Курченко - Grammar for students to understand business English. Ч.4

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ЛИПЕЦКИЙ КООПЕРАТИВНЫЙ ИНСТИТУТ (ФИЛИАЛ)

ОБРАЗОВАТЕЛЬНОГО УЧРЕЖДЕНИЯ
ВЫСШЕГО ПРОФЕССИОНАЛЬНОГО ОБРАЗОВАНИЯ
«БЕЛГОРОДСКИЙ УНИВЕРСИТЕТ ПОТРЕБИТЕЛЬСКОЙ
КООПЕРАЦИИ»
Л.Л. КУРЧЕНКО
О.В. ЕРМОЛОВА
ENGLISH
FOR BUSINESS COMMUNICATION
Учебное пособие для экономических специальностей
Часть IV
Липецк
2008
3
ББК 81.2 Англ.я 73 Рекомендовано к изданию кафедрой

К 93 гуманитарно-социальных
дисциплин
Протокол № 2 от 26.10.2007
Автор:
Курченко Лидия Леонидовна, старший преподаватель кафедры
гуманитарно-социальных дисциплин Липецкого кооперативного
института
Ермолова Ольга Викторовна, к.п.н., старший преподаватель

кафедры гуманитарно-социальных дисциплин Липецкого
кооперативного института
Рецензент:
Кузовлев Владимир Петрович, к.п.н., профессор, начальник
отдела АСУП издательства «Просвещение»
К 93 Курченко Л.Л., Ермолова О.В.,

English for business communication.
Учебное пособие для экономических
специальностей. Часть 4. / Л.Л.
Курченко, О.В.Ермолова,
- Липецкий кооперативный институт
(филиал) БУПК, Липецк 2008 – с.
Учебное пособие содержит тексты, упражнения в чтении и на

использование языка для самостоятельной работы, ситуативные
упражнения, ролевые игры.
Пособие предназначено для студентов экономических
специальностей.
© Издательство Липецкого кооперативного Института, 2008
4
CONTENTS
Введение………………………….................................... ………4
Unit 4. Accounting
I.Starting-up………………………………………………………….6
II.The bottom line ……………………………………………..…….9
III.Accounting ………………………………………………………10
IV.Bookkeepers, accountants, auditors and controllers …………….11
V.Assets, liabilities and the ballance sheet ………………………….13
VI.Accounts and ballance sheet …………………………………….15
VII.Government accounting ………………………………………..18
VIII.Effective government accounting …………………………….20
IX.Activity ………………………………………………………….21
Unit 5.Foreign Trade
I.Starting-up …………………………………………………………28
II. Foreign Trade ……………………………………………………29
III.Types of payments in foreign trade …………………………….33
IV.Customs tariffs in Russia ………………………………………..36
V.International business …………………………………………….40
VI.Activity …………………………………………………………41
Unit 6.World organisations
I.Starting-up ……………………………………………………….43
II.The World Trade Organisation ………………………………….44
III.International Monetary Fund:objectives and history …………..45
IV.The World Bank …………………………………………………46
V.Activity ………………………………………………………….47
Literature …………………………………………………….. …….49
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Введение
Цель данного пособия – способствовать овладению студентами
современным экономическим мышлением, представить
разнообразные формы работы с оригинальной, адаптированной
литературой для извлечения полной, основной и частичной
информации для расширения экономического кругозора, приобщения
студентов к другим культурам.
Важной задачей пособия является расширение использования
индивидуальных возможностей студентов как в условиях
аудиторной, так и внеаудиторной самостоятельной работы. Таким
образом, индивидуализация и дифференциация обучения составляет
основу методики обучения студентов, так как студент предстает
перед преподавателем как индивид с определенным уровнем
развития способностей, как субъект учебной деятельности,
характеризующийся разной степенью рациональности приемов
выполнения задач, как личность со своим опытом, интересами,
эмоциями и чувствами. Пособие состоит из 6 циклов (Unit). Каждый
цикл включает различные формы индивидуализации и
дифференциации обучения студентов: тексты для работы в аудитории
с преподавателем с извлечением полной информации («Read, say and
discuss»); тексты, содержащие лексико-грамматические упражнения
для самостоятельной работы в аудитории с целью извлечения
основной или частичной информации («Read the text and do exercises
on it in writing»); тексты, содержащие упражнения переводного
характера, помогающие студентам реферировать, читать,
аннотировать тексты по специальности («Read and do exercises in
translation»). Выполнение упражнений в переводе предусматривает
наличие знаний по грамматике в рамках обозначенных программой
тем, а именно знание и умение распознавать и использовать:
- конструкции, выражающие субъектно-предикативные
отношения (с глаголами-связками, с глаголами, выражающими
принадлежность);
- грамматические явления, выражающие действие (в настоящем,
прошлом, будущем) и характер его протекания;
- средства определенности - неопределенности (артикль,
местоимение), единичности - множественности предметов; интенсив-
ности качества, порядка и количества предметов;
- средства выражения определительных и определительно-
обстоятельственных отношений (конструкции с инфинитивом,
причастием, герундием).
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Тексты имеют информационно-повествовательный характер и

разработаны на основе тем, предусмотренных программой; включают
упражнения, развивающие у студентов навыки работы со словарем.
Данное пособие включает лексические, функционально-
смысловые таблицы, которые дают возможность каждому студенту в
силу своих индивидуальных способностей изъясняться на
английском языке, систематизировать и обобщать информацию по
различным проблемам в повседневных ситуациях общения,
профессиональной коммуникации. На основе таблиц организуется
как индивидуальная, так и парная работа со студентами. Ролевые
игры, дискуссии, творческие задания по созданию проектов
компаний организуются после работы над текстом. Для работы с
мотивированными студентами в пособие включены тексты и задания
повышенной сложности со значком (  ). Работа каждого цикла
завершается разделом, содержащим упражнения по обогащению
словарного запаса, развитию навыков самостоятельной работы у
студентов, расширению культурологического и экономического
кругозора.
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UNIT 4. ACCOUNTING
I. STARTING-UP
1. Form all possible words with the help of the following suffexes.
Translate the words.
ability tancy tant

account
ing able
2. Fill each of the gaps below with one appropriate form.

accountancy, accountable, accounting, accountant, accountability.
1) Who are you ________ to in this organization.

2) ________ of local government to Parliament is great.
3) ________ usually specialize in making the most important
financial reports.
4) The_______ of our company is on the second floor.
5) _________ is said to be the main language of accountants.
3. Match the words (1-13) connected with “accounting” with their

definitions (a-m). Study them.
1) auditor a) a written statement of money paid or owed for goods or
services
2) withdraw b) to give a satisfactory record of money in one’s care
3) report c) required or expected to give an explanation of one’s
actions, expenditure
4) communicate d) a person whose profession is to keep or check financial
accounts
5) entity e) money gained in business esp the differences between the
amount earned and the amount spent
6) transaction f) a person who officially examines the accounts of a
company
7) accountable g) a spoken or written account of smth heard, seen, done,
studied
8) account for h) a person whose job is keeping records of the financial
smth affairs of a business
9) accountant i) to obtain gradually or gather together an increasing
number or quantity of smth
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10) bookkeeper j) a piece of business done /cheque /credit /cash transactions

11) profit k) a thing with distinct and independent existence
12) accumulate l) to move or take sb/smth back or away
13) account m) to make smth known
4. Getting paid
1) Study these notions.

A) Shipping and billing
When you ask to buy something, you order it, or place an order for
it. When the goods are ready, they are dispatched or shipped to you.
An invoice is a document asking for payment and showing the
amount to pay. The activity of producing and sending invoices is
invoicing or billing.
B) Trade credit
Vaclav is talking about his furniture business:
'Of course, we don't expect our business customers to pay
immediately. They are given trade credit, a period of time before they
have to pay, usually 30 or 60 days. If a customer orders a large quantity
or pays within a particular time, we give them a discount, a reduction in
the amount they have to pay.
But with some customers, especially ones we haven't dealt with
before, we ask them to pay upfront, before they receive the goods.
Like all businesses, we have a credit policy, with payment terms:
rules on when and how customers should pay. This is a part of
controlling cash flow, the timing of payments coming into and going out
of a business.'
C) Accounts
Jennifer and Kathleen are businesswomen. Jennifer has her own
company in Britain and Kathleen owns one in the US.
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The people and organizations

we sell to are our customers or
accounts. The most important
ones are key accounts.
I'm waiting to be paid by

by one of my customers.
These are my debtors.
They owe me money. The customers that I'm
waiting to be paid by are my
accounts receivable or
The suppliers and other receivables.
organizations that I owe
money to are my creditors.
I must remember to pay
tax to the Inland Revenue
on time!
There are some companies that owe

me money, but I get the feeling I'm
never going to get paid: they're bad
debts and I've written them off.
Jennifer Kathleen
2. A) Put these events in the correct order

1. Messco dispatched the goods to Superinc.
2. Superinc ordered goods from Messco.
3. Superinc eventually settled the invoice.
4. Superinc did not pay the invoice on time.
5. Two weeks later, Superinc had still not received an invoice,
making them think. Messco's invoicing was not very efficient.
6. Someone in accounts at Messco chased the invoice by phoning the
accounts department at Superinc.
7. When the goods arrived, Superinc noticed there was no invoice
and asked Messco to issue one.
8. Messco's accounts department raised an invoice and sent it to
Superinc.
B) Complete these sentences using expressions from В opposite.

