Cross-cultural communication

ДЕЛОВОЙ АНГЛИЙСКИЙ ЯЗЫК

 

Утверждено Редакционно-издательским советом

университета в качестве учебного пособия

 

Санкт-Петербург

 

 

ВВЕДЕНИЕ

Курс обучения «Деловой иностранный язык» для студентов дневной, очно-заочной и заочной форм обучения направлен на выработку у учащихся языковой и коммуникативной компетенций, достаточных для осуществления ими устных и письменных деловых контактов с иностранными партнерами в ходе их профессиональной деятельности.

Научное, профессиональное и культурное сотрудничество специалистов различных сфер деятельности из Российской Федерации и зарубежными странами постоянно расширяется и укрепляется. Важнейшим элементом этого сотрудничества является деловое общение, выражающееся как в личных контактах, так и через различные каналы связи. Личные контакты предполагают многообразные формы обмена информации (деловые встречи, участие в выставках, выступления на конференциях, симпозиумах и дискуссиях, участие в переговорах по заключению контрактов. Обмен информацией через различные каналы связи (телефонные переговоры, деловые письма, сообщения по электронной почте) также требует от специалиста знания специфики этих форм общения и владения соответствующими навыками их осуществления.

Кроме того, молодому дипломированному специалисту необходимо обладать знаниями и умениями вести деловую переписку, заполнять различные анкеты, правильно составить заявление о приеме на работу, а также адекватно понимать соответствующие документы, выполненные на иностранном языке. Именно данные задачи стоят перед курсом «Деловой иностранный язык», преподаваемый в СПГУТД.

В пособии приводится описание различных видов деловых писем, излагается структура делового письма на английском языке, даются наиболее часто встречающиеся в деловых письмах и телефонных разговорах выражения, а также предлагаются тексты на иностранных языках, содержащие рекомендации и выражения, необходимые для делового общения на иностранном языке.

Пособие содержит рекомендации и необходимые ссылки на основную и дополнительную литературу, которая позволит обучающимся углубить свои знания по данной дисциплине и расширить соответствующие навыки.

Cross-cultural communication

Exercise 1. Read the text and make a list of things you have to do to board the plane.

Travelling by air

Nowadays people who go on business mostly travel by air. This is why here is a list of recommendations which may be helpful. Passengers should arrive at the airport at least two hours before the departure. They must register their tickets, weigh in and register their luggage. Passengers should be aware that there is free luggage allowance of 20 kg. Excess luggage should be paid for. Finalizing this procedure is the boarding pass which is given to every passenger. It contains an indication of the departure gate and time.

When the boarding pass is given the passengers should proceed to the passport control where his or her identity is checked and the so called green light is given for the departure. When on board the passengers should be careful and watch the electric light signs. When the “Fasten the seat belts” sign goes on, do it promptly, and obey the “No smoking” signal. And do not forget your personal belongings in the plane when leaving it.

After the landing the officials will check the passports and visas of the passengers. These formalities are more or less similar in all countries. In some countries these officials may also check the passengers’ certificates of vaccination. When these formalities have been completed the passengers will go to the Customs for an examination of their luggage. If a passenger has nothing to declare he or she may just go through the ‘green section’ of the Customs. But sometimes the Customs inspector may ask you to open your bag or suitcase for inspection. This is done to prevent smuggling. After you are through with all customs formalities you are free to cross the border and enter the country of your destination.

Exercise 2. Quiz. Work in pairs. Do the around the world quiz. Then check your answers with the Answer key. Give yourselves one mark for each correct answer. After doing the quiz give your own examples of cultural differences.

 

AROUND THE WORLD QUIZ

 

1. China

You’re invited to someone’s house/ Which of these may cause offence?

a) Blowing your nose.

b) Refusing an offer of food.

c) Not removing your shoes before entering.

 

2. Saudi Arabia

You want to hire a car to tour the country. Is this permitted?

a) Yes, but you must take a test first.

b) Yes, but only if you’re male.

c) No – tourists have to travel by camel.

3. Finland

You’re planning to relax in a Finnish sauna. What should you wear?

a) Nothing.

b) A towelling robe.

c) A bath hat.

4. Nepal

While trekking you want to photograph local villagers. Is this allowed?

a) Yes – the Nepalese love being photographed.

b) No – their religion forbids it.

c) Yes, but you must ask permission first.

5. Cyprus

On a village tour, a local offers you a glyko. Should you

a) Eat it – it’s a dessert.

b) Ride it – it’s a type of bicycle.

c) Wear it – it’s a traditional hat.

6. Morocco

You’d like to visit some mosques but are you allowed to go inside?

a) Yes, but you have to take your shoes off.

b) Yes, you don’t have to take your shoes off.

c) You mustn’t enter unless you are a Muslim.

7. Sweden

You go out for a meal. How many glasses of wine can you drink before driving back to your hotel?

a) Two.

b) Any amount – there are no drink-driving laws.

c) None.

8. Spain

You’d like to sample the local cuisine. How late can you eat?

a) You have to finish your meal by 9 p.m. Restaurants close early.

b) Spanish restaurants stay open all night.

c) You can eat very late. Spaniards often eat after 11 p.m.

