmer?


a) a person who processes raw materials;
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b) a businessman working at an office;


c) a man who deals with all production and business activities
on his farm

3) What is agricultural economics?


a) a science;
b) an enterprise;
c) a business activity

3. Find in the text the synonyms to the following words:


to include, agricultural, different, investments, a man, to turn, to dwell
upon, deficiency, demands, mankind, quick.

4. Complete the following:


a) Farming is …
b) A farmer is …
c) The subject of agricultural economics is …
d) General economics is …
e) Agricultural economics may be defined as …
f) It is very important because …
5. Answer the questions.
1) What is agriculture?
2) Who is the farmer?
3) What do the farm activities include?
4) What is agricultural economics?
5) What is the subject of agricultural economics?
6) Why is agricultural economics very important?

6. Comment on the schemes.

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Scheme 1

AGRICULTURE

FARM BUSINESS
PRODUCTION ACTIVITIES

processing

storage marketing
transportation

Scheme 2

AGRICULTURAL
RESOURCES

Land Manageme
Labour Capital nt

7. Retell the text.

Dialogue
Journalist Pat Wane is interviewing the Chief of Agricultural
Department Megan Milton.
– Mr Milton, what is the situation in agrarian sector of the
state?
– The matter is farmers tend to face serious problems due to
their limited control over market conditions.
– Nevertheless, a farmer can to some extent control his own
production levels, I suppose.

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– But he has no control over others. If other farmers increase


their production, thus increasing supply and resulting in decreased
market prices, there is nothing that our farmer can do about it.
– You’re right. The competition is tough.
– Another problem is that it takes time for the farmer to adjust
the output.
– Will you stick to the point?
– Well, to increase production of pork, for example, it is ne-
cessary to breed more stock. This takes time, and by the time the larg-
er stock is available, prices may have reversed.
– In other words, the farmer decided to raise more hogs when
prices went up, but by the time the stock is ready, market prices may
decline.
– Exactly. Farmers have low bargaining power in dealing with
buyers. Commodities being identical, processors or manufactories do
not need the product from any one particular farmer. Farmers, there-
fore, have to sell at a market price that may or may not be profitable at
a given time.
– There is no doubt about it. Farmers often face a situation,
when market prices change. When market prices decline (usually due
to supply conditions), prices paid to farmers decline.
– However, the farmer’s costs are unlikely to decline.
– What should be done?
– The solutions depend on a number of factors. But it goes
without saying, that government must protect domestic producer.

Exercises

 1. In pairs, act out and translate the dialogue.


2. Find in the dialogue English equivalents for the following:
Тем не менее; Вы правы; Это требует времени; Другими
словами; Именно; Фермерам не приходится торговаться; В этом
нет сомнения; Однако, вряд ли снизятся издержки фермера; Само
собой разумеется.

3. Find in the dialogue: a) Absolute Participial Construction;


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b) Modal verbs and their equivalents;


c) The Infinitive constructions

4. Find the sentence(s) which tell(s) us about the main problem in


agrarian sector. Can you give any advice to solve it?

Text B
World Food Problems

The essence of agricultural enterprise is providing food, the right


food to sustain people’s life and their health. All people must not only
have enough to eat, but they must have enough information to know
what to eat. A healthy diet is the cornerstone of good health. Many
people work in the field of nutrition and meal planning, among them
agricultural producers, educators, and students.
Availability of food within a country is often not a problem; it is
the lack of purchasing power that is the problem. Incomes in many
developing countries are insufficient to purchase a nutritionally ade-
quate diet. In 1990, per capita GNP in the developed countries ex-
ceeded $20 000. Incomes in the developing countries averaged less
than $1 000. The problem lies not only in the low income levels, but
also in low growth rates. Too little food and a limited variety of food
are serious problems in a great number of developing countries, par-
ticularly in Africa. Both problems can usually be traced to resource
characteristics, government policies, or both. Hot desert winds, infre-
quent rains contribute to low yield of a few adapted crops.
It is well known that a lot of the world’s people do not live
where much of the world’s food is produced. Industrial countries pro-
duce about half of the world’s grain, but they have less than fourth of
the world’s population.
In most cases, it is possible to reduce both chronic and transitory
food problems, but solutions can be costly and they require planning.

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Exercises

1. Scan the text.

2. Try to explain the meaning of the word «cornerstone» in the


sentence: A healthy diet is the cornerstone of good health.

3. Continue the following:


a) The problems are: (availability of food within a country; the
lack of purchasing power; low growth rates; natural conditions; a li-
mited variety of food; lack of labour resources; improper government
policy within a country).
b) (Availability of food; low incomes; skilled labour; availabili-
ty of information about food) is (are) not a problem.
 4. In pairs, act out a dialogue on the base of the text.
The matter is all
I wonder ..?
people must know…

Availability of food …
Exactly. A
healthy diet is …

Well, one problem is


Will you stick …
to the point?

It goes without
Both problems … saying.

5. Answer the question: «Have you got any idea how to solve the
problem of healthy diet in the world (in your country, in your
family)?»

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6. Find in the text the sentences which prove the information in


the scheme. Comment it.

Text C
Characteristics of Farming

There are certain differences between farming and most other


industries. Some of the differences will be mentioned first.
Farm production depends on biological relationships. This fact
limits the length of production period in farming as compared with
that of most industries. Fruit crops furnish a good example from the
plant world: a number of years will be required between orchard es-
tablishment and the first fruit harvest. In animal world, several years
will be needed between the purchase of a herd of young beef animals
and the sale of the first fattened bull from the herd. Thus, the «turno-
ver» is relatively slow.
The nature of farm work is seasonable. This results in heavy la-
bour demands during the growing and harvest seasons, with little re-
quired at other times.
Factors of farm production are not supplied separately. One per-
son may play a role of a worker and manager. He may also own the
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land, thereby furnishing all four factors of production. In industry the


productive factors are furnished separately. The labour is hired; man-
agement is furnished by offices or a board of directors; and money is
supplied by investors or stockholders.
Another difference between farming and other industries is that
farm work is less specialized. Farm work during a single work day in-
cludes many various operations.
Farming involves more economic risk than other industries. For
example, production may be risky because of unfavorable weather for
crops or because of livestock diseases. However, such methods as the
development of resistant varieties of crops, the use of chemicals for
weeds, the use of irrigation and breeding highly productive animals
can reduce production risks to some extent.

Exercises

1. Scan the text.

2. Enumerate the main differences of farming from industry men-


tioned in the text.

3. Write an annotation to the text.

BE READY

Write a composition. Topic: «Agricultural economics is a


very important branch of economics». Use the phrases: I’m going
to be writing about …; I think …; I’ll start with …; Then I move on
to…; I’ll try to …; I must emphasize …; And finally, ...

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UNIT II
Business activities
Lesson 1 Three Kinds of Business
Lesson 2 Profit
Lesson 3 Farm Management
Lesson 4 Office
Lesson 5 My Future Profession
Lesson 6 Business Letter

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LESSON 1

Compare the words:


Business
Business is employment. I‟m in the agricultural business. (That‟s my
employment.)
Business is enterprise. He sold his business (enterprise) last month.
Business is deal. He made a very good business (deal) in Russia.

Task 1. Read and translate the following word combinations, pay


attention to the meaning of the word «business» in them, distri-
bute them into three groups:

employment enterprise deal


representatives from business and politics ; our latest business ven-
ture; a potential source of new business; business lunch; a small fami-
ly business; to start your own business; to have some business to dis-
cuss; to be in show business; to be in clothing business.

Introduction Text

Three Basic Kinds of Business

Once you know the general area of your interests, consider that
there are three ways you can serve consumer needs in that area: mak-
ing a product (manufacturing), selling a product (retail or wholesale
sales), or providing a service. These are the three basic categories of
business. Of course, these categories overlap, but if you analyze the
businesses you know, you’ll see that one category predominates. For
example, a meat-packing company, a supermarket, and McDonald’s
are all involved with hamburgers in some way, but for the meat pack-
ing company, production is the main activity; for the supermarket,
sales is the main activity. With McDonald’s, classification is more
complicated. Do they sell a product (hamburgers) or a service (cook-
ing the hamburgers and providing a place to eat them)?
At one time, basic manufacturing was the main business of U.S.
business, today, service is rapidly becoming dominant. Service is in-
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volved in many large and profitable enterprises, including health care,


real estate (realtors don’t ordinarily build and stock houses; they act as
brokers between buyers and sellers) stock brokerage, insurance, and
such recent additions as computer programming and consulting.
Where might you fit in?
Services are what busy people need to be done for them because
they don’t have the time to do it for themselves. It just a creative mind
and some talent to come up with a brand-new business in the service
line.

Exercises

1. Scan the text and answer the following questions:


1) What are the three categories of business?
2) Do these categories overlap in most businesses?
3) What category predominates in a meat-packing company
(supermarket)?
4) What is the main activity in McDonald’s? Do they sell a
product (hamburgers)?
5) What activity is rapidly becoming dominant in the U.S. busi-
ness today?

2. Find English equivalents to the following words:


удовлетворять потребительские потребности; продажа про-
дукции; розничная или оптовая продажа; три основные катего-
рии; вы увидите, что одна категория доминирует; классификация
более сложная; доходные предприятия; они действуют как броке-
ры; творческий ум.

3. Give examples of business for which


a) production is the main activity;
b) sales is the main activity;
c) a service is the main activity.

4. Give examples of agricultural business (making a product,


selling a product, providing a service).

5. Answer the key question of the text: Where might you fit in?
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Grammar Revision

Passive Voice

1. Define the tense form of the predicates, translate the sentences


into Russian.
1. Many goods and services are bought. 2. Money are being used
in buying and selling goods and services. 3. Many goods and services
were bought last year. 4. Many goods and services will be bought next
year. 5. Today we have been shown a new bank building. 6. All our
questions had been answered before we signed the agreement. 7.
Many new offices will have been built in our town by the beginning of
the next year. 8. Now different measures are being taken to improve
our economy. 9. When we came automatic teller machines (банкома-
ты) were being installed.

2. Change the following sentences from active into passive.


1. Banks provide new services for consumers. 2. Economists use
models in order to study actual relations in an economy. 3. The econ-
omists predicted the growth of unemployment. 4. We consider indi-
viduals as suppliers of labour and capital. 5. The government achieved
high employment. 6. The economist chose correct methods and mod-
els for his analysis. 7. They employ many workers in the service sec-
tor. 8. They developed mining industry in the 19th century in Great
Britain, but in the 20th century they closed down many mines. 9. He
wrote the book in 1968. 10. They followed these principles in the
analysis of the economic situation.

3. Read and translate the following sentences, pay attention to


the place of prepositions in the Russian sentences.
1. Young specialists are looked after by the manager. 2. The
managing director was sent for. 3. He was well spoken of by all his
friends. 4. The new method of accounting was much spoken about. 5.
Market relations are acted upon by the law of supply and demand. 6.
Investors were listened to with growing interest. 7. You should not
choose a profession you are not interested in. 8. The new method of
computerized accounting was much spoken about.

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4. Use the verbs in brackets in active or passive.