1. ................ is a constant problem. I get materials from suppliers on
a 30-day payment basis, bur I'm supplying large companies who pay me
on a 60-day payment term.
2. With some types of new wine, you can pay a special price ........and
wait for it to be delivered in about ten months’ time.
3. Small businesses complain that larger companies
abuse………….by paying invoices too slowly.
4. We offer a two per cent .......................for payment within ten
days.
5. We have a very strict……………: our .... are that everyone pays
within 30 days.
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C) Replace the underlined words with expressions from С

opposite, using British English.
My name's Saleem and I own a clothing company. Our (1) most
important customers are department stores. Getting paid on time is
very important and we have an employee whose job is to chase (2)
people who owe us money. Of course, we pay (3) suppliers and other
people we owe money ro as late as possible, except the (4) tax
authorities, who we pay right on time! Luckily, I haven't had much of a
problem with (5) people who don't pay at all, so we haven't had to (6)
decide not to chase them any more.
II. THE BOTTOM LINE
1. Study these notions.

A) Accounts
Hi, I’m Fiona and I’m an accountant. I work in Edinburgh for one of
the big accountancy firms. We look at the financial records or accounts
of a lot of companies. We work with the accountants of those companies,
and the people who work under them: the bookkeepers. I like my
profession: accountancy.
Sometimes we act as auditors: specialist outside accountants who
audit a company’s accounts, that is, we check them at the end of a
particular period to see if they give a true and fair view (an accurate and
complete picture). An audit can take several days, even for a fairly small
company.
When a company’s results are presented in a way that makes them
look better than they really are, even if it follows the rules, it may be
accused of creative accounting or window dressing. Of course, I never
do this!
The profession is called accountancy (BrE) or accounting (AmE). The
activity is called accounting (BrE and AmE).
B) Results
‘A firm reports its perfomance in a particluar period in its results.
Results for a particular year are shown in the company’s annual report.
This contains, among other things, a profit and loss account.
In theory, if a company makes more money than it spends, it makes a
profit. If not, it makes a loss. But it’s possible for a company to show a
profit for a particular period because of the way it presents its activities
under the rules of another. My firm operates in many countries and we are
very aware of this!
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A pre-tax profit or pre-tax loss is one before tax is calculated. An

exceptional profit or loss is for something that is not normally repeated,
for example the sale of a subsidiary company or the costs of restructing. A
company’s gross profit is before charges like these are taken away; its
net profit is afterwards. The final figure for profit or loss is what people
call informally the bottom line. This is what they really worry about!
If a company is making a loss, commentators may say that it is in the
red. They may also use expressions with red ink, saying, for example,
that a company is bleeding red ink or haemorrhaving red ink.
BrE: profit and loss account
AmE: income statement
III. ACCOUNTING
1. Read the text, understand the contents.

Accounting can be defined as the measuring and recording of all
relevant financial data concerning a particular entity, that is business,
government organization, etc.
Financial reporting is the communicating of such information in an
appropriately summarized form. In the UK such a summarized form is
called «Accounts». In the USA it is called «Financial statements». These
accounts or statements are communicated to interested parties both within
and outside the organization.
Financial reporting provides information that is useful to present
potential investors, creditors and other users in making rational
investment, credit and other economic decisions.
Accounting is often referred to as the «language of business», and, as
a direct result of the work of accountants and auditors. A wide range of
different users of financial reporting are able to answer questions such as:
How much profit did the company make last year?
How much should I lend to the company?
Is this company more successful than its competitors?
How much can I withdraw from the company?
Was last year improvement over the year before?
Accountants are therefore those individuals specialized in the «art» of
capturing the correct data and preparing the most meaningful financial
reports from that data. They are «producers» of financial information,
which is then made available to «consumers» such as owners and lenders.
Accountants are assisted in their work by bookkeepers, who operate
some form of accounting system, usually computerized, to help capture,
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accumulate categories, summaries and report many thousands of

transactions that affect an economic entity every year.
2. Use the word in bold to complete the second sentence so that it

has a similar meaning to the first.
2.1 Accounting can be defined as the measuring and recording of all
data.
is sure
Accounting __________ as the measuring and recording of all
financial data.
2.2 Financial reporting provides information that is useful to present
potential investors, creditors, other users in making economic decisions.
provided
Information ____________________ to present potential investors,
creditors, other users in making economic decisions.
2.3 Accounting is often referred to as the “language of business”.
is said
Accounting __________________ to as the “language of business”.
2.4 Accountants are therefore those individuals specialized in the
«art» of capturing the correct data and preparing the most meaningful
financial reports from that data.
specialized
Accountants ____________ in the «art»of capturing the correct data
and preparing the most meaningful financial reports from that data.
2.5 Accountants are assisted in their work by bookkeepers.
assist
Bookkeepers _________ accountants in their work.
IV. BOOKKEEPERS, ACCOUNTANTS, AUDITORS AND

CONTROLLERS
You are going to read the article about bookkeepers, accountants

and controllers. Eight sentences have been removed from the article.
1. First read the text and understand the contents. Pay no

attention to gaps.
Bookkeepers deal in taxes, cash flow, which include cash receipts and
cash disbursements, sales, purchases and differend business transactions
of the company. 1________________. At the end of a period, usually a
month, the totals of each book of original entry are posted into the proper
13
page of the Ledger.2_________________. On the basis of all the totals of

each account in the Ledger, the bookkeepers prepare a Trial Balance.
Trial Balance is usually drawn up every quarter.
The accountant’s responsibility is to analyse and interpret the data in
the Ledger and the Trial Balance.
3__________________________________. No expansion or
reorganization is planned without the help of the accountant. New product
and advertising campaigns are also prepared with the help of the
accountant. The work of accountants is rather sophisticated.
4________________________________. Certified accountants in
England are called chartered accountants. In the USA the certified
accountants are called certified public accountants.
5___________________. Junior employees in large companies, for
example, offer practice accounting and then take the examination.
The chief accounting officer of a large company is the Controller, or
Comptroller. Controllers are responsible for measuring the company’s
performance. 6____________________________. This position is very
close to the top executives of the company.
2. Then choose from the text sentences (A-G) the one which fits
best each gap (1-6).
A. The Ledger shows all the expenditures and all the earnings of the
company.
B. Many accountants have special certificates after they pass
examinations to the institute of accountants.
C. The accountant is to determine the ways in which the business may
grow in the future.
D. They interpret the results of the operations, plan and recommend
future actions.
E. These auditors are internal auditors.
F. But it is not necessary to have a certificate to practice accounting.
G. Bookkeepers first record all the appropriate figures-in the books of
original entry or journals.
3. Answer the following questions in a written form. Say what
these professions are involved in.
— What do bookkeepers deal in?
— What is an accountant responsible for?
— What are controllers engaged in?
4.Make up questions beginning with the given words, not
changing the contents of the first one.
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— What does Ledger show?

Could you tell me __________.
— How does the bookkeeper prepare a Trial Balance?
Could you let me know _________.
— Is expansion or reorganization planned without the help of the
accountant?
Can you find out _________.
— Do accountants always take the examination?
I’d like to know _________.
— Is the position of a controller very close to the top executives of
the company?
Do you think _________.
— What way do auditors review financial records?
I wonder _________.
V. ASSETS, LIABILITIES AND THE BALANCE SHEET
1. Study these notions.

A) Assets
CURRENT ASSETS
FIXED ASSETS
INTANGIBLE ASSETS
An asset is something that has value, or the power to earn money.

These include:
current assets: money in the bank, investments that can easily be
turned into money,money that customers owe, stocks of goods that are
going to be sold.
fixed assets: equipment, machinery, buildings and land.
intangible assets: things which you cannot see. For example,
goodwill: a company’s good reputation with existing customers, and
brands: established brands have the power to earn money.
If a company is sold as a going concern, it has value as a profit-
making operation, or one that could make a profit.
B) Depreciation
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Joana Cassidy is head of IT (Information Technology) in a publishing

company:
‘Assets such as machinery and equipment lose value over time
because they wear out, or are no longer up-to-date. This is called
depreciation or amortization. For example, when we buy new
computers, we depreciate them or amortize them over a very short
period, usually three years, and a charge for this is shown in the financial
records: the value of the equipment is written down each year and
written off completely at the end.
The value of assets at any one time is its book value. This isn’t
necessarily the amount that is could be sold for at that time. For example,
land or buildings may be worth more than shown it the accounts, because
they have increased in value. But computers could only be sold for less
than book value.’
C) Liabilities
Liabilities are a company’s debts to suppliers, lenders, the tax
authorities, etc. Debts that have to be paid within a year are current
liabilities, and those payable in more than a year are long-term liabilities,
for example bank loans.
D) Balance sheet
A company’s balance sheet gives a picture of its assets at the end of a
particular period, usually the 12-month period of its financial year. This is
not necessarily from January to December.
2. Chose the best word from the brackets ( ) to fill the gap in each
sentence.
RETAIL BUSINESS FOR SALE:
£125,000
1. Newsagent’s shop for sale as a going (buseness/ concern/
.................. . outler)
2. ............... assets include shop, fittings and a (Permanent/ Firm/

