Unit 1. History of economics

Введение

Учебно-методическое пособие по английскому языку разработано для студентов по специальности 080110 «Экономика и бухгалтерский учет (по отраслям)». Пособие предназначено для студентов, обучающихся на 4 курсе, владеющим основами нормативной грамматики, имеющим определенный запас общеупотребительной лексики и направлено на углубление знаний языка непосредственно по специализации (повышенный уровень).

Пособие включает тексты, содержание которых дает понятие об экономике как науке, освещает основные проблемы в мире экономики и финансов, торговли и производства, банковской структуре, становлении и современном состоянии экономики некоторых англоязычных стран. Проблемный характер текстов является стимулом для дискуссии в сту­денческой аудитории. Максимальное количество современных терминов и единиц вокабуляра направлено на обогащение словарного запаса студентов и закрепление изученной лексики.

Учебное пособие содержит информацию, подобранную с учетом тех знаний, которые студенты получают в процессе обучения других дисциплин таких как «Экономическая теория»; «Социология»; «Документационное обеспечение управления»; «Экономика организации»; «Бухгалтерский учет»; «Финансы, денежное обращение и кредит», «Налоги и налогообложение».

Все тексты дополнены упражнениями, направленными на закрепление пройденного материала. Упражнения на нахождение соответствия экономических терминов и их определений, подстановочные задания, подбор синонимов и антонимов, выбор необходимого по значению слова и т.п. Задания направлены на расширение и закрепление у студентов лексического запаса в сфере бизнеса. Для активного усвоения составителем отобраны слова и словосочетания нейтрального разговорного стиля, характерные для речи современных носителей английского языка.

Грамматические упражнения способствуют закреплению активного владения грамматическими конструкциями, необходимыми как в устной, так и в письменной речи. В данное пособие включены упражнения на времена английских глаголов, модальные глаголы, предлоги и др.

Структура пособия подразумевает как аудиторную, так и самостоятельную работу, направленную на обучение студентов работе со словарем, приобретение навыка составлять краткие письменные и устные сообщения.

Для контроля знаний по всем темам разработаны тестовые задания.

Учебное пособие состоит из 16 тем.

Каждая тема включает:

1. Текст.

2. Упражнения на понимание текста.

3. Лексические упражнения по тексту.

4. Лексико-грамматические упражнения по теме.

5. Грамматические упражнения.

6. Тесты для контроля знаний.

 

Рекомендуется следующий порядок работы с учебным пособием:

1. Прочитать текст самостоятельно дома.

2. Выписать и перевести незнакомые слова; перевести весь текст,

3. На занятии проверить правильность перевода текста с преподавателем, выполнить упражнения и проверить правильность с преподавателем.

4. Решить тестовое звдание.

В зависимости от уровня группы и сложности текста преподаватель вправе менять порядок выполнения заданий. Способ выполнения упражнений (письменный или устный) также остается на усмотрение преподавателя. Рекомендуется регулярно проводить контрольные занятия, цель которых проверка усвоения новой лексики и выражения, а также анализ ошибок, допущенных студентами при выполнении всех заданий учебного пособия.

 

 

UNIT 2. THE ECONOMIC SYSTEM

When an artist looks at the world, he sees color. When a musician looks at the world, he hears music. When an economist looks at the world, he hears a symphony of costs and benefits.

D. Colander

There are many forms of economic order, ranging from the mixed private enterprise system to partially or completely controlled economies. Regardless of their form, however, economic system is the system that a society uses for allocation and distribution of scarce resources.

Private enterprise means that decisions about what and how much to produce are left to the discretion of owners and managers. In controlled economies such decisions are the responsibility of some governmental agency. There is, of course, no economy today that is completely free of governmental influence, nor is this condition necessarily undesirable. There are many beneficial services and protections available from government. The question then is a matter of degree. Irrespective of the form of economic order, it performs certain valuable functions in the life of organizations of all types.

Among the functions of the economic order the most important one is to provide some means of resource allocation. In a private enterprise this function is basically performed by the price mechanism. This simply means that demand for and supply of goods and services interact to set their market price. In the case of regulated utilities, there are governmental agencies such as pubiic service commissions that determine the rates that may be charged by utility companies. These rates are set at the level that will allow a fair return on investments made by the companies. This form of regulated monopoly is considered, on balance, preferable to unchecked competition. This is true because of efficiency reasons. In taking actions in the area of employment, government is attempting to control the economy in such a fashion as to help the business community operate at the level of production that will yield full employment.

Without a system of distribution economy simply could not exist. A major part of this distribution system is credit. Economy flourishes on credit or extended methods of payment. Such a system literally affects every link in the distribution chain from the supplier of raw materials to the ultimate consumer. Without this vital financing function being performed, the economy would doubtless be forced to a lower order of production.

Economic goals for a nation include price stability, full employment, economic growth, and equitable distribution of income. Price stability contributes to the efficient allocation of resources and facilitates long-term planning.

Full employment means that jobs are available for those seeking work. Higher standards of living require increased output per person (economic growth per capita). An equitable distribution of income means that the fruits of the economy are divided in a way that seems fair to the majority of the people. With the long-run trend toward a more sophisticated, highly integrated economic system, it is becoming increasingly important for an individual decision maker to be aware of the macro-economic environment.

EXERCISES

Exercise 1. Define the main idea of each paragraph.

Exercise 2. Answer the questions.