9. Thailand

On a bus, the only free seat is next to a Buddhist monk. Should you take it?

a) Yes, but only if you’re male.

b) Buddhist monks aren’t allowed to travel by bus.

c) Yes, but you must bow first.

 

10. Italy

You’d like to visit the duomo (cathedral) on a hot day. To show respect, what should you cover?

a) Your guidebook.

b) Your thighs and shoulders.

c) Your head and ears.

11. USA

While peacefully drinking a can of beer in Central Park, you are approached by the police. Why?

a) It’s forbidden to drink alcohol in Central Park.

b) You are required to use a glass or straw.

c) You aren’t allowed to drink alcohol in Central Park unless the can is covered.

12. Singapore

You offer a piece of chewing gum to your tour guide. Why does she look shocked?

a) Because chewing gum is forbidden by law.

b) Because tour guides aren’t allowed to accept gifts.

c) Because chewing gum is given to animals.

13. India

An Indian friend invites you to a traditional meal. How should you eat?

a) With your left hand only.

b) With your right hand only.

c) With both hands.

14. Japan

The International Manager

In recent years, many companies have expanded globally. They have done this through mergers, joint ventures and co-operation with foreign companies. Because of this globalisation trend, many more employees are working abroad in managerial positions or as part of a multicultural team.

Although it is common nowadays for staff to work abroad to gain experience, many people have difficulty adapting to the new culture. The failure rate in US multinationals is estimated to be as high as 30% and it costs US business $3 billion a year.

Two typical failures have been described in the journal Management Today. The first example concerns a German manager with IBM who took up a position as product manager in England. He found that at most lunchtimes and especially on Fridays, many members of staff went to the pub. ‘I stopped that right away,’ he says. ‘Now they are not allowed off the premises. It didn’t make me very popular at the time but it is not good for efficiency. There is no way we would do that in Germany. No way.’

The second example is about an American manager who came to France on a management assignment. He was unable to win the trust of his staff although he tr ied all kinds of ways to do so. He set clear goals, worked longer hours than everybody, participated in ill the projects, visited people’s offices and even took employees out to lunch one by one. But nothing seemed to work. This was because the staff believed strongly that the management were trying to exploit them.

The German manager's mistake was that he hadn't foreseen the cultural differences. IBM had a firm rule about drinking during working hours. It was not allowed. He didn't understand that staff in other countries might be more flexible in applying the rule. The American manager used the ways he was famil­iar with to gain the staff's trust. To them, he seemed more interested in getting the job done than in developing personal relationships. By walking around and visiting everyone in their offices, perhaps he gave the impression that he was 'checking up' on staff. His managerial approach strengthened their feeling of exploitation.

When managers work in foreign countries, they may find it difficult to understand the behaviour of their employees. Moreover, they may find that the techniques which worked at home are not effective in their new workplace.

From Managing Across Cultures by Schneider and Barsoux

 

Exercise 6. Read and translate the article.

Negotiating by e-mail

Who has not types out an angry reply to an e-mail message, hit the send button – and then regretted it? Surely no technology has led to so many conflict and lost friendships as electronic mail. But nowhere is e-mail more dangerous than in negotiations.

Experiments by Michael Morris, an academic at Stanford Business School, and a group of colleagues have now demonstrated what many people have always thought: negotiations are more likely to go well if they are conducted, at least in part, face-to-face, rather than between strangers with keyboards and screens. E-mail is not necessarily a bad way to negotiate, but the research suggests that it needs to be used carefully.

Together with Leight Thompson, of the Kellogg Graduate Business school at Northwestern University, and several other academics, Mr Morris studied mock negotiations that used only e-mail and compared them with ones where there was a brief getting-to-know you telephone call before the negotiations. The second type went more smoothly. Other experiments found that electronic negotiations were easier when the negotiators began by swapping photographs and personal details, or when the already knew each other.

From The Economist

Exercise 7. Read these notes on US business protocol. How does each piece of advice compare with the situation in your country?

US business protocol

Timing You must arrive at business meetings on time. Only a 15-minute delay because of traffic problems is allowed.

Greetings and polite conversation You must shake hands during introductions.

You don‘t have to make a lot of talk. Americans like to get down to business quickly.

You mustn‘t ask about a businesswoman‘s marital status. It is considered rude.

Busines cards You don‘t have to exchange business cards unless there is a reason to get in contact later.

Smoking You musn‘t smoke in many public spaces. Most businesses, cabs and many restaurants nowadays have a no-smoking policy.

Gift-giving Business gifts shouldn‘t be given until after the business negotiations are over.

You musn‘t give expensive business gift. It may cause embarrassment.

Entertaining at home You should write a short thank you note to your host and hostess if you are enertained at their home. You don‘t have to give a gift but flowers or wine are appreciated.

From Do‘s and taboos around the world, edited by Roger E. Axtell

 

Exercise 8. Write notes on business protocol in any English-speaking country or Russia. Use the US business protocol from Exercise 5 as a sample.

 

Writing a Letter

СПРАВОЧНАЯ ИНФОРМАЦИЯ

Виды делового общения

Наиболее распространенными способами делового общения являются деловое письмо (сообщение по электронной почте как его разновидности), телефонный разговор и деловая беседа во время личного контакта с заинтересованным лицом. Написание делового письма и проведение телефонного разговора в англоязычных странах имеют свои особенности. Ниже излагаются особенности этих видов делового общения.