1. The European Economic Union (to form) in 1958. 2. A new
policy of advertising goods (to introduce) by the firm recently. 3.Not
much money (to require) for the company to start business a month
ago. 4. The OPEC (to include) many oil producers, however, it (not\ to
supply) all the world’s oil. 5. The market for computers (to increase)
since the prices for old models (to fall).6. The government (not\ to
scope) with the problem of high unemployment yet. 7. Russia (to
know) as an important oil producer in the world market. 8. The USA
and Canada (to become) the members of the Organization for Eco-
nomic Cooperation and Development in 1960. 9. What energy scarcity
(to cause) by in recent years? 10. Global energy crisis (not\to take)
place for the last five years.

Word-building
1. Form adjectives according to the model:
2. Model: which can suit us – suitable
which can change –
which can vary –
which can be marketed –
which cannot be used –
which makes profit –
which has value –

3. Translate the following compound words:


well-known, well-prepared, well-done, well-planed, well-balanced,
well-connected, well-informed.

4. Translate these adjectives and write the words from which


they are derived:
industrial, essential, official, extensive, competitive, supplementary,
complimentary, antagonistic, official, productive, informative, advan-
tageous, various, different.

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Useful Words and Word Combinations

advertising – реклама. Объявление


annual turnover – годовой доход
basic manufacturing – основное производство
branch – филиал
collateral – дополнительное обеспечение
competitor – конкурент
equity capital – собственный капитал
gearing – обязательство
launch – запускать (линию товаров)
marginal analysis – маржинальный анализ
multinational company – многонациональная компания
outlet – торговая точка
real estate – недвижимость
retail – розница
serve consumer needs – удовлетворять потребности потребителей
share capital – акционерный капитал
software – программное обеспечение
stock brokerage – фондовый рынок
warehouse – складское помещение
wholesale – оптовая (продажа, закупка)

Reading
Text A
My Company
MEGASOFT is a large multinational company based in the UK.
It employs about 5,000 people. The company has branches in 10 coun-
tries with offices in 20 cities. It has operations in Russia as well.
Megasoft produces electronics and software. Its factories are in
China and Japan. So its suppliers are mostly in Asia. The company in-
vests a lot of money in research and development, as a result, each

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year it launches a new product into the market. Its most popular prod-
ucts are: MBook, Mpod and Mpad.
Electronics is a highly competitive market. Megasoft’s main
competitors are Apple and Microsoft.
The company has shops and warehouses in 10 countries and sells
its products in the domestic market and abroad. They sell their goods
on the Internet and through their retail outlets in different cities. The
majority of their customers are young middleclass people.
Megasoft is a very successful company. Its annual turnover is
about USD 500 million.
Exercises

1. Read and translate the text.

2. In pairs, agree or disagree with the following:


Use: It is correct.
It is wrong.
1) Megasoft is a multinational company.
2) Megasoftis based in New York.
3) Megasoft has offices in five countries.
4) Megasoft has branches in 5 cities.
5) Megasoft produces electronics and software.
6) Its factories are in India.
7) Its suppliers are in Asia.
8) It’s main competitors are Apple and Microsoft.
9) It has shops in 20 countries.
10) Its customers are middleclass people.
11) Megasoft is successful.
12) Its products are competitive.

3. Read the text translating the words in brackets.


MEGASOFT is a large (многонациональная) company
(базирующаяся) in the UK. It (нанимает) about 5,000 people. The
company has (филиалы) in 10 countries with offices in 20 cities. It
has (ведет работу) in Russia as well. Megasoft produces
(электронику) and (программное обеспечение). Its (фабрики) are
in China and Japan. So its (поставщики) are mostly in Asia.
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The company (инвестирует) a lot of money in (исследования)


and (развитие), as a result, each year it (выпускает) a new (продукт)
into the (рынок). Its most (популярный) products are: MBook, MPod
and MPad.
Electronics is a highly (конкурентный) market. Megasoft’s main
competitors are Apple and Microsoft. The company has (магазины)
and (склады) in 10 countries and sells its products in the (местный)
market and (за рубежом). They sell (через Интернет) and through
their (торговые точки) in different cities. The majority of their
(клиентов, покупателей) are young (средний класс) people.
Megasoft is a very (успешная) company. Its (годовой оборот) is
about USD 500 million.

4. Write the questions correctly.


1) the company when was established?
2) what the company’s annual turnover is?
3) its line of business is what?
4) the head office located where is?
5) employees are how many there the in company?
6) products are what most successful?
7) competitive the prices are?
8) company’s suppliers are who?
9) competitors company’s who are?
10) customers who are company’s?
11) in Russia it operations does have?

5. Make a report (or presentation) about some company. Use the


questions (from exercise 4) as a plan.

Text B
Company Formation
The money needed to start a business is called capital. If a per-
son does not have enough capital he may borrow some from the bank
in the form of a loan or overdraft. Before the bank gives a loan the
borrower must put up some security (such as his or her house) in case

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he cannot pay back the money. Security is also called collateral. The
owner of a business is liable to pay all the debts to his creditors, even
if he has to sell his private possessions.
If a business is owned by one person it is sole proprietorship.
Sometimes two or more people own and run a business. This is called
a partnership. People who invest money in a business are called inves-
tors or backers. The backers in partnership are all partners or owners.
All the investors in a limited company have limited liability. In-
vestment in a limited company is in the form of shares. The liability of
each shareholder is limited to the amount of his (her) investment. If a
shareholder has more than 50% holding, he is a majority shareholder
and he has controlling interest in the company.
Capital which is borrowed is called loan capital. Capital obtained
from investors is called share capital or equity capital. The ratio be-
tween the loan capital and equity capital determines whether a compa-
ny has a high gearing or a low gearing.

Exercises
1. Read and translate the text.
2. Continue the following:
a) Capitals is …
b) A person can borrow money in the form of …
c) The borrower must put up …
d) … is liable to pay all the debts to his creditors.
e) … is sole proprietorship.
f) … is partnership.
g) Investors are …
h) Loan capital is …
i) Equity capital is …

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3. In pairs, make up a conversation about company for-


mation. Use:
I wonder …
It is very important for company formation.
Do you know the difference between …?
It’s news for me.

Text C
What is Marketing?

Marketing is the wide range of activities involved in making sure


that you’re continuing to meet the needs of your customers and getting
value in return. These activities include market research to find out,
for example, what groups of potential customers exist, what their
needs are, which of those needs you can meet, how you should meet
them, etc.
Marketing also includes analyzing the competition, positioning
your new product or service (finding your market niche), pricing your
products and services, and promoting them through continued adver-
tising, promotions, public relations and sales. One of the greatest
needs of managers of business is to understand and develop marketing
programs for their products and services. Business success is based on
the ability to satisfy customers. Modern marketing programs are built
around the «marketing concept», which directs managers to focus
their efforts on identifying and satisfying customer needs – at a profit.
Marketing results can be improved through a better understand-
ing of customers. This approach usually is referred to as the marketing
concept. Marketing is a very complex subject; it deals with all the
steps between determining customer needs and supplying them at a
profit.
Any marketing program has a better chance of being productive
if it is timed, designed and written to solve a problem for potential
customers and is carried out in a way that the customer understands
and trusts.

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Exercises

1. Scan the text.

 2. Write down key words.

3. Answer the questions:


1. What is marketing?
2. What activities does marketing include?
3. What role do marketing programs play in business?
4. What is necessary for the marketing program to be productive?

BE READY

1. Make a report on the topic «Three kinds of business»

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LESSON 2

Compare the words:

profit – profitable – profitability


Profit is money that you make by selling something or from your busi-
ness, especially the money that remains after you have paid all your
business costs.
Profitable means making profit; giving you a benefit or advantage.
Profitability is the degree to which something is profitable, or the
state of being profitable.

Task 1. Use the proper word: «profit», «profitable», «profitability».


a) to make …; to get …; highly … enterprise; to return the
company to …; … opportunities; … business; … products.
b) 1. All the … from the sales was used for the development of
production. 2. A good farmer should be able to identify … markets. 3.
The company consistently increased turnover and increased … .

Introduction

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1. Have a look at this funny picture and read what each gentle-
man thinks looking at the graph.

2. Answer the questions:


1) What does the graph show?
2) Who are these gentlemen?
3) Why are their thoughts so different?
4) Do you think the company did well in the past?
5) Are the present profit figures unexpected to them?
6) What would you think if you were among these gentlemen?
7) What do you think each of them says looking at the graph?

Introduction Text
Profit

It is essential to distinguish a few different concepts of profit.


Profit in everyday life means advantage or good obtained from
something. Besides it can mean money gained in business. Profit for
an accountant means simply the difference between total receipts and
total costs.
For an economist profit has a much wider meaning. It is the rev-
enue derived from the use of resources minus the opportunity cost of
using those resources.
Reported business profits are chiefly corporate earnings. The
most important source is profit as an implicit return. Firms generally
own many of their own non-labour factors of production – capital,
natural resources, and parents. In these cases, the implicit return on
unpaid or owned inputs is part of profits. A second source of profits is
uncertainty – associated with the return to cover uninsurable risks, and
the profits earned by entrepreneurs who introduce new products or in-
novations. Finally, profits may result from firms exercising monopoly
power on their patents, from special privileges, or due to regulation.

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Exercises
1. Scan the text.

2. Answer the questions: «Have you got any new information?


What is it about?» Use: I’ve learned that (about)…
For ideas: kinds of profit, everyday life, business, and sources
of profit …
3. Continue the following:
1) Profit in everyday life means …
2) In business profit means …
3) For an accountant profit means …
4) There are two sources of profit …

4. Translate the following definition of the term and guess the


term:
__________ is often regarded as the difference between the total
expenses involved in making or buying something and the total reve-
nue accruing from its sale. This difference could be interpreted as a re-
turn on capital and measured in various ways.

Grammar Revision

Infinitive

Exercises

1. Read and translate the following sentences, define the function


of infinitives in them:
1. They started to negotiate the contract last Monday. 2. He
stopped to read the ad. 3. You must visit this firm by all means. 4. The
aim of any firm is to get high profits. 5. Our farm hoped to get credit.
6. In order to increase production we want to use new methods. 7. A
professor to deliver the lecture is a well known economist. 8. It’s a
good farm to have a practical training on

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2. Make up sentences, define the function of infinitive in them:


A
to study economics
difficult to know economics
possible to develop agriculture
important to know what affects prices of goods
necessary to predict the behavior of sellers
It is (not)
essential to solve the problem
obligatory to learn the rule
imperative to quote the prices
to make the changes
to change the routine
B
to buy
Man works goods and services
чтобы покупать
in order to buy
Man works goods and services
чтобы покупать

3. Change the sentences after the model:


Model: Managers study the situation in the market as they want
to know how many goods to produce.
Managers study the situation in the market in order to know how
many goods to produce.
Managers study the situation in the market to know how many
goods to produce.
1. We study economics as we want to work as managers.
2. Farmers grow animals as they want to produce meat and milk.
3. Factories and plants use fuel and energy as they are necessary to
produce resources. 4. Companies produce goods as they want to sell
them. 5. Mining gets minerals from the earth as it must provide re-
sources for manufacturing. 6. Factories process resources as they want
to sell them as goods. 7. Economists make models because they want
to use them in economic analyses.

