ФГОБУ ВО «Финансовый университет при Правительстве Российской Федерации Кафедра «Иностранные языки-2» Г.А. Дубинина И.Ф. Драчинская Н.Г. Кондрахина О.Н. Петрова АНГЛИЙСКИЙ ЯЗЫК: ЭКОНОМИКА И ФИНАНСЫ OVERWIEW Учебник Часть 2 (издание третье, исправленное и дополненное) Для направлений: 080100.62 - «Экономика» 080500.62 - «Менеджмент» 040100.62 - «Социология» 030200 – «Политология» 010400.62 - «Прикладная математика и информатика» 230700.62 - «Прикладная информатика» (программа подготовки бакалавров) Москва 2016 ФГОБУ ВО «Финансовый университет при Правительстве Российской Федерации Кафедра «Иностранные языки-2» Г.А. Дубинина И.Ф. Драчинская Н.Г. Кондрахина О.Н. Петрова АНГЛИЙСКИЙ ЯЗЫК: ЭКОНОМИКА И ФИНАНСЫ OVERWIEW Учебник Часть 2 (издание третье, исправленное и дополненное) Рекомендовано УМО по образованию в области финансов, учета и мировой экономики в качестве учебника для студентов, обучающихся по направлению «Экономика» (степень бакалавр) и специальностям/профилям: «Бухгалтерский учет, анализ и аудит», «Финансы и кредит», «Мировая экономика», «Налоги и налогообложение» Москва 2016 1 УДК УДК 81(075.8)=111 ББК 81.2 Англ. Д79 Рецензенты: Т.Д. Венедиктова, д.филол.н., профессор (МГУ им. М.В. Ломоносова) И.И. Воронцова, к.филол.н., доцент (Российский гуманитарный университет) Н.Н. Котляров, д.э.н., профессор (Финансовый университет) Д79 Дубинина Г.А., Драчинская И.Ф., Кондрахина Н.Г., Петрова О.Н. Английский язык: экономика и финансы / Overview: учебник. Ч. 2- М.: Финансовый университет, 2016. 267 с. ISBN 978-5-7942-0920-4 «Overview» - второй том серии учебников для студентов финансовоэкономического профиля. Тематика учебника посвящена экономике страны, рынкам, монополиям, денежной политике и банкам. Все разделы снабжены грамматическими упражнениями, кейс-анализом, ролевыми играми и предусматривают использование мультимедийных технологий. УДК 81(075.8)=111 ББК 81.2 Англ. ISBN 978-5-7942-0920-4 © Дубинина Г.А., Драчинская И.Ф., Кондрахина Н.Г., Петрова О.Н. , 2016 © Финансовый университет, 2016 2 Federal State–Funded Educational Institution of Higher Education FINANCIAL UNIVERSITY UNDER THE GOVERNMENT OF THE RUSSIAN FEDERATION Foreign Languages -2 Department Galina A. Dubinina Irina F. Drachinskaya Natalia G. Kondrakhina Oxana N. Petrova ENGLISH: ECONOMICS & FINANCE Part 2 OVERVIEW Textbook Third edition, revised and enlarged Recommended by the Scientific Council for education in the field of Finance, Accounting and Global economy as a study guide for students of Economics and Management (Bachelor's degree), specialties: “Accounting, analysis and audit", "Finance and credit", "Global economy"," Taxes and taxation" Moscow 2016 3 UDC 81(075.8)=111 Reviewers: Venedictova T.D., Professor, DSc. (Philology), Moscow State University, General Literature and Theory Department, Head Vorontsova I.I., PhD. (Philology), Russian Humanitarian University, Associate Professor Kotlyarov N.N., DSc. (Economics), Financial University, Professor Dubinina G.A., Drachinskaya I.F., Kondrakhina N.G. Petrova O.N. English / Economics & Finance: textbook: in 4 p - M.: Financial University, 2016 ISBN 978-5-7942-1183-2 P. 2: Overview:. – 3rd ed., revised and enlarged. – 276 p. ISBN 978-5-7942-1185-6 Overview is the second part of a series of English language textbooks and is designed to begin English Language study for the students of Economics and Finance. The textbook focuses on economic activity: markets, monopolies, economic growth, money, its functions, monetary policy and banking services. The textbook offers such innovative foreign language technologies as case analysis, critical thinking tasks, cross-cultural analysis, role playing, multimedia presentations, the Internet research. UDC 81 (075.8)=111 ISBN 978-5-7942-1185-6 (P1) © Galina A. Dubinina, 2016 ISBN 978-5-7942-1183-2 © Irina F. Drachinskaya, 2016 © Natalia G. Kondrakhina, 2016 © Oxana N. Petrova, 2016 © Financial University, 2016 4 Введение "Английский язык: экономика и финансы» - это серия учебников, целью которых является углубление и расширение языковых и экстралингвистических знаний студентов в пределах тематики, предусмотренной базовой частью дисциплины «Иностранный язык» для бакалавров финансово-экономического профиля. Материалы учебника «Overview», второй части серии, тематически связаны с общими представлениями об экономической деятельности: рынках, монополиях, экономическом росте, сущности и функции денег, денежной политике и банковской деятельности. Разделы учебника имеют единую структуру: Lead-in – вступительная часть. Language Input – словарь урока с примерами и переводом. Background Information – профессионально ориентированный текст, дающий представление о проблематике одного из сегментов финансово-экономической сферы и упражнения, способствующие точному пониманию текста и оснащенные речевыми формулами. Practice – упражнения, направленные на совершенствование умения строить устную и письменную речь на английском языке по тематике раздела, включая мультимедийную презентацию и Интернет-поиск. Dialogue – профессионально ориентированные диалоги по тематике раздела, предназначенные для развития навыков ведения диалога и расширения терминологической базы. Reading for Cross-cultural Associations – тексты о межкультурных особенностях взаимодействия в финансово-экономической сфере. Role-play – ролевая игра по тематике, соответствующей учебнопознавательной и социально-культурной направленности раздела. Grammar Back up – грамматические упражнения и комментарий (модальные глаголы, пассивный залог глагола, местоимение, согласование времен в косвенной речи) на лексической основе материалов учебника. Авторы выражают глубокую признательность преподавателям Финансового университета, принимавшим участие в апробации учебника в рамках семинара Института повышения квалификации преподавателей «Методология и методика преподавания учебных дисциплин на иностранных языках», выпускникам Финансового университета, преподавателям кафедры «Иностранные языки-2» за помощь в отборе профессионально значимых материалов. 5 1 OVERVIEW OF MARKETS & MONOPOLIES Contents 1.1 1.2 1.3 1.4 Section overview Developing vocabulary Markets. Competition. Monopoly Understanding the reading Reviewing the concept Lead-in Language Input Background Information Comprehension 1.5 Speaking & Writing Language focus Language in context Presenting information Communication skills 1.6 Dialogue 1.7 Reading for Cross-cultural Associations 1.8 Case Study & Role-play 1.9 Grammar Back up Calculating Fill-in exercises Summarising Business Email Writing Interaction between supply and demand Business Etiquette in India Consumer skills: Know your Rights Practice with Modal Verbs: Ability Permission Obligation Necessity 6 1.1 LEAD-IN SECTION OVERVIEW In a free market, competition takes place among sellers in order to sell commodities at the best price, and among buyers in order to obtain what they want at a price which suits them. Monopoly is one of the factors which affect the sale and purchase of commodities. Governments dislike the procedure and have taken legal action to restrict or halt business activities directed towards “cornering the market “. Discuss the following questions, make use of the words in brackets. 1. Are buyers and sellers scarce or numerous? Can they influence prices solely? (to control / to set prices, quality level, quantity, advertising, to make buying decisions) 2. What knowledge of market conditions do buyers and suppliers need to make educated buying or selling decisions? (cheapest resources, highest/lowest prices, profits, the best deal, expenses, income) 1.2 VOCABULARY accept v принимать, акцептовать acceptance n принятие, согласие на оплату In a perfect market there can На идеальном рынке для данbe only one price for a given ного товара существует только commodity: the lowest price одна цена: самая низкая, на which sellers will accept and которую согласится продавец, the highest which consumers и самая высокая, которую will pay. согласится заплатить покупатель. affect v оказывать влияние Monopoly is one of the Монополия – это один из factors which affect the sale факторов, который оказывает and purchase of влияние на продажу и покупку commodities. товаров. 7 уполномочивать; поручать; разрешать, санкционировать Правительство разрешило Тhe government authorized дальнейшую добычу нефти. the further oil production. authority n власть, полномочие, влияние; авторитет, специалист; орган, управление, отдел Большинство студентов Most higher education высших учебных заведений students receive some получают какую-либо financial support from local финансовую помощь от education authorities. местных органов образования. break v even (to) быть / становиться безубыточным; не дать ни прибыли, ни убытка Нам надо зарабатывать по We need to take $5,000 пять тысяч долларов с каждой each sale just to break even. продажи только для того, чтобы выйти в ноль. break-even point n точка безубыточности; цена, при которой нет ни прибыли, ни убытков (продажи равны издержкам) Цена в конкурентоспособной In a competitive industry, промышленности обычно не price is generally not much намного больше предельных greater than marginal cost затрат и точки, при которой and break-even point. продажи компании равны издержкам. cancel v аннулировать, отменять, делать недействительным Если товар оказывается If goods are faulty when you дефектным при первом осмотре first inspect or use them, go или использовании, вернитесь в back to the shop, say that authorize v 8 you cancel the purchase and ask for complete refund. cause n cause v The degree to which changes in price cause changes in quantity demanded is called elasticity of demand. communicate v Buyers and sellers meet in person, or they communicate by letter, or in some other way, e.g. through their agents. compete v competition n In reality we observe different kinds of competition such as free, restricted and unrestricted. complaint n complain v If your complaint is justified, it is somebody’s responsibility to put things right. corner n магазин, скажите, что вы аннулируете покупку и попросите полностью возместить ее стоимость. причина, основание; дело, процесс причинять, являться причиной Положение, при котором изменение в цене вызывает изменение спроса, называется эластичностью спроса. общаться, обмениваться данными Покупатели и продавцы встречаются лично, обмениваются письмами либо общаются через агентов. конкурировать, соревноваться конкуренция, соревнование В реальной жизни мы наблюдаем разные виды конкуренции: свободную, ограниченную и неограниченную. жалоба, претензия, рекламация жаловаться, выражать недовольство Если ваша жалоба обоснованна, то кто-то должен навести порядок. “корнер”; олигополия, когда основная масса товаров сосредоточена у нескольких крупных продавцов 9 загнать в угол, скупать товар со спекулятивными целями достигнуть контроля над to corner the market рынком damage n ущерб, вред, убыток damage v наносить ущерб, вредить, портить The goods must not be broken Товар не должен быть сломан or damaged and must work или поврежден и должен properly. работать, как следует. deal n сделка, соглашение deal v распределять, отпускать to deal with something иметь дело с, заниматься чем-либо This contract means that it’s Этот контракт означает, что up to the shop – not the если вас не удовлетворяет manufacturer – to deal with товар, то заниматься вашей your complaints if the goods жалобой – дело магазина, а не are not satisfactory. производителя. enterprise n предприятие, предпринимательство, People combine capital, предприимчивость labour, and enterprise to Чтобы сделать бизнес make a business successful. успешным, средства, труд и предприимчивость объединяются. entitle v давать право; называть If goods break down through Если товар испортился не по no fault of yours you may be вашей вине, вы можете иметь entitled to compensation. право на компенсацию. fluctuate v колебать(ся), быть неустойчивым, меняться (о ценах, спросе) In a free market competition В условиях свободного рынка influences the prices and as a конкуренция оказывает влияresult they inevitably ние на цены и, как результат, fluctuate. они неизбежно колеблются. corner v 10 merger n слияние In Britain the Monopolies В Великобритании антимоноCommission examines all польный комитет проверяет special arrangements and все специальные соглашения и mergers which might lead to слияния, которые могут undesirable monopolies. привести к нежелательной монополизации. monopoly n монополия, монополистическое объединение A monopoly may arise from Монополия может возникнуть a variety of different causes. из-за множества различных причин. monopolise v монополизировать что-либо Postal services are Большинство правительств monopolised by most монополизирует почтовые governments within their услуги в границах своих state borders. государств. obtain v приобретать, получать What happens when certain Что происходит, когда какиеcompanies obtain full control то компании обретают over certain goods? контроль над определенными продуктами? overheads n накладные расходы Overheads are the various Накладные расходы – это expenses of operating a различные расходы, которые plant. возникают при работе предприятия. permit v позволять, разрешать, Natural monopolies are very допускать different from legal Естественная монополия monopolies where the law of отличается от монополии, a country permits certain предоставляемой законом producers, authors and (административной), при inventors a full monopoly которой некоторым производиover the sale of their own телям, авторам и products. изобретателям предоставляется право продавать свою продукцию. 11 prevail v преобладать, господствовать In a free market competition На свободном рынке influences the prices конкуренция влияет на prevailing in the market. господствующие цены. refund n возврат, возмещение refund v возвращать, возмещать, рефинансировать We guarantee to refund your Мы гарантируем, что вернем вам money if you're not satisfied деньги, если вы не довольны with your purchase. товаром. restrict v ограничивать In case of abuses В случае злоупотреблений governments take legal правительства принимают actions to restrict or halt предусмотренные законом illegal business activities. меры, чтобы ограничить или остановить незаконную деятельность. subject v подчинять, подвергать subject adj подчиненный, подвластный, зависимый Each commodity market is Всякий товарный рынок subject to special conditions. повинуется особым условиям. In the USA anti-trust laws Антимонопольное законодаsubject activities aimed at тельство США подчиняет cornering the market to деятельность, направленную special anti-trust laws that на достижение монополии на restrict such activities. рынке, особым законам, ограничивающим ее. transaction n операция, сделка Demand is the buyer’s side Спрос – это сторона of market transactions. покупателя в сделке. 12 DEVELOPING VOCABULARY 1.2.1. Consult a dictionary, write out the transcription and practise the pronunciation of the following words: ancient authorities career planning channel of distribution circumstances compete competition competitive control distinguish enterprise examine fluctuate fluctuation illegal inevitably legal monopoly merger monopolise negotiate occur prevail procedure purchase recruitment a resume Suez Сanal to be subject to to recruit to subject somebody undesirable unrestricted 13 1.2.2. Match the English word combinations in the left-hand column with the Russian equivalents in the right-hand column: 1. to compete with somebody on the market 2. to affect fluctuations a. приобрести контроль над чемлибо b. подчиняться ограничениям 3. to take legal actions to restrict or halt illegal business activities c. монополизировать что-либо в границах государства 4. to communicate through agents 5. to accept the price d. возникать по разным причинам e. отличаться от чего-либо 6. to be subject to restrictions f. монополия, разрешенная законом, легитимная монополия 7. to prevail in the market 8. to arise from a variety of causes 9. to permit a monopoly over something g. общаться через агентов h. новые рабочие места i. конкурировать с кем-либо на рынке 10. to be distinct from something 11. sole trading opportunity j. быть безработным k. позволить иметь монополию на что-либо 12. to obtain control over something l. проверять соглашения и слияния 13. to corner the market m. доминировать на рынке 14. to subject somebody to something n. различать что-либо на практике 17. legal monopoly o. достигнуть контроля над рынком p. принимать законные меры для ограничения или прекращения незаконной деятельности q. подчинять кого-либо чему-либо 18. job openings r. влиять на колебания 19. to examine arrangements and mergers s. договориться о разумном решении вопроса 20. to monopolise something within borders 21. to distinguish something in practice t. исключительное право на торговлю (“чистая монополия”) u. принять цену 15. to be unemployed 16. to negotiate a reasonable settlement 14 1.3 READING MARKETS. COMPETITION. MONOPOLY In a market economy, the actions of buyers and sellers set the prices of goods and services. The prices, in turn, determine what is produced, how it is produced, who will buy it, and what will be the mix of consumer and capital goods. Supply, the quantity of a product that suppliers will provide, is the seller’s side of a market transaction. Suppliers usually want the price that allows them to make the most money. Demand, the quantity of a product consumers want, is the buyer’s side of a market transaction. Buyers want the price that gives them the most value for the least cost. Whenever people who are willing to sell a commodity contact people willing to buy it, a market for that commodity is created. Buyers and sellers meet in person, or they may communicate by letter, by phone, by e-mail or through their agents. In a perfect market, communications are easy, buyers and sellers are numerous and competition is completely free. In a perfect market there can be only one price for a given commodity: the lowest price which sellers will accept and the highest which consumers will pay. There are, however, no really perfect markets, and each commodity market is subject to special conditions. Competition influences the prices prevailing in the market. Prices inevitably fluctuate, and such fluctuations are also affected by current supply and demand. Although in a perfect market competition is unrestricted and sellers are numerous, free competition and large numbers of sellers are not always available in the real world. In some markets there may only be one seller or a very limited number of sellers. Such a situation is called a “monopoly”, and may arise from a variety of different causes. It is possible to distinguish in practice several kinds of monopoly. State planning and central control of the economy often mean that a state government has the monopoly of important goods and services, e.g. most national authorities monopolise the postal services within their borders. A different kind of monopoly arises when a country, through geographical or geological circumstances, has control over major natural resources or important services, e.g. 15 Canadian nickel and the Egyptian ownership of the Suez Canal. Such monopolies can be called natural monopolies. Legal monopolies occur when the law of a country permits certain producers, authors and inventors a full monopoly over the sale of their own products. These types of monopoly are distinct from the sole trading opportunities when certain companies obtain complete control over particular commodities. This action is often called “cornering the market” and is illegal in many countries. In the USA anti-trust laws operate to restrict such activities, while in Britain the Monopolies Commission examines all special arrangements, mergers, takeovers and acquisitions which might lead to undesirable monopolies. In the market systems, competition answers the basic questions of what, how, for whom, and how much. Competition among producers is for the highest profits. Competition among consumers is for the best goods and services at the lowest prices. Obtaining the highest profits and the best goods at the lowest price are the only motives the market system considers. In a market economy three basic resources – land, labour and capital – are bought and sold for the best price. Market for labour is constantly changing. Producers are in competition with one another to hire the best workers for the lower wages. Workers compete with one another to get the best jobs at the highest wages. Producers’ needs for workers change constantly. Young people train for a career, then, need to consider what types of workers will be needed in the future. Planning a career requires careful study of statistics showing which jobs are growing. Further, career planning must include the ability to change with the economy. Workers need to be able to learn new skills to remain competitive in the market. 