 

Деловое письмо

Прежде всего, следует иметь в виду, что сегменты такого письма и их расположение на листе бумаги существенно отличатся от того, что считается нормой для русского делового письма.

Адрес отправителя, если отсутствует типографским способом выполненная «шапка» наименования фирмы ее адреса и телефонов, печатается в верхнем правом углу бумаги (если речь идет о деловом письме в Англии) или в нижнем левом углу американского делового письма. Ниже адреса отправителя пишется дата отправления. Несколько ниже, в левой части листа пишется адрес получателя. Далее располагается обращение к получателю письма. Если получателем является известное лицо, то обращением к нему будет выражение Dear Mr. Smith или Dear Ms Johnson. Если же получателем является организация (конкретный сотрудник ее неизвестен), то в таком случае обращением будут выражения Dear Sir, Dear Madam, Dear Sirs, Gentlemen.

Далее идет содержание письма. После изложения сути письма следует его финальная фраза типа: We look forward to hearing from you soon (Мы с нетерпением ждем Вашего ответа), I look forward to our successful cooperation (Я очень надеюсь на наше успешное сотрудничество), Your prompt reply will be appreciated (Мы будем благодарны за быстрый ответ), If I may be of any assistance, please don’t hesitate to contact me (Если Вам потребуется моя помощь, то непременно сообщите мне). После такой фразы следует английские эквиваленты русского «С уважением такой-то»: Yours sincerely John Brown или Yours faithfully Tom Bryan.

Если в конверт вкладываются еще какие-то документы, то после подписи отправителя пишется слово Enclosures или, сокращенно, Enc., означающее «вложения» с указанием количества страниц.

Таким образом, деловое письмо будет выглядеть следующим образом.

 

 

Bob Simpson

25 Baker St

London W25

 

12 October, 2011

 

Texto Co.,

24 Bridge Walk

London

 

Dear Mr. Smith,

In reply to your letter of 2^nd October we would like to let you know that….

………………………………………………………………………………

……………………………………………………………………………..

We look forward to hearing from you soon.

Yours sincerely

 

Bob Simpson

Sales manager

 

Enc.: Specification (3 pages)

 

Типы деловых писем

По своему содержанию деловые письма могут быть:

- запросом, т.е. письмом, содержащим запрос на какую-то информацию (inquiry);

- предложением, т.е. изложением какого-то товара, услуги и т.п. (offer);

- заказом, т.е. сообщением о готовности приобрести какой-то товар, получить какую-то услугу и.т.п. (order);

- рекламацией или жалобой, т.е. сообщением о каком-либо дефекте, недостаче, получении некачественного товара и т.п. (complaint);

- подтверждением получения какого-либо письма, сообщения, посылки и т.п. (confirmation);

- заявлением о приеме на работу, т.е. сообщением о готовности участвовать в собеседовании в связи с объявленной вакансией (application):

Существуют, разумеется, и некоторые другие типы писем, но изложенные выше являются наиболее часто встречающимися.

Для каждого типа письма характерны свои типы выражений и фраз-клише, которые должны быть усвоены учащимися, поскольку правильно составленное и содержащее соответствующие выражения письмо создает благоприятный образ об его отправителе.

Далее предлагается перечень выражений, характерных для деловых писем на английском языке.

This is to inform you that…	Сообщаем Вам, что…
This is to let you know that…	Сообщаем Вам, что…
We are happy to inform you…	Мы рады сообщить, что…
In reply to your letter of 12^th May we…	В ответ на Ваше письмо от 12 мая
We thank you for your letter dated 12^th May	Мы благодарим Вас за Ваше письмо от 12 мая
Further to our letter of 12^th May we…	В дополнение к нашему письму от 12 мая мы…
We thank you for the letter dated…	Благодарим Вас за письмо от…
I regret to have to remind you that…	Сожалею, что приходится напомнить Вам, что…
We are sorry to inform you that…	С сожалением сообщаем Вам, что…
We are pleased to have your letter dated…	Мы рады получить Ваше письмо от…
It is a pleasure for us to have the opportunity to supply you…	Мы рады представившейся возможности поставить Вам…
We have decided to place a trial order with you	Мы решили разместить пробный заказ у Вас
We are happy to establish business relations with you	Мы рады установить деловые отношения с Вами
We could place an order with you if you reconsider your prices and reduce them by at least 10 percent	Мы бы могли разместить у Вас заказ, если Вы пересмотрите Ваши цены и сократите их, по крайней мере, на 10%
This is to acknowledge your letter of…	Подтверждаем получение Вашего письма от…
We are happy to have your order for…	Мы рады получить от Вас заказ на…
We confirm delivery of … by…	Мы подтверждаем поставку … к (дата)
It is a pleasure to have the opportunity of supplying you…	Для нас удовольствие иметь возможность поставить Вам…
I regret to have to remind you that…	Сожалею, что приходится напомнить Вам, что…
We are sorry to inform you that…	Сожалеем, что приходится сообщить Вам, что…
We regret to inform you that you have supplied us goods below the standard we expected	Мы сожалеем, что приходится сообщить Вам, что Вы поставили нам товары ниже того качества, которое мы ожидали
We cannot make use of the goods supplied and are very sorry to have to return them	Мы не можем воспользоваться поставленными товарами и очень сожалеем, что приходится вернуть их
If you cannot deliver the goods within the next 10 days we shall have to cancel the order	Если Вы не сможете поставить товары в пределах следующих 10 дней, нам придется аннулировать заказ

