UNIT  1                         BUSINESS COMMUNICATION

 

1.1 COMMUNICATING IN BUSINESS

 

1. Communication is the process by which information is exchanged in a number of ways:

-   through the written word; - through the spoken word;

-   through pictures and diagrams;

-   through facial expressions, behaviour and posture; - through non-verbal sounds.

2.                   The functions of business communication. We communicate in business for a number of different reasons, and the methods we use will depend on the reasons, the circumstances, and perhaps the people with whom we are communicating. These are some of the reasons why we may need to communicate with others in a business setting:

-  to pass on information

-  to persuade people to buy a product or use a service

-  to discuss an issue

-  to recommend a course of action

-  to make or answer a request

-  to make or answer a complaint

-  to keep a record of something that has happened or been agreed - to explain or clarify a situation - to give an instruction.

3.                   Clearly, to cover such a variety of situations, you will need to be able to use a range of different methods and styles. Your style and

tone are unlikely to be the same if you are making a request, for example, as if you are making a complaint. You are also more likely to speak to an interlocutor than to write to them if you want to discuss an issue, whereas a record of something that has happened would need to be in writing.

4.                   Whether you communicate in writing or orally will depend on the circumstances, and to some extent on the person or people you are addressing.

5.                   The main reasons for communicating orally are:

-                      To have a discussion. It is very difficult to hold a meaningful discussion by letter, memo or e-mail.

-                      To receive instant feedback from your audience. Speaking to someone means that you do not have to wait for their response. However, this can sometimes be a disadvantage; in some circumstances, a considered response might be better.

-                      To be able to judge your audience’s reaction to what you are saying. This usually only applies in face-to-face communication, but it can sometimes be useful to be able to judge from your audience’s comments, expressions or body language what they think of what you are saying and perhaps adapt your style or tone accordingly.

-                      For speed. Even the fastest typist or writer cannot match the speed at which we speak, so if you want to communicate something quickly, it might be better to do so orally.

-                      If the person with whom you are communicating has initiated the conversation. If you are responding to an oral request, for example, you are likely to do so orally, unless your response is so complex that it would be better explained in writing.

6. The main reasons for communicating in writing are:

-                      To retain a permanent record. A conversation can be forgotten, misunderstood or even deliberately twisted. But if something is in writing (and if it is well written), everyone who reads it will be sure to get the right information. It also provides something to refer to if there is any dispute in the future. This is particularly important if the document constitutes a form of agreement, but it can also be useful in the case of a complaint.

-                      To provide a basis for discussion. We saw above that a discussion is usually best conducted orally, but it can be very useful for a discussion document to be available beforehand, setting out the facts of the case and perhaps giving the writer’s own views and recommendations. This saves time, as it means that the meeting itself can discuss the implications and people’s opinions, instead of having to go over the facts before any useful discussion can begin.

-                      To clarify a complex subject. Some subjects do not lend themselves easily to spoken communication. A graph or bar chart, for example, may be a better way of presenting figures, and it is easier to explain a confused situation in writing than orally.

-                      To send the same message to a number of people. If you want to give a number of people the same information (perhaps the date and venue of a meeting), then an e-mail or a circular memo or letter would be quicker and cheaper than speaking to each person individually.

-                      To be able to think carefully about what you want to say. You can plan your document and correct any errors before sending it out. It is easier to make a mistake when you are speaking spontaneously.

communication  facial expression  posture  business setting  pass on  course of action  request  complaint  keep a record  a range  interlocutor  discuss an issue  whereas  record  meaningful  instant feedback response  considered  body language  typist  match the speed conversation  retain  deliberately twisted

комунікація, спілкування міміка, вираз обличчя положення тіла ділова обстановка передавати спосіб дій запрос, заява скарга, претензія записувати велика кількість співбесідник обговорити спірне питання в той час як запис, письмова фіксація змістовний миттєвий відгук дія у відповідь виважений  мова тіла друкарка встигати за темпом розмова, бесіда фіксувати, зберігати навмисно змінений

constitute available beforehand  implications 

go over the facts 

 

lend themselves easily  bar chart  confused  message 

circular memo 

 

spontaneously 

1.      Answer the following questions. утворювати завчасно представлений в розпорядження висновки повторювати        обставини      справи            та

аргументи сторін легко здаватися план-графік плутаний повідомлення інформаційне письмо до цілого ряду

адресатів експромтом

1.       What are possible objectives of business communication? 2. What are the main reasons for communicating in writing? 3. What means of communication do you know? 4. When is it preferable to communicate orally? 5. Why is it necessary to use different methods and styles of communication in business sphere?

2.      Agree or disagree with the statements.

1.       A face-to-face communication is preferable if it is necessary to retain a permanent record of a conversation.

2.       If you don’t want to lose your time, it might be better to communicate through the medium of business letters.

3.       When it is necessary to give a number of people the same information then a telephone call to each person individually would be advisable.

4.       Whether you communicate orally or in writing will wholly depend on your financial capacity.

3.      Supplement further information on the topic “Methods and styles of business communication”.

 

 

1.2 WRITING A BUSINESS LETTER IN ENGLISH

 

The basic business letter has its unified structure containing the following parts:

1.       Return address (or sender's/addresser's location) is the name and the address of the company, beginning from the smallest division: the name of the company, house number, street, city, state or province and ZIP code, country. Business letters usually have a printed letterhead. It usually has all of the company's information, including address, phone number, fax number, company Web site and personal e-mail address. It may be written on the right side or at the top of the page.

2.       Date - it's the date when the letter was written and signed. It is below the return address. It may be written in American style (month, day, year) or in non-American (day, month, year). But it is better to spell month not to make confuse: 12 January 2006, not 12.01.06.

3.       Destination address (or receiver's/addressee's location) – the address and the person to whom you are writing. The information should be given in the same order as the return address. Usually it is written close to the left margin.

4.       Reference - here you name the main topic of the letter. For example: Re: Purchase Order 1132 of November 24, 2008.

5.       Salutation - when you name the person to whom you address. Example: Dear Dr. Brown or Dear Mr. White. When you don't know whom to address in company, you should use the formula Dear Sir (or Dear Madam, Dear Ms), or To whom it may concern.

6.       Body - the body of a letter tells about the subject of the letter. Usually it has four parts:

(I)     opening - where you give the reason of writing or involve the reader in the theme of your topic;

(II)  focus - where you provide details and explain what exactly the problem is;

(III)                       action - where you say what will happen next or what actions you are going to undertake;

(IV)                       closing - be positive; here you thank the reader or demonstrate your hope for the positive result of your addressing,

something like I look forward to hearing from you soon.

7.       Complementary close is the phrase you use after you end the body of the letter and before you sign your name. It may be:

Truly yours.

Cordially yours.

Sincerely yours.

Faithfully yours - only for formal complimentary closes.

Sincerely yours, or Yours sincerely for both - formal and informal style. Cordially and yours truly are appropriate only for informal complimentary closes.

8.       Signature and typed name and title of sender - the writer's name and job title (or department) are typed at the bottom of the letter. He or she then signs the letter directly above the typed name.

9.       Postscript is a brief sentence or paragraph introduced by the initials, “P.S.” (“post scriptum” Latin for “after having been written”). It implies that the writer, having completed and signed the letter, had an after-thought. Although this is still commonly used in informal letters, it is not widely accepted for use in formal or business letters.

10.   Enclosure - you add it in the left bottom corner of the page if you are sending something

with the letter.

business letter      діловий лист return address  зворотна адреса

             ZIP code (zone improvement plan code)            поштовий індекс

printed letterhead            штамп фірми на бланку листа, фірмовий   бланк

top of the page  верхня частина сторінки destination address  адреса призначення

reference             посилання (до попереднього листа) salutation       привітання body      головна частина opening       початок, вступ focus              фокусування на темі листа

action       лінія поведінки, ймовірний ефект closing  заключна частина

            complementary close                                           ввічлива прощальна фраза

typed name and title  postscript  after-thought 

enclosure 

 

1.      Answer the questions. машинописний варіант імені та посади приписка до листа пізня думка додаток

1. Does a letterhead signify the return address or the destination address? 2. If you put the date in American style what does it mean? 3. What does abbreviation "cc" in letters mean nowadays? 4. What does the word "enclosure" mean if it stands at the end of the message? 5. What is a typical structure of the body of a letter? 6. Where is the destination address usually written?

2.      Supplement further information on the topic “Golden rules of communication”.

 

 

1.3 CHOOSING JOBS

 

1.      Read the profiles of the people talking about their jobs in finance. Match the profiles a-h with the jobs 1-8.

1.      an equity trader     a_ 

2.      a customer adviser in bank         ___

3.      an insurance broker         ___

4.      an accountant      ___

5.      an investment banker      ___

6.      an auditor            ___

7.      a company treasurer        ___

8.      an analyst            ___

2.      Work in pairs. Which of the jobs in 1

•      appeals to you the most?    is the most stressful?

•      requires the longest training?         is the best paid?

 

 

3.      What are you looking for in a job? Which four of these features are most important to you?

Rank the features 1-4 (1= most important).

•      to work in a local company near my home

•      to work in a large international company

•      to work long hours, but get a big salary

•      to have evenings and weekends free

•      to work directly with customers and the public

•      to work with statistics and tables

•      to work with companies' financial accounts

•      to work on the financial markets

•      to have a lot of responsibility early in my career

 

 

Work in groups of three or four. Explain your choices to your partners and decide together which of the jobs in 1 would suit each of you the best.

 

 

Describing a job vocabulary

 

1.        Look at the groups of verbs in 2 that people use to describe their jobs in finance.

Work in pairs. Discuss the differences in their meaning. Look at examples of how they are used and which words they are used with in a dictionary like the Oxford Advanced Learner's Dictionary.

 

2.        Complete the sentences with the best verb.

In my job I have to ...

advise           answer            serve

1.      _____ customers on their choice of financial products

2.      _____customers who need cash or to make payments 3. _____ telephone enquiries 

analyse       forecast         set

4.      _____ what will happen to consumer demand for the next twelve months

5.      _____ the financial results for last year

6.      _____ a budget for spending in each department borrow         issue          lend          raise

7.      ______shares or bonds

8.      ______capital by issuing shares on the financial markets

9.      ______money to customers

10.  ______money from the banks in short –term loans

Investigate           manage             prepare

11.  _____ the accounts at the end of each quarter

12.  _____ the accounts to check for accuracy

13.  _____ the cash in our current accounts.

14.  

3.        Now, using the verbs in the boxes below, complete the two job adverts from an Internet website for financial recruitment.

 

 

An exciting opportunity has arisen at one of the UK's largest banks within  a lively call centre environment on the inbound/outbound customer service  department.              

 

As a customer relationship trainee, you will have to __________1, customers who want to carry out transactions, __________ 2 questions, and ___________3 them on the right products to suit  their needs. The work involves making quick decisions about customers who want to _________4 money on their credit cards and deciding who to __________5 money to by using our credit check systems. NO COLD CALLING INVOLVED!!!

Supporting our marketing division, you will have to_________ 6 reports on internal errors and

________7 customer complaints plus ________8 a database of customer usage.

Previous call centre/sales experience is preferred, but not essential, as full training is provided. If you are interested in the above role, please call immediately on 0234 326 7635.

 

advise lend

answer  borrow

investigate manage

prepare  serve

 advise                 manage              raise                set

 

International opportunities for young graduate accountants to train in a multinational accountancy team. Working in San Paulo, Brazil, you will be responsible for advising international companies on their operations in the country. Key tasks include presenting solutions to clients on

how to _________9 cash flow more efficiency how to _________10 capital from the banks how to _________11 budgets and implement control systems how to _________12 clients on better tax planning

 

IT’S MY JOB

 

1.      Look at the list of qualities that could be important to work in financial markets. Mark them VI (very important), QI (quite important), or NI (not important). Then compare your answers in pairs.

having a lot of experience in business or finance                       ________□ being able to get on well with your clients      ________□ being good at working in a team      ________□ being good at socializing             ________□ being good at listening to and remembering information           ________□ being able to think quickly          ________□ being good at taking risks           ________□

2.      Now read an interview with Jilly Atkins, a bond trader who works in the debt markets, buying and selling government debt. Tick (√) the qualities in 1 that she mentions.

Jilly Atkins

 

Before you got your job, did you study business or finance at college? No, actually, I didn't. In fact, when I applied for my first job, I really had no experience in finance. I just looked on the Internet to see which finance jobs paid the best. I saw that as a bond trader you could earn £100,000 after only two years in the job. So I decided that was the job for me!   What skills and qualities were they looking for? I hope I impressed them. You definitely need good personal skills in this job because everything depends on contacts. You have to be good on the telephone so people want to call you with a deal. But it's not only in the office. If you want to make a lot of money, you also have to socialize and network with clients at night. That means lots of eating in restaurants. That's where you hear the best news. You're always competing with other banks for the same business so you have to keep the clients very happy. It's fun, but hard work.

It's a very demanding job. Do you work a long day? Yes, I do. We start work every day at 7.00 a.m. We have to go to the morning briefing, when the analysts tell us about information in the news that is important for prices. Then the head of the division explains the strategy for the day. We begin to call people at 7.40 and the markets open at 8.00 when we make the first deals. The phone never stops and we have to keep a lot of information in our heads.   How much money are you dealing in? We are trading in tens of millions and that means you can't make any mistakes. The profit on a deal is so small that we have to trade in very large quantities to make money. So the ability to think fast and decide things quickly is essential.   I think I know what you will say to this question ... Is your job interesting? Yes, of course, it's absolutely fascinating.

3.      Read the interview again and write T (true) or F (false).

1.         Jilly chose her job mainly because of the salary.

2.         Nearly all the trading takes place outside the office.

3.         Clients normally prefer to deal with just one bank.

4.         Traders need to have an excellent memory.

5.         Traders often make a big profit on a single deal.

 

4.      Webquest

 

Go on the Internet to find this information.

1.      Who are the best international companies to work for in finance? Look for companies who win international awards for 'best places to work' or companies who come out best in international comparisons. Try www.ft.com as a starting point.

2.      Make a list of the best four companies you have found and their best features. Work together and tell the group the results of your research. Decide together what you need to consider when choosing a company to work for.

 

 

Reading

 

WHAT CAN YOU EXPECT FROM A CAREER IN BANKING?

You are going to read two reports from a university magazine on careers in banking. Helen works in the corporate finance department of an investment bank and Angus is a customer service advisor in a retail bank.

 

1. Discuss these questions in pairs.

•      What do you think each job involves?

•      What skills do you think each job needs?

Angus Fraser (2004-07) Customer advisor

After university, I joined the Glasgow branch of Fleetwood Bank as a trainee customer advisor. It is a client-facing job, meeting customers who come in to the branch and advising them on how to manage their money. That means I need a good knowledge of savings accounts, loans, and mortgages, but we have weekly meetings to learn about these products.

In this work, you must have good relationship skills

because the customer gives you private information and must trust the advice you give. It is also important to be systematic and accurate because you have to enter the information in electronic forms.

On a typical day, I can see about 50 customers in private interviews and it makes a long day. I usually start at 9.00 a.m. (by checking my appointments diary) and finish at 6.00 p.m. So I work about eight hours, but it takes another 45 minutes to get home.

The salary (£20,000 p.a.) is not great, but it is very satisfying to work with people and know that you have helped them to plan their financial decisions well.

Helen Marshall (2003-06)

Analyst, Morgan Straits

If you join an investment bank as a graduate trainee, you can expect to work long hours. It's part of the culture.

My day starts at about 8.00 a.m. when I check my email and voicemail to see who wants information immediately. It can continue until about 1.00 in the morning if we are working on a big merger. Fortunately, I live only twenty minutes from the bank. I usually get my main work from my boss at the daily team meeting at 10 o'clock, which can be a comparative analysis of companies or completing a report on a loan application for a big company.

As an analyst, you need to be good at statistics because you spend a lot of the day working at the computer on tables or spreadsheets. It's also important to be well organized and a good team player because you depend on your colleagues to meet deadlines.

It is a very exciting job because you learn very quickly and they are good at giving you training - I have already done courses on how to value companies and on accountancy. But there is not much chance of meeting with customers, so you can feel isolated at times. After a year, I still love the excitement of the job and the salary is great, £40,000. But if you are thinking of joining an investment bank, make sure you are well motivated and good at computer skills before you start.

 

2.      Work in pairs and complete the questions below.

1.      Who ________ work for?

2.      When (start) _________ in the morning?

3.      What sort of skills __________ need?

4.      What tasks ___________ in the office?

5.      What kind of reports ___________?

6.      How many customers ___________ each day?

7.      How much ____________ earn?

8.      How often _____________ meetings?

9.      How many hours __________ in a day?

10.  How long (take) ___________ get home? 

3.      Student A, read the text about Angus on the previous page. Student B, read the text about Helen.

Find the answers to the reporter's questions in 2.

4.      Student A, you are the reporter. Interview Helen and ask her about her job.

Student B, you are Helen. Answer your partner's questions and tell them about your job. Now change roles: Student A, you are Angus. Student B, you are the reporter.

5.      Now work together and find the words in the two texts to match the definitions.

Someone who ...

1.      has finished university is a _______.

2.      is starting in a company is _______.

3.      works well with customers has ______.

4.      doesn't make mistakes is ______.

5.      works well with other colleagues is a ______.

6.      is enthusiastic about their job is ______.

 

 

1.4 APPLYING FOR A JOB

 

When you finish high school or university, you will look for a job. The first step will be contacting the company you want to work for. How? With a job application which is a proposal to work for them.

 

1 The application process involves different steps. How do you think this process works?

Put the steps in the correct order.

 The company reads your application, thinks you could be the right person and contacts you for an interview.

 You accept and start working for them.

 They contact you and offer you the job.

 You go to the interview.

 You send your application.

 You read an advertisement in which a company looks for a computer programmer.               Your interview is successful.

 

We can say that the three main steps in the application process are:

1  Advertisement

2  Application

3  Interview

Let's look at them in detail.

 

First step: The advertisement

Job advertisements can be found on the Intern et, on special sites or on company sites, but also in newspapers and magazines.

 

 

                    2.Read these two advertisements and answer the questions.                       

JOB: bank cashier COMPANY: Walkers Bank                       LOCATION: Boston ~ Walkers Bank TERMS: Permanent / Full-time DUTIES: customer service and administrative duties EDUCATION: high school diploma SKILLS: good knowledge of banking computer systems Cl ick here to apply or send an email plus CV to Staff Manager, walkersbank@wb.org

Experienced cafe staff needed to work at Party Cafe in Manchester.   You will be required to work frorn the end of November till the 23rd December. There are various shifts and times available. Many of the shifts are in the evening allowing you to work around your studies or another job.   Part time vacancies available.   Email your application and CV to jobs@cafebar.uk

 

1. Which job is better for a student? 2. Which job is full-time only? 3. Which job is not permanent? When are you required to work? 4. Which job does not require a school diploma? 5. How can you apply for both of them?

 

Second step: The application

After reading a job advertisement, if you are interested in the job, you send your application, usually by email. Your application must include a CV (Curriculum Vitae). This a document with information about you and your work history. A CV must be clear and easy to read, so it must be organized into sections.

3.      Look at this information from a CV and put it in the appropriate sections.

-   Excellent English both written and spoken 

-   Email: c.parker@topmail.com

-   2008-2010: accountant at French Foods, 11 Avenue St Antoine, Nantes

-   M. Gaston Artois, Director General at French Foods

-   2007: High school diploma in accountancy from Lycee Saint-Louis, Tours

Section	Information
Personal information
Work experience
Education
Skills
References

4.      Two people have decided to apply for the post of bank cashier from the first advertisement on this page. Read these two applications and match the descriptions in the box to the paragraphs.

 

attachments education	references	skills
work experienc opening (source of information + type of job)	closing hope for interview	salutation greeting)	(opening

 

Dear Staff Manager,   I am writing to apply for the post of bank cashier advertised on your site.   As you can see from my CV, I got a high school diploma in 2009. Since then I have been working as a bank cashier for a major bank here in Boston where I deal with customers' accounts and sell financial products.   I hope you will contact me for an interview.   Best regards, Paul Ascott

Dear Sirs, - I saw your advert on your site and I am interested in the post of bank cashier.   I hope you will appreciate both my educational qualifications - I have a degree in Economics from Boston University - and my two years ' experience in the field of banking.   My computer skills are excellent and I can speak Russian well.   I attach my CV and two references.   I look forward to meeting you for an interview.

 

Regards, Mary Burton apply

 

5.      Complete the sentences with words from the box.

 

1.        I __________ copies of my diplomas.

2.        I have good _________ of French and Italian.

3.        My _________ include organising meetings and events and advertising.

4.        I would like to ____________ for the post of computer programmer.

5.        I saw your ______________ in The Daily Telegraph and I am applying for the post of secretary.

6.        I _________ your reply.

7.        I am available for an ____________ at any time.

8.        In my present job, I ___________ accounts.

9.        Excellent computer ___________ are required.

10.    Please send your ___________ to this e-mail

6.      These are the CVs that Paul Ascott and Mary Burton have attached to their applications.

Read them and tick the table appropriately.

1 PERSONAL DETAILS NAME: Paul Ascott DATE OF BIRTH: 311111991 ADDRESS: 15 Park Avenue, Boston PHONE NO. 359 9921 77 EMAIL: paul.ascott@gmail.Com

2 PERSONAL INFORMATION Ms Mary Burton Born in Boston on 15th June 1986 Married 35 San Diego Rd - Boston (617) 466 2481 mburton@hotmail.com

EDUCATION 2004-2009 High School Diploma, High School West, Boston   PROFESSIONAL EXPERIENCE 2009 - present Atlantic Bank, 163 High Street, Boston - bank cashier Duties: dealing with customers' accounts, selling financial products   SKILLS good knowledge of standard office software

EDUCATION High School: 2000 - 2005 Parker High School, Boston University: 2005 - 2009 Degree in Economics, Boston University   EMPLOYMENT 2009 - 2011 investment consultant at DT Bank - I assist customers in investments   SKILLS Languages: Good Russian both written and spoken Computer: Certificate in Microsoft Office   REFERENCES George Brown Teacher of Economics Boston University (617) 455 6002 gbrown@bu.com   Gordon O'Neal Manager DT Bank State Street (617) 430 8832 gordononeal@dtbank.com

 

Who:	Paul Ascott	Mary Burton
has a degree?
is still working?
does not provide any references?
can speak a foreign language?
is married?
has experience as a bank cashier?
can use a computer?
lives in Boston?

7.      Now, you have decided to apply for the same post of bank cashier. Write your application email and CV using the information below. Use the layout and and vocabulary from the emails and CVs above to help.

-  you have read the advertisement on the Internet

-  you are 25, from Boston

-  you have a high school diploma

-  after school you worked for 3 years as a representative for a videogame company, then for 2 years as a bank clerk with administrative duties for a bank in Boston

-  you have excellent computer knowledge

-  you attach 1 reference

 

Third step: The interview

If your application is successful, the company contacts you for an interview before deciding whether to give you the job.

8. This is a list of typical questions and answers during a job interview. First match these titles to the questions. Then match questions and answers. There may be more than one answer for each question.

Questions

1.        What are your qualifications? Education e, f

2.        What school did you attend? __________

3.        Tell me about your experience. __________

4.        What work experience have you got? ____________

5.        What are your duties? ____________

6.        What experience have you got in this field? ____________

7.        Do you speak any foreign languages? ____________

8.        What are your computer skills and what programs can you use? _______ 9. Why do you want this job? _____________

10. What interests you about this job?

Answers

a.         I am familiar with all the main computer programs.

b.        I have a good knowledge of computers.

c.         I think this job will improve my skills.

d.        I want to get experience in this field.

e.         I have a diploma in accountancy (and a degree in Economics).

f.          I went to ITC Pascoli in Milan and got my diploma 3 years ago.

g.        I worked for an import-export company called BC Ltd. from 2008 to 2010.

h.        I have several years of office experience.

i.          I am responsible for/My duties are entering data into the computer and preparing statistical reports.

j.          Yes, I can speak English fluently.

9. Now imagine you have applied for a job as a shop assistant in a music shop in London.

Complete your interview with the missing words and phrases.

Interviewer: Good morning and welcome.

You: (1) _____________________________

I: I'd like to ask you a few questions. Let's start with education. What (2) ________ qualifications?

You: I (3) __________________

I: Fine. And (4) _______________ in this field?

You: I (5) _______________________

I: Can you tell me about your computer (6) ____________?

You: (7) __________________

I: That's great. Now, you can speak good English, but can you speak any other

(8) ______________?

You: (9) I ______________

I: I see. Now, one last question. Why (10) _______________?

You: (11) ____________________

I: OK. That's all for now. Thank you for coming. We'll contact you soon.

You: Thank you very much.

           MY GLOSSARY                                     

           account                                                                 interview

advertisement      job application to apply          knowledge

to attach   to look forward to available    permanent cashier       reference

to deal with         shift degree     skill duty         staff

            education                                                              vacancy

 

Writing

A COVERING LETTER

When you apply for a job, you normally send a CV and a covering letter.

1.     Complete the covering letter by choosing the correct verbs.

2.     Choose your favourite job from Webquest or the unit and write a covering letter to apply for it.

 

Ms M Wilson JBD Bank

56 Cheapside

LONDON EC4Y 2WD

23 June 20_

 

Dear Ms Wilson,

I write / am writing to apply for the job of customer advisor, as advertised on your website on 13 June (reference WRF/236).

I am / I am being numerate, I have / am having good personal skills, and I am very interested in banking. I like / am liking contact with customers and I am good at communicating with people.

As you can see from my CV, I studied economics at school and I now study/ am now studying for a diploma in business studies. I think / am thinking this gives me a good background for the job.

I currently work / am currently working part-time in a bookshop, so I have / am having experience of dealing with customers and handling money. Every day I prepare / am preparing the cash balance when we close the shop.

Presently, during the holiday period, I also help / am also helping my uncle with his accounts on the computer.

I would be very pleased to have the opportunity to discuss this application further.

You can contact me by email at:jsmith@meganet.com. I look forward to hearing from you.

 

Yours sincerely,

James Smith

James Smith

 

Speaking

PRESENTING YOUR SKILLS TO AN EMPLOYER

In a job interview, you have to explain why you want to do a job and why you would be good at it. Work in groups of three or four.

1.      Choose your favourite job from the unit. Prepare to explain to the others why you want the job.  Use the Useful language below to help you think of ideas. Tell the others just the name of the job you have chosen.

2.      Prepare at least six questions to ask the other members of your group about their job choices. Use the Useful topics below and different types of question. Three questions must be information / open Wh- questions and three must be yes / no questions.

3.      One student presents their choice to the others, explaining why they want the job. 

The others are the interview panel who ask questions to see if the person is suitable. Take turns so that everyone presents.

Useful topics

•  your education

•  skills

•  experience (with examples)

•  motivation

•  understanding of the job's needs

•  what you can offer to an employer

Useful language

•  I would like to be a ... because I want to ...

•  In this job you need to ...

•  I like / enjoy / am good at 

•      analysing figures and data

•      selling things

•      working on computers

•      solving problems

•      working with people in a team.

•  At the moment I am studying ...

•  For me, the most important thing is ...

•  I think this job will help me to ...

•  I think a ... needs to be ...

 

 

 

 

 

 

 

UNIT  2                          THE SCIENCE OF ECONOMICS

 

Read the international words and guess their meanings:

Economic activity, economic system, macroeconomics, microeconomics, to produce, to operate, to protect, to analyze, to finance, to manufacture, to specialize, to focus, to affect, service, school, hospital, garage, fact, base, production, material, industry, radio, strategy, status, export, import, institution, distribution, division, investment, history, organization, period, spectrum, agriculture, essential, basic, industrialized, oriented (policy), national, financial, social, major, fact, base, total, primarily, public.

 

2.1 ECONOMIC ACTIVITY

Most people work in order to earn their living. They produce goods and services.

Goods are either produced on farms, like maize and milk, or in factories, like cars and paper.

Services are provided by such things as schools, hospitals and shops. Some people provide goods, some provide services.

Other people provide both goods and services. For example, in the same garage, a man may buy a car or he may buy some service which helps him to maintain his car.

The work which people do is called their economic activity. Economic activities make up the economic system.

The economic system is the sum-total of what people do and what they want. 

The work which people undertake either provides what they need or provides them with money. People buy essential commodities with money. 

            in order to                                                            для того, щоб

           goods and services                                               товари та послуги

to provide services          надавати послуги either… or….       або … або … both… and…      як …, так і … to make up      складати

           commodity                                                           товар

            the sum-total                                                        загальна сума

 

1.      Give Ukrainian equivalents to the following:

To earn their living, goods like maize, services are provided by …, to provide both goods and services, to maintain a car, the work which people undertake, to buy with money, essential commodities.

2.      Complete these sentences with the words given below and translate them into Ukrainian: essential commodities, provide, undertake, maintain, the sum-total 

1.       People buy ……. with money.

2.       Some people ……., some …. services.

3.       The work which people … provides what they need. 

4.       Some service may help a man … a car.

5.       The economic system is ….. of what people do and what they want. 

3.      Complete the sentences:

1.       Most people work………..

2.       Economic activities make up……… 

3.       Economic activity is ………………… 

4.       Economic system is……….

5.       A man may buy some service which…… 

4.      Answer some questions on the Text:

1.       Why do most people work? 2. What do they produce? 3. Where are goods produced? 4. What do schools, hospitals and shops provide? 5. What two different things can a man buy in, for instance, a garage? 6. What do we call the work which people do? 7. What is an economic system the sum-total of? 8. What two things can work provide for the market? 9. What can people buy with money?

 

2.2 THE SCIENCE OF ECONOMICS

Economics is a science. This science is based upon the facts of our everyday lives. Economists study our everyday lives. They study the system which affects our lives. The economist tries to describe the facts of the economy in which we live. He tries to explain how the system works. His methods should be objective and scientific. We need food, clothes and shelter. If we could get food, clothes and shelter without working, we probably would not work. But even when we have these essential things, we may want other things. If we had them, these other things (like radios, books and toys

for children) might make life more enjoyable.

The science of economics is concerned with all our material needs and wants. It is not just concerned with basic needs like food, clothes and shelter.

            to affect smth., smb.                                             впливати на щось/когось

to describe           описувати to explain              пояснювати

           scientific                                                               науковий

            to be concerned with                                               бути пов’язаним з, мати відношення до

чогось

 

1.      Give Ukrainian equivalents to the following: to be based upon, to affect our lives, to describe the facts, to explain how the system works,

objective, probably, essential things, make life more enjoyable, to be concerned with, basic needs

2.      Complete these sentences with the words given below in appropriate form and translate the sentences into Ukrainian: to be concerned with, to explain, to affect, enjoyable, method 

1.       Economists study the system which ……. our lives.

2.       The economist tries ……… how the system work. 

3.       Economic …… should be objective and scientific.

4.       Radios, books and toys for children make life more …. 

5.       It …. essential things.

3.      Complete the sentences and translate them into Ukrainian:

The science of economics ……

Economists try …… Even when we have …  We need ….

Economics is based upon …  If we could get food ….

4.      Answer some questions on the Text: 

1.       What is economics? 2. What is it based upon? 3. What two things do economists study? 4. What does the economist try to describe? 5. What should the economist’s methods be? 6. What do we need? 7. What things might make life more enjoyable? 8. What is the science of economics concerned with?

 

 

2.3 ECONOMIC STRATEGIES

Four Asian nations – Hong-Kong, Singapore, South Korea and Taiwan – are now called NICs, newly industrialized countries. Their new status is a product of outward-oriented development strategies.

In the 1950s and 1960s, the governments of the four countries protected domestic markets from foreign competition to stimulate domestic production for domestic consumption.

Taiwan was the first to replace an inward-oriented policy with an outward-oriented policy. The other three countries followed closely behind. Soon each country experienced rapid growth in exports and domestic national income.

These countries maintain some restrictions on the domestic economy, but operate with another set of rules for exporting firms. Production for export occurs in a free market setting, with no taxes or restrictions on imports of the materials needed to manufacture goods for export.

The governments have developed banking and financial institutions that can finance export production and sales.