16 1.4 COMPREHENSION UNDERSTANDING THE READING 1.4.1 Give extensive answers to the questions. Use the following expressions to start your answers: In principle, ... . There is something (else) I’d like to point out ...; I deduce that … . Could you be more specific, please ... . The major point is ... . It’s an open secret that ... . 1. What do sellers want most to achieve? 2. What are the reasons of suppliers when determining the price of a product? 3. Why is demand the buyer’s side of a market transaction? 4. In what way does a real market differ from a perfect one? 5. Among whom does competition take place? 6. What does competition influence? 7. What three things cause prices to fluctuate? 8. What three means are mentioned by which buyers and sellers can communicate if they do not meet in person? 9. What price operates in a perfect market? 10. What is a monopoly? What kind of a market does the word “monopoly” describe? 11. What are the types of monopoly? Give examples. 12. What happens when certain companies obtain full control over certain goods? 13. What do governments do to restrict “cornering the market”? 14. In what way does competition influence labour markets? 15. Why does career planning require careful consideration? 17 REVIEWING THE CONCEPT 1.4.2 Say whether these statements are true (T) or false (F), and if they are false say why. e.g. True enough ... . / I assume it is false that ... because ... . TF TF TF TF TF TF TF TF TF TF TF 1. Since modern markets are normally located in a special place, buyers and sellers always have to meet face-toface. 2. In a perfect market, buyers and sellers are numerous, their communications are easy, and competition is completely unimpeded (unrestricted). 3. In a real market there can be only one price for any given commodity: it’s the equilibrium price. 4. There are no really perfect markets, because each market is subject to its own peculiar conditions. 5. Price is one of the significant factors which can affect the sale and purchase of certain commodities. 6. Monopoly is the situation when we observe only one seller or a cartel of sellers working very closely together to control prices. 7. The result of monopolistic activity is fixing prices at a level suitable for the seller, a level which may bring him artificially high profits. 8. The prices have no influence upon the process of production of goods. 9. Demand is the quantity of a product that suppliers will provide. 10. Buyers will want the price that gives them the most value for the least cost. 11. In a market economy cooperation of sellers is the main reason the market system considers. 18 1.5 SPEAKING & WRITING Language focus 1.5.1 Calculating There are the following ways of saying calculations in British English: Formal Informal 2+2=4 Two plus two equals/is four. Two and two is/are four. 8–5=3 Eight minus five equals/is three. Five from eight is/leaves three. Eight take away five is/leaves three. 3 × 5 = 15 Three multiplied by five equals/is fifteen. Three fives are fifteen. Three times five is fifteen. 9÷3=3 Nine divided by three Three(s) into nine goes equals/is three. three (times). Remember to pronounce the s in equals as /z /. π1 equals approximately 3.142, which is equal to the distance round a circle divided by its width. + = add – = subtract (or deduct) = multiply = divide Twelve divided by four equals / is three. Other ways of saying divide are: per €/$ euros per dollar 6% p.a. six per cent per annum 2 over (x – y)/z x minus y, over z which is not the same as x, minus y over z: x – y/z 1 Число π [pai] - отношение длины окружности к её диаметру - константа, равная приблизительно 3,1415926535897932. 2 Косая черта с наклоном вправо, слэш, символ /. 19 Language in context 1.5.2 Fill in the blanks with one of the following wordcombinations: (1) subject to 1 (2) to be subject to 2 (3) to subject somebody / something to somebody / smth.3 1. This offer is made … receiving your confirmation within 10 days. 2. We make this offer … receiving your confirmation by cable. 3. In reality, each commodity market ... special conditions. 4. Prices in the market inevitably fluctuate, and such fluctuations ... current supply and demand. 5. As competition influences the prices prevailing in the market, the former ... the prices ... special market conditions. 6. In the USA anti-trust laws ... activities aimed at cornering the market ... special anti-trust laws that restrict such activities. 7. The absence of buyers ... the sellers ... the changes in the current prices. 8. I regret to say that our price was unreasonable, it ... a discount of 5%. 1.5.3. Fill in prepositions or adverbial particles wherever necessary. Discuss the text. Since modern markets are not normally located ... any special place, buyers and sellers do not always have to meet face- ... -face. They may communicate ... letter, ... cable, ... telephone or ... their agents. ... a perfect market, such communications are easy, buyers and sellers are numerous, and competition is completely unimpeded. There can be only one price ... any given commodity: the lowest price which sellers will accept. There are, however, no really perfect markets, because each market is subject ... its own peculiar conditions. Monopoly is one ... the peculiar factors which can affect ... the sale and purchase ... certain commodities. ... some markets, there may be only one seller or a cartel ... sellers working very Составной предлог subject to (при условии) для выражения условия. Подлежать, подчиняться, быть подверженным чему-либо. 3 Подвергать (подвергнуть) кого-либо чему-либо. 1 2 20 closely together to control ... prices. The result ... such monopolistic activity is fixing prices ... a level suitable ... the seller, a level which may bring ... him artificially high profits. 1.5.4. Complete each statement below with the correct term from the list that follows. (a) supply (b) demand (c) law of demand (d) elasticity of demand (e) demand curve (f) demand schedule (g) substitution effect (h) change in quantity demanded (i) complementary products 1. A graph that shows the amounts consumers are willing to buy is a ... . 2. The seller’s side of each transaction is called ... . 3. The ... is usually greater for very expensive products. 4. A chart used to study the relationship between price changes and quantities consumers desire is a ... . 5. The movement along a demand curve caused by a change in the price of the good or service is a ... . 6. ... is the concept that as the price decreases, the quantity sold increases. 7. The buyer’s side of each transaction is called ... . 8. According to the ... , when the price of an item increases, consumers will buy more of other items that are similar but cost less. 1.5.5. Find single words for which these words could be substituted. 1. a person who buys different goods 2. those people who sell goods 3. the quantity of a product that suppliers will provide 4. the quantity of a product consumers want 5. a market where goods are sold to the highest bidders 6. to give an amount of money to another person if he returns it within the shortest possible time 7. money that you have in your wallet 8. the loan you are given by a friend or relative 21 WATCH OUT: translator's "false friends" economy economics economic economical 1.5.6 a. Look up the dictionary to find the difference between the words economy, economics, economic, economical. Match the words with their meanings. 1. economy A the study of the way in which money, industry, and trade are organized in a society 2. economics B relating to economics or the economy the government's economic policy 3. economic C using the minimum amount of time, effort, or language that is necessary 4. economical D the state of a country or region in terms of the production and consumption of goods and services and the supply of money E the use of the minimum amount of money, time, or other resources needed to achieve something, so that nothing is wasted b. Fill in the blanks with economy, economics, economic, economical. 1. Zimbabwe boasts Africa's most industrialised ……………. . 2. The Japanese ……..... grew at an annual rate of more than 10 per cent. 3. If you make …………. , you try to save money by not spending money on unnecessary things. 4. They will make …………… by hiring fewer part-time workers. 5. He gained a first class Honours degree in ………….. . 6. The …………. of a society or industry is the system of organizing money and trade in it. 7. He is regarded as a committed supporter of a radical freemarket …………. policy. 8. …………. growth is encouraged in a market system, but it has advantages and disadvantages. 9. The staff are ………….. with their actions. 22 10. Something that is …………… does not require a lot of money to operate. 11. Someone who is …………… spends money sensibly and does not want to waste it on things that are unnecessary. 12. His gestures were ………… , his words generally mild. 13. Although it is an elementary law of ………… that the lower the price, the greater the sales, there are numerous exceptions. 14. Every society must produce capital goods as well as consumer goods to meet future …………. needs. 15. Long-range ………….. growth depends on the continued production of capital goods. Presenting information 1.5.6. a. Read the following text and decide which of the following summaries most fully and accurately expresses the main ideas of the text on pricing. Account for your choice. Market prices are determined by the interaction of supply and demand. Companies’ pricing decisions depend on one or more of three basic factors: production and distribution costs, the level of demand, and the prices (or probable prices) of current and potential competitors. Companies also consider their total objectives and their consequent profit or sales goals such as obtaining maximum income, or maximum market share, etc. Pricing strategy must also consider market positioning: quality products generally require “prestige pricing” and will probably not sell if their price is thought to be too low. Firms with excess production capacity, a large stock, or a falling market share, tend to cut prices. While firms experiencing cost inflation, or in urgent need of cash, tend to raise prices. A company faced with demand that exceeds its possibility to supply is also likely to raise its prices. Demand is said to be elastic if sales respond directly to price variations. When sales remain stable after a change in price, demand is inelastic. For example, price cuts can have unpredictable 23 psychological effects: buyers may believe that the product is faulty or of lower quality, or will soon be replaced, or that the firm is going bankrupt, etc. Similarly, price rises convince some customers that the product must be of high quality, or will soon become very hard to get hold of, etc.! A potential customer seeing a price of $499 will register the $400 price range rather than the $500. This is a psychological effect that many sellers count on. Such technique is known as “odd pricing”. Actually most customers consider elements other than price when buying something: the “total cost” of a product can include operating and servicing costs, and so on. Since price is only one element of the marketing mix, a company can respond to a competitor’s price cut by modifying other elements: improving its product, service, communications, etc. Reciprocal price cuts may only lead to a price war, good for customers but disastrous for producers who merely end up losing money. Whatever pricing strategies a marketing department selects, a products selling price generally represents its total cost (unit per cost plus overheads) plus profit or “risk reward”. Overheads are the various expenses of operating a plant that cannot be charged to any one product, process or department, which have to be added to prime cost or direct cost which covers material and labour. Cost accountants have to decide how to allocate or assign fixed and variable costs to individual products, processes or departments. Microeconomists argue that in a fully competitive industry, price equals minimum average cost equals break-even point. Summary 1 A firm is a unit that organises the production of goods and services. The prices companies charge for their products depend on many factors: their costs, the level of demand, competitors prices, financial goals, marketing strategies, market positioning, production capacity, stock size, inflation, and so on. Yet pricing strategies are often unsuccessful because of the unpredictable psychological reaction of the customers. Consequently, companies often concentrate instead on other elements of the marketing mix: product improvement, service, communications, etc. Even so, companies 24 have to make sure they cover direct costs and overheads. This usually results in a price that equals both marginal cost and a breakeven point. Summary 2 Obviously, the most important factors in pricing decisions are production costs (including overheads), the level of demand, and the going market price. Yet broader company objectives, and profit or sales goals, and market positioning are also important. There are also lots of circumstances that might cause companies to change their prices: excess production capacity, large stocks, or a falling market share on the one hand, or cost inflation, an urgent need for cash, or demand that exceeds supply, on the other. Yet perfectly logical decisions regarding prices thought to be elastic can have unpredictable psychological effects. It is also clear that customers are influenced by elements other than price, so companies can equally modify other elements of the marketing mix. In a competitive industry, price is generally not much greater than marginal cost and break-even point. Summary 3 A company’s total objectives and profit or sales goals are important but companies’ pricing decisions generally depend on such factors as production and distribution costs, consumers’ demand, and competitors’ prices. Of course there are situations in which a company will raise its prices (e.g. excess production capacity, a large stock, or a falling market share) or lower them (e.g. excessive demand, cost inflation, a cash shortage). In general, the lower the price, the greater the sales. Pricing is often strongly influenced by psychological factors, so companies take account of them and use techniques such as odd pricing. Companies can also change other elements of the marketing mix, especially if this allows them to avoid a damaging price war. Whatever happens, companies generally have to cover a product’s total cost and make a profit. This is difficult in a competitive industry, as here price will only equal break-even point. 25 b. Organize the pricing techniques mentioned in the text into categories under the given headings: PRICE EMPHASIS PRICE DE-EMPHASIS 26 Communication Skills Business E-mail Writing Familiarize yourself with the following information. Find answers to the following questions: 1. Which points can be omitted in e-mails? 2. What should an e-mail writer avoid? 3. If you write an e-mail, does it mean that it should necessarily be informal? Today, the Internet has become the predominant medium for sending letters. The term e-mail, meaning electronic mail, has entered into everyday speech. The following are some tips to help you when you are writing business letters through email. A heading is not necessary in an e-mail (your return address, their address, and the date). Use a descriptive subject line. Avoid using an inappropriate or silly e-mail, register a professional sounding address if you don't have one. Use simple formatting, keep everything flush with the left margin; avoid special formatting and tabs. Keep your letter formal, just because it's an e-mail instead of a hard copy is no excuse for informality (don't forget to use spell check and proper grammar). Try to keep your letter less than 80 characters wide, some e-mail readers will create line breaks on anything longer and ruin the formatting. If possible avoid attachments unless the recipient has requested or is expecting an attachment. If it is a text document, simply cut and paste the text below your letter and strip off any special formatting. If the person’s name is unknown, address the person's title i.e. Dear Director of Human Resources. 