4. Translate the sentences paying attention to the Infinitive in the


negative form:
1. It is important not to destroy the advantages of a monopoly.
2. It is desirable not to reduce the period for which patents are granted.
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3. They introduced the changes not to suffer losses. 4. We have to re-


duce the rates not to lose customers. 5. They had to form a cartel not
to let the competition spread. 6. They introduced the bill not to let un-
employment grow.

5. Read and translate the following sentences with the Infinitive


Constructions. Define the type of the Infinitive Constructions in
them.
a) 1. The transportation, storage, and processing of this product
are known to be rather costly. 2. Evaluating the results is believed to
show the potential of the business. 3. An economic sector seems to be
large and diverse. 4. This business is likely to be profitable. 5. The
market of this product is sure to be broad. 6. Evaluating the industry is
certain to increase our knowledge of factors that contribute to the
company’s success.
b) 1. We believe their company to dominate the market. 2. They
don’t want him to use crude methods. 3. Economists know budget def-
icit to threaten the economy. 4. The economists hope the national cur-
rency to be stable. 5. They consider the production of soft drink to be
stable. 6. We want our shareholders to know the real state of the busi-
ness.
c) 1. The first thing for an economist to do is to study the fun-
damentals of economics. 2. The students were waiting for the profes-
sor to explain some aspects of economic theory. 3. This is a good pos-
sibility for us to utilize the electronic equipment in accounting. 4. For
our economy to run well, all economic moves should be well thought
over. 5. For the food problem to be solved, all efforts should be under-
taken to develop scientific systems of farming, good management,
technical reequipment. 6. Nearly a month was required for the firm to
train the staff.

Word-building

1. Read and translate the words:


profit – profitable – profitability; insure –insurance – insured – unin-
sured;
allocate – allocation – allocated; contribute – contribution – contributor;
total – to total; to earn – earner – earnings.

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2. Translate the adjectives and name the words from which they
are formed:
Remarkable, changeable, exchangeable, understandable, varia-
ble, profitable, suitable, charitable

3. Form adjectives with the help of the suffixes and translate


them:

-al -ive / -tive -ent / -ant


environment to relate to differ
industry to comprehend to observe
government quality -ese
form quantity Chine
nation result Japan

4. Make the words negative with the help of the prefix un-:
stable – unstable, profitable – …, logical – …, changeable – …, con-
stant –

Useful Words and Word Combinations

accountant – бухгалтер
average – средняя величина
competition – конкуренция
earnings – заработок, доходы, прибыль, заработная плата
employee – работник
employer – работодатель
enterprise – предприятие
implicit return – полный доход, выручка, прибыль
monitoring – мониторинг, контроль, проверка
on the other hand – с другой стороны
production possibilities – производственные возможности
receipt – денежные поступления, выручка, приход, доходы
relevant – относящийся к данному делу / вопросу
retained earnings – нераспределенная прибыль
return – доход, выручка, прибыль
revenue – доходы, государственные доходы, источник дохода
scale – масштаб
tangent – касательная
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to diverge – отклоняться, расходиться


total – полный; общий
uninsurable risk – незастрахованный риск
unit – единица изделия (зд.)

Exercises

1. Match the English word with its Russian equivalent:


1) monitoring a) результат деятельности
2) surplus b) единица продукции
3) unit c) убыток
4) loss d) контроль
5) performance e) излишек

2. Make up word combinations and translate them:

A
sum
amount
earnings
total
receipts
costs
expenses

B
export
total
earnings
interest
retained

C
to earn a
to make a
profit
to sell something at a
to do something for

3. Read and translate the following pairs of antonyms:


Input – output, total receipts – total costs, selling – buying, pro-
duction – marketing, loss – profit, successful – unsuccessful, to mi-
nimize – to maximize, employee – employer, to hire – to lay off.
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4. Complete the sentences with the correct word from the box.

а) production possibilities b) output c) unemployment d) profit


e) competition f) inflation g) taxes h) monitoring i) benefit

1. Usually several … exist for each enterprise. 2. The farmer


must maintain an optimal balance between … and costs. 3. Yield is a
major factor determining … . 4. Careful control of inputs and regular
… of performance are necessary. 5. The manipulation of … and its
expenditure is one of basic means by which government can help to
eliminate … and … . 6. Scarce resources should be allocated in a way
that gives maximum … to the whole farm. 7. There is a … for scarce
resources.

Reading

Text A
Factors Affecting the Profit

The profit from any enterprise can basically be derived as fol-


lows: average value of each unit of its product (average cost of pro-
ducing each unit) multiplied by a number of units of the product. At
the enterprise level the farmer’s task is to ensure that an optimum bal-
ance is maintained between output and costs, with relevant considera-
tion of the scale of production.
The advantage of a large scale production is obvious. It can justi-
fy a specialist’s labour and machinery of a size and type which assists
timeliness and produces improved results. Better building and other
equipment may be warranted. It might also be easier to apply new
techniques in such cases. A large scale enterprise merits not only in
production, but also for marketing. The price received for products is
a major factor determining profits. Selling large quantities can some-
times produce higher prices
Usually several production possibilities exist for each enterprise.
It is unwise to divorce the selection of the particular production sys-
tem from the rest of the business because of the competition for avail-
able resources. Once the system has been selected every effort must be
made to make it as efficient as possible, either by maximizing the out-
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put by more efficient use of resources allocated to the enterprise or by


a reduction in the resources it requires. Although yield is a major fac-
tor determining profit it must be considered in relation to input levels.
Where inputs are low, less than average yields may produce reasona-
ble profits. The situation to avoid is where high costs are associated
with moderate or low yields. It is possible for farmers with national
average yields to be making a loss.
Careful control of inputs coupled with regular monitoring of per-
formance can help to ensure the efficiency of an enterprise and diag-
nose trouble or favourable trends at an early stage. Such practice can
separate the successful from the unsuccessful farmer.

Exercises

1. Read and translate the text.

2. Find in the text English equivalents of the following words and


word combinations:
прибыль, средняя стоимость, единица продукции, себестои-
мость, размер производства, отделять, выбор, увеличение до пре-
дела, сокращение, затраты, работать в убыток.

3. Answer the questions to the text:


1) How is it possible to derive a profit from any enterprise?
2) Does the successful farmer maintain an optimum balance be-
tween output and costs?
3) Do several production possibilities exist for each enterprise?
4) What are the two ways to make the production system effi-
cient?
5) What is the major factor determining profit in farming?
6) What prices can help to ensure the efficiency of enterprise?

4. Make up a plan of the text.

5. Give a summary of the text.

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Dialogue
1. In pairs, act out and translate the dialogue.
2. Fill the gaps with the following phrases:

a) It’s quite natural. – Это естественно.


b) As far as I understand. – Насколько я понимаю.
c) That’s true. – Это верно.
d) Yes – yes, of course. – Да, да конечно.
e) I assure you that … – Уверяю вас, что…
Good. Thank you. – Хорошо. Спасибо.

Will the Joint Venture be Profitable?


An American company producing and selling agricultural ma-
chinery in continental Europe, South America and Australia has found
a prospective partner to start manufacture and sales in Great Britain.
Here is a part of the talk between the American businessman (A) and
the English Businessman (E).
E. – Now that we have tested your samples and studied your sales re-
ports let us discuss the financial matters. (1)_______ you offer to sell
us your license.
A. – (2) ______. The down payment for the license would be about
150,000.
E. – That’s not little. Besides we shall have to purchase some new
equipment. We shall also have to spend a big sum to extend our mar-
keting set-up. Oh, we should think twice before we make a decision
about the investment.
A. – (3) _____. We both should make all necessary calculations and
see what our profit will be, let’s say , for the first three years. I have
prepared some figures for you. Will you have a look at them?
E. – Thank you… It’s very interesting… On the basis of this forecast
we can expect a return of about 40% on our investment.
A. – (4) ______it is a very realistic forecast, based on present market
conditions.
E. – And will you give us a full technological support?
A. – Oh, naturally. You will receive all the design manufacturing
drawings and detailed specifications.
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E. – We’ll need start-up assistance too, and may be some help with
the training of our personnel.
A. – (5) ______. We can send a senior engineer to help you to start
production and we shall be happy to train your personnel.
E. – Fine.
A. – Can we talk now about accounting procedures? Are tour accounts
fully computerized?
E. – Yes, we have a complete ledger system package… accounts re-
ceivable, accounts payable, asset management … all computerized.
A. – (6) ______. When I return to Denver I shall make a full report to
my Director, and he will write to you.
E. – Oh sure, we’ll be in touch.

3. Answer the questions. Prove your answer.


1) Who are the businessmen?
2) What transaction are they discussing?
3) What plan of actions do they envisage?
4) Will the joint venture be profitable?

BE READY

 Write an essay on the contents of the Lesson. You may use the
following plan:
а) definition of the term profit; b) sources of profits; c) compa-
nies’ profitability; d) factors affecting profitability; e) ways to increase
profitability.

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LESSON 3

Compare the words


management – manager – managerial

Management is the control and operation of a business or organiza-


tion.
Manager is someone whose job is to organize and control the work of
a business or organization or part of it.
Managerial means relating to the job of a manager.

Task 1. Use «manager», «management» or «managerial».


Job of …, line of …, area of …, marketing …, sales …, office …, …
experience, … position, … role.

Task 2. Fill the blanks with the proper words from the box.

manager – management – managerial

1. In our company we have a new approach to (1)______. 2. The


heart of effective (2)______ is communication. 3. I’d like to speak to
the (3)____. 4. For three years I was the (4)_____ of a big farm. 5.
Nick has rich(5)___ experience. 6. (6)_____ skills differ successful
farmer from unsuccessful one.

Introduction Text
Definition of Management

Management is based on scientific theories and today we can say


that it is a developing science.
But knowledge of theories and principles doesn’t provide prac-
tical results. It is necessary to know how to apply this knowledge.
Practical application of knowledge in the management area requires
certain abilities or skills.

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A very large organization may employ many managers, each re-


sponsible for activities of one management area. In contrast, the owner
of a sole proprietorship may be the only manager in the organization
He or she is responsible for all levels and areas of management.
What is important to an organization is not the number of man-
agers it employs but the ability of these managers to achieve the or-
ganization’s goals, and this ability requires a great skill.
In other words, management is the process of coordinating the
resources of an organization to achieve the primary organizational
goals.
The primary function of management is decision making, in
short and long terms, both at the general husbandry and the overall
business levels. Hypothetical decisions are more easily taken than
those in a real life situation which can have an impact on one’s future
livelihood. Anyone who aspires to management should therefore take
every opportunity to practice decision making, and the more real the
circumstances the better.
Many decisions have to be taken with incomplete information.
The biological nature of farming and variations in climate between
years make it a business which cannot be run entirely by a set of rules.
Plans made in the comfort of an office can appear to be tarnished
when things are going wrong in the field or, for example, the cows are
still housed long after normal turn out dates, winter fodder supplies
are exhausted, the grass is not growing, and the bank overdraft is al-
ready high. Yet it is on just such occasions that good managers can
distinguish themselves by their determination and ability to make de-
cisions.
In other words management in agriculture, as in any other indus-
try, is the process of coordinating the resources of an organization (a
farm) to achieve the primary goals.
Farmer as a manager is concerned with the following main re-
sources:

Material Human Financial Informational Organizational


resources resources resources resources (farm) goals

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Exercises
1. Scan the text.