Notes:

setting – умова

 

1.      Answer some questions on the Text

1. What are four Asian countries called? 2. What is their new status? 3. What did the governments of these four countries protect in the 1950s and 1960s? 4. What did they want to stimulate? 5. What was Taiwan the first to replace? 6. What was the result of this new policy? 7. Do these countries maintain some restrictions on the domestic economy? 8. How does production for export occur in a free market setting in these countries? 9. What have the governments developed?

2.      Render the contents of the Text in Ukrainian.

3.      Read and translate the Text.

ECONOMICS

Economics is a social science that seeks to analyze and describe the production, distribution, and consumption of wealth. The major divisions of economics include microeconomics, which deals with the behaviour of individual consumers, companies, traders, and farmers; and macroeconomics, which focuses on aggregates such as the level of income in an economy, the volume of total employment, and the flow of investment. Another branch, development economics, investigates the history and changes of economic activity and organization over a period of time, as well as their relation to other activities and institutions. Within these three major divisions there are specialized areas of study that attempt to answer questions on a broad spectrum of human economic activity, including public finance, money supply and banking, international trade, labour, industrial organization, and agriculture. The areas of investigation in economics overlap with other social sciences, particularly political science, but economics is primarily concerned with relations between buyer and seller.

 

2.4 ECONOMIC INDICATORS

 

1.      What facts do you know about the economy in your country? Work in pairs and make notes of

your answers.

1  How many people live in your country?

2  What is happening to prices in the shops?

3  How many people have no job?

4  What is the exchange rate of your country's currency to the US dollar?

5  Is your country's economy growing or declining?

6  How much interest do you pay on bank loans?

Report back your answers to the class.

2.      When we talk about these facts, we are talking about 'economic indicators'. The pictures below

         represent      key      economic      indicators.      How      many      of      them      can      you       name?

Reading

INTERPRETING DATA

1.      What can you learn about an economy from its economic indicators? Look at the table for these two developing economies: Turkey and Poland. Match the indicators a-h with the definitions 1-8.

1. the movement of prices in the economy	_f_
2. the cost of borrowing money from a bank	___
3. the relation between imports and exports	___
4. the value of a country's money compared with other currencies, such as the US dollar	___
5. the number of people who live in a country	___
6. the number of people with no job	___
7. the total size of an economy	___
8. the rate of expansion in the economy	___

 

Economic indicators	Turkey	Poland
a Population	76.8m
b Gross domestic product		US$ 686.2bn
c Growth rate	-5.8%
d Interest rates		5.0%
e Unemployment rate	14.6%
f Inflation		3.4%
g Exchange rate	US$ 1 = YTL * 1 .55 * Turkish New Lira
h Balance of trade		US$ -3.585

 

2.      Student A, go to the next page. Student B, look at the table above. Work together and find the missing statistics in your table. 

Take turns to ask for and give the missing figures. Then read back the statistics you have written to your partner and check if they are right.

 

Student A

Take turns to ask for and give the missing figures. Then read back the statistics you have written to your partner and check if they are right.

Economic indicators	Turkey	Poland
a Population		38.4m
b Gross domestic product	US$861.6bn
c Growth rate		1.1%
d Interest rates	25%
e Unemployment rate		11.0%
f Inflation	5.9%
g Exchange rate		US$ 1 = PLN 3.1 • Polish zlotych
h Balance of trade	US$ -12.54bn

 

3.      What can you learn from this data about the two countries? Discuss in pairs or small

groups.

1  Which country has the bigger economy?

2  Which country has the higher growth rate?

3  Which has the worse inflation rate?

4  Which has the better interest rates for borrowers?

5  Do you see any dangers for the economy in any of the indicators?

 

Vocabulary

a. German unemployment rate falls slightly as the b. Bank of England warn as economy continues to create inflation increases sharply to new jobs. Exports, especially 3.4%. House owners suffer more of machinery, rise pain as mortgage rates go up by dramatically as world 0,5%  from 4,5% to 5%. demand remains strong.

DESCRIBING TRENDS 1

1.      Look at the news stories. Underline the verbs that tell you how the indicators moved: up or down. Mark them with an arrow showing the direction up (↑) or down (↓).

 

 

 

 

 

 

 

 

 

2.      Now complete the table with the verbs you underlined.

 

to increase	to decrease

3.      When we describe a change, we can be more precise by putting an adverb after the verb.  Find these adverbs in the headlines: slightly, steadily, sharply, steeply, dramatically. Which of the adverbs describe

•      a big change?

•      a small change?

•      a continuous change over time?

4.      Read the text and underline the verbs and phrases that describe key trends. There are eight verbs and phrases in all.

Over the last

month

oil prices have fluctuated wildly between $95 and $123. Prices rocketed at the beginning of the month and they reached a new peak

of $123 But, with fears of an economic slowdown, the price subsequently plunged and hit a low of $95 last Thursday. They levelled off at the beginning of this week at $108 and have now recovered to $115.

But oil analysts expect they will surge to new highs over the next 2 months.

 

Reading

LIFE IN MODERN BRITAIN

1. Economic indicators can give us a picture of the historical development of a country. Think back to the life of your parents' generation. What do you think people spent their money on 50 years ago?

Now read the text and find out about life in the UK 50 years ago.

 

What can economic indicators tell us about life in modern Britain?

In 1957, the UK government began a survey of the spending of a typical English family called the Family Spending Survey.

In this year, three items made up nearly 50% of all family expenditure: food, fuel, and rent. If you include clothing and travel, these basics made up nearly 70%

of all family spending. The main luxuries for the ordinary family were tobacco and alcohol, which represented just under 10% of spending. The next biggest luxury item was meals eaten out in restaurants, representing 3% of spending.

When the government did the same survey fifty years later in 2007, the figures were very

different.

2.      Discuss in pairs. What do you think are the largest items of family spending today?

3.      Put these items in order of importance (1 = biggest item; 5 = smallest item):

food    ___________                       clothing __________ housing __________                       leisure ___________ transport _________

4.      Now read the conclusions of the 2007 report and write the correct percentage against each

item. Were you right?

Over the last fifty years, UK family income has doubled in real terms, but the pattern of family spending has changed dramatically. Basic necessities, including food, now account for only 15% of our family budget, compared with 33% in 1957.

And half of that food budget now consists of meals and takeaways - a new category introduced in the 1970s.

But the cost of housing, including mortgage interest payments or rent, has more than doubled since 1957 from 9% to 19%.

However, the biggest change is in the growth of leisure, including everything from holidays, DVD rentals and sports clubs. This now represents 7% of spending, while clothing is only 5%. 

Motoring and travel costs have increased sharply from 8% of spending in 1957 to 16% in 2006, mostly because of rising car ownership, with three in four families owning at least one car.

Surprisingly, spending on alcoholic drinks accounts for the same proportion of spending as it did 50 years ago at 3% - although in absolute terms it is much higher. 

But, in contrast, the proportion of the average budget spent on tobacco has fallen sharply from 6% in 1957 to just 1 % in 2006.

5. Discuss in pairs.

1  Why do you think spending on food has fallen so sharply?

2  Why has transport spending increased so dramatically?

3  Family income has doubled over fifty years, but does higher income create happiness? What kind of problems could it bring?

 

2.5 ECONOMIC CYCLES

 

1. Look at the graph showing the typical cycles of an economy.

1  How long does a normal economic cycle last? Circle the correct answer.

a.       about three months c about five years

b.      about a year d about ten years

2  Why do economies move in cycles?

2. How does your spending in the shops affect this cycle?

Complete the sentences.

When         people reduce their spending,            the       economy experiences a r________.

2 When they increase their spending,       the       economy experiences a r______.

 

3. Look at the words below which are commonly used to describe economic cycles.

1        Which words describe positive growth and which are negative?

Mark them + or -.

2        Which words describe a shortterm phase (three months) and which        are       medium-term (six months and more)? Mark them S/M or both.

3  Which words describe extreme conditions of the cycle? Mark them !.

	+/-	S/M	!
a slump
b upturn
c recession
d boom
e downturn
f recovery

 

RECESSION AND RECOVERY

1.      Look at the pictures. Say which photos show

            1 a recovery                                   2 a recession.

2.      Work in pairs. Look at the sentences below. Decide which of these things usually happen              a in a recovery                               b in a recession.

1 People lose their jobs.	□
2 Companies create jobs.	□
3 Companies produce fewer goods.	□
4 Companies invest to increase production.	□
5 Interest rates begin to fall.	□
6 Governments start to increase interest rates.	□
7 Prices begin to rise and inflation increases.	□
8 Prices fall and profits decrease.	□
9 Many companies go bankrupt	□
10 People often start up new businesses.	□

 

Reading

MANAGING THE WORLD ECONOMY

 

1. Read the article and answer the questions.

1  Why were the IMF and the World Bank founded?

2  What is the difference between them?

3  Which of them could help with a big infrastructure project like a hospital or school?

4  Which of them could help a country if it has a crisis with its foreign exchange rate?

5  Why are they now being criticized?

 

The IMF and the World Bank

The IMF and the World Bank were set up at the Bretton Woods conference in the USA in 1944. The 45 governments at the conference decided to build a system of economic cooperation among countries to avoid the mistakes that caused the Great Depression of the 1930s.

The IMF is based in Washington, DC, USA and is governed by the 185 countries that are members. However, the IMF is not a bank. Its job is to maintain stability in the world economy and help countries which are experiencing financial difficulties, perhaps with repaying debt on loans or when the value of their currency has collapsed. But the IMF cannot tell a government what to do: it can only advise.

The World Bank has the different task of lending money to developing countries to help longterm construction and to support social programmes to reduce poverty or disease. Many of its programmes in developing countries support big long-term infrastructure projects like dams, water systems or road systems which governments do not have the money to build.

Charged with failure

Both institutions face a lot of criticism today. The Fund is often criticized for ignoring local conditions of poverty in developing countries and imposing single 'western' solutions onto weak economies. By advising governments, for example, to cut government spending in order to reduce inflation, they can create unemployment in poor countries. The Bank is being criticized for concentrating too much on big infrastructure projects like dams and motorways. Critics say these projects ignore the real needs of poor people to grow food, get water or set up small businesses. Environmental protesters also say that big projects can destroy local environments for farmers by changing ecosystem.

Both institutions reject such criticism, and they are making big efforts to reform by talking more with local people and focusing more on small micro projects using local experience.

Both institutions believe that one of the most important reforms is to have new emphasis on consulting with national governments, local experts, and aid organizations before developing any policies.

 

2.6 ECONOMIC SECTORS

1.      Where do most people in your country work? Is it in agriculture, in industry, or in services?

2.      A modern economy is made up of three different sectors: the primary sector, the secondary sector, and the service sector. Match the sectors with their definitions.

1        The ________ manufactures finished products.

2        The_______ provides the raw materials and natural resources for industry.

3        The ________ provides support activities for customers or other industries.

3.      Answer the questions.

Which sector do you think is the biggest in a developed economy like the USA? Which sectors are biggest in your country? Which are growing and which are declining?

4.      Which sector do these international companies belong to: Nike, McDonalds, Ford, Google, Nestle, Hilton Hotels?

 

Vocabulary

INDUSTRIES AND SECTORS

1.      The photographs below show different industries.

How many of them can you name? Complete the captions. Then write which sector they belong to.

(The first one has been done for you.) Use a dictionary to check your answers.

2.      Now compare your answers with a partner and fill in any gaps.

3.      How many of these industries do you have in your country?

s t e e l production                                                         t _ _ _ _ _ _ _ _ and logistic Sector: Secondary                                                         Sector: _____________

a _ _ _ _ _ _ _ _ _ _                                                           textiles and c _ _ _ _ _ _ _

Sector: _____________                                                    Sector: _____________

     f _ _ _ processing                                                                   m _ _ _ _ _ 

     Sector: _____________                                                         Sector: _____________

 

 

 

a _ _ _ _ _ _ _ _ _ _                                                      o _ _ exploration

Sector: _____________                                               Sector: _____________

 r _ _ _ _ _ _ _ _                                                        c _ _ manufacturing

Sector: _____________                                            Sector: _____________

 

4. Look at the report below from an investment bank on the structure of the Turkish economy.

Complete the report with words from 1.

The Turkish economy: background

In Turkey, the primary sector is made up of _____ 1 which produces basic foods, like fruits, vegetables, and wheat, and the exploration industries like ________ ________ 2 which provide our basic energy and gas, or _____ 3 which extracts minerals and material for building.

The secondary sector consists of manufacturing industries, like the ________

4 industry. Also there are the processing industries, for example _______ ______

5.

The manufacturing sector is divided into heavy industries which need great power and big investment in machinery, for example ______6, and light assembly industries, like ________ 7, which produce goods for the fashion industry and need little investment.

The service sector includes many different activities which support both businesses and private customers. Businesses need services like _____ 8 to move or store goods and other marketing services, like ______9 to tell customers about their products.

But the biggest part of the private service sector is made up of consumer services, like the _____ 10 sector, which contains shops where we buy things, the finance sector, including banks and insurance, and the fast-growing tourism sector for the international travel market.

 

 

5. Work in pairs. Discuss how the Turkish economy compares with the economy in your

country.

                  

 

  Reading       

COMPETING IN THE GLOBAL ECONOMY

Most business strategists now believe that a country, like a company, must build on its key strengths – the sectors and industries which give it a competitive advantage over other countries, such as low labour costs, technology, and natural resources.

1. Before you read, discuss what you think are the key strengths of an emerging economy like China.Work in pairs.  

You are going to compare the key strengths of an emerging economy, China, and a developed economy, the UK. Student A, go to p. 32. Student B, read the report on the UK economy and make notes on the strengths and weaknesses of each sector. In order to do this, you will need to:

1  find the examples given for each sector

2  find the strengths mentioned

3  find the weaknesses mentioned

4  add the information in note form.

THE UK ECONOMY

In the UK, the primary sector is made up of farming, and energy-related activities. Farming is very mechanized and uses a lot of machinery, producing about 60% of food needs although it employs only 1 % of the workforce. But many small farms are n0 longer profitable on global markets with low-cost world producers. Primary energy accounts for about 10% of GD, one of the highest figures for a developed economy. The UK also has important reserves of oil, gas, and coal. However, this sector is now declining and oil and gas production will fall sharply in the next ten years, making the economy dependent on foreign imports of energy.

The secondary sector has continued to suffer from the decline of old heavy industries, like steel, and the closing of mass manufacturing like the car industry. This has created big job losses especially in the north. In the last few years, these old industries have been replaced by new specialist engineering companies with high added-value products and niche markets. However, despite government support, the sector has decreased from 20% to 15% of GDP over the past twenty years.

By contrast, the service sector is booming, benefiting from its highly qualified workforce and the concentration of expertise in the south east. It now represents over 70% of the total economy with financial services, computing and marketing contributing 30% to GDP. But the success is very dependent on financial markets, and the recent growth has put great pressure on road and rail infrastructure in the south east. All this means that future growth will be limited in the short to medium-term.

⃰ There is an example of how to do this in the first paragraph of the table. When you have looked at this, read the rest of the report and complete the table in the same way.

UK	Examples	Strengths	Weaknesses
Primary sector	• Farming	Mechanized Produces 60% of food needs	Employs only 1% of workforce Not profitable on global markets
	•         Energy-related activities	Accounts for 10% of GDP High reserves of oil, gas, and coal	Sector declining Production will fall in next 10 years
Secondary sector	• _________ a		Decline of _______f industries
	• _________ b		Closure of _______g Big ________h losses
	• _________ c	•  Higher _______d products •  _________e markets
Service sector	• _________ i	_________l workforce    concentration of _______ m	Dependent on _________n   Infrastructure        problems,                 e.g. ________o
	• _________ j
	• _________ k

 

Student A

THE CHINESE ECONOMY

 

In the primary sector of the Chinese economy, agriculture has benefited from the move to private and village farms, creating new specializations, especially in the coastal regions near Hong Kong. Farming is very intensive, more productive per acre than the US, and produces significant exports of rice, wheat and meat. However, productivity is achieved by human labour and small farms lack machinery and capital for investment and often suffer from the effects of pollution and problems of water.

In the secondary sector, the opening of the country to foreign investment and technology has played a big part in modernizing Chinese industries. China is now a leader in electronics, textiles, and consumer products. Manufacturers still enjoy the benefit of a huge low cost workforce and relatively cheap land. However, a lot of the country's capital is invested in old state sector industries, often with great waste and inefficiency. The whole sector suffers from poor infrastructure, bureaucracy, and shortages of electric power and raw materials.

The service sector in China includes marketing, software, and customer services but it is still underdeveloped and businesses lack finance and technical knowledge. However, with the rise in living standards and a huge boom in Internet use, demand for services has increased dramatically. Private companies have used their own capital to develop, giving these companies great flexibility and independence from government control.

 

 

 

 

CHINA	Examples	Strengths	Weaknesses
Primary sector	• Agriculture	New     specializations     following move to private/ village farms   Farming more intensive and more productive than US	Human labour used   Lack of machinery and investment capital   Pollution and water problems
Secondary sector	•  _________ a •  _________ b •  _________ c	Benefits from:  • _______d                           • ______ e	Too much capital invested in ________f Problems: • _________g                   • _________h Shortages of: • _________i                        •_________j
Service sector	•  _________ k •  _________ l •  _________ m	Demand for services_____n because of: • ________o                    • ________ p Private companies use____q giving them: •_________r                       •_________s	Businesses lack: • ________t                             •________u

 

2. Now Student B is to complete the table below on the Chinese economy, by asking Student A questions.

EXAMPLES

What are the key industries in the Chinese primary sector? What are the weaknesses of the Chinese service sector?

 

CHINA	Examples	Strengths	Weaknesses
Primary sector	• Agriculture	New     specializations     following move to private/ village farms   Farming more intensive and more productive than US Significant      food     exports      of _____a, _____b, and _____c	Human labour used   Lack of _____d and investment capital   Pollution and ______e problems
Secondary sector	•  Electronics •  _________ f •  _________ g	Modernization         caused          by _______h Low-cost workforce Cheap _________i	Still investing in old ________j Poor _________k Bureaucracy Shortages       of       ________l        and _________m
Service sector	•  Marketing •  _________ n •  _________ o	Demand for services dramatically increased because of: • ________p                    • ________ q Private companies use ___r for investment, making them more flexible and independent	Businesses lack ________s and ________t knowledge

 

 

Writing

REPORTS: COMPARING OPTIONS

The plant location decision has now been passed to the investment board for a decision. As the assistant to the chairperson you have been asked to prepare a report comparing the two options: the UK or China.

 

When we make a direct comparison between two ideas or statements, we can use several linking words, including while and whereas. 

In China, we will have problems with finding experienced business managers while/whereas in the UK we can use our existing management.

We can also use by contrast when the comparison is expressed in a new sentence.

In China, few workers have high levels of education. By contrast, in the UK, we can recruit graduates easily.

 

Look back at the notes you made in Listening and complete the report.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIT 3                                                      ECONOMIC SYSTEMS

 

Read the international words and guess their meanings:

To characterize, to determine, indifferently, differently, traditional, private, resources, to maximize, centralize, to act, manner, productive, planned economics, theory, epoch, culture, to contribute, technique, cultivation, Roman empire, bourgeois revolutions, socio-economic formations, primitive-communal system, period, nature, instruments, to separate, to lead (led), to control, to regulate, to expand, dominant, universal, prevailing form of production.

 

3.1 ECONOMIC SYSTEMS

 

Different economic systems answer the “what”, “how” and “for whom” questions differently. The main economic systems today are capitalism, socialism, communism, mixed economies and traditional economies.

Capitalism - is an economic system characterized by private ownership of most resources, goods and services. Capitalism relies on the market system to allocate resources, goods and services to their most highly used value. In capitalist economy what to produce is determined by consumers, how to produce is determined by profit-seeking entrepreneurs, who maximize profit by producing in the most sufficient manner, and for whom to produce is determined by income and prices. In a capitalist system workers are generally paid according to how productive they are, and the distribution of income is unequal because people differ in their abilities.

Socialism - is an economic system characterized by government ownership of resources other than labour and centralized economic decision making. Under socialist system government authorities answer the “what”, “how” and “for whom” questions. In a socialist system government planners set wages and though wages are not equal for all workers, incomes tend to be more evenly distributed than in capitalist countries.

In centrally planned economies government planners decide what goods will be produced and set the prices at which they are sold.

Communism - is an economic system in which all resources (including labour) are commonly owned and economic decisions making is centrally planned. According to communist theory, people contribute what they are able to the economy but receive what they need. In theory, this means that goods are produced for use rather than to earn profits and that everyone’s needs are met. Communist countries have central planning boards that set prices.

private ownership to rely on  to allocate  value  profit income  an entrepreneur  sufficient  according to  equal (ant. unequal)  decision-making wage rather than

приватна власність покладатися на розподіляти, розміщувати цінність, вартість прибуток дохід підприємець суттєвий згідно з рівний приймання рішень заробітна платня скоріше … ніж

 

1.      Give English equivalents to the following: покладатися на, збільшувати прибуток, визначатися кимось, розподіл доходів, відповідно до, здібність, за часів соціалістичної системи, урядова влада, встановлювати заробітну платню, робити внесок, ради (департаменти) з планування.

2.      Complete these sentences with the words given below in appropriate form and translate the sentences into Ukrainian:

government authority, a government planner, the distribution of income, to determine

1.      Capitalism relies on ……...

2.      In capitalist system how to produce – is …….. by profit-seeking entrepreneurs.

3.      In capitalist system …… is unequal because people differ in their abilities. 4. Under socialist system ….. answer the “what”, “how” and “for whom” questions.

4.      In centrally planned economies ….. decide what goods will be produced. 

3.      Complete the sentences and translate them into Ukrainian:

1.  The main economic system today are…. 

2.  Entrepreneurs maximize profit by…

3.  In a capitalist system workers are paid according to…

4.  Different economic systems answer…

5.  Capitalism is characterized by … 6. According to communist theory …

4.      Answer some questions on the Text:

1. What are the main economic systems today? 2. What economic system does private ownership of most resources, goods and services characterize? 3. Who determines what to produce in a capitalist economy? in a socialist economy? 4. Why is distribution of income unequal in a capitalist economy? What is it like in a socialist economy? 5. What economic system does government ownership of resources characterize? Does the government own labour in such systems? 6. How can you characterize centrally planned economies? What are their specific features? 7. What is the difference between socialist and communist economies?

 

3.2 FIRST SOCIO-ECONOMIC FORMATIONS

 

The first socio-economic formation was the primitive-communal system, which covered the period of many hundred years. At first people were in a semi-savage state, powerless against nature. They gathered nuts, wild fruit and berries, roots and plants. Man’s first instruments were roughly chipped stones and sticks. Later people learnt to make the simplest tools.

The basis of production relations was communal ownership of the primitive labour instruments and production means. People lived together in communes. With the advance of cattle-breeding and agriculture there arose a social division of labour: animal husbandry (скотарство) separated from agriculture.

This led to higher productivity and productive forces growing.

Productive forces continued to expand and man began to produce more. It became possible to use workmen obtained through warfare (в війнах). Captured prisoners became slaves. There followed the first division of society into classes known as slavery. Slave-owners possessed both the means of production and the people engaged in production. The ancient world achieved considerable progress in economy and culture. But time passed, and the necessity to replace the slave-owning relations arose: the new feudal mode of production began to take shape.

semi-savage         напівдикий, первісний to be engaged in smth      займатися чимось slavery     рабство

advance  успіх, прогрес, поліпшення means of production  засоби виробництва

           tools                                                                      інструменти

           roughly                                                                 грубо

 

1.      Give English equivalents to the following:

Значний прогрес, засоби виробництва, основа виробничих відносин, соціальний поділ праці, відділитися від, стало можливим використовувати, захоплений полонений, рабовласник, стародавній світ.

2.      Complete these sentences with the words given below in appropriate form and translate the sentences into Ukrainian: to cover, to possess, to gather, to achieve, to learn, to separate

1.  The ancient world … considerable progress in economy and culture.

2.  Slave-owners …. both the means of production and the people engaged in production.

3.  The primitive-communal system …. the period of many hundred years. 

4.  People … nuts, wild fruit and berries.

5.  Then people … to make the simplest tools. 

6.  Animal husbandry … from agriculture.

3.      Complete the sentences and translate them into Ukrainian: 

1.  The basis of production relations was ….

2.  Man’s first instruments were …. 

3.  Social division of labour led to …

4.  Captured prisoners were…

5.  At first people were…

6.  People lived together in …..

4.      Answer some questions on the Text:

1. What was the first socio-economic formation? 2. What period did it cover? 3. What did people live on in a primitive society? 4. What was the first major social division of labour in history? 5. What did the first division of society into classes mean? 6. What were the relations in production based on?

 

3.3 FEUDALISM AND CAPITALISM

 

The feudal system existed in almost all countries. The epoch of feudalism covers a long period. In China the feudal system existed for more than two thousand years. In the West-European countries feudalism spread over some centuries, from the fall of the Roman empire to the bourgeois revolutions in England and France. In Russia it lasted from the 9th century to the abolition of serfdom in 1861.

The production relations of feudal society were based on the private landed property of the lords and their incomplete property rights over the serf. He was not a slave, he had his own holding (господарство). The peasant holding was the means by which the landlord secured his labour force.

The towns inhabited mainly by craftsmen and traders, were subjected to the authority of the feudal lord on whose land the town was built.

Under feudalism the productive forces reached a higher level than those under the slave system. Production technique in agriculture was improved, new branches of field cultivation arose, market-gardening developed

considerably.

But the feudal system acted as a brake on the productive forces development, so capitalist relations of production began to appear. The abolition of feudalism became a historical necessity.

The development of capitalism dealt a crushing blow (завдали нищівного удару) to natural economy. Under capitalism everything, including man’s labour power, took the form of a commodity. Commodity production became dominant and universal.

Once commodity production under capitalism had become the prevailing form of production, the relations between people in the process of production, i.e. their production relations, took the form of commodity relations. To exploit the worker, the capitalist has to hire him while the worker has to sell his labour power which is not a commodity. The worker receives a wage with which he buys his means of subsistence (засоби існування) -commodities.

Notes:

serfdom – крепостное право, рабство 

 

1.      Answer the questions on the Text:

1. Did the feudal system exist in all countries? 2. How long did the feudal system exist in China?

in Western Europe? 3. In what way did the landlord secure his labour force? 4. Who(m) were the towns subjected to? 5. Prove that the productive forces reached a higher level under feudalism. 6. What dealt a crushing blow to natural economy? 7. When did commodity production become dominant and universal? 8. Why does the worker have to sell his labour? 9. What is a wage?

2.      Render the contents of the Text in Ukrainian.

3.      Read and translate the Text.

Pick out 6–7 sentences which convey the basic information.

 

3.4 THE BASIC KINDS OF ECONOMIC SYSTEMS

 

The wants people have are almost unlimited. However, each society has a limited amount of resources from which to provide the goods and services to satisfy these wants. This scarcity of resources forces every society to make decisions about the following questions:

–  Which goods and services will be produced?

–  How will these goods and services be produced?

–  How will the goods and services be distributed?

The answers for every particular country will depend on its priorities. Some countries consider it very important to be powerful and to feel safe. Other countries are concerned with providing food and clothing to all inhabitants. The decision that a country make will determine the type of economic system it has.

The basic types of economic systems are traditional, command and market.

Traditional system is the system in which people do things the way they have always done them. They rely on the same tools and methods used by their parents. There is little or no change in such systems because most people methods are based on habit, custom and religious belief. Individuals are not free to make decisions according to what they want to have. Traditional system is not as widely spread as it was before. Though it is still a major force in some areas on the west coast of Canada, in Latin America, Africa and Middle East.

In a command system, the basic economic decision of what and how to produce and distribute is made by a central authority. The members of the society in the system obey. The central authority consists of one person or a small group who control factories, equipment and land. This system is still powerful in China and Cuba and recently our country and the countries of Eastern Europe operated under strong command system.

In a market system, the basic economic decision is based on the actions of people and business firms participating in many different markets. A market system produces goods and services that people are willing to buy and that can bring a profit to the sellers. The interaction of consumers and producers makes the system work. US, Canada and Japan are the best examples of this type of economic system.

The fact is that none of today's economic system is based totally on one of three principles just described. Modern economics have some element of all three influences in them. However, one of the principles is usually stronger than the others and defines the whole system.

A society's standard of living is one way to evaluate an economic system. The standard of living is a measure of how well the people live. It depends on the amount and kind of goods and services the people of a country enjoy, or their income.

a.       Answer some more questions about economic systems.

1.  Why is there no change in traditional system?

2.  Who makes the basic decision in command system?

3.  How do you understand that interaction of consumers and producers makes market system work?

4.  How do economists evaluate people’s standard of living?

b.      Read these sentences and define the economic systems they refer to.

1.       There will be no form of personal income which is derived from the ownership of property.

2.       The basic economic problems do not arise as problems to be discussed and argued about.

3.       All land, housing, factories, power stations, transport systems and so on are usually owned by the state.

4.       The elders, the heads of families, the women and the children will receive shares according to ancient custom.

5.       Businesses are free to choose whom to buy from and sell to and on what terms, and free to choose whom to compete with.

6.       People use methods of production and distribution which have become the accepted ways of doing things by a long process of trial and error.

7.       Incomes take the form of wages, interest, rent, and profits – the latter three of which arise from the ownership of various types of property.

8.       Private ownership of property leads to great inequalities of wealth, and this, in turn means that the wealthier groups are able to exercise great economic power.

9.       The running of such an economy will require large numbers of planners and administrators to draw up and operate the national plan.

c.       Work with a partner or in small group. Choose an economic system to speak about but don’t tell your partner which. Imagine you live in this economic system. Tell about the way you live and work. Let your partner guess the system.

 

3.5 MIXED ECONOMIES

 

Mixed economies - are economies that have characteristics of more than one system. There may be both private and public ownership of property. There may also be common ownership of resources that are provided by government.

It has been found necessary in many countries to control or regulate national economic conditions. Even the most dedicated free enterprise systems, such as the USA, have felt this need.

The under-developed countries of the world are usually interested in control and long-term planning.

Such countries as India have had a number of plans guided by the government. India makes a distinction between the public sector of the economy on the one hand and the private sector, on the other hand.

Britain today has a mixed economy. In the public sector of British economic life are the nationalized industries like coal and steel, British Rail and British Overseas Airways Corporation. In the private sector are the majority of the nation’s industries, both large and small.

The private sector includes giant companies like Imperial Chemical Industries and British Petroleum and a great number of small family businesses. In 1962 the government set up an official planning body to guide national economic policies. This body is called National Economic Development Council. The members of this council are representatives of the employers, the employees and other interested people.

Notes:

№ British Rail(ways) – мережа націоналізованих залізничних шляхів. Була створена в 1947 після націоналізації приватних залізничних компаній. 

British Overseas Airways Corporation - Британська корпорація закордонних авіаліній. Державна авіакомпанія, що ввійшла до складу British Airways в 1973 р.

Imperial Chemical Industries - Імперський хімічний трест (найбільший у Великій Британії та Західній Європі хімічний концерн)

British Petroleum - Британська нафтова компанія (найбільша нафтова компанія, яку було засновано в 1909 р.)

 

 

 

 

 

 

 

 

UNIT  4                                                 ECONOMIC LAWS

 

Read the international words and guess their meanings:

Rating, utility, complex, medicine, characteristic, to confuse, a submarine, national, a vegetarian, geography, a bomb, a piano, production, special, priorities, tendency, ordinary, to select, to reflect, automobile, brand, reputation, situation, to lead, combination, equilibrium, determinants, to regulate, to fix.

utility                                                        зд. общественная полезность to be related to                                        быть связанным с quantity                                                    количество to be available                                         быть в наличии, быть доступным

excess                                                       избыток, излишек to decrease                                               уменьшаться, убывать to increase                                                возрастать, увеличиваться to diminish                                               уменьшать, убывать to reduce                                                  понижать, сокращать to rate                                                       оценивать, определять

 

4.1 UTILITY AND PRICES

 

Our basic needs are simple, but our additional individual wants are often very complex. Commodities of different kinds satisfy our wants in different ways. A banana, a bottle of medicine and a Textbook satisfy very different wants. The banana cannot satisfy the same wants as the Textbook.