1. What is a system?

2. What are three main concepts of a system? What do they imply?

3. What is an economic system?

4. Who takes decisions in a private enterprise? In controlled economies?

5. What functions does economic order perform?

6. Why the economy could not exist without a system of distribution?

7. What are the economic goals for a nation?

8. What does price stability contribute to?

9. What does full employment mean?

10. What does high standard of living mean? An equitable distribution?

11. Why is it important for an individual decision maker to be aware of the macro-economic environment?

Exercise 3. Insert the word from the line.

Economic reform, Economic goals, economic growth, Institute of Economic Affairs, Economic order, economic policy, prime minister, economic climate (conditions), EMU Economic and Monetary Union, economic system.

1. Among the functions of the... the most important one is to provide some means of resource allocation.

2. Not many people approve of the current government's....

3... is needed to improve the economic situation in the country.

4. Most members of the... began using the new currency in 2002.

5. This yearthe specialists are expecting a fundamental reform of the country's....

6.... for a nation include price stability, full employment, economic growth, and equitable distribution of income.

7.... is slow.

8. In the current... we must keep costs down.

9.... is a British organization formed in 1957 to promote free market economics. Its ideas were popular with Margaret Thatcher, the Conservative... from 1979 to 90.

Exercise 4. Match each word with a word from the line as they are used in the text.

1. controlled

2. private

3. governmental 4 valuable

5. market

6. regulated

7. public service

8. efficiency

9. business

10. full

11. system of

12. equitable distribution of

13. price

14. efficient allocation of

15. long-term

16. high standards of

17. increased output per

18. the fruits of

19. macro-economic

20. long-run

21. decision

A. utilities

B. trend

C. person

D. economies E enterprise

F. commissions

G. price

H. functions

I. influence

J. distribution K. income L. reasons M. employment N. resources O. stability P. the economy Q. planning R. maker S. environment T. living U. community

 

Exercise 5. Insert the correct preposition where needed.

1. Mr Braley was aware... the need for absolute secrecy.

2. Animals communicate... various ways. 3 He had to retire because... ill health

4.... this case, several solutions could be tried.

5. The course is open to anyone, irrespective... age.

6. You can pay... cheque, assuming... course you have a valid cheque card.

7. The law requires equal treatment for all, regardless... race, religion, or sex.

8. This is an extremely unpleasant disease which is,... however, easy to treat.

9.... parts of Canada, French is the first language.

10. After the storm we were... without electricity for five days

 

UNIT 3. MONEY

Money is used for buying or selling goods, for measuring value and for storing wealth. Almost every society now has a money economy based on coins and paper notes of one kind or another. However, this has not always been true. In primitive societies a system of barter was used. Barter was a system of direct exchange of goods. Somebody could exchange a sheep, for example, for anything in the market place that they considered to be of equal value. Barter, however, was a very unsatisfactory system because people's precise needs seldom coincided. People needed a more practical system of exchange, and various money systems developed based on goods which the members of a society recognized as having value. Cattle, grain, teeth, shells, feather, salt, tobacco have been used. Precious metals gradually took over because, when made into coins, they were portable, durable, recognizable and divisible into larger and smaller units of value.

A coin is a piece of metal, usually disc-shaped, which bears lettering, designs or numbers showing its value. Until the eighteenth and nineteenth centuries coins were given monetary worth based on the exact amount of metal contained in them, but most modern coins are based on face value, the value that governments choose to give them, irrespective of the actual metal content. Coins have been made of gold (Au), silver (Ag), copper (Cu), aluminium (Al), nickel (Ni), plastic and in China even from pressed leaves. Gold proves to be the most popular. Since civilization began gold has been regarded as a symbol of power and wealth. In many societies gold was seen as a magic substance which could protect people against illness or evil spirits. Mankind never seems to have enough gold and the search for it has driven men mad. The need to search for gold has been compared to a disease, and is called "gold fever".

Most governments now issue paper money in the form of notes, which are really "promises to pay". Paper money is obviously easier to handle and much more convenient in the modern world. Cheques, bankers' cards, and credit cards are being used increasingly and it is possible to imagine a world where "money" in the form of coins and paper currency will no longer be used.

EXERCISES

Exercise 1.Write down the questions for these answers.

1. Money is used for buying or selling goods, for measuring value and for storing wealth.

2. In primitive societies a system of barter was used.

3. Barter is a system of direct exchange of goods.

4. Barter was not a very practical system.

5. Cattle, grain, teeth, shells, feather, salt, tobacco were used instead of money.

6. People started to make coins from precious metals because they were portable and durable.

7. A coin is a disc-shaped piece of metal.

8. Coins have been made of gold (Au), silver (Ag), copper (Cu), aluminium (Al), nickel (Ni), plastic and in China even from pressed leaves.

9. Gold is a symbol of power and wealth.

10. Gold fever" is the need to search for gold.

11. Paper money is more convenient then coins.

12. Cheques, bankers' cards, and credit cards are becoming very popular.

13. It is possible that one day "money" in the form of coins and paper currency will no longer be used

Exercise 2. Explain the meaning:

1. money economy

2. system of barter

3. precious metals are portable

4. precious metals are durable

5. precious metals are recognizable

6. precious metals are divisible into larger and smaller units of value

AMERICAN MONEY

American dollar is subdivided into one hundred cents. The dollars are issued by the Federal Reserve System, established by Congress in 1913. All the banknotes bear the words. In Cod We Trust.

On the face of American dollars one can see the portraits of the following famous persons:

George Washington (1732 -1799), the first President of the United States of America, who gave his name to the capital of the country George Washington became the first President after the successful war of 13 British colonies for

»

independence. After they won the war they formed 13 states and united to make the United States of America. Thus Independence was proclaimed on July 4,1776.

