Вы находитесь на странице: 1из 98

Федеральное агентство по образованию

Государственное образовательное учреждение высшего

профессионального образования



Кафедра иностранного языка

по английскому языку
для студентов 2 курса ИНЭК

Уфа 2007

Данное учебно-методическое пособие предназначено для занятий со
студентами 2 курса ИНЭК в 3 - 4 семестре. Оно может быть использовано как
для аудиторной работы, так и для внеаудиторного чтения.
Цель учебно-методического пособия - обучение чтению, пониманию,
обсуждению текстов по экономическим специальностям. Помимо
традиционных упражнений к текстам в каждом разделе даются творческие
задания. Пособие включает также задания для развития навыков общения на
иностранном языке по различным аспектам деловой и межкультурной
коммуникации. Материалом для создания пособия послужили аутентичные
тексты, взятые с Интернет сайтов, а также учебники таких изданий как
Cambridge , Oxford и Longman.

Составители: Медведева А.В., преподаватель

Недельченко О. И., преподаватель

Рецензент Курочкина Т.А., ст.преподаватель.

© Уфимский государственный нефтяной технический университет, 2007.



I. Before reading the text learn the following the words.

effective эффективный
to speak slоwly and clearly говорить медленно и ясно
to use simple language использовать простой язык

to look for confirmation искать подтверждения

ask for просить
way of using language способ использования языка

to mean иметь в виду

to put over объяснить, довести до сведения

politeness вежливость
a tendency to avoid тенденция избегать ч-л
small talk светский разговор
unfriendly недружелюбно
to be keen on увлекаться


Many people are not very confident about using the telephone in English.
However, good preparation can make telephoning much easier and more effective.
Then, once the call begins, speak slowly and clearly and use simple language.
Check that you understand what has been said. Repeat the most important
information, look for confirmation. Ask for repetition if you think it is necessary.
Remember too that different cultures have different ways of using language.
Some speak in a very literal way so it is always quite clear what they mean. Others
are more indirect, using hints, suggestions and understatement (for example 'not very
good results' = 'absolutely disastrous') to put over their message. North America,
Scandinavia, Germany and France are 'explicit' countries, while the British have a
reputation for not making clear exactly what they mean. One reason for this seems to
be that the British use language in a more abstract way than most Americans and
continental Europeans. In Britain there are also conventions of politeness and a
tendency to avoid showing one's true feelings. For example if a Dutchman says an
idea is 'interesting’ he means that it is interesting. If an Englishman says that an idea
is 'interesting' you have to deduce from the way he says it whether he means it is a
good idea or a bad idea.

Meanwhile, for similar reasons Japanese, Russians and Arabs - 'subtle'
countries -sometimes seem vague and devious to the British. If they say an idea is
interesting it may be out of politeness.
The opposite of this is that plain speakers can seem rude and dominating to
subtle speakers, as Americans can sound to the British - or the British to the Japanese.
The British have a tendency to engage in small talk at the beginning and end of a
telephone conversation. Questions about the weather, health, business in general and
what one has been doing recently are all part of telephoning, laying a foundation for
the true purpose of the call. At the end of the call there may well be various
pleasantries: Nice talking to you, Say hello to the family (if you have met them) and
Looking forward to seeing you again soon. A sharp, brief style of talking on the
phone may appear unfriendly to a British partner. Not all nationalities are as keen on
small talk as the British!
Being aware of these differences can help in understanding people with
different cultural traditions. The difficulty on the telephone is that you cannot see the
body language to help you.

II. Answer the following questions.

1) What important things should you know before telephoning?
2) Give advice on how to use your voice and to check your understanding.
3) What does the term ‘explicit cultures’ mean? What about ‘subtle cultures’?
4) What is a small talk?
5) Which countries are considered to be ‘explicit cultures’ and ‘subtle cultures’?
6) Is it always important to be face - to - face? Can there be any difficulties on the
telephone because of this?
III. Sort out the most important information from the text and retell it.


1. How often do you meet your friends? In what way do you usually greet them?
2. Have you ever made a business call? What words did you use to begin the talk?
3. Have you ever dialed from abroad? Do you know the rules of making telephone

I. Meeting people

I. Here are the words and phrases which are commonly used when we meet
people. Read and memorize them.
1. You say "How do you do" to a person when formally introduced or when you meet
him for the first time. This formula may be used almost anytime of day. You say this

without expecting any answer but "How do you do," and do not offer to shake hands.
“Pleased to meet you” or “Glad to meet you” is also a possible variant when you
meet a person for the first time.
2. You say "Good morning" to people you know little or when your greeting is more
formal. This formula is used before lunch. To those you know well you may say
simply "Morning".
3. You say "Good afternoon" to people you do not know well between lunch time and
4. You say "Good evening" to people you do not know very well after 6 p.m. To
those you know well you may just say "Evening".
5. The proper universal informal greeting is "Hello". This formula is usually used
with the first name. You can say “Hi!” to your close friends.
After an informal or a friendly greeting often comes the question: "How are you?"
The answer is: “I’m all right, thank you” or “I’m fine, thanks”.
The usual phrase to use when you leave is "Good bye," but there are a number of
other less formal ways of parting, such as:
Cheerio! (Br.)
See you later!
See you tomorrow!
(I'll) be seeing you (soon).
So long.
Farewell. (When parting for long.)
Say "Good night" only when you leave and it is after eight o'clock at night.
Thanks and possible answers
Thank you very much. My pleasure.
Thank you. Anytime.
Thanks. You are welcome.
Don’t mention it.
It’s nothing.
Not at all

First words
Often the first words are the most difficult. Bellow are some suggestions for
“breaking the ice” (either could be said by a visitor or by the person receiving the
Would you like a cup of coffee? Sorry I’m a little early. I hope it is not
Sorry to keep you waiting. I was rather inconvenient.
tied up just now. I’m pleased to be here, after a trip like
Is it your first visit? What do you think of that.
the city? I like your office.
Isn’t it cold today? People are very helpful here. On my way
You found us without too much to meet you….

difficulty, I hope?
Did you have a good trip?
Have you been to New York before?

Ending the small talk

If this small talk continues too long, you may want to change the subject to business
matters. Here are some ways of doing it.
With someone you know well:
Let’s get down to business.
Let’s get started.
With someone you don’t know well:
Perhaps we could talk about the subject of our meeting.
Shall we talk about the reason I’m here.
II. Find the proper answers to the following sentences.
How do you do?
Glad to meet you.
Good afternoon!
Good morning!
How are you getting on?
Would you like a cup of coffee?
Thank you very much.

III. What would you say to the following people when you meet them?
a) Doctor Adler (at the surgery)
b) Louise (at an office party)
c) Mrs. Truman (at a formal dinner)
d) Edward Smith (at an in-company management seminar)
e) Mr. Martin (a Canadian customer)
f) J.C. Fisher, Jnr. (your new vice-president)

IV. What expressions would you use in the following situations? Choose one of
them and make a dialogue.
a) On a sales visit to a potential customer.
b) At a weekly planning meeting with colleagues.
c) At a meeting to obtain finance from a bank.
d) Before making a speech at an office party.

II. Phoning your contacts

I. Making a call.

A few common expressions are enough for most telephone conversations. Practise
these telephone expressions by completing the following dialogue using the words
listed below.
Switchboard: Continental Equipment. Can I help you?
You: Could I_________ __________ Mr. Wilson, please?
Switchboard: Putting you __________
Secretary: Hello, Mr. Wilson’s secretary. __________ I help you?
You: __________, can you hear me? It’s a __________ line. Could you __________
up, please?
Secretary: IS THAT BETTER? Who’s __________, please?
You: (your name) from (your company)
Secretary: Oh, hello. How nice to hear from you again. We haven’t seen you for
ages. How are you?
You: Fine, thanks. Could you__________ me___________ to Mr. Wilson, please?
Secretary: __________the line a moment. I’ll see if he’s in. I’m so sorry, I’m afraid
he isn’t in the__________ at the__________. Could you give me your __________,
and I’ll ask him to__________you__________?
You: I’m__________ 495 3840. That’s London.
Secretary: Would you like to leave any__________ for him?
You: No, thanks. Just tell him I__________.
Secretary: Certainly. Nice to hear from you again.
You: I’ll expect him to__________me this afternoon, then. Thanks.

Secretary: You’re speak bad

welcome. Goodbye. on hold secretary
number message can
office ring through
rang speaking put through
speak to moment through
call back

Note: If you do not hear or understand the other person, say: I’m sorry? or I’m sorry,
I don’t understand, could you repeat that, please? It is not polite to say: Please

II. Now make the telephone call yourself, using the words above. Try not to use
the notes.

III. It is not always possible to follow your original plans. You, or your contact,
may want to change an appointment. Study the expressions below.
To apologize, say: I’m afraid that…

I’m sorry but
Example: I’ m afraid that I can’t manage Thursday.
I’m sorry but I’m going to Boston on Friday.
To suggest another time, say: Could I suggest…?
What about…?
Could we fix another time?
Responding: That’ll be fine.
That’s OK.
No, sorry, I can’t make it then.
My diary’s rather full that day/week.
Sorry, I’ve already got an appointment at that time.

Below is a schedule for your week in Sidney. Before you leave for Sidney you
receive some telephone calls from people you are going to visit. They want to change
their appointments. You would prefer not to meet them on the day they want, suggest
a different time on the original day. Role play the dialogue.

Monday, 12 November
Morning: arrive Sydney airport 8.30 a.m.
Afternoon 3. p.m: meet Tim Brown (agent) at hotel

Tuesday, 13 November
Morning 10 a.m: Mr. Whitley

Wednesday, 14 November
Afternoon 2 p.m: Lund & Lund Associates (Mr. William Lund)

Thursday, 15 November
Afternoon 3 p. m: Jenny Kinn+colleagues (B.I.G. Distribution)

Friday, 16 November
Morning 11 a.m: Tim Brown
Afternoon: Flight 390, depart Sidney 6 p.m.

IV. Role-play the following telephone situation.

One of you is a company employee who has arranged to meet a colleague (your
partner) from one of your subsidiaries. Explain that you cannot keep the appointment,
and give a reason. Suggest an alternative time.

III. The telephone

I. This datafile gives you many of the terms and phrases commonly used in
making telephone calls.
Direct dialling.
With direct dialling, you go straight through to the number of the person you want in
the UK, and you pay in the country you’re in. All you need to know is the telephone
number in the UK, which is made up of the phone number itself, and its area code,
e.g. 0272 (area code for Bristol)
When dialling from abroad you must always omit the initial “0” of the area code. The
only other information you need is the international code for the UK which you must
dial first. This will vary from country to country.
Remember, for direct dialling you will need to know:



The phone book.

Look up their number in the phone book (or directory)
The number is unlisted.
I’ll ring Directory Enquiries for the number. (UK)
I’ll call information. (US)

The line.
He’s on the other line.
Would you like to hold the line?
The line is engaged. (UK)
The line is busy. (US)

The receiver.
Can I help you?
Putting you through.
I’m afraid he is not available at the moment.
You’re welcome.

A message pad.
Can I tell him who called?
Can I give her a message?
Could I take her number?

The dial.
Dial 123 for the correct time.
Listen for the dialling tone.
All line you have dialled are engaged. Please try later.

II. After studying the text and the datafile above, decide if the information below
is true or false.
For international code you dial: the country code + the area code + the number.
a) Directory Enquiries will put you through to the number you want.
b) Switchboard and operator are the same people.
c) The dialing tones for “ringing” and “engaged” are different.

III. Insert the missing word.

a) Look it__________in the directory.
b) He’s__________the other line.’
c) Putting you__________.
d) Listen__________the dialling tone.
e) He is not__________at the moment.
f) __________the line, please.
g) __________I help you?

IV. Choose the best answer for the phrase:

1) Can you put me through to
Mr. Romanov, please?
• Yes, they’ll come to Russia soon.
• So sorry to have troubled you.
• I’ll see if he is in the office at the

2) Isn’t that Moscow then?

•Do you know the area code?
• I’ll check again.
• No, the number has changed.

3) You asked me to confirm

the dates of arrival.
• But there is no person of that name here.
• I’ll call again later.
• Yes, let me just get a notepad to write
them down.

4) No, this isn’t the saving bank.

•Thanks, I’m glad that’s ok now
• Thanks, I can order what we need
• Sorry, I may have dialed the wrong

5) Mrs Danilova asked me to call

this morning
• You’ve got the wrong number.
• Yes, that’s the best time for them.
• Thank you.

IV. Using the words and expressions you have studied try to explain the system
of telephone dialing in our country.



I. Before reading the text find the meaning of the words below in the
dictionary. Learn them by heart
cabin staff экипаж collision столкновение
comfort комфорт to book бронировать
safety безопасность internal flight внутренний рейс
landing gear шасси boarding card посадочный талон
international международный to leave the покинуть самолет
travel полет aircraft
hijack угон emergency exit запасный выход
engine failure отказ двигателя landing посадка,
lightning strike удар молнией приземление


Every year a magazine called Executive Travel organizes a competition to find

the Airline of the Year. Travellers from all over the world are invited to vote for the
most efficient, the most punctual, the safest and the friendliest airline. The winner in
1985 was British Airways. The competition asked travellers what for them was most
important from an airline, and the results were as follows:
Punctual departures and arrivals 35 %
Attentive cabin staff 35 %
Comfort 18 %
Safety 9%
Good food and wine 3%
The competition also invited travellers to tell their most horrific stories of the
nightmare side to international travel. Replies included six hijacks, fifty-three cases
of engine failure or trouble with the landing gear, eleven lightning strikes, twenty-
three bomb scares, thirteen cases of food poisoning and two collisions with airport
Bad flying experiences begin on the ground, naturally. One American airline
managed to double-book an entire 747, but this is nothing compared to what
happened on an internal flight on a certain African airline. The flight had been
overbooked three times. The local military sorted the problem out by insisting that all
passengers with boarding cards should run round the plane twice, the fastest getting
the seats. An overbooked flight that was going from Heathrow to America gave one
traveller a bit of a shock. Dressed only in trousers, shirt and socks, he had been
allowed by the stewardess to leave the aircraft to see if he could get a colleague

aboard. He returned a few minutes later to find the 747 closed up and about to start
moving — with his shoes, wallet, passport and luggage inside. Banging frantically on
the door got him back inside. A similar event was seen by a businessman on a flight
from Bangladesh. Passengers were waiting for take-off when there was sudden
hysterical hammering on the door. At first the cabin crew paid no attention. The
hammering continued. When the door was finally opened, the pilot got in.
One frequent flier lost a certain amount of confidence when the cabin staff
asked him to sit in the lavatory during take-off, so that they could occupy the seats
nearest the emergency exit. Another lost faith in the pilot's navigational skills when
passengers were given lifeboat drill on a flight between London and Vanchester.
For nervous fliers, a journey to be avoided was one between Gatwick and
Montpellier, where the in-flight entertainment consisted of watching pieces of the
engine falling off. Another passenger was asked to hold the aircraft door closed at
take-off and landing.
Baggage is a rich source of horror stories. There was the unlucky traveller who
left Chicago in minus-23 weather. He was going to an important meeting in Dallas,
where the temperature was 80-plus. Unfortunately his suitcase had gone to LA, where
it spent the next two days. The customers he was trying to impress were more than a
little surprised to see him going round in a thick suit, heavy overcoat and fur hat.

II. Answer the following questions.

1. What for you is the most important from an airline from the list given in the text?
2. What disasters can happen on the ground, in the air and both on the ground and in
the air?
3. Why did some passengers have to run round the plane?
4. Why did a passenger and a pilot have to knock on the plane door to get in?
5. Why was the Dallas businessman inappropriately dressed?
6. Which of the stories were funny but dangerous?
III. You have just had one of the terrible experience described in the text. Tell
your partner about it. Use your imagination to add more detail.


1. How often do you travel by air, rail, underground, road and sea?
2. What do you enjoy about travelling? What don’t you enjoy?
3. What is the best/worst travel you have ever had?

I. Calling the travel agency.

I. Read the dialogue and the text below and remember the words and expressions in bold type.
Travel agency: Good morning. Can I help you?
Ken Follett: Yes, please. This is Ken Follett speaking. I’m planning to fly to
Britain next week. Are there any seats available on Wednesday?

Travel agency: Just a moment… I’ll check…year…there are a few seats left. Are
you flying alone, sir?
Ken Follett: Yes
Travel agency: What city are you going to fly to?
Ken Follett: I have to fly to London-Glasgow. What’s the price of a flight at
the moment?
Travel agency: Well, that depends. Do you want to fly first or economy class?
And how long would you like to stay?
Ken Follett: Well, I’m planning a short visit, maybe nine days or so. But I don’t
want a package tour. Just the flight economy class I suppose.
Travel agency: And when is it you’d like to leave?
Ken Follett: On the 10th of November.
Travel agency: Then I can get you an excursion ticket. That’s on Russian Airlines
and it’ll cost $695 for seven days including a return ticket.
Ken Follett: May I pay in cash?
Travel agency: Certainly, sir. Here you are. Flight PSS 722.


Tracy's next stop was at the New Orleans Holiday Travel Agency. The young woman
behind the desk asked, "May I help you?"
"I'm Joseph Romano's secretary. Mr Romano would like to make a reservation for
Rio de Janeiro. He wants to leave this Friday."
"Will that be one ticket?"
"Yes. First class. An aisle seat. Smoking, please."
"Round trip?"
The travel agent turned to her desk computer. In a few seconds, she said, "We're all
set. One first-class seat on Pan American's Flight seven twenty-eight, leaving at six-
thirty p.m. on Friday, with a short stopover in Miami."
"He'll be very pleased," Tracy assured the woman.
"That will be nineteen hundred and twenty-nine dollars. Will that be cash or
"Mr Romano always pays cash. Could you have the ticket delivered to his office on
Thursday, please?"
"We could have it delivered tomorrow, if you like."
"No. Mr Romano won't be there tomorrow. Would you make it Thursday at eleven
"Yes. That will be fine. And the address?"
"Mr Joseph Romano, Two-seventeen Poydras Street, Suite four-zero-eight."
The woman made a note of it. "Very well. I'll see that it's delivered
Thursday morning."
"Eleven sharp," Tracy said. "Thank you."

I. You are in London and you want to buy a ticket for Glasgow. Complete the dialogue.
Travel agent: Good afternoon. Can I help you?
You: …………………………………..
Travel agent: Let me see . . . I am very sorry, sir. There are no seats left for
Glasgow on Monday.
You: …………………………………..
Travel agent: Just a minute, sir …Yes. There are some seats left for Sunday.
You: …………………………………..
Travel agent: It’s 165 pounds, sir, including airport taxes. Here you are.
You: …………………………………..