new delivery van. Fixed)
3. The estimated ............... value of these (book/ invoice/ paper)
assets is £ 120,000.
4. ................. assets include stock worth £ (Current/ Present/
15,000. Actual)
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5. The most important ............... asset is our (invisible/ invaluable/

good reputation. intangible)
6. The .................. of our customers is (goodness/ goodwill/
included in the asking price. goodbye)
3. Complete each of the numbered sentences (1-5) by writing one

word in the gap. The first letter has been given to help you.
Over time the equipment that a company owns loses value.
1. For example, computers and other IT equipment _d_ _ _ _ _ _ _
very quickly.
2. When we do our accounts, we _a_ _ _ _ _ them over three years.
3. So the value of a $6,000 PC is _w_ _ _ _ _ _ down by a third in the
first year.
4. The depreciation of $2,000 is shown as a _c_ _ _ _ _ in our
financial records.
5. Depreciation of all assets is shown on the _b_ _ _ _ _ sheet at the
end of the year.
4. Choose the best word from the brackets ( ) to fill the gap.
1. Our .................... include a € 12,000 tax bill and the € 8,000 we
owe our suppliers.
(assets/ debtors/ liabilities)
2. Our .................... are valuable because they have good customer
recognition.
(brands/ types/ makes)
3. Company cars depreciate quickly. We write them .................
completely after five years.
(up/ out/ off)
4. Our ..................... year runs from the 1st of June to the 31st of May.
(financial/ revenue/ capital)
5. Our only ...................... liability is a € 10,000 bank loan to be paid
off over five years.
(current/ long-term/ fixed)
VI. ACCOUNTS AND BALANCE SHEETS
1. Read the text and understand the contents.

From the Trial Balance, prepared by the bookkeeper, the accountant
creates a Profit and Loss Statement and Balance Sheet.
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A Profit and Loss Statement or a Profit and Loss Account, shows the
income or loss of the company for the period. The Profit and Loss
Statement is made only on the basis of those accounts of the Ledger which
affect the profit and loss of the company. The profit and Loss Statement
may contain the following items:
 Sales Profit after tax

 Trading profit Dividends
 Depreciation Profit retained
 Rent received Earnings per share
 Interest paid
 Profit before tax
 Tax
The other accounts of the Ledger which reflect the assets, liabilities,
and capital of the firm make up a Balance Sheet. This shows the net worth
or book value of the company.
A Balance Sheet made up for Johnson and Co., a specimen company,
may appear as follows:
BALANCE SHEET
Johnson and Co.
31 December, 199x
Assets
Cash $5500
Petty cash fund 100
Accounts Receivable 750
Notes Receivable 100
Inventory
Merchandise on hand 2080
Furniture and Fixtures 2750
Total Assets $11280
Liabilities
Accounts payable 800
Notes payable 500
Total liabilities 1300
Capital
Johnson Capital at the beginning 8000
Profit for the period 1980
Total capital 9980
Total capital and liabilities $11280
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The two sides of the Balance Sheet that is Total Assets and Total
Capital and Liabilities are always to be equal.
2. Read the text again about accounts and balance sheets. For
statements 1-7 choose the correct answer A, B, C or D.
2.1 It is quite clear from the text that Trial Balance

includes__________.
a) profit and balance sheet
b) statements and total assets
c) liabilities and capital
d) profit and loss statement and balance sheet
2.2 The accountant will never forget to include____________ into
Profit and Loss statement.
a) merchandise on hand
b) tax
c) total capital
d) two sides of the balance sheet
2.3 A Profit or Loss Account shows___________.

a) inventory
b) petty cash fund
c) dividends
d) income and loss
2.4 On the basis of all the totals of each account the bookkeeper
prepares_________ .
a) accountant’s report
b) trial balance
c) auditor’s report
d) balance sheet
2.5 ________ is said to be the most important thing in work of a book

bookkeeper.
a) account
b) Ledger
c) Balance sheet
d) capital of the firm
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3. Find in the text and write down words which have the following
meaning:
a) a debt, financial obligation
b) a thing, esp. property owned by a person, company, that has value
and can be used or sold to debts
c) wealth and property that can be used to produce more wealth
d) a regular payment made for the use of land, buildings, machinery
e) a part or portion of a larger amount which is divided among several
or many people
f) the condition that exists when two opposites are equal or in correct
proportions
g) advantage, benefit
h) a book in which a bank, a business firm records its financial
accounts.
4. Fill each of the gaps below with the words listed in an

appropriate form.
ledger, capital, balance, interests, rents, assets, liabilities, share.
1. His __________ included shares in the company and a house in

France.
2. A business is in need of a substantional injection of new
__________ .
3. _________ are going up again.
4. They have to minimize his tax __________ .
5. We each pay an equal _________ in the profits.
6. This newspaper maintains a good ____________ .
7. Deside what is in the ____________ of shareholders.
8. He was asked to inspect the sales ______________.
VII. GOVERNMENT ACCOUNTING
1. Read the text and understand the contents.

1. A number of concrete events have contributed to the change in
attitude that permitted this transformation of government accounting.
First, over the years, the size and complexity of government
operations have increased as the government has become engaged in
procuring complex machinery and using it for a variety of purposes. This
development created the need for a system that would facilitate the
20
maintenance of records of assets as well as data for the computation of

fixed and variable costs.
2. Second, economic management has begun to make more demands
on the type and timely supply of accounting information. In particular,
changes in the domestic economy, such as inflation, hyperinflation, or
recession, require adjustments in historical data for analytical purposes.
3. Third, accounting data became necessary to measure the
performance of organizations so as to serve the immediate purpose of
policy formulation and the broader purpose of accountability.
Accountability has evolved from being limited to the observance of laws
and the regulations to being concerned with the use of allotted resources
and the effectiveness with which those resources are used. Fourth,
accounting has to address not only immediate liabilities but also those that
would be redeemed at a later stage. It became imperative to strengthen
accounting system so that they would be able to measure and disclose
these liabilities.
4. Fifth, the role of external aid and related conditionally required the
adoption of internationally accepted government standards for
maintenance of accounts. As most of the aid was used for specific
commercial or quasi-commercial purposes, it required the introduction of
the commercial type of accounting in those areas of government that were
funded by foreign aid. Similar insistence on standards by regional
organizations, such as the European Union, also contributed to major
changes in the accounting practices of member countries as well as those
aspiring to become members.
2. Match the following questions (1-5) with answers (a-e).

2.1 Why has the government become engaged in procuring complex
machinery and using it for a variety of purposes?
2.2 What do changes in the domestic economy require?
2.3 Is accounting data necessary for government accounting?
2.4 Does accounting have to address only immediate liabilities?
2.5 What did external aid require from the government accounting?
a) they require adjustments in historical data for analytical purposes.
b) it has also to adress those liabilities that would be at a later stage.
c) the size and complexity of government operations have increased.
d) it required the introduction of commercial type of accounting.
e) accounting data became necessary to measure the performance of
organizations.
21
3. Match the words in italic with words that could replace them
from (a-e).
1) A number of concrete events have contributed to
the change in attitude that permitted this a) requirements
transformation of government accounting.
2) This development created the need for a system
that would facilitate the maintenance of records of b) brought into
assets as well as data for the computation of fixed and being
variable costs.
3) Economic management has begun to make more
demands on the type and timely supply of accounting c) reinforce
information.
4) It became imperative to strengthen accounting
systems so that they would be able to measure and d) donated
disclose these liabilities.
5) Similar insistence on standards by regional
organizations, such as the European Union, also
contributed to major changes in the accounting e) affair
practices of member countries as well as those aspiring
to become members.
4. Write down sentences containing: a) gerund (§ 1, 3); b) infinitive

(§2) with “to”. Translate them into Russian.
VIII. EFFECTIVE GOVERNMENT ACCOUNTING
Read the text and think of one word that best fits each space.
Performed, account, data, standards, balance, differences,
accounting, control, entities, flow, benefits, levels, latter.
The need of central agencies tend to be different from those of the

spending agencies or the legislature. Essentially, these 1___________
reflect basic distinctions between macro and micromanagement.
2_________ is the common instrument of both. Standards may thus not
always be uniform and may, in certain cases, take into 3___________ the
unique features of an agency.
The standards must represent a 4____________ between what is
needed and what is practicable. If the 5_____________ is substantially
different from the former, a phased implementation program may be
appropriate. In some cases, the existing 6___________may need to be
22
replaced or modified, and the need as well as the utility of the proposed
standards should be dearly demonstrable. The standards should be dear
and viable. Above all, there should be a balance between the costs
incurred in developing the standards and the expected 7_____________ .
The standards are not substitutes for operations, nor do they consist of
forms designed for the purpose of recording 8_________ . They provide
the rationale, the philosophy, and the objective as well as the meaning
for the regular accounting activity in a public entity.
The applicability of the standards to government and its
9____________ raises two issues. These standards may not necessarily
apply to all 10______________of government. The increasing
decentralization of responsibilities implies that most of the talks that were
hitherto 11_____________ by the central government would be
performed at the provincial, regional, state, and local levels. But a Major
part of the funding for these tasks may continue to 12__________from the
central government in the form of either shared revenues or block grants.
In either event, the lack of congruence between resources and
responsibilities make it imperative to establish standards for operational
13____________and accounting system at all levels.
IX. ACTIVITY
1. What do you Know About Money?