This characteristic of satisfying a want is known in economics as its utility. Utility, however, should not be confused with usefulness. For example, a submarine may or may not be useful in time of peace, but it satisfies a want. Many nations want submarines. Economists say that utility determines “the relationship between a consumer and a commodity”.

Utility varies between different people and between different nations. A vegetarian does not want meat, but may rate the utility of bananas very highly, while a meat-eater may prefer steak. A mountain-republic like Switzerland has little interest in submarines, while marine nations rate them highly.

Utility varies not only in relation to individual tastes and to geography, but also in relation to time. In wartime, the utility of bombs is high, and the utility of pianos is low. Utility is therefore related to our decisions about priorities in production - particularly in a centrally-planned economy. The production of pianos falls sharply in wartime.

The utility of a commodity is also related to the quantity which is available to the consumer. If paper is freely available, people will not be so interested in buying too much of it. If there is an excess of paper, the relative demand for paper will go down. We can say that the utility of a commodity therefore decreases as the consumer’s stock of that commodity increases. A special relationship exists between goods and services on the one hand, and a consumer and his money, on the other. The consumer’s desire for a commodity tends to diminish as he buys more units of that commodity. Economists call this tendency the Law of Diminishing Marginal Utility (закон убывающей предельной полезности).

1.      Give English equivalents to the following:

Задовольняти чиїсь бажання, не варто плутати з, відносини між, зростати, існувати, відрізнятися, корисність, оцінювати, особливо, різко падати, мати тенденцію, цікавитись чимось, відносний попит на.

2.      Complete these sentences with the words given below in appropriate form and translate the sentences into Russian: 

1.  This technique is very …: you won’t need much money and personnel.

2.  This is a purely …. approach, we must consider other aspects of the problem.

3.  Unfortunately, there is little information ….. on this interesting subject. 

4.  Why is this organization more ……. than that one?

5.  ….. productivity you should introduce new methods of financial management.

6.  Let’s take this concept as …. of our further research.

7.  This chapter ….. the most important processes within an organization. 8. The member of jobs in industry …. and unemployment rate consequently…..

3. Find the synonyms to the underlined words among the words given below: 

to supply, to affect, to possess, to diminish, a customer, complex 1. We are going to provide all necessary equipment and personnel. 

2.  I think none of us can influence the situation.

3.  He has a rare quality of a good conversationalist: he is a good listener. 

4.  Every person studying marketing knows the famous statement: “The client is always right”.

5.  Technological breakthroughs in automation, robotics and computer-assisted manufacturing have reduced industrial jobs.

6.  I am afraid this theory is too complicated for me to undrstand.

4. Summarize the contents of the Text using these questions as an outline:

What are people’s basic needs?

What do you understand by individual wants? What is utility?

In what way does “utility” differ from “usefulness”? What factors does utility depend on? Give examples.

 

4.2 PRICE

 

The second marketing-mix element is price. Ordinarily companies determine a price by gauging the quality or performance level of the offer and then selecting a price that reflects how the market values its level of quality. However, marketers also are aware that price can send a message to a customer about the product’s presumed quality level. A Mercedes-Benz vehicle is generally considered to be a high-quality automobile, and it therefore can command a high price in the marketplace. But, even if the manufacturer could price its cars competitively with economy cars, it might not do so, knowing that the lower price might communicate lower quality. On the other hand, in order to gain market share, some companies have moved to “more for the same” or “the same for less” pricing, which means offering prices that are consistently lower than those of their competitors. This kind of discount pricing has caused firms in such industries as airlines and pharmaceuticals (which used to charge a price premium based on their past brand strength and reputation) to significantly reevaluate their marketing strategies

competitive  to be aware  to gauge  to evaluate  to gain  share

конкурентний знати, усвідомлювати оцінювати, вимірювати оцінювати отримати ділитися

 

1.      Give Ukrainian equivalents to the following:

ordinarily, performance level of the offer, level of quality, to be aware, presumed quality level, to gain market share, discount pricing, pharmaceuticals, to evaluate. 

2.      Complete these sentences with the words given below in appropriate form and translate the sentences into Ukrainian:  

1.  Ordinarily the lower price communicates lower ….

2.  A company determines a price by … a price that reflects how the market … its level of quality.

3.  A Mercedes-Benz vehicle can command … in the market place. 

4.  Employers always ask for… wages and …. working hours.

5.  The position of the Company was … when we launched that program. 

3. Complete the sentences and translate them into Ukrainian:

1. A price sends a message to a customer ….. 2. Some Companies had to reevaluate …. 3. In order to gain market share …. 4. Generally companies determine a price by …. 5. A Mercedes-Benz vehicle is considered ….

4. Substitute the underlined words with their synonyms from the list below:  

1.  Nowadays we are becoming increasingly aware of the importance of this problem.

2.  I am particularly interested in selling the products.

3.  It will be very difficult to meet this particular requirement.

4.  When these processes do not function well, unfortunate problems can arise.

5.  It is difficult to evaluate all the factors influencing performance efficiency.

6.  It would be desirable to establish a special commission to deal with this conflict.

 

 

4.3THE PRICE SYSTEM

 

The utility of a commodity is related to the Laws of Supply and Demand. When economists talk about a Law of Supply, they mean that a rise in prices tends to increase the supply of a commodity, while a fall in prices tends to reduce it. When they talk about a Law of Demand, they mean that the fall in prices tends to increase the demand for a commodity, while a rise in prices tends to decrease the demand. In any economic situation, a consumer will decide to buy a commodity only in terms of its particular utility to him. So changes in market prices lead to changes in the quantity of a particular commodity made available to consumers.

Equilibrium is a combination of price and quantity at which the quantity demanded and the quantity supplied are the same. Once an equilibrium is achieved, there is no incentive for producers or consumers to move away from it. An equilibrium price changes only when demand or supply changes -i. e., when the determinants of demand or the determinants of supply change. 

A price that is above the equilibrium price creates a surplus, because producers are willing and able to offer more for sale than buyers are willing and able to purchase.

A price that is below the equilibrium price leads to a shortage, because buyers are willing and able to purchase more than producers are willing and able to offer for sale.

When demand changes, price and quantity change in the same direction. When supply changes, price and quantity change but not in the same direction. When both demand and supply change, the direction of the change depends on the relative sizes of the changes in demand and supply.

Markets may not always be in equilibrium because price changes may be costly, buyers and sellers fix prices for long periods of time, or the government may regulate prices.

supply  demand  рarticular  incentive

пропозиція попит особливий мотивуючий

 

1.      Give Ukrainian equivalents to the following:

supply and demand, utility of a commodity, a rise in prices, a fall in prices, to increase, to reduce, particular utility, quantity and quality, an equilibrium price, to create a surplus, to purchase, to lead to a shortage, to fix prices.

2.      Agree or disagree with the statements: 

1. You can rely on these inaccurate data. 2. It is impossible to deal with inefficient and unqualified staff. 3. Utility varies between different people and between different nations. 4. In wartime the utility of bombs is high and the utility of pianos is low. 5. A rise in prices tends to increase the demand for a commodity. 6. When demand changes, prices and quantity change in the same direction. 

3. Find all the synonyms in the right column to match the words in the left one.

1.      to value  2.      to set up 3.      to manage  4.      to connect  5.      to adapt 6.      to deal with  7.      to arise 8.      to reduce  9.      to increase  10.  to possess  11.  to supply 12.  to declare  13.  to affect  14.  kind 15.  important  16.  result 17.  salary

significant  type  suggestion  to own to have to evaluate  to estimate  to gauge to cope with  to appear to emerge to decrease  to diminish  to lessen to raise to enhance  to grow

18.  power            to relate

19.  object             to get used to 

20.  point              to supervise 

21.  offer   to establish 

22.  complex         proposal 

23.  profit             outcome 

24.  basic              wage 

25.  wealth            authority 

26.  immediately  requirement 

27.  demand          to influence 

28.  colleagues     aim

29.  to initiate       question 

at once  intention co-workers 

complicated  to start  benefit  fundamental  to provide  to announce  riches

4. Answer some questions on the Text: 

1. What does the Law of Supply state? 2. What does the Law of Demand state? 3. What occurs to price when (a) demand increases? (b) supply falls? (c) demand rises and supply falls? 4. What is equilibrium? 5. What occurs when the quantities demanded and the quantities supplied are not equal?

 

4.4 SUPPLY AND DEMAND

 

Economists talk about the Law of Supply, in which a rise in prices tends to increase supply, while a fall in prices tends to reduce it. If prices rise for a particular commodity, the rise will of course encourage producers to make more. On the other hand, if prices fall either locally or throughout the world, producers will reduce production. This can result in serious difficulties for many producers, and may cause them to go out of business completely. Over-production of any commodity can also create difficulties, because it can lead to a glut on the market, which may cause prices to fall sharply.

Changes           in         prices   lead     to changes in the quantity of a particular commodity which is made available to consumers. In such instances supply is said to be “elastic”, because it can be increased or decreased rapidly in response to market prices.

Elasticity of         supply,             as         a response to changes in price, is related to   demand.       Economists     define

“demand” as a consumer’s desire or want, together with his willingness to pay for what he wants. We can say that demand is indicated by our willingness to offer money for particular goods or services. Money has no value in itself, but serves as a means of exchange between commodities which do have a value to us.

Usually we have to decide carefully how to spend our income. We do it according to our personal scale of preferences. In this scale of preferences essential commodities come first (food, clothing, shelter, medical expenses etc.), then the kind of luxuries which help us to be comfortable (telephone, special furniture, insurance etc.), and finally those non-essentials which give us personal pleasure (holidays, parties, visits to theatres or concerts, chocolates etc.). Elasticity of demand is a measure of the change in the quantity of a good, in response to demand. The change in demand results from a change in price. Demand is inelastic when a good is regarded as a basic necessity, but particularly elastic for non-essential commodities. Accordingly, we bay basic necessities even if the prices rise steeply, but we buy other things only when they are relatively cheap.

1. Answer some questions on the Text:

1. What is the essence of the Law of Supply? What is elasticity of supply a response to? 2. What is the definition of “demand”? 3. How is demand indicated? 4. What is money? 5. What do we do when we exercise choice? What is elasticity of demand? 6. When is demand inelastic? 2. Summarize the contents of the Text using these questions as an outline.

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIT   5                                                                    MONEY

 

5.1 MONEY AND ITS FUNCTIONS

Money is a commodity commonly accepted as a medium of economic exchange. The idea of money as a universal equivalent is familiar to us since our childhood. Money circulates from person to person and country to country, thus facilitating trade, and it is the principal measure of wealth. Money has four functions: [1] to serve as a medium of exchange,            a          commodity      universally accepted in exchange for goods and services and for the discharge of debts or for the discharge of contracts; [2] to act as a unit of account, the unit that makes the operation of

the price system possible and provides the basis for keeping accounts and calculating cost, profit and loss; [3] to serve as a standard of deferred payments, the unit in which loans are made and future transactions are fixed: and [4] to provide a store of wealth, a convenient form in which to hold any income not immediately required for use.

           commodity                                                           товар

            medium of exchange                                           засіб обміну

           facilitate                                                               сприяти

            discharge of debt                                                 погашення боргу

discharge of contract       виконання договору unit of account             одиниця розрахунку price system            цінова система

keep an account   вести рахунок cost     вартість

profit       прибуток loss             збиток

            deferred payment                                                 відстрочений платіж

defer payment     відкласти платіж loan           позика

future transactions/futures          ф’ючерсні угоди (купівля-продаж товарів              за фіксованою на момент складання угоди

    ціною з виконанням операцій через певний          час 

    зберігання матеріальних цінностей store of wealth

 

1.      Answer the questions

1.       What is meant by the term "money"? 2. How many functions does money have? 3) What does money serve as? 4) What does money act as? 5) What does money make? 6) What does money provide? 7) What does money calculate? 8) What is the third function of money? 9) What is the fourth function of money?

2.      Agree or disagree with the following statements

1.       Money is a medium of communication. 2) The idea of money as a universal equivalent is unfamiliar to us. 3) Money has five functions. 4) Money is used in exchange for goods and services. 5) Money is used for the discharge of defendant. 6) Money is used for the discharge of agreements. 7) Money acts as a trustee. 8) Money makes the operation of the price system impossible. 9) Money ensures the basis for keeping accounts. 10) Money counts cost, profit and loss. 11) Money is exercised as a standard of deferred payments. 12) Money serves as the unit in which borrowings are made. 13) Money serves as the unit in which futures are fixed. 14) Money provides a store of material values.

3.      Translate the following words, phrases and statements from Ukrainian into English

Обмін; зручний; тримати; прибуток; негайно; вимагати; необхідний; можливий; добре знайомий; економічний; звичайно; еквівалент; товар; засіб обміну; слугувати в якості; загальноприйнятий; товари; послуги; погашення боргу; одиниця розрахунку; цінова система; забезпечувати; вести рахунок; підраховувати; вартість; прибуток; збиток; відстрочений платіж; позика; угода на термін; зберігання матеріальних цінностей; вживання; сприяти; виконання договору.

Гроші – це металічні та/або паперові знаки, що є мірою вартості при купівлі/продажі та виконують роль загального еквіваленту, тобто виражають вартість усіх інших товарів та обмінюватися на них. Гроші – це особливий товар, що виконує роль загального еквівалента.

4.      Complete the following statements. Choose one topic to speak about money: a) its definition; b) its first function; c) its second function; d) its third function; e) its fourth function. Retell the text Money and its functions.

1.       Money is ... 2) The idea of money as a universal equivalent is ... 3) Money has ... 4) Money serves as ... 5) Money is used in exchange for ... 6) Money is used for the discharge of ... 7) Money acts as ... 8) Money makes ... 9) Money provides ... 10) Money calculates ... 11) Money serves as a standard of ... 12) Money is the unit in which ... 13) Money provides a store of... 14) Money is a convenient form in which ...  

5.2 PAPER MONEY AND GOLD STANDARD

 

Metals, especially gold and silver, have been used for money for at least 4,000 years. For perhaps 2.600 years, standardized coins have been the form in which money metals circulate. Gold and silver coins contain legally specified amounts of gold or silver and are theoretically equal in value to that quantity of the metal. Coins or uncoined bullion, however, can be an inconvenient and insecure mode for conveying large quantities of value. For large transactions, various forms of paper notes came into use. In the late 18th and early 19th centuries, banks began issuing such notes - banknotes. Each banknote was redeemable for gold or silver. This paper money became the principal money of growing industrial economics. Up to 1931, paper money was backed by a reserve of gold and any settlement of international debts was settled by the transfer of gold from one country to another. With the collapse of the gold standard in 1931, many countries suspended the movement of gold, but gold still being a precious metal is still quoted each day on the market in ounces against the US $.

specify value  bullion

точно встановлювати вартість злиток золота або срібла

insecure mode  convey 

issue  redeemable in gold  redeem  settle   transfer  collapse  suspend  precious  quote  ounce (28.35 grams).

 

1. Answer the questions небезпечний спосіб перевозити пускати в обіг той, що можна перевести в золото викупати залагоджувати переміщення обвал призупиняти дорогоцінний дати розцінку унція

1) What has been used for money for 4,000 years? 2) What form did money metals circulate in? 3) What do gold and silver coins contain? 4) What can be inconvenient and insecure for conveying large quantities of value? 5) What came into use for large transactions? 6) When did banks begin issuing banknotes? 7) What was each banknote redeemable for? 8) What did this paper money become? 9) What was paper money backed by up to 1931? 10) What was settled by the transfer of gold from one country to another? 11) Why did many countries suspend the movement of gold? 12) What is still quoted each day on the market?

2. Agree or disagree with the following statements

1) Metals were not used for money. 2) Money metals moved around in the form of coins. 3) Gold coins had legally specified amounts of gold as a part. 4) Coins might be convenient and secure for conveying large quantities of value. 5) Paper notes came out of use for large transactions. 6) Banks ceased issuing banknotes. 7) Each banknote might be bought in for gold. 8) This paper money became the most important money of economies. 9) Paper money was supported by a reserve of gold. 10) Any settlement of debts was ended by the transfer of gold. 

11) Gold standard failed in 1931. 12) Gold is estimated each day on the market. 13) The gold standard means the use of the value of gold as a fixed standard on which to base the value of money. 3. Translate the following words, phrases and statements from Ukrainian into English

Стандартизувати; викупати; урегулювання; залагоджувати; переміщувати; обвал; призупиняти; дорогоцінний; дати розцінку; унція; злиток золота чи срібла; небезпечний; спосіб; перевозити; угода; пускати в обіг; той, що можна перевести в золото; бути в обігу; юридично; точно встановлювати; вартість; золотий стандарт.

Золотий стандарт – це грошова система, при якій ціна валюти, що виражається в золоті, встановлюється законом, і органи влади повинні бути готовими обміняти за вимогою золото на валюту за встановленим курсом. Для золотого стандарту характерними є вільні чеканка та обіг золотих монет. В більшості країн золотий стандарт було скасовано в 1931 році.

4. Complete the following statements. Choose one topic to speak about a) money metals; b) paper money; c) gold standard. Retell the text Paper money and gold standard. 

1) Gold and silver have been used for ... 2) Money metals circulate in the form of ... 3) Gold and silver coins contain ... 4) Gold and silver coins are equal in ... 5) Coins or uncoined bullion can be

... 6) Various forms of paper notes came into use 

for... 7) Banks began ... 8) Each banknote was redeemable for ... 9) This paper money became ... 10) Paper money was backed ... 11) Any settlement of debts was settled by... 12) Many countries suspended ... because of ... 13) Gold is still quoted ...

 

 

5.3 MONETARISM

 

Monetarism as an economic theory states that inflation is caused by an excessive supply of money. Thus the best way to manage and control a country's economic system is to limit the amount of money in circulation. Where there is too much money it will cause the price of goods to rise, i.e. the value of money will fall. The concept of money supply (all the money that exists in a country's economic system at a particular time) plays an important role in economic policymaking, because many economists believe that it is the quantity of money within the economy that ultimately determines real price levels, the rate of economic growth, and the rate of inflation. The Federal Reserve Banks in the United States and the Bank of England in the United Kingdom regulate the money supply to stabilize their respective economies. The Federal Reserve Banks, for example, can buy or sell government securities, thereby expanding or contracting the money supply. Monetary systems are today very much alike in all the major countries of the world. Monetary systems consist of three levels: [1] the holders of money (the "public") – individuals, businesses, governmental units; [2] commercial banks, which borrow, by way of demand deposits (= bank deposits that can be withdrawn without advance notice), from the public and make loans to individuals, firms, or governments; and [3] central hanks, which have a monopoly on the issue of money, serve as the bankers for the central government and the commercial banks, and have the power to determine the quantity of money in circulation.

monetarism  excessive money supply  ultimately government securities  expand  contract  governmental units  demand deposit

монетаризм грошова маса в обігу державні цінні папери розширювати скорочувати урядові підрозділи вклад до запитання

 

1.      Answer the questions

1)                  What does monetarism state? 2) What is the best way to manage an economy? 3) What will cause the price of goods to rise? 4) What plays an important role in economic policymaking? 5) What do economists believe? 6) What might be done to expand or contract the money supply? 7) What is the first level of monetary systems? 8) What is the second level of monetary systems? 9) What is its third level?

2.      Agree or disagree with the following statements

I) Deflation is caused by an excessive supply of money. 2) Too much money in circulation does not cause the price of goods to rise. 3) To limit the amount of money in circulation is the best way to control an economy. 4) Money supply plays an insignificant role in economic policymaking. 5) The quantity of money in circulation has a strong influence on real prices. 6) The quantity of money in circulation has a strong effect on the rate of economic growth. 7) Commercial banks do not borrow money from the public.

3.      Translate the following words, phrases and statements from Ukrainian into English.

Монетаризм; стабілізувати; відповідний; регулювати; темп економічного росту; інфляція; бути причиною; надмірний; грошова маса в обігу; вартість; думка; керувати; контролювати; кількість; розробка політичного курсу; думати; наприкінці; визначати; рівень; державні цінні папери; таким чином; розширювати; скорочувати; грошовий; головний; фірма; урядові підрозділи; позичати; вклад до запитання; позика; емісія; темп розвитку інфляції; Федеративний резервний банк; спільнота.

Монетаризм – це економічна теорія, згідно якій принцип жорсткого контролю над кількістю грошей в обігу є головним інструментом кредитно-грошової політики, особливо тієї, що направлена на боротьбу з інфляцією. Монетаризм зазвичай тягне за собою скорочення розтрат населення і тимчасове встановлення високих процентних ставок.

4.      Complete the following statements. Choose one topic to speak about a) the first level of monetary systems; b) the second level of monetary systems; c) the third level of monetary systems. Retell the text Monetarism. 

1)                  Monetarism states ... 2) The best way to control a country's economic system is ... 3) ... will cause the price of goods to rise. 4) The concept of money supply plays ... 5) Many economists believe ... 6) ... regulate the money supply to stabilize ... 7) ... can buy or sell ... 8) Monetary systems consist of ...

 

 

5.4 MONEY LAUNDERING

 

Criminals use the financial system to put money which has been obtained illegally into legal businesses and bank accounts, so that they can hide it or use it. These activities are commonly referred to as money laundering. In January 1989 the Basle Statement of Principles on Money Laundering was circulated to all institutions authorised under the Banking Act. The Statement of Principles does not restrict itself to drug related money laundering, but extends to all aspects of laundering through the banking system, i.e. the deposit, transfer and/or concealment of money derived from illicit activities whether robbery, terrorism, fraud or drugs. 

The Statement of Principles seeks to deny to those involved in money laundering by the application of the following principles: (a) Know your customer - banks should make reasonable efforts to determine the customer's        true      identity,             and      have effective procedures for verifying the bona fides of new customers, that is, they are who they say they are. (b) Compliance with laws - banks should ensure that business is conducted in conformity with high ethical standards and laws; that a service is not provided where there is good reason to suppose that transactions are associated with laundering activities. (c) Co-operation with law enforcement agencies - within any constraints imposed by             rules    relating            to         customer

confidentiality, banks should co-operate fully with national law enforcement agencies including, where there are reasonable grounds for suspecting money laundering, taking appropriate measures which are consistent with the law.

money-laundering  laundered money  circulate/extend  authorize  restrict transfer  concealment  illicit  deny  reasonable  true  identity  verify  bona fides  law compliance  constraints  confidentiality consistent  mistaken identity

відмивання грошей відмиті гроші поширювати узаконювати обмежувати переміщення приховування незаконний не припускати доречний дійсний впізнання особистості засвідчити справжність чесність, добропорядність дотримання закону обмеження конфіденційність той, що узгоджується прийняття одної особи за іншу

 

1. Answer the questions

1) What is commonly referred to as money laundering? 2) What was circulated to all banks in 1989? 3) What does the Statement of Principles extend to? 4) How many principles are included in the Statement of Principles? 5) What is the first one? 6) What is the second one? 7) What is the third one? 2. Agree or disagree with the statements

1) Banks should determine the customer' s mistaken identity. 2) Banks should not check the bona fides of new customers. 3) If you check someone's bona fides, you check that they are who they say they are. 4) Banks should ensure that business is conducted in a way that obeys rules. 5) Banks should make it certain that a service is not provided where there are laundering activities. 6) Banks should disobey law enforcement agencies. 7) Banks should take correct or suitable measures against money laundering.

3.      Translate the following words, phrases and statements from Ukrainian into English

Помилкове впізнання особистості, застосування, справжній, впізнання особистості, засвідчувати справжність, сумлінність, дотримання закону, забезпечувати, відповідність, надавати, припускати, поширювати, трансферт, приховування, незаконний, шахрайство, шукати, не допускати, угода, відмивання грошей, узаконити, відмиті гроші, обмежувати, асоціюватися, обмеження, конфіденційність, той, що узгоджується.

4.      Complete the following statements. Choose one topic to speak about Money laundering a) its first principle; b) its second principle; c) its third principle. Retell the text Money laundering. 

1) Criminals use ... 2) These activities are referred to as ... 3) ... was circulated to ... 4) The Statement of Principles does not restrict ... but extends to ... 5) Banks should make ... 6) Banks should have ... for verifying ... 7) Banks should ensure that business is ... 8) Banks should ensure that a service is ... 9) Banks should co-operate ... including taking ...

 

 

5.5 WHAT ARE THE WORLD’S MAJOR CURRENCIES?

 

The currencies of the world’s major economies have names and backgrounds that are as diverse as the countries themselves. The dollar, used in many countries including the United States, Canada, and Australia, gets name from a silver coin minted during the Middle Ages in a small valley, or «Thal», in Bohemia called Joachimsthal. Just as a sausage from Frankfurt came to be called frankfurter, the coins from Joachimsthal were called «Joachimstaler» or simply «Thaler», and came to be called «dollar» in English.

The pound, used in Britain, Egypt, and Lebanon among others, refers to the weight used in determining the value of coins, based on precious metals such as gold or sterling. The penny has the same origin as the word pawn, found in terms such as pawn shop, and originally meant «to pledge». A penny, like any currency, is a «pledge» of value. 

The riyal, in Saudi Arabia and Qatar, and the rial in Iran, are based on the Spanish word real – which, in turn, was derived from the Latin regal(is) – referring to earlier «royal» coins. The dinar, used in Iraq and Kuwait among others, derives its name from «denarius», a Roman coin that was worth «ten bronze asses», an item of considerable value in days of old. In India, Pakistan, and other countries of the subcontinent, the currency is called rupee (in Indonesia, rupiah), based on the Sanskrit word rupya, meaning «coined silver».

The ancient Chinese word yiam meant «round», or «small round thing». The name of the Japanese currency, the yen, and the name of the Chinese currency, the yuan, both derived from the old Chinese word, refer to the round shape of the original coins.

1.      Answer the questions.

1. What countries is dollar used in? 2. What is the origin of dollar? 3. What currency is used in Egypt? Saudi Arabia? Kuwait? 4. What is the origin of the word «penny»? 5. What is the history of the Japanese currency name?

2.      Summarize the text.

3.      Fill in the chart with the currency signs and countries they are officially used in.

1	Generic currency symbol
2		$	the United States of America
3	Euro, EUR
4		₵
5	Pound Sterling, GBP
6		¥
7		₪	Israel
8			Brazil
9	Hryvnia, UAH	₴

 

4.      Complete the sentences with appropriate words according to the text you have just read.

1.  There are many forms of money. For example, ... , ..., and ... .

2.  Some societies used  ...  and  ...  as money.

3.  Workers pay for  ...  and  ...  with the money they receive for their labour.

4.  Both public and  ...  trading  ...  are expressed in  ... .

5.      Study the information about an automated teller machine (ATM).

An automated teller machine, banking machine (ABM) or Cash Machine is a computerized telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller.

a)   Look at the picture of an automated teller machine below and put instruction in order.

b)   Correct or enlarge the list of instruction.

c)   Describe the work of an automated teller machine using the expressions:

–  banking terminal

–  to accept deposits

–  to dispense cash

–  to insert a cash or credit card

–  to contain the user’s account number

–  PIN on a magnetic stripe

–  to call up the bank’s computers

–  to transmit a completed transaction notice

 

a)              Key   your   personal identification number (PIN).

b)             Remove the card

c)              Take the cash.

d)             Wait for the machine to check

your number.

e)              Select the operation you want.

f)               Indicate the amount of money

you want to withdraw.

g)             Insert your card.

 

 

 

 

 

5.6 NAMING THE CURRENCY AND CREATING THE € SYMBOL

 

1.      Remember the meaning of the words that you will find in the text «Naming the currency and creating the € symbol».

Council – an advisory, deliberative, or legislative body of people formally constituted and meeting regularly;

Connotation – an idea or feeling that a word invokes person in addition to its literal or primary meaning;

To reject – to dismiss as inadequate, inappropriate, or not to one’s taste;

Survey – an investigation of the opinions or experience of a group of people, based on a series of questions;

To inspire – to affect;

To intend – to have (a course of action) as one’s purpose or objective; to plan; To reduce – to make smaller or less in amount.

2.      Give Ukrainian equivalents of the following names of the organizations.

–  The European Council

–  The European Union (EU)

–  The Commissioner in Charge of Economic and Financial Affairs

–  The International Organization for Standardization (ISO)

3.      Before reading the text «Naming the currency and creating the € symbol» discuss these questions.

1) What is the European Union? 2) How many member states (countries) are there in the European Union nowadays? 3) What do you know about the currency of the European Union (EU)?

 

Naming the Currency and Creating the € Symbol

At the meeting of the European Council in Madrid in December 1995, Europe’s leaders decided on the currency’s new name: the euro. Other suggestions were rejected because of their national connotations. These included the «ducat», «ecu», «florin», «franken», or using the euro as a prefix to existing currency names – «euromark», for example. They agreed that the name should be the same in all official languages of the European Union (EU), taking account of different alphabets, and easy to pronounce. Above all, it had to be simple and representative of Europe.

The currency also needed to have a symbol. Like the name, the symbol had to be clearly associated with Europe, easy to write and attractive. A list of thirty possibilities drawn up by European Commission staff was reduced to ten and these became the subject of a public survey. From this shortlist, two possible symbols emerged and the final choice was made by the then President of the Commission, Jacques Santer, and YvesThibault de Silguy, the Commissioner in charge of Economic and Financial Affairs at that time.

The euro symbol was inspired by the Greek letter epsilon, reflecting the cradle of European civilization. «E» is of course the first letter of the word Europe. The two strong parallel horizontal lines are intended to symbolize the stability of the currency. The official abbreviation of the euro, EUR, has been registered with the International Organization for Standardization (ISO).

1.      Read the text and answer the following questions.

1)      When and where did leaders decide on the currency’s new name? 2) What letter was the euro symbol inspired by? 3) What is the official abbreviation of the euro? 4) What is the symbol of stability of the currency?

2.      Fill in the gaps with correct word-combinations in the correct tense form: to associate with, to decide on, be the same in, made by, to register with, to be inspired by.

1)      At the meeting of the European Council in Madrid in December 1995, Europe’s leaders ________the currency’s new name: the euro.

2)      They agreed that the name should ________ all official languages of the European Union (EU).

3)      The currency also needed to have a symbol. Like the name, the symbol had to be clearly ________Europe, easy to write and attractive.

4)      The euro symbol _________ the Greek letter epsilon, reflecting the cradle of European civilization.

5)      The official abbreviation of the euro, EUR, has been _______ the International Organization for Standardization (ISO).

3.      Read the information and translate it orally.

Exchange rate is price of one country’s money in relation to another’s. Exchange rates may be fixed or flexible. An exchange rate is fixed when two countries agree to maintain a fixed rate through the use of monetary policy. Historically, the most famous fixed exchange-rate system was the gold standard; in the late 1850s, one ounce of gold was defined as being worth 20 U.S dollars and 4 pounds sterling, resulting in an exchange rate of 5 dollars per pound. An exchange rate is flexible, or «floating», when two countries agree to let international market forces determine the rate through supply and demand. The rate will fluctuate with a country’s exports and imports. Most world trade currently takes place with flexible exchange rates that fluctuate within relatively fixed limits. (from Britannica Concise Encyclopedia)

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIT 6                                                                   CREDIT

 

6.1 CREDIT AND CREDITING

 

Credit - transactions between two parties in which one (the creditor or lender) supplies money, goods, services, or securities in return for a promised future payment by the other (the debtor or borrower). [Creditor is someone who money is owed to. Debtor is someone who owes money.] Credit given is an indication of trust in that person to pay for the goods given or money lent. Credit transactions normally include the payment of interest to the lender. Credit may be extended by public or private institutions to finance business activities, agricultural operations, consumer expenditures, or government projects. Most modern credit is extended through specialized financial institutions, of which commercial banks are the oldest and most important. The lender must judge each loan he makes on the basis of the character of the borrower (his intention to  repay), his capacity to repay (based on his potential for earning income), and his collateral (property or other goods that you promise to give someone if you cannot pay back the money they lent you). [Loan is an amount of money that you borrow from a bank.] Customers and lenders may publicly regulate the terms of credit transactions to prevent abuses.

crediting  securities  shares bonds in return given indication  extend  finance  expenditures  judge  capacity  collateral  abuse  imply  discharge of debt

кредитування цінні папери акції облігації натомість наданий знак  надавати фінансувати витрати оцінювати здібність застава зловживання мати на увазі погашення боргу

 

1.      Answer the questions

1)      What is meant by the term “credit”? 2) What does credit normally include? 3) What institutions may extend credit? 4) What may credit finance? 5) How is most modern credit extended? 6) How must the lender judge each loan? 7) What does the character of the borrower imply? 8) What is the debtor's capacity to repay based upon? 9) What does the debtor's collateral imply? 10) What may be publicly regulated? 11) Why may the terms of credit transactions be publicly regulated?