I.Role-play the following situation.

You have a reservation for tomorrow for Los Angeles. Something urgent has
happened and you have to change your booking. Make the telephone
conversation with the travel agency.

II. On the plane.

I. If you want something or want to stop someone, say: Excuse me, . . To ask for
something, say: May I . . . ? (very polite) Could I . . . ? (polite). Ask for the things on
the plane using the picture.

III. At the airport.

I. Learn the words you may need for your flight.

package tour

book a seat, a flight
first-class ticket
business class ticket
economy class ticket

departure board
international/domestic flights
cancelled: the flight will not take place
delayed: late

go to the check-in desk

check in your baggage/luggage
weigh baggage/luggage
pay an excess baggage charge
smoking or non-smoking?

go through departures
go to passport control
go to the departure lounge
buy presents from the duty-free shop

go to the boarding gate

passengers should proceed to gate 3
show your boarding card

on board the plane

fasten/unfasten your seat-belt
take off/landing
the plane takes off
the flight is 30 minutes late

transfer passengers (changing flights)

go to the transfer/transit lounge

go to baggage reclaim

your luggage is on the conveyor belt
the suitcase is broken

II. Read the following dialogue. Work in pairs.

Porter: Any luggage, madam?
Mrs Jones: Yes, the two cases here. I'll keep this briefcase.
Porter: I'll take your luggage to be weighed, madam. You'll find the ticket
desk straight across the hall.
Mrs Jones: Thank you.
Receptionist: Good morning.
Mrs Jones: Good morning. I have a ticket for flight BEA 987.
Receptionist: May I see your ticket, please?
Mrs Jones: Here it is.
Receptionist: Is this your luggage?
Mrs Jones: That's right.
Receptionist: Here is your ticket and this is your luggage label, which you show at
your destination when you get your luggage.
Mrs Jones: Thank you. Where do I wait?
Receptionist: Will you go upstairs to gate 3 and wait for the announcement of
your flight.
Announcer: British European Airways announce the departure of their flight
BEA 987. Passengers travelling on this flight are requested to
proceed to gate 3 for customs and immigration formalities.
Receptionist: Have your passport ready. This way, please.
(At Gate 3)

III. Complete the dialogue using the words you have studied.
Mr Brown: Flight BEA 783, economy class, single, please.
Booking clerk: 135 pounds, please.
Mr Brown: …………………………………
Booking clerk: You'll find the ticket desk further on your left.
Mr Brown: Porter!
Porter: Is this your luggage, sir?
Mr Brown: …………………………………
Ticket desk receptionist Good evening. Can I help you?
Mr Brown: …………………………………
Ticket desk receptionist: May I see your ticket, please?
Mr Brown: ……………………………………
Receptionist: Here is your ticket and your luggage label. Your plane
takes off in half an hour. Your flight will be announced
Mr Brown: …………………………………

IV. Use have to and some of the terms from exercise I to complete the following
Example: To know if your flight is delayed, you have to look at the departure
1. At departures, you__________ .
2. At check-in, you__________ .
3. When they leave the plane, transfer passengers__________ .
4. At the boarding-gate, you__________ .
5. To collect their baggage, passengers__________ .

V. Here are the phrases and questions which you may be asked when you have
to pass through the Customs.
Have you got more than the What excess items do you have?
allowance? You have to pay duty on the excess.
You say you bought it at home, may You have to have a Customs declaration
I see the invoice? for these commercial samples.
How long are you staying in this Would you open this suitcase, please?
country? I’m afraid you’re over the allowance.
Are you here on business or for

VI. Complete the dialogue. Work in pairs.

Customs official: Which of these bags are yours?
You: …………………………………….
Customs official: Have you got anything to declare?
You: …………………………………….
Customs official: Would you please open your bags?
You: …………………………………….
Customs official: You’re allowed that, and souvenirs are duty-free. Now, let me
see your customs declaration, please.
You: …………………………………….
Customs official: Thank you, sir. Everything’s all right. Welcome to our country!
You: …………………………………….

VII. Now, it’s your turn to go through the Customs. Make the dialogue.



I. Before reading the text find the meaning of the words below in the
dictionary. Learn them by heart.
borrower заемщик debt market рынок долговых
loan заём обязательств
to lend давать взаймы commercial bank коммерческий
profitability прибыльность банк
to enter new areas of войти в новые to cater for обслуживать
business сферы бизнеса increasingly все больше и
insurance policy страховой больше
полис to transact with вести дело
mutual fund взаимный фонд to abolish отменять,
to rely on полагаться аннулировать

Starting out as places that would guard your money, banks became the main
source of credit creation. Increasingly, however, borrowers are turning to the
financial markets and to non-savings institutions, such as credit-card companies and
consumer-finance firms, when they need a loan. This is reducing the profitability of
traditional bank lending and has led many banks to enter new areas of business, such
as selling insurance policies and mutual funds.
What the most efficient split between bank lending and other sorts of lending
is debatable. Economists argue endlessly about whether an economy such as the
United States, in which firms rely more heavily on debt markets than on banks to
fund their investment, is better than one such as, say, Germany, in which banks have
traditionally been the main source of corporate finance.
Banks come in many different forms. Commercial banks, also known as
retail banks, cater directly for the general public and lend to mostly small and
medium-sized firms. In the past, they did so largely through a network of bank
branches, although increasingly these are giving way to ATM machines, the
telephone and the Internet. Wholesale banks largely transact with other banks and
financial institutions. Investment banks, also known as merchant banks, concentrate
on raising money for companies from private. Universal banks do most or all of the
above including, through bank assurance, selling insurance. These banks have long
been a feature of continental European economies. However, in the United States
financial laws such as the Glass-Steagall Act have separated different forms of
banking from each other and kept banks out of the insurance business. These laws
were abolished in 1999, although during the preceding couple of decades regulators
effectively dismantled them by changing the way they were applied. Even so,
because of these and other laws, which for many years stopped banks from operating
across state borders, the United States has far more lending institutions than other

countries. In 2003 there were over four lending institutions per 100,000 people in the
United States, compared with less than one per 100,000 in the UK and France.

II. Answer the following questions.

1) What were the first banks aimed at?
2) Why do many banks enter new areas of business? What are these areas?
3) What forms of banks do you know?
4) What do commercial banks deal with?
5) In what ways can you borrow money nowadays?
III. Sort out the most important information from the text and retell it.

IV. Read and translate the dialogue “Structure and functions of a bank”
Retell it in indirect speech.
A: Who really owns the bank?
B: The stockholders own it. In the beginning, they put up the necessary capital and
were granted a charter from the government.
A: Are the members of the board of directors stockholders?
B: Oh, yes. They're chosen by the other stockholders to operate the bank.
A: And the board hires the president and the vice-president to manage it.
B: That's right. Along with the cashier, the tellers and the clerical workers.
A: I guess most of your work has to do with checking and savings accounts and
making loans.
B: Yes. But we invest money too. Planning the bank's investments is also very
A: Do you divide all the profits among the stockholders?
B: Not all of them. The stockholders receive regular dividends. But some of our
earnings are held in reserve accounts.
A: I suppose that would be necessary.
B: Here's a copy of our last published statement. You see the reserves are shown
here as surplus and undivided profits.


I. Arranging a meeting
Look at this telephone call from the sales representative to a potential new customer. Try to
guess the words missing from the conversation. If you cannot guess, select the missing word from
the list that follows the dialogue.
Jackson: Hello, Jackson is speaking.
Gray: Good morning, Mr Jackson, this is Mike Gray from Multiscan
Industries .

Jackson: Er, yes, what can I____________for you?
Gray: Well, as you probably know, we are____________a
new____________of high-performance microprocessors. I am going
to be visiting your__________ next week and I wondered if you would
be__________in discussing these new____________and perhaps
having a____________?
Jackson: M-m-m, yes, I would certainly be interested . ..
Gray: Good, would Wednesday morning be____________?
Jackson: Ah, Wednesday is a bit____________; I'm tied up all day. How about
Gray: Thursday would be fine. Can you let me have an hour or so
___________ in the afternoon?
Jackson: Yes, I think that would be possible. Say, four o'clock?
Gray: Excellent, well, I'll look__________ to seeing you on Thursday then.
Jackson: Goodbye.

convenient introducing
models sometime
interested difficult
do demonstration
office range forward

II. Getting a meeting under way

When you take part in a meeting you can use some useful phrases
Opening a meeting. Hesitating.
Right then Oh, let me think for a moment.
Right, can we start? Well now . . .
Ladies and Gentlemen, are we ready to I’m glad you asked me that . . .
begin? I’ve no idea. I’m afraid
Ok then, perhaps we could make a start? I can’t answer that
If everybody is ready, maybe we could I’ll need some time to think about it
make a start? Interrupting.
Directing attention. Do you mind if I just interrupt?
Let’s get straight down to business Could I say something on that point?
Shall we get down to business? May I add something to that?
Let’s get the meeting underway. Excuse me, but could I just say
Inviting someone to state their position. something?
Would you like to start, John? Agreeing.
Could I ask for your comments first? I absolutely agree.
Could I ask you for your view on this You are right (of course).

matter? Yes indeed!
What are your first impressions of the I quite agree with you.
new proposals? Exactly.
Making suggestion. That’s true.
Couldn’t we make a better offer? That’s a wonderful idea.
Why don’t we . . . ? Disagreeing.
I think we should . . . Are you sure?
What about . . . ? I don’t think I really like the idea.
Let’s consider . . . No, I disagree.
Maybe it would be a good idea . . . ?
Have you thought about . . . ?
What do you think of . . . ?

III. Negotiations
I. Dr. Smith is holding a two-day seminar on negotiating techniques. At the end
of the first morning he gives the group his ten rules for negotiating. Here they
Ten rules for negotiating.
1. Find out how many points are to be negotiated.
2. Start from an extreme position.
3. Assume the other person owes you a concession.
4. Don’t concede without exchange.
5. Don’t give what you can sell.
6. Exaggerate the value of your concessions, minimize the value of the other
7. If they insist on “principle”, expect a concession in return.
8. Only threaten what you are prepared to carry out.
9. Don’t show disrespect to the other person.
10. If you’re happy with the result, don’t shout “I’ve won”

II. Read Dr. Smith’s rules and then look at the remarks in list A. These remarks
are not good for negotiating. Instead, use phrase from list B.
a) You see? I knew I'd win!
b) I know what you want to discuss, so let's start.
c) I can reduce the price. Does that help?
d) Delivery? That's no problem; no extra charge.
e) It's against your policy to give discounts? OK.
f) What a ridiculous idea! Don't be stupid.
g) Another half per cent? Yes, that's a very generous offer you're making.
h) This is my final offer. If you refuse, I'll cancel everything.

1) If you increase the order, then we may be able to reduce the price.
2) Very well, but if you can't give discounts, I'm sure you can extend . . .
3) If you can't accept this, I may have to reconsider my position.
4) I think we can agree on these terms.
5) I'm afraid that will not be possible.
6) May we go through the points to be discussed before we begin?
7) Half a per cent is a very small amount.
8) Delivery? Well it may be possible but only if ...

III. Below are the stages of a negotiation and some expressions which you may
find useful at each stage.
1. Conversation
I'm sure/confident we can reach agreement. (optimistic)
I'm sure there's room for negotiation.
We have a lot to discuss.
Let's see how we get on. (cautious)

2. Presenting your position

This is our position.
This is how we see it.
We think the following is reasonable/appropriate.
Our approach is this.

3. Questioning the other's position

How do you explain your attitude?
How do you justify.. . ? account for . . . ? arrive at... ?
Why do you want . .. ?
Why such a high charge?
Why such a long delivery period?
Why such a low discount?

4. Refusing to accept
I'm sorry, I can't accept 2%.
You'll have to do better than that, I'm afraid.
I'm afraid it's not enough.
Other firms offer more than 2°/o.

5. Refusing to move
I'm afraid I can't agree to that.
increase the rate.
lower the price.
shorten delivery.
We've done our best for you.

We have to maintain a policy.
I have my instructions.

6. Suggesting a compromise
May I make a suggestion?
If you . . . then we may be able to ...
We may be able to ... but only if you . . .
Unless you ... there is no question of our being able to . . .

7. Reaching agreement
Let's just go through the terms.
Let's summarize the conditions.

IV. Now you have the opportunity to negotiate. You speak in turn until an agreement is reached.
Refers back to exercise III, if you don’t know the answer.
Supplier: Well, let's get started. You know, with this delivery problem I'm sure
here's room for negotiation.
You: (1: cautious)
Supplier: Right, well this is how we see it. We can deliver the first machine in ten
weeks, and install it four weeks after that.
You: (3: long delivery period)
Supplier: Well, these are in fact the usual periods. It's pretty normal in this kind
of operation. Did you expect we could deliver any quicker?
You: (2: 6 weeks maximum delivery; 4 weeks installation)
Supplier: I see what you mean, but that would be very difficult.
You: (4: too late)
Supplier: Ah-ha! Well, look ... er ... You want the machine in six weeks. Now
that is really a very short deadline in this business. You said that you
could not take it any later, but couldn't your engineers find a way to re-
schedule just a little, say another week?
You: (5: refuse)
Supplier: Well, you really are asking us for something that is very difficult. I've
already offered you seven weeks. I'll have to consult with my
colleagues and come back to you, but I can't see what we can do.
You: (6: if deliver in 6 weeks perhaps talk about further order)
Supplier: Well, on that basis I suppose we might be able to look at some kind of
arrangement. In fact, if you can promise another order I think we could
accept your terms.
You: (7: 6 weeks delivery; 4 weeks installation; decision on next order by
26th of this month)
Supplier: Exactly. If you could confirm this in writing I ...

V. Complete the questionnaire to find out if you are a good negotiator?

1. You have decided to upgrade your computer system and have been quoted a price-
list of $4,000 by a supplier. How much discount will you try to get?
a) none?
b) 15%?
c) 35% or more?

2. A publisher has agreed to publish your book 'How to be a Better Manager'. You
have asked for 75,000 euros on signature of the contract and another 75,000 euros
when you submit the manuscript. They are only prepared to offer you 50,000 on
signature and 75,000 on completion of the manuscript. What do you do?
a) accept their offer?
b) offer an alternative proposal?
c) threaten to go to a rival publisher?
3. You are in Belize and want to buy some Mayan pottery to give to friends on your
return. You see some vases you would like to buy. The ones you want are priced at
$20 each. You want four. What do you say?
a) Here's $80 then.
b) I'd like four pots but I need a good discount.
c) I'll give you $50 for four pots.
4. You are in a store buying an oven. One you have chosen is £600. You ask the
salesman for a discount but he tells you it is not the store's policy as their prices are
already lower than anywhere else. Do you:
a) accept what he says as probably true?
b) insist on a discount or free credit for one year?
c) complain to the manager about his attitude?
5. An overseas firm owes you $150,000. The Finance Manager explains that the
company is having cash flow problems and needs more time to pay. Do you:
a) extend the credit period by another three months?
b) ask for part payment on condition that they make another order?
c) threaten to take them to court?

Now look at the answers to see how you got on.

Mostly a’s
You are not making much of an effort, are you? If you don’t at least try to negotiate,
you’ll get nowhere – the people you are dealing with aren’t going to give anything
away if they don’t have to.
Mostly b’s
You are not aggressive and you don’t make ridiculous demands, so you can consider
yourself an extremely good negotiator. Remember always to be flexible and to keep
an eye open for every possible opportunity.
Mostly c’s.

Do you like being punched on the nose? You had better calm down and start being
realistic now or you might as well give up. You’ll only succeed if you’re extremely
lucky or in the unlikely event that people you deal with are easily intimidated.

IV. Deals

I. The words below show some of the most common uses of the word deal.
a fair deal (= an equitable agreement)
to deal with (= to handle enquiries or take action to solve problems)
to deal a blow to (=to damage)
to deal in (= to do business, usually by buying and selling)
it's a deal (= I agree.)
a raw deal (= unfair treatment)
a good deal (= good value for the price paid)
to make a deal, to do a deal (= to come to an agreement)
a great deal (formal expression)
it's no big deal (= It's not important)

II. Complete these sentences using each of the phrases above in the appropriate
1 Mrs Barker................................................all requests for product information.
2 I couldn't find a client's phone number yesterday................................................., I
thought, but my boss was furious.
3 The latest trade figures may................................................the government's hopes of
an early recovery.
4 Women still often get..............................................at work — less pay for the same
work and fewer opportunities for promotion.
5 The agreement included an attractive discount and two years' free maintenance, so
it was…………………………..
6 I...............................................with you — if you replace me on Tuesday, I'll work
for you on Saturday.
7 It was............................................., so both buyer and seller went away happy.
8 It's a large export company, which................................................all types of antique
furniture and jewellery.
9 Of course we care................................................about the quality of service we
10 A: I want $1,000.
B: Make it $950.
A: OK then, $950 -.................................................



I. Before reading the text find the meaning of the words below in the dictionary.
Learn them by heart.
a successive level последующий уровень
a superior начальник
a subordinate подчиненный
to carry out выполнять
a department отдел
to perform выполнять
the chief executive исполнительный директор
to occupy a position занимать должность
to take financial decisions принимать финансовые решения
to encourage innovation поощрять инновации
to pass on responsibility перекладывать ответственность
decision-making ability способность принимать решения


Organizing structure is considered by many to be “the anatomy of the

organization”, providing a foundation within which the organization functions”.
There can be different kinds of organization structure, and firms can change
their organization structure by becoming more or less centralized.
Most organization have a hierarchical or pyramidal structure, with one person
or a group of people at the top, and increasing number of people below them at each
successive level. All the people in the organization know what decision they are
able to make, who their superior (or boss) is (to whom they report), and who their
immediate subordinates are (to whom they can give instructions). This structure is
one of the simplest and it’s also called a line structure.
Yet the activities of most companies are too complicated to be organized in a
single hierarchy. Shortly before the First World War, the French industrialist Henry
Fayol organized his coal-mining business according to the functions that it had to
carry out. He is generally credited with inventing functional organization, including
(among others) production, finance, marketing, sales, and personnel or staff
departments. The functional type of organization structure reflects an arrangement
based on the nature of the activities that must be performed. Related activities are
grouped together in the functional areas with which they are most clearly identified.
The chief executive of each area occupies a position on the second level of the
organization and generally has the title Vice-President. This means, for example,
that the production and marketing departments cannot take financial decisions
without consulting the finance department. The functional structure is efficient, but

there are two standard criticisms. Firstly, people are usually more concerned with
the success of their department than that of the company, so there are permanent
battles between, for example, finance and marketing, or marketing and production,
which have incompatible goals. Secondly, separating functions is unlikely to
encourage innovation.
A problem of hierarchies is that people at lower level are unable to make
important decision, but have to pass on responsibility to their boss. One solution to
this is matrix management, in which people report to more than one superior. For
example, a product manager with an idea might be able to deal directly with
managers responsible for a certain market segment and for a geographical region, as
well as managers responsible for the traditional functions of finance, sales and

II. Answer the following questions.

1) Why is organization structure considered to be “the anatomy of the organization”?
2) Give a definition of a hierarchical structure. What is it like?
3) Why is it difficult for a company to be organized in a single hierarchy?
4) Who invented functional organization?
5) In what way are the activities grouped in the functional type of organization
6) What are the drawbacks of the functional structure?
7) What is the main point of matrix management?