1. Why do public companies publish annual reports?
2. Who uses the information in a profit and loss account?
3. A balance sheet shows total assets and total liabilities: Which term
refers to what the company owns and which refers to the company’s
debts?
4. Do the directors or the shareholders own the company?
5. A dividend is the share of the ______________ that the
shareholders receive.
6. Which word means the total sum of money which is coming into
the company?
7. Profit minus the costs associated with preparing the goods for sale
is called gross/net profit.
8. The total profit without subtracting costs and overheads is called
gross/net profit.
23
2. Bookkeeping as Part of Accounting Cycle
Read the text and do a written translation.

For management of any company to be efficient, extensive and
accurate information concerning receipts and payments, assets and
liabilities, depreciation of assets and other data about company status are
required. Such information being obtained mainly from different records,
additional funds and time should be invested in bookkeeping and
accounting system.
In general, accounting and bookkeeping mean identifying, measuring,
recording economic information about any business, bookkeeping being
considered the preliminary stage and pan of the larger field of accounting.
The task of bookkeeping is to ensure the record-keeping aspect of
accounting and therefore to provide the data to which accounting
principles are applied in the preparation of financial statements.
Bookkeeping provides the basic accounting data by systematical
recording such day-to-day financial information as income from the sale
of products or services, expenses of business operations such as the cost
of the goods sold and overhead expenses’ such as a rent, wages, salaries.
Accounting principles determine which financial events and
transactions should be recorded in the bookkeeper’s books. The analysis
and interpretation of these records is the primary function of accounting.
The various financial statements produced by accountants then provide
managers with the basis for future financial planning and control, and
provide other interested parties (investors, the government) with useful
information about the company.
Modern accounting system is considered to be a seven-step cycle. The
first three steps fall the bookkeeping function, such as: 1) the systematic
recording of financial transactions; 2) the transferring of the amounts from
various journals to general ledger (also called “posting step”); 3) the
drawing up of the trial balance.
Record keeping of companies is based on a double-entry system, due
to which each transaction is recorded on the basis of its dual impact on the
company’s financial position. To make a complete bookkeeping record of
every transaction in a journal, one should consider interrelated aspect of
every transaction, and entries must be made in different accounts to keep
the ins (receipts) and outs (payments) balanced.
A typical account is known to have two sides: the items on the left
side are called debits, while the items on the right side are credits.
24
Thus, double-entry bookkeeping doesn’t mean that the same

transaction is entered twice, it means that the same amount of money is
always debited to one account and credited to another account, each
record having its own effect on the whole financial structure of the
company. Certain accounts are increased with debits and decreased with
credits, while other accounts are increased with credits and decreased with
debits.
In the second step of the accounting cycle, the amounts from the
various journals are usually monthly transferred to the company’s general
Ledger – a procedure called posting. Posting data to the ledgers is
followed by listing the balances of all the accounts and calculating
whether the sum of all the debit balances agrees with the sum of all the
credit balances. This procedure known as the drawing up of a trial balance
and those that follow it usually take place at the end of the fiscal year. By
making a trial balance, the record-keeping accuracy can be checked. The
trial balance having been successfully prepared, the bookkeeping portion
of the accounting cycle is completed.
The double-entry system of bookkeeping enables every company to
determine at any time the value of each item that is owned, how much of
this value belongs to creditors, the total profit and how much belongs to
the business clear of debt. Thus, one advantage of the double-entry system
is that its information is complete enough to be used as the basis for
making business decisions. Another advantage is that errors are readily
detected, since the system is based on equations that must always be in
balance.
3. Test 1
3.1. For each sentence, choose the best word to fill the gap from the
alternatives given. Put a circle around the letter, A, B or C, of the word
you choose.
1. This company was set up as a small family …………… in 1977.
A. empire B. corporation C. business
2. Sally Green is on the board of ……………… .
A. directors B. founders C. managers
3. Tom East is the ……………….. executive in charge of Marketing.
A. chief B. head C. Senior
4. Last year we made ……………. of £ 1.5 million.
A. liabilities B. profits C. finances
25
5. The corporate …………… we try to present is of a business that

truly values its customers.
A. image B. logo C. ladder
6. We …………. about 20 people in our London office and most have
been with us for years.
A. hire B. employ C. appoint
7. Each year, we …………….. two or three graduates as trainee
managers.
A. recruit B. qualify C. situate
8. We pay reasonable salaries and offer excellent fringe ............... .
A. perks B. tips C. benefits
9. Next month we are going to .................. two new products.
A. forecast B. innovate C. launch
10. We have carried out a lot of market .................. over the past year.
A. focus B. research C. development
3.2. Write the abbreviations below in words. One word has been
given in each case to help you.
1. HR H _ _ _ _ _ Resources
2. IT I _ _ _ _ _ _ Technology
3. CEO Chief E _ _ _ _ O _ _ _ _
4. CAD C _ _ _ _ Assisted D _ _ _ _ _
5. RSI Repetitive S _ _ _ _ I _ _ _ _ _
6. PLS P _ _ _ _ _ L _ _ _ _ _ _ _ Company
3.3. Match each sentence beginning (1-5) with the correct ending.
Write the letter (a-f) of the ending you choose in the box below. There is
one extra ending that you don’t have to use.
1) The company has equal a) I was offered early retirement
opportunities
2) Please send your application b) with a covering letter, by Monday
form, 9th May.
3) The health and safety inspection c) policy to fight discrimination.
noticed
4) Last month, I achieved my sales d) candidates had to do psychometric
target tests.
5) When the firm downsized, e) that the fire extinguisher was
missing.
f) so I got a performance-related bonus.
26
4. Test 2
4.1. For each sentence, choose the best word to fill the gap from the
alternatives given. Put a circle around the letter, A, B or C, of the word
you choose.
1. We do our printing in-house but we .................. delivery to a small,
local company.
A. supply B. source C. subcontract
2. We have set up quality ....................... as part of our TQM system.
A. circles B. lines C. corners
3. We need a ................... market economy where the government
doesn’t try to control prices.
A. base B. low C. free
4. Until last year they .................. the market but now they face some
stiff competition.
A. penetrated B. dominated C.
segmented
5. Our new .................. protects our eggs on the way to the shops and
it looks good on the shelves.
A. production B. packaging C.
promotion
6. If you want to save some money buy ................ products rather the
top brands.
A. generic B. durable C.
consumer
7. If you pay cash for this TV we will give you a 5% ................... .
A. hike B. sale C. discount
8. Our prices are low because we cut out the ................ and sell
directly from the factory.
A. middleman B. marketer C.
manufactures
9. Customers who use our .................. card get one point for every
pound they spend.
A. franchise B. sponsorship C. loyalty
10. We had nearly 5,000 ................... to our website last week.
A. hits B. visitors C. views
11. We can increase our profit ................. by reducing our overheads.
A. account B. margin C. costs
12. We’ve made a loss for the past three years but we should break
..................... this year.
A. even B. up C. Our
27
4.2. Match each sentence beginning (1-5) with the correct ending.
Write the letter (a-f) of the ending you choose in the box below. There is
one extra ending that you don’t have to use.
1) Our only long-term liability is a) profit of $ 1.2 million for last year.
2) Syntectic PLS reported a pre- b) the learning curve has been very
tax steep.
3) We fell behind with our c) we can sell the stock in our
repayments so warehouse.
4) Next time I’m going to trade d) they started undercutting us.
up to
5) Now we’ve got the product e) a £ 5,000 bank loan over three
right, but years.
6) We’ll solve our cash flow f) they sold the house we’d put up as
problem collateral.
g) Something at the hign end or the
range.
4. Succes and failure.