Exercise 1. Here is a typical layout of a simple commercial letter. Use the twelve different parts shown to put together the letter below.

e.g. 12 = a

1. Letterhead

2. References

3. Date

4. Addressee’s name and address

5. Salutation

6. Subject line

7. Body of letter

8. Complimentary close

9. Signature

10. Company position

11. Enclosure

12. Copies

 

a. c.c. Martin Naylor,

International Holdings, Singapore

b. Yours sincerely,

c. J.Hardy

Janet Hardy

d. 23 June 1992

e. Dear Mr Mexford,

f. Enc. Managing Director’s itinerary

g. Due to a change of programme, Mr Gilbert Smethers will not be arriving in Singapore on 18 July and not 16 July as originally planned. Would it be convenient to re-schedule your meeting with him for 19 July at 10.30 a.m.? Please contact our agent, Martin Naylor, to confirm that this possible or to suggest an alternative time.

Анкета

Проанализируйте анкету (curriculum vitae или CV) Барбары Брайан, обращая внимание на особенности анкеты на английском языке.

Данную анкету мы разделили горизонтальными линиями, чтобы выделить различные ее части. Сначала идут так называемые персональные данные (имя, фамилия, адрес, телефон, электронная почта). Затем указываются учебные заведения, оконченные кандидатом. Далее – раздел о профессиональном опыте претендента, т.е. указание на компании, в которых работал кандидат. Затем указываются практические навыки в области компьютера и иностранных языков. Последний сегмент анкеты – указание поручителей или лиц, которые могут дать рекомендательное письмо. В некоторых случаях в анкету добавляется еще один сегмент – увлечения кандидата в свободное от работы время. Его помещают перед поручителями.

 

Exercise 9. Study the CV carefully to see how Barbara presents the information about herself. Where do you think each of the headings should be placed? Are CVs in your country presented differently?

 

References Personal details Education

Skills Professional Experience

 

1 ____________________________________________________________

Barbara Bryan

27 Baker Street

London HW 15

Phone: [phone]

E-mail: [e-mail]

 

2 _____________________________________________________________

2008-2011 University of London

Diploma in Public Relations

 

2006-2008 Marton Colledge, Brighton

Journalism and Media Studies

 

3 _______________________________________________________________

2006-present Public Relations Officer, Nexto, Co.

Responsible for preparing newspaper articles on the

activities of Nexto, Co.

 

2004-2006 Press Officer, Highlands Tourist Company

Preparation of promotional material, media coverage

of the company

4 ______________________________________________________________

IT Office 2008, Windows NT, Excel, Internet

Languages English, French, Russian (mother tongue)

5 ______________________________________________________________

 

Marx Williams Professor of Journalism University of London

Rebecca Abramson Tourism Editor The Glasgow Tribune

 

Exercise 10. Study the information about letter of application. Read the letter of application and underline the words which could be useful for your own letter of application.

Письмо-заявление

27 Baker Street

London HW 15

 

24^th May 2011

John Smith

Glaxton, Ltd.

Edinburgh

EH2 5LM

UK

 

Dear Mr. Smith,

 

Although I am presently employed by Exton Company, it has always been my intention to work for a company of international scale and prestige. I would be particularly happy to have the chance to work for your company.

 

I am writing to apply for the position which was advertised in The Independent.

My previous employment has made me familiar with many of the challenges involved in the kind of work your company is interested in. But I am sure that my professional experience, together with my understanding of the needs of your company, will enable me to meet your corporate needs.

 

I would be happy to discuss my curriculum vitae with you in more detail at the interview. I am ready to attend the interview at any appropriate time.

 

Yours sincerely

Barbara Bryan

 

Exercise 11. Write your own CV and Letter of Application.

 

 

Telephoning

Успешный разговор по телефону в зарубежной стране предполагает знание соответствующих слов и выражений, используемых в данной ситуации. Прилагаемый текст и диалог позволят учащемуся освоить необходимый минимум этих слов и выражений.

Exercise 1. Read and translate the following text.

Making a phone call

In order to make a phone call from a pay phone in Britain, fist of all you have to decide on how you will pay for the call because there are several options at your disposal. You may do it by inserting some coins into the slot if you are using cash, by inserting the phone card you have previously bought or you can make use of your credit card. Once you have decided on the way you are going to pay, you must pick up the receiver, then you dial the number wanted by pressing the buttons on the telephone. If you hear a frequent high tone buzzing it means that the line is engaged. Hang up and your coin or coins will be returned. Then try again. If you hear a prolong buzzing it means that your call has been put through and your number will answer in a moment.

If you make a call to a company you may hear the operator calling ‘Number, please?’ or ‘What can I do for you?’ or ‘Who do you want to speak to?’ Then you either tell the operator the extension number or say ‘Hello, can I speak to Mr. Smith?’ If your line is engaged the operator will ask you if you wish to hold, and when the line is free the operator will connect you by saying ‘Go ahead. You are through’ or simply ‘Putting you through’. When your conversation is over you hang up by putting the receiver back in position on the telephone.