III. Sort out the most important information from the text and retell it.


I. Most companies are made up of three groups of people: the shareholders (who
provide the capital), the management and the workforce. The management structure
of a typical company is shown in this organization chart.

Board of directors

Managing Director

Senior management

Middle management
At the top of the company hierarchy is the Board of Directors, headed by the
Chairperson or President. The Board is responsible for policy decisions and
strategy. It will usually appoint a Managing Director or Chief Executive, who has
overall responsibility for the running of the business. Senior managers or company
officers head the various departments or functions within the company, which may
include the following.
a. Marketing
b. Public relations
c. Information Technology or IT
d. Personnel or Human Resources
e. Finance
f. Production
g. Research and Development or R and D

II. Using the information above answer the following questions.

1. How many departments are there in the company?
2. How many managers can there be in the company?
3. What is in your opinion the most important department?
4. Who is the head of the company?
5. Name three groups of people in the company.
6. What are they responsible for?
7. Can there be any overseas branches?

III. Give your view on features listed below. Which of them are the most
important for the manager? Which ones are not so essential?
General education
Communication skill
Motivation to work
Can cope under pressure
Foreign languages
Ability to make decisions

IV. Read the text about MTS Systems Corporation and complete the
following “fact file” organisation chart below.

Headquarters in _______________
Specialises in __________________________________________
Factories located in __________ , ___________ and __________
No. of employees _______________

V. Now read the text again and complete the organisation chart
below the text.
My name’s Bernard Levesque and I’m the Technical and Quality Manager at
MTS in Paris and I work within the MTD the Materials Testing Division, which makes
equipment used by industrial firms to test the strength and durability of materials like
plastic, metals and so forth. We’re a subsidiary of MTS Systems Corporation, an
American firm based in Minneapolis. MTS employs roughly 2,200 people worldwide
and is a leading supplier of mechanical testing and simulation equipment. Our major
development and manufacturing operations are located in the US, France and
Germany, and we have sales and service offices around the world.
Before I describe the organisation of my department, I’ll outline the structure
from the top, starting with Werner Ongyert, our CEO, who oversees all aspects of our
activities here. Just below him is the General Manager, Jucques Mardelet, who is my
immediate superior. Then there’s Sylviane Villaret, the Human Resources Director,
and Genevieve Cornetti, the GM’s Secretary, who also report directly to him. We have
a management team that includes myself, Dominique Faurieux, the Sales Manager,
Jean-Fracois Reinauld, the Finance Manager, and of course, Jacques Mardelet, who is
also the marketing manager There are also two new departments – Customer Service
and NVD, the Noise and Vibration Division – headed by Luise Regnier and Patrick
Dhammee respectively.
Now, getting back to the way my department is organised, I’m responsible for
operations, so I’m in charge of Purchasing and Planning, R&D and Quality. The
purchasing and planning Department schedules production based on orders provided
by the sales team and forecasts from the Marketing Department. In R&D, there are
three sub-departments – Mechanical-Engineering, Electronics and Software-
Engineering – which are involved in developing new products and modifying existing
products to meet customer demands. They receive technical specification from the
Marketing Department and provide drawings and assembly instructions. Nathalie
Launay works closely with me on Quality – an area that takes up nearly a third of my
time. And finally there’s the need of Shipping, as well as the person in charge of
Assembly, who also report to me.


3 4

5 6 Quality 7 8 9

Purchasing 10 11 12 13
& Planning

Mechanical 14 15

VI. Circle the word that does not belong in each horizontal group.
1. firm company society subsidiary
2. salary manager engineer employee
3. finance product planning marketing
4. ship assemble customer purchase
5. plant facility patent factory

VII. Match the following definitions to the groups of three words that you
identified above.
a. manufacturing sites ______________
b. stages in the manufacturing process_______________
c. people who work in a company ________________
d. types of business organization ________________
e. different departments in a company ______________

VIII. Match each of the words that you circled in exercise VI with the following
1. ________ payment for work, usually monthly
2. ________ an item that has been made
3. ________ an organization or club with members who share similar interests
4. ________ a document that gives the exclusive right to make or sell a new
5. ________ a person who buys goods or services



I. Before reading the text find the meaning of the words below in the dictionary. Learn them by
to perform a service совершать услугу
a seller and a buyer продавец и покупатель
to understand each other's needs, понимать нужды, способности и
capacities, and psychology психологию друг друга
the exchange of items or services обмен товаров и услуг
to influence влиять
mass production массовое производство
in exchange for в обмен на
a customer покупатель, клиент
marketing research исследование рынка
a competitive advantage конкурентное преимущество
a price for a product цена продукта
a discount скидка
monetary денежный
sales promotion продвижение товара
to retail продавать в розницу
consumer products товары широкого потребления
transaction сделка


Marketing is the term given to all the different activities intended to make and
attract a profitable demand for a product. The practice of marketing is almost as old
as humanity itself. A market was originally simply a gathering place where people
with a supply of items or capacity to perform a service could meet with those who
might desire the items or services. Such meetings embodied many aspects of today's
marketing methods, although sometimes in an informal way. Sellers and buyers
sought to understand each other's needs, capacities, and psychology, all with the goal
of getting the exchange of items or services to take place.
The rise of agriculture undoubtedly influenced markets as the earliest means of
'mass production' of an item, namely foodstuffs. As agriculture allowed one to grow
more food than could be eaten by the grower alone, there was likely motivation to
seek out others who could use the excess food, before it spoiled, in exchange for
other items.
Two major factors of marketing are the recruitment of new customers and the
expansion of relationships with existing customers.

Marketing methods are informed by many of the social sciences, particularly
psychology, sociology, and economics. Anthropology is also a small, but growing,
influence. Market research underpins these activities. Through advertising, it is also
related to many of the creative arts.
For a marketing plan to be successful, the mix of the four "Ps" must reflect the
wants and desires of the consumers in the target market. Marketers depend on
marketing research, both formal and informal, to determine what consumers want and
what they are willing to pay for it. Marketers hope that this process will give them a
competitive advantage.
The four Ps are:
 Product: Identifying consumer needs and wants in order to develop the
product. The Product management and Product marketing aspects of marketing
deal with the specifications of the actual good or service, and how it relates to
the end-user's needs and wants.
 Pricing: This refers to the process of setting a price for a product, including
discounts. The price need not be monetary - it can simply be what is exchanged
for the product or service, e.g. time, or attention.
 Promotion: This includes advertising, sales promotion, publicity, and personal
selling, and refers to the various methods of promoting the product, brand, or
 Placement or distribution refers to how the product gets to the customer; for
example, point of sale placement or retailing. This fourth P has also sometimes
been called Place, referring to the channel by which a product or service is
sold, which geographic region or industry, to which segment (young adults,
families, business people), etc.
These four elements are often referred to as the marketing mix. A marketer can
use these variables to make a marketing plan. The four Ps model is most useful when
marketing low-value consumer products. Industrial products, services, high-value
consumer products require adjustments to this model. Services marketing must
account for the unique nature of services. Industrial marketing must account for the
long term contractual agreements that are typical in supply chain transactions.
A relatively new form of marketing uses the Internet and is called internet
marketing or more generally e-marketing. It typically tries to perfect the
segmentation strategy used in traditional marketing. It targets its audience more
precisely, and is sometimes called personalized marketing or one-to-one marketing.

II. Answer the following questions.

1) Where does marketing originate from?
2) What was a market like earlier?
3) What factors of marketing do you know?
4) Is marketing connected to the creative arts somehow?
5) Why do marketers depend on marketing research so much?
6) Name the four Ps. What is included in each of them?

7) Is the four Ps model useful for both low value consumer products and
high-value consumer products?
8) What new form of marketing do you know?

III. Sort out the most important information from the text and retell it.


I. The marketing director has made a marketing strategy for the company’s
latest product; he is presenting the strategy to the area sales managers and sales
representatives. Read the sentences below and try to guess the meaning of the
underlined words.
a) Before the product launch, market research and test marketing are carried out.
b) The marketing department is also responsible for pricing policy.
c) The advertising agency is responsible for the advertising campaign.
d) There are two main types of advertising; above-the-line, or media advertising and
below-the-line or non-media advertising.
e) Non-media advertising includes promotions, public relations and special offers.
f) The sales department is responsible for sending the sales force to contact
customers, consumers and end-users.
g) Wholesalers sell to retailers, who sell direct to the public.
h) The place where the customer buys the product is called an outlet or a point of
i) The sales department is responsible for selling and for after-sales service.
II. Mr. Lopez is going to give a presentation of a new product to his colleagues.
He has drawn up a rough plan of the presentation. The plan shows the sequence
of his talk and some of the phrases he intends to use.
Good morning, Ladies and Gentlemen.

We haven’t all met before. So I’d better introduce myself, I’m_________


I hope you’ll excuse my English. I’m a little out of practice.


I’m going to be talking about_________

I’ll start with________and_________

Then move on to__________

Finally, I’m going to_________

I think, if you don’t mind we’ll leave questions to the end.



This brings me to my next point________

I must emphasize________

At this point we must consider________

Now, to digress for a moment_________

To go back to my earlier point________


Before closing I’d like to summarize the main points again.

That’s all I have to say for the moment_______

Thank you for listening.

Now if there are any questions, I’ll be happy to answer them.

III. Read Mr. Lopez presentation.

Good morning ladies and gentlemen; we haven't all met before so I'd better
introduce myself. I'm Luis Lopez from the Development Department of Citrus
Incorporated. I should say before we start that I hope you'll excuse my English, I'm a
little out of practice. Anyway, I'm going to be talking this morning about a new
product which we are planning to launch in two months' time; its called KOOL-OUT,
that's K-O-O-L dash O-U-T, and it's a lemon-flavoured drink.
Well, I'll start with the background to the product launch; and then move on to
a description of the product itself; finally, I'm going to list some of the main selling
points that we should emphasize in the advertising and sales campaign. I think if you
don't mind, we'll leave questions to the end.
Now firstly, as you all know, we have had a gap in our soft-drink product range
for the last two years; we have been manufacturing mixed-fruit drinks and orange
drinks for the last ten years, but we stopped producing lemonade two years ago; I
think we all agreed that there was room on the market for a completely new lemon-
flavoured drink. Secondly, the market research indicated that more and more
consumers are using soft drinks as mixers with alcohol so, in other words, the market
itself has expanded. This brings me to my next point which is that we have a rather
new customer-profile in mind; I must emphasize that this product is aimed at the
young-professional, high-income, market and not the traditional consumer of old-
fashioned lemonade. At this point we must consider the importance of packaging and
design, and if you look at the video in a moment, you'll see that we have completely
changed the container itself as well as the label and slogan. . . Now to digress for just
a moment, the more sophisticated packaging means a high unit cost, and this may be
a problem in the selling area, but we'll have a chance to discuss that aspect later ... so
… to go back to my earlier point, this is a totally new concept as far as Citrus
Incorporated are concerned; as you see we are using both the new-size glass bottle
and the miniature metal cans. Finally let's look at the major attractions of the product.
In spite of the higher price it will compete well with existing brands; the design is
more modern than any of the current rival products, and incidentally the flavour is
more realistic and natural ... it's low calorie too.
O.K., so just before closing, I'd like to summarize my main points again,.. We
have KOOL-OUT, a new design concept, aimed at a relatively new age and income
group; it's designed to be consumed on its own, as a soft drink, or to be used as a
mixer in alcohol-based drinks and cocktails. It comes in both bottle and can and this
will mean a slightly higher selling price than we are used to; but the improved flavour
and the package design should give us a real advantage in today's market ... Well,
that's all I have today for the moment, thank you for listening, now if there are any
questions, I'll be happy to answer them ...

IV. Below are some notes made by one of the colleagues of Mr. Lopez , some of
them should be corrected. Write true or false against each statement.
1) Mr Lopez is English.
2) We are planning to launch the product next week.

3) The new product is an orange-flavoured drink.
4) Citrus Incorporated has not produced a lemon drink for two years.
5) Everyone thinks there is a gap in the market.
6) We are aiming at a new type of consumer.
7) The container design is unchanged.
8) The design of the packaging will mean that the product is cheaper.
9) The drink comes in both bottles and cans.
10) The flavour is rather artificial.
11) The calorie-content of the drink is relatively low.

V. Before reading the text, discuss these questions. Then read the text.
1. What are the advantages for a company of expanding beyond its domestic market?
2. What kinds of problem do companies face when they go international?
3. What methods can companies use to enter overseas markets?
4. Think of some global brands – for example in the car, fast food or soft
drink industries. How are they tailored to meet local needs?

Zumo – creating a global brand.

The best-selling sports drink, Zumo, is produced by Zumospa, a food and
drinks company based in Valencia, Spain. In the last financial year, Zumo contributed
€30 million to Zumospa's annual sales revenue, accounting for 20% of the company's
total turnover, and €4.5 million in profits. It is, in fact, Zumospa's cash cow,
generating more revenue than any other of its products.
At present, Zumo is sold only in Europe. However, the sports drink market is
the most rapidly growing segment of the world beverage market. Zumospa would like
to make Zumo a global brand, even though the market is very competitive, with
major companies such as Coca-Cola, Pepsi Cola and Heinz fighting for market share.
• Launched in the mid 1980s. Positioned as an energy product for fitness-conscious
people, especially sportsmen and women between the ages of 20 and 45.
• Distributed mainly through grocery stores, convenience stores and supermarkets.
Also through sports clubs. Also, sales generated through contracts with professional
leagues, such as football, golf and tennis associations.
• Press, TV and radio advertising is backed up by endorsement contracts with famous
European footballers and tennis stars.
• Zumo is offered in four flavours and its price is in the medium range.

Developing a global brand

Zumospa needs to reposition Zumo for the global market. Initial research
suggests that Zumo is perceived as a Spanish drink, and its close identification with
Spain may not be suitable when developing a global brand.

Zumospa would like to launch a global campaign focussing first on South
America, Mexico, the Southern states of the US and Japan, where they have regional
offices. A decision has been taken to use a standardized advertising theme in these
markets, although the copy of the advertisements and language of the TV and radio
commercials will be adapted to local needs.

VI. Before setting up focus groups in the areas and commissioning market
surveys, the Marketing Department of Zumospa have organised an informal
departmental meeting to brainstorm ideas for their global marketing strategy. You are
members of the Marketing Department of Zumospa. Work in groups and brainstorm
the points listed below. Then give a presentation on the development of a new drink,
using the phrases given in exercise II above.

1. Does Zumo need a new name? If so, what?

2. Introduce new Zumo varieties for different market segments (Diet Zumo? Other
3. Re-design Zumo bottle/can? If so, how?
4. Create a new slogan? Suggestions?
5. Ideas for TV and radio advertisement? Also, newspapers and magazines?
6. Price-Medium range?
7. How to compete against similar products from Coke, Pepsi, Heinz, etc?
8. New market opportunities for Zumo?
9. Create a special division to market Zumo world wide.
10. Apply to be official sponsor at next Olympic games.

I. Before reading the text learn the following words.
advertising реклама valuable ценный
to advertise рекламировать deal сделка
to flourish преуспевать to reduce снижать
to accelerate ускорять corporate объявление
to waste тратить в пустую advertising корпоративной
(престижной рекламы)
seller продавец brand image имидж (торговой
consumer потребитель марки)
differentiation различие Public связь с
competition соревнование relations (PR) общественностью
marginal cost предельные затраты publicity известность


Advertising is any paid form of nonpersonal presentation and promotion of

products, services, or ideas' by an identifiable individual or organization. It flourishes
mainly in free-market, profit-oriented countries. It is one of the most important
factors in accelerating the distribution of products and helping to raise the standard of
living. Advertising cannot turn a poor product or service into a good one. But what it
can do — and does — is to create awareness about both old and new products and
services. So there are three main objectives of advertising:
(1) to produce knowledge about the product or service;
(2) to create preference for it;
(3) to stimulate thought and action about it.
Many firms advertise their goods or services, but are they wasting economic
resources? Some economists reckon that advertising merely manipulates consumer
tastes and creates desires that would not otherwise exist. By increasing product
differentiation and encouraging brand loyalty advertising may make consumers less
price sensitive, moving the market further from perfect competition towards
imperfect competition and increasing the ability of firms to charge more than marginal
cost. Heavy spending on advertising may also create a barrier to entry, as a firm
entering the market would have to spend a lot on advertising too.
However, some economists argue that advertising is economically valuable
because it increases the flow of information in the economy and reduces the
asymmetric information between the seller and the consumer. This intensifies
competition, as consumers can be made aware quickly when there is a better deal on
Product advertising is an important part of the marketing mix. Its aim is to
increase sales by making a product or service known to a wider audience, and by

emphasizing its positive qualities. A company can advertise in a variety of ways,
depending on how much it wishes to spend and the size and type of audience it
wishes to target. The different media for advertising include television, radio,
newspapers, magazines, the Internet and direct mail. The design and organization of
advertising campaigns is usually the job of an advertising agency.
Corporate advertising is not directly concerned with increasing sales of a
particular product or service, but more with the brand image, or picture, a company
wants to present to the public. Public relations (PR) experts specialize in organizing
activities and events which generate positive publicity for companies. Unusual
advertising campaigns sometimes get extra publicity for the company by way of
media reports about the campaign.
II: Sort out the most important information from the text and retell it.