Translate from English into Russian.
A) Cash mountains and surpluses
Predaco is a successful company. Over the years, it has distributed
some profits or earnings to shareholders, but it has also kept profits in
the form of retained earnings and built up its cash reserves; it is sitting
on a cash pile or cash mountain. These reserves may be used for
investment or to make acquisitions: to buy other companies.
B) Debt and debt problems
Here are some expressions that can be used to talk about company's
debts, or country's foreign debts:
repayment when a company repays its debt and/or

servicing interest on it; 'debt repayment’ describes a
particular amount repaid
burden a company’s debt, especially when considered
as a problem
debt
crisis when a company has serious difficulty

repaying its
rescheduling when a company persuades ledgers to change
restructuring repayments dates and terms
default when a company fails to make a debt
repayment
28
Note:
reschedule repay
to a debt to default on a debt
restructure service
C) Turnarounds and bailouts

Doomco is in financial trouble and it is being described as sick, ailing
and troubled. They've called in a company doctor, Susan James, an expert
in turning round companies. There may be a turnaround and Doomco
may recover. But if there is no recovery, the company may collapse
completely. Ms James is currently looking for another company to bail out
Doomco by buying it. This would be a bailout.
D) Bankruptcy
If a company is in serious financial difficulty, it has to take certain
legal steps.
In the US, it may ask a court to give it time to reorganize by filing
for bankruptcy-protection from creditors, the people it owes money
to.
In Britain, a company that is insolvent, i.e. unable to pay its debts,
may go into administration, under the management of an outside
specialist called an administrator.
If the company cannot be saved, it goes into liquidation or into
receivership. Receivers are specialists who sell the company's assets
and pay out what they can to creditors. When this happens, a company is
wound up, and it ceases trading.
A company in difficulty that cannot be saved goes bankrupt.
29
UNIT 5.FOREIGN TRADE

I. STARTING - UP
1) Match the words with their definitions. There is one extra word
(1 - 16 ) that you don’t need.
1 Competition a) to test the ability of smb; to stimulate

2 Leader b) to try to win sth by defeating others who are trying to do
the same
3 Follower c) a supply of smth that a company, an organization or an
individual has and can use to increase wealth
4 Niche d) a condition or circumstance that puts one in a favourable
position compared to other people
5 Challenge e) a person or thing that leads
6 Advantage f) work, especially hard physical work
7 Compete g) an opportunity in business
8 Specialize h) to bring goods, services, ideas from a foreign country
into one’s own country
9 Relations i) activity in which people compete
l0 j) a supporter of a particular person, cause, belief
Consumption
11 Export k) links, contacts or dealings between people, group or
countries
12 Import 1) the using up of food, energy, resources
13 Labour m) to become an expert in a particular subject branch; to
give a particular attention to a product
14 Resources n) to sell and transport goods to a foreign country
2) The following sentences contain phrases connected with the

word "competition" Put one of the given words in each of the
sentences.
relations, import, niche, leader, advantage, challenge, competition,
consumption, competing, resources, labour, specializing, exported.
1. We are in with several other companies for the contract.
2. Gas and oil always increases in cold weather.
3. The job doesn't really him.
4. Several companies are with each other to gain the
contract.
30
5. He has the of a steady job.

6. The company lacks the financial to invest in new
technology.
7. This country is a world in wealth care.
8. relations between workers and employers leave much
to be desired.
9. A company should find a in the market.
10. There is a shop in this district in hand-made chocolate.
11. The country has to most of its raw materials.
12. Currently only 5% of their output is .
13. Friendly exist between our two countries.
II. FOREIGN TRADE

1) Read the text and understand contents.
What is now called international trade has existed for thousands of
years. Long before there were nations with specific boundaries. Foreign
trade means the exchange of goods and services between nations, but
speaking strictly in economic terms, international trade today is not
between nations. It is between producers and consumers or between
producers in different parts of the globe. Nations do not trade, only
economic units such as agricultural, industrial, and service enterprises can
participate in trade.
Goods can be defined as finished products, as intermediate goods used
in producing other goods, or as agricultural products and foodstuffs.
International trade enables a nation to specialize in those goods it can
produce most cheaply and efficiently and it is one of the greatest
advantages of trade. On the other hand, trade also enables a country to
consume more than it can produce if it depends only on its own resources.
Finally, trade expands the potential market for the goods of a particular
economy. Trade has always been the major force behind the economic
relations among nations.
Different aspects of international trade and its role in the domestic
economy are known to have been developed by many famous economists.
International trade began to assume' its present form with the
establishment of nation-states in the 17th and 18th centuries, new theories
of economics, in particular of international trade, having appeared during
this period.
In 1776 the Scottish economist Adam Smith, in “The Wealth of
Nations”, proposed that specialization in production leads to increased
31
output and in order to meet a constantly growing demand for goods it is

necessary that a country's scarce resources be allocated efficiently.
According to Smith's theory, it is essential that a country trading
internationally should specialize in those goods in which it has an absolute
advantage — that is, the ones it can produce more cheaply and efficiently
than its trading partners can. Exporting a portion of those goods, the
country can in turn import those that its trading partners produce more
cheaply. To prove his theory Adam Smith used the example of Portuguese
wine in contrast to English wool.
Half a century later, having been modified by the English economist
David Ricardo, the theory of international trade is still accepted by most
modern economists. In line with the principle of comparative advantage it
is important that a country should gain from trading certain goods even
though its trading partners can produce those goods more cheaply. The
comparative advantage is supposed to be realized if each trading partner
has a product that will bring a better price in another country than it will at
home. If each country specializes in producing the goods in which it has a
comparative advantage, more goods are produced, and the wealth of both
buying and selling nations increases.
Trade based on comparative advantage still exists: France and Italy
are known for their wines, and Switzerland maintains a reputation for fine
watches. Alongside this kind of trade, an exchange based on a competitive
advantage began late in the 19th century. Several countries in Europe and
North America having reached a fairly advanced stage of industrialization,
competitive advantage began to play a more important role in trade. With
relatively similar economies countries could start competing for customers
in each other's home markets. Whereas comparative advantage is based on
location, competitive advantage must be earned by product quality and
customer acceptance. For example, German manufacturers sell cars in the
United States, and American automakers sell cars in Germany, both
countries as well as Japanese automakers competing for customers
throughout Europe and in Latin America.
Thus, international trade leads to more efficient and increased world
production, allows countries to consume a larger and more diverse amount
of goods, expands the number of potential markets in which a country can
sell its goods. The increased international demand for goods results in
greater production and more extensive use of raw materials and labour,
which means the growth of domestic employment. Competition from
international trade can also force domestic firms to become more efficient
through modernization and innovation.
32
It is obvious that within each economy the importance of foreign trade

varies. Some nations export only to expand their domestic market or to aid
economically depressed sectors within the domestic economy. Other
nations depend on trade for a large part of their national income and it is
often important for them to develop import of manufactured goods in order
to supply the ones for domestic consumption. In recent years foreign trade
has also been considered as a means to promote growth within a nation's
economy. Developing countries and international organizations have
increasingly emphasized such trade.
2. For statements 1 - 10 chose the best answer from А, В, С or D.

2.1. The theory of international trade is used by
a) nations with specific boundaries
b) economic units
c) enterprises
d) by most modern economists
2.2. Adam Smith was the first to propose
a) exchange of goods
b) trading partners
c) specialization in production
d) potential markets
2.3. Comparative advantage implies
a) to bring a better price to the producer
b) to increase world productions
c) to rise the growth of domestic employment
d) to expand the domestic market
2.4 Nowadays foreign trade is said
a) to aid economically depressed sectors in the world
b) to be a means to promote growth within a nation's economy
c) to produce cheap goods
d) to increase agricultural products and foodstuffs
2.5 Comparative advantage is based on
a) new theories of economics
b) on country's scarce resources
c) location
d) national income
2.6. Comparative advantage appeared in
a) 1776
b) 1786
c) 17 and 18 centuries
33
d) the 19 century
2.7. Long ago the main task of foreign trade was to
a) expand trade relations
b) accept specialization
c) exchange goods and services between nations
f) develop similar economies
2.8. Competitive advantage depends on
a) location
b) home markets
c) product quality and customer acceptance
d) similar economies
2.9. Comparative advantage was modified in
a) France and Italy
b) North America
c) Switzerland
d) Scotland
2.10. To compete in the international market domestic firms must
have
a) efficient economy
b) modernized economy
c) innovative economy
d) all of these
3) Find a word or phrase in the text that means:

a) a large amount of money property
b) A condition or circumstances that puts one in a favorable position
compared to other people
c) involving comparison or comparing
d) involving people competing against each other
e) the exchange of goods and services for money or other goods
f) a place or position
g) of on inside a particular country, not foreign or international
4) Choose a sentence that reflects the main idea.