1.5.7 a. Match the messages with the appropriate subject line. 1. _____ declaring a promotion 2. _____ asking for a favour 3. _____ department’s workload 4. _____ meeting request 5. _____ meeting summary 27 A. A lot of things changed since we last talked. I thought it would be good to meet and to catch up with everyone involved on the project. Could we meet on Thursday at 10.00 in conference room 3? Please let me know by the end of the day if that’s convenient to you. B. As you know, we have a lot of new projects starting next month. I’m attaching a revised schedule. As you will see, several projects have overlapping deadlines. This shouldn’t be a problem, with the help we are going to get from our new hires. If you have any questions, please don’t hesitate to contact me. C. Just wanted to give you an idea of what we talked about at the meeting with Duncan & Co. yesterday: Budget: was approved by both parties deadline: Duncan wants to push up to August, 1; we are waiting to hear from Peter on that background info: Duncan will send us the documentation we requested next week D. It is my pleasure to announce the appointment of Joanna Harvey to the position of Advertising Manager. J. Martin will be responsible for the sales side. E. I’ve been having problems with my computer lately, and it looks like it won’t be fixed today. Since you’re going to be out this afternoon, could I use your computer to finish my report? Let me know if it’s OK with you and what time your machine will be available. Thanks. b. Identify the person each message was written for. 1. _____ Hi, Will, 2. _____ Dear Pat, 3. _____ Dear Mr. Ramirez, 4. _____ Dear Sir or Madam, A. Thank you for sending me the sample of the new order form. It’s a better design and is easier to understand. We still have several boxes of the original form, but I think that by next month we will run out. We’ll get the new form printed up. 28 B. I saw your advertisement for hiking boots in New Horizon magazine. Please, send me a catalogue. C. How’s everything? Really busy here, and wouldn’t mind a little break. Do you have any plans for lunch today? Want to get together? Let me know. D. It’s been a pleasure working with you for the past 3 years. You have contributed so much to the department with your enthusiasm, sense of humour, and great work ethic. We are going to miss you. Wishing you all the best in your new job. Stay in touch. c. Write an e-mail for the following situation. Dave Blake works at an advertising agency. A management position has recently opened up at Harper & Grant Ltd. and Dave’s friend, John Martin, sent him an e-mail, asking him if he could recommend anyone. He knows someone who he thinks would be ideal. Her name is Joanna Harvey, and she was a manager at an agency where Dave used to work. In Dave’s last message to John, he wrote that Joanna would be perfect, but that it might not be a good time for her to change jobs right now, as she has a difficult family situation at the moment. John e-mails back and asks what he means. Dave is unsure how to say that Joanna takes care of her elderly mother. He really does think Joanna would be great for the job and wants her to have the opportunity to be considered. Write Dave’s e-mail. 1.5.8 Abbreviations have always been common in the business world. With the widespread use of e-mail, it’s becoming common practice to abbreviate any well-known fixed phrases. What do the following stand for? a. From: To: Subject: Jenny Lo Tom Clark FYI FYI – Mr. Barnes will not be in the office today 29 b. From: Dan Mills To: Anthony Barn Subject: Sales figures Thank you for the updated sales figures for China. BTW, I’m going there next week to meet with the new clients. c. From: Roza Menendez To: John Ryan Subject: Business plan Have you completed the business plan yet? Mr. Collins has been asking about it. If you are submitting it later today, NRN. d. From: Arnold Gott To: Lydia Johnson Subject: Preliminary desk research revision Lydia, I need to see the revised preliminary desk research ASAP. 1.5.9 Young people have developed special short-cuts for communicating on line, which are sometimes called “emoticons” as quick ways to share reactions. Here are some of the most popular ones. = :-) - smiling; agreeing = :-( - frowning, sad = :-| - indifferent :-[ - disappointed :-D - laughing ;-) - winking What other “emoticons” do you know? When do you use them? 30 1.6 DIALOGUE A. Replace the Russian words and phrases by suitable English equivalents in the appropriate form. Reproduce the dialogue. A.: Look! A (кривая спроса) is like a snapshot. Though I can’t say for sure, I think it shows the relationship between the (требуемое) quantity and the (цена) at one instant of time. If the the price of a product changes and everything else remains the same, the required quantity changes and will move to a new point on the (кривая спроса). B.: I take your point. But I suppose that there should be several factors that (влиять на спрос), and each may create an entirely new (кривая спроса). A.: You have my full support. First as (потребители) earn more money they are able to spend more. Consequently, the price of an item seems lower. If your (еженедельный доход) increases by $50, you might go to more movies. The same idea applies to groups of consumers. If total consumer income (увеличиваться), the demand (увеличиваться). If consumer (доход) decreases, products become (относительно) more (дорогой); so the demand decreases. B.: I see. It’s really common knowledge that one (основная потребность) of all people is food and (изменения) in the (снабжение) of food affect everyone. I know that Arthur Stupay, a packaging industry analyst, says that changes in food packaging alone will change how people live in the future. A.: I reckon that improvements in the methods of processing food have repeatedly allowed (поставщики) to (увеличивать поставку) at a given (стоимость). Now, the list of ingredients on a package of food make it more attractive to (потребители). B.: But it’s an open secret, that more than one product seldom (удовлетворять потребительский спрос). If the price of pork doubled, many (потребители) would buy (заменители), such as beef or chicken. (Спрос) for those products would (расти) while the (спрос) for pork would fall. 31 A.: That’s one way of looking at it. But the (спрос) for a product is influenced by the price of goods or (услуги) used with that product. For example, hot dog buns are generally used with hot dogs. If the (спрос) for hot dogs suddenly (снижаться), the (спрос) for hot dog buns probably will (снижаться) too. B.: Also I noticed that the demand for butter (иметь тенденцию) to be elastic because margarine is available as a (заменитель). The demand for gasoline (иметь тенденцию) to be inelastic – and will remain so until vehicles using a low-cost fuel become (доступны). A.: Exactly. If you are close to public transportation, for example, your (спрос) for a car is more elastic than it would be if you had no alternative means of transportation. B.: You must be tired. Let’s call it a day1. We’ll meet later this evening. B. Share your ideas with a partner or a small group and discuss 1 factors that influence the demand curve; the underlying causes of changes in demand; examples how packaging influences the way of life; the interaction between supply and demand. Давайте закончим на этом. 32 1.7 Reading for Cross-cultural Associations a. Read the excerpts below about the peculiarities of business etiquette in different countries. Discuss how it compares with the situation in Russia. A. All transactions and most social encounters in India begin with the established ritual of exchanging visiting cards. A person's business card is a small card which they give to other people, and which has their name and details of their job and company printed on it. Like everywhere else, politeness in India is a virtue. You'll quickly find that most Indians go out of their way to be friendly and helpful. A traveller will frequently be asked about his nationality, name, marital status and children, though the limited spread of English tends to restrict the scope of most conversations. It can be a bit tedious to go around like a walking curriculum vitae, but just keep smiling. This curiosity is built on the best of friendly intentions. No topics of conversation are taboo, providing you don't take up an intransigent or arrogant stand. On the contrary, Indians are extremely eager to explain their country and their beliefs to foreigners. Indians seldom shake hands when greeting people (other than during the course of official business); instead, you'll soon learn to namaste1 with both hands brought together at face level. B. South Americans are very friendly and warm, but they dress and behave a little less casually than the Western Europeans. For instance, style is the most important factor in Brazilian dress. Wellcut, fashionable clothing is expected of Brazilian executives. Many male executives forgo neckties. Still, Brazil is very large, and the degree of casualness varies from city to city. However, the Argentines have adopted British traditions towards clothing, usually wearing formal, conservative outfits, even in many social situations. Americans are considerably less formal than people in most other countries. People there don’t like to talk about business when they first meet you – they’d rather wait to get to know you a little bit 1 Индийское приветствие. 33 first. If you are invited for dinner or a social gathering, don’t bring up business until you sense the time is right. You’ll definitely know it’s time if the host brings up the subject himself. C. British business executives are likely to have a new, custom-tailored wardrobe, though conservative styles are still preferred. Unlike in the USA, businessmen in the UK do not usually loosen their ties or take off their jackets in the office. Handshakes are now a norm in business introductions – or rather, they are the norm when people in business are introduced to each other for the first time. Ironically, the first introduction, where a degree of familiarity is expected, is the easiest. Though the English handshake is always somewhat awkward, very brief, performed “at arm’s length”, and without any of the spare-hand involvements – clasping, forearm patting, etc. At subsequent meetings, particularly as business contacts get to know each other better, a handshake greeting often starts to seem too formal, but cheek-kisses would be too informal, so no-one is sure what to do. b. c. Sum up the specifics of business etiquette in different countries covered by the extracts above. Visiting cards Hands-shaking Wardrobe: style Body language Rules of conversing Rules of greeting and parting Discuss how the information above compares with the situation in Russia. d. Search the Internet for supporting materials. Arrange the findings in the Power Point presentation 34 1.8 CASE-STUDY & ROLE-PLAY Consumer skills KNOW YOUR RIGHTS The case Bob Mitchell, a newspaper reporter from Indiana, purchased a new car that had problems. Mitchell bought the car in spring. For about three months it ran well. Then, suddenly, the heat light went on, indicating that the engine was overheating. Bob’s problems began. During the next 12 months, the car was in and out of the repair shop. Repeated efforts of the mechanics could not solve the problem of overheating. The warranty1 covered some of the repair work, but not over $2,000 of it. By July, the need for repairs seemed as great as ever. Bob finally decided he had purchased a lemon - poorly constructed car with several defective parts. He traded in his car 2 and bought one from another company. In the USA laws, designated to protect consumers like Bob, are called lemon laws and give consumers certain rights if they buy a new car that has repeated problems. If repairs take the car out of use for a specified period during the first year, the owner may present the case to a mediation panel. 3 The panel can decide to award the owner a new car or return the purchased price. Case Analysis Step 1. Single out the main facts of the proposed text. Present them in a short review. Step 2. Clarify the Issue: Dwell on the need for warranty, using additional information. Elaborate on the word combination “to trade in something”, does this practice exist in Russia? 1 Гарантия качества продаваемого товара. If you trade in an old car or appliance, you give it to the person you are buying a new one from so that you pay less. (Oтдавать старую вещь в счёт покупки новой) 3 Коллегия посредников 2 35 Role-playing Situation You have bought a tablet. It seemed to work in the shop. When you got home, you found that it was faulty. What you must decide: Go back to the shop and try to cancel a purchase and ask for complete refund. Cast Student A Student B Student C Student D Shop-assistant Manager of a shop Enact the following talks between: a. Student A, who has bought a faulty tablet and Student B, who sympathises with his friend, but is of little help. Student A Your newly-bought tablet seemed to work in the shop, but when you got home it started glitching, and now it is almost unusable. Clarify the way you determine goods as satisfactory. The first thing that comes to your mind is that the goods must not be broken or damaged and must work properly. The second thing that you find important is that the goods must be as described – whether on the pack or by the salesman. A hair-drier which the box says is blue should not turn out to be pink ... . Finally, the third principle comes to your mind: The goods should be fit for their purpose. Make use of the helpful phrases: Can I have a word with you? I’m sorry I don’t know much about it, but ... . I am inclined to think ... . I may be wrong, but I think ... . No, that’s no use. Oh, you do, don’t you? 36 Student B You think that complaining about faulty goods or bad service is never easy. You, as most people, dislike making a fuss. However, when you are shopping, it is important to know your rights. You are quite sure that if the shop sells you faulty goods, it has broken its side of the bargain. Try to find out what is meant by satisfactory. You seem to know that this is “merchandise quality”. Before you decide to make a purchase, carefully check the item description. You agree that a pair of shoes the salesman says is leather should not be plastic. It reminds you of the case when you bought a glue said to mend a broken china, but it didn’t. Still you don’t know when you have the right to return the goods and have a complete refund. Advise your friend to consult Student C, who is an experienced buyer. Make use of the helpful phrases: As far as I know ... . I take your point … . May I interrupt? It’s really common knowledge that ... . That’s one way of looking at it. But ... . It reminds me of … . 1 Half a loaf is better then no bread . I am afraid I haven’t been of great help to you. b. between Student A and Student C, who has already successfully applied to the shop for a refund: Student A Brief your partner on the situation and ask for advice. Repeat that your tablet worked in the shop, but started glitching at home. Ask Student C if you will be entitled to any compensation when, for instance, without misuse your shoes came apart after only one day’s wear. It is clear to you that situations differ. Make use of the helpful phrases: Please, let me explain! I don’t know. It was right when I tried it. 1 Лучше полбуханки, чем ничего. (Ср.: На безрыбье и рак – рыба.). 37 As far as I remember ... . Really? But that isn’t the case with me. Do you mean to say ... ? Yes. Good idea. Student C You know that if goods are faulty when you first inspect or use them, you should go back to the shop, say that you cancel the purchase and ask for a complete refund. If the customer prefers, he can accept a repair or a replacement. Explain to your partner that if goods break down through no fault of his, after he has used them for a time, he may still be entitled to some compensation. In some cases it would be reasonable to expect a complete refund. You know that when the washing machine irreparably broke down after only three washdays, your mother got a complete refund. But if the washing machine worked perfectly for a while and then broke, one could only expect some of the purchase price back. You try to make your partner understand that he and the supplier must negotiate a reasonable settlement. Make use of the helpful phrases: I am an old hand in it. Though I can’t say for sure ... . Pardon? (What did you say?) 1 Look, where there is a will there is a way . I dare say you are right. Well, I supppose you can always ... Look here! There is nothing to worry about. c. between Student A and Student D Student A Put your friend into the picture and ask for advice. You decide to go to the shop. You feel persuaded to make a complaint. Stress that when the customer buys something from a shop, he is making a contract that a shop will consider complaints if the goods are not satisfactory. But you want to make sure if this contract means that 1 Было бы желание и выход из положения найдется. 38 it’s up to the shop – not the manufacturer – to deal with your complaints if the goods are not satisfactory. Make use of the helpful phrases: I’d like to have a word with you. You see ... . And don’t forget ... . Good, I rely on you. What do you mean? I see … . Now, what do I do? Student D You have just joined your friends and heard the end of the conversation. You think that the decision is justified because the law is on the right side. A customer is not asking a favour to have faulty goods put right. Remind that one should stop using the item as soon as the fault is discovered. Remind that a customer can’t complain about defects that were pointed out to him, or that a customer could reasonably have been expected to notice. Suggest following your friend to the shop. Make use of the helpful phrases: Why such face? What’s wrong? You don’t say so! I am sorry to hear that. What is the matter with it, exactly? Is it still under guarantee? I am always willing to lend a hand. And I must admit that ... . 1 Don’t make a mountain out of the molehill . d. talks between Students A and D, a shop-assistant, and the manager of a shop. Student A Go to the shop to make a complaint. You paid cash, and you didn’t keep the receipt. Is the shop-assistant is unable to resolve your problem, you want to see that person’s supervisor. If the salespeople do not meet your complaint, you will go to consumer protection 1 Не делай из мухи слона. 39 agencies or, as a last resort 1, you may decide to file a lawsuit2 though it is expensive and time-consuming process. Make use of the helpful phrases: I am sorry to bother you but … . I’m not at all satisfied with … . But I am a regular customer. Mind you, … . Look, if you don’t ... we will be forced to ... . You needn’t remind me of such things. Sorry, my fault. Shop-assistant Find out whether there is any receipt kept. Remind of the necessity to keep any receipts one is given. If a person has to return something, the receipt will help to prove where and when it was bought. Most consumer problems can be straightened out quickly. Make use of the helpful phrases: What can I do for you? I think you may have forgotten … . That’s all right! I hope this can be settled. Take it easy! You should see the Manager. I was glad to help you. Manager of a shop Find out if the customer checked the tablet before s/he left the shop. Examine the thing. Ask the customer to show how s/he operated the tablet. Help him / her to do it in the appropriate way. Remind that it is necessary to read the instructions carefully first. Make use of the helpful phrases: There is no reason for you to get so excited. However we can offer ... . I’m sorry to have to say this but ... . 1 2 в крайнем случае подать иск 40 It may have slipped (from) your mind, but … . Don’t worry! It’s perfectly all right. It really doesn’t matter. The pleasure was all mine. Student D Formulate the four golden rules of a wise buyer. 1. 2. 3. 