III. Read the text about controversial advertising. Do you think the VW
campaign was successful?


By Stephan Armstrong
1 Is Volkswagen bold or stupid? Across France, workmen have been busy
scraping off 10,000 billboard advertisements for its new Golf following
furious complaints from the Catholic Church. In a series of posters, the
German carmaker's model was likened to a religious revelation; one that
showed Jesus at the last supper recommending the car to his disciples.
2 VW’s agency DDB Needham doubtless thought its advertising was ironic and
extremely up-to-date. After all, the admen presumably figured, if outrageous*
advertising worked for the likes of Benetton, it could work to revive the image
of the Golf, which is frankly rather old-fashioned.
3 After the Catholic Church threatened to sue* for Ffr 3.3 m ($550,000) to
obtain reparation for the damage suffered by Christians, the agency and the
carmaker confessed to their sins and agreed to remove the ads. “We have no
disrespect for the fundamental values of society or for the beliefs of the
faithful,” said a spokesperson for DDB Needham. 'We decided to retract the
posters immediately in order to show our respect for the faith and the feelings
expressed by certain believers.' The agency's penance* has included making a
substantial donation to a Catholic charity.
4 European consumers are exposed to hundreds of commercial messages a
day, but the vast majority of these are ignored, so ads which shock have
become more popular with advertisers. It is believed that these ads force
consumers to listen to their message. But some adland thinkers argue that it's a
little more complicated than that.
5 Virginia Valentine, director of advertising's foremost cultural analysis

company.Semiotic Solutions, argues that brands can no longer expect
consumers to take sales messages at face value*. Consumers challenge
everything they are told, she believes, and will prefer brands that give them
something back, rather than the old-style 'here's our product ain't it great!'
philosophy which has dominated advertising since its inception. Thus ads
can deal with social issues and refer to the news agenda these days.
Inevitably, though, it can go horribly wrong. The risk is, and I think this is
true in the case of Volkswagen, that if you use images of faith and prostitute
them, people will take offence. It's all very well if you give them something
back, but it is clear that Jesus could not have benefited from that poster
6 The ad agency, however, may well have done. The VW campaign might look
like a marketing disaster, but increasingly ad agencies are selling to clients
not simply their ability to write ads but their ability to write ads that
generate PR. Some clients ask all agencies pitching for their business to
demonstrate their ability to garner* extra publicity.
7 A deliberately shocking ad is the simplest way to get additional media
coverage, and even if the media coverage is negative, it can still help to sell
the product as advertisers like Benetton have already proved.
8 One supporter of Benetton's work is Leon Jaume, Deputy Creative Director
of ad agency Ogilvy & Mather, who believes its success lies in knowing its
target. 'In marketing terms the only real taboo is upsetting the people you
want to buy your product,’ he says. 'As long as it's legal and the client is OK
with it, you can offend anyone else and in many ways you should. I'd
normally see outrageous advertising as a youth proposition though, and I
think VW's mistake may have been in selling a. product that isn't a youth
product with this kind of style. Young people are receptive to taboo-
breaking as they are more open-minded than older people. I think they
positively welcome advertising that annoys their parents.' Some agency
creatives argue that young people today are fundamentally different from
previous generations in their internationalism, and young consumers in Tel
Aviv are closer to their counterparts* in Paris, New York and Sydney than
they are to their parents.
9 As this generation grows up, the argument goes; they will continue to be more
broad-minded than their parents and will see the shattering of taboos as the
norm. So outrageous advertising will no longer be limited to those products
which target youth.
10 Perhaps Volkswagen was just ahead of its time, advertising to a marker that
wasn't broad-minded enough in a country that still gets nervous when Church
and State are challenged. Or perhaps VW's collision with Catholics shows that
for all their claimed acumen*, ad agencies are less in touch* with the public
mood than they claim.
The European
*outrageous: very shocking

*to sue: to claim money because you have been harmed
*penance: suffering to show you are sorry
*to take smth. at face value: to accept smth. without thinking
*to garner: to collect
*a counterpart: a similar person in a different place
*acumen: the ability to make good judgments
*to be in touch with: to understand

IV. Read the text in more detail and choose the best answer.
1 Which of the following is least likely to be one of the reasons why Volkswagen runs
a deliberately provocative campaign?
a to generate media coverage of the campaign.
b to shock some members of society.
c to show their lack of respect for the Catholic Church.
2 Using taboo images in advertising has become popular with advertising
executives mainly because
a they only want to target young people
b consumers have stopped paying attention to conventional advertising
с products are becoming more international and sophisticated
3 According to the text, shocking advertising is
a always damaging for the advertiser.
b always damaging for the ad agency.
с the simplest way to get media coverage
4 According to Leon Jaume, the young generation of consumers like ads
a with an international flavour
b that offend them.
с that offend their parents
5 The author of the text suggests that
a perhaps Volkswagen isn't broad-minded enough
b admen are not doing enough market research before running campaigns
с Volkswagen wanted to break taboos in France

V. Find words or expressions in the text which correspond to the following

1a public space reserved for advertisers to put their ads on (para 1)
2large pictures or notices put up in a public place to advertise something (para 1)
3human interest subjects (para 5)

4people or companies who pay tor a professional service (рarа6)
5try to win a business deal (para 6)
to p_____t___b_______
6time and space given by the media to a particular news item (para 7)
7the person in charge of developing ideas for advertising campaigns (para 8)
С _____D________
8a social custom which means a particular activity or subject must be avoided (para


1. What is your favorite advertisement? Why do you like it?

2. What kind of advertisement do you like?
3. Which of the following statements do you agree with?
1. People remember advertisements not products.
2. Advertising raises prices.
3. Advertising has a bad influence on children
4. Newspapers and TV are two advertising media. Can you think of others?

Focus Advertising

Focus, a large advertising agency based in Paris, has a reputation for creating
imaginative and effective campaigns. Recently however, Focus's reputation was
damaged when two major clients changed to rival agencies. Focus now needs to
convince potential clients that it still has plenty of creative ideas to offer.
At present, Focus is competing against some well-known agencies for several
contracts. It has been asked to present ideas for advertising campaigns to the
managements of the companies concerned. Concepts are required for the following
advertising campaigns:
• A sports car A high-priced, hand-finished model with a classic design. The car was
popular in the 1950s and 60s. An American firm now wants to re-launch it. (Target
consumers will be high-income executives with a sense of fun and style.) Aim: An
international campaign, with advertising adapted to local markets.
• A perfume A unisex perfume, with bio-degradable packaging. Produced by a well-
known up-market manufacturer. The company now wishes to enter the lower end of
the market.
Aim: Launch the perfume in an English- speaking country.

• A chain of eight London restaurants The restaurants (specialising in your national
cuisine) are in prime positions and offer extensive menus. They are reasonably
priced, but are not attracting enough customers.
Aim: A creative campaign to improve sales.
• A major bank The bank (in an English- speaking country) wants to advertise the
following new services:
1 Competitive low-interest mortgages
2 Direct telephone banking
3 A foreign travel service
It has also asked your agency to suggest others.
Aim: Develop loyalty among existing customers and attract new ones.
You are members of an advertising team at Focus. Prepare an advertising campaign
for one of the products or services. Use the Key questions below to help you. Then
present your campaign to the management of the company concerned. (At this stage,
you have not been asked to prepare a budget.) When you are not presenting your
campaign, play the role of the company's management. Listen and ask questions. Use
the Assessment sheet below to choose:
a) the best campaign concept
b) the most effective presentation.


What is the campaign's key message?
What special features does the product or service have?
What are its USPs (Unique Selling Points)?
Who is your target audience?
What media will you use? Several, or just one or two?
If you use:
an advertisement - write the text and do rough art work.
a TV commercial - use a story board to illustrate your idea.
a radio spot - write the script, including sound effects and music.
other media - indicate what pictures, text, slogans, etc. will be used.
What special promotions will you use at the start of the campaign?


Give a score of 1-5 for each category: 5 = outstanding 1 = poor

Campaign concept Presentation

1 Will it get the target audience's 1 Was it interesting? Did it impress

attention? you?
2 Will it capture their imagination? 2 Was it clear?

3 Does it have a clear, effective 3 Was there enough eye contact?
message? 4 Was the pace too quick, too slow, or
4 Will it differentiate the product or just right?
service? 5 Was the language fluent, accurate and
5 Will it persuade the target audience to appropriate?
buy the product or service? 6 Was the voice clear enough? Was it
6 Will the target audience remember the varied in pitch or monotonous?
campaign? TOTAL: 30

As leader of one of Focus's advertising teams, prepare a summary of your concept for
your Managing Director. The summary will be used as a discussion document at a
forthcoming board meeting.



I. Before reading the text learn the following words.

bob шиллинг silver piece серебряная м-та
circulation обращение (денежное) crown piece корона, м-та в
coin монета одну корону
copper медный shilling шиллинг
currency валюта, деньги sixpence м-та в шесть
decimal десятичный пенсов
farthing фартинг sterling стерлинг
florin флорин the pound sterling фунт стерлингов
guinea гинея to subdivide подразделять
halfpenny монета в полпенса symbol символ, эмблема
ha'penny монета в полпенса threepence м-та в три пенса
to issue выпускать unit единица
penny пенни, пенс worth имеющий
piece монета ценность,

The dollar is the basic unit of United States money. It is worth 100
cents. Its symbol is $. So, $1-00 means one dollar.
The dollar is also the main currency unit of:
New Zealand,
and some other countries.
The dollar was adopted in .the USA in 1792. The first US dollars were
issued in silver and gold. After 1934, however, all gold coins were taken out of
circulation. A silver dollar was issued at various times from 1794 until 1935.
The dollar was adopted in Canada in 1878. Australia adopted the dollar in
1966, and New Zealand in 1967.

The basic unit of money of the United Kingdom is the pound, also called
the pound sterling. The symbol of Britain's pound sterling is £. Today the pound is
equal to 100 pence. The British adopted the decimal system in 1971.
Things were far more complicated in the past. The pound was subdivided
into 20 shillings. The shilling was subdivided into 12 pennies. The guinea was
equal to one pound one shilling. It was a gold coin used in fixing prices of
valuable goods. There also were crowns, 5-shilling silver coins; half-crowns worth 2
shillings and 6 pence; florins, 2-shilling silver pieces; bobs worth 12 pence. A
sixpence was a 6-penny coin and a 3-penny piece was called a "threepence".
There also were "ha'pennies", copper coins, worth half a penny, and farthings,
or quarter-penny copper coins.
You may ask what you need to know all this for. Perhaps you don't have to
remember any of it. Unless, of course, you collect coins. Or read the great
works of English literature.

II. Answer the following questions:

1. What is the basic unit of money in the USA?
2. How much is the dollar worth?
3. What is the dollar's symbol?
4. Where does the dollar circulate?
5. When was the dollar adopted in the United States?
6. Were the first dollars issued in copper?
7. Do gold coins circulate now?
8. When was the dollar adopted in Canada?
9. When did Australia and New Zealand adopt the dollar?
10. What is the basic unit of money in/of the UK?
11. When was the decimal system adopted in Great Britain?
12. How many shillings were there in the pound before 1971?
13. Was the guinea equal to one pound sterling?
14. What was the crown equal to?
15. Were there any copper coins in circulation?
16. What is the symbol of the British pound sterling?

1. Do you spend more than you earn?
2. What do you most enjoy spending money on?
3. What do you least enjoy spending money on?
4. What do you think is good value for money?
5. What do you think is a waste of money?
6. What can you afford that you most appreciate?
7. What can’t you afford that you would most like to have?

Part I

I. Do the quiz individually. Then compare answers with a partner.

1. How much cash do you have with you at the moment? Do you know:
a) know exactly?
b) know approximately?
c) not know at all?
2. Do you normally check:
a) your change?
b) your bank statements and credit card bills
c) restaurant bills
d) your receipts when shopping?
e) prices in several shops before you buy something?
3. Do you:
a) give money to beggars?
b) give money to charities?
c) give away used items, such as clothing?
4. If you go for a meal with someone you don’t know well, do you:
a) offer to pay the whole bill?
b) suggest dividing the bill into equal parts?
c) offer to pay the whole bill but expect them to pay next time?
d) try to avoid paying anything?
5. What do you think about people who do not pay the correct amount of tax?
Is this:
a) a serious crime?
b) morally wrong but not a crime?
c) excellent business practice?
6. If you lend a colleague a small amount of money and they forget to pay it
back, do you:
a) say nothing?
b) remind them that they owe you money?
c) arrange to go for a drink with them and say you’ve forgotten your wallet or

II. Translate the following phrases:

Can you give me change for a $ 10 note?
I can pay you back on Friday.
Can I just buy some chewing gum, please?
Did you bring your receipt with you?
Do you think you could lend me $20?
I’d like to pay my bill, please.
You’ll need to sign them just here, please.

Do you take credit cards?
I’d like to cash some traveler’s cheque.
I’d like a refund, please.

III. In your opinion, which of the following give the best return on your
money? Which are very risky? Which are less risky?

gold currencies a high-interest deposit

precious stones property account
stocks and shares land/real estate antiques and paintings
a new business venture

Part II
I. Work in three groups. Each group reads a different text: either The
South Sea Bubble or Tulipomania or The Wall Street Crash. Make notes on the
key points.


The South Sea Bubble is the name given to a speculation in 1720, and
associated with the South Sea Company in London. People bought shares in the 5
company expecting to make a huge profit, but the boom in shares collapsed and many
investors lost all their money.
The South Sea Company was founded in 1711 to trade with Spanish America.
The in company’s stock offered a guaranteed interest of 6% and it sold well.
Unfortunately, however, Spain allowed the company to send only one ship a year to
trade in the area.
The first voyage in 1717 was a success. Then 15 King George I became
governor of the company in antiques and paintings a new business venture 1719. This
created confidence in the business, and soon it was paying 100% interest.
In 1720, there was a boom in the South Sea Company's shares because it
agreed to take over the 20 country's national debt. It expected to get back its money
by increased trade and a rise in the value of its shares.
The shares did, in fact, rise dramatically. The stock of the company, which had
been around £128 by September the market, had collapsed, and the price fell back to
£124. Eventually, with the support of the Government, the shares levelled off at
around £140.
The South Sea Bubble had burst and it led to 30 an economic depression in the

The first modern stock market appeared in Amsterdam at the beginning of the
century. In Holland in the 1630s, there was one of the first and most

extraordinary speculative explosions in history. It was not in stocks and shares, in real
estate or in fine painting as you might expect, but in tulip bulbs. It has become known
by the name Tulipomania.
People from all classes invested in the bulbs. Many sold their property so that
they could pay for the bulbs they had bought in the tulip market. Foreigners joined in
the rush to buy the flowers and money poured into Holland from other countries.
In 1637, the boom in the market ended. No one knows why, but people began
to sell. Others followed suit. Soon there was a panic among investors and the tulip
market collapsed. Many people who had offered their property as security for credit
went bankrupt. People who had agreed to 15 buy tulips at inflated prices were unable
to pay their debts. When sellers took legal action to recover their money, the courts
were not helpful because they saw such investment as a kind of gambling.
It is not surprising that the collapse in prices led to a severe 20 economic
recessions in Holland.


The stock market crash in the United States in 1929 was huge and it led to a
severe and lasting economic crisis in the world. Many bankers and industrialists lost
their money and reputations. Some went to prison and others committed suicide.
Share prices on the New York stock exchange had begun rising in 1924, and in
1928 and 1929 they rocketed to unbelievable levels. In spring 1929 there was a break
in the rising prices when the Federal Reserve Bank said it might raise interest rates to
slow down the boom. However, a major bank, the National City Bank, assured
investors that it would continue to lend money to them at affordable rates.
Soon the market took off again. People could buy stock for 10% of its value
and borrow the remaining 90%. The lending rate varied from 7% to 12%. Almost
everyone was optimistic. One economist, at the peak of the boom, said that people
generally agreed 'stocks are not at present overvalued'.
It all ended on 21 October, 1929. The market opened badly and there was
heavy selling. 25 Confidence in the market disappeared. There was a rumour that the
big bankers were getting out of the market. Share prices fell dramatically and kept on
falling. The boom was over. But its consequences would last for years to come.
II. Form new groups of three people, each of whom has read a different
text. Exchange information and complete the chart below.

Where did it happen? South Sea Bubble Tulipomania Wall Street


When did it happen?

Who was involved?
What happened?
Why did it happen?

What were the

III. Discuss these questions.

What are the similarities and differences in the three speculations?
What do you think people will speculate in during the next 20 years?

IV. Work in groups. Find words or phrases in the texts which are similar
in meaning to the definitions below. The first group to finish is the winner.
South Sea Bubble Tulipomania Wall Street Crash

a very large amount of great increase in buying a powerful business

money and selling, usually of person controlling large
set up shares companies
sudden increase in buying land and buildings went up very fast
and selling flowed quickly a charge for a short period
to accept responsibility copied became very active
for ended suddenly highest point
go up very fast offered to a lender when sold at too high a price
in the end you borrow money selling all of their shares
remained stable unable to pay their debts

Part III
Angel Investments plc (AI) is based in Warsaw, Poland. It provides finance for
start-up or young companies which need capital to develop their businesses. AI is run
by a group of extremely rich people of various nationalities who made their fortunes
in the computer and financial services industries. They enjoy the excitement of
working with start-ups and small companies, and believe that Central and Eastern
Europe offers outstanding opportunities for investment. They are willing to take risks
and back projects which seem unusual or extraordinary. However they also expect to
make money, usually by taking a stake in the business or a share of the profits.
A team of AI investors is currently considering several proposals. After hearing
presentations from individuals and companies, AI will decide which projects it will
invest in, and how much money it will give to each one. They have £5.5 million to
invest in the projects.

You are either:

an AI investor; or
an entrepreneur who needs finance for a new project.

Briefing notes:
AI Investors
Before the meeting
1 Study the proposals that the entrepreneurs have chosen and discuss which
appeal to you most. Consider which are the most risky and which have the greatest
potential profits.
2 Prepare questions which you wish to ask each person/company
1 Listen to the presentation of each person/company. Ask questions to help you
decide which projects to invest in.
2 Discuss the projects. Decide which to invest in, and how much money you
will give to each.
Remember: You have a maximum limit of £5.5 million to invest, but can invest
Before the meeting
Choose one of the proposals or present your own idea for a product or service.
1 Prepare a presentation of your product/service. Use the Key Points as a guide
for structuring the presentation.
2 Your aim will be to persuade AI to give you the money you need. Try to
predict what questions they will ask you.
During the meeting
1 Give your presentation and answer the AI team’s questions.
2 While waiting to hear AI’s decision concerning your request for finance,
discuss these questions:
a) Was your presentation effective?
b) Do you think you will be successful?
c) How well did you answer their questions?
d) What problems did you have, if any?

Key points for product presentation

1. The Business
A description of the business -What does it do? Who is it for?
Brief details about the team (age, education, experience, etc.).

2. The Product or Service

A brief description - including artwork, if possible.
What are the advantages of the product or service? What need does it fill?