 Trade enables a country to consume more.
 Trade expands the potential market for the goods of a particular
country.
 Nations depend on trade for a large part of their national income.
 International trade leads to more officient and increased world
production, expands the number of potential markets in which a country
34
can sell its goods, allows countries to consume a larger and more diverse
amount of goods.
III. TYPES OF PAYMENTS IN FOREIGN TRADE.
1) Read the first part of the text and say what types of payments
are used in Foreign Trade.
I. Payment of goods supplied in the local trade is a rather simple
matter. It is made either in advance or within a sensible short period after
delivery. If a buyer fails to pay, there comes legal action after which
payment can be enforced.
The matter is different in foreign trade because a great deal of time is
spent on correspondence, despatch and delivery. It is here that banks play
a fundamental part. Their services have to be paid for, but are not
expensive and always necessary - the bank comes into each transaction at
this or that stage.
Payments in foreign trade are usually made by:
1. banker's transfer;
2. bill of exchange;
3. letter of credit.
As well as in the local trade, payment may be made a) in advance; b)
on open account. Payments in advance are used 1) when a buyer is in
urgent need; 2) when a buyer is unknown to a seller; 3) in the case of a
single isolated transaction. The method of payment in these cases will
probably be by banker's draft or banker's transfer.
Open account terms are granted by a seller to a buyer of
unquestionable reputation in whom he has complete confidence, e.g.
regular customers, agents or distributors. In these cases payment is made
quarterly by bill of exchange or banker's transfer.
II 1) Read this part of the text. Use the words given in capitals at
the end of each line to form a world that fits in the space in the same
line.
The banker's transfer is a mere transference of money 1. Buy
from the bank account of 1. a in his own country 2. Sell
to the bank account of the 2. in the seller's 3. Necessity
country. It is only3. for the customer to send a 4. Instruct
letter of 4._________ to his bank or use a 5. 5. Specially
form. The transfer is executed at 6. rates of 6. Currency
exchange and subject to any exchange control 7. of 7. Regulate
the countries concerned.
35
2) Read this part of the text. Look carefully at each line. Tick (v)
the lines which are correct and underline the unnecessary.
The bill of exchange (B/E) is a written of order from a ____of_____
creditor to a debtor to pay on demand or at a specified
date to a stated sum of money to a person named on the
bill, or to his an order. The bill is drawn by the creditor on
the debtor, and is sent to the debtor or his agent to pay
from or accept (to acknowledge the debt). The debtor
accepts it through the signing his name on the front of the
bill, together with the date. The bill becomes now legally
binding', and the acceptor must meet it at or before the
due date. Failure to meet the bill on the due to date will
result in total discredit for the creditor, and legal action ____________
can follow. An unpaid bill is called "dishonoured", and ____________
the creditor can protest it, which gives to him the right to
prosecute the debtor.
1) Read this part of the text and decide which answer А, В, С, or D

fits best each space.
The letter of credit (L/C) is the 1 generally used method
2 payment in the export trade. It starts with the buyer
3 instructs his bank to issue the L/C for the amount of the
purchase and in favour of the seller. The buyer's bank 4 this
instruction, a special 5 form containing full details of the
transaction, to its agent (a bank cooperating with it) in the seller's country.
On 6 the instruction, the agent bank informs the seller about
the credit. The seller can now 7 out the buyer's order, knowing
that when he 8 so, money will be paid at once by the agent
bank. The buyer is equally secure, because the agent bank will pay 9
his behalf only if the conditions of the transaction 10
completely by the seller.
A L/C may be paid to the seller not immediately upon execution of the
order, if there 11 an agreement 12 the seller
and the buyer the agent bank can accept a bill of exchange 13
by the seller on the agent bank. The buyer gets credit and the action is
absolutely safe for the seller, who 14 discount the bill for
ready cash if he needs it.
36
a b с d
1 more most much many
2 in by of for
3 who what which that
4 is sending sends to send sent
5 being printed printing printed to print
6 being received to receive received receiving
7 to carry carry carried carrying
8 does has done had done have done
9 on in by from
10 executed are ...executed are ... executing execute
11 is Will be are has
12 besides apart from between among
13 having drawn to draw drawing drawn
14 can may should ought
4. Translate into English:

1) Одним из наиболее часто употребляемых способов оплаты во
внешнеторговых операциях является аккредитив.
2) Владелец векселя может продать его банку по номинальной
стоимости.
3) Оплата товара отечественным поставщикам производится
обычно или посредством предоплаты или в течение некоторого
разумного периода времени после поставки товара.
4) Вы можете оплатить данный товар по текущему курсу обмена
валюты.
5) Условия оплаты по открытому счету предоставляются по
покупателю с безупречной репутацией.
6) Номинальная стоимость; денежное обеспечение;
индоссировать документ (сделать передаточную надпись); пущенный
в обращение вексель; дисконтировать вексель (снижать учетный
процент при досрочной оплате)
5. Fill in the required prepositions:

1) Payment goods the home trade is made
either advance or a reasonably short
period delivery.
2) There is little time lost correspondence and
delivery.
37
3) A bill exchange is an order written form

addressed one person another to pay demand one
demand or a named date a certain sum money __
or his order.
4) The banker's transfer is carried current rates
exchange.
5) This transaction is simple and may be speeded
cabled instructions if desired.
6) The L/C is ideal individual transactions or
series, it gives protection both the seller and the buyer.
6. Read the text. Look carefully at each line. Use the words in
capitaes to form a new word that fits in tha spaces in the same line.
One of the 1 features of the bill of exchange is 1 Importance
that it is 2 . It means that it can be used by the 2 Negotiate
holder to pay his own debts. To do this, the 3 of 3 Hold
the B/E must endorse it, i.e. sign his name on the bill before 4 Hand
it in to the next holder. The 4 of the bill can also 5 Own
sell it to the bank, who will pay face value, less interest: this is 6 Count
called to 5 a bill. The other way to 7 Usage
a bill is to leave it as security for a loan. 8 Know
It is due to its free negotiability that the B/E is 9 Pay
to be a useful means of 6 in foreign trade. 10 Success
Undoubtedly, its 7________operating depends on confidence
and trust. Before handling bills each company's status and 11 Individuality
reputation are thoroughly checked and taken into account.
IV. CUSTOMS TARIFFS IN RUSSIA
1. Read the text and answer the questions below the text.
In every country import-export rates are supposed to fulfil four
functions:
- to protect home producers from foreign competition in order to
increase their own competitiveness in the domestic market;
- to limit exporting products in which there is a shortage in this
country and to regulate foreign trade transactions for political interests;
- to supply local consumers, both legal entities and individuals,
with products which are not produced in this country or produced
insufficiently;
- to provide the state budget with additional financial resources.
38
In order to put these issues into practice, the Russian government

changed its import rates in 1994. The change of import duties' affects
mostly the status of foodstuff imports. Inflation and the subsequent price
increases energy, equipment and other materials make storage, processing
the products and their packing very expensive. Foreign suppliers have the
opportunity to sell products at lower prices, though sometimes their
products are of lower quality. Food intervention of imported goods has led
to the reduction in the production of some agricultural products inside
Russia. So the change of customs tariffs is based on an objective necessity
to protect local commodity producers and does not conflict with the
General Agreement on Tariffs and Trade. Customs duties are levied only
on those types of products which are produced in sufficient quantities.
The level of imposition by import rates was increased at an average of
five to seven percent. Formely, the import rates were, calculated as a
percentage of the customs value of the imported goods. At the present time
there is a universal order for introducing rates as an absolute sum for the
imported unit (kilogram, liter, piece) value. For some types of agricultural
products, mainly fruits and vegetables, seasonal duties with limited
duration are in force.
Apart from the duties on foodstuffs the duties on some types of
industrial products have also been increased. This step of the government
is related to the fact that during the last several years Russian industry has
experienced difficulties connected with the success of sale of imported
cars, electronics, and some other types of industrial import. Duty rates
have been increased on different transport vehicles, on completing articles
for assembling electronics and computers, on consumer electronics and on
metal-cutting machines. The minimum duty sums per one item for cars
depend now on the engine volume and the year of production.
The regulations for granting a delay in payment for import duties have
also been changed. Previously, the delay was permitted for a period of no
more than thirty days. This delay was granted to the importer with no
additional fees or expenses. Under the new regulations, this period is
prolonged up to sixty days, but a certain interest is collected throughout
the whole duration of the delay.
Export duties in Russia were set up in 1992. At that time world prices
were much higher than internal ones and export was highly profitable,
though it seriously hurt the level of domestic consumption. Nowadays, in
relation to the increase in domestic prices, the existence of export duties
39
negatively affects the ability for long-term export deals. So export duties
are supposed to be cancelled in future.
Answer the following questions:

1) When did the Russian government change import duties rates?
2) What did this change mostly effect?
3) What was the result of inflation?
4) How does food intervention influence the home agriculture?
5) What are customs duties levied on?
6) What do the duty sums for cars depend on?
2. Look through the text again and find: a) ing-forms and

infinitives; d) translate sentences including them into Russian.
3. Use the word in bold to complete the second sentence so that it

has a similar meaning to the first.
a) Export duties in Russia were set up in 1992.
They _______in 1992
b) Russian government changed its import rates in 1994.
Import rates__________________________________in 1994.
c) Apart from the duties on foodstuffs the duties on some types of
industrial products have also been increased.
increased
The government____________________________apart from the
duties on foodstuffs.
d) Foreign suppliers have the opportunity to sell products at lower
prices.
don't miss the opportunity
Foreign suppliers _____________________________________at
lower prices.
e) The change of import duties affects mostly the status of foodstuff
imports.
is sure
The status of foodstuff
imports_______________________________the change of import duties.
f) Food intervention of imported goods has led to the reduction in the
production of some agricultural products inside Russia.
that
It was____________________________of some agricultural products
inside Russia.
40
4. Read the text again and think of words which best fits each
space.
1. All taxes, customs duties and other charges levied
connection the performance this Contract
Russia are to be paid the Sellers and those levied outside
Russia are to be paid the Buyers.
2. The simplest form a tariff is one which consists
a single column levying the same rate duty all
imports.
3. addition customs duties proper, many
countries levy extra charges one kind or another. The most
common form is a surtax charged as a percentage the duty.
4. The internal taxes are a different kind. They are
collected imports many countries. These are usually levied
the same rate as similar products domestic
origin. Included this category are sales taxes, excise taxes,
V.A.T., turnover and transaction taxes, and the like.
5. Value added tax (VAT)
Read the text and say what VAT is;