2. Using a dictionary translate the italicized words.

3. Choose the best variant:

a) a science
b) a set of rules to follow
Management is
c) an application of theoretical knowledge
to practice

4. Answer the questions:


1) What is the main function of management?
2) Is their any difference between farming and any other kind of
business?
3) What are the main difficulties of management in agriculture?
4) What is management?
5) What are the main resources a farmer is concerned with?
6) What is the difference between a good manager and a poor
one in agriculture?

 5. In pairs, on the basis of the text play out a conversation be-


tween an experienced farmer and a beginner. Use the following
phrases:
I‟d like to know … – Мне хотелось бы знать …
I‟m interested to know … – Мне интересно знать…
I have another question…– У меня есть ещѐ вопрос…
What do you mean? – Что вы имеете в виду?
Is it true that…? – Верно ли что…?
You are right. – Вы правы.
I am afraid you are wrong. – Боюсь, что вы ошибаетесь.
That‟s not so. – Это не так.
You are mistaken. – Вы ошибаетесь.
I don‟t think so. – Я так не думаю.
I haven‟t the slightest idea – Я не имею ни малейшего
представления….
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Grammar Revision

Modal Verbs

1. Read and translate the following sentences pay attention to the


modal verbs.
1. Experience can help to make business successful. 2. Any fac-
tors could have a vital impact on your business. 3. A company will be
able to get a credit next week. 4. The government policy may improve
the living conditions. 5. He might go home, as he had finished his
work. 6. All members of the company will be allowed to take part in
the discussion of the new chart. 7. All companies must pay taxes.
8. The firm was to deliver the goods before the end of the month. 9. If
the demand for this good is low, the producer will have to decrease
the price for it. 10. Members of the OPEC were to sell oil at the same
price. 11. In order to compete in the market successfully the company
should spend enough money on advertising.

2. Use can, could or to be able to.


1. Even at present computers …(not) translate from one foreign
language into another without mistakes. 2. By means of computer
programs economists … make more complex economic models in fu-
ture. 3. In the past members of a farmer’s family … produce most ne-
cessities on their farm, such as clothes and other things. 4. Small na-
tions … ensure their economic security only by effective cooperation
with other nations. 5. The firm was closed as it … (not) to pay its
debts. 6. Manufacturing … (not) develop before the Industrial revolu-
tion of the 18th century. 7. Developing countries … (not) become eco-
nomically independent until they import less than they export.

3. Use can, could, may, must.


1. If there are a few firms in an industry, the change in the beha-
vior of one firm … influence other firms. 2. … developing countries
enter the European Union? – No, they … . 3. The firm … increase its
profit by means of new materials or technologies. 4. Any crisis in the
economy of the USA … seriously influence the economies of other
nations. 5. Any country …follow some rules in international trade.

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6. … Russia supply its population with necessary amounts of gas and


petrol? – Yes, it … . 7. British farmers …(not) ensure the required
quality of meat when there was an infection among animals a few
years ago. 8. You … have a special license to import or export exotic
animals.

4. Use the proper form of the verbs: must, should, have to…, to
be to… .
1. The company … advertise the new product to attract more
buyers. 2. The firm … provide quality certificates for all its goods. 3.
The government … stimulate the production of necessities and it …
prevent the increase in prices. 4. The company … pay taxes on its
profits. 5. The new government policy … ensure more jobs for popu-
lation. 6. The trade policy of the Japanese government in the 1950’s
… ensure rapid economic growth.

5. Replace the Russian words by the proper form of can, could,


should, have to, be to.
1. Today they (должны будут) prepare the document for tomor-
row’s meeting. 2. In the late 1940’s, the Japanese government (могло)
maintain only a very low level of living for the most part of popula-
tion. However, the country (смогла) develop its industry by introduc-
tion of new technologies. 3. The country did not harvest enough crops
last year, so it (была вынуждена) import additional foodstuffs.
4. Some small European industrialized countries (могут) provide large
credits for developing countries. 5. Some economists think that such
rapidly developing Asian countries as China and Taiwan (смогут)
overtake the USA in high-tech in future.6. Nowadays some goods
manufactured in developing countries (могут) compete successfully in
the world market. 7. The scientist (следует) study better how people’s
activities influence the earth’s climate and ecology. 8. Belgium (вы-
нуждена была) specialize only in some manufactured goods, for ex-
ample, in cars. 9. Early in the 20th century, developing countries (не
могли) enter the world market as there were strong trade barriers.
10. A small nation (не должна) produce all manufactured goods as it
(может) import them at a lower price from other countries.

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Word-building

1. Read and translate the following groups of words. What part


of speech do the words belong to?
plan – to plan – planning; time – timing; finance – to finance –
financing; life – to live – living; market – to market – marketing; staff
– to staff – staffing; value – to evaluate – evaluating; to lead – leader –
leading

2. Analyze the suffixes and translate the words

-ness -ment -ence, -ance -tion


weakness deployment difference evaluation
competitiveness management performance competition
eagerness assessment importance information

Useful Words and Word Combinations

adjustment – корректировка
degree of authority – степень полномочий
evaluating – оценивание
financing – финансирование
implementation – осуществление, выполнение
living expenses – расходы на жизнь
marketing – реализация, сбыт
objective – цель
planning – планирование
repayment of capital – возмещение капитала
responsibility – ответственность
staffing – укомплектование штата
timing – выбор определенного времени
to delegate authority – передавать полномочия и права
to deploy – размещать
to direct – руководить
to fire – увольнять
to hire – принимать на работу
to record – вести запись, регистрировать
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to supervise – контролировать
to undertake – предпринимать
wage (s) – заработная плата

Exercises

1. Look through the list of words and read first nouns, then
verbs.

2. Match the English words with their Russian equivalents.


1) objective – a) подчиняться
2) to allocate – b) влиять
3) modification – c) предвидение
4) to comply – d) изменение, модификация
5) to undertake – e) контролирование, проверка
6) to influence – f) запись, регистрация
7) forecasting – g) осуществление, выполнение
8) planning – h) планирование
9) implementation – i) цель
10) recording – j) размещать, распределять
11) controlling – k) предпринимать

3. Match the noun with the proper group of verbs:


а) objective; b) result; c) resources
1) to control, to record, to analyze
2) to attain, to establish, to define
3) to obtain, to allocate, to use

4. Make up word combinations.

factors
long term
ability
day to day
subject
successful
process
management
planning
environmental
marketing
objectives
for business
availability
of workers

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5. Use the proper words from the box:

plan objective modification amendments results


Environmental factors primary resources

1. Each farmer has ____for his business. 2. Capital, land, labour


are ____ . 3. Once the plan is in operation the ______ have to be rec-
orded. 4. Sometimes it is necessary to undertake _______ or _____. 5.
Sometimes _____ _____ may influence management subjects.

Reading

Text A
The Functions of Management

The functions of management are primary concerned with plan-


ning, financing, marketing and staffing.
Planning. There are two kinds of planning: long term strategic
planning and shorter term, day-to-day, tactical planning. They are both
necessary. Thus the farmer has to decide which products he will pro-
duce. Later, when the plan is operating he has to make tactical deci-
sions. They involve such things as the timing of operations, technique
of operation, adjustments within production processes. In essence, the
farmer has to put his plan into action. He has to control his resources
and exercise his judgment. He must be sure that the production com-
plies with the plan and the objectives for the business.
Financing. With regard to financing, at the planning stage the
farmer examines all the sources of capital. He decides how much capi-
tal is required, when it is wanted and which sources should be used,
and how and when it has to be repaid.
At the operation stage the farmer has to deploy his capital in ac-
cordance with the plan and allocate it to those activities which pro-
duce the greatest benefit to the business. It is necessary to ensure that
money is available to meet the demands for continuing production.
The farmer has to see if there is sufficient finance for living expenses,
taxation, and interest plus repayment of capital. At the same time the

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farmer must consider the future needs for capital to develop the busi-
ness.
Marketing. Successful marketing, both buying and selling is one
of the key functions of management. At the planning stage it is essen-
tial to ensure that markets are, and will remain, available. At the oper-
ational stage it is necessary to market to best advantage. Produce has
to be selected for sale and presented in the right condition, when it is
in demand, at the right market. Equal care has to be taken in the pur-
chase of goods required for production.
Staffing. When planning labour it is necessary to consider the
number of staff required, the skills that will be necessary, and the
availability of workers, the degree of authority and responsibility
which will be given to each person, and the wages and conditions
which will be provided. Apart from managing his own time, the far-
mer has to direct the staff he has selected, supervise their work, keep
them motivated, and maintain good labour relations. So the farmer
makes a lot of important decisions. He sets objectives, coordinates
work, delegates authority, does hiring, firing, evaluating and acts as a
general manager.

Exercises
1. Read and translate the text.

2. Find English equivalents for the following words and word


combinations:
главным образом связаны с…, планирование, финансирова-
ние, сбыт, комплектация штата, стратегическое планирование,
тактическое планирование, приводить план в действие, подчи-
няться плану (соответствовать), источники, выплачиваться, при-
носить прибыль, (наибольшую), проживание, налогообложение,
выплата капитала, развивать бизнес, как купля, так и продажа,
умения, степень полномочий и ответственности, заработная пла-
та, принимать важные решения.

3. Complete the following sentences using the text:


1. The functions of management are primarily concerned with ….
2. Planning may be … .
3. The farmer has to decide which products he … .
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4. The farmer examines all the sources of … .


5. It is necessary to ensure that money is available to … .
6. The farmer has to see if there is sufficient finance for … .
7. It is essential to ensure that the markets are, and will remain ….
8. Care has to be taken in the purchase … .
9. When planning labour it is necessary to consider … .
10. Apart from managing his own time, the farmer has to … .

4. Say a few words about planning using the questions below as


key points.
1. What are the functions of management concerned with?
2. What are the two kinds of planning?
3. What is the difference between strategic and tactical plan-
ning?
4. Why does the farmer have to control his resources?

5. Say a few words about financing using the questions below as


the key points.
1. What does financing at the planning stage mean?
2. What does financing at the operational stage mean?

6. Say a few words about marketing using the questions below as


key points.
1. What are the functions of marketing?
2. What is essential for marketing at the planning stage?
3. What is essential for marketing at the operational stage?