 

Exercise 2. Put the lines of the dialogue in the correct order. The first and the last lines are given.

Dialogue over the telephone

Barbara Bryan: Is this Glaxton, Ltd.?

…

…

…

Operator: Then it’s OK. Wait for the secretary. She is going downstairs right now.

 

a) Operator (O.): Yes, you are right. What can I do for you?

b) O.: Unfortunately, he’s not in now. He’s in conference. Would you mind calling in half an hour or would you like to leave a message?

c) O.: Ah, there’s no problem then. Where are you speaking from?

d) Barbara Bryan (B.B.): I would like to speak to Mr. Smith.

e) O.: I mean your CV and your references.

f) B.B.: I’m downstairs, in your lobby.

g) B.B.: You see, I was speaking with Mr. Smith the other day about your post of Public Relations Officer advertised in The Independent and he asked me to come to the interview today at 10.30.

h) B.B.: Yes, I have.

i) O.: OK then. Please, stay there two or three minutes, and Mr. Smith’s secretary will meet you and will take you to the place where the interview will take place. By the way, have you brought your documents?

j) B.B.: What do you mean?

 

Exercise 3. Here are two telephone conversations. Choose the best word from the brackets to complete each sentence.

Conversation 1

- Good morning. This is Pierre Cognet. Could I (tell/speak/phone) to Mr roberts, please?

- I’m (afraid/scared/unfortunate) he’s in a meeting.

- Ah. Could I (ask/send/leave) a message?

- Of course.

- Could you ask him to call me (back/down/round)? My number’s 33-1-4776-5821.

- OK. I’ll tell him you called.

- Thank you.

 

Conversation 2

- Hello. Is this Sven Anderson?

- No. Sven’s not in the office today. Can I (make/take/place) a message?

- Oh, I’m calling (about/for/to) tomorrow’s meeting. I wanted to confirm that it starts at 10.

- Yes, it does. I’ll be there too.

- Ah, good. Thank you. I’ll see you tomorrow then. Bye.

- See you tomorrow. Bye.

 

ПО ЭКОНОМИКЕ

Before reading the texts, do the following exercise to pick up some economic terms.

Match the words on the left with the correct definition (a-l).

1) Central bank	a) Education and skills development for young people and the unemployed
2) Exchange rate	b) The part of the economy that does not make goods, also known as the tertiary sector.
3) Inflation	c) The money a government needs to borrow to pay for what it does.
4) Interest rate	d) The value of a currency against other currencies.
5) Invisible earnings	e) The annual cost of borrowing money from a bank.
6) Manufacturing industry	f) A measure of retail price interest.
7) National debt	g) The principal national banking authority.
8) Public sector borrowing requirements	h) The part of the economy that makes products and changes raw materials into products.
9) Public spending	i) The number, or percentage, of people out of work.
10) Service sector	j) Government spending
11) Training	k) The total amount of money that a government owes.
12) Unemployment rate	l) Income in foreign currency for services such as banking, insurance, tourism.

Look through the texts and try to render them either in Russian or in English.

Economics

Alfred Marshall defined economics as the study of mankind in the everyday business life. There are other definitions too. But Marshall’s definition draws attention to that unique feature of human society: that unlike other animals, man provides for his everyday needs by means of a complex pattern of production, distribution and exchange.

We need food, clothes and shelter. If we could get them without working, we probably would not work. But even when we have these essential things, we may want other things because they might make life more enjoyable. The science of economics is concerned with all that man produces and not just our basic needs like food, clothes and shelter.

This everyday business of providing the means of life is called by the general term ‘economy’. And economics may study economies of man at different stage of his historic development. But it is the advanced economies that interest us most. Apart from production, distribution of products among various groups in society and exchange, it studies the institutions created by man to promote economic development.

Economics is the study of economies. The science of economics is concerned with all that man produces and not just our basic needs like food, clothes and shelter. The science of economics is based upon the facts of our everyday lives and the general life of our communities. If we want to understand the whole economic system of which we are part we have to study carefully the economic activity of the society

Apart from production, distribution of products among various groups in society and exchange, economics studies the institutions that were created by man to promote economic development.

Economists are those who observe and study economic facts and produce economic theories. They try to describe the facts of the economy in which we live, and to explain how it all works. The economist’s methods should be strictly objective, if it is to be scientific. In order to understand the evolution of economy economists must study economies of man at different stages of his historic development. They studied primitive economies, economies of the ancient and the middle-age societies. But their main interest is being focused on the economy of the advanced industrial countries. It is not in good shape to-day. It is characterized by a low growth rate, unstable monetary system, stagnation of the employees’ income and rather high unemployment.

 

Economic Activity

Most people work to earn a living, and produce goods and services. Goods are either agricultural (like milk, vegetable fruit) or manufactured (like pen, paper, and cars). Services are such things as education, medicine, and commerce. Some people provide goods, some provide services. Some other people provide both goods and services. For example, in the same garage a man may buy a car or some service, which helps him to maintain this car.

The work people do in exchange for payment is called economic activity. All economic activities together make up the economic system of a town, city a country, of the world. Countries differ in their economic activities. Countries producing manufactured goods are in a more favourable position on the world markets than those producing only raw materials and farm products.