Value Added Tax (VAT) is a Government tax. At present the standard
VAT rate is 17,5 %. Everyone in Britain must pay VAT on almost
everything they buy. VAT is usually incorporated in the price.
Visitors to Britain can reclaim the tax when they leave Britain and
present the appropriate documents issued by she shop. Usually when they
buy rather expensive things like furs, gold, hi-fi goods etc., they should
wonder if the shop operates the VAT scheme.
6. Give the English equivalents of:

Hалоговая ставка; таможенные сборы; взимать налог (3
варианта); дополнительное налогообложение (2 варианта);
внутренний (федеральный) налог; налог на продажу; акцизный сбор;
налог с оборота; налог на добавленную стоимость; взимать
определенный процент от стоимости товара за хранение
дополнительные финансовые ресурсы; ставки импортной пошлины;
продовольственные промышленные товары; оборудование; хранение,
переработка и упаковка товаров, таможенные тарифы; ввозная
таможенная пошлина; уровень налогообложения; стоимость единицы
41
товара; сезонные пошлины; комплектующие; уровень внутреннего

потребления; в среднем.
7. Retell the text according to the following plan:

1) The functions of import-export rates.
2) Customs tariffs as an objective necessity to protect a local market.
3) The increase of import rates.
4) The problem of export duties.
V. INTERNATIONAL BUSINESS
1. Read the text and choose a suitable word that fits best each
space
International business is 1 in importance. The United
States is 2 the biggest exporter and the biggest importer in
the world. About 25,000 U.S. firms are engaged in some types of
international business activity.
The concept of international business includes the concepts of balance
of trade (the relationship 3 exports and imports) and balance
of payments (the difference between inward and outward cash flows).
Countries are usually better off if they 4 in certain
products or commercial activities. A country has 5 absolute
advantage in marketing a product if it is in a monopolistic position or
produces the item at the lowest cost. It has a comparative advantage if it
can supply the product more efficiently or at 6 cost than it
can supply other products. Some countries refuse 7 because
they want to be self-sufficient, particularly in certain strategic areas.
The five levels of involvement in world business are casual or
accidental exporting, active exporting, foreign licensing, overseas
marketing by the firm, and foreign production and foreign marketing. The
three primary obstacles to world business 8 economic, social,
and cultural obstacles; tariffs and trade restrictions; and political and legal
obstacles.
There 9 a movement toward multinational economic
integration in many parts of 10 world. Three basic formats
exist: the free trade area, the customs union, and the common market or
economic union. Multinational corporations are those operating
internationally-have become11 dominant in foreign markets that in
12 countries they are now the object of close scrutiny.
Companies 13 abroad should act fairly and responsibly.
42
a b c d
1 is grown growing grows grew
2 both either neither every
3 beside apart from between among
4 well specialize specialized has specialized specialize
5 an a the -----------------
6 low lower lowest lowers
7 specializing specialize specializes to specialize
8 are is have has
9 will be is Have been has been
10 ------------------ an the a
11 such such as so The same as
12 any several In great deal of plenty
13 operating operated being operated operate
VI ACTIVITIES
1. International Relations
A summit meeting
1. Put each of the following words or phrases in its correct place

in the passage below.
summit meeting breakdown leader item spokesperson

news conference preliminary settle hold agenda
The American President and the Russian (a) have announced their
intention to (b)_______________ a (c) in Vienna next month. The
two countries have already had (d) talks and decided on an (e) for the
meeting. The main (f) _________ will be a discussion about the nuclear
arms situation. At a (g) ________ he d in Washington yesterday a
government (h) ______________ told journalists that the unfortunate
(i)____ of last year's talks between the two countries had been caused by
disagreements over arms. He said the Vienna meeting would be a chance
for the two nations to (j) ______ their differences.
Diplomatic relations
43
2. Put each of the following words or phrases in its correct place

in the passage below.
diplomatic relations ambassadors split embassies

in protest at resume links break off
Neighboring countries A and B had always had very good, close

relations, but in 1992, owing to a disagreement over the exact location of
the border between them, a (a) began to develop. Finally, in 1994, (b)
_ military activity by country B near the border, country A announced
its intention to (c) (d) with country B. Both countries
withdrew their (e) _ __ and the
(f; in the two countries were closed down, it is hoped that a solution
will be found and that it will be possible to (g) normal trade,
cultural and diplomatic (h) as soon as possible
3 Put one of the following words in each space in the sentences

below.
in for over of on at about by
(a) The French leader hasn't yet decided _____ a date the
meeting.
(b) At a summit meeting each country is represented its head
of
government.
(c) The announcement was made ________ a news conference
Moscow.
(d) ___________________ The ambassadors had a discussion the
peace treaty
(e)The breakdown the talks surprised everyone.
(f) The American ambassador walked out of the meeting protest
__________________________________ the Russian speech
(g) A spokeswoman said there was some disagreement
the agenda __________________________ the meeting
44
UNIT 6. WORLD ORGANISATIONS
I. STARTING – UP
1. Match the words with their definitions
№ words definitions
a) to give smth, esp money on goods, to help a
1 Organization
person or an organization
2 Tariff b) a tax paid on imports
3 Negotiations c) a rule or restriction made by an authority
4 Transition b) a tax paid on imports
e) the process or period of changing from one state
5 Currency
or condition to another
6 Duty f) working together for a common purpose
7 Customs g) of money or currency
h) the taxes that must be paid to the government on
8 Monetary
goods brought in from other countries
9 Regulations I) a tax charged on particular goods esp on imports
10 Total j) a system of money used in a country
11 Contribute k) discussion aimed at reaching an agreement.
12 Consultation l) a meeting for discussion.
13 Cooperation m) the activity of organizing smth.
2) Fill in gaps with the most suitable word. One word is extra
which you don’t need.
Transition, customs, regulations, negotiations, organization,

contribute, monetary, currency, total, consultations.
1. She is brilliant but her work lacks .

2. Top tevel on trade matters between the American and
Chinese delegations took place yesterday.
3. A settlement was reached after lengthy .
4. The firm made a profit of $ 200000.
5. This organization is engaged in of banking and tax
laws.
6. They supported a single European .
7. The have seized large quantifies of smuggled heroin.
8. The unit of Japan is yen.
45
9. Will the country be able to make a peaceful to

democracy?
10. Everyone should if they possibly can.
II. THE WORLD TRADE ORGANISATION
1. Read the text and decide which answer A, B, C or D best fits

each gap
The World Trade Organisation (WTO),1 is the successor
of the General Agreement on Tariffs and Trade (GATT), 2 on I
January 1995, and is the legal and institutional basis of the multilateral
trading system. It provides the principal contractual obligations 3
how governments frame and implement domestic trade legislation and
regulations.
The essential functions of the WTO 4 :
- administering and implementing the multilateral and
plurilateral trade agreements which together make up
the WTO;
-5 as a forum for multilateral trade negotiations;
- seeking to resolve trade disputes;
- overseeing national trade policies;
- cooperating 6 other international institutions involved in
global economic policy-making.
In accordance with the «most favoured nation» (MFN) clause,
members 7 grant to the products of other members no less
favourable treatment than that accorded to the products of 8
other country. Quotas are generally outlawed, but tariffs or customs duties
are legal in the WTO. The WTO extends previous GATT rules that laid
down the basis on which governments could impose compensating duties.
The WTO Agreement agriculture is designed to provide on 9 fairness
in farm trade. The WTO agreement
10 intellectual property will improve conditions of competition.
And 11 agreement will do the same for trade in services. GATT
provisions encouraging industrialized countries 12 to assist trade
of developing nations are maintained in the WTO.
Developing countries are given transition periods to adjust to the
13 WTO provisions. Least-developed countries are given 14
more flexibility for their goods.
The WTO authorities are: the Ministerial Conference, the General
Council, three Councils: for Trade in Services for Trade-Related Aspects
46
of intellectual property rights four Committees: on Trade and