Text B
The Processes of Management

Each farmer has objectives for his business. Management is con-


cerned with ensuring that these objectives are attained. Every business
has three primary resources: capital, which is used to obtain other re-
sources; land (including buildings) and labour. The key factor is man-
agement ability.
After the farmer has defined his objectives he has to consider the
organization of his resources into a suitable plan. Once the plan is in
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operation the results have to be recorded. These results can be used as


a basis for control of the plan. They may suggest that modifications
are desirable.
Sometimes minor amendments to the plan are insufficient to en-
able the business to comply with the objectives. It may then be neces-
sary to undertake a complete re-planning exercise for the whole farm.
In practice most of the above processes are going on at the same
time and are closely interrelated. These processes are applied to the
«subjects» of the management, capital, land, labour, crop, stock and
machinery. Environmental factors, which can be physical, economic,
political, and sociological, may influence these management subjects
and the way in which the management processes are applied to them.
To run a business effectively an additional process must be added.
This involves forecasting both the performance of the management
subjects and the influence of the environment. Thus, there are five
main processes: forecasting, planning, implementation, recording,
controlling.

Exercises
1. Scan the text.

2. Find in the text all the modal verbs and modal constructions,
explain their use.

3. Find in the text answers to the following questions:


1) What is the main aim of management?
2) What are the three primary resources of every business?
3) What are the subjects of management?
4) What do we call the environmental factors?
5) How should we understand forecasting in business?

4. Find in the text one sentence which can be the key sentence of
the text. Translate it.

5. Imagine you are a manager of a big farm. What staff do you


want to have?
Use the key words: creative, well-organized, punctual, enthu-
siastic, obey the rules, keep fit.
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6. Say a few words about the duties of a farmer as a manager.


Use the following helpful words and word combinations:
to set objectives
to make important decisions
to put the plan into action
to control the resources
to deploy the capital
to allocate the capital
to develop the business
to consider the future needs
to market to best advantage
to coordinate the work
to delegate authority
to hire and fire workers

BE READY

1. Say a few words about management in agriculture.


Use for help:
1. Management is based on scientific theories and today we can
say that it is a science.
2. The main functions of management are … .
3. ……….. are the processes of management.
4. The subject of management is … .
5. The biological nature of farming makes it a business which
cannot be run by … .
6. Good managers can distinguish themselves by their ability … .

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LESSON 4

Compare the words

business – work – job – duty


business – 1) the work of buying and selling products or services
for money; 2)an organization that buys or sells products or services
for money; 3) something that you have to deal with.
work – 1) to spend time doing smth.; 2) to have a job; 3) to op-
erate in a satisfactory way; 4) to succeed; 5)to move gradually from
one position to another; 6) to shape a substance such as metal in a
particular way, especially using tools; 7) to prepare land and grow
crops on it.
job – 1) work that you do regularly to earn money; 2) something
that you have to do or deal with; 3) (singular) your duty in a particu-
lar situation or organization; 4) (informal) a crime (of stolen money);
something that a computer, printer etc. does.
duty – 1) legal or moral obligation; 2) a tax that you must pay
on something you buy.

Task 1. Translate the sentences.


1) He has a duty under the terms of his contract to pay rent.
2) He was too unwell to carry out his administrative duties. 3) Who is
on duty today? 4) I found them very easy to do business with.
5) We’re hoping that business will improve this year. 6) We’ve still
got some unfinished business to settle. 7) It’s my business who I go
out with. 8) Sheryl’s parents run a small clothing business. 9) What is
your job? 10) She has a job as a restaurant manager. 11) The first job
is to decide who to invite. 12) The car industry has faced massive job
losses. 13) The new venture will create over 1500 jobs in the area.
14) There are not many job opportunities in this part of the country.
15) I’ve been working in the garden all day. 16) Our thanks go to eve-
rybody who has worked on this project. 17) She worked as a journal-
ist. 18) The new telephone system seems to be working perfectly.
19) If this plan doesn’t work, we’ll think of something else. 20) Criti-
cizing your former employer works against you in an interview.
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21) He was slowly working himself into a panic. 22) A working in-
dustry is developing.

Task 2. Match the words with their definitions.

A businessman 1) having a lot of things to


(woman) do; 2) full of people
a special area for offices and
Busy
small factories
a formal suit that someone
A business card
wears for work
a man (woman) who works
A business plan
in business
Business class to stop doing business
a small card that has
a person’s name on it,
Business day
means as well as telephone number,
is e-mail, etc.
a document that gives
To run a business details of a company’s plans
for future
A business suit to have a business
to start a business or to join
A business park
to smb’s business
a part of a plane that is more
comfortable and has better
To go into business
service than the part where
most people sit
To go out of business a working day

Introduction Text
The Office
When we see or hear the word «business», however, we think
first of all not of different shops, factories, or mines, but of offices.
Modern business is done chiefly there, and a day of a modern business

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is a day spent at an office. That is probably why business people pay


so much attention to the way their offices look like.
I am sure you can easily imagine this place.
Usually it is situated in a large or not very large well-planned
building somewhere in the centre or in a prestige district of the city.
How large the office itself is depends on the dimensions of the firm,
which the businessman owns. But in any case it should be light and
clean and have not necessary very chic and expensive but comfortable
furniture of good quality. One more very important thing is the air. It
should always be fresh and neither hot nor cold. For this purpose a lot
of modern businessmen use various types of air-conditioners.
Office work usually means different forms of communication. A
businessman often needs to speak to other people and he can do this
by using the telephone, which is an important part of the communica-
tions system. The head of a large firm usually has two telephones on
his desk. One is a usual telephone, which connects the businessman
with other people in the town and in other countries. But the other one
is connected to a private internal system and this makes it possible for
members of the staff in different parts of the same building to talk to
one another without leaving their rooms.
A businessman also communicates by writing. But he doesn’t
write his letters himself, he dictates them to his secretary, usually a
woman, who types them on a typewriter or with the help of a comput-
er, and then takes them to be signed.
After that she posts all the letters or sends them using fax. Thus
we can say for sure that different technical means and equipment like
personal computer, fax, xerox, and printer occupy a considerable part
of the office interior.
And of course speaking about offices of any kind we shouldn’t
forget the person, who actually organizes the work there, who ar-
ranges meetings, makes appointments, cancels them, does most of the
paper work and answers telephone calls thus helping her boss in his
business.

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Exercises

1. Listen to the text and read it correctly. Translate it.

2. Answer the questions.


1) Why do business people pay so much attention to the way
their offices look like?
2) Where is it usually situated?
3) What do the dimensions of the office depend on?
4) What should be done concerning the air (the furniture) in the
office?
5) Does office work mean different forms of communication?
Why?
6) Who is a secretary?
7) What duties does a secretary fulfill?

3. Make up a) word combinations with the following verbs:


to communicate, to dictate, to type, to sign, to post, to send, to occupy,
to organize, to arrange, to appoint, to make (appointments), to cancel,
to answer.
b) sentences with them. Begin with: Boss usually …
A secretary usually …
4. Translate the sentences using the words:
Be situated – Большинство офисов находится, как правило, в
центре города.
Depend on (upon) – Оплата за доставку зависит от расстояния.
Equipment – Какое оборудование нужно закупить прежде
всего?
Appointment – Вы уже договорились о встрече?
Means – В офисе много различных средств связи.

5. Fill in the blanks with prepositions.


1) Offices are usually situated … a large well-planned building
somewhere … the centre … the city. 2) We are thinking … our new
business. 3) How large the office itself is depends … the dimensions
… the firm. 4) John’s father is the head … the firm. 5) The secretary
types letters … a typewriter or … the help … a computer. 6) A busi-
nessman often needs to speak … to other people and he can do this …
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using the telephone. 7) Different technical means and equipment oc-


cupy a considerable part … the office interior.

6. Using the picture describe your future office. Follow the struc-
ture:
I Location
II Building
III Interior

Grammar Revision

Subordinate Clauses

Exercises

1. Read and translate the sentences (Subjective clauses).


1) That our firm has branches in all European countries is a well-
known fact. 2) That it is possible to convert heat to energy and energy
back to heat can be demonstrated in a number of ways. 3) What you
will say at the meeting, will influence our future contracts. 4) Who
told you about his plans could not know them. 5) What great changes
will take place in our economy is a matter of future. 6) Where we shall
go in summer depends on your interests. 7) What prices on milk will
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be depends on a number of natural factors. 8) How large the office it-


self is depends on the dimensions of the firm.

2. Read and translate the sentences (Objective clauses)

1) He says that he has never been to London. 2) They say that


they did business with that firm last year. 3) I don’t know how long he
has lived in Moscow. 4) He doesn’t know what film is on at the cine-
ma. 5) I’m afraid I can’t tell you about it now. 6) I believe you have
had a good time there. 7) Please, let us know at what price you can
sell us the equipment. 8) I don’t know if she has filled in the declara-
tion. 9) We didn’t know whether they had come back from abroad.

3. Finish up the sentences.


1) I must say that … (to phone, at half past ten). 2) My friend
knows that … (to sell equipment, last week). 3) Some of our farmers
say that … (to go out of business, in future). 4) We’d like to tell you
that … (the furniture, to be, not very expensive, but comfortable). 5) I
hope that we … (to sign a contract, next week).

4. Use «what» or «that».


1) The secretary said … the president had signed the contract.
2) She asked me … prices on wheat will be. 3) I told him … I must
buy. 4) I told him … he must get ready for the talks. 5) The Customs
official told us … goods are duty free. 6) I don’t know … are the rea-
sons for canceling the appointment. 7) I am sure … you can easily
find our office. 8) I heard … he had gone on business. 9) Did you hear
… I said?

5. Read and translate the sentences (Relative clauses).


1) The man who lives next door is our sales manager. 2) I don’t
like stories that have unhappy endings. 3) Gerry works for a company
that makes typewriters. 4) Everything that happened was my fault.
5) Where is the draft variant of the contract which was on my table?
6) The man who (whom) I wanted to see was away on holiday.
7) Have you find the key that you lost? 8) The reason why I’m phon-
ing you is to invite you to a party.

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6. Read and translate the sentences (Conditional and time claus-


es).
1) The firm will reduce their prices if we buy 10 more machines
from them. 2) We’ll be able to discuss the prices with them after we
study their quotation. 3) As soon as I contact my people I’ll let you
know our final reply. 4) The representatives of the firm will not miss
the opportunity of visiting our exhibition before they leave Moscow.
5) I’ll go through catalogues while you’re speaking to the engineers.
6) We shan’t sign the contract until we check all the points. 7) If it
rains tomorrow we shan’t go to the country. 8) When he came to the
office the next day, he had a word with the director. 9) Work is done
when a force is acting over a distance. 10) I always took part in the
discussions unless I was busy.

Word-building

1. Define the part of speech.


Direction, important, officer, importance, meaningless, meaning-
ful, breakage, depth, strengthen, difference, different, to differ, hardly,
hardness, useful, usefulness, useless, foundation, depth, development,
effective, entirely, numerous, purify, central, operator, printer, lectur-
er, thickness.

Conversion
2. Translate the pairs of words formed by conversion.
air – to air, function – to function, influence – to influence, cancel – to
cancel, end – to end, place – to place, slow – to slow, better – to bet-
ter, supply – to supply, demand – to demand

3. Define the part of speech.


her name – we name; he marks – his marks; the order – they order;
this results (in) – these results; a great deal of – they deal with; the last
lectures – the lectures last.