The work people undertake either provides them with what they need or provide the money with which they can buy essential commodities. Of course, most people hope to earn enough money to buy commodities and services, which are non-essential, but which provide some particular personal satisfaction, like books, visits to the cinema, trips, etc.

 

Economies

There are two extreme forms of economic arrangements of the economic activity: privately owned economy and State-owned one. The former is often called as ‘free market economy’, the latter is associated with the term ‘command economy’. This type of economy dominated in the former socialist countries.

Complete freedom of economic action can create difficulties, because the freedoms of various individuals often conflict. Complete freedom can bring about harmful effects on the environment, both natural and social. Laws created to regulate economic activity are concerned with working conditions, worker’s health, wages, pensions, and location of places of work. Complete freedom can also bring about harmfull effect onthe environment, both natural and social.

Even the most dedicated free enterprise systems, such as the USA, have felt a need for some degree of State control of the economy. Some developing countries are interested in control and log-term planning. Such countries as India have a number of plans guided by the government. Such systems where both private and public sectors coexist are often called as countries with mixed economy.

 

Factors of Production

Production is the means whereby resources are organized to produce the goods and services which people require for the satisfaction of their wants. In today’s world an increasing number of people are employed in the service industries such as banking, leisure, finance and administration. But the most productive employment of the labour force is in the so-called information sector of the economy.

In order to achieve production, inputs of factors of production are normally necessary. The latter are divided into land, labour and capital.

Land is regarded as a ‘gift of nature’, including any valuable mineral deposits. It is also the basic space requirements within which factories may be sited, foodstuffs grown, or services provided.

Labour constitutes an essential element in all forms of production. It represents all forms of work or human effort, both manual and mental.

 

Wages and Salaries

The main forms of payment to employees are wages and salary. Wages are usually paid as a certain sum of money per hour to manual workers, while a salary is a fixed sum, which may be paid monthly to non-manual staff. With the development of the economy more and more people work as employees, not as employers.

As for wages they are usually on a basic time rate, often agreed by negotiations between trade unions and management. Pay is expressed as an hourly rate. In addition, there may be supplements earned, such as overtime payments, danger money or dirty money for work in exceptional circumstances.

A salary is usually expressed as a fixed annual sum, and it is not usual to supplement it, although certain additional benefits may be provided. These are called ‘fringe benefits’ or ‘perks’. They are normally benefits of goods or services such as a company car, membership of a private health scheme, or a company’s own pension fund. In order to attract right people to a job a firm may offer help removal expenses or to provide a low-interest mortgage for house purchase. Recently profit sharing has become popular in recruiting and keeping staff.

People in Employment

If an offer of employment is received and is accepted, the employee and the company for which he or she is to work conclude a contract of employment. The contract specifies the terms and conditions governing employment. It normally includes such items as pay per hour, hours of work and pensions.

If either the employer or the employee is not satisfied the contract of employment can be brought to an end. The period of notice is usually contained in the contract. If it comes to such cases as dishonesty, serious neglect of duties or absence without good reason, an employee will be dismissed without notice. If an employee feels that he or she has been dismissed unfairly, he or she can bring a complaint before an industrial tribunal. The employee will be reinstated to the job or awarded compensation provided the dismissal is found as unfair.

If an employee became redundant as a result of the firm’s closure the redundant employee would become entitled to redundancy pay. And it would depend upon the employee’s age and length of service.

Those who are employed in civil service, that is in government or public administration, they feel more secure in their employment. The reason is that the number of people working in the public sphere is not reduced but steadily increases. Their job in administration is organized in a hierarchy (i.e., on different levels of seniority). They are given more authority and material rewards as they rise from bottom to the top of the hierarchy. Appointments and promotions are made on the basis of experience and qualification. However, there are disadvantages to government work. The material rewards are often less generous than those offered by private companies.

A working life normally ends in retirement. The retirement age varies from county to county. But in all advanced industrial countries it is much higher than in Russia. The difference amounts to 5 – 7 years.

 

Economic Theories

Alexander came to London to study economics. Now that he has returned home he is ready to apply his knowledge in his practical work in Russia. Before coming to London he was sure that market economy was a magic arrangement enabling to solve all economic problems which arise in society. He also knew that economics was a science producing accurate understanding and explanation of the workings of the economy. But now he knows that there are a lot of conflicting sociopolitical theories on many issues which are covered by economics. He was taught that the most persistent debate in economics had focused on the degree to which the government was able to improve the economy’s performance. And he was informed that none of the competing theories had performed spectacularly well. Indeed few economists have successfully predicted major economic events. Even annual forecasts of inflation, unemployment and output are regularly in error. He also learnt that there were never-ending arguments about, for example, what had caused such dramatic world event as the Great Depression of the 1930s.

Two hundred years ago, Adam Smith convinced most of the world that economy worked best when it was left alone. During the years of the Great Depression the British economist John Maynard Keynes forced people to rethink that conclusion. He convinced people that active government intervention in the market place was the only way to ensure economic growth and stability. For nearly thirty years this theory dominated the economics profession and public policy. And for thirty years the economy of the industrial countries displayed the longest economic boom in the history of these countries. In the early 1970s, when the economy of all industrial countries was performing badly, most of the economists were sure that Keynes’ theory would be abandoned. Since 1980s, Milton Freedman’s monetarist theory was adopted as a guide-line to run the economies of the industrial countries.