Development, on Balance of Payments, on Trade and Environment, on
Budget, Finance and Administration. The Secretariat is located to 15
Geneva
a b c d
1 what whose which who
2 establishes was established established has been
established
3 having determined to determine determining
determined
4 have is are were
5 to act acting being acted acts
6 at by for with
7 dare to have to are to is to
8 no some any several
9 to increase having increasing increased
increased
10 at on with for
11 other the other another others
12 to assist to assisting to have being assisted
assisted
13 difficulter more difficult most a more difficult
difficultest
14 same even so such
15 the ---------- a an
III. The European Economic Community and the European Union
Read the text and think of one word which best fits each gap. You will
have to use some of the words more than once.
Currency, to, establishment, of, the, member, on, customs, with,

established, or, services, objective, among, in, economic.
The European Economic Community, the Common Market,

or the EEC was in 1957 by the Treaty of Rome. The original six
member countries of the Community were France, West Germany, Belgium,
47
Italy, Luxembourg and Netherlands. Then a few other countries

joined the Community. Britain, together the Irish Republic and
Denmark, joined the EEC on 1st January, 1973.
The Community formed an enormous trading area of almost 250
million people, and accounted for two fifths the world's trade.
The membership allowed imports to enter member countries either
free of duty or at lower duties.
All member countries contributed а common budget for
certain purposes, based on relative total output of goods and
, or gross national product.
Under the Community regulations, people of countries were
allowed to enter freely another member state to travel or to work there.
The of the original six members of the Treaty of Rome was to
create a process leading towards the goal of unification.
This political purpose was spelled out in 1969 in Hague
where the objective of «paving the way for a united Europe» was recognised
and was realfirmed in 1983 in the Stuttgart Solemn Declaration; and in 1986
in the Single European Act, member states undertook «to transform
relations as a whole their states into a European Union, and
stipulated that the European Communities and European Political
Cooperation would have as their objectives to contribute together to ma
king concrete progress towards European Unity».
The process creating an economic involvement and
dependence that would go far to meet most member states ultimate goal
of European Unity was realised 1992 with the signing at
Maastricht of the Treaty on European Union, which set as its objective
the establishment of «a European Union... a new stage in the
process of creating an ever closer union among the peoples of
Europe». Provision was made for the Union become a
reality through, inter alia, the establishment of and
monetary union, including the creation of a single (the euro) and
the introduction of Union citizenship (and eventually removal of frontiers,
under the Shengen System).
IV. International Monetary Fund: objectives and history
1. First read the text and answer the questions :

a) What is the purpose of IMF?
b) What are the functions of IMF?
48
The purpose of the International Monetary Fund (IMF) is to promote

international monetary cooperation through a permanent institution
that provides the machinery for consultation and collaboration on
international monetary problems. The function of the IMF is to
facilitate the expansion and balanced growth of international trade, to
promote orderly and stable foreign currency exchange market, and to
contribute to balance of payments adjustment. The IMF monitors
members' macroeconomic policies makes financial resources available to
them in times of balance of payments difficulties, and provides them
with technical assistance.
Much of the IMF's work is centered on annual consultations with each
member country to ensure that its national policies in the area of economic
growth, price stability, financial conditions, and exchange rates take into
account their consequences for the world economy and avoid unfair
exchange policies. To ensure compliance with these basic tenets. the
Fund is empowered to exercise firm surveillance over the exchange rate
policies of member countries.
2) Read the text again and find in it words which mean the following:
1 the quality or state of being stable
2 to the progress of smth or support smth
3 a reason for doing smth; a function of smth
4 a sum of money saved or made available for a particular purpose
5 a measurement of how fast or how many times happens in relating to
6 smth else
7 doing something or working together for a common purpose
8 careful watch kept on sb suspected of doing wrong
help
V. The World Bank
First Read the text, paying no attention to gaps, and understand the
contents. Consult a dictionary.
The world bank is a sister institution to the IMF and was set up at the same
time. 1______________. While IMF exists to provide short-term loans,
the purpose of the World Bank is to provide long term loans to assist
economic development.
The World Bank is the world's foremost intergovernmental
organization concerned with the external financing of the economic
growth of developing countries. 2______________.
49
Before recommending a Bank loan, the staff of the Bank must be

reasonably satisfied that the productivity of the borrowing country will be
increased and that the prospects for repayment are good. A country must
be judged creditworthy. Engineering investigations are frequently
carried out to determine the probable relation of a proposed project to
benefits and costs. The Bank has shifted somewhat away from
project lending for example a dam or a highway or a port); it has become
concerned with education and other human services, the environment, and
structural adjustment loans, the modification of governmental policies that
are thought to have impeded long-run growth. 3________________.
Recently it has acceded to the requests of the American secretary of the
treasury to help ease the huge, outstanding, largely commercial-bank debt.
Voting power in the Bank is determined by the size of each member nation's
subscription. 4_____________. Ultimate power rests with the Board of
Governors of the Bank. The governors meet annually in September. The day-
to-day affairs of the Bank are determined by executive directors who live
permanently in Washington, D.C. They hire a president, who hires a staff.
5________________.
Read the missing sentences (a-e) then read the text again. Choose the
sentence which fits best each gap.
a) By tradition, rather that law, the President of the Bank is an American,

usually a banker, proposed by the president of the United States.
b) The Bank has also paid increasing attention to the evaluation of previous
lending.
c) Subscriptions are based on a formula that takes into account such
variables as the value of each nations foreign trade and its total output.
d) It has now some 150 member countries.
e) The official title of the Institution is the International Bank for
Reconstruction and Development.
50
LITERATURE
1.Market Leader.Intermediate Business Course.D.Cotton, D.Kent,2001.
2.Countdown. To First Certificate. Oxford. M.Duckworth and
K.Gude. 2004.
3.Business Vocabulary in Use. Professional English. Bill Mascull, 2004.
Cambridge.
4.Test your Business Vocabulary in Use. Tricia Aspinall and G.Bethell.
Cambridge University, 2004.
5.А.Д.Пароятникова, М.Ю.Полевая. Английский язык для
гуманитарных вузов.
6.Right Word, Wrong Word. L.G.Alexander,2001.
7.Intermediate Vocabulary. B.J.Thomas,2000.
8.В.П.Кузовлев, Н.А.Лапа. English Student’s book, 2000.
9.Oxford Advanced Learner’s Dictionary,1998.
10.English Grammar: reference and practice. Н.И.Петряева,
Г.А.Глебова,
Белгород, 2006.
11.Английский язык. Методические указания для студентов-
заочников неязыковых специальностей. Белгород, 1998.
12.Шевелева С.А., Стогов В.Е. Основы экономики и бизнеса:
Учебное пособие по англ. языку.- М.: Культура и спорт, ЮНИТИ,
2002.
51
Учебное издание
КУРЧЕНКО ЛИДИЯ ЛЕОНИДОВНА

ЕРМОЛОВА ОЛЬГА ВИКТОРОВНА
ENGLISH
FOR BUSINESS COMMUNICATION
Учебное пособие
для экономических специальностей
Технический редактор Губанова И.А.

Компьютерная верстка Кузнецова Г.В.
Гарнитура Таймс. Типография.

Усл.печ.л. 3,1. Тираж 100 экз.
Издательство Липецкого кооперативного института

398002, г.Липецк, ул. Зегеля, 25а
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ЛИПЕЦКИЙ КООПЕРАТИВНЫЙ ИНСТИТУТ (ФИЛИАЛ)

Учебное пособие для экономических специальностей

ББК 81.2 Англ.я 73 Рекомендовано к изданию кафедрой

Ермолова Ольга Викторовна, к.п.н., старший преподаватель

К 93 Курченко Л.Л., Ермолова О.В.,

Учебное пособие содержит тексты, упражнения в чтении и на

© Издательство Липецкого кооперативного Института, 2008

Тексты имеют информационно-повествовательный характер и

ability tancy tant

2. Fill each of the gaps below with one appropriate form.

1) Who are you ________ to in this organization.

3. Match the words (1-13) connected with “accounting” with their

10) bookkeeper j) a piece of business done /cheque /credit /cash transactions

1) Study these notions.

The people and organizations

I'm waiting to be paid by

There are some companies that owe

2. A) Put these events in the correct order

B) Complete these sentences using expressions from В opposite.

C) Replace the underlined words with expressions from С

II. THE BOTTOM LINE

1. Study these notions.

A pre-tax profit or pre-tax loss is one before tax is calculated. An

1. Read the text, understand the contents.

accumulate categories, summaries and report many thousands of

2. Use the word in bold to complete the second sentence so that it

IV. BOOKKEEPERS, ACCOUNTANTS, AUDITORS AND

You are going to read the article about bookkeepers, accountants

1. First read the text and understand the contents. Pay no

page of the Ledger.2_________________. On the basis of all the totals of

— What does Ledger show?

V. ASSETS, LIABILITIES AND THE BALANCE SHEET

1. Study these notions.

An asset is something that has value, or the power to earn money.

Joana Cassidy is head of IT (Information Technology) in a publishing

2. ............... assets include shop, fittings and a (Permanent/ Firm/

5. The most important ............... asset is our (invisible/ invaluable/

3. Complete each of the numbered sentences (1-5) by writing one

VI. ACCOUNTS AND BALANCE SHEETS

1. Read the text and understand the contents.

 Sales Profit after tax

2.1 It is quite clear from the text that Trial Balance

2.3 A Profit or Loss Account shows___________.

2.5 ________ is said to be the most important thing in work of a book

4. Fill each of the gaps below with the words listed in an

1. His __________ included shares in the company and a house in

VII. GOVERNMENT ACCOUNTING

1. Read the text and understand the contents.

maintenance of records of assets as well as data for the computation of

2. Match the following questions (1-5) with answers (a-e).

4. Write down sentences containing: a) gerund (§ 1, 3); b) infinitive

VIII. EFFECTIVE GOVERNMENT ACCOUNTING

The need of central agencies tend to be different from those of the

1. What do you Know About Money?

2. Bookkeeping as Part of Accounting Cycle

Read the text and do a written translation.

Thus, double-entry bookkeeping doesn’t mean that the same

5. The corporate …………… we try to present is of a business that

4. Succes and failure.

repayment when a company repays its debt and/or

crisis when a company has serious difficulty

C) Turnarounds and bailouts

UNIT 5.FOREIGN TRADE