Useful Words and Word Combinations

adhesive tape – клейкая лента


appointment – деловая встреча
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arrange – устроить, договориться


arrange for smb. to do smth. – договориться, чтобы кто-либо
сделал что-либо
arrange to do smth. – договориться, чтобы сделать что-либо
ball-point pen – шариковая ручка
be situated – находиться, располагаться
branch – филиал
built-in closet – встроенный шкаф
call – звонок, звонить
cancel appointment – отменить встречу
сhic – шикарный
сome to an agreement – прийти к соглашению
detain – задерживать
dimensions – размеры, величина
discuss the matter – обсуждать вопрос
domain – область, сфера
drawing pin – кнопка
engagement – 1) дело; 2) встреча
exacting – требовательный
fair and righteous – честный и справедливый
file – дело, подшивка, картотека
file cabinet – шкаф для бумаг
firm – фирма
first-aid kit – аптечка
get smth. ready – подготовить что-либо
glue-pot – пузырек с клеем
have an appointment – иметь деловую встречу
head – глава, руководитель
headed notepaper – фирменный бланк
hold the line (or: hold on) – не вешать трубку
hole punch – дырокол
in- and out-trays – тележки для почты
intercom – внутренняя связь
interior – интерьер, обстановка
internal – внутренний
keep appointment – прийти на деловую встречу
keep in order – содержать в порядке
know one’s whereabouts – знать местонахождение
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make an appointment – назначить встречу


memo pad – записная книжка
mess – беспорядок
message – сообщение (устное, письменное)
own – владеть
paper clip – скрепка
paper work – канцелярская работа
pay attention to – обращать внимание
plain paper – обычная бумага
prestige – престижный
private – частный, личный
punctual – пунктуальный
run out of smth. – кончаться, иссякать
show smb. Round – сопровождать кого-либо при осмотре
sign – подписать; (signature – подпись)
speak on the phone – разговаривать по телефону
staff – служебный персонал
stapling machine – скоросшиватель
stationery – канцелярские принадлежности
straight away – прямо сейчас
technical means of equipment – оргтехника
top drawer – верхний ящик
typewriter – пишущая машинка

Exercises

1. Sort out the following words and fill in the chart:


memo pad, file, in and out-trays, file cabinet, built-in closet, uphols-
tered, desk, drawing pin, paper clip, computer, hole punch, headed
notepaper, glue pot, scissors, fax, xerox, modem, whiteboard, waste-
paper basket.

Office furniture
Equipment
Stationery and other things

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2. Make up word combinations.

to make … (with)
to have
to cancel an (the) appointment
to change
to confirm

3. Translate the sentences.


1) Read your list of appointments for the rest of the week.
2) When you change the appointments, note the changes on your sche-
dule. 3) I was detained. 4) The personnel manager was most informa-
tive, so I know my whereabouts now. 5) Here is the drawer for your
ball-point pens, boxes of drawing pins and paper clips, small and large;
there is a stapling machine and a hole punch too. 6) You ought to keep
envelops, headed notepaper, plain paper, stationery, glue pots, adhesive
tapes, different packing tapes and airmail stickers in that built-in closet.
7) My boss is fair and righteous. 8) Different technical means and
equipment like personal computer, fax, xerox, and printer occupy a
considerable part of the office interior. 9) It is a small hospital with a
staff of just over a hundred. 10) We are running out of petrol.

2. Fill in the chart with advice on what a good secretary should


and should not do on her (his) job.

DO DON’T
be punctual be late
… …

Reading

Dialogue A
First Day at Work

Situation: Paula comes to work on Monday morning. Joel Klaus, the


Personnel Manager shows her round.

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J.K.: Well, this is your domain. You’ll be the queen here. But please
be a fair and righteous queen, otherwise you may lose your domain.
P: Oh, this is a very nice room, a bit untidy, though.
J.K.: Well, no wonder. It has not been taken care of for a couple of
weeks, I suppose.
P: No secretary?
J.K.: Exactly.
P: But how did Mr. Virge manage then?
J.K.: It has been a very trying time for all of us. Mr. Virge thought he
could keep one of his daughters here, but neither of them wanted to
work here. They said they didn’t want to be bossed around.
P.: Oh dear, he mightn’t like me either.
Allan Virge: Hallo! What are you two doing here?
J.K.: May I introduce your new secretary to you, Mr Virge? Paula
Tanner – and that, Paula, is your new boss Allan Virge.
Allan V: How do you do
P: How do you do.
Allan V: You seem to be very young.
J.K.: She is young but has her qualifications already and speaks sever-
al foreign languages.
Alan V: Ah, that’s good. When will you start working?
P: Right away.
J.K.: Well … er … First I’d like to show her round so that she’d know
her whereabouts.
Alan V: All right. I’ll come back by three. Then I’d like to talk to you,
my young lady.
P: Yes, sir.
J.K.: Let’s me explain some things to you.
P: Yes, please. I’m all ears (Я вся внимание).
J.K.: On the table there are memo pads and files for Mr. Virge. And
here are in-and out-trays for incoming and outgoing mail.
P: Oh, there are two telephones here, what are they for?
J.K.: The white one is the house phone for internal calls; the other is
for external calls.
P: I see. On the home phone I get my boss, for instance.
J.K.: No, no. For your boss you have an intercom.
P: Oh, I see, so I just press the button and can talk to him, right?

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J.K.: Yes, that’s right. But soon we’ll modernize our telephone sys-
tem; one and the same telephone will be internal and external. You
just dial three numbers for an internal department and for an external
line you lift the receiver and dial 0 and wait for the dialing tone.
P: That’ll be fine.
J.K.: Here is the drawer for your ball-point pens, rulers, boxes of
drawing pins and paper clips, small and large. There is a stapling ma-
chine and a hole punch too.
P: Just everything I need.
J.K.: Here is another drawer with all sorts of files. Well, and in the top
drawer there are two telephone directories, one of them containing our
home phones.
P: I’ll put them on the table.
J.K.: If I were you, I’d put them away when I leave the place.
P: Oh, there is an empty drawer too.
J.K.: That’s for your personal things.
P: How nice! May I bring also some potted flowers to make the room
look more friendly and personal?
J.K.: By all means. Well, there is a file cabinet. You’ll have to ex-
amine it and find out what’s where.
P: Well, I’ll do it very soon.
J.K.: Here, in that built-in closet there ought to be envelopes, headed
notepaper, plain paper (обычная писчая бумага), stationery, typewri-
ter ribbons, glue-pots, adhesive tapes, different packing tapes and air-
mail stickers.
P: Well, there’s even a first-aid box, bandages, plasters and scissors
there.
J.K.: Here is a closet with a few hangers for your clothes.
P: Thank you very much.

Exercises

1. Listen and act out the dialogue.

2. Answer the questions.


1) What time does Paula go to work on her first day?
2) Who shows her round the place?
3) What information does she get about her boss?
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4) Why did the former secretary lose her job?


5) Why is the secretary’s room untidy?
6) What are the in- and out-trays for?
7) What are the two telephones for?
8) What do the drawers of Paula’s desk contain?
9) What is there in the cabinet?

3. Translate the following:


Вот ваши владения; несколько недель; командовать кем-то
(быть под давлением); Прямо сейчас; поднять трубку; Как раз
все, что мне нужно; Я бы на вашем месте …; чтобы комната вы-
глядела более гостеприимной и не такой официальной; Непре-
менно.

4. In pairs, try and remember as many office suppliers as you can.


Name at least five of them and tell your partner what they are
used for.

5. Imagine that you’re Paula and describe your first impressions


about your new job.
Use the words: to be nice and understanding; to pay greater at-
tention to; to star on Monday; it seems to be a very big firm; just an
ordinary room; I have the feeling that …; We’ll live and see (Пожи-
вем увидим).

Telephone Calls

Useful words and phrases

Dial the number – Наберите номер


Could (may) I speak to …, please? – Могу ли я поговорить с

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Hold the line. Putting you through. – Не вешайте трубку. Со-


единяю.
Can I help you? – Чем могу помочь?
Can I tell him (her) who’s calling? – Могу ли я узнать кто ему
(ей) звонит? (дословно: сказать ему, кто звонит).
I am afraid Mr (Mrs) Black is… on other line at the moment.
not in the office at the moment.
away on vacation.
is busy.
Боюсь, что мистер … говорит по другой линии; отсутствует;
уехал в отпуск; занят.
Would you like to leave any message for him? – Оставьте, по-
жалуйста сообщение.
Could you ask him to call me back? – Не могли бы Вы попро-
сить его перезвонить мне?
Sorry, it’s a bad line. Could you speak up? – Извините, плохая
связь. Пожалуйста говорите громче.

Task 1. Listen to the dialogue and insert the words listed below.
leave, may, number, message, say, 943 8671

Dialogue
Receptionist: New Age Travel Agent’s. How can I help you?
Caller: Good morning. (1)… I speak to Brian Hawkins, please?
Receptionist: I’m afraid he’s not in the office today.
Caller: Oh, can I (2)… a message?
Receptionist: Yes, of course.
Caller: Can you (3)… that Jack Phillips phoned, and ask him
to call me?
Receptionist: Does he have your (4)…?
Caller: I think so, but it’s (5)… .
Receptionist: Thank you. I’ll give him your (6)…
Caller: Thank you very much. Bye.
Receptionist: Goodbye.

Task 2. In pairs, act out and translate the dialogue.

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Task 3. In pairs, act out a dialogue of your own. The situation:


You want to call your contact to confirm the arrangement (ap-
pointment).
Use: This is (your name). I’m ringing to confirm our meeting
tomorrow. As we arranged. Good. I look forward to seeing you.

BE READY

1. Make up 1) a set of rules for secretaries


2) telephone rules

2. Show your new colleague round the office (make a presenta-


tion).

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LESSON 5

Compare the words


profession – post – career
profession – a job that you need special skills and qualifications to do,
especially one with high social status
post – a job, especially one with a lot of responsibility
career – the job someone does over a period of time

Task 1. Use the right word.


1) I am a doctor by (profession/career). 2) Choosing (a
post/career) can be a very difficult decision. 3) Women often face the
problems of combining (a career/profession) and a family. 4) She ap-
plied for the (profession/post) of Senior Marketing Manager at Cad-
bury Schweppes. 5) People in my (career/profession) have a duty to
the public.

Task 2. Make up word combinations and translate them.

political
to make
(a) glittering
promising
profession
to take up
career
to apply for
post
to go into
to obtain
the peak of
my future

Task 3. Translate the sentences.


1) Моя профессия – бухгалтер. 2) Сделать карьеру в меди-
цине не так то просто. 3) Она подала заявление на вакансию ад-
министратора гостиницы. 4) Он занимает пост главного бухгал-
тера. 5) Она сделает блестящую карьеру. 6) На пике своей карье-
ры он ушел с занимаемого поста. 7) Твоя профессия связана с
риском. 8) Майк согласился занять эту должность, но вряд ли он
надеется сделать политическую карьеру. 9) Кто вы по профессии?

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– Я – юрист, но занимаю должность начальника отдела кадров.