Since M.Thatcher in Great Britain and R.Reagan in the USA this theory began to be implemented in these two countries. Later it was expanded to the rest of the industrial world, although with differing degrees. As unemployment and inflation rate began to decline, supporters of this theory claimed victory. But critics pointed to the problems of poverty, homelessness, budget deficits and inadequate public services. And they emphasized that there were no signs of improvement.

 

Production

Production is the means whereby resources are organized to produce the goods and services which people require for the satisfaction of their wants. In today’s world an increasing number of people are employed in the service industries such as banking, leisure, finance and administration, rather than in the manufacturing sector. In order to achieve production, inputs of factors of production are to be used. The latter are divided into land, labour and capital.

Land is regarded as a ‘gift of nature’. It includes any valuable mineral deposits. It is also the basic space requirements within which factories may be sited, foodstuffs can be grown, or services can be provided.

Labour constitutes an essential element in all forms of production. It represents all forms human effort, manual and mental, skilled or unskilled which people must deploy.

Capital, in economic terms, may be defined as goods which can be used to produce other goods. Property such as factory buildings, machinery and raw materials are all forms of capital which are used in the process of production.

Production activities must be remunerated or paid. The main forms of payment to employees are wages and salary. Wages are usually paid as a certain sum of money per hour to manual workers, while a salary is a fixed sum, which may be paid monthly to non-manual staff.

As for wages they are usually paid on a basic time rate, often agreed by negotiations between trade unions and management. Pay is expressed as an hourly rate. In addition, there may be supplements, such as overtime payments, danger money or dirty money for work in exceptional circumstances.

A salary is usually expressed as a fixed annual sum, and it is not usual to supplement it, although certain additional benefits may be provided. These are called ‘fringe benefits’ or ‘perks’. They are normally benefits of goods or services such as a company car, membership of a private health scheme, or a company’s own pension fund. In order to attract right people to a job a firm may offer help removal expenses or to provide a low-interest mortgage for house purchase. Recently profit sharing has become popular in recruiting and keeping staff.

The CEOs, chief executive officers, are paid very high salaries. Their annual income, that is, salaries and perks can amount to numerous millions of dollars. We are informed by the Journal of Institutional Investor, an American publication of June 30, 2006, that J. Simon, the top-manager of the Renaissance Technology collected $1.5 billion in 2005, while his colleague from B.P.Capital Management Т.Pickens made $1.4 billion. It should be emphasized that these huge incomes produced public outcry among the shareholders of the respective companies. A number of Congressmen even introduced a bill against this kind of abuse.

Economic Activity

Most people work to earn a living, and produce goods and services. Goods are either produced in the agricultural sector (like milk, vegetable, fruit) or manufactured at plants and factories (like pen, paper, and cars). Services are such things as education, medicine, and commerce. They are provided by people who are called employees. Some people provide goods, some provide services. Some other people provide both goods and services. For example, in the same garage a car can be bought or some service can be obtained in order to maintain this car or to repair it.

The work people do in exchange for payment is called economic activity. The economic system of a town, of a city, of a country, of the world is made up of all economic activities together of these respective communities. Countries differ in their economic activities. The work people undertake either provides them with what they need or provide the money with which they can buy essential commodities. Of course, most people hope to earn enough money to buy commodities and services, which are non-essential, but which provide some particular personal satisfaction, like books, visits to the cinema, trips, etc.

There are two extreme forms of economic arrangements of the economic activity: privately owned economy and State-owned one. The former is often called as ‘free market economy’; the latter is associated with the term ‘command economy’. This type of economy dominated in the former socialist countries. If complete freedom of economic activity is allowed this can create difficulties, because the freedoms of various individuals or individual companies often conflict. Laws have been created to regulate economic activity, and they are concerned with working conditions, worker’s health, wages, pensions, and location of places of work.

Even in the most dedicated free enterprise systems, such as the USA, a need for some degree of State control of the economy has been felt. Some developing countries are interested in control and log-term planning. Such countries as India have a number of plans to guide the economy. They are enacted by the government. Such systems where both private and public sectors coexist are often called as countries with mixed economy.

 

How Pensions Work

A pension is basically a long-term savings account, which you can access after your retirement. Every year you delay taking out a pension, you could be substantially reducing your security and standard of living in the future, because pension investments grow over time.

Before committing to a pension, think carefully about the lifestyle you want when you retire and calculate how much you can afford to contribute towards your pension fund each month. You'll also need to take into account when you want to retire and whether you have income coming from other sources.

Pension types explained

There might still be a state pension in 40 years, but don't expect it to cover a life of luxury. The current basic state retirement pension is only £77.45 per week for a single person. That's why you should consider joining a company pension or investing in a personal pension plan or stakeholder pension. Here are some of the most popular options:

Company Pensions: If you have the chance to join one, this is generally considered the best option because your employer picks up most or even all of the cost of providing the scheme. Sometimes, the company may even contribute towards your pension. There are two kinds of company pensions, Money Purchase and Final Salary. In addition, your company may also give you the option of making an Additional Voluntary Contribution (AVC).