4. There are four golden rules: Examine the goods you buy at once. If they are faulty, tell the seller quickly. Keep any receipts you are given. If you have to return something, the receipt will help to prove where and when you bought it. Don’t be afraid to complain. You are not asking a favour to have faulty goods put right. The law is on your side. Be persistent (but not aggressive). Explain the problem simply and with courtesy. If your complaint is justified, it is somebody’s responsibility to put things right. Make use of the helpful phrases: I can see you are very busy. Unless you pay the refund within … days, we will place the matter in the hands of our solicitors / attorneys ... . We have no reason for regret. Everyone must have his own job and do it. We are sorry to have troubled you. Making a Decision In coming to a decision, consider the following points: What an educated buyer should bear in mind when making a purchase. The rights of a buyer. The responsibilities of a seller. What other factors should be discussed? Your decision: 41 Appendix Some useful hints on complaint and apologies If you want to make a complaint to a person you don’t know well, be careful! A direct complaint or criticism in England can sound rude or aggressive. It may be best to mention the problem more indirectly by saying: I’m sorry to have to say this but ... . I am sorry to bother you but ... . I think you may have forgotten ... . It may have slipped (from) your mind, but ... . In some situations, but only if you are talking to someone you know really well, it may be necessary to say, more directly: I’m not at all satisfied with ... . And in extreme cases, if you have already tried more polite methods, you may even have to threaten someone like this: o Look, if you don’t send your engineer to repair the machine we will be forced / obliged to cancel our next order. o Unless you pay the account within seven days, we will place the matter in the hands of our solicitors / attorneys ... . If someone complains to you, or if you think they are likely to complain, it may be wise to apologise (even if it wasn’t really your fault) and then promise to put things right by saying: Sorry, my fault. I’m very sorry, I didn’t realise. There has been a slip-up in our department. And you can accept someone’s apology by saying: That’s all right! It’s perfectly all right. It really doesn’t matter. If you don’t want to accept responsibility or blame someone else, you could explain that the problem is due to: a clerical error, a computer error, a typing error, a misunderstanding, a bad telephone line, pressure of work ... . 42 1.9 GRAMMAR BACK UP PRACTICE WITH MODAL VERBS (I) LEAD-IN Ask yourself these questions when checking modal verbs: 1. What are modal verbs? Is there any difference between them and all other verbs? Verbs like can, may or must are modal verbs or modals. We use them with other verbs. There are ten modals: can, could, may, might, must, will, would, shall, should, ought to and three “semimodals”: need, dare and used to. They are often characterized as defective1 verbs because they lack some forms: they have no infinitive, participle, gerund, no –(e)s in the 3rd person singular; have no analytical forms (future tenses, perfect tenses, etc.); form negative and interrogative forms without the auxiliary verb to do. The cost of a product can include operating and servicing costs. The goods must work properly tomorrow. May I make a suggestion? You shouldn’t accept the payment. 2. When do we use modal verbs? 1. In their first use, modal verbs have basic meanings which are given in dictionaries: can/could may/might will/would shall after I/we should/ought to must needn’t 1 ability permission prediction prediction duty total obligation no obligation Partners can communicate by e-mail. You may change the terms of delivery. The consumers will make a complaint. We shall fix it, I’m sure. You ought to pay as you are told. You must be in time for the meeting. You needn’t pay the penalty. Недостаточный. 43 2. The second way we use modals is to express degrees of certainty and uncertainty. We use nine of these verbs for this purpose (not shall). John might be right about the new customer. (very uncertain) John could be right about the new customer. (fairly certain) John must be right about the new customer. (almost certain) John can’t be right about the new customer. (almost certain) 3. Do modals have tense forms? Modals are not “complete” verbs. For example, we use verbs like must and can to refer only to the present or to the future. We have to make up the “missing parts” of must with have to. In the same way we use be able to to make up the “missing parts’ of can. USE ability permission asking for permission to do something PRESENT/FUTURE Prices can change daily. During recession prices could change daily. She is able to make a complaint. The manager said she was able to make a complaint. Can I borrow your marker pen? (informal) Could I use your pen? (polite) May I ask a question? Might I speak to the manager? asking for permission not to do something Must I deliver these desks before a certain date? Need I deliver these desks before a certain date? permission to do or not to do something You can borrow my dictating machine. (informal) You may use the phone. (formal) PAST You needn’t do it – – He was allowed to borrow my dictating machine. (not: could) – – 44 refusing permission to do something necessity You can’t/mustn’t borrow my pad. (informal) Things may not be left unattended. (formal – written notice) I must call him back. (I say so) You have to pay a penalty clause. (necessity coming from outside the speaker) I’ve got to send a reply urgently. (informal) The line needs rescheduling. / The line needs to be rescheduled. (It’s necessary) They ought to write it in full. (It’s necessary) absence of necessity obligation duty possibility He wasn’t allowed to / couldn’t borrow my pad. – I had to call him back. (I was obliged to.) He had to pay a penalty clause when they failed to deliver on time. I had to send an urgent reply when they asked for it. The line needed rescheduling. / The line needed to be rescheduled. (It was necessary) They ought to have written it in full. (It was necessary, but they didn’t) You don’t have to/don’t need I didn’t have to do it. to/ needn’t do it if you don’t (It wasn’t necessary) want to. (It isn’t necessary) I needn’t have done it. (It wasn’t necessary for me to do it, but I did) I didn’t need to/didn’t have to do it. (it wasn’t necessary for me to do it, but I did.) We must honour the date. (We We had to honour the date are obliged to; we say so) when we made a delivery. (We were obliged to) We have to honour the date. We had to honour the date (We are obliged to; the when we made a delivery. contract says so) Everyone must obey the law. The monopolists had to obey the law then. The buyers ought to be more The buyer ought to have been careful. (It’s the right thing to more careful. do but they do not always do (It was the right thing to do but it) he did not do it.) They can meet the claim. – (90% certain) 45 probability The visitor may be talking to the manager now. (50% certain; it’s possible that he is talking) The goods could still be in the warehouse. (50% certain, it’s possible they are there) The buyer might ask a refund. (40% certain, perhaps he wants a refund) It is likely that the seller will agree to the penalty. He is likely to sign the contract. The prices will drop soon. (100% certain; prediction) The customer should ask for a discount. (90% certain; future only; he’ll ask for a discount.) The visitor may have spoken to the manager yesterday. (Perhaps he spoke to the manager.) The goods could have been damaged. (Luckily, they were safe) He might have forgotten. (Perhaps he has forgotten.) It was likely that the seller had agreed to pay the bill. He was likely to sign the contract the day before. – The customer should have asked for a discount by now. (He has probably received it by now.) The goods ought to be here by The goods ought to have been now. (90% certain; they will here a week ago. (They have probably be here) probably come) She must be working. (90% She must have been working. logical assumptions certain – positive; I’m sure she (Positive; I’m sure she was is working ) working) / deduction He can’t be an efficient He can’t have handled advertising manager. advertising efficiently. (Negative; I’m sure he is not (Negative; I’m sure he didn’t efficient) handle advertising efficiently then) She couldn’t be in the office. – (Negative; I don’t think she is in the office) You should ask for a refund. You should have asked for a advice refund. (Lost chance; but you giving advice didn’t) You ought to honour the You ought to have honoured contract. (I advise you; most the contract. (Lost chance; but businessmen believe this) you didn’t) You had better honour the – contract. (It’s a good idea) 46 asking for advice doubt requests offers suggestions prohibition order asking for instructions criticism Shall I ask for a refund? Can it be late? Could it be late? Will you phone the Sales department? Would you mind reading this e-mail? Can I do anything for you? Shall I do it for you? Would you like me to help you? Shall we place an order with them? We can/could do it now if you wish. You can’t use your camera here.(you aren’t allowed to) You mustn’t use your camera here. You may not use your camera here. You will do it. You are to do it. You must do it. Shall I do it? Can it have been late? Could it have been late? – You could at least warn me about it. – You could have at least warned me about it before the meeting. They should have honoured the delivery date. (But they didn’t) They ought to have paid in time last month. (It was the right thing to do but they didn’t do it) You might have paid in time. – reproach – You might pay in time. 47 They couldn’t use your camera there. (They weren’t allowed) Exercise 1 Task 1. Familiarize yourself with the text. Consult the Grammar notes and comment on the use of the word combinations in bold type. Translate the text into Russian. Peter Wiles, Hector Grant’s nephew, is the Production Manager. He is going to have a very hectic day, but he thinks he will have a quiet morning and will be able to dictate into a dictating machine a long report which his secretary, Jane, can type back later. John Martin comes into Peter’s office very worried. He has just received a memo from the Production Department telling him that there will be a delay in delivery of some special plastic coated steel sheets. These sheets are wanted for an important order. They will form part of a console for a computerized control system, the place where one man can sit and be responsible for the production of a large, fully- automatic chemical plant. To get the order, Harper & Grant had to promise to deliver these desks before a certain date. If they fail to deliver on time they will lose money, because there is a penalty clause in the contract. To make these desks, the firm need steel sheets, which are coated, or covered, with plastic. The plastic coating is finished in a heat-treatment oven called an annealing oven. But the steel company who supply these sheets will not be able to deliver on the date they promised: that is to say, they cannot honour their contract with Harper & Grant. But Harper & Grant did not have a penalty clause in their contract with the suppliers, so they may lose money unless something can be done about it pretty quickly. Note that if the goods are not delivered on the day on which they were promised the buyer may send a letter to complain and ask the manufacturers, or suppliers, to hurry up the delivery. If the buyer needs the goods very urgently indeed he may send an e-mail if he cannot get through by telephone. Task 2. Retell the text in the past tense. 48 PRACTICE WITH ABILITY 1. What is the difference between can/could and be able to? a. When we want to say that someone had the ability to do something and did it in a particular situation, we must use was/were able to and not could. “Bell & Sons” were able to affect the sale and purchase of aeroplanes as they had a monopoly in this kind of transport. b. There is an exception with the verbs of perception and some verbs of thinking, such as see hear smell taste feel understand think remember We use can/could with these verbs when we actually did these things in particular situations. The price was printed in red and we could see it distinctly. c. We use could not for both general ability and particular situations. As the buyer and the seller couldn’t meet in person they communicated through their agents. d. When we want to say that someone had the opportunity or ability to do something in the past but did not do it we use could have + past participle. The company could have obtained complete control over oil in the country but they lost their chance. e. Can is not used for expressing the future, so we use be able to in such cases. You will be able to find a job if you look through newspapers. 49 Exercise 1 Complete the sentences using can, could or be able to in the affirmative or negative form. 1. Governments will _________ take legal actions to restrict or halt business activities of monopolies through anti-trust laws. 2. In the mid-1980s only 80% of all teenagers who wanted to work _________ find a job. 3. Though he was a good engineer he _________ find a job. 4. I _________ understand why you want to meet the manager face-to-face. 5. How long have you _________ control the market? 6. The manager wasn’t in the office for very long, but we _________ speak to him for a few minutes. 7. Be careful when you fill out an application, because this step _________ be critical. 8. He always bought a lot of newspapers and thus _________ read all ads. It didn’t take him long to find a job. 9. As public job agencies _________ help you, try a private firm. 10. John _________ not cope with the increasing public relations work. He needs somebody to help him. Exercise 2 If the word or words in bold type are used incorrectly, write the correction in the space. 1. Newspaper ads were able to become a good source of openings, but there was no newspaper in that settlement. ______ 2. He could have got the job, but he even didn’t try to. _________ 3. The employer wasn’t able to look through all applications at once. _________ 4. We could have known all about prices for that commodity in the market as we studied the problem closely. _________ 5. They could have contacted him, but he didn’t leave his name and address. _________ 6. You were able to read the instructions if your wife didn’t throw it away with the box. _________ 7. Peter couldn’t have believed that the Managing Director had really appointed the woman applicant advertising manager. _________ 50 8. She didn’t speak very frankly, but I could understand that I was quite high on her list. _________ 9. He could brief the agency on the kind of advertising campaign we want only because the new advertising manager turned out to be quite efficient. _________ 10. She could have become an account executive a year ago, but decided to join a training scheme run by Palmer & Vincent Agency for a year. _________ 11. A lot of people thought the manager could discuss the layout of the leaflets with the clients, but he didn’t. _________ 12. The firm could have to advertise on television, but they didn’t plan to go into television. _________ 13. We were able to give our account to a firm of advertising agents, but we were not satisfied with their performance. _________ 14. John Martin could have supervised an advertising campaign if he was not so busy. _________ PRACTICE WITH PERMISSION 1. How can we ask for permission? We use can, could, may and might to ask for permission. Could is a polite form; may and might are more formal. Could / can / may / might I ask you a personal question? Might / may I make a suggestion? 2. How can we give or refuse permission? We use can or may (not could or might) when we personally give or refuse permission. Could I use your name as reference? – Of course, you may. Can I look at the proofs? – Certainly, you can. We also refer to “some other authority” that gives/refuses permission: 51 You can/cannot or You are allowed to/not allowed to You can/cannot or You are permitted/not permitted to You mustn’t or You are forbidden to smoke here. 3. What is the difference between different verbs used to talk about permission? a. When we talk about things that are already permitted or not permitted we use can(’t) or be (not) allowed to. Foodstuffs cannot/are not allowed to be sold after the expiration date. Monopolies Commission can/is allowed to examine all special arrangements and mergers. b. But when we want to say that someone had permission to do something and they did it in a particular past situation we must use was / were allowed to (could is not possible). Certain producers were allowed by law to have a full monopoly over the sale of their goods. Exercise 1 Complete the sentences using one of the words or word combinations. 1. If things are faulty when you first use them, you ... go back to the shop and ask for complete refund. (A) can (B) could (C) was allowed to 2. ... I ask you to show me that washing machine in operation? (A) might (B) could (C) was able to 3. All troubles arose from the fact that Fox & Co. ... import their produce. (A) could (B) were allowed to (C) are allowed 4. Could I look through your magazine? – Of course, you ... . (A) may (B) could (C) might 5. Now everybody ... use these new telephones in the hall but for some fee. (A) is allowed to (B) could (C) might 6. Until the 19th century people ... travel freely between most countries without a passport. (A) couldn’t (B) are allowed (C) could 52 7. After talking to the director we ... make a special school bulletin board for ads. (A) could (B) were allowed to (C) might 8. Applicants ... to present references of individuals who could attest to their work abilities. (A) could (B) might (C) were allowed 9. The firm ... advertise on television because it was much too expensive. (A) was not allowed to (B) couldn’t (C) could PRACTICE WITH OBLIGATION AND NECESSITY have to/don’t have to don’t need to/needn’t must/mustn’t have got to/haven’t got to 1. What is the difference in use between must and have to when they express obligation and necessity? a. We normally use must when the authority comes from the speaker. And we use have to when the authority comes from outside the speaker. The goods must be as described on I have to cancel this purchase. the pack (I insist). (My family insists as the goods are damaged). We must keep the receipt, it’ll help us I have to see the employer at to prove where and when we bought 10 o’clock. (I’ve got an the thing (I think it is necessary). appointment). b. We only use must (+ infinitive) to talk about the present and the future. When we talk about the past we use had to. Before beginning to interview the candidates the manager had to study their applications. c. We also can use have got to (but not for the past actions), which is more informal; have to is used for things that happen repeatedly. Do you often have to accept a repair or replacement when goods are faulty? 53 I’ve got to accept two repairs this evening. 