2.      Agree or disagree with the following statements.  

1)      Credit is an arrangement with a shop, bank etc. that makes it possible for you to buy something and pay for it later. 2) The lender supplies shares in return for a future payment by the borrower. 3) Credit doesn't include the payment of interest to the lender. 4) Credit may sponsor consumer expenditures. 5) The lender must appreciate each loan. 6) The lender must estimate the character of the borrower. 7) The lender may not judge the borrower's intention to repay. 8) The borrower must judge the lender's capacity to repay. 9) The borrower's capacity to repay is based on his potential for making money. 10) The lender must judge the borrower's pledge. 11) The terms of credit can't prevent abuses by customers and lenders. 12) Customers and lenders may secretly correct the terms of credit transactions to prevent abuses.

3.      Translate the following words, phrases and statements from Ukrainian into English.

Кредитування, акції, натомість, обіцяти, обіцяний, борг, дебітор, позичати, знак, довіра, угода, проценти, надавати, фінансувати, споживач, витрати, оцінити, позика, здібність, заробити, дохід, застава, умови угоди, публічно, запобігти, замовник, мати на увазі, кредитор, давати в борг, постачати, цінні папери, наданий, зловживання, особа, яка бере участь.

Кредит – це позика в грошовій або товарній формі на умовах повернення. Кредитор – це один з учасників кредитних відносин, що виступає як суб’єкт, що надає позику. Кредитором може бути держава, банк, підприємство або організація. Дебітор – це боржник, юридична або фізична особа, що має грошову заборгованість перед підприємством, організацією. Боржник – це сторона в зобов’язані, від якої інша сторона – кредитор має право вимагати передачі майна, виконання роботи або виплати грошей в рахунок погашення боргу.

4.      Complete the following statements. Choose one topic to speak about a) credit, its transactions and its terms; b) the character of the borrower. Retell the text Credit and crediting.

1)      Credit means ... 2) Credit given is ... 3) Credit transactions include ... 4) Credit may be ... 5) Credit finance ... 6) Most modern credit is extended ... 7) The lender must judge ... 8) Customers may regulate...  

6.2 CREDIT RISK

 

Credit risk – in general, the risk that a lender will not be able to get the money loaned back from the borrower. To guard against this, the credit risk is assessed either by a lending manager at an interview, or by the submission of a specially prepared form which is designed to score the credit rating. Credit scoring is a method of measuring the risk factor in a personal lending situation. By using this computer method, the bank saves on management time, clerical costs, etc. The procedure only demands the time of a junior clerk to see that the customer completes the form correctly and such data as marital status, address, employment, incon1e, etc. is fed into the computer and the answer is given. Should the answer be unreasonable, then the loan application can be referred to a senior official. Credit rating is a judgment made by a financial institution about how likely a person or business is to pay their debts. Credit rating is usually obtained through the banking system or through the credit analyst whose function is to research into the records / affairs of an individual or company to assess whether that person / entity has a degree of creditworthiness (creditworthy - considered to be able to repay debts).

credit risk  interview  credit scoring system   clerical  marital status  refer  credit rating    judgement  entity

кредитний ризик ділова зустріч, співбесіда система оцінки потенційних позичальників канцелярський сімейний стан направляти рейтинг загальної кредитоздатності позичальника думка юридична особа

 

1.      Answer the following questions

1)      What is meant by the term "credit risk"? 2) What is to be done to guard against credit risk? 3) Who has the right to assess credit risk? 4) What is meant by the term "credit scoring"? 5) What does the bank save by using credit scoring? 6) What does the procedure of credit scoring demand? 7) What is fed into the computer? 8) When can the loan application be referred to a senior official? 9) What does credit rating inform? 10) How is credit rating usually obtained? 11) What is the function of credit analyst?

2.      Agree or disagree with the following statements.

1)      A lending manager at an assignation assesses credit risk. 2) Credit risk might not be assessed. 3) Credit scoring is not a method of measuring risk factor. 4) The bank economizes clerical costs by using credit scoring. 5) The procedure demands the time of a senior clerk. 6) The customer completes the form untruthfully. 7) Such data as matrimonial status or address is fed into the computer. 8) The loan application can be referred to a junior official. 9) Credit rating is an estimation made by a financial institution. 10) Credit rating is derived through the banking system. 11) Credit rating is not obtained through the credit analyst. 12) Credit analyst studies the affairs of an individual in detail. 13) Credit analyst assesses whether that person has a degree of solvency. 14) Lender is a person that offers money to a borrower with the expectation that repayment will be made, with interest, either by instalments or in one amount, by a specified date.

3.      Translate the following words, phrases and statements from Russian into English.

Юридична особа, ризик несплати по кредиту, вимірювати, берегти, канцелярський, молодший службовець, данні, сімейний стан, живити, нерозумний, прохання, направляти, старший, рейтинг загальної кредитоспроможності позичальника, надання документів, ймовірний, досліджувати, позика, оцінювати, ділова зустріч, система оцінки потенційних позичальників, кредитоспроможність.

Кредитоспроможність визначається показниками, що характеризують позичальника:

його акуратністю при розрахунку за раніше отримані кредити, його поточним фінансовим станом, його здатністю за потреби мобілізувати грошові кошти з різних джерел. Кредитний ризик – це ймовірність несплати заборгованості за платежем та зобов’язаності у встановлений договором термін.

4.      Complete the following statements. Choose one topic to speak about a) credit risk; b) credit scoring; c) credit rating; d) credit analyst's function. Retell the text Credit risk.

1)      Credit risk means ... 2) Credit risk is assessed ... 3) Credit scoring is ... 4) The bank saves ...

by using ... 5) Credit scoring demands ... 6) Credit scoring includes such data as ... 7) The loan application is referred ... when ... 8) Credit rating is ... and is obtained through ... 9) The function of credit analyst is ….

 

 

6.3 CREDIT UNION

 

Credit union. A system, popular in North America, by which people with a common bond - membership of the same club, church, tenants' association or trade union - can collaborate to put their savings (all the money that one has saved, especially in a bank) into a joint fund. Members can then apply to borrow from the fund and make repayments at an annual rate of interest of 12 per cent. The loans are usually short-term consumer loans, mainly for automobiles, household needs, medical debts, and emergencies. In less developed countries these loans are particularly important, constituting the only credit source for many people, and are used primarily for farm production and small business enterprise. Credit unions generally operate under government charter and supervision. At annual meetings, the members elect the directors, the credit committee, and the supervisory committee. The Credit Union Act 1979 included the following: 1. the minimum membership shall be 21 and the maximum 5000; 2. the maximum savings permitted per person to be 3000$; 3. the unions must be nonprofit making and the purpose is to provide a service to its members. сredit union            кредитний союз

common bond                                                         загальний зв’язок

tenant             орендар savings         заощадження

repayment                                                               погашення

rate of interest                                                         ставка відсотка

supervisory                                                             наглядовий орган

minimum                                                                 мінімум

maximum                                                                максимум

 

1. Answer the following questions

1) What people can put their savings into a joint fund? 2) Can the members of credit unions apply to borrow from the fund? 3) What repayments can the members make? 4) What loans can the members take? 5) What do these loans constitute? 6) What are these loans used for? 7) What do credit unions operate under? 8) What do the members do at annual meetings? 9) What is said about credit unions in the Credit Union Act 1979?

2. Agree or disagree with the following statements.

1) People can cooperate together to put their savings into a joint fund. 2) The members of credit unions can appeal to borrow from the fund. 3) The members of credit unions make repayments at a monthly rate of interest of 15 per cent. 4) The loans are usually long-term consumer loans. 5) These loans are not for emergencies. 6) These loans compose the only credit source for many people. 7) These loans are used primarily for major concerns. 8) Credit unions generally operate under Magna Charter. 9) Credit unions do not operate under government supervision. 10) Credit unions must be uncommercial organizations. 11) Credit union is not obliged to provide a service to its members. 12) Fund is an amount of money that is collected and kept for a particular purpose. 13) A non-profitmaking organization uses the money it earns to help people. 14) Repayment is an amount of money that you pay back. 15) Tenant is someone who lives in a house, room etc. and pays rent to the person who owns it. 16) Loan is an amount of money that you borrow from a bank etc. 17) Consumer is someone who buys and uses products and services. 18) Charter is a signed statement from a' government, which allows an organization to officially exist and have special rights.  

3.      Translate the following words, phrases and statements from Russian into English.

Загальний зв’язок, обирати, засновувати, джерело, підприємство, зазвичай, хартія, нагляд, наглядовий, дозволяти, ціль, членство, орендатор, спілка, профспілка, співпрацювати, накопичення, спільний, фонд, медичний, звертатися, позичати, погашення, річний, процентна ставка, позика, короткочасний, споживчий, головним чином, домашнє господарство, непередбачений випадок, особливо, включати, забезпечувати, борг, країни, що розвиваються.

Кредитні спілки – це фінансові кооперативні організації, що об’єднують приватних осіб за якоюсь загальною ознакою (наприклад, особи найманої праці або ті, що проживають в одній місцевості). Принципи діяльності кредитних спілок такі ж, як і в акціонерних товариств, вони надають своїм членам споживчі кредити з умовою його погашення в розстрочку.

4.      Complete the following statements. Choose one topic to speak about a) credit union;

b) credit union and its loans; c) Credit Union Act 1979. Retell the text Credit union.

1) Credit union is ... 2) People with a common bond are ... 3) People can collaborate ... 4) Members can apply... 5) Members make ... 6) The loans are ... 7) These loans constitute ... 8) These loans are used ... 9) Credit unions operate ... 10) The members of credit unions elect ... II) The Credit Union Act included ...

 

6.4 CREDIT CARDS AND CARDHOLDERS

 

Credit card is a piece of plastic about 85mm by 54mm. bearing the name and computer number of the holder and the period of availability. The holder must sign it. The best known cards in the UK are the VISA card and ACCESS; the American Express and Diners' Club (introduced by the Diners' Club, Inc., in 1950) are leisure or entertainment cards as no credit is permitted. VISA is an

international credit card scheme which has worldwide representation. Major banks in a number of countries have issued cards through VISA. ACCESS is the name given to a credit card company jointly owned by three banks, namely. Lloyds, Midland and National Westminster. The American Express Company issues American Express card whose holders have no limit placed on the sum they spend, but all outstanding debts must be settled by a given date. Any creditworthy mature person can be a credit card holder. Before a card is issued, certain details are supplied and references (reference - a letter written by someone who knows you well, usually to a new employer, giving information about you) given. On approval a credit card is given to the holder and the cardholder is at the same time notified of the maximum credit available to him / her. The credit card can be used at any retail outlet displaying the credit card company symbol. It is usual for settlement or partial settlement to be made by the credit cardholder within 25 days of receipt of the statement.

credit card  availability  access  outstanding  mature  retail outlet  settlement  receipt  statement

кредитна картка придатність доступ несплачений зрілий роздрібна торгова точка розрахунок отримання звіт

 

1. Answer the questions

1) What does credit card bear? 2) What must the holder sign? 3) What credit cards are the best known cards in the UK? 4) What credit cards are leisure cards and why? 5) What is known about VISA? 6) What is known about ACCESS? 7) What is known about American Express card? 8) Who can be a credit card holder? 9) What is supplied and given before a card is issued? 10) What is the cardholder notified of? 11) Where can the credit card be used? 12) What is to be made by the cardholder within 25 days of receipt of the statement?

2. Agree or disagree with the following statements.

1) Credit card is a piece of wood. 2) Credit card bears the name of the owner. 3) Credit card bears the computer number of the possessor. 4) Credit card bears the period of serviceable life. 5) The holder must subscribe credit card. 5) Holders have limit placed on the sum they can spend. 6) All debts must be settled by a given date. 7) Any solvent person can be a credit card holder. 8) Recommendations are to be given before a card is issued. 9) The cardholder is announced of the minimum credit available to him. 10) The credit card can be used far and near. 11) Retailer is someone who sells things in a shop. 3. Translate the following words, phrases and statements from Ukrainian into English.

Доступ, дозвілля, сповіщати, доступний, роздрібна торгова точка, демонструвати, частковий, розрахунок, отримання, зрілий, придатність, розваги, дозволяти, несплачений, той, що заслуговує, кредитоздатність, звіт, пускати в обіг, постачати, рекомендація, схвалення, підписувати.

Кредитна картка – це картка, що випускається організацією та дає її власникові можливість робити покупки в кредит в тих підприємствах торгівлі, які склали з даною організацією угоду. Існують одноцільові картки, що випускаються конкретними фірмами, багатоцільові картки та банківські картки. Власник картки – це особа, якій видано кредитну картку для використання в особистих, сімейних, домашніх або корпоративних цілях.

4. Complete the following statements. Choose one topic to speak about a) credit card; b) the best known cards in the UK; c) credit cardholders. Retell the text Credit card and credit cardholders.

l) Credit card is ... 2) Credit card bears ... 3) The holder must ... 4) The best known cards in the UK are ... 5) VISA is ... 6) ACCESS is ... 7) American Express card is known for its holders have ... 8) Any creditworthy person can ... 9) Before a card is issued ... 10) The cardholder is notified of ... 11) The credit card can' be used ... 12) The credit cardholder should make ... within 25 days ...

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIT   7                                                                      BANKING

 

7.1 BANK CLASSES

 

Bank - an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates. They also have the power to create money. The two major classes of banks are commercial and central banks. Commercial banks accept savings deposits, make loans and other investments, and offer financial services that facilitate the exchange of funds among individuals and institutions. In addition to the profit derived from the difference in the interest rates, commercial banks charge fees for various services. Central banks are involved in the issue of money and maintain the country's foreign currency reserves. Central banks maintain the

accounts of other banks and supervise their activities. Central banks act as bankers to governments, as the designers of monetary and credit policies, and as lenders of last resort to commercial banks in the case of a financial crisis. Central banks also play a significant psychological role as guarantors of the monetary system. Central banks may be nationalized organizations and are subject to governn1ent control, but some of them can have independence from governmental supervision.

deal in  deposit  derive a profit   savings deposit    facilitate  funds  charge fees  issue lender of last resort    guarantor  monetary system

торгувати депозит отримувати прибуток ощадний вклад в банк на невизначений термін під проценти сприяти кошти нарахувати комісійні емісія останній кредитор в разі надзвичайної ситуації гарант грошова система

 

1. Answer the questions

1) What meant by the term "bank" is? 2) What banks do accept? 3) What banks make do? 4) What banks derive a profit do from? 5) What do power banks have? 6) What the two major classes of are banks? 7) What commercial banks accept do? 8) What do make commercial banks? 9) What commercial banks offer do? 10) What central banks are involved in? 11) What central banks do maintain? 12) What central banks supervise do? 13) What central banks do act as? 14) What role central banks do play? 15) Are subject to central banks government control or not?

2. Agree or disagree with the following statements.

1) Bank trades in money. 2) Bank gives various financial services. 3) Banks receive deposits. 4) Banks don't make loans. 5) Banks derive a profit by skiIfuIIy deceiving people. 6) Commercial banks aid the exchange of funds among individuals and institutions. 7) Central banks act as bankers to organized crime. 8) Central banks act as the designers of default. 9) Central banks act as the designers of foreign policy. 10) Central banks act as lenders of last resort to counterfeiters. 11) Central banks play an important role as guarantors of the monetary system. 12) Central banks have the right to issue money. 13) Central banks keep the country's foreign currency reserves. 14) Central banks back up the accounts of other banks. 15) Central banks oversee the activities of other banks. 16) Central banks may be private owned organizations. 17) Central banks are subject to shadow ministers. 18) Central banks are totally dependent on their bank customers.

3. Translate the following words, phrases and statements from Ukrainian into English.

Торгувати, ощадний внесок не невизначений термін під відсотки, сприяти, кошти, нараховувати комісійні, валютна політика, кредитна політика, останній кредитор в критичній ситуації, грошова система, депозит, позика, отримувати прибуток, відсоткова ставка.

1) Банк торгує грошима та їх замінниками. 2) Банк забезпечує різноманітні фінансові послуги. 3) Банк приймає депозити. 4) Банк надає позики. 5) Банки отримують прибуток з різниці в відсоткових ставках. 6) Банки можуть бути незалежними від урядового контролю.

4. Complete the following statements. Choose one topic to speak about a) bank; b) commercial bank; c) central bank. Retell the text Bank and its classes.

1) Bank deals in ... 2) Bank provides ... 3) Banks accept ... 4) Banks make ... 5) Banks derive ... 6) Banks have ... 7) The two major classes of banks are ... 8) Commercial banks accept ... 9) Commercial banks make ... 10) Commercial banks offer ... 11) Commercial banks charge ... 12) Central banks are involved in ... 13) Central banks maintain ... 14) Central banks supervise ... 15) Central banks act as ... 16) Central banks play ... 17) Central banks may be... 18) Central banks are subject to ... 19) Central banks can have ...

 

7.2 EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

 

The European Bank, with its headquarters in London, was established in May 1990. It is the first international financial institution of the post-Cold War period. Its purpose is to foster the transition towards open market oriented economies and to promote private and entrepreneurial initiative in the countries of Central and Eastern Europe. The European Bank will endeavor to help the economies of these countries integrate into the international economy, with particular concern for strengthening democratic institutions, respect for human rights and for environmentally sound policies. In fulfilling its purpose, the Bank performs a wide range of functions designed to assist countries with operations to implement structural economic reforms, including demonopolization, decentralization and privatization. The European Bank has the following departments: merchant banking (merchant bank - a bank that provides banking services for business), development banking, finance, personnel and administration, project evaluation, secretary general, chief economist, communications and press, internal audit. The Bank has 59 members: 57 countries and two institutions - the European Investment Bank (EIB) and the Economic Community (EC), known as the European Economic Community or Common Market.

foster  transition

сприяти перехід

entrepreneur  endeavor 

environmentally sound 

 

 

range  implement  demonopolization decentralization 

privatization  banking personnel administration  evaluation 

internal audit

 

1.      Answer the questions підприємець намагатися той, що має відношення до забруднення навколишнього середовища

ряд здійснювати демонополізація децентралізація приватизація банківські послуги управління кадрами оцінка внутрішня ревізія

1)      When the European Bank was established? 2) Where its headquarters is? 3) What its purpose is? 4) What the European Bank will endeavour to do? 5) What the European Bank's requirements to integrate into the international economy are? 6) What the European Bank perform in fulfilling does its purpose? 7) What departments the European Bank does have? 8) What members does the European Bank have?

2.      Agree or disagree with the following statements. 

1)      The European Bank's headquarters is in Paris. 2) The European Bank was founded in 1980. 3) The European Bank's ambition is to favour the transition to a planned economy. 4) The European Bank's aim is to promote business initiative. 5) The European Bank will help less developed countries join into the international economy. 6) Industrial nations should strengthen democratic institutions. 7) Commonwealth countries must respect human rights. 8) The countries of European Union have to conduct environmentally sound policies. 9) The European Bank brings the underdeveloped countries to ruin with privatization. 12) The European Bank assists the open market oriented economies with monopolization. 13) The European Bank lends the open market oriented economies a helping hand with centralization.

3.      Translate the following words, phrases and statements from Ukrainian into English.

Намагатися, оцінка, особливий, турбота, укріплювати, повага, ряд, здійснювати, торгівельний, проект, сприяти, приватна ініціатива, банківські послуги, економічний розвиток, штаб-квартира, засновувати, перехід, орієнтований на, підприємець, управління кадрами, внутрішня ревізія, той, що має відношення до боротьби з забрудненням навколишнього середовища.

1)      Європейський банк реконструкції та розвитку було засновано в 1990 році. 2) Його мета складається в тому, щоб сприяти переходу до ринкової економіки. 3) Банк здійснює ряд функцій. 4) Банк допомагає країнам здійснити приватизацію. 5) Банк має багато відділень. 6) Банк надає довгострокові кредити країнам, що розвиваються.

4.      Complete the following statements. Choose one topic to speak about the European Bank for Reconstruction and Development a) its establishment and its headquarters; b) its purpose; c) its functions; d) its departments. Retell the text European Bank for Reconstruction and Development. 

1) The European Bank has its headquarters in ... 2) It was established ... 3) It is the first ... 4) Its purpose is ... 5) The European Bank will endeavor ... 6) Its particular concern is ... 7) The Bank performs ... 8) These functions are designed to assist ... 9) The European Bank has ... departments and ... members.

 

 

7.3 EUROPEAN INVESTMENT BANK (EIB)

 

The EIB was formed in 1958 with its headquarters in Luxembourg. It is administered by a Board of Governors which consists of a Minister (usually the Finance Minister) of each member country. that lays down general directives on credit policy, approves the balance sheet, decides on capital increases and appoints directors and members of the management and audit committees. The Board of Directors has overall responsibility for deciding on loans and setting interest rates. The EIB makes loans for a wide range of projects. The pattern of lending depends on demand, the viability of the projects and their consistency with the European Economic Community's policies. Alm.ost all the funds necessary to finance its lending operations are raised by borrowing on capital markets, mainly through public bond issues. While its traditional product is fixed rate loans, adjustable fixed-rate and variable-rate loans are also available. Maturities range between 4 - 20 or more years with repayment of principal and interest normally in equal six-monthly installments. Depending on the borrower's preferences and the EIB' s holdings, loans are disbursed in a single currency, such as the ECU (Euro), or the borrower's own currency, or in a mix of several currencies. The European Investment Bank does not charge commitment, management or other fees.

directives       директиви increase    зростання viability            життєздатність consistency  узгодженість

                   adjustable                                                           той, що регулюється

                   variable                                                              змінний

maturities       строки платежу disburse       платити

                   charge                                                                вимагати

                   commitment fee                                                 комісія за забов’язання надати кредит

 

1. Answer the questions.

1) When the EIB was formed? 2) Where its headquarters is? 3) What it administered by is? 4) Whom the Board of Governors does consist of? 5) What the functions of the Board of Governors are? 6) What the Board of Directors have does? 7) What the EIB does make? 8) What the pattern of lending depend on does? 9) Where the EIB take its funds does? 10) What are loans available by the EIB? 11) What the EIB's maturities do range? 12) How the EIB's loans are disbursed? 13) Does the EIB any fees charge?

2. Agree or disagree with the following statements. 

1) The Board of Directors formulates general directives on credit policy. 2) The Board of Directors sanctions the balance sheet. 3) The Board of Directors decides on capital decreases. 4) The Board of Directors ousts directors. 5) The Board of Directors doesn't assume responsibility for deciding on loans. 6) The EIB makes investments for a wide range of projects. 7) The EIB' s pattern of lending depends on market. 8) Borrowing on capital markets cuts the EIB's funds. 9) The EIB's traditional product is variable-rate loans. 10) The EIB's loans are paid in a single currency. 11) The EIB charges commitment and management fees.

3. Translate the following words, phrases and statements from Ukrainian into English.

Формулювати, життєздатність, узгодженість, ринок капіталу, облігація, емісія, кредит з фіксованою процентною ставкою, той, що регулюється, змінний, терміни платежу, коливатися в межах, основна сума, на яку нараховуються відсотки, черговий платіж у разі розстрочення платежу, вподобання, внески, платити, вимагати, комісія за зобов’язання надати кредит, вказівки, балансовий звіт, зростання, процентна ставка.

1) Європейський інвестиційний банк було засновано в 1958 році. 2) Банк позичав кошти на ринку капіталу. 3) Банк субсидує багато проектів. 4) Банк не вимагав комісію за зобов’язання надати кредит. 5) Банк не вимагав комісію за зобов’язання надати менеджмент. 6) Кредит з фіксованою процентною ставкою означає позику з фіксованою ставкою відсотка, що встановлена на весь термін його дії, що надається на фіксований термін.

4. Complete the following statements. Choose one topic to speak about EIB a) its establishment; b) its Board of Governors; c) its pattern of lending; d) its funds; e) its traditional product; f) its maturities; g) its currency; h) its fees. Retell the text The EIB. 

1) The EIB was formed ... 2) Its headquarters is ... 3) The EIB is administered by... 4) The Board of Governors lays down ... 5) The EIB makes ... 6) The EIB's pattern of lending depends on ... 7) The EIB's funds are raised .o. 8) The EIB's traditional product is o.. 9) The EIB's maturities range .o. to) The EIB's loans are disbursed... 11) The EIB does not charge...

 

7.4 BANK OF ENGLAND

 

The central bank in the UK is the Bank of England. Established in 1694 by Royal Charter, it had a capital of £ 1 200 000. This charter was renewed periodically and over the course of time, the Bank of England very gradually moved from being a commercial to being a central bank. Under the 1844 Bank Charter Act the Bank of England was divided into departments - the Banking Department and the Issue Department. Both these departments had to issue a balance sheet each week and still do.  The Bank of England acquired the note issuing monopoly in England and Wales. Its present functions are (a) banker to the government; (b) bankers' bank; (c) manages the Exchange Equaisation Account [Exchange equalisation account - an account held at the Bank of England for the Treasury that contains the country's foreign currency and gold reserves. This account is used to stabilise the value of sterling against other international currencies, so that if the Bank of England considers that sterling is drifting too low, it will buy sterling with funds from the account, or if sterling is becoming expensive the Bank of England will sell sterling and receive foreign currency and replenish the account.]; (d) handles the issue of Treasury bills; (e) supervises the banking institutions in the UK; (f) maintains the sterling accounts of other central banks and international organisations; (g) lender of last resort; (h) the note issuing authority in England and Wales.

banking  issue  balance sheet  Exchange Equalisation Account    equalize  treasury bill

банківські послуги емісія балансовий звіт фонд стабілізації валюти (золоті та валютні резерви країни) зрівняти казначейський вексель

             

1. Answer the questions.

1) What bank the central bank in the UK is? 2) When it was established? 3) What it established by was? 4) What capital it did have? 5) How that charter was renewed? 6) How the Bank of England move did over the course of time? 7) How the Bank of England divided was? 8) What those departments have to did do? 9) What the Bank of England did acquire? 10) What its present functions are?

2. Agree or disagree with the following statements.

1) The Bank of England is one of the commercial banks in the UK. 2) The Bank of England is a borrowing bank from the government. 3) The Bank of England manages the gold and currency reserves of the nation. 4) The Bank of England handles the issue of long-term bills. 5) The Bank of England supervises the educational institutions in the UK. 6) The Bank of England has nothing to do with the sterling accounts of other central banks. 7) The Bank of England can scarcely be a lender of last resort. 8) The Bank of England does not participate in banknote circulation in England. 9) The Treasury is a government department that controls the money that the country collects and spends.

3. Translate the following words, phrases and statements from Russian into English.

Засновувати, банкнот, королівська хартія, керувати, казначейство, думати, оновлювати, з часом, банківські послуги, дрейфувати, рахунок стабілізації валюти, зрівняти, казначейський вексель, останній кредитор в критичній ситуації, знову наповнити. 

1) Англійський банк є центральним банком Великобританії. 2) Банк Англії є банкіром уряду. 3) Англійський банк обслуговує рахунки інших країн в фунтах стерлінгів. 4) Банк Англії виступає як останній засіб при отримані кредиту. 5) Цей банк є закладом, який може випускати банкноти англійської національної валюти. 6) Англійський банк не має права випускати банкноти, що не підкріплені дорогоцінними металами. 7) Громадськість довіряє банкнотам, що випускаються в обіг Англійським банком. 

4. Complete the following statements. Choose one topic to speak about the Bank of England a) its establishment; b) its departments; c) its functions; d) its exchange equalisation account. Retell the text Bank of England. 

1) The Bank of England is ... 2) The Bank was established in ... by... 3) The Bank had ...4) The Bank moved from ... to ... 5) The Bank was divided into ... 6) The Bank's departments had to ... 7) The Bank acquired ... 8) The Bank's present functions are ... 9) The Exchange Equalisation Account is ...

 

7.5 INTERNET BANKING

 

Internet banking is used widely by masses, and has numerous benefits to offer. Nowadays, all banks provide online banking facility to their customers as an added advantage. Gone are the days, when one had to transact with a bank which was only in his local limits. Online banking has opened the doors for all customers, to operate beyond boundaries. Nowadays, people are so busy in their work lives, that they don’t even have time to go to the bank for conducting their banking transactions. Internet banking enables people to carry out most of their banking transactions using a safe website, which is operated by their respective banks. It provides many features and functions to their customers, and enables them to view their account balance, transfer money from their account to another account (be it in their respective bank or any other bank), view their account summary.

In this procedure, many financial transactions can be carried out by simply utilizing a computer with an Internet connection. The necessary things that a person needs for using online banking are, an active bank account with balance in it for transactions, debit or a credit card number, customer’s user ID, bank account number, the Internet banking PIN number, and a PC with access to the web. People using Internet banking are certainly benefited by the online services their respective banks are providing them with. The primary reason why it is so famous and mostly used is that customers are allowed to bank at non-working hours.

Banks create their banking interfaces and websites in a viewable and user-friendly manner, which enable customers to conduct their financial transactions with ease. If they are stuck in any process while performing their online transactions, banks have another helpful facility that is «phone banking», wherein customers can call the bank’s toll-free number and get assistance in completing their transactions. Electronic bill payment, viewing and downloading financial records, and money transfers are some of the general transactions which the customers generally carry out. All online banking services, provided by some banks, are free of cost.

When a customer views the bank’s website, there are many options available, but to execute those transactions, he would obligatorily need to log into his virtual account. Without logging in, he won’t be allowed to carry out any kind of the transactions. Initially, when he opens an account with the bank, the bank gives a welcome kit which contains important documents that include the checkbook; a document with the customer’s user ID, online banking password, phone banking password, and account number is embedded. The kit also contains some other confidential data, the credit or debit card, and the card details. The website will prompt the user to enter the necessary details like the Internet banking password and account number, and then will display his account information. In this stage, he can carry out all functions that are available on the website.

With regards to the password authentication and encryption, high security is maintained, as there is a chance of hackers getting unauthorized access to the customer’s account and performing malpractices. However, banks keep their online security systems up-to-date to prevent such scenarios. Moreover, banks also suggest their customers to keep on changing passwords periodically. They also implement some security measures like using unique login IDs, transaction codes, using two passwords, security tokens which generate automatically changing passwords.

The Internet banking facilities provided by banks differ from bank to bank, and country to country. To know all online banking services and processes, one has to thoroughly refer to the guides which were made available in the welcome kit. Moreover, proper care has to be taken regarding the confidential documents as, Internet banking frauds are on an increase.

 

HISTORY OF INTERNET BANKING

 

The concept of Internet banking has been simultaneously evolving with the development of the world wide web. Programmers working on banking data bases came up with ideas for online banking transactions, some time during the 1980’s. The creative process of development of these services was probably sparked off after many companies started the concept of online shopping. The online shopping promoted the use of credit cards through Internet. Many banking organizations had already started creating data ware housing facilities to ease their working staffs. The development of these databases were widely used during the development of ATM’s.*

Sometime in 1980’s, banking and finance organizations in Europe and United States started suggestive researches and programming experiments on the concept of «home banking». Initially in the 80’s when computers and Internet were not so well developed, «home banking» basically made use of fax machines and telephones to facilitate their customers. The wide spread of Internet and programming facilities created further opportunities for development of home banking.

In 1983, the Nottingham Building Society, commonly abbreviated and refereed to as the NBS, launched the first Internet banking service in United Kingdom. This service formed the basis for most of the Internet banking facilities that followed. This facility was not very well developed and restricted the number of transactions and functions that account holders could execute. The facility introduced by Nottingham Building Society is said to have been derived from a system known as Prestel, that is deployed by the postal service department of United Kingdom.