What are its unique features?
3. Marketing
Who are the existing or target customers?
Who are the competitors or possible future competitors?
What are the competing products, if any?
What about pricing policy?
How will the product or service be launched and promoted?
What are the selling and distribution methods?
4. Finance
How much finance is required and for what purposes?

New magazine
You need to finance the first edition and launch of a new magazine. Amount
required: £2.5 million, to finance production, editorial, office administration,
distribution costs and promotion.

Flotation tank centres

At these centres, stressed business people can float in tanks and forget about
their problems. Other services will include advice about diet and skin care, a
solarium, and sunbeds, etc. Amount required: £2 million, to finance premises,
equipment, staff and promotion.

High-tech products
Your company is developing two products. The PX15 prevents people from
using mobile phones in enclosed spaces, for example in restaurants or trains. Sweep-
Safe is a device for clearing mines. It can also find other objects buried underground.
Amount required: £3.5 million, to finance research and development, production and

New sport league

You have a background in sport and public relations. You want to set up a
league for a sport which at present is not well-known, but could become very popular
Amount required: £2.5 million to finance administration and promotion,
endorsements of the league by famous sports people, travel and legal costs.

Your own idea for a product or service

You have an idea for a product or service. You have not yet written a business
plan, but the AI teams are willing to listen to your presentation. Amount required: At
least £3 million, to finance development, production, personnel, launch and
marketing costs.

Your company wants to manufacture airships to advertise companies' products
and to entertain potential customers, etc. Amount required: £5 million, to finance
research and development costs, production, and marketing.

You are head of the AI team. Write a report to the Chairman of AI, Jacek Piotrowski.
Describe the successful proposals and explain why AI should invest in them. Indicate
how much money each will receive, and on what terms.



I. Before reading the text learn the following words.

recruitment набор (кадров), anxiety Беспокойство
наем сотрудников low esteem заниженная
escape избежать оценка
failure неудач (а, ник) impulsiveness импульсивность
absentee отсутствующий a lack of smth. недостаток ч.-л.
astonishing поразительный extrovert экстраверт
thief вор, грабитель acutely резко, сильно
expectation ожидание to cope with smth. справиться с ч.л.
to bear in mind принимать во politician политик, гос.
to decline внимание деятель
intelligence интеллект, ум


By Adrian Furnham
Investing thousands of pounds in the recruitment and training of each new
graduate recruit may be just the beginning. Choosing the wrong candidate may leave
an organisation paying for years to come.
Few companies will have escaped all of the following failures: people who panic
at the first sign of stress; those with long, impressive qualifications who seem
incapable of learning; hypochondriacs whose absentee record becomes astonishing;
and the unstable person later discovered to be a thief or worse.
Less dramatic, but just as much a problem, is the person who simply does not
come up to expectations, who does not quite deliver; who never becomes a high-flyer
or even a steady 30 performer; the employee with a fine future behind them.

The first point to bear in mind at the recruitment 35 stage is that people don't
change. Intelligence levels decline modestly, but change little over their working life.
The same is 40 true of abilities, such as learning languages and handling numbers.
Most people like to think that personality can change, particularly the more
negative features such as anxiety, low esteem, impulsiveness or a lack of emotional
warmth. But data collected over 50 years gives a clear message: still stable after all
these years. Extroverts become slightly less extroverted; the acutely shy appear a
little less so, but the fundamentals remain much the same. Personal crises can affect
the way we cope with things: we might take up or drop drink, drugs, religion or
relaxation techniques, which can have pretty dramatic effects. Skills can be
improved, and new ones introduced, but at rather different rates. People can be
groomed for a job. Just as politicians are carefully repackaged through dress,
hairstyle and speech specialists, so people can be sent on training courses, diplomas
or experimental weekends. But there is a cost to all this which may be more than the
price of the course. Better to select for what you actually see rather than attempt to
change it.
From the Financial Times

II. Answer the following questions.

1. Do people change during their working lives? If so, how?
2. What types of failures do companies experience, according to the article?
3. What does a fine future behind them mean?
4. What advice does the article give to managers?

III. In another part of the article (not included here), the writer suggests that
selectors should look for three qualities:
a) intelligence and ability b) emotional stability c) conscientiousness.

1. Do you agree? Explain your opinion.

2. Complete the table with the adjectives below. What other words can you add?

astute easy-going punctual responsible

bright hard-working quick-tempered sharp
calm moody reliable slow
clever neurotic

Intelligence and ability Emotional stability Conscientiousness

bright calm reliable


1. In your opinion, which of factors below are important for getting a job? Choose the
seven most important. Is there anything missing from the list?

age contacts and connections material status

sex experience personality
appearance family background qualifications
astrological sign handwriting references
hobbies intelligence sickness record
blood group

2. Think about jobs you’ve had and interviews you’ve attended. Ask each other about
your worst:

1) boss 2) job 3) colleague 4) interview

Part I
Job interview. Dialogue
I. Read and translate the dialogue:
Clare: Tell me about your present job.
Josh: I work for an organisation called OSS - Overseas Students' Service. I'm an
accommodation officer. I help overseas students to find somewhere to live when they
arrive in Britain.
Clare: I see. And how long have you been with this organisation?
Josh: Er .. . for just over a year. Since last May.
Clare: It sounds an interesting job. Why do you want to leave?
Josh: Oh, I just want a change. I'd like to travel a bit.
Clare: What languages do you speak? Josh: French, German, Spanish, oh, and
Punjabi and a little Hindi.
Clare: That's good. Now, have you got a driving license?
Josh: Yes, I've had one for three years.
Clare: And what sort of job are you looking for?
Josh: I'd like a job as a tour guide.

II. In pairs, make conversations using the prompts below.

a: Where do you Jive?
в: In (Milan).
a: How long have you lived there?
в: I've lived there for (five) years/since (1999).

1 2
Where do you live? live there?
Where do you work/study? be where?
Have you got a car/moped/bike/pet? have it?
Have you got a boy/girlfriend? know him/her?
husband/wife? be married?
Have you got a driving license? have it?

Part II
I. Read the two case studies on the opposite page and answer these
1. What job did the men do?
2. Why were their employers upset?
3. Who appologised? Who accepted the change?
4. Who intends to sue his employer? Why?

Case 1
JOHN HUMPHRIES, aged 62, is a lorry driver who is proud of being well-
dressed for work. However, his employer told him that he must not come to work in a
collar and tie to drive his 17-tonne lorry. If he did so, he faced the sack. When
working, Mr. Humphries, an ex-Royal Airforce man, wore dark blue trousers, a light
blue shirt, and a red and grey striped tie. He felt he looked smart and impressed the
customers. 'If you present yourself properly, you look good and get respect,' he said.
Mr. Humphries' employers were not impressed when he refused to give up his
collar and tie. They wanted him to conform to the company's new image of casual
clothing such as T-shirts or sweat shirts. They even threatened to dismiss him if he
didn't accept their new dress code. Union officials advised him to accept the change
and follow the company's policy. He agreed.

YOSHIAKI NISHIURA, a 25-year-old lorry driver from western Japan, was

sacked because he dyed his hair brown. (This is a popular fashion with a growing
number of young Japanese.) Although he apologised and dyed it black again, he was
still fired. His employer, Mr. Yamago, believed that behaviour like Mr. Nishiura's
undermined company discipline and corrupted morale. He blamed it on American
influence. 'We need drivers to maintain a professional appearance to make a good
impression,' he said. A Japanese journalist said, 'Japanese firms expect all employees
to look the same and think the same. When you enter a company, you sign away your
human rights’.
Mr. Nishiura is going to sue his employer for unfair dismissal.

II. Discuss these questions.

1 What do you think of:

a) the employers' decisions? b) the employees' reactions?
2 How important is your personal appearance at work?
Think about formal clothing, uniforms, men with earrings, and tattoos, etc.

III. Match the adjectives in column A to the nouns in column B. Make six word partnerships.
growing dismissal
appearance human
company number
professional rights
good discipline
unfair impression

IV. Now complete these sentences with word partnerships from the list.
1 It is important to make a................ ......................at an interview by dressing
2 In a case of................ ......................, an employee may sue a company to get their
job back or to receive financial compensation.
3 А...growing… number….of firms realise that their employees' appearance is
important. Therefore, many companies are introducing dress codes for their staff.
4 If a management allows staff to be absent from work without reason, this will
affect................. ......................
5 When dealing with customers directly, it is important to have a………… …….
6 Some people say that being able to go on strike and having a minimum wage are
basic................... ...................

Part III

I. Read the opening descriptions of the three people’s jobs. What do you think these
expressions mean?
private eye taking her life in her a strapping 6ft 9in
insurance claims hands
like gold dust
tempers can fire

II. Read the text. All the people answer the same six questions. What do
you think the questions were?

The Job: private investigator JOB: traffic warden JOB: nightclub

people Name: Clive Brown, 44 NAME: Linda Jackson, bouncer
Qualifications: 35 (official

police training plus QUALIFICATIONS: title‘Persuader')
common sense on-the-job training Name: Jim Allen,
married with two SALARY: £16,000 a QUALIFICATIO
children year NS: none, but all
SALARY: over £35,000 the right physical
a year For the past 13 years, attributes HOME
Being a private eye in traffic warden Linda LIFE: married, no
real life isn't nearly as Jackson has been taking kids
exciting as it is in her life in her hands. In SALARY: £65 a
detective stories. Clive the few square miles of night
Brown is on call day and city streets where 5ft 4in Bouncer Jim, a
night, investigating large Linda has her beat, strapping 6ft 9in,
insurance claims, dis- parking spaces are like has been standing
honest employees, and gold dust and tempers on the door of the
unfaithful husbands and can flare. Black Cat
wives. nightclub in Leeds
for the last 20
years making sure
that trouble stays
The question

out and only the

right kind of
people get in.

I became a private eye Basically for security. I wanted work

because I was The company I worked where I could
? unemployed and had a
family to support. I used
for was
meet people as I
do enjoy it very
to be a policeman so this wardens' money was much. Obviously,
was an obvious business. good and so were the I'm also pretty
promotion prospects. strong physically,
being an ex-
professional boxer
and wrestler.
I might not admit I'm a If I'm meeting someone Well, I don't like
private investigator, butfor the first time I might to be too obvious
? there are plenty of ways
to 'disguise' what I do,
say I work for the Civil
Service. Then if they ask
at the club, but I'd
never lie about my
such as calling myself a further I tell them job. I'm not out to
'security consultant'. because I'm quite proud give people any
of my job. trouble.
Oh, you bet! You come I was very nearly Some people get a
across a lot of rather attacked once, when I bit upset at the
unpleasant characters. had to call the police to door and won't be

Someone who's been help me deal with a man told to go quietly.
battering his wife, for who got extremely nasty. But I never use
example, isn't going to He was arrested -and he violence myself. If
think twice before he got a ticket from me as anyone starts a
? starts battering me! well! fight, I always call
the police.
Not that I can think of, Quite often I come up No! To be a
but, in fact, if I'm doing against people with a bouncer, you need
my job properly I problem - someone ill at to understand
shouldn't have much home, for example, and people and to
contact with the people they have to get to the know about life. I
I'm investigating. They chemist. But I'd never think I'm very
shouldn't even be aware stand there and argue or tactful. If I made
I'm interested in them! reduce them to tears. I the customers cry
just help as best I can. I might as well be
working on a
building site.
Just every now and then, Some of the horrible Do what?
when a client's cheque things people say have
bounces. That really upset me, but I wouldn't
brings the tears to my give them the
eyes! But, seriously, I try satisfaction of crying.
? not to get emotionally
involved in my job;
Anyway I'd look pretty
stupid in a uniform
otherwise I wouldn't be sobbing on the street.
able to do it.
I'd like to say the Meeting people - I'm a The people,
satisfaction of helping my real chatterbox and love without a doubt! I
? fellow men and women,
but to be honest the thing
talking. I used to be shy,
but the job soon changed
can mix with the
crowd for most of
I really like best about it that! the time so it's a
is the money it brings me. nice social job.

III. Which of these adjectives do you think describes each person best?
a) has the most dangerous job c) is the interested in the money?
b) spends most time talking to d) Is most interested in job security?

Part IV
You are directors of Slim Gyms. Study the file cards on the four short-listed
candidates. Hold a meeting to discuss the strengths and weaknesses of each person.

Try to agree on who seems to be the best candidate the job.

SLIM GYMS owns and operates six health and fitness clubs in Manhattan, New
York. The clubs aim to appeal to people of all ages and income groups.
All the clubs have a large gymnasium, with the latest equipment, an aerobics studio, a
solarium, a swimming pool, sun decks, a cafe, bar and clubroom. There are always
several fitness instructors on hand to advise people and provide them with
personalised fitness programmes. A wide range of aerobic and relaxation classes run
throughout the day and during the evening. The clubs try to create a friendly
atmosphere, organising numerous social activities to bring members together. Three
of the clubs are located in areas where large numbers of Spanish, Chinese and Italians
live. Slim Gyms recently advertised for a General Manager.

• Developing a customer-oriented
SLIM culture in the organisation in the clubs
GYMS • Increasing the revenue and profits of
General Manager the six clubs in Manhattan
Required for our chain • Exploiting new business opportunities
of Health and Leisure Clubs • Liaising with and motivating our team
• Salary negotiable of managers and their staff
• Excellent benefits package Contributing to marketing plans and
• Dynamic, enthusiastic, flexible
• A strong interest in health and fitness
Apply to: • A good track record in previous jobs
88 Harvey Place 11—С •The ability to work with people from
New York different cultural backgrounds
NY 10003-1324 • Outstanding communication skills
• A flair for new ideas and sound
organisational skills

NAME: Isabella Rosetti Age: 35 NAME: Michael Bolen Age: 36

EDUCATION: Princeton University - three children
Master's degree in Business EDUCATION: Columbia University -
Administration (MBA) Master's degree in . Business
EXPERIENCE: Advertising agency for Administration (MBA)
the last eight years. Important position EXPERIENCE: Four years with
liaising with clients and managing a international sports goods manufacturer
team of 10 people. Previously worked as - Marketing Director Previous

Sales Manager in a department store experience with a variety of firms (sales,
(Chinatown area). administration). Wants to work for a
OUTSTANDING ACHIEVEMENT: smaller organisation.
Got a contract with a major advertiser. OUTSTANDING ACHIEVEMENT:
SKILLS: Fluent Italian, judo expert, Successful product launch in previous
paints. job.
PERSONALITY/APPEARANCE: Well SKILLS: Numerate and good with
dressed and self-confident. Says she is computers. Only a few words of
usually successful when she wants to Spanish.
be.Thinks women are better managers PERSONALITY/APPEARANCE:
than men: They listen more and use Forceful, determined, with strong views.
their intuition to solve problems' Likes to 'keep his distance' from people
COMMENTS: Positive reference, but until he knows them well. According to
employer suggested she sometimes took the letter of reference,'Some women
days off work with no good reason. find him too assertive and cold.'
Several good ideas for increasing COMMENTS: Unhappy in present
revenue, e.g. by setting up beauty position. He has often changed jobs.
centres in our clubs. Didn't mention the Aptitude test - average score.
cost of doing this! Above average score HANDWRITING SAMPLE:
on our aptitude test. I am looking for a new challenge…
I am currently working for…
NAME: Bob Wills Age: 40 NAME: Stephanie Grant Age: 30
EDUCATION: Park High School children
EXPERIENCE:Twenty years in EDUCATION: New York University -
US army - Physical Fitness BSc in Business Administration
Instructor. Travelled all over the EXPERIENCE: Former swimming
world. Left army three years ago. champion. Competed at Olympic
Has taken courses in marketing, Games. For last six years, highly
management and successful presenter (children and sports
computing. Over the last two years has programmes).
centre in Lower Manhattan very Voted Top Sports Personality on a cable
successfully. TV channel four years ago.
Two decorations for bravery. PERSONALITY/APPEARANCE:
SKILLS: Speaks Spanish fluently (his Beautiful, clever and successful. Good
girlfriend is Puerto Rican). Is a sense of humour On television, handles
successful disc jockey in a downtown people well. Presents an image of a
club. caring, sympathetic person.
Correctly dressed in a dark suit, but has what she wants,' wrote one journalist. At
tattoos. Sociable, with a lot of friends. 24, she gave up competitive swimming,

Enjoys parties and dancing. following rumours of drug-taking.
COMMENTS: Believes you should Aptitude test - above average.
always stick to the rules.Values honesty HANDWRITING SAMPLE:
and reliability. Can be quick-tempered if I would love the opportunity to
people are not doing their best. Very contribute to your…
enthusiastic with many good ideas. High
score on aptitude test.
I am writing to apply for the post of ...

I. Look at the following advertisement in ‘Health and Fitness' magazine and a
letter of application:

Keen on sport? Busy health

club requires outgoing person
for part-time work (including
late hours). June to September.
Good command of English.
Must be adaptable. Please
write to: The manager,
Sundance Health Club,
Sussex, PO1 2jE including a
recent photograph.

Rua de Gloria 10
3000 Coimbra

15th Aprel 2008

The Manager,
Sundance Health Club,
Harbour Lane,
PO1 2jE

Dear Sir/Madam,
I am writing in reply to your advertisement in ‘Health and Fitness' magazine for
general part-time work in your health club.

I am a 20-year-old Portuguese student and I come from Coimbra in the north of
Portugal. At present I am still studying at college but I am taking my final exams in
May. I have studied English for six years but I want to spend some time in England in
order to improve my spoken English.

I am interested in sport and fitness and at home I go to a sports centre three times a
week. I am also a member of the college swimming team. I get on very well with
people and I like making new friends. I don't 'mind doing any sort of work including
cleaning, washing up and helping in the gym.

I am prepared to work any hours but ideally I would like to work in the afternoons
and evenings only so that 1 can attend English classes in the mornings. I have friends
who live in Chichester, so accommodation is not a problem. My term ends on 28th
May, so I would be able to start on 1st June.

I look forward to hearing from you.

Yours faithfully,

Paulo Freitas

Paulo Freitas
II. Write your own letter of application in reply to the following advertisement:
Jobs in Britain
Work International, Britain’s leading international
job agency, requires enthusiastic young people to
work in holiday villages in Scotland and the north
of England. Must speak some English.
If you are interested write to Bob Duncan at: Work
International, 98, Stratfird Street, London E14
9TE, England.