2. How can we express the absence of necessity to do something? a. We use mustn’t when there is a strict prohibition or an obligation not to do something. And we use don’t have to when it is not necessary to do something. You mustn’t speak to clients yourself. (Do not speak.) Buyers and sellers do not always have to meet face-to-face. (It is not necessary.) b. We can also use other expressions to say that it is not necessary to do something. I don’t need to look for a job. I haven’t got to look for a job. I needn’t look for a job. c. We often use needn’t when the speaker gives someone permission not to do something. You needn’t pay me back the money you owe me until next week. (=I give you permission not to pay.) NB! Instead of needn’t, you can use don’t / doesn’t need to. So you can say: We needn’t advertise it. or We don’t need to advertise it. Exercise 1 Choose the correct form. 1. You mustn’t/needn’t pay in cash in an auction. 2. Your decision mustn’t/haven’t to be the result of your tastes, but of the necessity. 3. You mustn’t/don’t need to look through all these advertisements. Here is a letter from Mr. B., he is hiring you. 4. You mustn’t/don’t have to write to Bell & Co., they have just phoned. But we must/have to send our agent there as they insist on it . 54 5. The law of a country mustn’t/needn’t permit producers a full monopoly over the sale of their goods. 6. The Government mustn’t/haven’t got to invent any new laws, the existing anti-trust laws are very effective. 7. You mustn’t/don’t need to negotiate with the supplier, he must/has to make a replacement by law. 8. Robert didn’t need to sell/needn’t have sold his car when he had no money, because a few days later he won a lot of money in a competition. 9. – What sort of advertising campaign are you up to? Television? – Well, it mustn’t/needn’t be television – it’s too expensive. But it must/need to be efficient. 10. This experience is very valuable. You must/have to study it carefully and mustn’t/needn’t ignore it. 11. You needn’t have sold/didn’t need to sell your house to the first bidder. I know several people who would like to have it for a higher price. 12. The Customs needn’t have checked/didn’t need to check all boxes as they found what they were looking for in the first one. 13. You needn’t have made/didn’t need to make changes in your old store house, you only wasted your money. 14. The advertising was adequate, so she needn’t have worried/didn’t need to worry about the sale the way she did. Exercise 2 Complete the sentences using must or a form of have to/have got to. 1. In former days people who wanted to buy or sell something ______ gather on special days in some special place called the market. 2. Analysing the situation we can say that prices will inevitably ______ fluctuate. 3. ______ you ______leave tomorrow? I’d prefer you to stay. 4. The list of the selected applicants is too long, I do know I ______ choose only one of them for the final interview. 55 5. You ______ ask permission any time you want to make some changes, it is inevitable. 6. We don’t _______ agree to a discount, our goods are in great demand. 7. You ______ pack these things very carefully, they are fragile. 8. At an auction buyers ______ quickly decide what price they are willing to pay. 9. In order to get what you want in the market you will ______ outbid all the others who want the same. 10. As there is a pile of applications for the job of an advertising manager, J. Martin ______ go through them and decide which of the applicants have the right qualifications for the post. PRACTICE WITH OBLIGATION AND ADVICE should, ought to, had better, be supposed to, shall 1. When do we use should or ought to to express obligation and advice? a. We can use both should and ought to talk about obligation and duty, to ask for and give advice, and in general to say what is right or good. They should/ought to meet in person if they want to come to a decision. You shouldn’t/oughtn’t to change prices now. Don’t you think the Government should /ought to restrict “cornering the market”? b. We use should/ought to have + past participle to say that someone did the wrong thing in the past: The Government shouldn’t have allowed that several companies obtained complete control over the most important commodities. You ought to have made your requirements more reasonable (but you did not). 56 c. We should not use do with ought to in negative and affirmative sentences. Ought we to place an advertisement with papers? You ought not to come in person, first send in the letter of application. 2. How can we express recommendation or ask for advice, opinion or instructions? a. Had better + infinitive without to expresses a strong recommendation in a particular situation. It refers to the present or future, not past. These goods are in the perishable category, you’d better sell them as soon as possible. You had better not go beyond anti-trust laws. b. We can use shall I? when we want to know someone’s opinion or when we want advice or instructions. Shall I fill the application? How long shall I wait for the answer? Exercise 1 Complete each question using shall I and the most suitable verb in the box. ask get invite look for publish return say speak to tell wear 1. When shall I complete the table? 2. 3. 4. 5. 6. 7. 8. Who _______ about the delivery of pumps? How much money _______ from the bank? _______ an advertisement to find a job? On what date _______ you the money? Where _______ the article? When _______ candidates for the final interview? What _______ the boss if he asks about your practical job experience? 57 9. What _______ to make a favourable impression on the Managing Director at the final interview? 10. Who _______ is calling and with which purpose? 11. _______ the new advertising manager to contact the public at large through newspapers to give correct information about the new pricing policy? Exercise 2 Complete the advice using words from the box. Make several variants if possible. A should D ought to have G should have B shouldn’t E ought to H shouldn’t have C had better F had better not I J oughtn’t to oughtn’t to have 1. – I’ve lost my credit card. – You ______ (report) it to the credit card company immediately. 2. You ______ (break) the law. 3. – I’m bored with my job. – Perhaps, you ______ (look for) another job. 4. – My new car keeps on breaking down. – I think you ______ (claim) a replacement. 5. You ______ (work) so hard; you ______ (relax) more. 6. You ______ (examine) all the arrangements or the seminar may fail. 7. You ______ (make) improvements in the methods of processing food at your factory even a year ago. 8. You ______ (leave) your name and address in the job agency, you could have already got results. 9. You ______ (claim) a refund if goods are damaged through your fault. 10. The plane is just going to take off. You ______ (switch off) your phone. 58 Exercise 3 Render the following into English using the appropriate modal verbs for the expressions in bold type. Управляющий (У.): – Я собираюсь сменить оборудование и должен нанять помощника, который будет с ним работать. Заместитель управляющего по рекламе (З.У.): – Следует ли нам поместить объявление в средствах массовой информации? У.: – Нет необходимости. Если кто-нибудь захочет обратиться к нам за работой, пусть придет сам. Боюсь, у нас не хватит средств на то, чтобы покрыть стоимость рекламы. З.У. – Если мы поместим объявление в витрине, то нам не придется тратиться на рекламу. Мне написать и поместить его? У. – Сделайте это. Нет необходимости тратить средcтва на дорогую рекламу. З.У. – А можно поместить объявления на местной доске объявлений? У. – Да. Между прочим, хотя м-р Браун и квалифицированный бухгалтер, в прошлом месяце ему не удалось свести концы с концами. Боюсь, нам придется экономить. З.У. – Ясно. В прошлом месяце, когда мы с ним разговаривали, он четко не объяснил причин неприятностей, но я смог понять, что нам придется столкнуться лицом к лицу с неустойкой из-за несвоевременной поставки последнего спецзаказа. У. – Возможно, так. Я все же думаю, что мы могли бы предусмотреть сроки поставки в контракте. Exercise 4 Imagine that you have received a lot of applications for a job in your firm. Select only one of them that looks promising. Criticize the rest of them using should/ought to for the absence of curriculum vitae (career history), references or any information about the work record, education, training or qualifications. 59 M o d e l: Applicant No. … ought to have mentioned / written … 1. My name is Jim Brown and I can do great things for your company. I’m 29, unmarried, fit and healthy and I have got qualifications and experience to make me the ideal. 2. I am sure I should be able to manage the department successfully, as I am good at supervising people and at giving clear instructions. I feel that I would be. 3. I wish to apply for the job you have advertised. Please, send me further details. 4. As you would see from my enclosed CV, I have been working for my present company for three years. I joined them as assistant works manager and was promoted to production manager last year. Before that I had two years taking a full-time diploma course. 5. I have just completed a training scheme run by Palmer & Vincent and would be grateful if I could discuss the post available in person and perhaps go into my background and my suitability for the post in more detail. 6. Although my present employers are first-rate and our relationship is excellent, I am keen to extend my range and I am looking for a more rewarding and challenging post. Exercise 5 Give advice as to how to write a curriculum vitae (CV), keeping in mind the specimen below. Dates and information written in bold type appeared as a result of your advice and criticism (1– 10). Write 10 sentences using modal verbs and expressions: should, ought to, ought not to, had better do smth., had better not do smth., needn’t have to, can. Follow the model: – You should write your first name in full. – You’d better give more details about your work with Millbank Foods. 60 CURRICULUM VITAE Name Address Telephone Date of Birth Marital Status M.A АRY B. RENDA SCOTT 44 London Road, Winchester SO16 7HJ 0962 8890 (home); 0 0703 77877 (work) п 30 August 1967 single (1) (2) (3) EDUCATION Churchill comprehensive school, Basingstoke WinchesterTechnical College 1976–1983 1983–1985 (4) 1983 (5) QUALIFICATIONS C.S.E. G.C.E. BTEC National Maths, English, French, Geography, History, Chemistry ‘0’ Level Commerce, Economics, Spanish Secretarial Practice, Office Practice 1984 1985 EXPERIENCE Office assistant Totton Engineering, Totton 1984–1985 Secretary to Totton Engineering, Totton 1985–1986 Sales Director Personal Assistant Millbank Foods, Southampton 1986 to date to Export Manager My work with Millbank Foods has involved responsibility for giving instructions to Junior staff and dealing with clients and suppliers in person and on the telephone. I have accompanied the Export Manager to Food Trade fairs in Germany, France and the USA. (6) OTHER INFORMATION I speak and write French and Spanish quite well ( Intermediate level ). I am now taking an evening course in German conversation. (7) OTHER ACTIVITIES AND INTERESTS I play club basketball regularly and I sing and play guitar with a local country and western band. (8) REFERENCES Mr. S.J. Grant, Personnel Manager, Millbank foods, 34-42 South Dock Drive, Southampton S08 9QT Mr. J. Robinson, Sales Director, Totton Engineering, Cadnam Street, Totton S023 4GT (9) Miss P.L. Macpherson, Head teacher, Churchill Comprehensive School, (10) Independence Way, Basingstoke BA8 9U 61 Exercise 6 Do it in English: Жаловаться на неисправные товары всегда непросто. Большинство людей не любят поднимать шум. Но вы должны помнить, что когда вы покупаете что-либо в магазине, вы заключаете с ним контракт, что магазин должен рассмотреть вашу жалобу, если вы будете недовольны товаром. Когда товар вас удовлетворяет? Во-первых, если он сохранил “товарный вид” (не поврежден и работает соответствующим образом). Во-вторых, товар должен соответствовать своему описанию, будь то этикетка или рассказ продавца. И, наконец, товар должен соответствовать своему предназначению. Если товар неисправен при первом же использовании, покупатель может отправиться в магазин и заявить, что он аннулирует покупку и просить полностью возвратить деньги. Можно согласиться на ремонт или замену неисправного товара. Одной из насущных потребностей человека является еда. Всех нас затрагивают изменения в снабжении продуктами питания. Если стоимость продукта меняется, а все прочее остается неизменным, изменяется спрос на этот товар. Если цена на продукт увеличивается вдвое, то многие потребители будут покупать заменители этого товара, если они имеются в наличии и стоят дешевле. Спрос на товары-заменители будет расти, и это вызовет снижение спроса на основной товар. Glossary accept v acceptance n affect v 1. to take or receive (something offered or given) , esp. willingly 2. to take or receive as satisfactory or reasonable, often unwillingly 3. to recognize as being true or right 1. the act of accepting or being accepted 2. favour; approval 3. (in business) an agreement to pay to cause some result or change in; influence 62 to cover one’s costs, making neither a profit nor loss a level of business activity at which a break-even point n company makes neither a loss nor a profit to give up (a planned activity, event, etc); state cancel v or decide that something will not happen 1. something which produces an effect; a cause n person, event or thing that makes something happen 2. something that provides a satisfactory reason for an action 3. the reason for action in a court of law; a matter over which a person takes legal action to lead to or be the cause of cause to share or exchange opinions, feelings, communicate v information, etc. to try to win something in competition with compete v someone else the act of competing; the struggle between competition n several people or groups to win something or to gain an advantage; rivalry 1. a statement or cause of annoyance, complaint n dissatisfaction, unhappiness, pain, etc. 2. the act of complaining to express feelings of annoyance, complain v dissatisfaction, unhappiness, pain, etc.; say in an annoyed, unhappy, dissatisfied way the situation in a market when there are only a corner n small number of large suppliers to force (a person or animal) into a difficult or corner v threatening position to corner the market to gain control of (supply of certain goods) the process of spoiling the condition or quality damage n of something and the harm or loss that results inflict physical harm on (something) so as to damage v diminish its value, usefulness, or normal function an agreement or arrangement , esp. in business deal n break v even (to) 63 or politics, esp. one that is to the advantage of both sides to give, esp. as a share of something deal v to deal with something to take action about; tackle to be about; have as a subject to do business, esp. trade, with 1. willingness to take risks and do things that enterprise n are difficult, new or daring 2. an organization, esp. a business firm 1. to give (someone) the right to do something entitle v or have something 2. to give a title to a book, play, etc. to change continually or frequently fluctuate v a joining together of two or more companies merger n or firms a right or power held by one single person or monopoly n group to provide a service, produce something, etc. to have or get complete unshared control of monopolise v to become the owner of , esp. by means of obtain v effort or planning money spent regularly (e.g. on insurance or overheads n heating) to keep a business running 1. officially allow (someone) to do something permit v 2. authorize(something) 3. provide an opportunity or scope for (something) to take place; make possible 1. to continue to exist or be widespread prevail v 2. to gain control or victory; win a fight a repayment; a sum of money refunded refund n to give (money) in repayment, in return for loss refund v or damage, in order to balance accounts, etc. to keep within limits of size or number or to a restrict v certain limit to bring under firm control; not allow to have subject v free expression governed by or dependent on subject adj a business deal, an act of buying or selling transaction n something 64 Topics for presentations: 1. Real Market Versus Perfect Market 2. Factors affecting market demand 3. Competition 4. Competition in Labour Markets 5. Types of Monopoly 6. Business Etiquette 7. Know your Rights 8. Cornering the Market 9. The Job of an Advertising Manager 10. Anti-monopolistic Regulation in Different Countries 11. Labour Markets 12. Career planning 13. The peculiarities of business etiquette in different countries 14. Business e-mail writing 15. Penalty Clauses And Why Sales People Accept Them 16. The Ways To Offset The Penalty Clause Topics for essays Competition is a driving force of the economy. Competition is an evil for the economy. The most important factors in pricing decisions are production costs. 65 2 OVERVIEW OF ECONOMIC GROWTH Contents 2.1 Lead-in Section overview 2.2 Language Input Developing vocabulary 2.3 Background Information Costs of Economic Growth 2.4 Comprehension Understanding the reading Reviewing the concept 2.5 Speaking & Writing Language focus Metric and non-metric measures Language in context Presenting information Fill-in exercises Memorandum Communication skills 2.6 Dialogue Interaction between input & output 2.7 Reading for Cross-cultural Associations Employment in Britain 2.8 Case study & Role-play Social Costs of Growth 2.9 Grammar Back up Practice with Modal Verbs: Possibility Probability Deduction 66 2.1 LEAD-IN SECTION OVERVIEW Your growth determines what you will be like in future. You can influence your physical growth by the food you choose to eat and the amount of exercise you get. You also can influence your academic growth. You can choose to study hard or to study just enough to pass. Similarly, countries can choose their rate of growth. You will learn how economic growth is encouraged in a market system, about its advantages and disadvantages. In this section you will learn about costs that accompany the benefits of economic growth. Discuss the following questions; make use of the prompts in brackets: 1. In what way do the job openings influence job hunting? (labour market, competition, to affect, opportunity costs, tradeoffs, to evaluate) 2. What can be the opportunity costs of building new enterprises? (ecological damage, job openings, employment, to combine, to obtain, to restrict) 2.2 VOCABULARY количество, сумма, объем amount n When your manager bills customers the amount will be large enough not only to cover the company’s costs but also to invest in capital resources. Когда менеджер выписывает клиентам счет, сумма будет достаточной для того, чтобы не только покрыть издержки фирмы, но и сделать вложения в основные фонды. составлять сумму, достигать, равняться amount v 67 average adj As people produce more goods and services, the average standard of living goes up. benefit n This trend has a lot of benefits. benefit v Why does the government benefit from economic growth? bill n Can you put that on my bill? средний, усредненный По мере того как производится больше товаров и услуг, средний уровень жизни возрастает. прибыль, выгода, пособие, пенсия У этого направления много положительных сторон. получать выгоду, пользу, помощь Почему правительство получает выгоду от экономического роста? счет к оплате; свидетельство; долговое обязательство, вексель Вы можете включить это в мой счет? выписывать счет, накладную поощрять, содействовать, стимулировать Рыночная система поощряет Economic growth is encouraged in a экономический рост, но market system, but it has advantages у него есть преимущества and disadvantages. и недостатки. enlist v зачислять; причислять; поступать на военную службу (добровольно) Его 17-летний сын His 17-year-old son enlisted in the добровольно ушел служить navy because he felt that the на флот, потому что pressure at home had become too напряжение дома стало heavy. чрезмерным. hire n наем, прокат; плата за наем bill v encourage v нанимать, брать на прокат hire v 68 страхование, страховой платеж, страховой полис insurance n После того как закончилась страховка по безработице, он не имел дохода в течение полугода. He received no income for six months after his unemployment insurance was over. оправдывать, подтверждать justify v When your company uses money to buy new equipment, it expects future returns from the equipment to justify the purchases. действовать, работать, эксплуатировать operate v Thousands of workers make their living operating a computer. Тысячи работников зарабатывают на жизнь, работая на компьютере. продукция; выпуск изделий output n общий объем продукции aggregate output ant. Когда компания использует деньги для закупки нового оборудования, она ожидает, что будущая прибыль оправдает приобретение. вложения, затраты, инвестиции input накладные расходы overhead n (=overheads) Employers obtain net profit only after they have paid all expenses arising out of their business activities: interest, rentals, payments for machinery, wages and overheads generally. 