Abraham Lincoln (1809- 186§), who was President from 1861 to 1865 after the war between the northern and southern states. It was he who proclaimed freedom of slaves of the south.

Alexander Hamilton (1755 -1804), a famous American statesman, who fought in the Independence War together with General George Washington. Later he became the first Secretary of the Treasury.

Andrew Jackson (1767 - 1845), who was President of the USA from 1829 to 1837, when Texas won independence from Mexico.

Ulysses Grant (1822 - 1885), who was President of the USA from 1869 to 1877 when the Centennial Exposition was held in Philadelphia.

Benjamin Franklin (1706 -1790), a very popular public figure, writer, diplomat and scientist. It was he who invented bifocal spectacles among many other things.

On the back of banknotes various famous buildings are a lured, such as:

Lincoln Monument, one of the monuments in Washington.

US Treasury Building, in Washington.

White House, house of every President, except George Washington, who only planned the capital of the USA.

US Capitol, which houses the Senate and the House of Representatives

independence Hall, in Philadelphia, where Independence of the 13 British colonies was proclaimed.

EXERCISES

Exercise 1. Translate into English:

1. Именно он стал первым президентом страны.

2. Это его портрет изображен на оборотной стороне этой банкноты.

3. Именно в 1999 г. большинство стран Евросоюза перешли на евро.

4. В этой, да именно в этой стране началось производство стали.

5. Именно в Лондоне в 1851 г. проводилась первая всемирная выставка.

Exercise 2. Choose the correct voice form of the Verb given in brackets:

1. The American dollar (subdivides, is subdivided) into 100 cents.

2. The English pound (subdivides, is subdivided) into 100 pence.

3. The dollar (issues, is issued) by the Federal Reserve System.

4. On the back of many American banknotes various famous buildings (featured, are featured).

5. It was Abraham Lincoln who (proclaimed, was proclaimed) freedom of slaves.

6. All the banknotes (bear, are borne) the words «In God We Trust».

7. The Federal Reserve System (established, was established) by Congress in 1913.

8. Independence of the States (proclaimed, was proclaimed) on July4,1776.

Exercise 3. Sum up what the text says about:

the issuer of American dollar notes the inscription on the face

the famous buildings on the back American coins

Exercise 4. Write what you know about the famous persons, whose portraits are featured on the face of American dollars: George Washington, Abraham Lincoln and Benjamin Franklin.

Exercise 5. Say what is unscripted on the face and on the back of Russian banknotes.

ENGLISH MONEY.

In 2006 the official currency of the United Kingdom was still keeping the pound sterling but the possibility of joining the euro is being widely debated. The pound sterling is equal to one hundred pence.

English banknotes are issued by the Bank of England. As to coins they are minted also by this state bank.

There are banknotes of the following denominations:

J1 J20

J5 J50

J10 J100

On the face of English banknotes one can read the denomination given both in figures and in words. Then the inscription on the face of the banknote reads: I promise to pay the bearer on demand the sum of... And then there are two signatures. The first signature is that of the person authorized by the Government and the Bank of England. The second signature is that of the Chief Cashier.

The backs of English banknotes, like many other banknotes, feature portraits of different famous people.

Theone pound banknote, for example, features Isaac Newton (1642 - 1727), a well-known English scientist who made a few very important discoveries including gravitation law.

The back of the five pound note portrays the Duke of Wellington (1769 -1852), a famous Irish general who defeated Napoleon at Waterloo, Belgium in 1815.

On the back of the ten pound note one can see Florence Nightingale (1820 - 1910), founder of the nursing profession. She volunteered as a nurse to Turkey to take care of the wounded soldiers from Crimean War, war of England and France versus Russia.

And the back of the twenty pound banknote features Wiliiam Shakespeare (1564 -1616), the greatest playwright of all time.

EXERCISES

Exercise 1. Underline the Predicates, read and translate the sentences:

1. New coins are being minted in this country now.

2. Where are these banknotes being printed?

3. A new daughter company was being founded when he visited Newell Ltd. last year.

4. Are these products being widely sold throughout the world?

5. This product is being launched on the Russian market.

6. A very good exhibition is being held in Novosibirsk.

Exercise 2. Find the equivalents in the text:

1. Что же касается монет, то они....

2. На лицевой стороне можно увидеть....

3. На лицевой стороне написано....

4. Первая подпись - это подпись лица, уполномоченного прави­тельством.

5. На оборотной стороне английских банкнот, как и у многих других банкнот,....

6. На оборотной стороне изображен....

7. Банкноты достоинством один фунт....

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

1. What is the official currency of the UK?

2. What is the smallest unit?

3. How many pence are there in one pound?

4. What banknotes and coins are in circulation in the UK now?

5. Who issues banknotes and mints coins in the UK?

6. What famous people are featured on the back of various English banknotes?

Exercise 4. Complete these sentences with the following words:

banknote, bearer, words, inscription, denomination, signature, Bank of England, Chief Cashier

1. On the face of English banknotes one can read the....

2. The... is given both in figures and in....

3. The... on the face of the... reads: I promise to pay the... on demand fifty Pounds.

4. The first... is that of the person authorized by the Government and the..

5. The second signature is that of the....

Exercise 5. Sum up what the text says about:

the UK currency English coins

the backs of English banknotes the faces of English banknotes

Exercise 6. Have a look at a banknote (coin) which is in circulation now in Russia and say a few words about:

1. its denomination

2. its issuer

3. inscriptions, if any

4. portraits, if any

5. flags, if any

6. other pictures

Exercise 7. Match the English words with their Russian equivalents.