I. Before reading the text learn the following words.

impact влияние
breed поколение
SBU = strategic business unit стратегическая бизнес-единица
TQM = total quality management комплексное управление
JIT = just-in-time точно в срок (по графику)
MBO = management by objectives целевое управление
circumstance обстоятельство
pay-for-performance плата за (по) результатам
sequence последовательность, итог
preconceived заранее составленный
guideline общий курс, директива
doctrine теория, догма
physical физический, материальный
monetary монетный, денежный, валютный
to grasp хватать, постигать
authority власть
bureaucracy бюрократия
creativity творчество, креативность
fellowship членство, братство
verification сверка, подтверждение
accountability ответственность, необходимость


Take a look at the new breed of international managers, educated according to
the most modern management philosophies. They all know that in the SBU, TQM
should reign, with products delivered JIT, where CFTs distribute products while
subject to MBO. (SBU = strategic business unit TQM = total quality management,
JIT = just-in-time, CFT = customer first team, MBO = management by objectives.)
But just how universal are these management solutions? Are these 'truths' about
what effective management really is: truths that can be applied anywhere, under any
Even with experienced international companies, many well-intended
‘universal’ applications of management theory have turned out badly. For example,
pay-for-performance has in many instances been a failure on the African continent
because there are particular, though unspoken, rules about the sequence and timing of
reward and promotions. Similarly, management by objectives schemes have generally
failed within subsidiaries of multinationals in southern Europe, because managers
have not wanted to conform to the abstract nature of preconceived policy guidelines.
Even the notion of human-resource management is difficult to translate to other
cultures, coming as it does from a typically Anglo-Saxon doctrine. It borrows from

economics the idea that human beings are Resources' like physical and monetary
resources. It tends to assume almost unlimited capacities for individual development.
In countries without these beliefs, this concept is hard to grasp and unpopular once it
is understood. International managers have it tough. They must operate on a number
of different premises at any one time. These premises arise from their culture or
origin, the culture in which they are working, and the culture of the organisation
which employs them.
In every culture in the world such phenomena as authority, bureaucracy,
creativity, good fellowship, verification and accountability are experienced in
different ways. That we use the same words to describe them tends to make us
unaware that our cultural biases and our accustomed conduct may not be appropriate,
or shared.
From Riding the Waves of Culture: Understanding Cultural Diversity in Business by Fons
Trompenaars, Nicholas Brealey Publishing Ltd., London, 1993.

I. Which do you think of the three statements (A, B, or C) given below the
extract offers the most accurate summary.
A There are certain popular universal truths about management which can
successfully be applied in various cultural contexts.
В Cultures are so varied and so different throughout the world that
management has to take account of differences rather than simply assume
С Effective management of human resources is the key to everyone achieving
their full potential.

II. Read the text again. Identify the following:

a) the problem with 'universal' management solutions
b) an example of the failure of pay-for-performance
c) an example of the failure of management by objectives schemes
d) the problem with human-resource management
e) three cultures affecting international managers
f) six areas in which different cultural interpretations apply.
a) tomorrow night / a show or visit the town/ or have a meal.
b) this evening / a meal in a restaurant / different colleagues.
c) when you come / what would you like to do?

III. a) The chief executives of two British-based companies have produced a ten-point
guide on how to export successfully to Japan. Before you read the article, predict what
advice they will give. Make suggestions under the headings Do and Don't

b) Read the first sentence only of each paragraph in the article. Were any of
your guesses correct?
c) Now read the whole article. Then, summarise the information. Use the headings below.

 language  currency  customer visits
 personal contact  middlemen  meals
 patience  dialect, climate  gifts
 country of origin  culture

Ian Hamilton Fazey examines a ten-point guide to doing export business in Japan.
Boodle & Dunthorne is a jewellery designer and retailer. Joloda makes equipment
for loading goods on trucks. Both are based in Liverpool, UK. The chief executives
are Martin Wainwright (Boodle & Dunthorne) and Wojtek Kordel (Joloda).
1. Be prepared for important cultural and language difficulties. This may seem
obvious but some people try to get by in Japan without hiring a good interpreter who
can also explain Japanese traditions and customs.
2. Trade on personal contact at a senior level. This is more important than trading on
price. Physical presence matters. Only now, after 10 years of selling to Japan, is
Joloda introducing a new salesperson. Wainwright says regular exhibitions at national
trade shows in Japan are critical to building a profile in the sector you sell to.
3. Patience pays dividends. It may take several visits before an order comes through.
Boodle & Dunthorne took about 16 months to get going and Wainwright spent
£40,000 before getting an order. He had gone back to the UK from a trade show
ready to call it a day when his sales manager, who was due to follow him the next
day, got a call to see the Mitsui Corporation three days later. Boodle & Dunthorne
was suddenly in.
4. Avoid middlemen so as to speed delivery. Joloda uses an agent in Japan but was
able to give faster service by minimising the length of its distribution chain. Boodle
& Dunthorne employs Rebecca Hawkins, a leading designer, and manufactures its
own jewellery, so providing a fast, direct service with original designs.
5. Quote in local currency. Your bank should be able to help you; if it cannot,
change banks.
6. There are wide variations in dialect, climate and culture. You may need a
different distributor in Osaka from Tokyo, for example — and a different interpreter
— because your Tokyo man may well not have the right network of contacts.
7. Emphasise your product's country of origin. Britain, say Kordel and
Wainwright, is seen as quaint, old fashioned, but full of history. Whether you sell
jewellery or engineering products, stress any hand crafting of your goods and the
heritage of the city where you are based.
8. Develop your intuition. Wainwright and Kordel say a culture of politeness prevents
the Japanese from expressing dislike and disagreement. If they visit you in the UK,
Wainwright says to remember they do not usually eat big meals or too much meat. Fish
restaurants are safer.

9. Some of Joloda’s customers from the regions are unfamiliar with western culture.
Kordel advises that UK visits by them should be well-supervised from arrivalto
departure, with an interpreter provided at all times.
10. Offer gifts. The Japanese enjoy giving and receiving beautifully presented gifts,'
Kordel says. 'Status is critical, so a prestigious brand is appreciated best. However, it is not
the value of the gift, but the fact it is a present from you that counts,' says Wainwright.
World business newspaper.
From the Financial

1. What is culture? Choose the four factors below which you think are
the most important in creating a culture.
Climate language social customs and traditions
institutions arts historical events
ideas and beliefs religion ceremonies and festivals
cuisine geography

2. What do you miss most about your country or culture when

you go abroad?
3. Why is cultural awareness important for buisiness people?
Give examples.
4. Do you think cultures are becoming more alike? Is this a good or bad
thing? For example, think about:
improved communications Global business
chip foreign travel Trading groups (EU, ASEAN, etc.)

5. How important are the following things when doing business in your
country? Are they: a) important b) not important, or c) best avoided?
 exanging business cards  formality (how you dress, how
 shaking hands you talk to colleagues, what
 kissing names you use, etc.)
 socializing with contacts  punctuality
 small talk before meetings  humour
 accepting interruption  giving presents
 using first names  being direct (saying exactly what
you think)


Toyworld is a profitable toy retailer based in Seattle, US, with subsidiaries in over 30
countries. Toyworld buys its products from suppliers all over the world.
Mr Lee Chung, head of a toy manufacturing firm based in Guandong, China, is
going to visit the Toyworld subsidiary in your country. He will be accompanied by
his Export Manager, John Wong. The purpose of his visit! is to get to know
Toyworld's management better and to learn more about the company. I He may set up
a joint venture with Toyworld il he has confidence in them and considerl them to be a
suitable partner. This is Mrj Chung and Mr Wong's first visit to youfl company, and
to your country.
You are members of the planning committee for Mr Chung's visit. Read the
documents. Then, plan a draft programme in small groups. After that, compare your
ideas with the rest of the class and produce the final programme.

1 Chinese relationships are built on personal trust and respect. Everything you do
during the visit must show that you consider Mr. Chung and Mr. Wong to be
important people.
2Relationship building activities and a successful social programme will be more
important than the business meeting.
3Mr. Chung communicates fairly well in English, but has some problems
understanding difficult expressions. Mr. Wong has a much higher level of
4Both men are rather fussy about food. For example, Mr Chung was unhappy when
he had to attend a wine and cheese party last year he hates cheese! They both enjoy
high quality alcoholic drinks.
5Your visitors will expect to have some basic information about Toyworld, and to
be offered activities which give them a better understanding of the company.
6Mr. Chung and Mr. Wong will be particularly interested in your warehousing
facility and in your sales network.
7Be careful about topics for discussion at social events. Do not embarrass your
visitors by introducing 'difficult' topics.
8They will be eager to learn about life in your country and about its culture.
9Punctuality is very important to Mr. Chung. He gets angry if people arrive late
for a meeting - he thinks it shows a lack of respect.
10. 'Sincerity' is a word which Mr. Chung and Mr. Wong use frequently. They
value it a lot.
Good luck with the visit!

Best wishes,
Kenneth Eng

Key questions for the planning committee
2 Where will the visitors stay?
3 Who will meet them? What transport will be used?
4 What arrangements should be made for meals?
5 When will the business meeting take place?
6 What topics would be suitable for discussion at meals?
7 How will the visitors be entertained? Trips? Special events?
8 What gifts would be suitable? When and how should they be
9 Should there be local press and television coverage?
10 Is it necessary to provide an interpreter?
11 Any other arrangements to encourage 'relationship building'?


As Marketing Director at Toyworld, send a fax to Mr Chung with details of the

programme for his visit. The tone of the fax should be friendly and show that you and
your colleagues are looking forward to meeting him soon.


I. Before reading the text learn the following words.

transactional деловой salutation приветствие
invitation приглашение recipient адресат,
complaint жалоба получатель
apology извинение frequent частый
regret сожаление to omit пропускать
impolite невежливый chatty болтливый
silly глупый Yours faithfully с уважением
odd странный Yours sincerely искренне ваш
to distinguish различать

Letters are divided into two categories, formal and informal. There are various types
of formal and informal letters, for example: letters asking for or giving information,
letters asking for or offering advice, letters of invitation, letters accepting or refusing
an invitation, letters of complaint, letters of apology, letters expressing thanks/
regrets/congratulations, letters giving or asking for directions, letters of application,
narrative/descriptive letters, transactions letters, letters telling the news etc. It is
important to think about the person who you are writing to before you begin writing a
letter. If the wrong style is used, the letter will look impolite, silly or odd. For
example, if you used formal language to write to a closed friend, the letter would look
odd, or if you used informal language to write a letter to a company, the letter would
look impolite.
There are certain characteristics which allow us to distinguish between formal and
informal letters. These are:
 The salutation (e.g. Dear Sir/Madam, Dear Bill)
 The style or language (e.g. use of formal language for formal letters, or the use
of slang and idioms for informal letters)
 The closing remarks (e.g. Yours faithfully, Lucy Cohen /Yours sincerely, Lucy
Cohen / Love, Lucy)
1. In formal letters your address and the date as well as the recipient's
address are included in the letter. When you do not know the name of the recipient,
you should include their title in the address, e.g. The Director f Studies, St Michael's
School, 15, Pine St., London. You should begin the letter with Dear Sir/Madam, and
end with Yours faithfully, Peter Jones. When the name of the recipient is known, their
name and title should be included in their address, e.g. Mr. Witkins, Accounts
Manager, Rockdell Financial Services, 15 Stockdale Ave., London. The letter should
begin with Dear Mr. Witkins, and end with Yours sincerely, John Smith.
2. In semi-formal and informal letters the recipient's address is not included
in the letter. In a semi-formal letter showing respect for the recipient with whom you
are on friendly terms, begin the letter with Dear Mr/Mrs Smith and end with
Love/Regards/Best Wishes/Yours, Anna.

3. In an informal letter, begin with Dear John and end with
Love/Regards/Best wishes/Yours, Mike.
4. Remember that it is not necessary to write addresses in the FCE Exam.


Greeting: Dear Sir/ Madam/ Mr. Greeting: Dear Julie,
Dobbins,  personal, short, zappy style
 impersonal style  use of slang or colloquial English
 complex sentence structure - -use of idioms/phrasal verbs
frequent use of Passive Voice -  pronouns are often omitted
single word verbs - non-  chatty, wide use of descriptive
colloquial English - formal adjectives
language  use of short forms
 each paragraph develops one Name: Best wishes / Love
specific topic /Yours /
 only facts, infrequent use of Regards,
descriptive adjectives Steve
 no use of short forms
Name: Yours faithfully/Yours
sincerely, Steven Hill

Differences between British and American Letters

British American
Opening Salutations
1) Dear Sirs - to a company 1) Dear … (Representative) - if you
do not know the name
2) Dear Sir - to a man 2) Gentlemen - to men
3) Dear Madam - to a woman 3) Dear Mr. Bell or Ms Jacobs -
when you know the name
4) Dear Sir or Madam - if you do 4) Dear John - informal - when you
not know the sex of the reader know the name
5) Dear Mr Baker or Ms Bellow
6) Dear John Smith/Dear John -
Closing Salutations
1-4 Yours faithfully 1-2 Yours faithfully,
5 Yours sincerely Yours truly,
6 Kind regards 3 Sincerely yours,
Best wishes Sincerely,
4 Best regards,

Very often British people type a comma after the salutations, but an increasing
number of firms are eliminating this. In American letters colons are used after formal
opening salutations and commas after informal ones. After a closing salutation they
always use a comma.


I. Read the extracts and discuss the questions:

1. Where are the extracts taken from?
2. What is the purpose of each letter?
3. How do they differ?
4. Which extracts are examples of formal letters?
5. How is the reader addressed in a formal letter?
6. What are the closing remarks*for formal letters?
7. What is the salutation in a friendly letter?
8. How would you end extracts 1, 2 and 3?
9. How would you begin the extracts 4 and 5?

Dear Mr. Miller,

I received your kind invitation to the reception. Unfortunately, owing to other
commitments, I will be unable to attend...
Dear Ralph,
I just got your invitation to the company's event I'm afraid I can't make it because
I've already made plans which I can't change ...
Dear Sirs,
I am writing to complain about the poor quality of the items which I received from
your company: I have no other alternative but to cancel the order which I placed
earlier this week...
... thus, I recommend that you accept this advice on the matter. I am sure that the
suggestion offered is the best solution. Please let me know if this was helpful.
Yours sincerely,
Lee Jones
... I would appreciate a reply at your earliest convenience. I look forward to
meeting you to discuss employment opportunities.
Yours faithfully,
Nicole Porter

II. Put an F for formal and an I for informal language. Give reasons.
1. In reply to your query about... 11. Pop in for a chat some time soon ...
2. I trust that this is the information you 12. You've been very helpful...
require........ 13. Well, I must leave now ...
3. Hope this information helps you ... 14. By the way, I've got to tell you ...

4. I would like to express my 15. I regret to inform you that...
dissatisfaction with the item I 16. It is with great happiness that I
purchased ... congratulate you on your engagement...
5. I'm afraid I won't be able to make it 17. Please accept my sincere apology ...
on Friday........ 18. Write back soon!
6. Why don't you come and visit us ... 19. Keep in touch...
7. I'm looking forward to hearing from 20. You are cordially invited
you ... to attend ...
8 I look forward to meeting you.
9. I am writing with regard to the
10. How about getting together next
Friday instead? .....

III. Read the two models and find out which model:
1. uses an impersonal 4. uses examples of the 7. uses short forms
2. style includes only Passive voice 8. uses a short, zappy
facts 5. includes examples of style
3. omits pronouns colloquial English
6.includes formal

Dear Madam, Dear Jane,

I am writing on behalf of “World A quick note to help you decide where
Travel” in response to your request for to hang out over the holidays.
information on holidaying in the Bill and I went to St. Kitts last summer
Caribbean. and it was great. It’s a small, quite
A two-week package to the peaceful island that hasn’t been overrun by
island of St. Kitts is being offered by tourism yet, so you can really get a feel
our agency for only $ 3.000. This island for the local culture. You can hop over
satisfies all your requirements, as it is to other islands too, because there are
quite and has little tourism. bouts leaving St. Kitts every few hours.
In addition, transport is available should If St. Kitts is too quite, you can go and
you wish to explore other islands in the party in St. Martin. Happy to give you
Caribbean. All travel plans can be the number of my travel agent if you’re
arranged through our office. interested.
Please contact our agency immediately Give me a ring so we can have a chat
should you require more information. about it.
Your’s Love,
faithfully, Patrica
Jane Douglas

IV. Match these phrases with the types of letters. Give more opening phrases and endings for each
type of letter.

1. I am writing to inquire about... a. letter of complaint
2. I am writing to apply for... b. letter of apology
3. I am writing to complain about... с. letter of application
4. I am writing to inform you ... d. letter of invitation
5. I'd love to come ...but I can't make it. e. letter refusing an invitation
6. I am writing to accept your kind ... f. letter asking for information
7. I'm writing to invite you to ... g. letter giving information
8. I'm writing to apologise for... h. letter accepting an invitation

V. Match the beginnings with the endings. Decide which are formal and which
are informal. Give reasons. Then, identify the types of letters, e.g. letter of
complaint, letter of invitation, etc. Finally, list appropriate language for each
type of letter.
e.g. Beginning We would be honoured if you could attend our son's wedding ...
Ending Please indicate whether you will be able to attend.
Formal Invitation

1 I wish to express my dissatisfaction to A I regret any inconvenience this may
you in the strongest terms. Never before have caused hope you will accept my
have I had to wait four months for the most sincere apologies
delivery of a new appliance. В Anyway, good luck in your new
2 Thanks for the invitation to your position. I know you certainly deserve
graduation party. You should be very it!
proud of yourself. C I want to cancel my order and I insist
3 Congratulations on your new job! I'm that my money be refused at once. I no
so happy for you. I know that it's just longer wish to do business with your
what you wanted. company.
4 I am writing in reference to your D I'm really sorry I can't be there on
advertisement in yesterday’s Daily news your graduation day, but I'll be thinking
for the position of personnel manager. of you.
5 I am writing with regard to the E I am including my CV which lists my
documents which were unfortunately educational background and work
sent to you after the deadline. I must experience. I am available for an
apologies profusely for this careless interview at your earliest convenience.

VI. Read the following questions and identify the type and style of each letter.
Then write any two of them. Write your answer in the appropriate style, using
120-180 words. Do not include addresses.
1. You have just returned from an exotic safari in Africa. Write a letter to your friend
telling him/her about it.
2. You have recently received a letter from, your cousin. Write a reply accepting his

invitation to go skiing for the weekend.
How about going to Loon Mountain this weekend? I hear the skiing there is fantastic!
Let me know soon if you can come...
3. This is part of a letter you have received from a friend who lives in Germany.
Write a reply giving him the appropriate information.
I’ll be visiting your city next month from the 5th to the 12th. Can you find, out which
'universities offer courses in Business Administration? When I arrive I would like to
visit them and start the application process.
4. You have seen an advertisement in The Sunday Times on May 10th. Write a letter
applying for the position of Junior Reporter.
5. Your teenage son is having discipline problems at school. Write a letter to the
school counsellor asking for her advice on the matter.
Roadworks have been in progress for several weeks outside your house, causing
frequent traffic jams and excessive noise. Write a letter complaining about the
situation to the local authority.