69 Работодатели получают чистую прибыль только оплатив все расходы, вытекающие из их деятельности: проценты, арендную плату, оплату оборудования, заработную плату, накладные расходы в целом. способствовать, содействовать; повышать в должности; учреждать Если перерасходовать If the resources are overused to ресурсы для содействия promote economic growth now, экономическому росту в future growth may be much slower. настоящем, то в будущем рост может быть значительно замедлен. range n ряд, линия; сфера, зона; диапазон; масштаб range v колебаться в пределах; ранжировать promote v The workers ranged in age from 34 to 55. Возраст рабочих колебался в пределах от 34 до 55 лет. long-range / short-range долго-/краткосрочный Long-range economic growth Долгосрочный экономичесdepends on the continued production кий рост зависит от непреof capital goods. рывного выпуска товаров производственного назначения. rent n арендная плата, рента rent v арендовать, брать в аренду; брать/давать напрокат Аренда этой машины стоит 18 долларов в день. This car is rented at $18 a day. rental n сумма арендной платы replace v заменять, замещать, восстанавливать Чтобы бизнес продолжал работать на современном уровне, он должен постоянно обновлять и заменять свои основные фонды. To keep its operations up-to-date, a business must continually renew or replace its capital resources. 70 retrain v Many redundant workers tried retraining programs, but found that employers were reluctant to hire older, experienced persons as beginners. заниматься переподготовкой Многие сокращенные рабочие попытались пойти на курсы переподготовки, но обнаружили, что работодатели не хотят нанимать немолодых, опытных людей в качестве новичков. доход, прибыль, выручка; отчет If the business is successful, the Если бизнес успешен, то риск risk-taking has been justified, and оправдан, а от инвестированinvested capital earns part of the ного капитала получают приprofits as a return on the investment быль как доход от инвестиand the period in which the capital ции и компенсацию за was at risk. период риска. revenue n доход, выручка Growth provides the government (Экономический) рост with additional tax revenues. обеспечивает правительство дополнительными налоговыми поступлениями. return(s) n ( from) save v Societies must save some of what they produce today in order to have more for tomorrow. экономить, сберегать, копить Общество должно откладывать на будущее часть того, что оно производит сегодня. support n поддержка, помощь; средства к существованию; материально-техническое обеспечение support v поддерживать, оказывать помощь, обеспечивать У него на содержании жена и сын, а также он должен выплачивать большую закладную. He had a wife and son to support and a sizeable mortgage to pay. 71 DEVELOPING VOCABULARY 2.2.1. Consult a dictionary, write out the transcription and practise the pronunciation of the following words: a decrease advantage air purification argue auto repair shop average comfortable company contribute to decrease determine disadvantage encourage environment equipment insurance justify leisure measurable mortgage occur preferable revenue similarly society sphere survive the produce to produce 72 2.2.2. Match the English word combinations in the left-hand column with the Russian equivalents in the right-hand column: a. накопление (образование) отходов 2. to expect returns from something b. искать работу 3. a mixed blessing c. зарабатывать прибыль 4. to hire help from outside d. поступления от налогов 5. to benefit from unemployment e. материально поддерживать insurance безработных родственников 6. to reduce the employment of f. вносить вклад в typesetters долговременный рост 7. to justify the purchase g. вкладывать деньги в основные фонды 8. to seek employment h. выставлять счет за что-либо 9. the average standard of living i. получать помощь в виде страховки по безработице 10. to support unemployed relatives j. прибыль от капиталовложений 11. to influence the rate of growth k. ожидать прибыль от чего-либо 12. tax revenue l. способствовать росту 13. to cover the costs m. оправдать покупку 14. to contribute to long-range n. нанимать дополнительную growth рабочую силу 15. to bill somebody for something o. “палка о двух концах” 16. to earn profits p. покрывать расходы 17. returns on investment q. положительные (выгодные) стороны экономического роста 18. to promote growth r. влиять на темпы роста 19. generation of waste products s. разрушение окружающей среды 20. to use up natural resources t. средний уровень жизни 21. destruction of natural u. уменьшить количество environments нанимаемых наборщиков 22. the benefits of economic growth v. истощать природные ресурсы 1. to invest in capital resources 73 2.3 READING COSTS OF ECONOMIC GROWTH If you spent all the money you have now, you might be able to buy many of the things you want. However, you probably would choose not to spend all of your money right now. You realise that by saving some now, you will save more for the future. Societies also must save some of what they produce today in order to have more for tomorrow. Every society must produce capital goods as well as consumer goods to meet future economic needs. Longrange economic growth depends on the continued production of capital goods1. Everyone who works contributes to the growth of capital resources. Suppose you earn $72 a week, working evenings in an auto repair shop. How do you contribute to the growth of capital resources? If your manager paid you exactly what the customer paid the company, what would happen to the company? What would happen to the business if no money were2 saved to replace old tools and obsolete equipment? Your labour must be valuable enough to earn more than just the money to cover your wages. When your manager bills customers for the work you did, the amount will be large enough not only to cover the company’s costs but also to invest in capital resources3. Your labour may earn your company $100 a week. Since you are paid $72, you are helping the company to collect $28 a week. Some, or all, of this money can be used for capital resources. When your company uses this money to buy new equipment, it expects future returns from the equipment to justify the purchases. The manager may decide to replace the old tools, hire more help, or expand the shop, for example. The manager 1 Goods used to produce other items; tools, machines, and buildings are examples of capital goods (основные средства/фонды; средства производства, товары производственного назначения). 2 (Gr.) Conditional sentence. “Was” is possible but less formal. 3 The money or property, such as tools or buildings, used to produce consumer goods or services; to keep its operations up-to-date (основные фонды, банковские активы). 74 makes decisions based on how the company will earn the most profits. In recent years, many people have argued that economic growth is a mixed blessing1. The advantages of growth are fairly clear. As people produce more goods and services, the average standard of living goes up. Growth also keeps people employed and earning income. It provides people with more leisure time, since they can decrease their working hours without decreasing their income. Growth provides the government with additional tax revenues, which enable it to spend more on programs for education, water and air purification, medical care, highway construction, and national defence. What are the disadvantages, then? Four of them are: (1) use of natural resources that cannot be replaced, (2) generation of waste products, (3) destruction of natural environments, (4) uneven growth among different groups in society. In the past, growth has allowed poor people to improve their economic conditions. During periods of growth, people have felt optimistic about their future. Nevertheless, continuing economic growth at the pace of today may permanently damage our world, polluting air, land, and waters, and using up natural resources. In considering the benefits and problems of growth, it is necessary to recall that to survive, every economy needs people, capital and natural resources that depend on one another. If these resources are overused to promote economic growth now, future growth may be much slower. Growth, however, sometimes provides solution to the problems. Advances in transportation and communications have merged countries into one interdependent global economy. In this global economy, trade and borrowing to finance growth play important roles. 1 ( зд.) “палка о двух концах”. 75 2.4 COMPREHENSION UNDERSTANDING THE READING 2.4.1 Give extensive answers to the questions. Use the following expressions to start your answers: Though I can’t say for sure, I think ... . I may be wrong but I think ... . I’m sorry I don’t know much about it ... . As far as I know ... . The way I see It ... . It’s a well-known fact ... ; 1. How does spending or saving money and resources influence the life of an individual and the society? 2. In what way do people contribute to the growth of capital resources? 3. In what way is the amount for which the manager bills the customer used? 4. What justifies the purchase of new equipment for the company or the decision to replace the old one? 5. Why is economic growth a mixed blessing? Does the average standard of living depend on economic growth? 6. Why does the government benefit from economic growth? 7. Why is it difficult to make decisions about economic growth? 8. What three kinds of resources does every economy need to survive? 9. How does one make present work for the future? 10. What are the advantages of economic growth for you as a consumer? As a producer? 11. List and explain three social costs of economic growth. 12. Why must societies invest in capital goods as well as consumer goods? 13. What effects does economic growth have on our environment? 76 REVIEWING THE CONCEPT 2.4.2. Say whether these statements are true (T) or false (F), and if they are false say why. e.g. In my opinion it is true that … . I reckon it is false that … because … . TF 1. Each company must reserve money to replace and update its tools, machines, and factories, as well as to expand to meet demand. TF 2. One benefit of economic growth is an increasingly lower standard of living. TF 3. Everyone in some way pays the hidden social costs of economic growth, such as air and water pollution. TF 4. To grow, an economy needs capital goods because they are used to consume other goods and services. TF 5. Among the benefits of growth are: (1) depletion of irreplaceable natural resources, (2) disposal of a rising amount of leftover products, (3) contamination of the natural surroundings, and (4) unbalanced growth among different social groups. 6. In the past, growth has allowed poor people to improve their economic conditions. 7. Long-range economic growth is independent of the continued production of capital goods. 8. When your company uses its overheads to buy new equipment, it expects future returns from the equipment to justify the purchases. 9. Economic growth doesn’t influence the amount of money that the government spends on programs for education, water and air purification, medical care, highway construction, and national defense. 10. During periods of growth, people feel optimistic as they know that capital and natural resources are unlimited and can’t be overused. TF TF TF TF TF 77 2.5 SPEAKING & WRITING Language focus 2.5.1. Metric and non-metric measures Traditionally British measurements have been made in ounces, inches, pints etc. In recent years, Britain has adopted some metric measurement units, but non-metric measures are still quite widely used. America uses mainly non-metric units. Weights 1 ounce (1 oz1) = 28 gm 16 ounces = 1 pound (455 gm) 2.2 pounds (2.2 lb.2) = 1 kg 14 pounds (14 lb) = 1 stone (6.4 kg)3 8 stone = 1 hundredweight (cwt.) 20 hundredweight =1 ton 1 ton: long ton - a unit of weight equal to 2,240 lb (1016.05 kg) short ton - a unit of weight equal to 2,000 lb (907.19 kg) 1 tonne - metric ton (also metric tonne) a unit of weight equal to 1,000 kilograms (2,205 lb) Mind that ounce, pound and ton can take s in the plural when they are used as nouns, stone and hundredweight do not take s: e.g. six pound of sugar or six pounds of sugar But: ten hundredweight of coal Kilo or kilogram usually take s in the plural when used as nouns: two kilos of oranges or two kilograms of oranges British people usually measure their weight in stone and pounds; Americans just use pounds. Nora weighs eight stone six. 1 2 3 Oz is a written abbreviation for ounce. lb is a written abbreviation for pound (libra), when it refers to weight. British only. 78 Length 1 inch (1 in) = 2,54 cm 12 inches = 1 foot (ft) = 30 cm 3 feet (3ft) = 1 yard (yd.) = 90 cm 5, 280 feet / 1, 760 yards = 1 mile (1.6 km) 5 miles = 8 km Height is measured in feet, distance can also be measured in feet, but longer distances are often measured in yards. The bus-stop is about 300 yards on the left. When there is more than one inch/mile/centimetre we normally use the plural form of these words: one inch – twenty inches one mile – three hundred miles one centimetre – ten centimetres When there is more than one foot we can use either foot or feet; feet is the more usual when measuring heights. Peter is six foot/feet tall. Liquid measure 1 British pint (pt) = 56.8 cl1 = 0.568 litres 1 US pint = 47.3 cl 2 pints = 1 quart (qt.) 4 quarts = 1 gallon (gal) 1 British gallon = 4.55 litres 1 US gallon = 3.78 litres 1 bushel = a measure of capacity equal to 8 gallons (equivalent to 36.4 litres), used for corn, fruit, liquids, etc. Note: When used in compound adjectives these terms never take s: a ten-ton lorry a two-mile walk a six-inch ruler 1 Centilitre. There are 100 centilitres in one litre. 79 Say it in English: 1. Нет необходимости нанимать пятитонный грузовик. 2. Неужели здесь полфунта кофе? 3. У него на столе должна лежать трехдюймовая пачка бумаги. 4. Вошел человек двухметрового роста. 5. Мне нужно два фунта яблок. 6. Нам придется зафрахтовать 8000-тонное судно. 7. 5ft 8. 3 gal 9. 2 pt 10. 20 cwt Language in context 2.5.2. Fill in prepositions or adverbial particles whenever necessary. Provide the extract with an appropriate title. _____________________________________ Human labour produces both goods and services. The activities ... a farm worker and a nurse are very different, but each is measurable ... terms ... payment received. If, however, a farmer is self-employed and does not receive a fixed wage ... anyone else, his activities are not wholly labour. His workers receive their wages, but he receives surplus ... his farming. This surplus is usually called ... profit. Employers obtain their net profit only ... they have paid all expenses arising ... ... their business activities: interest, rentals, payments ... machinery, wages and overheads generally. Normally part ... the surplus goes ... those who have provided the initial capital needed to start a business. There is always an element ... risk ... providing capital ... new businesses. If the business is successful, the risk-taking has been justified, and invested capital earns part ... the profits as a return... the investment … the period ... which the capital was ... risk. 80 2.5.3 a. Fill in the gaps with the suitable expressions from the box. b. Use the obtained information to put 6 questions to the text covering all the combinations from the box. (1) (2) (3) (4) (5) the benefit of to cover the costs economic growth capital goods to meet the demand (6) (7) (8) (9) (10) to justify the purchase rate of growth the average standard of living to replace equipment bill What are the disadvantages of economic growth? Long-range ... causes more than just air and water pollution. Growth leads to the destruction of forests, wetlands, beaches, mountains, ocean beds. When the society tries to control destruction it takes money ... . Thus the ... of the economy may not be so fast as it would if we did not have to worry about the destruction. For example, strip mining, a popular and cheap way of getting coal out of the ground, involves stripping away the surface of the land. But ... this method is lessened because, leaving ugly, barren hills, strip owners are required to restore the land, the cost of doing so turns up the price of coal. When coal is more expensive, industries that use it may cut back production or ... their customers at a higher rate in order ... of coal. Either action can slow down economic growth. Decisions about economic growth are not easy to make. In the past, growth has allowed poor people to raise ... . To grow an economy needs ... because they are used to produce other goods and services. Each company must reserve money ... and update its factories, as well as to expand in order ... . Thus everyone in some way pays the hidden costs of economic growth. 