Personal Pension Plan (PPP): A good personal pension plan will give you the option of retiring when you want to - usually any time between the ages of 50 and 75 - without penalties. It will also allow you to be flexible in phasing out your work gradually, rather than stopping suddenly. And it should allow you to reduce or suspend your contributions if needed. PPPs are a useful option if you move jobs frequently or are self-employed.

Stakeholder Pensions: The government launched this scheme primarily for people who don't have access to a company pension plan and for whom personal pensions are unsuitable - in other words, those on low incomes. But, in fact, all sorts of people can make use of them. Essentially, stakeholder pensions are simplified, cheaper versions of personal pensions, and providers aren't allowed to charge anything other than an annual management fee, capped at 1 per cent. Employers that don't offer a company scheme must give employees access to a stakeholder pension scheme, though they don't have to contribute. Flexibility is a key feature - you can transfer to another scheme at no cost (helpful if you switch jobs regularly) and you can stop, start and vary contributions without any penalties.

 

Choosing A Mortgage

Buying a house is the biggest investment you're ever likely to make, so it's important to get all the information you need on mortgages and legal matters before you start. Here we take a look at the basics, from how much you can borrow to choosing the right mortgage for you.

When you do feel ready to take on the responsibility of buying your own home, you need to choose your mortgage carefully and shop around for the best deal to suit your needs.

There are dozens of different banks, building societies and other finance companies willing to lend mortgages and hundreds of different types of home loans on offer. So, before you even start looking for a property, it’s a good idea to find out as much as you can about mortgages and to consult different lenders about the amount you could borrow and the deals they offer.

Most lenders will be prepared to lend you up to around three times your annual earnings, depending on your financial commitments. If you want to take out a joint mortgage with your partner or someone else, you can usually borrow three times the highest earner’s income plus once the other income, or up to two and a half times the joint income.

Your main mortgage options:

An important decision is whether to choose a repayment mortgage or an interest-only mortgage linked to a suitable investment.

With a repayment mortgage, each monthly payment you make to the lender repays part of the actual amount you borrowed (the ‘capital’ debt) plus part of the interest charged on the loan. This means that, bit by bit, you pay off everything you owe so you have the security of knowing that, by the end of your mortgage term, you will have paid off the mortgage in full. Repayment mortgages are likely to suit you best if you want the simplest, least risky type of mortgage arrangement.

With an interest-only mortgage, all you pay the lender each month is the interest on the loan. You don’t pay off any of the capital debt as you go along, so the size of your mortgage stays the same right until the end of your mortgage term. This means that it is up to you to find a way of paying off the capital debt at the end of the term. There are a number of options for this, one is to make another payment each month into some kind of investment such as an endowment, which, at the end of your mortgage term can be used to pay off your mortgage. There is a risk, however, that your investment will not grow sufficiently to pay off your entire loan, so you have less certainty than with a repayment mortgage.

 

Management Styles

In many management text books the three most talked about management styles are democratic, autocratic and consultative. Selecting the correct management style may lead to greater motivation and productivity from your staff. However, it is not as easy as just 'picking' a style. Managers’ personalities and characteristics will influence the type of style adopted. For example a timid manager will find an autocratic management style difficult to adopt.

Democratic Management Style

A democratic manager delegates authority to his/her staff, giving them responsibility to complete the task given to them (also known as empowerment). Staff will complete the tasks using their own work methods. However, the task must be completed on time. Employees are involved in decision making giving them a sense of belonging and motivating individuals. Because staff feel a sense of belonging and are motivated the quality of decision making and work also improves. Although popular in business today, a democratic management style can slow decision making down because staff need to be consulted. Also some employees may take advantage of the fact that their manager is democratic by not working to their full potential and allowing other group members to 'carry' them.

Autocratic Management Style

In contrast to the above an autocratic manager dictates orders to their staff and makes decisions without any consultation. The leader likes to control the situation they are in. Decisions are quick because staff are not consulted and work is usually completed on time. However this type of management style can decrease motivation and increase staff turnover because staff are not consulted and do not feel valued.

Advertising

Do you pay attention to advertisements? Probably you do, because advertising is a reflection of people's needs. Advertising makes promises to us, and we listen because we want to hear those messages. For instance, we might drink diet Coca-Cola "just for the taste of it," or Pepsi because we want to share "the choice of a new generation."

But advertising can be deceptive. When an aspirin manufacturer tells us "no other aspirin is better," we assume that brand of aspirin to be the best, unless we know that all aspirin is alike. As another example, I once bought a can of chocolate-flavored syrup only to find that it contained no chocolate; it contained only chemicals to make it taste like chocolate.

Childers and Houston (1984) compared the importance of pictures to words in advertising. When the experimenters asked the subjects to pay attention to the visual content of an ad, they remembered the name of the product better than when they were told to pay attention to the words. Color and repetition are also effective in getting people to remember a product, but are not always used (Lee & Barnes, 1990). On the other hand, sometimes advertisers put too much information into an ad and consumers have difficulty remembering it, a phenomenon called information overload (Jacoby, 1984).

Advertisers sometimes use very attractive, seductive, and sexually appealing models. Sex appeal is used to sell everything from automobiles to after-shave lotion and soft drinks. Most consumers (as well as advertisers) assume automatically that the use of sexually attractive models will enhance the success of a product. Actually, relatively few conclusive research results have been found about this issue.