Это не осень перспективно в плане карьеры.

Introduction Text
Economics as a Profession

In the 19th century, economics was the hobby of gentlemen of


leisure and the vocation of a few academicians; economists wrote
about economic policy but were rarely consulted by legislatures be-
fore decisions were made. Today, there is hardly a government, inter-
national agency, or large corporation that does not have its resident
economist. Clearly, much depends on how one defines the job of an
economist. According to the list of National Science Foundation, of
11,000 professional economists, about 4,500 were employed as teach-
ers of economics; the rest worked in various research or advisory ca-
pacities, either for themselves, for industry, or for government. This
leaves out of account many others employed in accounting, com-
merce, marketing, and business administration; they may think of
themselves as economists, but their professional expertise falls within
their fields. There are perhaps another 10,000 economists in the rest of
the world – their numbers have never been counted. It would be rea-
sonable to estimate the total number of professional economists was
growing at about 5 per cent per year. There were about 75 English-
language journals in economics and another 25 in various foreign lan-
guages, with few ones appearing every year. This implies the publica-
tion of about 1,500 scientific papers per year, not to mention the 700
new books on economics published every year. This is indeed «the
age of economists», and the demand for their services seems ongoing.

Exercises
1. Scan the text.

2. Which of the sentences do not render the information of the


text?
a) People work at jobs to earn money.
b) Nowadays, the profession of economist is acquiring much im-
portance.
c) A lot of publications are devoted to the economic science.
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d) In the 19th century legislatures helped economists to make


economic decisions.
e) People can order goods and services they want by mail or us-
ing their computer shops on the Internet.
f) A lot of practical economists are employed in accounting,
commerce, marketing, and business administration.
g) The corporation has employed another 10,000 economists.
 3. In pairs, act out a conversation and discuss the questions:
Why did you choose this profession? What do you want in your
professional life? What personal characteristics do you possess to be-
come a good specialist? Do you want to work in a bank, firm or run
your own business?
Use the speech patterns:
– Really? (Правда? Неужели?)
– I wonder (Мне хотелось бы знать)
– What about …? (Как насчет …?)
– I suppose. (Полагаю.)
– to stand competition (выдерживать конкуренцию)

Grammar Revision

Subjunctive Mood

Exercises

1. Translate the sentences. (Conditional sentences II)


1) If I were you I should put off the appointment. 2) He would
do the job if he had time. 3) What would you do if your boss delegated
his authorities to you during his business trip? 4) They wouldn’t miss
the train if they started for the station right away. 5) If we had time we
could go sightseeing tomorrow morning. 6) If I were you I should
grant their request. 7) If I knew this fact I could prepare more de-
tailed report.

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2. Make up sentences.

get away to the country


should let him do the job
If I were you I
would insist on the price
have a rest
show you the project
he take a few more pictures
If you asked him
she would offer you a suitable job
(her, them)
they join us
inform you of the matter

3. Translate the sentences (Conditional clause III).


1) I should have called on him yesterday if I had known of his
arrival. 2) If I hadn’t been told his name I should never have recog-
nized him. 3) You wouldn’t have caught cold if you had had your
coat on. 4) If you had taken the medicine yesterday the temperature
would have gone down. 5) If he had not helped us yesterday the
project would not have been completed. 6) The firm would not have
reduced their prices if they had not been much higher than the world
prices. 7) I could have found out all the particulars if you had asked
me to.

4. Turn conditional sentences of type II into sentences of type III.


Model: The theatre would be packed if the audience liked the
performance. – The theatre would have been packed if the audience
had liked the performance.
1) He would get to the museum quicker if he went straight
ahead. 2) He could draw up the contract if you asked him to. 3) If it
stopped drizzling we could go out. 4) I should go down to the country
if it kept fine. 5) If she read a lot she would make good progress in
her studies.

5. Translate the sentences.


1) Если бы он не устал так сильно в воскресенье, он бы
приехал к вам. 2) Если бы ты согласился на их условия, они бы
приняли тебя на работу. 3) Если ты правильно заполнил бланк,
проблем не будет. 4) Если бы не отвратительная погода, дети

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смогли бы погулять утром. 5) На Вашем месте, я бы уволила та-


кого работника.

Word-building

1. Translate the international words. Compare their meaning in


Russian and in English. Do they always coincide?
Plus, line, position, magazine, production, start, figure, data,
record, ton, transportation, method, storage, processing, monetary,
barter, mode, privatization, budget, blank, interest (rate), voyage,
marketing, deficit, negative, balance, technical, export, industrial,
agrarian, mining, management, tendency, resources, artist, predator,
familiar, machine, master.

2. Read and translate the pairs of words.


Wish – to wish; interest – to be interested; supply – to supply;
guarantee – to guarantee; dispatch – to dispatch; information – to in-
form; consideration – to consider; negotiation – to negotiate; produc-
tion – to produce; addition – to add; application – to apply

Useful Words and Word Combinations

advertisement – объявление
agency – агентство
apply – 1) применять; 2) обращаться (for) за работой
apply for the post – подать заявление о принятии на долж-
ность
be admitted – быть принятым, поступить
be on probation – быть на испытательном сроке
career – карьера
come to a standstill – изжить себя
competence – способность, умение, компетентность
curriculum vitae [kə΄rikjuləm΄vi:tai] – сведения об учебе и тру-
довой деятельности
enclose – прилагать (к письму, документам)
experience – опыт
foundations of planning – основы планирования
full time – полный рабочий день
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hold a current driving license – иметь водительские права


legislature [´leʤisleiʧə]– законодательная власть, официаль-
ный орган
leisure – досуг, свободное время
master – 1) хозяин; 2) овладеть
previous – предыдущий
sense of responsibility – чувство ответственности
skills – навыки
shop – цех
starting salary – начальная заработная плата
team – бригада
technically well-grounded norms of labour – технически обос-
нованные нормы труда

Exercises

1. Make up word combinations.

previous salary
to master experience
starting license
driving a qualification
2. Make up word combinations according to the formula: verb +
+ (preposition) noun.
Use the verbs: to obtain, to master, to apply, to hold, to get, to
enclose, to make.

3. Translate the sentences.


1) The old economic mechanism came to a standstill. 2) I ha-
ven’t previous office experience, but I am willing to try and learn
quickly. 3) I have seen your advertisement on TV and I would like to
apply for the post. 4) The starting salary is not big, but there are good
promotion prospects for a career. 5) Do you hold a current driving li-
cense? 6) Here are my curriculum vitae. 7) Economists determine
technically well-grounded norms of labour. 8) If you can’t take me on
as a secretary, I could be on probation for a time first. 9) The old eco-
nomic mechanism came to a standstill.
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4. Guess the meaning of the phrases and make up sentences of


your own with them.
to apply for a job – to make an official request for a job;
to get a job – to have a job, to be employed by smb.;
to offer smb. a job – to let someone know that you will give them a job
if they want it;
to take a job – to accept a job;
to be in a job – to have a particular job
good job = well done
to work for smb. – to be employed by smb.;
to work off – to pay someone what you owe them by doing a job for
them instead of giving them money
to work on – to spend time producing or improving something;
to work out – to solve a problem by doing a calculation
to work up – to develop a particular feeling

Getting the Job

Work History

Of course, one of the most important indicators of how well you


will fit into a new company is your work history. Here are some po-
tential work history questions:
 Basic information regarding names of company, dates of
employment and reasons for leaving;
 Accomplishments and failures from previous employment;
 Previous work responsibilities. How well did you handle
these responsibilities?

Personality Questions

 Tell me about yourself.


 Why do you want to work here?
 Why did you leave your last job?
 What are your best skills? (Какими навыками Вы обладаете?)
 What is your major weakness? (У Вас есть слабые места?)
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 Do you prefer to work by yourself or with others?


 What salary are you expecting?
 What are your career goals?

Task 1 In pairs, act out a conversation using pictures and infor-


mation above.

Task 2. Read and translate the letter. Choose the proper definition
for it: covering letter, customs declaration, invoice, application
letter, letter of credit, contract.

Personnel ManagerWoodex
20/54 Tartu Road 30th August 2000
EE3002 KEILA
Dear Sirs
I have seen your davertisement for a secretary in the “Estonian Express” and I would
like to apply for the post. I have left secondary school where I obtained my knowledge
of secretarial work. I enclose an outline of my qualifications. I have no previous office
experience but I am willing to try and learn quickly.
Yours faithfully P Tanner

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Task 3. Fill in the form.

Text A
My Future Profession

After leaving school I passed entrance examinations and was


admitted to Penza state agricultural academy. Now I am a second-year
student of the faculty of economics. My future profession is an econ-

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omist of agricultural production. It seems to me that it is the most in-


teresting and important occupation.
The economy of our country needs specialists with good know-
ledge of principles of modern production and management. That is
why it is necessary for us to work hard and study lots of different sub-
jects. To master my speciality I study mathematics, descriptive eco-
nomics, book-keeping, the foundations of planning and management
of agricultural enterprises.
Efficiency of an enterprise depends on the economic system. To
impose new forms of economic management an economist of agricul-
tural production must be an expert in all spheres of production.
Economists analyze economic activity of teams, shops and en-
terprises. Through such an analysis they determine technically well-
grounded norms of labour. Economists of agricultural production de-
termine the forms of production, its volume and structure. To obtain
the least possible expenditures of labour economists must put into
practice progressive methods of labour organization.
Nowadays, with the changes which are taking place in the pro-
duction relations economists of agricultural production play very im-
portant part. The old economic mechanism came to a standstill and the
old system of planning became absolutely inadequate. Major political
decisions concerning economic reform have been adopted. At present
different forms of property have full legal status. The relations be-
tween a peasant and the state are being regulated at long last.
Farmers get land for ownership and lease. Crop farmers get in-
dependence in how to farm the land, the right of ownership to the
products raised and to the incomes, combined with the responsibility
for the results.
Efficiency of agriculture depends on effective management of
farms, on the work by agricultural economists in improving economic
system.

Exercises
1. Read and translate the text.

2. Put questions to the sentences.


1) Nowadays a lot of changes are taking place in the production
relations. (What changes)
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2) Efficiency of an enterprise depends on the economic system.


(What … on)
3) The old economic mechanism came to a standstill. (Yes/No)
4) Economists analyze economic activity of labour organiza-
tions. (Who)
5) An economist of agricultural production must be an expert in
all spheres of production. (Why)
6) Major political decisions have been adopted. (Yes/No)
7) Different forms of property have full legal status. (What
forms)

3. Find in the text the words which mean the following:


 Someone who has a particular skill or knows a lot about a
particular subject is ...
 The job of recording an organization’s financial accounts is …
 The use of time, money, energy etc doing something is …
 Legal possession of something is …
 A legal contract in which you agree to pay to use someone
else’s building, land or equipment for a specific period of time is …

4. Answer the following questions:


1) What is your future profession?
2) What do you think about your future occupation?
3) What subjects do you study?
4) Do you work hard?
5) What subjects are the most difficult for you?
6) Are agricultural enterprises efficient now?
7) What are the most efficient enterprises in your region?
8) Are new forms of economic management imposed there?
9) What do economists of these enterprises deal with?
10) What changes are taking place in agricultural enterprises?
11) What forms of property exist there?
12) What tasks do you see before you?