81 2.5.4. Do it in English: – Как вы все знаете, мы собрались, чтобы обсудить те проблемы, которые сопровождают бурный рост в различных отраслях экономики. Период процветания часто бывает недолог и не покрывает издержек роста. Как Вы могли бы объяснить негативные последствия роста, скажем, безработицы среди рабочих, уволенных из типографий в результате внедрения компьютеров? – Мне следует начать с того, что экономический рост – это “палка о двух концах”. Внедрение компьютеров, безусловно, способствует росту эффективности труда, но замена оборудования часто сопровождается наймом новых помощников и увольнением старых. – Многие тем не менее считают, что модернизация позволяет заработать большую прибыль, а доходы от этого оправдывают затраты. Эти затраты также покрывают и вложения в основные фонды. Но многие считают неразумным тратить деньги на средства производства. А каково Ваше мнение на этот счет? – Ничего подобного! Следует помнить о том, что экономический рост обеспечивает государство дополнительными налоговыми отчислениями, а это – средства для экологических, образовательных, медицинских и прочих программ. – Вы ошибаетесь, если считаете, что экономический рост является решением всех проблем. Хотя он позволяет улучшить условия жизни многим людям, экономический рост наносит урон окружающей среде, уничтожает природные ресурсы, разные слои общества приобретают еще большие контрасты. 82 WATCH OUT: translator's "false friends" schedule chart graph table curve diagram 2.5.5 a. Look up the dictionary to find the difference between the words schedule, chart, graph, table, curve, diagram. Match the words with their meanings. 1. schedule 2. chart 3. graph 4. table 5. curve 6. diagram b. A simplified drawing showing the appearance, structure, or workings of something; a schematic representation B diagram showing the relation between variable quantities, typically of two variables, each measured along one of a pair of axes at right angles C set of facts or figures systematically displayed, especially in columns and rows D smooth, gradually bending line, for example part of the edge of a circle E plan that gives a list of events or tasks and the times at which each one should happen or be done F sheet of information in the form of a table, graph, or diagram which is intended to make information easier to understand Fill in the blanks with schedule, chart, graph, table, curve, diagram in the appropriate form. 1. He has been forced to adjust his busy … . 2. We both have such hectic … (plural noun). 3. You suggest making an expense … and figuring out what percentage of your income is allocated for each item. 4. Male unemployment was 14.2%, compared with 5.8% for women (see … on next page). 5. An organization … is a diagram showing how a company is organised. 6. A … is a mathematical diagram which shows the relationship between two or more sets of numbers or measurements. 83 7. Other research supports the figures in … 3.3. We had stupidly been looking at the wrong column of figures. 8. Children at the school have spelling tests and learn their multiplication … . 9. Each firm will face a downward-sloping demand … . 10. Was it just a temporary blip on an otherwise healthy growth …? Presenting information Communication skills Memorandum is a short type or written message sent from one person to another in an organisation. There are different formats of memos, but all of them have the same main elements: The name of the writer The name of the addressee The date The subject The body of the memorandum The first three usually go at the top, but the order you put them in depends on your choice. For example: To: Hector Grant From: Joanna Harvey Date: 13 June, 2005 The body of the memo From: Peter Wiles Date: 15 July, 2005 To: John Martin The body of the memo Date: 20 September, 2005 To: Hector Grant From: Peter Wiles The body of the memo 84 It is not necessary to use a heading in a memorandum, but sometimes it may be a good idea to do so as it will help the addressee to understand what the memo is going to be about. The memo might read: To: CEO, Exxon From: Production Manager, Exxon Date: 13 June, 2005 Understanding the Costs of Economic Growth The body of the memo The heading tells the addressee immediately what to expect. The body of the memo includes the points the writer wants to make. The heading may provide all the introduction the writer needs, but may be it is necessary to write a short introductory part giving some of the background to the memo. The last part of the memo should indicate what steps the writer is going to undertake, his conclusions or recommendations or a summary of his arguments. 2.5.6 Familiarise yourselves with the given information and fulfil the assignments. A. Answer the following questions: 1. 2. 3. 4. 5. 6. What is a memorandum? What kinds of memo formats can we distinguish? What are the main elements of any memo? Is a heading a necessary part of a memo? Why? What does the body of a memo consist of? What does the last part of the memorandum indicate? B. Here are some examples of memos. Which of them is for a senior member of the staff? the personnel of one of the departments? people working in a company? 85 1. MEMORANDUM To: Staff of the Sales Dpt. From: JM Subject: Sales visit to Abraca by JM Date: 11th Nov. 05 The sales visit to Abraca will be discussed at next Wednesday’s management Meeting. Meanwhile the following points should be acted upon. 1. EC to contact Djemsa airport this week about problems with customs declarations. 2. JH to send brochures and catalogues to all firms. 3. SL to check with shipping department to find out maximum CIF costs to Djemsa, and report. JM 2. MEMORANDUM To: Managing Director Subject: Visitor from Scotland From: Public Relations Officer Date: 18/10/05 On 18 November Mr. George Duncan, director of the Duncan International is paying a visit to our offices. I would like to ask whether you are likely to be in that morning. If possible I would like to bring Mr. Duncan to see you for a brief meeting, probably ten minutes or so, just to make contact. Would 10.30 be OK? Please let me know as soon as possible if it is inconvenient. Thanks, J. Martin 86 3. MEMO From: The Managing Director To: All Office Staff Date: 15th October 2005 As a result of the productivity survey carried out in the factory, more efficient ways of operating are now applied. In some departments productivity has been increased by over 40 per cent. We intend to improve the work of the office staff and aim to find ways of avoiding unnecessary actions. 1. We propose to pay a month’s extra salary to any person who, in the management’s opinion, has put forward the most practical suggestion to improve a particular office routine. 2. All suggestions should be sent to the MD’s office before the end of next month. H. Grant C. Look at the pattern of the above memoranda and write a paragraph about the advantages and disadvantages of economic growth. The paragraph should contain a topic sentence, some developers, and a restatement. Write it in the form of a memo: MEMO From: Subject: To: Date: With underwritten be advised that ...... Signature: 87 2.6 DIALOGUE A. Replace the Russian words and phrases by suitable English equivalents in the appropriate form. Reproduce the dialogue. A.: I think we can get down to reviewing the text right away. B.: No objections. Let’s get started. On the whole the text suits me quite well, but there are some points I’d like to clarify. A.: All right. Shall we go point by point then, so that you could clarify the matter? B.: As a matter of fact I have two simple questions. Firstly, can growth continue indefinitely? A.: Let me see …. To begin with, it’s a widely disputable question. Aggregate output can be increased either by increasing the inputs of (земля, труд, капитал и сырье), or by increasing the (выпуск продукции) obtained from given (производственные затраты) quantities. B.: Do you mean technical advances? I believe they are the most important source of productivity gains, although changes in social attitudes to work organisation may also be important. A.: But as I see it an apparently fixed (предложение) of a production input, such as particular (сырье), may make (рост) impossible in the long run. B.: Nothing of the kind. As input becomes more (недостаточный), its price will rise. This leads (производители) to substitute towards other inputs, increases incentives to discover new supplies, and (поощрять) inventions that economize on the use of that resource. A. By the way, the text refutes the statement that growth is always a good thing and confirms that it often is accompanied by economic bads such as pollution. 88 B.: That was my second question: Is growth always a good thing? Indeed, the most desirable (уровень роста) will always remain a value judgement1 if only it involves (выбор) between the welfare of people today and of the people in the future. A.: You won’t deny the fact that people are always worried about a productivity slowdown. B.: Actually, a (замедление роста) may be explained by increasing social concern about the production of economic bads; greater (профсоюзы) power; the diversion of R & D2 effort to seek very long-term solutions to the energy crisis; and the (экономический) obsolescence of the capital stock when real energy prices increased dramatically. A.: I assume that the (самое лучшее решение) is to switch resources from (потребление) to investment in physical capital and people. B.: People? Of course, the (уровень занятости) is part and parcel of economic growth or slowdown. Employment may increase for two reasons. A.: That’s evident. First, there may be population growth. Second, a larger fraction of a given population may be in employment. B.: Right you are. However, labour problems require special consideration. Let’s defer it till a later date, shall we? A.: Sure. See you later. B. Comment upon the proverb “Curses, like chickens, come home to roost3”. Say how it relates to the contents of the dialogue above. 1 субъективная оценка research and development 3 Что посеешь, то и пожнёшь. 2 89 2.7 Reading for Cross-cultural Associations a. Read the except below about employment in Britain. Compare the situation in Great Britain with that in Russia. Discuss it with an interlocutor. Nowadays Britain is, by any standards, a prosperous country. She remains in the first rank of world economies, though she can’t be described as a Great Power any longer. However, British wage rates remain among the highest in the world (on average). Statistics says that there are fewer unemployed people in Great Britain than in most other Western European countries. While a German couple on average wages for manual work earn 20% more than their British counterparts, a British couple earn almost twice that of a couple from Greece. Today employment in Britain has undergone and is continuing to undergo substantial changes which influence both the working people and the unemployed. In 1967 one of the British economists stated: “The days of uncontrollable mass unemployment in advanced industrial countries are over. Other economic problems may threaten; but this one at least, has passed into history.” People believed that jobs would be available for everyone and that prosperity and security would continue to grow. But this has not been the case. By the early 1980s there were 3 million unemployed people in Great Britain. In recent years unemployment has declined but still remains at about 2 million. It is still at a level which would have seemed appalling 30 years ago. Many of those who are unemployed have been so for a long time, e.g. 45% of the unemployed have not had a job for at least 2 years. It is stated that a disproportionaly large number of them are young and male. Moreover, the British people feel less confident about their future prospects concerning secure employment and increasing prosperity. Unfortunately, this isn’t just a British phenomenon: increased unemployment and job insecurity have become a feature of most Western countries. Economists consider that the reasons for this are international. What about the future? One view is that Britain will soon become a “30 : 30 : 40 society”, i.e. that 30% of people are disadvantaged and poor, 30% are insecure and only 40% are privileged in that their jobs are safe and well paid. 90 3. Say how the charts below compare with the text above. ___________________________________________________ ____________________________________________________ 91 2.8 CASE STUDY & ROLE-PLAY Consumer skills COSTS OF GROWTH The Case The case dates back to the 1980ies. Bruce Gilchrist and Ariana Shenkin have jobs that did not exist till the first half of the 20th century. Gilchrist is the director of the Center for Computing activities at Columbia University. Shenkin is his research assistant. They are just two of the thousands of workers who make their living operating a computer. Millions of other Americans have jobs that computers have made easier. Gilchrist and Shenkin realise that the progress responsible for their jobs has its costs as well. They studied the introduction of computer typesetting in the 70-es, which spelled unemployment for many Linotype1 and other machine operators. Among those who lost their jobs was a 58-year-old man who had spent 30 years as a typesetter. He had a wife and son to support and a sizeable mortgage to pay. For a year after being laid off, he tried unsuccessfully to obtain another printing job. Because his wife became sick during this period, he and his family received no income for six months after his unemployment insurance was over. Today he works as a telephone operator, earning less than half his former salary. Another of the workers studied was a Linotype operator whose family had to seek counselling after he was laid off. His 17-yearold son recently enlisted in the navy because he felt that the pressure at home had become too heavy. He explained that his father, who had been mild mannered, now easily lost his temper. This typesetter’s wife had never held a job before her husband lost his job. She went out to work, and the family lived on her pay1 A composing machine producing lines of words as single strips of metal, used chiefly for newspapers. It is now rarely used. 92 check for almost a year. Her husband now has three jobs. His wife commented: ”The three jobs he now has to work at to make ends meet will be the death to him.” In all, the study traced 44 of the people who had lost their jobs. The workers ranged in age from 34 to 55. Their average wage had been $27,000. Three of the 44 found full-time jobs in printing. The remaining workers continued to seek employment. Many tried retraining programs, but found that employers were reluctant to hire older, experienced persons as beginners. However, except one, none of the operators under 40 years of age obtained a high-paying job, many of the workers had taken jobs delivering flowers, polishing glass, stock-clerking, or driving taxis. Others did such odd jobs as painting and home repairs to earn income. Retraining in new skills is only one solution to the problem, and not a simple one. Retraining probably is more useful to the young than to the old. Case analysis 1. Look for other examples of the impact the technological advances have on the demand for labour. 2. List examples in favour of economic growth as far as employment is concerned. 3. List examples to illustrate the negative consequences of economic growth for labour markets. 4. Have computers contributed to the growth of our economy? If so, how? If not, why? 5. Search the Internet to investigate the job openings. What percentage of jobs requires the skills of a PC user? Report on your findings. 93 Role playing Situation In the late 1980-ies a group of people take part in the TV program discussing the costs of the introduction of computers. What you must decide Consider the advantages and disadvantages involved in creating new jobs. Cast A TV commentator Bruce Gilchrist, director of the Center for Computing activities at Columbia University Ariana Shenkin, Gilchrist’s research assistant Paul Smith, a former typesetter Edna Smith, Paul Smith’s wife Michael Horn, a former typesetter Lucy Horn, Michael Horn’s wife Barny Horn, Michael Horn’s son Steve Jenkins, a former typesetter Tom Barnel, a former typesetter Tom Stout, a former typesetter Edward Lorrain, a former typesetter Roger Marvel, a former typesetter Bruce McFerson, a representative of the retraining center Enact the following talks between: A TV commentator Chair the discussion on advantages and disadvantages involved in creating new jobs. Introduce the participants. Make your guests share opinions on economic costs and benefits of introducing computers. Consider unemployment, retraining, and age problems. 94 Make use of the helpful phrases: Ladies and gentlemen, are we ready to begin? Let’s go straight down to business. As we know we are here today to ... . Today we shall be looking at ... . Could you tell us your impressions of ... ? Could you say what you consider to be the main reason for ... ? What’s your attitude to ... ? Mr. N has said ...; could we have your comments on that? Many people find your attitude unreasonable. Would you like to explain ... ? What can you say in explanation of ... ? Let’s summarize what we’ve said so far … . Bruce Gilchrist. Your research shows that the introduction of computers spells unemployment on the one hand but makes a lot of jobs easier on the other. Those who lost their jobs in this connection either find full or part-time employment or take retraining programs. There are only few who continue to seek employment. Consider alternatives: 1. What alternatives are available to the worker who has been displaced by technology? Is age a factor? Explain. 2. What alternatives can the government use to deal with displaced workers? Make use of the helpful phrases: The reason we are here is to ... . Let me just say at the beginning … . If you ask me … . I’ll start by saying that … . I take it for granted that … . I am inclined to think … . What do you feel about... ? No doubt whatever. Beyond all doubt. 95 I can well believe it.1 I’m afraid it’s just as you say. I don’t (happen to) think so. It must be admitted that … . You are free to disagree with me but … . This is the way I see it. Ariana Shenkin. You studied what happened to a number of families when employment of typesetters was reduced due to the introduction of computers. The study involved 44 workers. It showed that employment was closely connected with age, ability to obtain new skills, family status and so on. Consider costs and benefits: 1. How would the costs differ in retraining a 30-year-old and a 60year-old worker? 2. Ultimately, who pays for retraining programmes? 3. What are the economic costs of not retraining workers? The social costs? Who pays these costs? 4. What are the benefits to the economy of retraining workers? Make use of the helpful phrases: I think I ought to say right from the start that ... . I feel I should point out to you that ... . I want to make it clear that … . Perhaps I could begin by saying that ... . We must bear in mind the fact that ... . I won’t deny … . There’s no denying that … . There’s much truth in what you’re saying, yet … . I see your point but … . For one thing … for another … . But the truth is … . And we can hardly ignore it. In conclusion I’d like to say that … . 1 Звучит правдоподобно. 