1. monetary unit А. Международный валютный

2. monetary agreement

3. monetary policy

фонд В. меняла

С. денежные суммы, валюты, монетные системы

4. International Monetary Fund

D. дешевые деньги, деньги с низ­кой покупательной способностью

5. cheap money

6. dear money

7. easy money

8. hot money

9. ready money

10. moneys

11. money in cash

12. money market

13. money rate

14. money-box

15. money-changer

16. money-order

 

UNIT 6. CENTRAL BANK

WHAT IS A CENTRAL BANK?

Just as a prudent driver keeps an eye on the road and a hand on the wheel, every country's central bank watches economic data carefully and adjusts the money supply in an effort to keep the economy headed in the right direction.

Instead of taking deposits and making loans as normal banks do, a central bank controls the economy by increasing or decreasing the country's supply of money. Cranking up the printing presses is not the only way for a central bank to increase the economy's supply of money. In fact, in most modern economies printed notes and coins are only a small percentage - often less than 10 percent-of the money supply. Central banks usually print only enough currency to satisfy the everyday needs of businesses and consumers.

Since most «money» is actually nothing more than a savings or checking account at a local bank, the most effective way for a central bank to control the economy is to increase or decrease bank lending and bank deposits. When banks have money to lend to their customers, the economy grows. When the banks are forced to cut back lending, the economy slows.

Once a customer deposits money in a local bank, it becomes available for further lending. A hundred dollars deposited at a bank in London, for example, doesn't lie idle for long. After setting aside a small amount of each deposit as a «reserve,» the bank can lend out the remainder, further increasing the money supply - without any new currency being printed. When these loans are redepositing in banks, more money becomes available for new loans, increasing the money supply even more. A bank's supply of money for lending is limited only by its deposits and its reserve requirements, which are determined by the central bank.

Central banks often use these reserve requirements to control the money supply. When a bank is required to keep a certain amount of its funds on reserve with the central bank -10 percent of deposits for example - it is unable to lend these funds back to customers. When a central bank decides to increase the money supply, it can reduce this reserve requirement, allowing banks to use more of their funds to lend to businesses and consumers. This increases the money supply quickly because of a multiplier effect: as the new loans enter the economy, deposits increase - and banks have even more money to lend, which generates further deposits providing more money for further loans.

Another way of controlling the money supply is to raise or lower interest rates. When a central bank decides that the economy is growing too slowly - or not growing at all - it can reduce the interest rate it charges on the bans to the country's banks. When banks are allowed to get cheaper money at the central bank, they can make cheaper loans to businesses and consumers, providing an important stimulus to economic growth. Alternatively, if the economy shows signs of growing too quickly, a centra! bank can increase the interest rate on its loans to banks, putting the brakes on economic growth.

Perhaps the most dramatic way of increasing or decreasing the money supply is through open market operations, where a central bank buys or sells large amounts of securities, such as government treasury bonds, in the open market By buying a large block of bonds, from a bank or a securities house for example, the central bank pumps money into the economy because it uses funds that previously were not part of the money supply. The money used to buy the bonds then becomes available for banks to lend out to consumers and businesses.

A central bank, unlike other players in the economy, does not have to secure funding from any other source. It can simply print more money or use its virtually unlimited credit with banks in the system. Once a central bank s payment enters the economy, it becomes part of the money supply, providing fuel for businesses and consumers to increase their economic activities. Likewise, when a central bank sells bonds in the open market, the payments from banks and securities houses disappear into the black hole of the central bank's vault, completely removed from the economy at large.

An error in judgment at the central bank has grave consequences for everyone in the economy. If a central bank allows the economy to expand too rapidly by keeping too much money in circulation, it may cause inflation. If it slows down the economy by removing too much money from circulation, an economic recession could result, bringing unemployment and reduced production. A central bank serves as a watchdog to supervise the banking system, in most cases acting independently of its government to provide a stabilizing influence on the country's economy.

The activities and responsibilities of central banks vary widely from country to country. For example, Britain's Bank of England is responsible for printing the money as well as supervising the banking system and coordinating monetary policy. In the United States, the duties of a central bank are divided among different agencies: the U.S. Treasury borrows the government's money through Treasury bond and note issues, while the Federal Reserve Board is put in charge of monetary policy and oversees the printing of money at the Bureau of Printing and Engraving.

The French central bank, the Banque de France, prints and issues the money, but the French treasury makes the decisions regarding monetary policy and bank supervision. In Germany, the central bank, called the Bundesbank, is noted for its active policy of strict monetary control, limiting money supply growth in order to control inflation at all costs.

The Bank of Japan, like many of the world's central banks, acts as banker to the government. This activity is a major source of revenue for the bank since fees are charged for issuing the government's checks.

EXERCISES

Exercise 1. Explain why it is useful to be able to estimate and describe character.

1. What are the main functions of a central bank?

2. In what way can a central bank control the economy?

3. How can central banks control the money supply?

4. What is the most dramatic way of increasing or decreasing the money supply?

5. Does a central bank have to secure funding from any other source? Why?

6. Do the activities and responsibilities of central banks vary from country to country? Give your examples.

 

Exercise 2. Translate the following sentences.

1. Don't bank on going abroad this summer, we may not have enough money.

2. The morning began fine, but now clouds are banking up.

3. I have always banked with the Royal Bank.

4. They have an access to huge banks of public data or library information.

5. The only way out is to ask your bank for a loan.

6. I am not sure if I should buy this suit - Come on! It won't break the bank.

7. Mr. Smith had bankrolled them when they had nothing.

Exercise 3. Match the term with its definition.