I. Read the advertisement and the notes. Then, write a letter to the Grange
Health Spa to complain about the inadequacy of the services offered while you
were a guest there. Include all the information given.
Set in the scenic countryside of the Lake District, The Grange offers a full range of
health and diet programmes (but: all guests ate the same food), each one specially
formulated to suit the needs of each guest. The use of all modern facilities
including swimming pool, sauna, Jacuzzi, and gymnasium are available 24 hours
a day.
₤ for a 2-day stay in a luxury suite (but: tiny room, no view), call 9527406 Price is
all-inclusive (but: had to pay for some things)

II. Read the instructions below and write a reply including all the information
Your friend is thinking of taking a summer course to learn how to sail. He wants your
opinion, as you took the course last summer. Write to him using the information in
the advert and the notes you made. Write a letter of between 120 and 180 words in an
appropriate style. Do not write addresses.


Learn how to guide a sailboat

Two month (June and July best months) course (3 mornings a week 4-hour sessions)
– low fee (₤120)

All equipment (small sailboats, life jackets) provided
Small (only 5 students per class) classes
Instruction (qualified, experienced instructors) in the classroom and sea
Contact Mr Lewis at:66
Tinmouth St., Southampton



1. Printed letterhead
1A. Sender's Name, Address

2. Recipient's Name, Address
3. Date
4. References
5. Salutation
6. Subject Line
7. Body of Letter
8. Complimentary close
9. Signature
10. Enclosure
NB: If there is Printed Letterhead, 1A is not used.

Block form:

2 1A

4 3 1


Mr Fred North
Purchasing Manager
Broadway Autos
11 November, 20—
Dear Mr. North,

Thank you very much for your enquiry. We are of course very
familiar with your range of vehicles and are pleased to inform you that we
have a new line in batteries that fit your specifications exactly.
The most suitable of our products for your requirements is the
Artemis 66A Plus. This product combines economy, high power output and
quick charging time and is available now from stock.
I enclose a detailed quotation with prices, specifications and delivery
terms. As you will see from this, our prices are very competitive. I have
arranged for our agent Mr. Martin of Fillmore S.A. to deliver five of these
batteries to you next week, so that you can carry out the laboratory tests.
Our own laboratory reports, enclosed with this letter, show that our new
Artemis 66A Plus performs as well as any of our competitor's product and,
in some respects, outperforms them.
If you would like further information, please telephone or telex me:
my extension number is 776. Or you may prefer to contact Mr. John Martin
of Fillmore S.A. in M_______________: his telephone number is 01 77 99
I look forward to hearing from you.
Yours sincerely,
Fred Stock
Fred Stock


Pet Products Ltd.

180 London Road
Exeter EX4 4JY

25th February, 2007
Dear Sirs,

We read your advertisement in the 'Pet Magazine' of 25th December.

We are interested in buying your equipment for producing pet food. Would
you kindly send us more information about this equipment:

— price (please quote CIF Odessa price)

— dates of delivery
— terms of payment
— guarantees
— if the price includes the cost of equipment installation and our staff

Our company specializes in distributing pet products in Ukraine. We have

more than 50 dealers and representatives in different regions and would like
to start producing pet food in Ukraine. If your equipment meets our
requirements, and we receive a favourable offer, we will be able to place a
large order for your equipment.

Your early reply would be appreciated.

Yours faithfully,
Export-Import Manager

TO: Richard Branten DATE: February 1, 2007
FR: John Brown SUBJECT: Problems with the
W. Lawson Ltd. account

Please send me copies of all documents relating to the W. Lawson account,

and let me know if you see anything unusual in the file.

We have had many problems servicing this account. During the past year
we’ve billed them incorrectly and sent the wrong merchandise on several

Also, please process their current order as quickly as possible.



Most students taking economics for the first time are surprised by the breadth of
what they study. Some think that economics will teach them about the stock market

or what to do with their money. Others think that economics deals exclusively with
problems like inflation and unemployment. In fact, it deals with all these subjects, but
they are pieces of a much larger puzzle.
Economics has deep roots in, and close ties to, social philosophy. An issue of
great importance to philosophers, for example, is distributional justice. Why are some
people rich and others poor, and whatever the answer, is this fair? A number of
nineteenth century social philosophers wrestled with these questions, and out of their
musings economics as a separate discipline was born. The easiest way to get a feel for
the breadth and depth of what you will be studying is to explore briefly the way
economics is organized. First of all, there are two major divisions of economics:
microeconomics and macroeconomics.
Microeconomics deals with the functioning of individual industries and the
behaviour of individual economic decision-making units: single business firms and
households. Microeconomics explores the decisions that individual businesses and
consumers make. The choices of firms about what to produce and how much to
charge and the choices of households about what to buy and how much of it to buy
help to explain why the economy produces the things it does. Another big question
that microeconomics addresses is who gets the things that are produced. Wealthy
households get more output than do poor households, and the forces that determine
this distribution of output are the province of microeconomics. Why do we have
poverty? Who is poor? Why do some jobs pay more than others? Why do teachers or
plumbers or baseball pitchers get paid what they do? Think again about all the things
you consume in a day, and then think back to that view out over a big city.
Somebody decided to build those factories. Somebody decided to construct the
roads, build the housing, produce the cars, knit the shirts, and smoke the bacon.
Why? What is going on in all those buildings? It is easy to see that understanding
individual micro decisions is very important to any understanding of your society.
Macroeconomics, in its turn, deals with the functioning of national economic
complex and the behavior of the main classes and social groups.


The study of economics should begin with a sense of wonder. Pause for a moment
and consider a typical day in your life. For breakfast you might have bread made in a
local bakery with flour produced in Minnesota from wheat grown in Kansas and bacon
from pigs raised in Ohio, packaged in plastic made in New Jersey. You spill coffee
from Colombia on your shirt made in Texas from textiles shipped from South Carolina.
After class you drive with a friend in a Japanese car on an interstate highway system that
took 20 years and billions of dollars worth of resources to build. You stop for gasoline
refined in Louisiana from Saudi Arabian crude oil brought to the United States on a
supertanker that took three years to build at a shipyard in Maine. At night you call your
brother in Mexico City. The call travels over newly laid fiber-optic cable to a powerful
antenna that sends it to a transponder on one of over 1.000 communications satellites
orbiting the earth.

You use or consume tens of thousands of things, both tangible and intangible, every
day: buildings, the music of a rock band, the compact disc it is recorded on, telephone
services, staples, paper, toothpaste, tweezers, soap, a digital watch, fire protection,
antacid tablets, beer, banks, electricity, eggs, insurance, football fields, computers,
buses, rugs, subways, health services, sidewalks, and so forth. One hundred twenty
million people in the United States - almost half the total population - work at
hundreds of thousands of different kinds of jobs producing nearly six trillion dollars
worth of goods and services every year. Some cannot find work; some choose not to
work for pay. Some are rich, others are poor.
The United States imports $60 billion worth of petroleum and petroleum
products each year and exports $37 billion worth of food. High-rise office buildings go
up in central cities. Condominiums and homes are built in the suburbs. In other places
homes are abandoned and boarded up. Some countries are wealthy. Others are
impoverished. Some are growing. Some are stagnating. Some businesses are doing well.
Others are going bankrupt.
Economics is the study of how individuals and societies choose to use the scarce
resources that nature and previous generations have provided. The key word in this
definition is “choose”. Economics is a behavioural science. In large measure it is the
study of how people make choices. The choices that people make, when added up,
translate into societal choices.


Getting a job is a very hard period in the life of most people. Companies
choose an employee from hundreds of candidates according to special rules, that's
why there're special 'typical' factors, influencing on employer's choice. Among such
factors are: age, sex, experience, family background and marital status, personality
and references. If you're to go to an interview tomorrow, sleep well before it and
don't forget your CV at home - is the basic rule. Moreover, there're some
recommendations, which can help you, for example, to read annual report, or
company newspaper of the company to show your understanding of the corporate
strategy on the interview. What's more, you should choose corresponding dress code
for the interview. Even such advices are to help you make a good impression; some
companies don't want to hire a man, who follows every advice. To illustrate this, I can
quote Artemiy Lebedev, the most famous Russian web-designer: "If you enclose a
standard stupid resume, written by the rules of American bureaucracy, we would
delete it immediately after receiving. If your CV is composed according to all rules,
we wouldn't choose you, as we might think, that your profession is to acquire a job".
After getting a job, you may have some unexpected troubles with boss, too: e.g. if you
dye your hair or wear something not appropriate. The best solution of such situation is
to ask a trade union for advice, which can always help you in your fight with an
employer. Of course, if you affect company discipline not coming in time or working
badly, your dismissal wouldn't be unfair. To conclude, I can say that it is sometimes

hard not only to get a job, but also to work in the staff, and if you don't want to be laid
off, you should follow company rules, it is a must.


In theory, wages ought to change so that the supply and demand in the labour
market are always in equilibrium. In practice, wages are often sticky, especially in a
downward direction when demand for labour falls. In this situation, the fall in
demand results in higher unemployment and many governments impose a minimum
wage that employers must pay.
Firms may choose to pay above the equilibrium wage to increase the
productivity of workers. Such so-called efficiency wages may make workers less
likely to join another firm, so cutting the employer’s hiring and training costs. They
may encourage workers to do a better job. They may also attract a higher quality of
In recent years, employers have tried to reduce wage stickiness by increasing
the proportion of pay that is linked to the performance of their firm. Thus if falling
demand reduces the employer’s profit the pay of its employees falls automatically, so
it does not have to lay off as many workers as it otherwise would.


A minimum rate of pay that firms are legally obliged to pay their workers.
Most industrial countries have a minimum wage, although certain sorts of workers
are often exempted, such as young people or part-timers. Most economists reckon
that a minimum wage, if it is doing what it is meant to do, will lead to higher
unemployment than there would be without it. The main justification offered by
politicians for having a minimum wage is that the wage that would be decided by
buyers and sellers in a free market would be so low that it would be immoral for
people to work for it.
Some economists have challenged this model. Several studies have suggested
that a minimum wage moderately above the free-market wage would not harm
employment much and could (in rare circumstances) potentially raise it. These
studies are not widely accepted among economists. Whatever it does for those in
work, a minimum wage cannot help the majority of the very poorest people in most
countries, who typically have no job in which to earn a minimum wage.


There are several ways of defining inflation. In some contexts it refers to a

steady increase in the supply of money. In others it is seen as a situation where

demand exceeds supply. It seems best, however, to define inflation as a situation in
which the general price level is constantly moving upwards.
In the extreme form of inflation, prices rise at a phenomenal rate and terms
such as hyperinflation, run-away inflation, or galloping inflation have been
used to explain the situation. Germany experienced this kind of inflation in 1923
and by the end of that year prices were one million times greater than their pre-war
level. Towards the end of 1923, paper money was losing half or more of its value
one hour, and wages were fixed and paid daily.
Under conditions of hyperinflation people lose confidence in the currency's
ability to carry out its functions. It becomes unacceptable as a medium of
exchange and other goods, such as cigarettes, are used as money. When things
have become as bad as this the only possible course of action is to withdraw the
currency and issue new monetary units.
Another type of inflation is described as suppressed inflation. This refers to a
situation where demand exceeds supply, but the effect on prices is minimized by the
use of such devices as price controls and rationing. The excess demand still exists and
it will tend to show itself in the form of waiting lists, queues, and black markets.
The most common type of inflation is creeping inflation where the general
price level rises at an annual rate between 1 and 6 percent.


The more competition there is, the more likely are firms to be efficient and
prices to be low. Economists have identified several different sorts of competition.
Perfect competition is the most competitive market imaginable in which everybody is
a price taker. Firms earn only normal profits, the bare minimum profit necessary to
keep them in business. If firms earn more than this (excess profits) other firms will
enter the market and drive the price level down until there are only normal profits to
be made.
Most markets exhibit some form of imperfect or monopolistic competition.
There are fewer firms than in a perfectly competitive market and each can to some
degree create barriers to entry. Thus firms can earn some excess profits without a new
entrant being able to compete to bring prices down.
The least competitive market is a monopoly, dominated by a single firm that
can earn substantial excess profits by controlling either the amount of output in the
market or the price (but not both). In this sense it is a price setter. When there are few
firms in a market (oligopoly) they have the opportunity to behave as a monopolist
through some form of collusion. A market dominated by a single firm does not
necessarily have monopoly power if it is a contestable market. In such a market, a
single firm can dominate only if it produces as efficiently as possible and does not
earn excess profits. If it becomes inefficient or earns excess profits, another more
efficient or less profitable firm will enter the market and dominate it instead.


Money makes the world go round and comes in many forms, from shells and
beads to gold coins to plastic or paper. It is better than barter in enabling an
economy’s scarce resources to be allocated efficiently. Money has three main
• as a medium of exchange, buyers can give it to sellers to pay for goods and services;
• as a unit of account, it can be used to add up apples and oranges in some common
• as a store of value, it can be used to transfer purchasing power into the future.
A farmer who exchanges fruit for money can spend that money in the future; if
he holds on to his fruit it might rot and no longer be useful for paying for something.
Inflation undermines the usefulness of money as a store of value, in particular, and
also as a unit of account for comparing values at different points in time. Hyper-
inflation may destroy confidence in a particular form of money even as a medium of
exchange. Measures of liquidity describe how easily an asset can be exchanged for
money (the easier this is, the more liquid is the asset).


Money illusion is a situation when people are misled by inflation into thinking
that they are getting richer, when in fact the value of money is declining. Whether,
and how much, people are fooled by inflation is much debated by economists. Money
illusion, a phrase coined by Keynes, is used by some economists to argue that a small
amount of inflation may not be a bad thing and could even be beneficial, helping to
"grease the wheels" of the economy. Because of money illusion, workers like to see
their nominal wages rise, giving them the illusion that their circumstances are
improving, even though in real (inflation-adjusted) terms they may be no better off.
During periods of high inflation double-digit pay rises (as well as, say, big increases
in the value of their homes) can make people feel richer even if they are not really
better off. When inflation is low, growth in real incomes may hardly register.


Money supply is the amount of money available in an economy. In the heyday

of monetarism in the early 1980s, economists pounced upon the monthly (in some
countries, even weekly) money-supply numbers for clues about future inflation.
Central banks aim to manage demand by controlling the supply of money through
open-market operations, reserve requirements and changing the rate of Interest (to be
exact, the discount rate).
One difficulty for policymakers lies in how to measure the relevant money
supply. There are several different methods, reflecting the different liquidity of
various sorts of money. Notes and coins are completely liquid; some bank deposits
cannot be withdrawn until after a waiting period. M3 (M4 in the UK) is known as

broad money, and consists of cash, current account deposits in banks and other
financial institutions, savings deposits and time-restricted deposits. M1 is known as
narrow money, and consists mainly of cash in circulation and current account
deposits. M0 (in the UK) is the most liquid measure, including only cash in
circulation, cash in banks’ tills and banks’ operational deposits held at the Bank of
Although it is a poor predictor of inflation, monetary growth can be a handy
indicator of economic activity. In many countries, there is a clear link between the
growth of the real broad-money supply and that of real GDP (gross domestic


Fiscal policy is one of the two instruments of macroeconomic policy. It

comprises public spending and taxation, and any other government income or
assistance to the private sector (such as tax breaks). It can be used to influence the
level of demand in the economy, usually with a goal of getting unemployment as low
as possible without triggering excessive inflation. At times it has been deployed to
manage short-term demand through fine tuning, although since the end of the tabilize
era it has more often been targeted on long-term goals, with monetary policy more
often used for shorter-term adjustments.
For a government, there are two main issues in setting fiscal policy: what
should be the overall stance of policy, and what form should its individual parts take?
Some economists and policymakers argue for a balanced budget. Others say
that a persistent deficit (public spending exceeding revenue) is acceptable provided,
in accordance with the golden rule, the deficit is used for investment (in
infrastructure, say) rather than consumption. However, there may be a danger that
public-sector investment will result in the crowding out of more productive private
investment. Whatever the overall stance on average over an economic cycle, most
economists agree that fiscal policy should be counter-cyclical, aiming to
automatically tabilize demand by increasing public spending relative to revenue when
the economy is struggling and increasing taxes relative to spending towards the top of
the cycle. For instance, social (welfare) handouts from the state usually increase
during tough times, and fiscal drag boosts government revenue when the economy is
As for the bits and pieces making up fiscal policy, one debate is about how
high public spending should be relative to GDP (gross domestic product). In the
United States and many Asian countries, public spending is less than 30% of GDP; in
European countries, such as Germany and Sweden, it has been as high as 40-50%.
Some economic studies suggest that lower public spending relative to GDP results in
higher rates of growth, though this conclusion is controversial. Certainly, over the
years, much public spending has been highly inefficient.
Another issue is the form that taxation should take, especially the split between
direct taxation and indirect taxation and between capital, income and expenditure tax.


It comprises investing directly in production in another country, either by

buying a company there or establishing new operations of an existing business. This
is done mostly by companies as opposed to financial institutions, which prefer
indirect investment abroad such as buying small parcels of a country’s supply of
shares or bonds. Foreign direct investment (FDI) grew rapidly during the 1990s
before slowing a bit, along with the global economy, in the early years of the 21 st
century. Most of this investment went from one country to another, but the share
going to developing countries, especially in Asia, increased steadily.
There was a time when economists considered FDI as a substitute for trade.
Building factories in foreign countries was one way of jumping tariff barriers. Now
economists typically regard FDI and trade as complementary. For example, a firm
can use a factory in one country to supply neighbouring markets. Some investments,
especially in services industries, are essential for selling to foreigners. Who would
buy a Big Mac in London if it had to be sent from New York?
Governments used to be highly suspicious of FDI, often regarding it as
corporate imperialism. Nowadays they are more likely to court it. They hope that
investors will create jobs, and bring expertise and technology that will be passed on
to local firms and workers, helping to sharpen up their whole economy. Furthermore,
unlike financial investors, multinationals generally invest directly in plant and
equipment. Since it is hard to uproot a chemicals factory, these investments, once
made, are far more enduring than the flows of hot money that whisk in and out of
emerging markets.
Mergers and acquisitions are a significant form of FDI. For instance, in 1997,
more than 90% of FDI into the United States took the form of mergers rather than of
setting up new subsidiaries and opening factories.