The first online banking service in United States was introduced, in October 1994. The service was developed by Stanford Federal Credit Union, which is a financial institution. The online banking services are becoming more and more prevalent due to the well developed systems. Though there are pros and cons of electronic cash technology, it has become a revolution that is enhancing the banking sector.

authentication                                                         автентифікація

scenario                                                                  сценарій

malpractice                                                             зловживання службовим становищем

unauthorized                                                           неавторизований

to facilitate    полегшувати prevalent          поширений to enhance           підвищувати

to carry out                                                             виконувати

to be stuck in a process                                          застрягнути в процесі

to be free of cost                                                     бути безоплатним

to log into one’s account                                        увійти на свій акаунт

a welcome kit                                                          вітальний набір/комплект

account information                                                інформація про обліковий запис/рахунок

          безпека security         токени

tokens                                                                     посилатися на щось

to refer to smth шахрайство в Інтернет-банкінгу Internet banking frauds збільшуватися to be on an increase еволюціонувати з чимось to evolve with smth бути викривленим to be sparked off банківські дані banking data використання кредитної картки через the use of credit card through Internet  Інтернет

to abbreviate to smth             скоротити до чогось to be derived from smth          бути виведеним з чогось іншого

pros and cons                                                          плюси і мінуси

 

1. Complete the following sentences, using information from the text.

1.       All banks provide online banking facility to… 2. Banks also suggest their customers… 3. Internet banking enables people to carry out… 4. Many financial transactions can be carried out by … 5. The necessary things that a person needs for using online banking are… 6. When a person opens an account with the bank, the bank … 7. The concept of Internet banking has been simultaneously evolving … 8. The online shopping promoted the use… 9. When computers and Internet were not so well developed, «home banking»… 10. The first online banking service in United States … 11. The online banking services are becoming…

2.       Fill in the preposition where it’s necessary.

1.                   All banks provide online banking facility ___ their customers as an added advantage.

2.                   Nowadays, people are so busy ___ their work lives that they don’t even have time to go __ the bank.

3.                   Many financial transactions can be carried ___ by simply utilizing a computer ___ an Internet connection.

4.                   If they are stuck ___ any process while performing their online transactions, banks have another helpful facility that is «phone banking».

5.                   All online banking services, provided ___ some banks, are free ___ cost.

6.                   When a customer views ___the bank’s website, he would obligatorily need to log ___ his virtual account.

7.                   The Internet banking facilities provided ___ banks differ ____bank ___ bank, and country ___ country.

8.                   The creative process ___ development of these services were probably sparked ___ after many companies started the concept of online shopping.

9.                   The development ___ these databases were widely used _____ the development of ATM’s.

10.               __ 1983, the Nottingham Building Society, commonly abbreviated and refereed ___ as the NBS, launched the first Internet banking service in United Kingdom.

3. Give your own explanation of the following terms

1.  Checkbook

2.  Phone banking

3.  Home banking

4.  Balance

5.  Customer’s user ID

6.  Banking transaction

7.  PIN number

8.  Banking sector

4.      Match the synonyms.

1.  operate 2.  execute 3.  prompt 4.  promote 5.  restrict 6.  implement 7.  suggest

a.       keep b.      implement c.       remind d.      propose e.       confine f.        fulfill g.      manage h.      refer i.        stimulate

 

5.      Translate the following text from Ukrainian into English.

Online banking дозволяє:

•  з будь-якого комп’ютера отримати доступ до ваших банківських документів через захищене з’єднання в мережі інтернет;

•  отримувати інформацію про залишки і рух коштів на ваших рахунках в банку;

•  передавати на виконання до банку платіжні та інші доручення і контролювати процес їх виконання;

•  відкликати раніше передані доручення;

•  здійснювати обмін даними з вашою бухгалтерською системою або системою керування підприємством.

6.      Summarize the paragraphs 1- 6 of the text «Internet Banking» 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIT 8                                                                 TAXATION 

8.1 OBJECTIVES OF TAXATION

 

Tax is a compulsory levy on individuals and companies by the state to meet the expenses of the government. Taxation is imposition of compulsory levies on persons or other entities by governments. Taxes are levied in almost every country of the world, primarily to raise revenue (money that a business or organization receives over a period of time, especially from selling goods or services) for government expenditures. One useful way to view

the purpose of taxation is to distinguish between objectives of resource allocation, income redistribution. and economic stability. Economic growth or development and international competitiveness (the ability of a company or a product to compete with others) are sometimes listed as separate goals. In the absence of a strong reason for interference, such as the need to reduce pollution, the resource allocation objective is furthered if tax policy does not interfere with market-determined allocations. The redistributive objective is to lessen inequalities in the distribution of income and wealth to the extent they are considered excessive and unjust. The stabilization objective is the maintenance of high employment and price stability.

objectives of taxation  impose  compulsory  levy  entity  raise revenue expenditures  view  resource allocation  income redistribution  competitiveness  reduce  pollution  further  lessen  inequality  to the extent  excessive  unjust  stabilization  maintenance  employment

цілі оподаткування обкладати обов’язковий збір, оподатковувати юридична особа збільшити дохід витрати побачити розподіл ресурсів перерозподіл доходу конкурентоздатність знижувати забруднювати навколишнє середовище просувати зменшувати нерівність до такої міри надмірний несправедливий стабілізація підтримання зайнятість

tax evasion                                                    ухилення від сплати податків

tax avoidance                                                ухилення від оподаткування

 

1. Answer the questions.

1) What meant by the term "tax" is? 2) What is by the term "taxation" meant? 3) Where taxes are levied? 4) What taxes are levied to do? 5) What the first objective of taxation is? 6) What the is second objective of taxation? 7) What the third objective of is taxation? 8) What the fourth objective is of taxation? 9) What is the one fifth? 10) What meant is by the term "competitiveness"? 11) When the resource allocation objective furthered is? 12) What the redistributive objective to do is? 13) What the stabilization objective is?

2. Agree or disagree with the following statements. 

1) Tax is an amount of money paid by citizens to the government. 2) Taxation is the system of charging taxes. 3) Taxes are charged to increase revenue for government expenses. 4) Taxation provides resource allocation. 5) Taxation ensures income redistribution. 6) Taxation provides economic instability. 7) Taxation provides economic regression. 8) Taxation provides economic stagnation. 9) Taxation fails to provide international competitiveness. 10) Tax evasion is illegal ways of paying less tax. 11) Tax avoidance is legal ways of paying less tax.

3. Translate the statements from Ukrainian into English.

1) Кожна людина має сплачувати податки. 2) Податки існують у всіх країнах світу. 3) Оподаткування не має втручатися в ринковий розподіл ресурсів. 4) Оподаткування має зменшувати нерівність в розподілі доходу. 5) Оподаткування має підтримувати стабільність цін.

4. Complete the following statements. Choose one topic to speak about taxation a) its definition; b) its first objective; c) its second objective; d) its third objective; e) its fourth objective; f) its fifth objective. Retell the text Objectives of taxation. 

1) Tax is ... 2) Taxation is ... 3) Taxes are levied in ... 4) Taxes are levied to raise ... 5) The first objective of taxation is ... 6) The second objective of taxation is ... 7) The third objective of taxation is ... 8) The fourth objective of taxation is ... 9) The fifth objective of taxation is ... 10) Competitiveness is ... 11) The resource allocation objective is furthered if ... 12) The redistributive objective is to lessen ... 13) The stabilization objective is the maintenance of ...

  

8.2 PRINCIPLES OF TAXATION

 

The 18th-century philosopher Adam Smith attempted to systematize the rules that should govern a rational system of taxation. In his books he set down three general canons. I. The subjects of every state ought to contribute towards the support of the government in proportion to their respective abilities, that is, in proportion to the revenue which they respectively enjoy under the protection of the state.

II. The tax which each individual is bound to pay ought to be certain, and not arbitrary. The time of payment, the manner of payment, the quantity to be paid, ought all to be clear and plain to the contributor, and to every other person. III. Every tax ought to be levied at the time, or in the manner, in which it is most likely to be convenient for the contributor to pay it. Although they need to be reinterpreted from time to time, these principles, especially the first, retain remarkable relevance. From the first can be derived both of the leading views of what is fair in the distribution of tax burdens among taxpayers. These are the belief that taxes should be based on the individual's ability to pay, known as the ability-to-pay principle, and the benefit principle, the idea that there should be some equivalence between what the individual pays and the benefits he derives from governmental activities.

philosopher  systematize  rational  canons  subject  contribute  respective  ability  revenue  enjoy  certain  arbitrary  quantity  clear  plain  contributor  levy  likely  convenient  retain  relevance  derive  fair  tax burden  benefit  equivalence  tax haven exile

філософ систематизувати раціональний критерії підданий жертвувати відповідний платоспроможність дохід користуватися, володіти певний довільний кількість недвозначний простий, зрозумілий жертводавець збір, стягувати відповідний зручний  зберігати доречність витягувати справедливість податковий тягар користь рівнозначність податкова гавань вигнанець

 

1. Answer the questions.

1) Who Adam Smith was? 2) What he attempt to do did? 3) What he set down in his books did? 4) What the first was canon? 5) What the was second canon? 6) What the third canon was? 7) What the two leading principles that taxes should be based on are?

2. Agree or disagree with the following statements. 

1) Adam Smith arranged the rules of taxation. 2) Adam Smith set down five general canons. 3) The subjects of the state ought to give money, help and ideas to the government in proportion to their abilities. 4) Each individual is not obliged to pay taxes. 5) The tax ought to be loose. 6) The tax ought to be arbitrary. 7) The time of payment ought to be incomprehensible to the contributor. 8) The manner of payment ought to be ambiguous to the contributor. 9) The quantity to be paid ought to be ambulatory to the contributor. 10) Every tax ought to be inconvenient for the contributor to pay it. 11) These principles of taxation are to be reinterpreted from time to time. 12) These principles of taxation retain remarkable irrelevance. ] 3) Taxes should be based on the individual's ability to make money. 14) Taxes should be based on the benefits the individual derives from governmental activities. 15) Tax haven is a place where people go to live to avoid paying high taxes in their own country. 16) Tax exile is someone who lives abroad in order to avoid paying high taxes in their own country.

3. Translate the statements from Ukrainian into English.

1) ви маєте сплачувати податки відповідно своєї платоспроможності. 2) Ніхто не любить сплачувати податки. 3) Треба зробити так, щоб сплачувати податки було вигідно. 4) Податки мають бути резонними. 5) Податки мають бути доречними.

4. Complete the following statements. Choose one topic to speak about the canons of Adam Smith a) the first one; b) the second one; c) the third one. Retell the text Principles of taxation. 

1) Adam Smith attempted ... 2) Adam Smith set down ... 3) The subjects of every state ought to contribute ... 4) The tax ought to be ... 5) The time of payment ought to be ... 6) The manner of payment ought to be... 7) The quantity to be paid ought to be ... 8) Every tax ought to be levied... 9) The canons of Adam Smith need to be ... but they retain ... 10) The ability-to-pay principle is the belief that ... 11) The benefit principle is the idea that ...

 

 

8.3 TAX RETURN

 

Tax return is the form on which you have to give information so that your tax can be calculated. The definition of the. amount subject to taxation requires an analysis of the taxpayer's situation and of the legal provisions that apply to him. With the income tax (and also some taxes on the transfer of property, such as the inheritance tax), the taxpayer submits a tax return providing information as to his occupation, his real and personal property, his professional expenditures, and other pertinent matters; a corporation supplies, additionally, copies of the balance sheet, profit and loss statement, and minutes of the general meeting that approved these financial reports. The return, with the attached reports and statements. is meant to provide such complete information that the assessing tax official (someone who works for the government, deciding how much tax a person or company should pay) can rely on it to compute the correct tax. In examining tax returns, the basic principle is that a return is assumed to be correct until the assessing official determines otherwise. In countries such as the United States, where the self-assessment method prevails (the income taxpayer's liability is computed by himself), a minority of returns is selected for audit; most of them are only checked as to timely arrival, inclusion of all required forms and attachments, and arithmetical accuracy.

tax return   legal provision  transfer of property  inheritance tax  real property  personal property  pertinent  balance sheet  statement  minutes  attach	податкова декларація правова норма передача власності податок на спадщину нерухомість рухоме майно той, що відноситься балансовий звіт офіційний звіт протокол  прикладати
compute  assume  otherwise  liability  minority  audit  timely  arithmetical  accuracy	підраховувати припускати інакше зобов’язання меншість ревізія своєчасний арифметичний точність

 

1. Answer the questions.

1) What meant by the term "tax return" is? 2) What analysis the definition of the amount subject to taxation does require? 3) What the taxpayer does submit? 4) What a tax does return provide? 5) What a corporation does supply? 6) What is the return to provide meant? 7) What the basic principle in examining tax returns is? 8) Where does prevail the self-assessment method? 9) What the selfassessment method in countries such as the United States mean does?

2. Agree or disagree with the following statements. 

1) Tax return is a formal statement on a required legal form showing taxable income, allowable deductions and exemptions, and the computation of the tax due. 2) Taxation is required to analyse the taxpayer's situation. 3) Taxation is asked to analyse the legal norms that apply to the taxpayer. 4) The taxpayer is not bound to submit a tax return. 5) The taxpayer's return provides information of his intellectual facilities. 6) The corporation's return supplies copies of commercial secrets. 7) The assessing tax official cannot lean on a return to compute the correct tax. 8) The return is assumed to be proper until the assessing official determines otherwise. 9) Income tax is a tax on the net income of an individual or a business. 10) Inheritance tax is a tax on the money or property that you give to someone else after you die. 11) Real property is property in the form of land or houses. 12) Personal property is something that belongs to you. 13) Tax inspector is someone who works for the government, deciding how much tax a person or company should pay.

3. Translate the statements from Ukrainian into English.

1) Платник податків має надати податкову декларацію. 2) Податкова декларація забезпечує повну інформацію. 3) Збирач податків довіряє податковій декларації. 4) Податкові декларації мають підлягати аудиту. 5) Податкова декларація має подаватися вчасно.

4. Complete the following statements. Choose one topic to speak about a) what taxation requires; b) taxpayer's liability; c) corporation's liability; d) what a tax return is meant to provide; e) self-assessment method. Retell the text Tax return. 

1) Tax return is ... 2) Taxation requires ... 3) The taxpayer submits ... 4) A corporation supplies ... 5) The return is meant to provide ... 6) In examining tax returns, the basic principle is ... 7) The selfassessment method prevails in ... 8) In the United States, a minority of returns is selected for ... 9) In the United States, a majority of returns are checked as ...

 

 

8.4 CLASSES OF TAXES

 

Taxes are most commonly classified as either direct or indirect, an example of the former type being the income tax (inheritance tax, real estate tax) and of the latter the sales tax (value-added tax, excise tax). Direct taxes are taxes on persons; they are aimed at the individual's ability to pay as measured by his income or his net wealth. Income taxes are levied on total personal net income in excess of some stipulated minimum. They are also adjusted to take into account the circumstances influencing the ability to pay of the individual, such as family status, number and age of children, and financial burdens resulting from illness. Income taxes are often levied at graduated rates, that is. at rates that rise as income rises. Inheritance taxes are taxes on the money or property that you give to someone else after you die. Real estate taxes are taxes imposed upon immovable property consisting of land, any natural resources, and buildings. Indirect taxation is a system of collecting taxes by adding an amount to .the price of goods and services that people buy. Sales tax is a tax that you have to pay in addition to the cost of something you are buying. Value-added taxes are taxes on the rise in value of a product at each stage of manufacture and marketing. Sales tax levied on the manufacture, purchase, sale, or consumption of a specific commodity is known as an excise tax.

1. Answer the questions.

income tax  inheritance tax  real estate  sales tax  sales  value-added tax (VAT)  excise tax  ability to pay  net  levy  in excess of  stipulate  adjust  graduated income-tax  rate  impose  consumption

податок на прибуток податок на спадщину податок на нерухомість податок з обігу збутові операції податок на додану вартість акцизний податок платоспроможність чистий збір понад обумовлювати пристосовувати прогресивний податок на прибуток податкова ставка обкладати споживання

 

1. Answer the questions.

1) What taxes are classified as? 2) What are direct taxes mentioned in the text? 3) What mentioned indirect taxes are in the text? 4) What direct taxes aimed at are? 5) What income taxes levied are on? 6) What income taxes adjusted are to? 7) What circumstances the ability to pay of the individual influence? 8) What rates income are taxes levied at? 9) What meant by the term "inheritance tax" is? 10) What is by the term meant "real estate tax"? 11) What indirect taxation does collect taxes by? 12) What meant by the tem "sales tax" is? 13) What meant by the term "value-added tax" is? 14) What known as an excise tax is?

2. Agree or disagree with the following statements. 

1) Taxes may be either direct or indirect. 2) Inheritance taxes are indirect taxes. 3) Excise taxes are direct taxes. 4) Direct taxes are taxes on landowners. 5) Direct taxes are aimed at the individual's inability to pay. 6) The individual's ability to pay is measured by his gross profit. 7) Income taxes are imposed on total personal net income. 8) Income taxes have respect to the circumstances influencing the ability to pay of the individual. 9) Income taxes are progressive taxes. 10) Direct taxation collects taxes by adding an amount to the price of goods and services. I 1) Direct tax is a tax exacted directly from the taxpayer. 12) Indirect tax is a tax on a commodity which is connected from the manufacturer or supplier, but is ultimately paid by the consumer. 13) Income tax is a tax paid on the money that you earn. 14) Progressive tax is a tax that takes a larger percentage of money from people with higher incomes than from people with lower incomes.

3. Translate the statements from Ukrainian into English.

1) Податки бувають двох видів: прямі та непрямі. 2) Податком на прибуток оподатковується чистий особистий прибуток людини. 3) Податок на додану вартість – це система оподаткування продуктів на суму вартості, що додається на кожному етапі їх виробництва та обміну. 4) Податок з обігу – це податок з продажі товарів та послуг. 5) Податок з обігу – це непрямий податок.

4. Complete the following statements. Choose one topic to speak about a) direct taxes; b) indirect taxes; c) income taxes; d) sales taxes. Retell the text Classes of taxes. 

1) Taxes are classified as ... 2) Direct taxes include ... 3) Indirect taxes include ... 4) Direct taxes are taxes on ... 5) Direct taxes are aimed at ... 6) Income taxes are levied on ... 7) Income taxes are adjusted ... 8) Income taxes are levied at ... 9) Inheritance tax is ... 10) Real estate tax is ... 11) Indirect taxation is ... 12) Sales tax is ... 13) Value-added tax is ... 14) ... is known as an excise tax.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIT 9                                         ENTREPRENEURSHIP

 

9.1 ENTREPRENEURS AND ENTREPRENEURSHIP

 

Entrepreneur is someone who starts a company, arranges business deals, and takes risks in order to make a profit. Of course, to work for someone else is less trouble. Someone creates a job for you, gets orders, collects money from the clients and takes on the responsibility for making both ends meet. At night entrepreneur figures if he has enough money to write out your paycheque, pay the rent for the building, buy equipment and so on. On the other hand, entrepreneurship gives you an incomparable sense of personal freedom. The quality of

entrepreneurship is seen by many economists as an important explanation of differences in the rate of technical progress between countries. It has been argued that two countries undertaking similar amounts of investment leading to more or less identical rates of growth in the fixed assets will not necessarily show the same rate of technical progress. In one country entrepreneurs may be undertaking enterprise investment that has as its aim the introduction of the most advanced types of production techniques, those that will lead to a rapid growth of labour productivity. In the other, because of hesitation or ignorance, the investment program may lead only to marginal changes in productive processes; the resulting growth in labour productivity and Gross National Product will be small.

entrepreneur  entrepreneurship  rate of economic growth argue   undertake  identical   fixed assets necessarily  enterprise investment  introduction  techniques  labour productivity  hesitation  ignorance  marginal  gross national product

підприємець підприємництво темп економічного росту сперечатися (with, against – з кимось, about – про щось) брати на себе однаковий основні фонди обов’язково вкладання капіталу в підприємство вступ технології продуктивність праці коливання неосвіченість не суттєвий валовий національний продукт

 

1. Answer the questions.

1) What is by the term "entrepreneur" meant? 2) What less trouble and why is? 3) What entrepreneurship can give you? 4) What the quality of entrepreneurship is seen by many economists as? 5) Are to show two countries undertaking similar amounts of investment the same rate of technical progress? 6) In what country a rapid growth of labour productivity will take place? 7) When the resulting growth in labour productivity and Gross National Product will be small?

2. Agree or disagree with the following statements. 

1) Entrepreneur sets up a company. 2) Entrepreneur makes business deals. 3) Entrepreneur risks his neck in order to make a profit. 4) Entrepreneur introduces new types of legal techniques. 5) Entrepreneur leads his company to a slow growth of labour productivity. 6) Entrepreneur must not be doubtful or ignorant. 7) Investment is the money that people or organizations have put into a company, business, or bank in order to get a profit, or to make a business activity successful. 8) Labour productivity is the rate at which goods are produced, compared with the work, time, and money needed to produce them. 9) The GNP is the total value of all the goods and services produced in a country, including income from abroad. 10) Fixed assets may be divided into the following groups: I. Intangible; patents, goodwill, trade marks, etc. II. Tangible: land and buildings, plant and machinery, office equipment. etc. III. Investment; shares and loans to other companies.

3. Translate the following questions from Ukrainian into English and answer them.

1) Підприємництво – це форма діяльності в сфері виробництва товарів та надання послуг з метою отримання прибутків? 2) Підприємець – це людина, що займається будь-яким видом економічної діяльності, що приносить прибутки? 3) Підприємець ризикує, щоб отримати прибутки? 4) Підприємець використовує нові технології виробництва? 5) Зростання компанії залежить від ділової активності підприємця? 6) Чи важко бути підприємцем?

4. Complete the following statements. Choose one topic to speak about a) entrepreneurs;

b) entrepreneurship. Retell the text Entrepreneurs and entrepreneurship. 

1) Entrepreneur starts ... 2) Entrepreneur arranges ... 3) Entrepreneur takes risks ... 4) Entrepreneur creates ... 5) Entrepreneur gets ... 6) Entrepreneur collects ... 7) Entrepreneur takes on ...

8) Entrepreneur writes out ... 9) Entrepreneur pays ... 

10) Entrepreneur buys... 11) Entrepreneurship gives ...

 

9.2 COMPANY

 

Company is an organization that makes or sells goods or services in order to get money. Business enterprises usually take one of three forms: individual proprietorships, partnerships, or limited-liability companies. In the first form, a single person holds the entire operation as his personal property, usually managing it on a day-to-day basis. Most businesses are of this type. The second form, the partnership, may have from two to 50 or more members, as in the case of large law and accounting firms, brokerage houses (companies of brokers), and advertising agencies. This form of business is owned by the partners themselves; they may receive varied shares of the profits depending on their investment or contribution. Whenever a member leaves or a new member is added, the firm must be reconstituted as a new partnership. The third form, the limited-liability company, functions on the basis of limited liability. Limited liability is the legal position under which the loss that an owner (shareholder) of a business firm may incur is limited to the amount of capital invested by him in the business and does not extend to his personal assets. Acceptance of this principle by business enterprises and governments was a vital factor in the development of large-scale industry, because it enabled business firms to mobilize large amounts of capital from a wide variety of investors who were understandably unwilling to risk their entire personal fortunes in their investments. enterprise        підприємство

individual proprietor                                     одноосібний власник

partnership  limited liability company  brokerage house   agency  varied  contribution 

whenever constitute  incur  extend   assets 

acceptance  vital  large-scale industry  enable  entire  fortune 

 

1. Answer the questions. товариство компанія з обмеженою відповідальністю брокерська фірма агентство різноманітний пайовий внесок кожного разу, коли засновувати піддаватися сягати майно прийняття життєво важливий велика промисловість дати можливість цілий доля, багатство

1) What by the term "company" is meant? 2) What forms business enterprises usually do take? 3) What is by the term "individual proprietorship" meant? 4) What meant by the term "partnership" is?

5) What is the third form of business enterprises? 6) What meant is by the term "limited liability"?

2.      Agree or disagree with the following statements. 

1) Company makes or sells goods or services in order to get profit. 2) Proprietor is an owner of a business. 3) Individual proprietor keeps the entire operation as his rented property. 4) Individual proprietor manages his personal property on a from time to time basis. 5) Partnership is a business owned by two or more partners who share the profits and losses. 6) Partners share the profits and losses according to their investment or contribution. 7) Whenever a partner leaves or a new partner is added, the firm must be reconstituted as a new partnership. 8) Sleeping (silent) partner is someone who owns part of a business but is not actively involved in operating it. 9) Limited liability company is a company whose owners only have to pay a limited amount if the company gets into debt. 10) Limited liability is the legal position of being responsible for paying only a limited amount of debt if something bad happens to yourself or your company.

3.      Translate the following questions from Ukrainian into English and answer them.

1) Компанія продає товари та послуги, щоб заробити гроші, чи не так? 2) Компанією може володіти індивідуальний власник, чи не так? 3) Компанія може бути власністю товариства, чи не так? 4) Компанія з обмеженою відповідальністю функціонує на основі принципу обмеженої відповідальності, чи не так? 5) Обмежена відповідальність – це обмеження відшкодування збитків від господарської діяльності сумою вкладеного капіталу?

4.      Complete the following statements. Choose one topic to speak about a) individual proprietorships; b) partnerships; c) limited-liability companies. Retell the text Company. 

1) Company is ... 2) Business enterprises take ... 3) The first form of business is ... 4) The second form of business is ... 5) The third form of business is... 6) Individual proprietor holds ... 7) Individual proprietor manages ... 8) Partners receive ... 9) Whenever a partner leaves ... 10) Limited-liability company functions ... 11) Limited liability is ... 12) Limited liability enables business firms to ... 13) Investors are understandably unwilling to ...

 

9.3 RUNNING COMPANY

 

Holding company is a company that owns enough voting stock (a controlling number of the shares) in one or more other companies to exercise control over them. A company that exists exclusively for this purpose is called a pure holding company, while one that also engages in a business of its own is called a holding-operating company. A holding company typically owns a majority of stock in a subsidiary (a company that is owned or controlled by another company), but if ownership of the remaining shares is widely diffused, even minority ownership may suffice to give the holding company control. A holding company provides a means of control of several companies with a minimum amount of investment. The use of a holding company is legally simpler and less expensive than other means of gaining control of another company, such as, for example, merger (the act of joining together two or more companies to form a single enterprise). A holding company is able to reap the benefits of a subsidiary's goodwill (the success of a company, and its good relationship with its customers, calculated as part of its value when it is sold) and reputation, yet its liability is limited to the proportion of the subsidiary's stock that it owns. These and other factors make holding companies an effective form of organization on both national and international levels.

holding company  voting stock = controlling number of the shares stock  exercise  exclusively  engage  majority  subsidiary  ownership  diffuse  suffice  gain merger  reap  goodwill  liability

холдинг компанія контролюючий пакет акцій акція виконувати виключно займатися більшість підконтрольна компанія володіння поширювати хватати добувати поглинання, злиття пожинати плоди престиж фірми грошові зобов’язання

 

1. Answer the following questions.

1) What by the term "holding company" is meant? 2) What is by the term "voting stock" meant? 3) What is company called a pure holding company? 4) What company called a holding-operating company is? 5) What by the term "subsidiary" meant is? 6) What stock the holding company control over its subsidiary gives? 7) What company a means of control of several companies with a minimum amount of investment provides? 8) What the simplest way to gain control of another company is? 9) What by the term "merger" is meant? 10) What by the term is "goodwill" meant? 11) What a holding con1pany is able to get? 12) What a holding company's liability is limited to? 13) What an effective form of organization on both national and international levels is?

2. Agree or disagree with the following statements.

1) Holding company is a company that holds a control packet of shares in other companies. 2) Controlling interest is ownership of more than 50 per cent of a business. 3) If you have a controlling interest in a company, you own enough shares to be able to make decisions about what happens to the company. 4) Holding company controls the composition of the board of directors of the subsidiary company. 5) Goodwill is the favor or prestige that a business has acquired beyond the mere value of what it sells. 6) Holding company is an inefficient form of organization.

3. Translate the following questions from Russian into English and answer them.

1) Холдинг-компанія – це компанія, що володіє контрольним пакетом акцій інших компаній з метою здійснення контролю над їхніми операціями? 2) Контрольний пакет акцій – це доля акцій, що зосереджена в руках одного власника та дає можливість здійснювати фактичний контроль над акціонерним товариством? 3) Гуд-віл – це умовна вартість ділових зв’язків фірми? 4) Гуд-віл – це престиж торгівельних марок, досвід ділових зв’язків, постійна клієнтура, чи не так? 5) Від чого залежить престиж компанії? 6) Від чого може постраждати репутація компанії?

4. Complete the following statements. Choose one topic to speak about a) pure holding company; b) holding-operating company; c) the use of a holding company; d) company's goodwill; e) subsidiary company. Retell the text Holding company.  1) Holding company is ... 2) ... is called a pure holding company. 3) ... is called a holdingoperating company. 4) A holding company typically owns ... 5) Minority ownership may... if ... 6) A holding company provides ... 7) The use of a holding company is ... 8) A holding company is able to ... 9) A holding company's liability is limited to ...

 

 

9.4 BANCRUPTCY

Bankruptcy - the status of a debtor who has been declared by judicial process to be unable to pay his debts. Although sometimes used indiscriminately to mean insolvency, the   terms   have     distinct            legal significance. Insolvency, as used in most legal systems, indicates the inability to meet debts. Bankruptcy, on the other hand, results from a legal adjudication that the debtor has filed a petition or that creditors have filed a petition against him. Bankruptcy laws were enacted to provide and govern an orderly and equitable liquidation of the estates of insolvent debtors. This purpose has remained an important aim of bankruptcy legislation since the Middle Ages. Because in the past bankruptcy was coupled with the loss of civil rights and imposition of penalties upon fraudulent debtors, the designation bankrupt came to be associated with dishonesty, casting a stigma on persons who were declared bankrupts. Eventually, however, bankruptcy legislation was extended to provide procedures for the adjustment of debts so as to avoid liquidation and for the rehabilitation of insolvent debtors. Modem bankruptcy laws include the salvage of an enterprise in financial difficulties. It has become the principal focus of bankruptcy legislation with particular concern for the maintenance of employment opportunities and the protection of members of the labour force.

bankruptcy  judicial process

банкротство судова процедура

indiscriminately  insolvency  meet debts 

adjudication in bankruptcy  file a petition  enact  orderly  equitable  estate   insolvent debtor  couple  impose 

fraudulent debtors 

 

designation  stigma  eventually  adjustment  rehabilitation  salvage  labour force 

1. Answer the questions. нерозбірливо неплатоспроможність сплачувати борги оголошення банкротом за рішенням суду подати петицію  вводити закон акуратний неупереджений майно неспроможний боржник зв’язувати накладати боржники, що надають хибні відомості про свій майновий стан називання клеймо, репутація злочинця з часом залагодження відновлення в правах порятунок майна робоча сила

1) What by the term "bankruptcy" is meant? 2) What insolvency indicate does? 3) What bankruptcy does result from? 4) What bankruptcy laws enacted to do were? 5) What was bankruptcy with in the past coupled? 6) What the designation bankrupt did come to be? 7) What bankruptcy legislation extended to do was? 8) What modern bankruptcy laws do include? 9) What the particular concern of bankruptcy legislation is?

2. Agree or disagree with the following statements. 

1) Bankruptcy is the state of being unable to pay your debts. 2) Insolvency indicates the ability to meet debts. 3) Bankruptcy laws provide a disorderly liquidation of the estates of solvent debtors. 4) Bankruptcy laws govern a prejudicial1iquidation of the estates of insolvent debtors. 5) Bankruptcy was linked with the loss of civil liberties. 6) Bankruptcy inflicted punishment upon fraudulent debtors. 7) Bankruptcy legislation may include settlement of debts. 8) The designation bankrupt was connected with unfairness. 9) Bankrupt is someone who has officially said that they cannot pay their debts. 10) Bankrupt is an insolvent person who has been adjudicated bankrupt by the court.

3. Translate the following questions from Russian into English and answer them.

1) Банкрот не спроможний сплачувати свої борги? 2) Неплатоспроможність – це фінансовий стан фірми, при якому вона не може своєчасно виконувати свої фінансові зобов’язання? 3) Неплатоспроможність не обов’язково означає банкротство, чи не так? 4) Кредитор може подати заяву до суду на боржника? 5) Закони про банкротство ліквідують майно неплатоспроможних боржників? 6) Банкротство пов’язане з втратою громадських прав? 7) Як називаються боржники, що надають хибні відомості про свій майновий стан?