Discount house, deposit, loan, charter, lend, borrow, denomination, claim, installment, repository.

1. A place where you keep objects of a particular type.

2. A sum of money lent for an agreed period of time and at an agreed rate of interest

3. Demand or request for a thing considered one's due.

4. A document granting rights, issued by a legislature.

5. Any of several usually equal payments for something.

6. Money left with an organization for safe keeping or to earn interest.

7. Class of measurement of money.

8. Company or bank on the discount market that specializes in discounting bills of exchange.

9. Acquire temporarily, promising or intending to return.

10. Allow the use of money at interest.

Exercise 4. Study the following words and word combinations. Make your own sentences, using each of them. Translate the sentences into Russian.

Risk; riskless; risky; desirable risk-return features; risk-taker; low-risk securities; risk-exposure; riskiness; insurable risk; at risk; put at risk; ran a risk; take a risk; risk capital; calculated risk; risk on.

Exercise 5. Explain the difference between:

Risk - hazard - jeopardy - peril.

Give your own sentences to show you understand the difference.

Exercise 6. Think of the nouns that are most commonly used with the following adjectives:

Current, surplus, ongoing, efficient, competitive, negligible, profitable, trustworthy.

Exercise 7. Think of the nouns that are most commonly used with the following verbs.

Issue, sell, perform, save, cover, accumulate, flow, afford, meet, recover, incur, claim.

Exercise 8. Think of the verbs and adjectives that are most commonly used with the following nouns.

Fund, income, service, flow, deposit, borrower, claim, loan, fee.

Exercise 9. Make up your own sentences with any ten word- combinations from ex. 6, 7,8.

UNIT 7. FINANCE

The field of finance is broad and dynamic. It directly affects the lives of every person and every organization, financial and non-financial, private or public, large or small, profit-seeking or non-profit.

One of the primary considerations when going into business is money. Without sufficient funds a company cannot begin operations. The money needed to start and continue operating a business is known as capital. A new business needs capital not only for ongoing expenses but also for purchasing necessary assets. These assets - inventories, equipment, buildings, and property - represent an investment of capital in the new business.

Finance can be defined as the art and science of managing money. All individuals and organizations earn or raise money and spend or invest money. Finance is concerned with the process, institutions, markets, the instruments involved in the transfer of money among and between individuals, businesses and governments.

Finance can be defined at both the aggregate or macro level and the firm or micro level. Finance at the macro level is the study of financial institutions and financial markets and how they operate within the financial systems. Finance at the micro level is the study of financial planning, asset management, and fund raising for business firms and financial institutions.

Finance has its origin in the fields of economics and accounting. Economists use a supply-and-demand framework to explain how the prices and quantities of goods and services are set in a free-enterprise or market-driven economic system.

Accountants provide the record-keeping mechanism for showing ownership of the financial instruments used to facilitate the flow of financial funds between savers and borrowers. Accountants also record revenues, expenses, and profitability of organizations involved in the production and exchange of goods and services.

Large-scale production and a high degree of specialization of labor can function only if there exists an effective means of paying for productive resources and final products. Business can obtain the money it needs to buy capital goods such as machinery and equipment only if the institutions and markets have been established for making savings available for such investment. Similarly, the federal government and other governmental units can carry out their wide range of activities only if efficient means exist for raising money, for making payments, and for borrowing.

Financial markets, institutions or intermediaries, and business financial management are basic elements of well-developed financial systems. Financial markets provide the mechanism for carrying out the allocation of financial resources or funds from savers to borrowers. Financial institutions such as banks and insurance companies, along with other financial intermediaries, facilitate the flow of funds from savers to borrowers. Business financial management involves the efficient use of financial capita! in the production and exchange of goods and services. The goal of the financial manager in a profit- seeking organization is to maximize the owners' wealth through effective financial planning and analysis, asset management, and of financial capital. The same financial management functions must be performed by financial managers in not-for-profit organizations, such as governmental units or hospitals, in order to provide the desired level of service at acceptable costs.

EXERCISES

Exercise 1. Answer the questions.

1. What is finance?

2. Where does finance have its origin?

3. What are the basic elements of financial system?

Exercise 2. Ask ten questions on the text.

Exercise 3. Insert the correct word from the list.

Goods, elements, accountants, not-for-profit, finance, capital, goal, art, investment, field, institutions, business, funds.

1. The... of finance affects the lives of every person.

2. People go into... to earn money.

3. Without sufficient... nobody can start business.

4. The money needed to start a business is called....

5. We can call inventories, equipment, buildings, and property an... of capital in the business.

6. We can call finance the... and science of managing money

7.... has its origin in the fields of economics and accounting.

8.... record revenues, expenses, and profitability.

9. Financial markets, institutions or intermediaries, and business financial management are basic... of well-developed financial systems.

10. Financial... such as banks and insurance companies facilitate the flow of funds from savers to borrowers.

11. Business financial management involves the efficient use of financial capital in the production and exchange of... and services.

12. The... of the financial manager is to maximize the owners' wealth through effective financial planning.

13. The financial manager in a... organization can use the effective financial planning and analysis in order to provide the desired level of service at acceptable costs.

Exercise 4. Match the definitions with the words given below.

Fee, executive, insure, skill, capacity, profile, applicant, charisma, ensure, guideline, superior.