5. Finish up the following sentences.


1) After leaving school I …
2) Now I …
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3) To master my speciality I …
4) Efficiency of …
5) Economists analyze …, and they determine …
6) … must put into practice …
7) Nowadays …
8) Different forms of property …
9) Farmers get land …
10) Efficiency …

6. Retell the text.

Job Descriptions

Task: Match the jobs with their descriptions.

1 Managing director A He makes the product which


2 Secretary company sells.
3 Finance director B He buys all the things that the
4 Chief accountant company needs.
5 Purchasing manager C His (her) job is to make sure
6 Director of research and develop- that the company has a good
ment image.
7 Production manager D His (her) job is to find and tests
8 Marketing director new products.
9 Sales director E She types letters, files papers,
10 Public relations manager makes appointments for the
boss.
F He (she) has general responsi-
bility for the whole company.
G His (her) is to make sure that
the company produces the
goods which people want to
buy.
H He (she) does the books and
prepares the balance sheets
I He (she) is in charge of people
who sell the products.
J He (she) looks after the
company’s money.

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Text B
Is Entrepreneurship for you?

Factors you need to consider are your background, and personal


resources, your knowledge of people and their needs and desires, and
your general attitude toward business and life.
One important area over which you have no control is your own
personality and background. Is there such thing as an entrepreneurial
personality? It seems so. Certain traits of character (черты характера)
and background occur over and over again in successful entrepre-
neurs.
Business Week found, for example, that most come from homes
where at least one parent was self-employed. Most showed entrepre-
neurial instincts very early. Nearly two-thirds were the eldest child in
the family; three quarters are married; half started a business because
they dislike working for others.
Staying within a field of expertise increases chances for success.
So does sales experience; salesmanship is part of any business – retail,
wholesale, or manufacturing.

Exercises

1. Scan the text.

2. What new information have you got? Is it interesting?

3. Answer the question: «Is entrepreneurship for you?»

4. Name at least four traits of your character which can help you
to be a businessman. Name those which are not helpful in running
your own business. Discuss these questions with the group. (Ask
your students’ opinion)

BE READY

 Write a composition. The topics:


1. I run my own business.
2. The role of economists in agricultural production.
3. I work in a firm.
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LESSON 6

Compare the words:


Correspondence - letter - message

Correspondence is the process of writing and receiving letters.


Letter is a piece of paper that you write a message on and send to
someone.
Message is a piece of written or spoken information that you send to
someone, especially when you cannot speak to them directly

Task 1. Read and translate the following sentences, pay attention


to the meaning of the words «correspondence», «letter», «mes-
sage».
1. There is a message for you here from Kimberly. 2. She is not
here at the moment, can I take a message. 3. She kept up a thirty-year
correspondence with Mary Hays. 4. Here is the file where he kept his
personal correspondence. 5. I get letters from them every week. 6. I
send them a letter of thanks. 7. Most of the soldiers write long letters
home.

Introduction Text

Letter Writing
Letter writing is an essential part of business communication. A
check, a contract or any other business paper sent by mail should al-
ways be accompanied by a letter.
Writing business letters in English is very much like writing let-
ters in your own language. The letter reflects the image of your firm.
You should keep in mind that a letter should be clear, complete, con-
cise, courteous and correct (the five C’s), meaning that the letter
should be polite, clear, brief, ended and without mistakes. British
usage is far more polite than any other, as is shown in expressions like
Please let us know your terms…
We are pleased to inform you that …
We are looking forward to your early reply.

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When you are writing a letter, it is a good idea to make a list of


the things you want to say, and to make sure that they are in right or-
der. Many letters have only three paragraphs: the introductory para-
graph indicating what the letter is about, the main paragraph, i.e. the
body of the letter, expressing the idea of the message, and the final pa-
ragraph, which explains what information or action you expect from
your correspondent.

Exercises

1. Do you often write letters? Have you a good habit of letter


writing?
2. Is it important for businessman to have a good knowledge of
letter writing? Why?
3. Listen to the text, and see if you answers correspond to its con-
tents or not. Listen for the second time following the tapescript.
4. Answer the questions to the text:
1. What business papers are mentioned in the text?
2. What are the requirements to letters?
3. How can you prove that Englishmen are very polite in letter
writing?
4. What advices should you follow in letter writing?
5. What are the three main paragraphs of the most letters?

Grammar Revision

1. Read this letter from Maurice , who is on holiday in Britain, to


his sister Sally in New Zealand. Put the verbs in a suitable tense,
active or passive.

Dear Sally,
How are you? We've been having a lovely time. We're being
very well looked after by our hosts. We … … (take) sightseeing and
we … … (introduce) to some of their friends, who … … (make) us
feel very welcome. Last night we … … (show) round a castle, by the
owner! Most of the land in this area … … (belong) to his family for
about five hundred years. Apparently, the land … … (give) to them

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after one of his ancestors …(kill) while trying to save the king's life.
Quite romantic, isn't it?
The castle itself was a little bit disappointing, to be absolutely
honest. The owner told us that … … (suffer) serious damage a fire
about thirty years ago. When it … … (restore) they … … (add) central
heating and things like that. So once you're inside it … … (not feel)
much different to any other large, old house. But the owner is a real
character. He told us lots of stories about things that … … (happen) to
him when he was young. He … … (send) abroad to work in a bank,
but he hated it, so he … … (behave) very badly in order to … …
(sack-уволить). He kept us laughing for hours. I hope he … … (in-
vite) here before we leave.
I'll have lots more to tell you when we get back. Take care.
Yours affectionately,
Maurice

Task 2. Does this letter meet the requirements mentioned in the


introductory text? How many paragraphs are there in the text?

Task 3.What kind of letter is it?


a) private
b) business

Useful Words and Word Combinations

addressee - адресат получатель


address - адрес
recipient - получатель
body of the letter - основной текст письма
salutation - приветствие
paragraph - абзац, отступ (в тексте)
«reference» Ref - ссылка, сноска
«reference» Re - тема, характер письма
complimentary clause - заключительная формула
вежливости
signature - подпись
marital status - семейное положение
on behalf of - от лица, от имени
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enclosure - вложение (документа)


leaflet - листовка, тонкая брошюра
bill of lading - накладная, коносамент
insurance certificate - страховое свидетельство
трудный для чтения
memorandum (memo) - служебная записка,
докладная записка
quotation - предложение, оферта; цена
order confirmation - подтверждение заказа
order acknowledgement - подтверждение получения
заказа
invoice - счет-фактура
collection letter - инкассовое поручение
status inquiry - запрос о финансовом
положении фирмы
testimonial - характеристика (письменная);
рекомендательное письмо
condolence - соболезнование

Exercises

1. Read the list of words. Divide the words according to the topics.

Structural parts of a letter Kinds of letters


Salutation,…………………… Inquiries,………………….

2. Match the word with its meaning:


1. addressee a) страховое свидетельство
2. marital status b) накладная
3. on behalf of c) тонкая брошюра
4. recipient d) вложение
5. enclosure e) от имени, от лица
6. leaflet f) семейное положение
7. bill of lading g) адресат
8. insurance certificate h) получатель

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3. Enrich your vocabulary with new words. Read and translate


the following, use a dictionary if necessary:
There are numerous types of business letters. The more often
used are : Inquiries; Replies to Inquiries; Offers and Quotations; Sales
Letters; Orders; Packing Instructions; Order Confirmations; Order
Acknowledgements; Invoices and Accounts; Collection Letters; Com-
plaints and Claims; Adjustments; Status Inquiries, etc.
In addition there are letters of a semi-private nature: Letters of
Application; Testimonials; Congratulations; Condolences; Invitations;
Hotel and Travel Bookings; «Thank you» Letters; Letters Announcing
an Arrival, etc.

4. Some types of business letters need more explanation.


Listen to it and follow the tapescript.

INQUIRIES – You send an inquiry when you wish to have


some information on a product or its sale (after you have seen the
product advertised, or displayed at a fair or exhibition, or you have on-
ly heard about it).

REPLIES TO INQUIRIES- are short letters enclosing the re-


quired catalogues and price-lists, a brochure, etc. Some «sales talk»,
such as «We are sure our high-quality products will meet your re-
quirements, and we are looking forward to your early order» is gener-
ally included.

OFFERS AND QUOTATIONS. The word «offer» refers to


orally presented offers, introductory offers, or special offers in shops.
A quotation ( in Britain sometimes called a «tender») is a reply to a
request for a quotation, and always includes information on the terms
of sale: the price, terms of payment, terms of delivery, time of deli-
very, packing, insurance, etc.

SALES LETTERS – are nothing but advertising, often used


when the seller wants to introduce a new article, to offer a special re-
duction, or to promote sales. It is an offer not based on an inquiry.

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ORDERS – are usually based on a received quotation, or on a


catalogue. In Britain it is sometimes called an indent. It is short, accu-
rate, detailed, and usually written on a printed order form.

PACKING INSTRUCTIONS – might be given in the order, or


some correspondence on the subject might be necessary.

ORDER CONFIRMATION (or a Confirmation of Order) – is


made by the buyer of the goods. For example:

Dear Sirs
We refer to our telephone conversation yesterday between
Mr…and Mr…, and we confirm our order as follows:…

Text A
The Letter

On the envelope, the order is: (1) the name of the person(s), etc.,
to whom the letter is being sent; (2) the number of the house and name
of the street or road¹; (3) the name of the town or village; (4) the name
of the country².
Addresses are often written and printed today without the full
punctuation that was usual in the past. If an abbreviation includes the
first and last letters (as in Dr. for Doctor), the period (or full stop) is
often omitted. If an abbreviation is the first part only of a word, not
including the last letter, it is usual to add a period (as in Prof. for Pro-
fessor).
After the names of some large towns, the number of the postal
district is added. Some towns (e.g. Leeds, Edinburgh) have numbers
only. London has eight districts: E., W., N.E., N.W., S.E., S.W., E.C.
(East Central), and W.C. (West Central). These are again divided (e.g.
N.W.5).

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Examples of envelope addresses:

Miss A.Green, Oxford University Press,


17a Carlyle St, Amen House
Chelsea, Warwick Square
London, E.C.3 London, S.W.3

¹ If the house has a name, this is placed on a separate line, above


the name of the street or road.
² Unnecessary if the town is large or well known.

If punctuation is used, each line of the address is followed by a


comma, except the last line. But the majority of firms now use open
punctuation, i. e. without any commas.
Communicating with people in a business context often requires
a more formal style than when writing to friends and family. Business
letters typically avoid spoken language, and include the use of full
forms instead of contractions (e. g. I am writing not I‟m writing) and a
number of set phrases, some of which are suggested below.

1. The name of the company and its address, phone, and fax de-
tails generally appear at the top of the page, together with any Internet
and email details.

2. Put the address of the recipient on the left-hand side. If you


know the name of the person and his/her title, add these above the ad-
dress too.

3. The date can appear on the left-or right-hand side of the let-