4. Complete the following statements. Choose one topic to speak about a) insolvency in comparison with bankruptcy; b) bankruptcy legislation in the past; c) modern bankruptcy laws. Retell the text Bankruptcy. 

1) Bankruptcy is ... 2) Insolvency indicates ... 3) Bankruptcy results from ... 4) Bankruptcy laws were enacted ... 5) Bankruptcy was coupled with ... 6) The designation bankrupt came to be ... 7) Bankruptcy legislation was extended ... 8) Modern bankruptcy laws include ... with particular concern for ...

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIT 10                                                          ACCOUNTING

 

10.1 ACCOUNTING

 

Accounting shows a financial picture of the firm. An accounting department records and measures the activity of a business. It reports on the effects of the transactions on the firm’s financial condition. Accounting records give a very important data. It is used by management, stockholders, creditors, independent analysts, banks and government.

Most businesses prepare regularly the two types of records. That is the income statement and balance sheet. These statements show how money was received and spent by the company. One major tool for the analysis of accounting records is ratio analysis. A ratio analysis is the relationship of two figures. In finance we operate with three main categories of ratios. One ratio deals with profitability, for example, the Return on Investment Ratio. It is used as a measure of a firm’s operating efficiency.

The second set of ratios deals with assets and liabilities. It helps a company to evaluate its current financial position. The third set of ratios deals with the overall financial structure of the company. It analyses the value of the ownership of the firm.

1. Give Ukrainian equivalents to the following:

a financial picture of the firm, an accounting department, a transaction, important data, stockholders, income statement, balance sheet, a major tool, ratio analysis, to deal with, profitability, assets and liabilities, current financial position.

2. Agree or disagree with the statements:

1.  At the end of the fiscal year a business must check out the assets and liabilities.

2.  It There is no difference between gross salary and net salary.

3.  An employer should hire an experienced accountant for preparing a financial statement.

4.  The accounting department provided data for the management.

5.  The board of directors never checks out assets and liabilities an net worth.

6.  Governmental corporations can not issue stock certificates.

 

ACCOUNTING AND FINANCIAL STATEMENTS

 

Accounting is the systematic development and analysis of information about the economic affairs of an organization. This information may be used in a number of ways: by the organization's managers to help them plan and control the organization's operations; by owners and legislative bodies to help them appraise the organization's performance and make decisions as to its future; by owners, lenders, suppliers, employees, and others to help them decide how much time or money to devote to the organization; by governmental bodies to determine how much tax the organization must pay; and by customers to determine the price to be paid. 

Accounting provides information for all these purposes through the maintenance of files of data, analysis and interpretation of these data, and the preparation of various kinds of reports. These reports are called financial statements. Three financial statements will be discussed: the balance sheet, the income statement, and the statement of cash flows.

Accountant is a professionally qualified person who is able to record, keep, check, and prepare financial statements.

accounting  legislative body appraise  performance  devote  data  financial statement  balance sheet  income statement  cash flow statement  financial situation

бухгалтерська справа законодавчий орган оцінювати показники роботи приділяти данні фінансовий звіт балансовий звіт звіт про прибутки звіт оборотних коштів фінансовий стан

 

1. Answer the questions.

1) What by the term "accounting" is meant? 2) What people with accounting and why deal? 3) What does accounting its information through provide? 4) What are three financial statements mentioned in the text? 5) What by the term "accountant" is meant?

2. Agree or disagree with the following statements. 

1) Accounting is the systematic analysis of illegal ways of paying less tax. 2) The organization's managers to plan and control the organization' s operations use intercom. 3) Owners to appraise the organization' s performance use illegal tapping. 4) Lenders to decide how much time or money to devote to the organization use the newspapers that print shocking stories about people's personal lives. 5) Governmental bodies to determine how much tax the organization must pay use tax legislation. 6) Customers to determine the price to be paid use their common sense. 7) Accounting provides its information through Internet. 8) Accounting provides its information through the preparation of various kinds of statements. 9) Balance sheet is a statement of how much money a business has earned and how much money it has paid for goods and services. 10) Cash flow is the movement of money coming into a business as income and going out as wages, materials etc. 11) Income is a gain or recurrent benefit usually measured in money that derives from capital or labour. 12) It's only reasonable that people on a high income should pay more tax. 13) Accountant is a professionally qualified person who is able to find legal ways of paying less tax. 14) Accountant is someone who does his best to conceal unlawful income.

3. Translate the following questions from Ukrainian into English and answer them.

1) Бухгалтерська справа – це систематичний аналіз інформації про економічний стан організації? 2) Фінансовий звіт – це звіт про фінансовий стан організації? 3) Документами фінансового звіту є: балансовий звіт, звіт про прибутки та баланс оборотних коштів, чи не так? 4) Балансовий звіт – це доповідь про фінансовий звіт організації на певну дату, чи не так? 5) Баланс оборотних коштів – це доповідь про зміни в фінансовому стані організації?

4. Complete the following statements. Choose one topic to speak about a) what people use accounting and why; b) three financial statements. Retell the text Accounting and its reports. 

1) Accounting is ... 2) Accounting is used by managers to ... 3) Accounting is used by legislative bodies to ... 4) Accounting is used by lenders and employees to ... 5) Accounting is used by governmental bodies to ... 6) Accounting is used by customers to ... 7) Accounting provides ... 8) Three financial statements are ...

 

10.2 BALANCE SHEET

 

A balance sheet describes the resources that are under a company's control on a specified date and indicates where these resources have come from. Any balance sheet consists of three major sections: (1) the assets: material values and money resources owned by the company; (2) the liabilities: the funds that have been provided by outside lenders and other creditors in exchange for the company's promise to make payments or to provide services in the future; and (3) the owners' equity: the funds that have been provided by the company's owners or on their behalf. The list of assets shows the forms in which the company's resources are kept; the lists of liabilities and the owners' equity indicate where these same resources have come from. The balance sheet, in other words, shows the company's resources from two points of view, and the following relationship must always exist: total assets are total liabilities plus total owners' equity. This same identity is also expressed in another way: total assets minus total liabilities equals total owners' equity. In this form, the equation emphasizes that the owners' equity in the company is always equal to the net assets (assets minus liabilities). Any increase in one will inevitably be accompanied by an increase in the other, and the only way to increase the owners' equity is to increase the net assets.

balance sheet  assets  liabilities  in exchange for  equity  on behalf of  identity equation  inevitably  accompany  current assets fixed assets  intangible assets  real estate  trademark  goodwill

балансовий звіт активи зобов’язання в обмін на власні кошти від імені тотожність рівняння неминуче супроводжувати оборотний капітал основний капітал нематеріальні активи нерухомість торгівельна марка репутація компанії

 

1. Answer the following questions.

1) What a balance sheet describe does? 2) What a balance sheet does indicate? 3) What sections any balance sheet does consist of? 4) What by the term "assets" is meant? 5) What is by the term "liabilities" meant? 6) What funds the owners' equity include does? 7) What the list of assets does show? 8) What the lists of liabilities and the owners' equity do indicate? 9) What equation the balance sheet must show? 10) What this equation does emphasize? 11) What the only way to increase the owners' equity is?

2. Translate the following questions from Russian into English and answer them.

1) Як називається документ фінансового обліку, який в грошовому еквіваленті дає уявлення про стан справ фірми на певну дату? 2) Як називається частина бухгалтерського балансу, що відображає на певну дату всі матеріальні цінності та грошові кошти, які належать даному підприємству? 3) Активи компанії – це оборотний капітал компанії, основний капітал компанії та нематеріальні активи компанії? 4) Оборотний капітал компанії – це готівкові кошти та сировина, чи не так? 5) Основний капітал компанії – це нерухомість, машини та обладнання, чи не так? 6) Нематеріальні активи компанії – це патенти, репутація та торгівельна марка, чи не так?

3. Analyse the table "Balance Sheet" and retell the text of the same name.

Assets  Current assets  Cash                                      $100  Marketable securities               50  Accounts receivable               150  Inventories                             180  Total current assets              $480    Long-term investments           70  Plant and equipment  Original cost                        $300  Less: accumulated         110 $190  depreciation    Total assets $740

Liabilities and owners' equity Current liabilities Wages payable                          $20 Accounts payable                      160  Total current liabilities            $180    Deferred taxes                             10  Long-term bonds payable           70  Total liabilities                        $260  Owners' equity  Common stock                        $250 Retained earnings                     230   Total owners' equity                $480  Total liabilities and                  $740  owners' equity

 

 

10.3 INCOME STATEMENT

 

The company uses its assets to produce goods and services. The company's success depends on whether it is wise or lucky in the assets it chooses to hold and in the ways it uses these assets to produce goods and services. The company's success is measured by the amount of profit it earns. Net income is the accountant's term for the amount of profit that is reported for a particular time period. The company's income statement for a period of time shows how the net income for that period was derived. The first line in the company's income statement shows the company's net sales revenues for the period: the assets obtained from customers in exchange for the goods and services. The second line summarizes the company's revenues from other sources. The income statement next shows the expenses of the period: the assets that were consumed while the revenues were being created. The expenses are usually broken down into several categories (cost of merchandise sold, salaries of employees, depreciation, and etc.) indicating what the asset were used for. The income statement shows only a single number, the net gain on the sale. If net income is negative, it is referred to as a net loss.

income statement  assets  net income  sales revenue  obtain  consume  cost of merchandise  depreciation  net gain / income  net loss  interest revenues  expenses

звіт про прибутки активи чистий прибуток прибуток з продажі отримувати витрачати вартість реалізованих товарів амортизація чистий прибуток чистий збиток прибутки від процентів витрати

interest expense                                                      витрати на виплату процентів

 

1. Answer the questions.

1) What the company's income statement does show? 2) What the first line in the company's income statement show does? 3) What the second line in the does company's income statement summarizes? 4) What does expenses the income statement show? 5) What does number the income statement show? 6) What is to as a net loss referred?

2. Translate the following questions from Russian into English and answer them.

1) Чистий прибуток – це прибуток після виплати всіх податків. 2) Чистий збиток – це коли витрати перевищують прибутки. 3) Що включає в себе поняття «вартість»? 4) Що включає в себе поняття «витрати»? 5) Заробітна платня найманих працівників відображається в звіті про прибутки? 6) Амортизація – це поступове зниження цінності основних фондів внаслідок їхньої зношуваності? 7) Амортизація – це поступове перенесення вартості основних фондів на продукцію, що виробляється з метою накопичення коштів для їхнього оновлення?

3. Complete the statements. Choose one topic to speak about a) the company's success;

b) the company's income statement. 

1) The company uses ... 2) The company's success depends on ... 3) The company's success is measured by... 4) Net income is ... 5) The company's income statement shows ... 6) The first line in the company's income statement shows ... 7) The second line in the company's income statement summarizes ... 8) The income, statement next shows ... 9) The expenses are broken down into ... and indicate ... 10) The income statement shows only...

4. Analyse the table "Income Statement" and retell the text of the same name. 

Net sales revenues                                                                        $800

Interest and other revenues                                                              14 

Total revenues                                                                              $814

Expenses                                                                                      

                                                                                                      

Cost of merchandise sold                                                              $492

Salaries of employees                                                                     116

Depreciation                                                                                    30

Interest expense                                                                                 4

Other expenses                                                                     125     767

 

Net income                                                                                     $47 

 

 

 

 

 

 

UNIT 11                                                      ADVERTISING

 

11.1 ADVERTISING AND ITS HISTORY

 

To advertise means to tell people publicly about a product or service in order to persuade them to buy it. Advertising - the techniques and practices used to bring products, services or opinions to public notice for the purpose of persuading the public to respond in a certain way toward what is advertised. Most advertising involves promoting a good that is for sale, but similar methods are used to encourage people to drive safely, to support various charities, or to vote for political candidates. In many countries advertising is the most important source of income for the media through which it is conducted. The media are all the organizations,

such as television, radio, and the newspapers, that provide information for the public. In the ancient and medieval world such advertising as existed was conducted by word of mouth. The first step toward modem advertising came with the development of printing in the 15th and 16th centuries. In the 17th century weekly newspapers in London began to carry advertisements, and by the 18th century such advertising was flourishing. The great expansion of business in the 19th century was accompanied by the growth of an advertising industry; it was that century, primarily in the United States, that saw the establishment of advertising agencies. Advertising agency is a company that designs and makes advertisements for other companies. By the I 920s advertising agencies could plan and execute complete advertising campaigns.

techniques  persuade  respond  charities  media  by word of mouth  flourish  primarily  execute

технічні прийоми переконати реагувати благодійні справи засоби масової інформації усно процвітати головним чином здійснювати

 

1. Answer the questions.

1) What is by the term "advertising" meant? 2) What most advertising involve does? 3) Where advertising is used? 4) What the most important source of income for the media is? 5) How was advertising in the ancient and medieval world conducted? 6) What the first step toward modern advertising was? 7) Who to carry advertisements in the 17th century in London began? 8) What was accompanied the great expansion of business in the 19th century by? 9) What century the saw establishment of advertising agencies?

2. Agree or disagree with the following statements. 

1) To advertise means to make an announcement, for example in a newspaper or on a poster, that a job is available. 2) Advertisement is a picture, set of words, a film etc. that is used to advertise a product or service. 3) Advertising is used to bring its preconceived opinions to public notice. 4) Advertising promotes unsaleable goods for sale. 5) Advertising encourages people to make traffic violations. 6) Advertising discourage people to back up various charities. 7) Advertising has the purpose of persuading the public that charity begins at home. 8) Advertising encourages people to vote for political candidates holding extreme views in politics. 9) Advertising encourages people to hold a candle to the devil. 10) Advertising is something that gives people what they want knowing it is not good for them. 11) Advertising is the most important source of income for the gutter press. 12) Advertising tuckers' any man of sense out. 13) Advertising makes anyone extremely angry or annoyed. 3. Translate the following questions from Ukrainian into English and answer them.

1) Реклама використовується для того, щоб звернути увагу публіки до певних товарів? 2) Реклама переконує нас обережно керувати автомобілем? 3) Реклама підтримує благодійні справи? 4) Реклама закликає нас голосувати за певних кандидатів? 5) Реклама процівітає?

4. Complete the following statements. Choose one topic to speak about advertising a) its definition; b) its usage; c) its mutual relations with the media; d) its existence far back in the past; e) its agencies. Retell the text Advertising and its history. 

1) To advertise means ... 2) Advertising is ... 3) n. is the action of calling something to the attention of the public especial1y by paid announcements. 4) Most advertising involves .n 5) Advertising encourages n. 6) Advertising supports ... 7) Advertising helps people to vote ... 8) The most important source of income for the media is ... 9) Advertising is conducted through ... 10) Advertising was conducted by... in the ancient and medieval world. II) Modem advertising came with ... 12) Weekly news- papers in London began ... 13) ... was accompanied by... 14) The United States saw... 15) Advertising agencies could ...

 

11.2 ADVERTISING AND MEDIA

 

There are some principal media for advertising. 

Newspapers can offer advertisers large circulations (circulation - the average number of copies of a newspaper or magazine that are usually sold each day, week, month etc.) and the opportunity to alter their advertisements frequently and regularly. 

Magazines may be of general interest or they may be aimed at specific audiences (such as people interested in computers or literature) and offer the manufacturers of products of particular interest to such people the chance to make contact with their most likely customers. The most pervasive (existing or spreading everywhere) media are television and radio. Advertisers can buy short “spots" of time to promote their products or services. Advertising spots are broadcast between or during regular programs. For advertisers the most important facts about a given television or radio program are the size and composition of its audience. The size of the audience determines the amount of money the broadcaster can charge an advertiser, and the composition of the audience determines the advertiser's choice as to when a certain message, directed at a certain segment of the public, should be run.

The other advertising media include direct mail, outdoor billboards, posters, and etc. Advertising is on some occasions too intrusive (affecting someone's private life or interrupting them in an unwanted and annoying way).

medium (pi -s, -dia) the media

засіб засоби масової інформації

circulation  likely  pervasive  spot  composition  charge segment  direct  billboards  poster 

intrusive 

 

1. Answer the questions.  тираж ймовірний той, що потрапляє всюди місце склад вимагати сектор направити рекламні щити плакат нав’язливий

1) What newspapers can offer advertisers? 2) What magazines may be aimed at? 3) What magazines may offer the manufacturers? 4) What the most pervasive media are? 5) What and why can advertisers buy? 6) When advertising spots are broadcasted? 7) What facts the most important for advertisers are? 8) What the size of the audience does determine? 9) What the composition of the audience determine does? 10) What do the other advertising media include? 11) Do you advertising too intrusive find?

2. Agree or disagree with the following statements. 

1) Newspapers can offer advertisers small circulations. 2) Newspapers can offer advertisers the opportunity to buy printing machines. 3) Magazines may help the manufacturers of products to foist their substandard goods upon their customers. 4) The most pervasive media are old wives' tales. 5) Advertisers can buy television and radio to promote their products or services. 6) The term "direct mail" means advertisements that are sent by post to many people. 7) Billboard is a large sign used for advertising. 8) Poster is a large printed notice, picture, or photograph, used to advertise something or as a decoration. 9) Audience is a group of people who watch and listen to someone speaking or performing in public. 10) Audience is the number or kind of people who regularly watch or listen to a particular programme. 11) Target audience is the kind of people that a programme, advertisement etc.

is supposed to attract.

3. Translate the following questions from Ukrainian into English and answer them.

1) Чому вигідно розміщувати рекламу в газетах? 2) Журнали пропонують виробникам встановити з потенційними покупцями їхньої продукції? 3) Телебачення та радіо проникають всюди? 4) Чи можна назвати рекламу нав’язливою? 5) Чи всім реклама є корисною?

4. Complete the following statements. Choose one topic to speak about a) advertising in newspapers; b) advertising in magazines; c) advertising by television and radio d) the other advertising media. Retell the text “Advertising and its media”. 

1) Newspapers can offer ... 2) Magazines may be ... 3) Magazines may offer ... 4) The most pervasive media are ... 5) Advertisers can buy ... 6) Advertising spots are broadcast ... 7) For advertisers ... are ... 8) The size of the audience determines ... 9) The composition of the audience determines ... 10) The other advertising media include ... 11) Advertising on some occasions affects ... 12) ... is the kind of people that an advertisement is expected to attract. 13) ... is the number or kind of people who at regular times watch or listen to a peculiar programme. 14) ... is a large photograph used to advertise  something. 15) ... is a large signboard used for advertising.

 

 

 

11.3 ADVERTISING AND ITS EFFECTIVENESS

 

Advertising and its effectiveness. There is no serious disagreement over the power of advertising to inform consumers of what products are available (can easily be bought or found). In a free-market economy effective advertising is extremely important and necessary to a company's survival, for unless consumers know about a company's product they are unlikely to buy it. For an advertisement to be effective its production and placement must be based on a knowledge of the public and a skilled use of the media. A career in advertising is a difficult one. Good advertisers are in great demand. Advertising agencies serve to organize complex advertising campaigns. The effectiveness of advertising campaigns is based on research into consumer behaviour and demographic analysis of the market area. [Demography is the study of human populations and the ways in which they change.] Advertisers combine creativity in the production of the advertising messages with canny scheduling and placement, so that the messages are seen by, and will have an effect on, the people advertisers most want to address. Given a fixed budget. the advertiser faces a basic choice: he can have his message seen or heard by many people fewer times, or by fewer people many times.

power  unless  unlikely  advertisement  placement  skilled  research  creativity  canny  schedule  thing of naught

сила, здатність поки не малоймовірно рекламне оголошення розміщення вмілий дослідження творчість хитрий планувати непотрібна річ

 

1. Answer the questions.

1) Does advertising gain its point or not? 2) Why effective advertising extremely important and necessary to a company's survival is? 3) What must for an advertisement to be effective be done? 4) A career in advertising is a difficult one, isn't it? 5) Good advertisers are in great demand, aren't they? 6) What do advertising agencies to do serve? 7) What the effectiveness of advertising campaigns is based on? 8) What and why do advertisers combine? 9) What budget the advertiser is given? 10) What the advertiser does face?

2. Agree or disagree with the following statements. 

1) There is no dispute over the power of advertising to inform consumers of what products are available. 2) Free market is a market in which prices are not controlled or limited in any way. 3) Effective advertising is essential to a company's survival. 4) Consumer is someone who buys and uses products and services. 5) As soon as consumers know about a company's product they are likely to buy it. 6) A career in advertising is an easy one. 7) Good advertisers are in good demand. 8) Advertising agencies serve to organize whispering campaigns. 9) Whispering campaign is an attack on someone that is made by privately spreading criticism about them. 10) The effectiveness of advertising campaigns is based on research into consumer private life. 11) Advertisers have to be clever, careful, and not easily deceived, especially in business or politics. 12) Advertisers are given a permanent budget. 13) Advertisers play the fool with consumers.

3.      Translate the following words and phrases from Ukrainian into English.

Слугувати, попит, рекламне агентство, розповсюджувати хибні чутки про свого супротивника, в приватному порядку, розповсюджувати, наукове дослідження, приватне життя, обманювати, перманентний, клеїти дурня, рекламувати, інформувати, споживач, той, що є в розпорядженні, вільний ринок, ціна, контролювати, обмежувати, ефективний, суттєвий.

4.      Translate the following questions from Ukrainian into English and answer them.

1) Реклама створює попит на товари та послуги? 2) Ви любите рекламу? 3) Що таке «гарна реклама»? 4) Що таке «погана реклама»? 5) Ви купите товар, якщо у нього погана реклама? 6) Чи може гарна реклама переконати покупця придбати той товар, що йому не потрібен?

5. Complete the following statements. Choose one topic to speak about a) effective advertising; b) advertisers; c) advertising agencies and campaigns. Retell the text “Advertising and its effectiveness”. 

1) Effective advertising is ... 2) Unless consumers know... 3) For an advertisement to be effective ... 4) A career in advertising is ... 5) Good advertisers are ... 6) Advertising agencies serve ... 7) The effectiveness of advertising campaigns is based on ... 8) Advertisers combine ... so that ... 9) Advertisers are given ... 10) Advertisers face ...

 

11.4 ADVERTISING, ITS COST AND ITS INFLUENCE

 

In criticism of advertising it has been argued that the consumer must pay for the cost of advertising in the form of higher prices for goods; against this point it is argued that advertising enables goods to be mass marketed, thereby bringing prices down. 

It has been argued that the cost of major advertising campaigns is such that few firms can afford (to have enough money to buy or pay for something) them, thus helping these firms to dominate (to have power and control over) the market; on the other hand, whereas smaller firms may not be able to compete (to try to be more successful) with larger ones at a national     level,   at         the       local    level advertising enables them to hold their own. Finally, it has been argued that advertisers exercise an undue (more than is reasonable. suitable. or necessary) influence over the regular contents of the media they employ - the editorial stance (an opinion that is stated publicly) of a newspaper or the subject (the thing one is talking about or considering in a conversation, discussion, book, film etc.) of a television show. In response it has been pointed out that such influence is counteracted, at least in the case of financially strong - media firms, by the advertiser's reliance on the media to convey his messages; any compromise (an agreement between two contracting parties that is achieved by both of them accepting less than they wanted at first) of the integrity of a media firm might result in a smaller audience (the persons reached by a publication, radio, TV, etc.) for his advertising. market  збувати thereby          таким чином

whereas  hold one's own  exercise  undue  editorial stance  counteract  reliance  convey   contracting parties integrity  break  preserve one's existence  go without   forceless

тоді як зберігати свої позиції використовувати надмірний редакторська позиція нейтралізувати залежність повідомляти сторони, що домовляються недоторканість переривати вижити  обійтися без безсилий

1. Answer the questions. 

1) What the first point at issue in criticism of advertising is? 2) What is the second matter of dispute in criticism of advertising? 3) What the third subject of controversy in is criticism of advertising?

2. Agree or disagree with the following statements. 

1) The advertiser must pay for the cost of advertising. 2) Advertising enables goods to be mass marketed. 3) Advertising brings prices up. 4) The cost of major advertising campaigns is such that few firms can have enough money to pay for them. 5) Advertising helps only very large companies to have power and control over the market. 6) Smaller firms are not successful in comparison with larger ones at a national level. 7) Advertising enables smaller firms to flourish at the local level. 8) Advertisers exercise an unreasonable influence over the editorial stance of a newspaper. 9) Advertisers exercise an excessive influence over the subject of a television show. 10) The advertiser's influence is neutralized by the advertiser's reliance on the media to convey his messages. 11) The media are completely subject to the advertiser's ill will.

3. Translate the following words and phrases from Russian into English.

Рекламодавець, небагато, ринок, в порівнянні з, вдалий, на національному рівні, процвітати, поширений в окремих місцях, непомірний, вплив, нейтралізувати, повідомлення, цілком, підвладний, сплачувати, вартість, масовий, спричиняти, рекламна кампанія, злий намір. 4. Translate the following questions from Ukrainian into English and answer them.

1) Споживач має платити за рекламу? 2) Вам подобається коли фільм переривається рекламою? 3) Чи зможе телебачення вижити без реклами? 4) Засоби масової інформації безсилі перед злою волею рекламодавця?

5. Complete the following statements. Choose one topic to speak about advertising a) its cost; b) its influence. Retell the text Advertising and its power. 

1) The consumer must pay... 2) Advertising enables ... 3) Few firms can afford ... 4) Advertising helps large companies to dominate ... 5) Small firms can't compete ... 6) Advertising enables small firms ... 7) Advertisers exercise ... 8) The advertiser 1 s influence is counteracted by ... 9) Any compromise ... might ... 10) ... an agreement between two parties achieved by both of them accepting less than they wanted at first.

 

 

 

UNIT 12                                                         INSURANCE

 

1. Restore the word order in the following statements. 

1) To yourself against something bad happening to insure means to buy insurance to protect you. 2) The insurance insurer is a person who provides. 3) The who is insured insured is a person. 4) Insurance an insurance company and the is a contract in writing between insured.

 

12.1 INSURANCE, THE INSURER AND THE INSURED

 

To insure means to buy insurance to protect yourself against something bad happening to you, your family or your possessions. The insurer is a person or company that provides insurance. The insured is the person or people who are insured. Insurance is a contract in writing between an insurance company and the insured, whereby the insurance company will pay the insured a stated sum of money on the happening of a stated event. [Frequently the word insurance and 'assurance' are used in the same way.] In return for a specified consideration, the insurer undertakes to pay the insured some specified amount in the event that the insured suffers loss through the occurrence of a contingent event covered by the insurance contract (insurance policy). By pooling the financial contributions of a large number of policyholders, the insurer is usually able to absorb losses incurred over any given period much more easily than would the uninsured individual. While the destruction of an automobile in a traffic accident imposes a heavy financial loss on an individual, for example, one such loss is of relatively small consequence to an insurer who is collecting sufficient premiums (insurance premium is the money that you pay regularly to an insurance company) on a large number of automobiles.

insurance  the insurer  the insured  insure  consideration  suffer losses  occurence incur contingent  insurance policy  absorb  insurance premium

страхування страховик страхувальник страхувати компенсація зазнавати збитків подія накликати на себе непередбачений страховий поліс амортизувати страховий внесок

 

2. Agree or disagree with the following statements. 

1) Insurance is a contract for reducing losses from accident incurred by an individual party through a distribution of the risk of such losses among a number of parties. 2) Insurance is an arrangement with a company in which you pay them money each year and they pay the costs if anything bad happens to you, such as an illness or an accident. 3) To insure means to sell insurance to protect yourself against something bad happening to you. 4) The insurer is a person who plays a confidence trick on you in order to get your money. 5) The insurer is someone who deceives people to gain money. 6) The insured is a victim of insurance fraud. 7) The insurer takes responsibility for paying the insured some specified amount when the insured incurs Josses. 8) The insurer is able to make up losses much more easily than would the uninsured individual. 9) To incur means to put yourself in an unpleasant situation by your own actions.

3.      Translate the following words and phrases from Russian into English.

За допомогою чого, встановлений, нещасний випадок, в обмін, точно визначати, брати на себе зобов’язання, у випадку, охоплювати, об’єднувати в загальний фонд, руйнування, накладати, відносно, наслідок, достатній, договір страхування, зменшувати, сторона в договорі, розподіл, згода, траплятися, зловживання довірою, обманювати, заробити, жертва, шахрайство при страхуванні, відповідальність, зазнавати збитків, відшкодувати збитки, неприємна ситуація, страхування, страховик, страхувальник, страхувати, витрати, компенсація, подія, накликати на себе, непередбачений, страховий поліс, внесок, амортизувати, страховий внесок.

4.      Complete the following statements. Choose one topic to speak about a) insurance contract;

b) the insurer; c) the insured. Retell the text Insurance, the insurer and the insured.  1) ... means to buy insurance to protect yourself against something bad happening to you. 2) ...

is a person or company that provides insurance. 3) ... is the person or people who are insured. 4) ... is a contract in writing between an insurance company and the insured. 5) ... will pay the insured a stated sum of money on the happening of a stated event. 6) The insurer undertakes to pay ... in return for ... 7) The insurer is able ... by pooling ... 8) ... is the money that you pay regularly to an insurance company.

1. Restore the word order in the following statements. 

1) The and homogeneous enough to estimate the objects to be insured must be numerous enough normal frequency of common events. 2) The be subject to simultaneous insured objects must not destruction. 3) The be beyond the control of possible loss must the insured. 4) There to determine whether a must be some way loss has occurred and how great that loss is.

 

12.2 THE INSURER AND AN INSURABLE RISK

 

Insurance relies heavily on the "law of large numbers." In large homogeneous groups of population it is possible to estimate the normal frequency of common events such as deaths and accidents. Losses can be predicted with reasonable accuracy, and this accuracy increases as the size of the group expands. From a theoretical standpoint, it is possible to eliminate all pure risk if an infinitely large group is selected. 

From the standpoint of the insurer, an insurable risk must meet the following requirements: 

1.                   The objects to be insured must be numerous enough and homogeneous enough to allow a reasonably close calculation of the probable frequency and severity of losses. 

2.                   The insured objects must not be subject to simultaneous destruction. For example, if all the buildings insured by one insurer are in an area subject to flood, and a flood occurs, the loss to this insurer may be catastrophic. 

3.                   The possible loss must be accidental in nature, and beyond the control of the insured. If the insured could cause the loss, the element of randomness and predictability would be destroyed. 

4.                   There must be some way to determine whether a loss has occurred and how great that loss is. This is why insurance contracts specify very definitely what events must take place, what constitutes loss, and how it is to be measured.

groups of population             прошарки суспільства reasonable    резонний, розумний

expand           розширятися eliminate          виключити infinitely       безкінечно

insurable risk             ризик, що страхується insurable      той, що може бути предметом страхування numerous        багаточисельний homogeneous        однорідний severity           жорстокість severe    великі збитки

occur                                                           траплятися

catastrophic  катастрофічний accidental     випадковий randomness  випадковість predictable  передбачуваний specify            точно визначити

constitute                                                     складати

 

2. Agree or disagree with the following statements. 

1) The objects to be insured must be small in numbers and heterogeneous to estimate the probable frequency and severity of losses. 2) The insured objects must be subject to simultaneous destruction. 3) The possible loss must be non-random in nature. 4) The possible loss must be within the control of the insured. 5) If the insured could cause the loss, the element of randomness and predictability would be completely useless. 6) The insured must be morally, legally, or officially allowed to cause the loss. 7) If the insured causes the loss, he has to repair a damage on his own account. 8) Insurance contracts state in an exact and detailed way what events must pass, what forms loss, and how it is to be estimated.

3.      Translate the following words and phrases from Russian into English.

Прошарки суспільства, підтверджений, одночасний, руйнування, повінь, траплятися, випадковий, поза, викликати, випадковість, передбачуваний, визначати, оцінити, передбачити, резонний, розширятися, виключити, безкінечний, страховий ризик, точка зору, вимога, багаточисельний, однорідний, розумно, частота, великі збитки, точно визначати, складати, вимірювати.