1. Ability to do something well.

2. Short biographical or character sketch.

3. Payment made for professional advice or services.

4. Person or body with managerial or administrative responsibility.

5. Make certain.

6. Secure compensation in the event of loss or damage by advance regular payments.

7. In a higher position; of a higher rank.

8. Principle directing action.

9. Power to certain, receive, experience, or produce.

10. The ability to attract, influences, and inspire people by your personal qualities.

11. Someone who formally asks to be given something, such as a job or a place at a college or university.

Exercise 5. Read the text once again and explain, in your own words, the meaning of the following terms:

1. profit-seeking organization, non-profit organization, financial organization, rion-financial organization, private organization, public organization.

2. money, funds, capital, investment, finance, economics, accounting.

3. managing money, to earn money, to raise money, to spend money, to invest money.

4. finance at the macro level, finance at the micro level.

Exercise 6. Match the word with its definition.

Finance house (company), financial institution, financier, finance, financial year, financial instrument, financial, financial futures, financial capital, financial intermediary, financial accountant.

1. capital involved in a project loan of money for a particular purpose.

2. organization providing finance for hire-purchase agreements.

3. accountant whose primary responsibility is the management of the finances of an organization and the preparation of its annual accounts. Financial adviser.

4. the liquid as opposed to physical assets of a company.

5. futures contract in currencies or interest rates.

6. an organization that collects funds from-individuals, other organizations or government agencies and invest these funds or lends them on to borrowers.

7. formal financial document.

8. bank, building, society, finance house, insurance, company, investment trust etc. that holds funds borrowed from lenders in order to make loans to borrowers; sometimes you can call so an organization that sells insurance but is not directly employed by an insurance company.

9. any year connected with finance, e.g. a company's accounting period or a year for which budgets are made up; it is a specific period relating to corporation tax.

10. ratios between particular groups of the assets or liabilities of an enterprise and corresponding totals of assets or liabilities; or between assets and liabilities and flows like turnover or revenue.

11. person who uses his one money to finance a business deal or venture or who makes arrangements for such a deal.

 

UNIT 9. MADE IN BRITAIN

You now know that Britain used to have many manufacturing industries, but since the Second World War its service industries, especially banking and retailing, have expanded. Heavy industries, including steel manufacture

ad shipbuilding, have been replaced by high-technology manufacturing idustries, such as aero plane engine manufacture and Pharmaceuticals.

In Britain, there are only a few successful large companies, but very many uccessful small companies. Many of them appeared in the 1980s. it was at hat time that small businesses began to increase rapidly. At the end of 1990 officially there were a total of more than 1.5 million small businesses, though he real figure, including the «black economy», was probably nearer two million. However proportionately there were 50 per cent more in West Germany and the United States, and about twice as many in France and Japan.

Unfortunately, many small businesses fail to survive, mainly as a result of poor management, but also because, compared with almost every other European Community member, Britain offers the least encouraging conditions. But such small businesses are important not only because large businesses grow from small ones, but also because over half the new jobs in Britain are created by firms employing fewer than 100 staff.

The large companies invest a lot of money in research and development (R & D) to find new and better, usually high-technology, products. Glaxo is Britain's leading pharmaceutical company and is one of the largest in the world. It tries to find and make new medicines that can cure or reduce the effects of disease. BP (British Petroleum) is at present the second-largest company in Europe. It is involved in oil and gas exploration, oil refining and the manufacture of petrochemical products. It is investing money in making cleaner petrol.

Successful small manufacturing companies in the UK often make expensive products. These companies are successful because they use first-class materials, have excellent quality control and the workers are proud of what they make. Such companies include J. Barber & Sons, the Morgan Motor Company, Quad Electro acoustics, Wilkin & Sons. J.Barber & Sons makes waterproof jackets. Originally designed forfishermen and farmers, these waterproof jackets are now fashionable in cities throughout Europe and the US. The Morgan Motor Company produces elite cars. Quad Electro acoustics is well-known for its expensive but high-quality loudspeakers and hi-fi equipment. Wilkin & Sons makes jams which British people cannot do without,

Notes and Commentary

European Community - Европейское сообщество («Общий рынок»); основано в 1957 гору, Великобритания стала членом сообщества в 1973 году.

EXERCISES

Exercise 1. Answer the questions.

1. Are there many successful large companies in Britain?

2. What began to increase rapidly in the 1980s?

3. Why are those small manufacturing companies in the UK, that make expensive products, successful?

4. Unfortunately, many small businesses fail to survive, don't they? Why do they fail to survive?

Exercise 2. Match the English words with their Russian equivalents.

1.	retail (n)	A.	высокие технологии
2.	retaW (a)	B.	работник
3.	retail (v)	C.	работодатель
4.	small business	D.	малый бизнес
5.	black economy	E.	продавать в розницу
6.	management(n)	F.	розничная продажа
7.	large business	G.	производить
8.	employ (v)	H.	теневая экономика
9.	employee (n)	I.	контроль качества
10.	employer (n)	J.	крупная компания
11.	high technology	K.	розничный
12.	quality control	L.	нанимать на работу
13.	produce (v)	M.	управление; менеджмент

Exercise 3. Find the Russian equivalents of the following.

First-class materials; hi-fi equipment; to cure or reduce the effects of disease; to increase rapidly; to do without something; research and development to find new high-technology products; the least encouraging conditions.

Exercise 4. Find the English equivalents of the following.

Ведущая компания; больше половины новых рабочих мест; вкла­дывать много денег в проведение исследовательских работ и разви­тие; создавать рабочие места; плохое управление, приблизительно в два раза больше компаний; выпускать дорогие товары.