Free trade means the ability of people to undertake economic transactions with
people in other countries free from any restraints imposed by governments or other
regulators. Measured by the volume of imports and exports, world trade has become
increasingly free in the years since the Second World War. A fall in barriers to trade,
as a result of the general agreement on tariffs and trade and its successor, the world
trade organisation, has helped stimulate this growth. The volume of world
merchandise trade at the start of the 21st century was about 17 times what it was in
1950, and the world's total output was not even six times as big. The ratio of world
exports to GDP had more than doubled since 1950. Of this, trade in manufactured
goods was worth three times the value of trade in services, although the share of
services trade was growing fast.

For economists, the benefits of free trade are explained by the theory of
comparative advantage, with each country doing those things in which it is
comparatively more efficient. As long as each country specializes in products in
which it has a comparative advantage, trade will be mutually beneficial. Some critics
of free trade argue that trade in developing countries, where wages are usually lower
and working hours longer than in developed countries, is unfair and will wipe out
jobs in high-wage countries. They want autarky or fair trade.
Real-world trade patterns sometimes seem to challenge the theory of
comparative advantage. Most trade occurs between countries that do not have huge
cost differences. The biggest trading partner of the United States, for instance, is
Canada. Well over half the exports from France, Germany and Italy go to other
European union countries. Moreover, these countries sell similar things to each other:
cars made in France are exported to Germany, and German cars go to France. The
main reason seems to be cross-border differences in consumer tastes. But the
agricultural exports of Australia, say, or Saudi Arabia's reliance on oil, do clearly
stem from their particular stock of natural resources. Also poorer countries often have
more unskilled labour, so they export simple manufactures such as clothing.


A buzz word that refers to the trend for people, firms and governments around
the world to become increasingly dependent on and integrated with each other. This
can be a source of tremendous opportunity, as new markets, workers, business
partners, goods and services and jobs become available, but also of competitive
threat, which may undermine economic activities that were viable before
The term first surfaced during the 1980s to characterise huge changes that were
taking place in the international economy, notably the growth in international trade
and in flows of capital around the world. Globalisation has also been used to describe
growing income inequality between the world's rich and poor; the growing power of
multinational companies relative to national government; and the spread of capitalism
into former communist countries. Usually, the term is synonymous with international
integration, the spread of free markets and policies of liberalisation and free trade.
The process is not the result simply of economic forces. The decisions of
policymakers have also played an important part, although not all governments have
embraced the change warmly.
The driving force of globalisation has been multinational companies, which
since the 1970s have constantly, and often successfully, lobbied governments to make
it easier for them to put their skills and capital to work in previously protected
national markets. Firms enjoying some national protection, and their workers, have
been some of the main opponents of globalisation, along with advocates of fair trade.
Despite all the talk of globalisation during the 1990s, in some respects the world
economy was more integrated in the late 19th century. The labour market was
certainly more global. For example, the flow of people out of Europe, 300,000 people

a year in the mid-19th century, reached 1million a year after 1900. Now governments
are much fussier about immigration, and people are no longer free to migrate as they
wish. As for capital markets, only in the 1990s did international capital flows, relative
to the size of the world economy, recover to the levels of the few decades before the
first world war.
This early globalised economy did not last for long, however. Between the two
world wars, the flows of trade, capital and people collapsed to a trickle. Even before
the First World War, governments started to put up the shutters against migrants and
imports. Could such a backlash against globalisation happen again?


Labour. One of the factors of production , with land, capital and enterprise.
Among the things that determine the supply of labour are the number of able people
in the population, their willingness to work, labour laws and regulations, and the
health of the economy and firms. Demand for labour is also affected by the health of
the economy and firms, labour laws and regulations, as well as the price and supply
of other factors of production.
In a perfect market, wages (the price of labour) would be determined by supply
and demand. But the labour market is often far from perfect. Wages can be less
flexible than other prices; in particular, they rarely fall even when demand for labour
declines or supply increases. This wage rigidity can be a cause of unemployment.
A flexible labour market is one in which it is easy and inexpensive for firms to
vary the amount of labour they use, including by changing the hours worked by each
employee and by changing the number of employees. This often means minimal
regulation of the terms of employment and weak trade unions. Such flexibility is
characterised by its opponents as giving firms all the power, allowing them to fire
employees at a moment’s notice and leaving workers feeling insecure.
Opponents of labour market flexibility claim that labour laws that make
workers feel more secure encourage employees to invest in acquiring skills that
enable them to do their current job better but that could not be taken with them to
another firm if they were let go. Supporters claim that it improves economic
efficiency by leaving it to market forces to decide the terms of employment.
Labour theory of value is the notion that the value of any good or service
depends on how much labour it uses up. First suggested by Adam Smith, it took a
central place in the philosophy of Karl Marx. Some neo-classical economists
disagreed with this theory, arguing that the price of something was independent of
how much labour went into producing it and was instead determined solely by supply
and demand.


Tax collection is the oldest profession. In its early days, taxation did not always
involve handing over money. The ancient Chinese paid with pressed tea, and Jivara
tribesmen in Brazil stumped up shrunken heads. As the price of their citizenship,
ancient Greeks and Romans could be called on to serve as soldiers and had to supply
their own weapons. The origins of modern taxation can be traced to wealthy subjects
paying money to their king in lieu of military service.
The other early source of tax revenue was trade, with tolls and customs duties
being collected from travelling merchants. The big advantage of these taxes was that
they fell mostly on visitors rather than residents.
Income tax, the biggest source of government funds today in most countries, is a
comparatively recent invention, probably because the notion of annual income is
itself a modern concept. Governments preferred to tax things that were easy to
measure and on which it was thus easy to calculate the liability. This is why early
taxes concentrated on tangible items such as land and property, physical goods,
commodities and ships, as well as things such as the number of windows or fireplaces
in a building.
In the 20th century, particularly the second half, governments around the world
took a growing share of their country’s national income in tax, mainly to pay for
increasingly more expensive defence efforts and for a modern welfare state. Indirect
taxation on consumption, such as value-added tax, has become increasingly important
as direct taxation on income and wealth has become increasingly unpopular.
But big differences among countries remain. One is the overall level of tax. For
example, in United States tax revenue amounts to around one-third of its GDP,
whereas in Sweden it is closer to half. Others are the preferred methods of collecting
it (direct versus indirect), the rates at which it is levied and the definition of the tax
base to which these rates are applied. Countries have different attitudes to progressive
and regressive taxation. There are also big differences in the way responsibility for
taxation is divided among different levels of government.
Arguably, any tax is a bad tax. But public goods and other government activities
have to be paid for somehow, and economists often have strong views on which
methods of taxation are more or less efficient. Most economists agree that the best tax
is one that has as little impact as possible on people’s decisions about whether to
undertake a productive economic activity. High rates of tax on labour may discourage
people from working, and so result in lower tax revenue than there would be if the tax
rate were lower, an idea captured in the laffer curve. Certainly, the marginal rate of
tax may have a bigger effect on incentives than the overall tax burden.
Land tax is regarded as the most efficient by some economists and tax on
expenditure by others, as it does all the taking after the wealth creation is done.
Some economists favour a neutral tax system that does not influence the sorts of
economic activities that take place. Others favour using tax, and tax breaks, to guide
economic activity in ways they favour, such as to minimize pollution and to increase
the attractiveness of employing people rather than capital. Some economists argue
that the tax system should be characterized by both horizontal equity and vertical
equity, because this is fair, and because when the tax system is fair people may find it

harder to justify tax avoidance and tax evasion. However, who ultimately pays the tax
incidence may be different from who is initially charged, if that person can pass it on,
say by adding the tax to the price he charges for his output. Taxes on companies, for
example, are always paid in the end by humans, be they workers, customers or

More than 6,000 famous advertising people from around the world gathered in
Cannes at end of last month for 44th International Advertising Festival.
Many of those looking through 4,000-plus commercials were searching for
multinational advertisers ideal: simple idea that crosses borders and appeals to
people on same level in different markets. Unfortunately most of awards were for
ads created specifically for local markets.
New Ford Puma campaign was created too late for this year’s festival, but
expects to see it shine at 45th. Designed to launch Ford's new sporty coupe across
Europe, it contains that instantly recognisable idea that those multinational
agencies' clients seek.
Essentially, late, great Steve McQueen drives Ford Puma through streets of
San Francisco in manner in which he drove 1960s Ford Mustang in his classic
movie Bullitt. Footage from film, supplied by Warner Brothers, is combined
through use of extraordinary computer technology with footage of Ford Puma. Car
follows one of routes Mustang took in film.
As McQueen 'drives' around city, car receives admiring glances from passers-
by ranging from traffic cop to attractive woman out walking. Finally he pulls into his
garage where he parks Puma alongside original Mustang.


In many Western societies, including the United States, a person who does not
maintain ‘good eye contact’ is regarded as being slightly suspicious, or a ‘shifty’
character. Americans unconsciously associate people who avoid eye contact as
unfriendly, insecure, untrustworthy, inattentive and impersonal. However, in contrast,
Japanese children are taught in school to direct their gaze at the region of their
teacher’s Adam’s apple or tie knot, and, as adults, Japanese lower their eyes when
speaking to superior, a gesture of respect.
Latin American cultures, as well as some African cultures, such as Nigeria,
have longer looking time, but prolonged eye contact from an individual of lower
status is considered disrespectful. In the US, it is considered rude to stare – regardless
of who is looking at whom. In contrast, the polite Englishmen are taught to pay strict
attention to a speaker, to listen carefully, and to blink his eyes to let the speaker know
he or she has been understood as well as heard. Americans signal interest and
comprehension by bobbing their heads or grunting.
A widening of the eyes can also be interpreted differently, depending on
circumstances and culture. Take, for instance, the case of an American and a Chinese

the terms of a proposed contact. Regardless of the language in which the pr5oposed
contract is carried out, the US negotiator may interpret a Chinese person’s widened
eyes as an expression of astonishment instead of a danger signal (its true meaning) of
politely expressed anger.


Secretaries write all kinds of letters for their boss, sometimes on their own
initiative and at other times from dictation. However, the single most important letter
is the one which gets them the job: letter of application, accompanied by a
curriculum vitae/resume (Am). It is courteous to add a follow-up letter if your first
letter resulted in an interview. We will start with these letters.
LETTERS OF APPLICATION are written to a prospective employer or, sometimes,
to an employment agency. Their primary purpose is to obtain an interview, but the
letter also gives the employer an example of your communication skills and creates
the first impression. Most applications are written in response to an advertisement for
a specific job. Study the advertisement carefully and find out as much as you can
about the organization to which you are applying. Make your letter the one that will
be remembered when read. Be confident, enthusiastic and show that you have the
qualifications necessary for the position. Your letter should be neat, well spaced and
free of mistakes.
RESUMES/CURRICULA VITAE (CV) summarize work experience and
qualifications. They allow the employer to see at a glance the extent of the applicant's
education, training and practical experience. Like letters of application, they are
designed to arouse the employer's interest and to lead to an interview.
Follow-up letters are not essential, but it is courteous to write one after an
interview. The letter should thank the person you met for giving you the interview,
and let him or her know that you find the job attractive. A skillful letter would pick
up a point made at the interview and expand on it, as though the conversation were
still continuing. The follow-up letter is usually written within a day or two of the
interview. It is not a bad idea to restate your strongest qualifications, but do it subtly:
overstatement can produce too strong a tone.
The standard letters generated for most manufacturing and service jobs break
down as follows:
1 letters of inquiry, replies;
2 memos (memoranda), transmittals;
3 letters of complaint, positive and negative responses to complaints;
4 sales letters, orders and invoices;
5 requests for credit references, responses granting credit and refusing to grant
6 statements/collection letters, follow-up collection letters.

Then there is the preparation and presentation of reports drafted by the boss,
either written by hand, or dictated. Graphs and charts may also need to be prepared.
A LETTER OF INQUIRY is written to obtain information or to make a request. J A
direct inquiry asks a company about its products or services. Be precise and polite in
explaining what you need in the opening.
REPLIES. Good business and common courtesy require that you answer all letters
even if you are unable to provide the information requested. Response letters should
answer all questions as completely as possible and be sent without delay. Prepare
your responses carefully.
A MEMO (RANDUM) is a note sent within a company. They range from the two-
line note calling a meeting or passing on a telephone message, for example, to
informal reports. Memos differ from letters by having the courtesies at the top of the
page (To:, From:, Re:, Date:). Signatures may not be required. As with letters, memos
provide people with a record for future references and the secretary will normally file
A TRANSMITTAL should always be attached when you send information or
material. A transmittal simply identifies what you are sending and gives your reason
for sending it. Transmittals achieve two goals:
(1) they let the reader know that he/she has received everything you have sent along
with specific instructions concerning what to do with it,
(2) they provide a record of where and when the material was sent and determine who
is responsible for its care.
Always keep a copy of the transmittal for your files.
A LETTER OF COMPLAINT/CLAIM LETTER is written, so that the seller of
goods and services will know that something has gone wrong and will take steps to
correct the situation. Before you write a complaint, however, you might try to solve
the situation by telephone. If the situation is a simple one and the solution is obvious,
a phone call will probably bring the fastest results. If that fails or if the problem is
complex, a letter is the most effective response.
A POSITIVE RESPONSE TO COMPLAINTS. If you never make a mistake you
probably aren't working. Errors happen in the best companies. When you receive a
just complaint from a customer, don't be afraid to admit the mistake. Accept the
responsibility, then solve the problem. Familiarize yourself with your company's
policy for handling complaints. Act promptly, find out what went wrong and then
write the customer a thoughtful letter. The aim of your letter will be to restore the
goodwill of the dissatisfied customer.
always right. After having investigated the complaint you may decide that your
company is not at fault and that the customer is not entitled to his/her requests. You'll
have to write a pro-organization response. You reject the customer's request, maintain
his/her goodwill and explain the organization's position politely. Find a way to make
a small concession or gesture of goodwill, and always thank your client.
A SALES LETTER aims to create interest in your product or service. Always begin
with a strong, compelling statement that will entice and keep your reader's attention.

Pay great attention to the tone of your sales letter. It should sound positive and
convincing. You must create the initial desire for your product. Your sales letter
should convince the reader that your product excels in every respect, that it has
benefits surpassing all competition. Make the product sound great or your service
desirable. However, in the rush to convince, don't forget to include a succinct
summary of the facts. These letters are best when brief; if more information is
needed, it is provided by accompanying literature.
AN ORDER is a common form of correspondence for obtaining equipment, services
and supplies. You must give specific, detailed information in the order letter. It must
(1) model and catalogue number, size, colour and description using correct numbers;
(2) quantity;
(3) price per item, the total price;
(4) specific shipping details (company, date, final destination);
(5) special handling or packaging details;
(6) payment procedures.
But if the order has legal standing, printed order forms are normally used. The
supplier fills in the details of the contract, delivery, insurance and terms of payment.
INVOICES are normally typed onto a numbered pad of pre-printed invoices, or put in
to the computer. One copy goes to the tax inspector. They are extremely brief,
recalling only the main points of the contract, the individual amounts, the running
total, the sales or value added tax, if any, and the final amount. They are not normally
accompanied by a cover letter.
Terms of payment are generally within 30-90 days. Technically, this has legal force,
but is often ignored. A statement/collection letter should automatically be triggered
when payment has not been received.
A STATEMENT/COLLECTION LETTER is collecting payment on overdue
accounts. A common procedure is simply to reissue the bill, along with a reminder
that payment is overdue. The message should suggest that perhaps the customer has
overlooked the previous bill. But you must always be careful in the tone of the
collection procedure or you may lose a valuable customer. Usually two reminders are
sent. If these standard reminders do not bring a response from the customer, write a
collection letter.
You should have two objectives in mind writing a statement/collection letter:
(1) to obtain payment,
(2) to retain the customer's goodwill and future business.
letter goes unacknowledged, it becomes necessary to make collecting the funds your
primary goal. You ask for payment directly and you might even suggest that the
customer call your office in an effort to come to some settlement. Your second
collection letter should appeal to the customer's sense of obligation and the wish to
maintain a good credit rating.
A REQUEST FOR CREDIT REFERENCES. It is a standard procedure to obtain
credit references from individuals or companies planning to establish an account with

you. To do this, it is often necessary to request information about a potential client's
credit. In many countries, this is done by sending a routine enquiry to a credit agency
or to the prospective client's banks. Where the company is embarking on what it
hopes will be a longstanding commitment, enquiries are more varied and will include
getting in touch with suppliers and other companies. The handling of this
information, however, requires tact and confidentiality.
the credit rating of a potential customer, you'll have to write a positive or negative
A response granting credit doesn't have to elaborate on the procedure that you
went through to establish the customer's credit. Instead, welcome the reader as your
client. Briefly outline the credit terms and define your company's billing procedures.
A refusal to grant credit is much more difficult to write. Begin your letter by
thanking your reader for the interest he/she has shown in your company. Then give
your reason for your refusal clearly and tactfully. Be honest, but remember, that one
day he/she may become a desired customer. If there are any favourable aspects of the
reader's financial situation, refer to them. This shows that you have considered all the
information and taken a personal interest in future dealings. It is best to state the
credit refusal in the opening paragraph. End your letter with a positive, confident
tone. Maintain a factual, business like approach throughout.
REPORTS. The key to successful reports is organization. A long report doesn't
indicate hard work, but rather as an inability to be succinct. Open with a brief
summary of all important findings and conclusions. Introduce the purpose of the
report. The body of the report states facts, analyses them, draws conclusions and ends
with recommendations.
GRAPHS AND CHARTS. One picture is worth a thousand words, many authors say.
Graphs and charts are particularly necessary when dealing with numeral and
comparative data. If you thoughtfully employ graphs and charts in your reports, you
can often clarify important points and save yourself a lot of writing.
Besides strictly business letters, secretaries often write official notices, private
invitations, letters of congratulations for all sorts of occasions and letters of
condolence. Secretary generally begins the day opening and sorting the post.


UNIT 1. MAKING CONTACTS …………………………………………………1

UNIT 2. BUSINESS TRAVEL …………………………………………………..10


UNIT 4. COMPANY STRUCTURE ……………………………………………...25


UNIT 6. ADVERTISING ………………………………………………………….37

UNIT 7. MONEY ……………………………………………………………….…44

UNIT 8. EMPLOYMENT ………………………………………………………...53

UNIT 9. CULTURES IN BUSINESS ……………………………………….…….64


ADDITIONAL READING ……………………………………………………….77



Вам также может понравиться