4.      Complete the following statements. Choose one topic to speak about a) the "law of large numbers"; b) the first requirement an insurable risk must meet; c) the second requirement an insurable risk must meet; d) the third requirement an insurable risk must meet; e) the fourth requirement an insurable risk must meet. Retell the text The insurer and an insurable risk. 

1) Insurance relies ... 2) It is possible to estimate ... 3) Losses can be ... 4) Reasonable accuracy increases ... 5) It is possible to eliminate ... 6) The objects to be insured must be ... to allow ... 7) The insured objects must not be ... 8) The possible loss must be ... 9) The element of randomness and predictability would be ... if ... 10) There must be some way... 11) Insurance contracts specify very definitely...

 

 

1. Restore the word order in the following statements. 

1) Insurable property resulting from risks include losses to fire. 2) Insurable health risks include losses of life or. 3) Insurable include legal liability for risks damage or injury. 4) Uninsurable from price changes in the risks include losses resulting market. 5) Political by private parties risks are not insurable. 6) Political may be insurable by risks governmental institutions.

 

12.3 THE INSURED AND AN INSURABLE RISK

 

From the viewpoint of the insured person, an insurable risk is one for which the probability of loss is not so high as to require excessive premiums (premium - the cost of insurance, especially the amount to pay each year). What is "excessive" depends on individual circumstances, including the insured's attitude toward risk. What is "excessive" stands upon insurance adjusters who are employed by an insurance company to decide how much to pay people who have had an accident. At the same time, the potential loss must be severe enough to cause financial hardship if it is not insured against. Insurable risks include losses to property resulting from fire, explosion, windstorm, burglary, etc.; losses of life or health; and the legal liability arising out of use of automobiles, occupancy of buildings, employment, or manufacture. 

Uninsurable risks include losses resulting from price changes and competitive conditions in the market. Political risks such as - war, cabinet crisis, monetary crisis or deepening economic crisis are usually not insurable by private insurance companies but may be insurable by governmental institutions. Very often insurance contracts can be drawn in such a way that an “uninsurable risk" can be turned into an "insurable" one.

excessive                                                     надмірний

premium                                                     страховий внесок

insurance adjuster     оцінювач розміру страхових збитків severe losses             великі збитки

financial hardship      фінансові складнощі windstorm       буря

burglary                                                       крадіжка зі зломом

legal liability             юридична відповідальність occupancy       володіння

competitive                                                 конкуруючий

insurable        той, що може бути предметом страхування draw  складати

2. Agree or disagree with the following statements. 

1) Risk is a person or business judged according to the danger involved in giving them insurance or lending them money. 2) Risk is the possibility that something bad, unpleasant, or dangerous may happen. 3) Risk management is a system to prevent or reduce dangerous accidents or mistakes. 4) Loss adjuster is someone who is employed by an insurance company to decide how much should be paid to people who make claims on their insurance. 5) Insurable risks include losses to property resulting from debauchery. 6) Insurable risks include financial losses and fraud losses. 7) Insurable risks include legal responsibility for paying money that is owed, or for damage or injury. 8) Uninsurable risks include losses resulting from a violent and sudden event or change, such as a serious flood or earthquake. 9) Political risks include losses resulting from opinions, ideas, and actions that most people think are unreasonable and unacceptable.

3.      Translate the following words and phrases from Ukrainian into English.

Складати контракт, великі збитки, бути причиною, фінансові труднощі, власність, вибух, буря, юридична відповідальність, виникати, точка зору, страхувальник, страховий ризик, ймовірність, збиток, вимагати, надмірний, страховий внесок, резонний, необхідний, залежати від, обставини, включати, ставлення до, оцінювач розміру страхових збитків, найняти на роботу, страхова компанія, нещасний випадок, потенційний, володіння, зайнятість, конкуруючий, той, що може бути предметом страхування, урядова криза, грошова криза.

4.      Complete the following statements. Choose one topic to speak about a) an insurable risk from the viewpoint of the insured person; b) insurable risks; c) uninsurable risks; d) political risks. Retell the text The insured and an insurable risk. 

1) An insurable risk is ... from the viewpoint of ... 2) What is "excessive" depends on ... 3) Insurance adjusters are ... 4) The potential loss must be ... to cause ... 5) Insurable risks include ... 6) Uninsurable risks include ... 7) Political risks are ... 8) Insurance contracts can be drawn ...

 

 

1. Restore the word order in the following statements. 

1) Life insurance regular payments so that when he dies his family will receive is a contract whereby someone makes money. 2) Property from accidental destruction of property insurance insures against loss. 3) Marine negligence of the shipper or the insurance covers legal liability for carrier. 4) Liability insurance personal liability covers. 5) Theft insurance all covers acts of stealing. 6) Aviation damage to the aircraft insurance covers physical. 7) Workers' compensation for losses suffered as a result of work-related injuries insurance compensates workers. 8) Credit of bad debts from insurance covers the risk insolvency.

 

12.4 KINDS OF INSURANCE

 

Life insurance is a contract in writing whereby the insured person will pay the insurance company stated premiums, so that he I she will receive a certain sum of money with or without bonuses on reaching a certain age or at death, whichever is the sooner. Property insurance is used to insure against loss from accidental destruction of property. 

Marine insurance contracts are written to cover (1) the vessel, (2) the cargo, (3) the freight revenue to be received by the ship owner, and (4) legal liability for negligence of the shipper or the carrier. There are at least four major types of liability insurance contracts: (1) liability arising out of the use of automobiles, (2) liability arising out of the conduct of a business, (3) liability arising from professional negligence (applicable to doctors, lawyers, etc.), and (4) personal liability . Theft insurance covers all acts of stealing. 

Aviation insurance covers physical damage to the aircraft and legal liability arising out of its ownership and operation. Workers' compensation insurance, sometimes called industrial injury insurance, compensates workers for losses suffered as a result of work-related injuries. Industrial injury insurance is a contract whereby payments are made regardless of negligence. Credit insurance covers the risk of bad debts from insolvency (that is, the inability of a person or company to pay their debts as they fall due), death, and disability. Also t credit insurance covers the risk of loss of savings from bank failure and the risk of loss from export credit because of war or other political causes.

premium  bonus  whichever  accidental marine  vessel  cargo  freight revenue  legal liability  negligence  shipper сarrier  liability insurance  conduct  applicable  aviation  physical damage  insolvency  disability

страховий внесок преміальна надбавка якийсь випадковий морський корабель вантаж виручка від перевезень вантажу юридична відповідальність недбалість вантажовідправник транспортна компанія страхування відповідальності ведення який можна застосувати авіація матеріальний збиток неплатоспроможність непрацездатність

 

2. Agree or disagree with the following statements. 

1) Life insurance is a type of insurance that someone makes regular payments into so that when they die their family will receive money. 2) Bonus is money added to someone's wages, especially as a reward for good work. 3) Property insurance is used to insure against loss from burglary. 4) Marine insurance covers personal liability for negligence of the shipper. 5) Liability insurance covers liability arising out of the use of motorcycles and bicycles. 6) Theft insurance covers all acts of cheating. 7) Aviation insurance covers aviation accidents. 8) Industrial injury insurance compensates workers for losses suffered as a result of lateness and non-attendance. 9) Credit insurance doesn't cover the risk of bad debts from disability.

3.      Translate the following words and phrases from Russian into English.

Неплатоспроможність, непрацездатність, страховий внесок, преміальна надбавка, виручка від перевезення вантажів, юридична відповідальність, вантажовідправник, транспортна компанія, страхування відповідальності, безнадійний борг, експортний кредит, страхування життя.

4.      Complete the following statements. Choose one topic to speak about a) life insurance:

b) property insurance: c) marine in. surance; d) liability insurance; e) theft insurance;

f) aviation insurance: g) workers' compensation insurance; h) credit insurance. Retell the text Kinds of insurance. 

1) Life insurance is ... 2) Property insurance is used ... 3) Marine insurance covers ... 4) Liability insurance covers ... 5) Theft insurance covers ... 6) Aviation insurance covers ... 7) Industrial injury insurance compensates ... 8) Credit insurance covers ...

 

 

 

 

 

 

 

UNIT 13                 MARKETING AND MANAGEMENT

 

1. Restore the word order in the following statements. 

1) Marketing assess the needs of the is the ability to consumer. 2) Marketing the available resources is the ability to use. 3) Marketing goods is the ability to design the. 4) Marketing the goods is the ability to produce. 5) Marketing advertise the goods at the right time is the ability to and at the right place and price. 6) Marketing at the right place and price to the customer is the ability to deliver the goods at the right time and.

 

13.1 MARKETING AND ITS FUNCTIONS

 

Marketing is the ability to assess, by whatever means, the needs of the consumer, then using the available resources, design, produce, advertise, and deliver the goods at the right time and at the right place and price to the customer. Marketing's principal function is to promote and facilitate          exchange. Through marketing, individuals and groups obtain what they need and want by exchanging products and services with other parties. Such a process can occur only when there are at least two parties, each of whom has something to offer. In addition, exchange cannot occur unless the parties are able to communicate about what they offer and to deliver what they offer. Marketing is not a coercive process: all parties must be free to accept or reject what others are offering. So defined, marketing is distinguished from other modes of obtaining desired goods, such as through self-production, begging, theft, or force. Marketing is not confined to any particular type of economy, because goods must be exchanged and therefore marketed in all economies and societies except perhaps in the most primitive one. Furthermore, marketing is not a function that is limited to profit-oriented business; even such institutions as hospitals, schools, and museums engage in some forms of marketing.

assess  consumer  available  occur  unless  communicate coercive  mode  begging  confine  market  furthermore  engage

оцінювати споживач доступний траплятися якщо не повідомляти примусовий спосіб бідність обмежувати купити або продати на ринку окрім того залучати

 

2. Agree or disagree with the following statements. 

1) Marketing is the sum of activities involved in directing the flow of goods and services from producers to consumers. 2) Marketing is the activity of trying to sell a company's products by advertising, using attractive packages etc. 3) Marketing helps exchange to develop and be successful. 4) Marketing is to facilitate exchange. 5) Through marketing, individuals obtain needless and unwanted products. 6) Marketing is a compulsory process. 7) Through marketing, consumers obtain desired goods. 8) Museums do not take part in some forms of international marketing. 9) Hospitals become involved in some forms of marketing.

3.      Translate the following words and phrases from Ukrainian into English.

Маркетинг, прийняти, відкидати, давати визначення, спосіб, бажати, виготовлення для себе, бідність, просити подаяння, крадіжка, примус, обмежувати, особливий тип економіки, отже, купити або продати на ринку, за винятком, до того ж, орієнтований на прибуток, бізнес, здатність, оцінювати, будь-які засоби, потреба, споживач, доступний, ресурси, проектувати, виробляти, рекламувати, доставляти, товари, замовник, сприяти, обмін, купувати, відбуватися, запропонувати, бути в стані, повідомляти, примусовий, залучати.

4.      Complete the following statements. Choose one topic to speak about a) what marketing is; b) marketing's principal function; whether marketing is a coercive process; marketing and other modes of obtaining goods. Retell the text Marketing and its functions. 

1) Marketing is ... 2) Marketing's principal function is ... 3) Through marketing, individuals obtain ... 4) Exchange of products and services can occur ... 5) Exchange of products and services cannot occur ... 6) Marketing is not ... 7) Marketing is distinguished from ... 8) Marketing is not confined to ... 9) Marketing is not a function ... 10) Hospitals, schools, and museums engage III ...

 

 

1. Restore the word order in the following statements. 

1) Segmentation different groups of customers in the is the act of distinguishing among market. 2) Targeting of customers the organization can serve is the act of choosing which groups effectively. 3) Positioning clearly positions the company in relation to competitors is the act of creating and communicating a message that.

 

13.2 MARKETING STRATEGY

 

The marketing process is divided into a strategic and a tactical phase. The strategic phase has three components - segmentation, targeting, and positioning (STP). The organization must distinguish among different groups of customers in the market (segmentation) and choose which groups it can serve effectively (targeting). A key step in marketing strategy, known as positioning, involves creating and communicating a message that clearly positions the company or its brand in relation to competitors. Thus, Volvo (Sweden) has positioned its automobile as the "safest," and. Daimler-Benz (Germany), manufacturer of Mercedes-Benz vehicles, has positioned its car as the best "engineered." Some products may be positioned as "outstanding" in two or more ways. However, claiming superiority along several dimensions may hurt a company's credibility because consumers will not believe that some company can do better than others in all dimensions. Further- more, although the company may communicate a particular position, customers may perceive a different image of the company as a result of their actual unpleasant experiences with the company's product or through word of mouth.

strategy  strategic 

segmentation

 

 

targeting 

positioning  

 

 

 

communicate  position  engineer superiority dimension  credibility  perceive  by words of mouth 

superiority complex  стратегія стратегічний сегментація (процес виявлення найбільш сприятливих умов на ринку з метою вибору варіанта орієнтації виробничої політики) визначення мети позиціонування (дії, що спрямовані на забезпечення товарові конкурентоспроможного на ринку і розробку

відповідного комплексу маркетингу) повідомляти зайняти позицію проектувати перевага вимірювання правдивість сприймати усно манія величі

2. Agree or disagree with the following statements. 

1) Strategy is a well-planned series of actions for achieving an aim, especially success against an opponent. 2) The marketing process is not divided into any phases. 3) The strategic phase has two components. 4) Segmentation is the act of dividing something into smaller parts. 5) Target is an object, person, or place that is deliberately chosen to be attacked. 6) Position is the place where someone or something is, especially in relation to other objects and places. 7) Credibility is the quality of deserving to be believed and trusted. 8) Claiming superiority along several dimensions may hurt a company's honesty because consumers will not believe that some company can exceed the rest in all dimensions. 9) Although the company may state a particular position, customers may receive a different image of the company as a result of their real experiences with the company's product or through word of mouth. 3. Translate the following words and phrases from Ukrainian into English.

Маркетинг, конкурент, таким чином, сприймати, той, що відрізняється, особа, репутація, результат, найбезпечніший, виробник, автотранспортний засіб, проектувати, видатний, незважаючи на це, пред’являти претензію, перевага, вимірювання, пошкодити, правдивість, споживач, стратегія, хід розвитку, поділятися на, фаза, складова частина, сегментація, покупець, ринок, вибирати, обслуговувати, ефективно, включати в себе, створення, послати повідомлення, недвозначно, зайняти позицію, фабрична марка, по відношенню до, думати, окрім того, незважаючи на, визначення мети, позиціонування, фактично існуючий.

4. Complete the following statements. Choose one topic to speak about a) segmentation; b) targeting; c) positioning; d) company's superiority complex. Retell the text Marketing strategy. 

1) The marketing process is divided into ... 2) The strategic phase has ... 3) Segmentation is .o. 4) Targeting is ... 5) Positioning involves ... 6) Some products may be positioned as ... 7) Claiming superiority may... because .o. 8) Customers perceive ... as a result of ...

 

 

 

 

1. Restore the word order in the following statements. 

1) Tactical deals marketing with product. 2) Tactical marketing with price deals. 3) Tactical marketing with deals place. 4) Engineers a product based on their own preferences, interests, or expertise design. 5) Marketers customer desires to the engineers who design the product are to communicate. 6) Engineers expect marketers as many customers as possible to buy to find their product.

 

13.3 MARKETING TACTICS

 

Having developed a strategy, a company must then decide which tactics will be most effective in achieving strategy goals. Tactical marketing involves creating a marketing mix of three main components - product, price and place. Before assembling a product, the marketer's role is to communicate customer desires to the engineers who design the product. This is in contrast to past practice, when engineers designed a product based on their own preferences, interests, or expertise and then expected marketers to find as many customers as possible to buy this product. The second marketing-mix element is price. A Mercedes-Benz vehicle is generally considered to be a high-quality automobile, and it therefore can command a high price in the marketplace. On the other hand, in order to gain market share, some companies have moved to "more for the same" or "the same for less" pricing, which means offering prices that are lower than those of their competitors. Place, or where the product is made available, is the third element of the marketing mix. When a product moves along its path from producer to consumer, it is said to be following a channel of distribution including, for example, food-processing plants, warehouses, wholesalers, and supermarkets. Because of this, some marketers may decide to skip steps in the channel and instead market directly to buyers through direct mail (advertisements that are sent by post to many people), telemarketing (a method of selling things in which you telephone people to see if they want to buy something), door-to-door selling (visiting each house in a street or area, to sell something), shopping via television, or factory outlets.

goal  marketer  preferences  expertise  expect channel of distribution  processing  skip  market  outlet

мета торговець вподобання знання, досвід очікувати, розраховувати канал руху товару переробка перескакувати збувати торгова точка

 

2. Agree or disagree with the following statements. 

1) Salesmen employ all sorts of tricky and fraudulent tactics to try and persuade customers. 2) Tactical marketing creates intentionally false information about products and prices. 3) Marketers' role in the marketplace is to hide the truth or confuse people. 4) Marketers deliberately intend to deceive people. 5) Marketers are to express customer desires to the engineers who design the product. 6) Engineers should not design a product, based on their own preferences, interests, or expertise. 7) Engineers expect marketers to find as many customers as possible to buy their product. 8) High-quality products can command a high price in the marketplace. 9) Companies have to offer lower prices than their competitors to gain market share.

3.      Translate the following words and phrases from Ukrainian into English.

Стратегія, створювати, головний, складовий елемент, виріб, ціна, місце, збирати виріб, торговець, роль, повідомляти, дотримуватися, канал руху товару, переробка, завод, товарний склад, універсам, перескакувати, замість, збувати, пошта, рекламне оголошення, продавати, відвідування магазину з метою покупки, тактика, розвивати, вирішувати, покупець, бажання, інженер, конструювати, контраст, вподобання, інтерес, знання/досвід, очікувати, знаходити, розглядати, якість, отже, ринок, купувати долю на ринку, пропонувати, конкурент, доступний, ефективний, досягати, мета, тактичний, маркетинг, включати в себе, торгова точка.

4.      Complete the following statements. Choose one topic to speak about a) marketing & product; b) marketing & price; c) marketing & place; d) channels of distribution.

Retell the text Marketing tactics. 

1) Tactical marketing involves ... 2) Nowadays the marketer's role is ... 3) It is now a thing of the past, when engineers designed ... and then expected ... 4) The second marketing-mix element is ... 5) ... is generally considered to be ... 6) A Mercedes- Benz vehicle can command ... 7) In order to gain market share, some companies offer ... 8) Place is ... 9) Channels of distribution include ... 10) Direct mail is ... 11) Telemarketing is ... 12) Door-to-door selling is ... 13) Shopping via television is ... 14) Factory outlet is ...

 

 

1. Restore the word order in the following statements. 

1) Distributor supplies is a company that shops with goods. 2) Facilitator helps is someone who a process to take place effectively. 3) Middleman business deals for other helps to arrange people. 4) Agent represents is a person that another person in business. 5) Broker buys and sells is someone who shares for other people.

 

13.4 MARKETING, ITS CUSTOMERS, DISTRIBUTORS AND FACALITATORS

 

The elements that play a role in the marketing process can be divided into three groups:

customers, distributors, and facilitators. In order to understand customers, certain questions must be answered: Who constitutes the market segment? What do they buy and why? And how, when, and where do they buy? Thus, a remotely situated wholesale store may use discounted prices to lure customers away from the more conveniently located shops. Customers can be divided into two categories: consumer customers, who purchase goods and services for use by themselves and by those with whom they live; and business customers, who purchase goods and services for use by the organization for which they work. Four major types of factors influence consumer buying behaviour: cultural, social, personal, and psychological. Many producers do not sell products or services directly to consumers and instead use marketing intermediaries, such as middlemen (wholesalers, retailers, agents, and brokers) and distributors. Distributor is a company or person that makes wholesale purchases from the producers of finished products to become available for people to buy. It is quite a large company having its own warehouses and establishing active contractual relations with manufacturers. Because marketing functions require significant expertise, it is often both efficient and effective for an organization to use the assistance of independent marketing facilitators. These are organizations and consultants whose sole or primary responsibility is to handle marketing functions. There are four major types of marketing facilitators: advertising agencies, market research firms, transportation firms, and warehousing firms.

distributor  intermediary/middleman  remotely wholesale  discounted price lure  conveniently  psychological  retailer  significant  expertise  efficient  consultant  sole

фірма-дистриб’ютор посередник віддалено оптова торгівля ціна зі знижкою зваблювати зручний психологічний роздрібний торговець важливий знання, досвід  доцільний консультант єдиний

 

2. Agree or disagree with the following statements. 

1) Facilitators play a leading role in the marketing process. 2) Consumer customers purchase goods and services for use by the organization for which they work. 3) Business customers purchase goods and services for use by themselves and by those with whom they live. 4) Cultural and social factors influence consumer buying behaviour. 5) Personal and psychological factors don't influence consumer buying behaviour. 6) Many producers sell products or services directly to consumers. 7) Many producers use marketing intermediaries to sell products to consumers. 8) Wholesaler is someone who sells goods wholesale. 9) Retailer is someone who sells things in a shop. 10) Distributor is to establish active contractual relations with wholesalers. 11) Marketing facilitators are to handle marketing functions.

3.      Translate the following words and phrases from Russian into English.

Розташований, оптова торгівля, склад, ціна зі знижкою, розташовувати в певному місці, споживач, купувати, товари та послуги, впливати, поведінка, виробник, продавати, маркетинг, покупець, дистриб’ютор, сприяти, посередник, оптовий продавець, роздрібний торговець, знання/попит, керувати, рекламне агентство, готова продукція, встановлювати діяльні контрактні відносини з промисловцями, дослідження ринків збиту.

4.      Complete the following statements. Choose one topic to speak about a) customers; b) distributors; c) facilitators. Retell the text Marketing, its customers, distributors and facilitators. 

1) The elements that play a role in the marketing process are... 2) Consumer customers purchase ... for use by... 3) Business customers purchase ... for use by... 4) Consumer buying behaviour is influenced by... factors. 5) Many producers do not sell ... and instead use ... 6) Middlemen are ... 7) Distributor is ... 8) It is effective for an organization to use ... 9) Facilitators are ... 10) Marketing facilitators include ...

 

 

13.5 WHAT IS A MANAGER?

 

A number of different terms are used for ‘‘managers’’, including “director”,“administrator” and “president”. The term “manager” is used more frequently in profit-making organizations, while the others are used more widely in government and non-profit organizations such as universities, hospitals and social work agencies.

What, then, is a manager?

When used collectively (1) the term “management” refers to those people who are responsible for making and carrying out decisions within the system.

An individual manager is a person who directly supervises people in an organization.

Some basic characteristics seem to apply        to         managers         in         all        types    of organizations; they include hard work on a variety of activities, preference for active tasks, direct personal relationships.

Almost everything a manager does involves decisions. The reason for making a decision is that a problem exists. In decision-

making there is always some uncertainty and risk.

Managing is a hard job. There is a lot to be done and relatively little time to do it. The engineer can finish a design on a particular day, and the lawyer can win or lose a case (2) at a certain time. But the manager’s job is like “Old Man River”(3) - it just keeps going.

Notes:

1.  Collectively – в збірному значенні

2.  Case – тут діло

3.  “Old Man River” – назва пісні

 

1. Say what you have learned from the Text about:

1.       different words which mean “manager”; 2. the meanings of the words “management” and “manager”; 3. characteristic features common to all managers; 4. the job of a manager.

2.       Answer the questions.

1.                   What individual managers make up management in an organization?

2.                   What concrete activities is a production manager (financial manager, personnel manager, marketing manager) responsible for?

3.                   What type of information does a manager need to make decisions?

4.                   What magazines (reference books, etc.) does a manager have to see on a regular basis?

 

 

MANAGEMENT

 

The job of a manager is both hard and exciting. This job implies coordinating and supervising both personnel and business problems.

The personnel manager deals with interviewing, selecting, recruiting and dismissing (firing) employees (staff) as well as with career development and various other problems. The most important thing in personnel management is staff motivation.

A manager should be efficient, clever, understanding, sympathetic, intelligent, and well educated. He should be a good psychologist and be good in planning and organizing both team and individual activities. He should be good at decision-making and have some idea about administrative law to settle different problems.

There are many other types of managers in a large firm. Sales manager deals in selling different products and services. Purchase manager deals in buying goods.

Shipping manager deals in shipping products, their delivery and packing.

Works (production) manager deals with industrial enterprises, manufacturing process, testing various machines and equipment, after sales service and some ecological problems.

There are also some accountants, planning managers, typists, secretaries and receptionists. Public relations manager deals with customers and their problems.

Different firms and companies do business with other firms. Companies belong to different areas of business: wholesale or retail trade, insurance, banking, catering, vehicle manufacturing, engineering, transport, shipping, real estate, manufacturing various goods, etc.

In wholesale trade the parties of a transaction are called Buyers and Sellers. Those who produce goods are called Producers or Manufacturers. Those who supply and distribute goods are called Suppliers and Distributors.

There are experts in advertising and promoting goods and services. There are lawyers, barristers, attorneys who deal with legal problems, start legal action against unreliable businessmen.

People doing business together, cooperating in some spheres of business are called partners. Those who compete in business are called competitors.

The competition on the world market is very tense nowadays. All manufacturers feel it and try to update their products, to raise their quality. They try to diversify the range of their products and, if possible, to decrease their production cost and selling price, because cheap goods of high quality meet the demands of the customers. And naturally the clients are not interested in expensive low quality goods.

To find out about the range of goods offered by the firm the customers study leaflets and catalogues. To know the prices for products they look through price-lists and quotations. To clarify some details concerning the design and technical features of some machines they ask for specifications. They go on business trips and see round manufacturing plants where they can test the equipment and see the type of packing.

Businessmen hold business talk (negotiations) where they discuss various business matters: the terms of payment, shipment and delivery. There could be different terms (manners) of payment: by a Letter of Credit against shipping documents, payment for collection, FOB (free on board), CIF (Cargo, Insurance, Freight) terms and some other.

The sides discuss the time and manner of shipment and delivery. There might be some delays in delivery because of technical problems or some unforeseen circumstances. They negotiate prices for goods. A price can be high, low, reasonable, attractive, suitable, competitive, acceptable.

If they agree to the terms and selling price, they place an order with the firm. Before placing an order they make offers, enquiries for goods. If the customer does not accept the price he asks for a discount on the price. Prices and terms are often revised because the market situation is changing every day. The market is not stable.

The sides sign contracts which provide a legal guarantee for all obligations. A contract includes know-how, prices, cost, license, terms, after sales service and guarantee period.

If the equipment bought from a certain firm is damaged or if some defect is found, it should be repaired and faulty parts should be replaced at the Seller’s expense.

 

1. Answer some questions on the Text:

1. Is the job of a manager hard and exciting? Why? 2. What kind of person should a manager be? 3. What problems does a personnel manager deal with? 4. What types of managers work in a large firm? 5. What other specialists besides managers work there? 6. What can you say about competition on the world market nowadays? 7. What areas of business do companies belong to? 8. What measures do manufacturers take to compete successfully? 9. What manners of payment do you know? 10. What adjectives can we use when speaking about the price for some goods? 11. What does a contract cover?

12. When do they open a Letter of Credit with the bank?

2. Speak on the following topics:

1.  The job of a personnel manager.

2.  People working for a large firm and their duties.

3.  The current market situation.

4.  Business matters discussed at negotiations.

5.  Pricing and discounts.

6.  Goods: their quality, production costs and selling prices.

7.  Contract as a legal document.

8.  Transaction: stages and participants.

 

13.6 ORGANIZATION

 

Organizations permeate all levels of our lives. We come into contact with many of them daily. In fact, most of us probably spend most of our lives in - or affected by - organizations. We spend sizable amounts of our time as members of work, school, civic and church organizations - involved as employees, students, clients, patients and citizens.

At some times, these organizations appear to be efficiently run and responsive to our needs, and at other times they are extremely frustrating and irritating. We may even think they are harassing us. Such personal experience in or with organizations may have already helped to form our sense of what it means to be ‘organized’.

Organizations exist for one reason:

they can accomplish things that individuals cannot. Thus, whether the goal is to make a profit, provide education, foster religion,

improve health care, get a candidate elected, or build a new football stadium, organizations get the job done. Organizations are characterized by their goal-directed behavior. They have goals and objectives that can be achieved more efficiently and effectively by the concerted action of individuals and groups.

Organizations are essential to the way our society operates. In industry, education, health care and defense, organizations have created impressive gains for our standard of living and our worldwide image. The size of organizations with which you deal daily should illustrate the tremendous political, economic and social powers they separately possess.

Organizations are, however, much more than means for providing goods and services. They create the settings in which most of us spend our lives. In this respect, they have profound influence on our behavior. However, because large-scale organizations have developed only in recent times, we are just beginning to recognize the necessity for studying them. to permeate         проникати

to harass  to frustrate  to irritate  to accomplish to foster  tremendous settings  profound influence

втомлювати засмучувати, робити марними дратувати виконувати заохочувати величезний оточення великий вплив

 

1. Complete these sentences with the words given below and translate them into Ukrainian: employ; employment; employer; employee; unemployment

1.      They are going to discuss the problems of women’s...... at the next meeting. 2. ...... complain that their boss wants them to do too much overtime. 3. ..... often leads to crime, drug abuse and poverty. 4. Some..... encourage their staff to work longer hours and take only half of their annual holiday. 5. I’m afraid it will be impossible to find..... for all the workers of the factory, some of them will be redundant. 6. I believe we should..... this technique to obtain the best results. 

2.      Find the synonyms to the underlined words among the words given below  influence; aim; improve; important; assist; client; react; opinion; person; tremendous; irritating; to contact; supply; has

1.                   Every person studying marketing knows the famous statement: “The customer is always right”.

2.                   There was nobody in the office to help me to operate this new fax machine.

3.                   This is a very unusual technique and undoubtedly there are going to be different points of view concerning its employment in various settings.

4.                   An efficient manager should realize that every individual has a unique set of features and attitudes.

5.                   We’ll get in touch with you as soon as we find out all the details of the coming visit.

6.                   It’s hard to say how he will respond under the circumstances.

7.                   They are going to raise great funds for this enormous housing program.

8.                   Some people have an annoying manner of saying ‘What?’ after you have carefully explained something.

9.                   I think none of us can affect the situation in this organization at the moment.

10.               He possesses a rare quality of a good conversationalist: he is a good listener.

11.               Our employer does not want to admit how hard it will be to reach this final objective.

12.               We are going to provide all necessary equipment and personnel to update the manufacturing process.

13.               It is essential to be involved in the everyday life of an organization to understand its problems.

3.      Complete the sentences in accordance with the Text:

Organizations exist ………

We spend sizable amounts of our time … We come into contact with…..

Organizations have goals and objectives that …… Organizations create the settings in which…… Organizations have profound influence on ….

4.      Answer some questions on the Text:

1. What kind of organizations do we come into contact with daily? 2. Why are organizations so important for us? 3. How do people feel about organizations? 4. What is the reason for the existence of organizations? 5. What kind of behavior is typical of organizations? 6. Why do organizations influence our behavior? 7. Why are the people only beginning to realize the importance of studying organizations?

5. Summarize the Text in 5-7 sentences

 

13.7 BRAND AND PRODUCT MANAGEMENT

 

A brand is a name that is given to a particular product or range of products. In many cases this brand name is simply the company’s name, such as Ford or Heinz. In other cases it may be a completely different name, such as Nescafe, or it may be the overall name for the entire range of goods, such as St Michael for Marks&Spencer.

Branding basically exists to identify a particular product from its competitors. It is all to do with helping the customer identify the product easily. The choice of a brand name is often absolutely vital to the image of the product. Many brand names have become household names; indeed some have become part of the language, such as Hoover (many people now talk of going to hoover the living room, rather than going to vacuum it). Such is the power and penetration of the brand name into our lives.

Own-label products

With the dominance in the supermarkets of «own label» products, the brand name has found a new meaning for the customer. If you have the choice of buying Nescafe or Sainsbury’s own label coffee, what is there to help you make up your mind? The price is different: the Sainsbury’s own label brand is cheaper; you may get more «bulk» for your money; but what do you really think of the choice? Nine times out of ten you will probably reach for the Nescafe. Why? Probably because you think that the Nescafe is «better». Better quality? Perhaps. Now change the situation around and compare Nescafe with Maxwell House. Why do you buy one over the other? Customers go into a shop with a mental list of their preferred brands. What all the marketing, sales promotions and advertising is geared up to do is to put a company’s particular brand name into your memory so that your decision-making process when faced with a choice of branded and own-label products is speeded up and you reach for the brand they want you to reach for.