Exercise 5. On a separate sheet of paper, translate from English into Russian Paragraphs 2 and 3 of the UNIT beginning with the words «In Britain, there are only...» and ending with the words «... fewer than 100 staff». When translating, please keep in mind the norms of the Russian language.

Exercise 6. Fill in the correct word or phrase from the list below. Use the words or phrases only once.

Successful; poor; small; large businesses; to survive: economy.

1)... business

2) black...

3)... management

4)... grow from small ones

5)... small companies

6) to fail...

Exercise 7. Fill in the correct preposition.

1.... present

2. to invest money... R&D

3. to be well-known... expensive hi-fi equipment

4. to design... someone

5. to be proud... something

6. to do... Wilkin & Sons jams

7. about twice... many

8. to be involved... exploration

9. to replace... something

Exercise 8. Say whether these sentences are true or false and explain why. Rewrite false statements to make them true.

1. There are less people who work in service industries than in manufacturing industries in Britain.

2. Because of various economic problems, retailing and banking could not develop at the end of the last century.

3. The goods, which British small manufacturing companies make, areverу expensive.

4. Large companies do not invest money in R&D.

Exercise 9. Choose all the words that are appropriate in answering the questions.

A. What does Glaxo make?

B. What does BP manufacture?

C. What does the Morgan Motor Company produce?

Elite cars, high-quality loudspeakers, petrochemical products, new medicines, hi-fi equipment, petrol jams, waterproof jackets.

Exercise 10. Look through the text again and write down ways to express what each of the following companies is involved in.

A. Quad Electro acoustics

B. Wilkin & Sons

C. J Barber & Sons

Exercise 11. From the text, select those facts and ideas concerning small businesses (in written form).

Exercise 12.

A. Say what the text is about. Comment on the content of the text (orally).

B. Present the general idea of the text in five-six sentences. Do it in written form.

 

UNIT 11. AMERICAN ECONOMY

THE WELFARE STATE: FOOD FOR THOUGHT

The United State of America is the world's greatest economic power in terms of both Gross National Product and per capita GNP, with its exports accounting for more than 10% of all world trade.

Although the importance of industrial production is falling and that of services growing (as in most of Western Europe), the United States remains the world's greatest maker of industrial goods and around 20 million Americans are still employed in manufacturing.

The industrial heart of the nation is the Midwest around the Great Lakes, especially in the region stretching from southern Michigan through Northern Ohio and into the Pittsburgh area of Pennsylvania. Another important industrial region is the Northeast, which is the home of the major computer

manufacturers. Service industries are also very important in this region and New York is the country's banking and insurance capital. The nation's fastest growing region, however, is the Southeast, where the chemical industry and high-technology industries are now catching up with the traditional textile industry as many firms exploit the warm climate and low labor costs.

47 per cent of the land area ofthe United States is farmland, ofwhich 152 million hectares are harvested cropland and 560 million hectares are permanent pastureland. And yet, only 6.2 million people live on the nation's farms and today farmers make up a little more than 2 per cent of the American population.

The American farmer's success is one ofthe less publicized wonders ofthe 20th century. By the mid-1970s a single farmer could grow enough food to feed himself, forty five other Americans, and eight foreigners. Agriculture is one of the biggest and most basic productive enterprises. It feeds the nation and supplies raw materials to most industries. In a single year farmers in the United States grow crops valued at some $25 billion.

The ever intensifying production has exacted its price. In an attempt to stabilize farm income, the US Government has paid farmers billions of dollars in the past decade. Spokesmen for the consumers have charged farmers and the food-processing industry with sacrificing nutrition and taste in their efforts to mass-produce meat, poultry, fruit, vegetables, and grain products.

Much ofthe machinery on US farms is automated, computers determine what animals eat. Such technology costs money. In 1940 American farmers invested about 552 billion in land, livestock, buildings, and equipment. By the 1990s the amount had climbed to more than $400 billion, even though farms had dropped in number from 6 million to fewer that 3 million. Many people had to sell their small family farms because they could not find the necessary capital to run them. Nevertheless, about 95 per cent of US farms are still family owned, although nowadays they tend to be large and are often incorporated. Meanwhile, true corporation farms, supervised by boards of directors and professional managers, are increasing in number. The number of American farms is expected to be cut in half, to about 1.5 million, while the amount of cultivated land will remain about the same. Farm output, however, will probably double.

Some agriculturists envision a future where weather will be made to order, robots will operate the farm machinery, millions of identical cattle will be produced as clones from a single superior «parent», and crops will grow lush and green under a pollution-free sky. It is a fairy tale, but the truth is that the amazing productivity of American farmers has ensured that much of the world will have enough to eat for the next 20 or 30 years.

Notes and Commentary

the Midwest, the Great Lakes, Michigan, Northern Ohio, the Pittsburgh, Pennsylvania, the Northeast, the Southeast - названия регионов на территории Соединенных Штатов Америки (Средний Запад, район Великих Озер, Мичиган, Северный Огайо, Питтсбург, Пенсиль­вания, северо-восточный регион, юго-восточный регион)

New York - Нью Йорк, крупнейший город США

EXERCISES

Exercise 1. Answer the questions.

1. In what terms is the United State of America the world's greatest economic power?

2. Why is the Southeast the nation's fastest growing region?

3. What measures does the US Government take in an attempt to stabilize farm in come?

4. Will farm output fall if the number of American farms is cut in half?

Exercise 2. Match the English words with their Russian equivalents.