This branding goes further and tries to encourage you to see the company’s entire range as having the same reputation (a good one, of course). This multi-product branding really does pay dividends, especially when launching a new product that has the same brand name. The new product will find sales quicker and will be accepted faster. The company must be careful, however, since this is a two-edged sword. A poor product can bring a bad reputation to an

otherwise good and reliable brand name.

Some companies prefer to trade under a range of brand names. They may well be in the same market, but they appear to be almost like competitors, though often with complementary products. A good example of this is United Biscuits, which trades under several «household name» brand names including Maxwell House and McVities. The same product, in all but brand name, can then be aimed at different market segments with different images, prices and marketing strategies.

As we have noticed, some manufacturers have their own brand name, while others sell under the brand name of a retailer. The manufacturers which produce particular Marks&Spencer’s products will also produce their own brand products. This method of production is very useful to the manufacturers since it enables them to increase their own production runs and simply change the labels. It also means that they can sell a large proportion of their production runs without having to promote and market these themselves. In other cases, producing own-label products for retail chains is the only way for manufacturers to get them to stock their goods.

What this relationship does mean is that retailers like Sainsbury’s, Marks&Spencer and Tesco are in a very powerful position. They control the pricing, the distribution and the marketing. The manufacturer is very much in their hands. The retail chain will be able to demand that pricing is in their favour, the specifications of the product meet with their approval, that particular stock levels are maintained, and that they receive priority treatment even above the manufacturer’s own-label products. Product names

The additional use of a name coupled with the brand name also helps to identify a particular product. Ford is the company name and also the brand name, but in addition to this all of their makes or models of car have a name of their own. The Fiesta, Sierra, Escort and Orion are all examples of Ford’s product names. This helps the customer to speed up the decision-making process by recognising and selecting the product they want in a

potentially confusing situation. Ford could just call all of their cars «Ford cars» and give them a number, or describe them as the «Ј13,000 Ford car». Each product name establishes a specific image by which the customer can identify the product. What you call a product has to be carefully thought out. An inappropriate name is death to the product – after all who would want to ride about in a Ford Trout?

Product name helps to position the product in the market. The name should convey something to which the prospective buyer can relate. A boring or inappropriate name will need much more spent on it in marketing and promotion than a name that inspires the customer to remember it and be inspired by it.

Trademarks

Once you have decided on a name, you need to protect that name. Without trade names being registered as trademarks, there would be nothing to stop anyone giving their product the same name as yours. Successful products can be imitated but they cannot be copied and the same thing goes for names. You cannot even attempt partly to copy a name; for example, you could not name your car the Furd Curtina, or you would find yourself very quickly in court! Registered names and trademarks are very valuable commodities. What the name represents is all the effort and expense you have put into making that product what it is.

 

1.      Make a list of the brand names that you can think first (not less than 10). See how many of them are company names and how many are product names.

2.      Visit the nearest supermarket and have a look at the «competing» brands of washing powders, liquids, soaps. Count how many of them are produced by the same companies. Are these goods really different according to advertising? Is it really good to sell the same thing with different names?

3.      Find, write down and remember 3 synonyms to the following words from the text.

Commodity, valuable, example, court, promotion, customer, manufacture, dominance.

4.      State and explain the main idea of every paragraph.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIT 14                                                            CONTRACT

 

1. Restore the word order in the following statements. 

1) Contract in law is a promise enforceable. 2) The making of a the mutual assent of two or more contract requires persons. 3) Most a simple nature and involve contracts are of an offer and an acceptance and a consideration must pass between the two parties. 4) A contract verbally or in can be made writing. 

 

14.1 CONTRACT LAW

 

Contract is a promise enforceable in law. The promise may be to do something or to refrain from doing something. The making of a contract requires the mutual assent of two or more persons, one of them usually making an offer and another accepting. If one of the parties fails to keep the promise, the other is entitled to legal recourse. The law of contracts considers such questions as whether a contract exists, what the meaning of it is, whether a contract has been broken, and what compensation is due the injured party. Contract law is the product of a business civilization. It will not be found, in any significant degree, in precommercial societies. Most primitive societies have other ways of enforcing the commitments of individuals; for example, through ties of kinship or by the authority of religion. In an economy based on barter (exchanging goods and services for other goods and service without using money), most transactions are selfenforcing because the transaction is complete on both sides at the same moment. Problems may arise if the goods exchanged are later found to be defective, but these problems will be handled through property law - with its penalties for taking or spoiling the property of another - rather than through contract law. Traditional contract law developed rules and principles controlling the voluntary assumption of obligations, regulating the performance of obligations so assumed, and providing

sanctions for failure to perform. contract law  enforceable in law 

 

refrain  mutual assent  entitle  legal recourse  due  injured party  commitments  kinship  complete  handle  договірне право той, що може бути примусово здійснений за законом утримуватися обопільна згода давати право звернення до суду належний постраждала сторона зобов’язання  спорідненість повний регулювати

property law  voluntary  assumption  assume  contractual  performance  failure

право власності добровільний прийняття на себе приймати на себе договірний  виконання провал

 

2. Agree or disagree with the following statements. 

1) Contract is a formal written agreement between two or more people, which says what each person must do for the other. 2) To barter means to give anything but money in exchange for some other commodity. 3) Barter is a characteristic of a primitive community. 4) Today barter is accepted on an international scale to facilitate trading with countries of the Eastern bloc and others which are short of hard, convertible currencies. 5) Contract law governs the voluntary assumption of contractual obligations. 6) Contract law adjusts the performance of contractual obligations. 7) Contract law secures sanctions for a lack of success in performing contractual obligations. 8) Contract law is to enforce the commitments of individuals through ties of kinship. 9) Contract law is to enforce the commitments of individuals by the authority of religion.

3.      Translate the following words and phrases from Ukrainian into English.

Зазнати невдачі, спорідненість, угоди, повний, регулювати, право власності, обіцянка, примусово застосовувати, утримуватися, вимагати, обопільна згода, зазвичай, приймати, псувати, добровільний, влада, прийняття на себе, договірне право, приймати на себе, виконання, забезпечити, провал, виконувати, санкція, дефектний, виникати, розглядати, цивілізований світ, давати право, звернення до суду, існувати, постраждала сторона, контрактні зобов’язання, компенсація, належний.

4.      Complete the following statements. Choose one topic to speak about a) contract; b) contract law and primitive societies; c) traditional contract law. Retell the text Contract law. 

1) Contract is ... 2) Contract may be ... 3) The making of a contract requires ... 4) If one of the parties fails ... the other is entitled ... 5) Contract law considers ... 6) Contract law is ... 7) Contract law w.il1 not be found in ... 8) Most primitive societies enforced ... through ... or by... 9) Barter is a system of ... 10) Contract law controls ... 11) Contract law regulates ... 12) Contract law provides ...

 

 

1. Restore the word order in the following statements. 

1) Contract law contracts made under voids duress. 2) Contract law unconscionable voids bargains. 3) Contract protects law minors. 4) Contract law incompetents protects. 5) Contract protects law against the ill-considered assumption of contractual obligation. 6) Contract voids contracts to commit a civil law wrong. 

 

14.2 THE ASSUMPTION OF CONTRACTUAL OBLIGATIONS

 

Much of the law of contract is concerned with ensuring that agreements are arrived at in a way that meets at least minimum standards respecting both parties' understanding of, and freedom to decide whether to enter into, the transactions. Such provisions include rules that void contracts made under duress (illegal or unfair threats) or that are unconscionable bargains. Contract law holds protection for minors and incompetents. [Minor is someone who is below the age at which they become legally responsible for their actions. Incompetent is someone not having the ability or skill to do their job properly.] Contract law contains formal requirements protecting against the ill-considered (have not been carefully thought about) assumption of obligation. Thus, section 138 of the German Civil Code considers void any con- tract "whereby a person profiting from the distress, irresponsibility, or inexperience of another" obtains a disproportionately advantageous bargain. [Distress is a feeling of extreme worry and unhappiness. Irresponsibility is the state of doing careless things without thinking or worrying about the possible bad results. Inexperience is lack of experience.] By the law of contract certain agreements are illegal, for example, an agreement to commit a civil wrong or the assumption of a legally binding obligation to confer a gift of money upon another. Contractual obligations must not include or encourage secret illicit services.

сontractual obligations  контрактні зобов’язання concerned   той, що має відношення

          arrive at an agreement                                          дійти згоди

provisions            положення void         анулювати

consider void       вважати таким, що не має сили duress        примушення

           unconscionable bargain                                        незаконна згода

minor       неповнолітній підліток ill-considered          необдуманий

profit       отримати прибуток distress  нещастя

irresponsibility  безвідповідальність inexperience       недосвідченість

disproportionately           непропорційно advantageous      вигідний civil wrong              цивільна шкода

          confer                                                                    дарувати

           illicit                                                                     незаконний

 

2. Agree or disagree with the following statements. 

1) Contract law annuls contracts made under compulsion. 2) Contract law cancels contracts made under legal or fair threatening. 3) Contract law encourages corrupt bargains. 4) Contract law protects those who do a lot of complicated, often dishonest deals, especially in business or politics. 5) Contract law protects double-dealers. 6) Contract law requires protection against the deliberate assumption of obligation. 7) Contract law considers legally valid any contract whereby a person profiting from the distress of another obtains a disproportionately advantageous bargain. 8) Contract law forbids bribes. 9) Contract law stimulates givers of bribes and takers of bribes. 10) Minor is someone who is legally responsible for his or her actions. 11) Incompetent is someone not having the ability or skill to do their job properly. 12) Competence is a skill needed to do a particular job. 13) Distress is the state of being happy. 14) Responsibility is a duty to be in charge of or look after something, so that you make decisions and can be blamed if something bad happens. 

3.      Translate the following words and phrases from Ukrainian into English.

Здійснювати, цивільна шкода, юридично обов’язковий, дарувати, контрактні зобов’язання, той, що має відношення до, забезпечувати, дійти згоди, поважати, положення, анулювати, недійсний, неповнолітні підлітки, некомпетентний, необдуманий, прийняття на себе, за допомогою чого, отримувати прибуток, вважати таким, що не має сили, примушення, незаконна згода, нещастя, безвідповідальність, недосвідченість, отримувати, непропорційно, вигідний, незаконний. 

4.      Complete the following statements. Choose one topic to speak about a) what contracts contract law voids; b) whom contract law protects. Retell the text The assumption of contractual obligations. 

1) Contract law is concerned with ... 2) Contract law voids contracts ... 3) Contract law holds ... 4) Contract law contains ... 5) Contract law considers void ... 6) Contract law voids an agreement ... 7) Contract law voids the assumption of ... 8) Contractual obligations must not include or encourage ...

 

 

1. Restore the word order in the following statements. 

1) Contractual obligations of balance by unforeseen may be thrown out circumstances. 2) Contract law contractual obligations to be allows readjusted. 3) Only are contractual obligations under exceptional circumstances readjusted. 4) Contractual obligations in the form of special legislation are usually readjusted. 

 

14.3 THE PERFORMANCE OF CONTRACTUAL OBLIGATIONS

 

 Contract law allows contractual relations to be adjusted when they have been thrown out of balance by unforeseen circumstances. The task of adjustment is relatively easy in cases in which both parties made a mistake. The problem of mistake becomes more intractable when the error is chargeable to only one party. Catastrophic events such as inflation, political upheaval, or natural disasters may upset the economy of a contract. [Political upheaval is a very big change connected with the goven1ment or public affairs of a country that often causes problems.] In the case of natural catastrophes, relief is frequently available under theories of force majeure and "act of God". [Force majeure is an event that cannot be reasonably anticipated or controlled. Act of God is an event that is caused by natural forces, such as a storm, flood, or fire, which you cannot prevent or contro1.] When the circumstances are economic in their nature, as with severe inflation or deflation, a solution is difficult to find. [Inflation is an increase in the volume of money in circulation relative to available goods and services resulting in a continuing rise in the general price level: Deflation is the process of reducing the amount of money in circulation in order to lower or keep steady the prices of goods.] A party who benefits from inflation in one contractual relation may suffer from it in another. A general readjustment in contracts would be enormously complicated and time-consuming and would interject an undesirable element of uncertainty into business activity. Only under exceptional circumstances - usually in the form of special legislation - are contractual relations readjusted.

рerformance  contractual  overbalance\unbalance  intractable  chargeable  natural disasters economy  catastrophe  relief  anticipate  relative to benefit

виконання договірний вибити з рівноваги неподатливий той, що відноситься на рахунок стихійні лиха структура катастрофа звільнення від зобов’язань передбачувати відносно отримувати користь

           interject                                                                вставляти

 

2. Agree or disagree with the following statements. 

1) Contract law allows contractual relations to be adjusted when they have been overbalanced by unforeseen circumstances. 2) The task of adjustment is relatively difficult in cases in which both parties made a mistake. 3) The problem of mistake becomes more flexible when the error is chargeable to only one party. 4) Bad relationship between two parties may upset the economy of a contract. 5) When the circumstances are natural, a solution is difficult to find. 6) Only under usual circumstances are contractual relations readjusted. 

3.      Translate the following words and phrases from Russian into English.

Той, що відноситься на рахунок, непередбачена обставина, контрактні зобов’язання, сторона в договорі, політичний переворот, стихійні лиха, засмучувати, структура, доступний, форс-мажор, передбачити, природні сили, запобігати, інфляція, звільнення від зобов’язань, страждати від, переробка, той, що займає багато часу, небажаний, невпевненість, контрактні відносини, грошовий обіг, виконання, договірний, приводити до ладу, вибити з рівноваги, урегулювання, відносно, неподатливий, помилка, ділова активність, виключна обставина, законодавство, переробляти, дефляція, рішення, відносно, мати результатом, тривале зростання, рівень цін, отримувати користь.

4.      Complete the following statements. Choose one topic to speak about a) contractual obligations and the problem of mistake; b) contractual obligations and catastrophic events; c) contractual obligations and economic circumstances. Retell the text The performance of contractual obligations. 

1) Contract law allows ... 2) The task of adjustment is ... 3) The problem of mistake becomes ... 4) Catastrophic events are ... 5) Catastrophic events may upset ... 6) In the case of ... relief is ... 7) When the circumstances are ... a solution is ... 8) A party who benefits from ... 9) A general readjustment in contracts would be ... and would interject ... 10) Contractual relations are readjusted only under ... and in the form ...

1. Restore the word order in the following statements. 

1) Contract law with sanctions deals. 2) Sanctions the form of money take damages. 3) In case of delay an can bring action of in the fulfilment of contractual obligations a damaged party party damages against the responsible. 4) In case of a damaged party party can bring an action of damages erasure in the fulfilment of contractual obligations against the responsible. 5) Restitution to the party damaged party money he has given the breaching restores. 6) Expectancy the damaged party as if the contract had been fully rewards performed. 

 

14.4 SANCTIONS FOR NON-FULFILMENT OF CONTRACTUAL OBLIGATIONS

 

Another branch of contract law deals with the sanctions that are made available to a contracting party when the other party fails to perform his contractual obligations. These sanctions usually take the form of money damages. In case of delay in the fulfilment of contractual obligations or erasure in the fulfilment of contractual obligations a damaged party can bring an action of damages against the responsible party. The court imposes damages as compensation in money for detriment sustained by a plaintiff. The purpose of damages is to place the person in the same position before the action occurred. Damages may be classified as nominal, where no actual damage has been suffered, or substantial which represents compensation for actual loss suffered. Damages can also be punitive. Punitive damages are damages imposed by the court as a punishment of the defendant rather than compensating the plaintiff. Money damages are generally awarded under contract law. When one party to a contract fails to perform his obligation, the other can seek damages by two ways: (1) restitution, which restores to him whatever goods, services, or money he has given the breaching party, (2) expectancy, which rewards him as if the contract had been fully performed; expectancy includes profits anticipated on the contract. Contract law seeks a sanction against contracting parties for non-fulfilment of contractual obligations.

make available  fail to perform  money damages  erasure  damages  sustain detriment\suffer damage  occur  punitive  award  seek damages  restitution  breach  expectancy  reward   anticipate  seek a sanction

надавати не вдалося зробити грошова компенсація збитку ухилення компенсація за збитки понести збитки відбуватися каральний присуджувати вимагати відшкодування збитків повернення втраченого порушувати очікування винагороджувати передбачити вимагати застосування санкцій

 

2. Agree or disagree with the following statements. 

1) Contract law deals with damaged parties and responsible parties. 2) When one party to a contract fails to perform his obligation, the other is not to seek damages. 3) In case of delay in the fulfilment of contractual obligations a responsible party can bring an action of damages against the damaged party. 4) In case of erasure in the fulfilment of contractual obligations a responsible party can bring an action of damages against the damaged party. 5) Expectancy restores to the damaged party money he has given the breaching party. 6) Restitution rewards the damaged party as if the contract had been fully performed. 

3.      Translate the following words and phrases from Ukrainian into English.

Постраждала сторона, пред’явити позов за збитки, винна сторона, компенсація за збитки, понести збитки, позивач, відбуватися, номінальні збитки, фактичні збитки, каральний, відповідач, присуджувати, договірне право, вимагати відшкодування збитків, реституція, порушувати, очікувати, винагороджувати, передбачити, вимагати впровадження санкцій, санкції за невиконання контрактних зобов’язань,  сторони, що домовляються, грошова компенсація збитків, затримка виконання контрактних зобов’язань, ухилення від виконання контрактних зобов’язань. 

4.      Complete the following statements. Choose one topic to speak about a) damages; b) restitution; c) expectancy. Retell the text Sanctions for non-fulfilment of contractual obligations. 

1) Contract law deals with ... when ... 2) Sanctions usually take ... 3) In case of ... a damaged party can ...  4) The court imposes ... 5) The purpose of damages is ... 6) Damages may be ... 7) Punitive damages-are ... 8) Money damages are awarded under ... 9) When one party to a contract fails ... the other can ... 10) Restitution restores ... 11) Expectancy rewards ... 12) Expectancy includes ... 13) Contract law seeks ...

UNIT 15                                                             TRADE

 

15.1 RETALING

 

Retailing is selling goods and services to the ultimate consumer. Thus, the retailer is the most expensive link in the chain of distribution. Being middlemen, they make their profit by charging the customer 25 to 100 per cent more than the price they paid for the item.

The retailers operate through stores, mail-order houses, vending machine operators. There are different types of retail stores: department stores, discount houses, cooperatives, single line retailers. The major part (over 95 per cent) of retail establishments concentrate on a single line of merchandise for example, food, hardware, etc. But nowadays there is a trend for many single line stores to take on a greater variety of supplies.

The retailer performs many necessary functions. First, he may provide a convenient location. Second, he often guarantees and services the merchandise he sells. Third, the retailer helps to promote the product through displays, advertising or sales people. Fourth, the retailer can finance the customer by extending credit. Also the retailer stores the goods in his outlet by having goods available.

retailing                                      ultimate consumer                     link                                           mail-order house                       vending machine operator       discount house                      cooperative                               single line retailer                   to perform functions                extending credit                       outlet                                   discount

роздрібна торгівля кінцевий споживач зв'язок, ланка магазин, що висилає товари поштою оператор торгових автоматичних машин магазин з відносно низькими цінами кооператив роздрібний торговець, що продає якийсь один товар виконувати функції довгостроковий кредит ринок збуту, торгівельна точка знижка

 

1. Answer the questions.

1.                   What is retailing? 2. What are four different types of retail stores? 3. What are at least two types of retailing that do not include the use of a store? 4. In what way does a retailer serve a customer? 5. In what way does a retailer serve a manufacturer? 6. Which per cent of the price of the goods sold goes to the retailer? 7. What is the trend with a single line retailer now?

 

2.                   Choose the necessary word and put it in the sentence.

1.  … is one function a retailer may perform.       

2.  You can buy newspapers, cigarettes, cookies from a ….       

3.  … is the most expensive link in the chain between a producer and a consumer.    

4.  The firm … good quality of the product.    

5.  She doesn’t like to go shopping, she prefacers to do it by ….     

6.  The department store is having a sale and there is a 20 per cent … on all light dresses. 

7.  Wholesaler is an important … between a producer and a consumer.   

 

shopping guide             довідник магазинів discount coupon            талон, що надає право купівлі за зниженою ціною store                               магазин

department store          універмаг supermarket                 супермаркет

grocery                          бакалея

shopping center            торгівельний центр

 

3. Answer the questions.

1. What kind of shops in this country do you know? 2. What shops are situated not far from your house? 3. What goods can be bought there? 4. What specific features do channels of distribution have in this country? 5. What reforms does this country need to reorganize the channels of distribution?

4. Translate into English 

1.      Роздрібна торгівля – це продаж товару кінцевому споживачу.

2.      В західних країнах є різні типи торгівельних закладів: універмаги, супермаркети, магазини з низькими цінами, та ін.

3.      На цей товар можна отримати 10% знижку.

4.      Роздрібний торговець може надати покупцеві довгостроковий кредит.

5.      Ця фірма має багато торгівельних точок по всій країні.

6.      Роздрібний торговець виконує багато важливих функцій.

7.      Я не знаю центр міста, мені потрібен довідник магазинів.

8.      В торгівельному центрі ви знайдете всі необхідні вам товари.

9.      В цьому магазині нема бакалейного відділу.

 

15.2 WHOLESALING

 

Wholesaling is a part of marketing system. It provides channels of distribution which help to bring goods to the market. Generally, indirect channels are used to market manufactured consumer goods. It could be from the manufacturer to the wholesaler from the retailer to the consumer or through more complicated channels. A direct channel moves goods from the manufacturer or producer to the consumer. 

Wholesaling is often a field of small business, but there is a growing chain movement in the western countries. About a quarter of wholesaling units account for the one-third of total sales. 

Wholesalers simplify the process of distribution. For example, the average supermarket stocks 5.000 items in groceries alone, a retail druggist can have more than 6.000 items. As a wholesaler handles a large assortment of items from numerous manufacturers he reduces the problem of both manufacturer and retailer. The store keeper does not have to deal directly with thousands of different people. He usually has a well-stocked store and deals with only a few wholesalers. 

retailer  wholesaling to provide channels indirect channels complicated channels chain movement

роздрібний торговець оптова торгівля забезпечувати системою (збуту) непряма, опосередкована система збуту складна система збуту рух до об’єднання

 

1. Read and translate the question. Choose the correct answer from the given bellow variants. 

How does a wholesaler simplify the process of distribution?  a) a wholesaler negotiates sales and purchases. 

b)  a brings goods to the market. 

c)   receives commissions. 

d)  handles a large assortment of items from numerous manufacturers.

 

 

14.3 TRADE DOCUMENTATION

 

Any business transaction involves a number of documents. The most common are related to:

•  the sale of goods

•  the transport of the goods

•  the payment of the goods

The document related to the sale of goods is called an invoice. It is a document issued by a seller to a buyer and it shows details of the goods sold (quantity, description, price), name and contact information of both the seller and the buyer, as well as payment terms. It must contain a number and a date.

The transport document depends on the means of transport used. In fact, goods can be transported by train, by lorry, by ship or by plane. This document is issued by the transport company which takes the goods and delivers them to the buyer. It contains the name and contact information of the seller, the buyer and the carrier, details of the goods (quantity, description and size) and all information about when and where the goods leave and arrive.

Payments involve banks that move money from the buyer's bank account to the seller's bank account. One of the most frequently used means is the bank transfer.

The choice of which payment terms to use in a business transaction depends on different factors. One factor is the relationship between the seller and the buyer because some means of payment can be safer for the seller: for example, payment in advance, which means that the buyer pays before receiving the goods. On the other hand, the means of payment that gives the maximum security to the buyer but represents the greatest risk to the seller is open account terms in which the buyer agrees to pay the seller's invoice at a future date, usually in 30 to 90 days. This means of payment is used only if the buyer is financially reliable and the seller trusts him.

 

1.      Answer the questions.

1 What document refers to the sale of goods? 2 Who issues it? 3 How many means of transport can you think of? 4 Can you give a definition of carrier? 5 What does payment in advance consist of? 6 When does a buyer usually pay on open account terms? 

2.      Look at this table. Tick (V) the documents where you can find these elements.

	invoice	transport documents	payment documents
Buyer's name
Seller 's name
Carrier’s name
Details of the goods
Name of bank

 

 

D&M Fashion is an English company that makes accessories. One of its customers, an Italian shop, has sent them an order. Let's look at the documents in the transaction. The invoice

3.      Look at the invoice and answer the questions.

D&M Fashion                                                                                 Invoice no.: 45/A www.dandm.com        Invoice date: 14 April 2011 15 Lockett Street            Order no.: 66/ 11 Manchester, M8 8EE                                                                       Order date: 2 March 2011 Tel.: 01618349652 Fax: 0161 8349655 info@dandm.com   Buyer: Nonsologiolli              Via Oriani 35              48121 Ravenna              Italy
Quantity	Cat.No	Description	Unit price	Total price
40	A52	ear ring	£12.50	£500.00
50	A55	ear ring	£10.90	£545.00
35	G63	ring	£7.80	£273.00
65	H78	bracelet	£22.40	£1456.00
				£2774.00
Payment Terms: bank transfer 30 days from invoice date

 

1  What's the exporter's name?

2  What's the importer's name?

3  Where are the two companies based?

4  When is the invoice issued?

5  When did the buyer send his order? 6 What are the invoice and the order numbers?

7        How many different types of articles does the buyer buy?

8        What is the most expensive article? 9 How does the buyer pay? 

10 What is the total amount of the invoice?

4.      Complete this text summarising the invoice.

This document is an (1) ___________ sent by (2) ___________ to one of its customers called (3) __________ . The invoice is issued on (4) ___________ 2011 and it refers to order no. (5) __________ of (6) __________ 2011. The Italian customer buys earrings, (7) __________ and (8)

__________ for a total quantity of (9) __________ items and for a total amount of (10) £ _________

 

 

The transport document

Nonsologioielli needs the accessories urgently, so they require transport by air. The transport document used in transport by air is called an Air Waybill.

5.      Read the dialogue between Bob and Diana Downing, who works for the courier transporting the goods ordered by Nonsologiolli. She is writing the Air Waybill with a colleague. Complete it. 

 

Diana: Now, Bob, let’s complete the Air Waybill for D&M Fashion. 

Bob: OK. So the consignor is D&M Fashion. This is the address, isn’t it? 15 Lockett Street, Manchester, M8 8EE. 

Diana: Yes, and the consignee is Nonsologiolli, Via Oriani 35, 48121Ravenna, Italy. 

Bob: Did you say 48? 

Diana: 48121. The goods leave from Manchester airport and arrive at Bologna airport. 

Bob: OK. So Manchester, airport of destination Bologna. What’s the flight number?  Diana: It’s BA 399 and it leaves tomorrow. 

Bob: So that’s 16 April. 

Diana: It’s 1 package with a gross weight of 11,80kg. 

Bob: 1 package, 11,80 kg. Dimensions? 

Diana: 40cm x 30cm x 15 cm 

Bob: That’s it. Let’s write the date, 15 April 2011. I’ll print it and it’ll be ready for you to sign.  Diana: Thanks, Bob.

 

406 - 0000 0000
Consignor's name:  (1) ____________ 15 Locket Street Manchester M8 8EE			548 - 4310 – 9022                            Air Waybill                            issued by:                            UK World Courier                            72 Maple Road                            Manchester M3 2BY
Consignee's name I Nonsologiolli Via Oriani 35 (2) ________ Ravenna Italy
Airport of departure: (3) ________________			Airport          of           destination             (4) _______________
Flight no. BA 399		Flight Date (5) _________________ 2011
No. of packages    (6) ___________	Gross weight      (7)_________________ ,80kg			Nature and Quantity of Goods  (including dimensions or volume) 1 box 40cm X 30cm X 15cm
Signature of Issuing Carrier: Diana Downing			Date (8) ______________/04/2011
N.O.3                                                                                                   ORIGINAL FOR              406 - 0000 0000                                                                                  SHIPPER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

CONTENTS

 

UNIT 1 BUSINESS COMMUNICATION

1.1 Communicating in business…………………………………………………2

1.2 Writing a business letter in English…………………………………………4

1.3 Choosing jobs………………………………………………………………..6

1.4 Applying for a job………………………………………………………….12

 

UNIT 2 THE SCIENCE OF ECONOMICS

2.1 Economic activity…………………………………………………………..19

2.2 The science of economics………………………………………………….20

2.3 Economic strategies………………………………………………………...21

2.4 Economic indicators………………………………………………………..22

2.5 Economic cycles……………………………………………………………27

2.6 Economic sectors…………………………………………………………...30

 

UNIT 3 ECONOMIC SYSTEMS

3.1 Economic systems………………………………………………………….37

3.2 First socio-economic formations…………………………………………...38

3.3 Feudalism and capitalism…………………………………………………..39

3.4 The basic kinds of economic systems……………………………………...40

3.5 Mixed economies…………………………………………………………..42

 

UNIT 4 ECONOMIC LAWS

4.1 Utility and prices…………………………………………………………...43

4.2 Price…………………………………………………………..…………....44

4.3 The price system…………………………………………………………...45

4.4 Supply and demand………………………………………………………...47

 

UNIT 5 MONEY

5.1 Money and its functions……………………………………………………49

5.2 Paper money and gold standard……………………………...…………….50

5.3 Monetarism…………………………………………………………………52

5.4 Money laundering…………………………………………………..……...53

5.5 What are the world’s major currencies…………………………………….55

5.6 Naming the currency and creating the € symbol…………………………...57

 

UNIT 6 CREDIT

6.1 Credit and crediting………………………………………………………..59

6.2 Credit risk………………………………………………………………..…60

6.3 Credit union………………………………………………………………...61

6.4 Credit cards and cardholders……………………………………………….63

 

UNIT 7 BANKING

7.1 Bank classes………………………………………………………………..65

7.2 European Bank for Reconstruction and Development……………………..66

7.3 European Investment Bank………………………………………………...68

7.4 Bank of England…………………………………………………………....69

7.5 Internet banking…………………………………………………………….70

 

UNIT 8 TAXATION

8.1 Objectives of taxation………………………………………………………75

8.2 Principles of taxation……………………………………………………….76

8.3 Tax return…………………………………………………………………..78

8.4 Classes of taxes…………………………………………………………….79

 

UNIT 9 ENTREPRENEUSHIP

9.1 Entrepreneurs and entrepreneurship………………………………………..82

9.2 Company……………………………………………………………………83

9.3 Running a company………………………………………………………...84

9.4 Bancruptcy………………………………………………………………….86

 

UNIT 10 ACCOUNTING

10.1 Accounting………………………………………………………………...89

10.2 Balance sheet……………………………………………………………...91

10.3 Income statement………………………………………………………….92

 

UNIT 11 ADVERTISING

11.1 Advertising and its history………………………………………………..94

11.2 Advertising and media……………………………………………………95

11.3 Advertising and its effectiveness…………………………………………97

11.4 Advertising, its cost and its influence…………………………………….98

 

UNIT 12 INSUARANCE

12.1 Insurance, the insurer and insured...……………………………………100

12.2 The insurer and an insurable risk……………………………………….101

12.3 The insured and an insurable risk……………………………………….103

12.4 Kinds of insurance………………………………………………………104 UNIT 13 MARKETING AND MANAGEMENT

13.1 Marketing and its functions……………………………………………..106

13.2 Marketing strategy………………………………………………………107

13.3 Marketing tactics………………………………………………………...109

13.4 Marketing, its customers, distributors and facalitators…………………..110

13.5 What is a manager?………………………………………………………111

13.6 Organisation……………………………………………………………...114

13.7 Brand and product management…………………………………………116

 

UNIT 14 CONTRACT

14.1 Contract law……………………………………………………………...119

14.2 The assumption of contractual obligations………………………………120

14.3 The performance of contractual obligations……………………………..122

14.4 Sanctions for non-fulfilment of contractual obligations………………….123

 

UNIT 15 TRADE

15.1 Retailing………………………………………………………………….125

15.2 Wholesaling……………………………………………………………...126

15.3 Trade documentation…………………………………………………….127