1.	power (п)
2.	Gross National Product
	(GNP)
3.	per capita
2.	exports (n, pi)
3.	trade (n)
4.	industrial (a)
5.	manufacture (v)
6.	manufacturing (n)
7.	manufacturer (n)
8.	low labor costs
9.	farmland (n)

10. cropland (n)

11. pastureland (n)

12. productive (a)

13. supply (v)

A. экспорт

B.поставлять

C. земля, используемая для сельскохозяйственных нужд

D. промышленный

E. производство

F. дешевая рабочая сила

G. валовой национальный продукт (ВНП)

H. земля под пастбище

I. государство, держава; власть J. прибыль, доход

К. производитель, компания - производитель; фабрикант L. торговля

М. на душу населения N. производить (товары в промышленном масштабе) О.потребитель

14. income (n)

15. consumer (n)

16. food-processing industry

17. capital (n)

P. менеджер-профессионал Q. совет директоров R. пищевая промышленность S. чистый, незагрязненный (об окружающей среде) Т. земля под зерновые культуры

18. incorporated (corporation) farms

19. board of directors

U. корпоративные, фермерские хозяйства

20. professional manager

21. pollution-free

V. капитал

W. производственный; продук тивный, приносящий прибыль

Exercise 3. Find the Russian equivalents of the following.

To mass-produce products; one ofthe less publicized wonders; to envision a future; the industrial heart of the nation; to exact production price; a single superior «parent»; spokesmen forthe consumers; the home ofthe major computer manufacturers; to run small family farms; to make up half of the population.

Exercise 4. Find the English equivalents of the following.

Простираться от Мичигана до Пенсильвании; постоянно возраста­ющее производство; поставлять сырье; прокормить себя; увеличить в два раза объем производства; уменьшить в количественном отноше­нии; доход фермеров; производитель промышленных товаров.

Exercise 5. On a separate sheet of paper, translate from English into Russian Paragraph 7 ofthe text beginning with the words «Much of the machinery...» and ending with the words «... will probably double». When translating, please keep in mind the norms of the Russian language.

Exercise 6. Fill in the correct word or phrase from the list below. Use the words or phrases only once.

Amazing; feed; farm income; fairy; banking; industrial; to sacrifice.

1)... and insurance capital

2) to stabilize....

3) the... productivity of American farmers

4)... nutrition and taste

5) a... tale

6) growing... region

7) to... the nation

Exercise 7. Fill in the correct preposition.

1) to drop... number

2)... terms of something

3) to cut.. half

4) to catch up... something

5) to account... ten per cent

6)... an attempt to do something

7) to supply raw materials... most industries

8) to charge someone... something

Exercise 8. Say whether these sentences are true or false and explain why. Rewrite false statements to make them true.

1. Many people in the US run their small family farms because they have the necessary capital.

2. The Midwest is the home of the major computer manufacturers.

3. Services are becoming more important than industrial production.

4. The productivity of American farmers is falling and soon the world will have nothing to eat.

5. In the Southeast, the traditional textile industry gives way to the chemical industry and high-technology industries.

Exercise 9. Look through the text again and write down ways to describe what different regions of the USA are famous for.

1. The Northeast

2. The Southeast

3. New York

Exercise 10. In the text, find figures characterizing different aspects of US economy. In the space below, write down the amount, the number, the percentage and the related information.

How much?

1. A single farmergrows enough food to....

2. US exports account for...

3. At present, the number of American farms is....

4. Farmland makes up....

5. Thanks to the US farmers, the world....

Exercise 11. From the text, select those facts and ideas concerning the American farmers' success (in written form).

Exercise 12.

A Say what the text is about. Comment on the content of the text (orally).

B. Present the general idea of the text in five-six sentences. Do it in written form.

 

FOR ALL MANKIND

In 1873, when Joel Owsley Cheek reached the age of twenty-one, his father gave him the traditional silver dollar. This represented his freedom to go out into the world to seek his fame and fortune.

Joel left the family farm in Kentucky and joined a firm of wholesale grocers as a traveling salesman, going from village to village. However, it was the coffee that held a special fascination for him and in his spare hours he experimented., selecting different beans, varying their proportions and roasting times - creating new blends.

He spent most of his time searching for the elusive «perfect blend» of coffee. In 1882, he felt that he had found it. Now he wanted to let the world know, but how could he do this?

Joel knew that the Maxwell House Hotel in Nashville was where the president, senators, diplomats, and leading Europeans met and stayed. Could he persuade the management to let him demonstrate «his» blend there? He was sure this would be the best waу of testing his judgment. The hotel did co-operate and within weeks distinguished visitors were enjoying his coffee and singing its praises. Many years later, when President Theodore Roosevelt visited the hotel, he was heard to say of the coffee, «It is good to the last drop».

Unfortunately, in 1961, the Maxwell House Hotel caught fire and was destroyed. Few people may know of Joel Cheek, but around the world people drink his blend of coffee, Maxwell House, thus commemorating the inventor and the hotel where the coffee first found fame.

in many ways the tale of Henry Ford and the product associated with his name is a microcosm of American economic history - a story of trial and

error, of innovation and ultimate success. A farmer with a penchant for things mechanical, the young Ford quit school at 17, began building small steam engines, and drove his first bicycle-wheeled, engine-driven device in 1896.

It was a primitive affair, much simpler than cars already on the roads in Europe, and it was not until 1901 that the stubborn tinker, after several false starts, got enough financial support to start the Henry Ford Automobile Company. Financial disputes arose and Ford left. Two years later, with new backers, he established the Ford Motor Company. (When in 1919 Ford bought all outstanding shares original investors reaped heavy rewards; a share that cost $100 was then worth $260,000.)