96 Paul Smith. You spent 33 years as a typesetter. After being laid off, you still had a wife and a son to support and loans to be paid. Your family entered a period of hardships though you found a new job but a less paid one. Computerisation is an evil for you. Make use of the helpful phrases: My attitude from the beginning of ... has been that ... . Well, I’d just like to say that ... . My feeling about ...? Well, ... . The way things are … . In short, … . As I see it … . Edna Smith. After your husband had got a sack, life became hard and you even got sick during the time he unsuccessfully tried to obtain a new job. Make use of the helpful phrases: If you ask me … . In the circumstances … . No, I don’t accept for a moment that ... . You are completely mistaken if you suggest that ... . I mean to say … . Could you put us in the picture about …? I find it hard to believe. Michael Horn. Your family problems have made you work at three jobs, which doesn’t make you either happy or calm. What troubles you most is your 17-year-old son. Make use of the helpful phrases: I dare say … . As far as I can see … . I disagree with you on that point … . One of the reasons is that … . I see your point but … . Nothing of the kind. No, that’s not true at all. This is the way I look at it. 97 Lucy Horn. You had never had a job before your husband got fired, which made you go out to work. It’s very difficult for your family to make both ends meet. Make use of the helpful phrases: Let me explain the position … . I’m unhappy about … . As far as I know … . My own view is … . That’s, of course, a big problem … . 1 All things considered … . You can’t expect me to believe that … . Barny Horn. When your father lost his job, he was very often irritated and ill-tempered, the money in the family was short. So you decided to enlist in the navy to avoid the pressure at home. Make use of the helpful phrases: There’s only one thing there, … . That’s true but the nature of this matter is … . The point is … . I must admit … . I don’t think it will be possible … . I have studied the possibility of … . Do you really mean that … . I wish I could believe you but … . Steve Jenkins. As you are young and enterprising you have easily found full-time job in printing. Make use of the helpful phrases: 1 Look, I’ll tell you what … . It’s like this. You see … . It’s yes and no. Учитывая все обстоятельства. 98 No trouble about that … . I’m certainly with you in principle … . On the whole ... suits me, but ... . As far as … is concerned … . One of the things is … . I shouldn’t say so. Pull yourself together. It’s not the end of the world. Tom Barnel. You decided not to seek employment in printing or to try retraining programs. Delivering flowers suits you perfectly because you always get fees. Make use of the helpful phrases: I see, that seems fair enough … . Please, try and see my point of view. I assure you … . Yes, that suits me very well. No doubt, that’s just what I need. Crying won’t help! Cheer up! Things will come right. Tom Stout. You do not acknowledge the advantages of computerisation because it costs you a well-paid job and made you polish glass at less considerable payment. Make use of the helpful phrases: There is also the problem … . That’s where you are wrong, I’m afraid. I don’t think it’s justified … . But I must say … that … . You will realise of course … . I’ve done everything I could … but … . I am afraid, that under the circumstances this is the only way out. Whether I want to or not, I must do it/I’ll have to do it. 99 Edward Lorrain. You were lucky to become a taxi-driver though the job is heavier. Make use of the helpful phrases: In my opinion … . Unfortunately in this case … . It looks as if I must. There’s no other way. 1 Things do happen. As an alternative … . To some extent. All right, I’ll think it over … . I think it’ll suit me … . Cheer up! Better luck next time. Things will take a turn for the better. Roger Marvel. Your age didn’t allow you to obtain a high-paying job. Neither were you enlisted in any of retraining programs. Employers are reluctant to hire old workers. The only job you managed to get was painting and repairing houses. Make use of the helpful phrases: In the first place I can’t understand … . First of all let’s discuss … . I’ve heard that … . How do you account for this? To come closer to … . I must also add … . It’s most unlikely that … . I’d like to remind you … . It’s the most they can offer. The only thing I can do is … . I’m against it. 1 Всякое случается. 100 Bruce McFerson. At your retraining center new skills are obtained by those who lost a job, but there are certain restrictions. Still this trend has a lot of benefits. Make use of the helpful phrases: That’s really the point of today’s meeting. I am ready to answer any query you may have. I’ll tell you what. That’s clear enough … . I think we should … . I am sure that to solve a problem you have to understand its underlying causes... You realise that … . We shall certainly do that. Is there anything else you’d like to have? Making a Decision In coming to a decision, consider the following points: How have computers changed the life of the people? Are computers a curse or a blessing? What should be done if due to technological advances people lose their jobs? What other factors should be discussed? Your decision: 101 2.9 GRAMMAR BACK UP PRACTICE WITH MODAL VERBS (II) LEAD-IN Exercise 1 Task 1. Familiarize yourself with the text. Comment upon the meaning of the verbs in italics. Translate the text into Russian. A pension is money paid to an employee when he leaves on reaching a certain age. In Britain there is a compulsory scheme in which the employee must pay a fixed amount every week and the employer a larger amount. Then on retirement the worker is supposed to get his state pension. Nowadays, however, an increasing number of companies operate their own pension schemes so that they could give their employees more money to retire on. These schemes are usually governed, or ruled, by a trust deed. The trust is separate from the company. Trustees are appointed and they hold meetings regularly, to approve money for pensions, examine the fund accounts and so on. Every employee working for Harper & Grant, for example, must pay a certain amount of his wages into the fund. This money is invested so that it might increase its value, and after a certain period of employment the employee can qualify for a pension. As a result of the productivity drive, Mr. Grant wants to close down unprofitable departments. Nearly all the redundant workers have been absorbed into other departments, but there is one, Bob Hardiman, who, Mr. Grant says, will have to go. He is a craftsman in the old style, that is, he is a carpenter able to do fine hand carving, which is now hardly ever required. Ian Hampden, the Personnel Manager, thinks that Mr. Grant is wrong. How can the firm get rid of someone who has been with the firm so many years? He is sure that Mr. Grant ought to change his mind. Mr. Grant, however, is determined on his new plans to streamline the company, and make it more profitable and competitive. Ian goes to see Peter to find out if 102 he can suggest a way of persuading Mr. Grant to see reason. The pension fund meeting is due to be held shortly and Bob Hardiman’s pension will have to be approved. Peter remembers that a few years ago Bob Hardiman had to leave the company to look after his father, who had become an invalid. When his father died, Bob Hardiman rejoined the company. Peter realizes at once that according to the articles of the trust, if an employee leaves the firm for a time he must then work a certain number of years in order to qualify for the full pension. Bob Hardiman has not yet completed this time. He has, in fact, three more years to go. If he is sacked, or fired, now and not given his full pension it could have an extremely bad effect on everybody, since he has been with the firm so long. Peter, at the meeting, cunningly suggests that the company makes up the difference. In other words, the company pays Bob Hardiman the money to make up his pension from the fund to the full amount that it should have been if he had not interrupted his employment. Peter is shrewd enough to know that Mr. Grant will not want to do this and may perhaps decide that the lesser of the two evils is to let the man stay until his proper retirement age. The firm can’t risk its reputation. Task 2. Fill in the chart with the italicized word combinations from the text. Consult the Grammar notes below. Ability Possibility/probability/ Necessity/obligation/ logical assumptions / duty deduction 103 Lost chance PRACTICE WITH POSSIBILITY, PROBABILITY, DEDUCTION Ask yourself these questions when checking possibility, probability, and deduction. 1. In what way can we express possibility? a. We use may, might and could to talk about present or future possibility. A monopoly may arise from a variety of different causes. In Britain the Monopolies commission examines all special arrangements and mergers which might lead to undesirable monopolies. b. We use the negatives may not and might not with this meaning, but not could not. If a society uses all its resources to produce consumer goods now, its people may not be able to buy the things they want in future. c. We can use may / might / could + have + past participle to talk about possibility in the past. The goods might have been packed very carelessly. Many beggars have appeared recently, this could have been resulted from mass unemployment. d. We also use could and might (but not may) with have + past participle to say that something was possible in the past but did not happen. You were stupid to try that job at your age. You might have killed yourself. Exercise 1 Rephrase these sentences using the modal verbs in brackets to express possibility. 1. Perhaps the suppliers are unable to deliver goods in time. (could) 2. Perhaps they will cover the costs later. (might) 3. Perhaps they hired help from outside. (may) 4. Perhaps they billed the wrong customer for that item. (might) 104 Perhaps he doesn’t know the exact rate of growth. (may) Perhaps they earned sizeable profit. (could) Perhaps he isn’t investing in capital resources. (might) Perhaps I’ll benefit from this deal. (may) Perhaps they are going to justify this highly expensive purchase. (could) 10. Perhaps she didn’t get returns from her investment. (may) 5. 6. 7. 8. 9. 2. What other modal verbs are used to express possibility ? a. We use can to talk about theoretical possibility. Can often has a similar meaning to sometimes. We can go to Pskov by plane, by car or by train. If we go by car we may/might/could be late. b. We use may, might or could (not can) to say that perhaps something will happen in the future or that perhaps something is true at the moment of speaking. Economic growth may cause such problems as air and water pollution. c. We use could about theoretical possibility in the past. He could be really horrible when he was a child. You can go to Pskov by plane, by car, or by train. If we go by plane we may/might/could be late. d. We use can in questions about possibility. How can individuals or nations be self-sufficient in today’s complex economic world? Exercise 2 Complete the following sentences with the correct form of the infinitive. 1. Such defects may easily ________ (to lead) to a serious breakdown of the machine. That’s why we are in trouble. 2. Such defects may easily ________ (to lead) to a serious breakdown of the machine. Take care! 105 3. The ship may ________ (to arrive) tomorrow morning. 4. He may _______ (to return) to Tula but I haven’t seen him yet. 5. Economic activity might _______ (to begin) with the caveman, who was economically self-sufficient. 6. The activity of this company is quite legal, it can’t ________ (to affect) by anti-trust laws. 7. The purchase of new equipment for the company and the decision to replace the old machinery must ________ (to be justified) by the desire to grow faster. 8. Though I can’t ________ (to say) for sure, I think that everyone might ________ (to contribute) to the growth of capital resources in a way when he worked and earned more than just the money to cover his wages. 9. He may ________ (to try) two or three jobs, I am not sure, but he is still unemployed. 3. What modal verbs are used to express probability? a. We use ought to or should to say that something is probable at the moment of speaking, or in the future. Continuing economic growth at the pace of today should damage our world. b. We use should have / ought to have + past participle when we expected something to happen and we do not know if it happened or not. He ought to have passed his exam, I was surprised that he failed. Exercise 3 Translate the following sentences into Russian. 1. We ought to have fired this man. He had attempted a fiddle. 2. Somebody should have informed the chairman about the results. 3. The annual reports of the companies should have been studied carefully and the investors could have avoided a lot of problems. 4. The customer should have asked for a refund by now. 5. They ought to have done it at once. 106 4. How can deduction be expressed with the help of modal verbs? a. We use must in deduction to say that we are sure about something. Air and water pollution must be the result of economic growth. He has bought a new house. He must earn a lot of money. b. We use can’t in deduction to say that something is impossible. The country has a favourable balance of trade, it can’t import more than it exports! c. To express deductions about the past we use must / can’t + have + past participle. The goods were damaged, they must have been packed carelessly. Exercise 4 a. Complete the sentences with the correct form of the infinitive. 1. Some mistakes must ________ (to make) in assembling the parts of the machine. 2. He must ________ (to read) this book very attentively as he can ________ (to list) all the advantages of economic growth easily. 3. He can’t ________ (to be fired) from his post because he called me from his office a minute ago. 4. The expert pointed out that the goods must ________ (to be) in a bad condition already at the time of dispatch. 5. She must ________ (to listen) to our conversation because she knew everything. 6. Trident Engines must _______ (to teach) Mr. Kronotis a lot as he was a success at Poseidon Shipping S.A. 7. The car won’t start. It must _______ (to be) cold. 8. This deposit can’t _______ (to be withdrawn) using a check. They did not provide that facility then. b. Consider the following CAREER HISTORY. Try to show the cause-effect relationship between the facts. Follow the model: Mr. Kronotis must know Greek well because he worked in Greece for Poseidon Shipping S.A. for seven years. 107 CAREER HISTORY NAME IN FULL George Guy Kronotis PRESENT ADDRESS 45 Richmond Road, Colchester, Essex CO4 2JK TELEPHONE NUMBER 0453 29 682 (home); 0453 87 967(daytime) DATE OF BIRTH 7th April 1970 NATIONALITY British MARITAL STATUS Married, 2 children (7 and 4 yrs.) EDUCATION & QUALIFICATIONS 1981–1990: 1990–1994: Northgate Grammar School, Ipswich, GCE 8 ‘0’ levels; 4 ‘A’levels (French, Maths, Chemistry, Physics) University of London B.Sc. Mechanical Engineering Professional member of the Institute of Mechanical Engineers EXPERIENCE & ACHIEVEMENTS 2004 – to date: Neptune Engineering Ltd, Quay Road, Poole (manufacturers of marine engines and equipment) Export Sales Manager responsible to Managing Director for sales of engines to over 40 countries in Europe and overseas. Staff of 35 representatives and 15 office staff. Also responsible for budgeting, recruitment and training of staff. Built up sales from $13M to $45M. Set up and trained sales teams to cover markets outside EEC. 1997–2004: Poseidon Shipping S.A. Pireus, Greece (manufacturers and repairers of cargo vessels) Sales Manager responsible to owners for contracts with shipowners in all countries outside Greece. Staff of 4 representatives and 4 office staff. Built up sales by over 250%. 1994–1997: Trident Engines, Manchester Road, Salford (manufacturers of heavy duty diesel engines and transmissions) Trainee Sales Engineer / Assistant Sales Manager responsible to Sales Manager for sales to France, Germany and Greece. OTHER INFORMATION Technical Articles in journals and conference papers. Fluent French and Greek (both spoken and written); good spoken German; reasonable spoken Italian and Spanish. 108 1. Mr. Kronotis must be well informed about the sale of engines because ... . 2. Mr. Kronotis can’t have been fired from his post of Sales Manager in Poseidon Shipping company, because ... . 3. Mr. Kronotis might be valued highly by his management because ... . 4. Trident Engines must have taught Mr. Kronotis a lot as ... . 5. Poseidon Shipping company must have chosen Mr. Kronotis for the post of Sales Manager because ... . 6. He may set up and train sales teams to cover different markets because ... . 7. Mr. Kronotis must have researched and established new markets in … because ... . 8. You must have dialed 0453 87967 to speak to Mr. Kronotis because ... . 9. George may be needed at the talks with the Italians because ... . 10. Mr. Kronotis could be really efficient when ... . PRACTICE WITH REQUESTS, OFFERS, SUGGESTIONS, HABITS, REFUSALS, PROMISES AND THREATS 1. What modal verbs help us express requests? a. We can ask for something with can, could, may. Could is less direct and more polite. Could you lend me a certain sum of money? We use the same verbs to ask for permission: Could I ask you a personal question? b. We can ask someone to do something in different ways: Will you? – to ask someone to do something. Will you back me up and ask Mr. Grant to look for more foreign business? 109 Can, could. Could you find the copies of the shipping documents for the M-type desks? Would like is used as a polite way of saying what we want. I would like a more detailed report from you on paper, plus your long-term assessment. Would with the verb mind helps make the polite requests. Would you mind arranging the documents and putting them into the files? c. Note the meaning of yes and no after requests with mind: – Would you mind waiting? – No, that’s all right. (= I am happy to wait) – Yes, I would! (= I am not happy to wait!) 2. What are the ways to express offers? a. We use will, shall I?, can / could to offer to do something for someone. I’ll help you with this work. Shall I take Mr. Duncun round the factory for you? b. We also use would with verbs such as like, prefer and rather to make polite offers and invitations. Would you like to see round the factory first and then meet our Managing Director? 3. In what way can one express suggestions? We use shall; let’s; why don’t we?; how / what about?; can; could to express suggestions. The business must grow. Let’s close down unprofitable departments. Redundant workers could be absorbed into other departments, but some of them will have to go. 110 What about setting out our own pension scheme to give our employees more money to retire on? Why don’t we increase the value of the pension fund by profitable but safe investment? 4. What are the ways to express habits? a. We use used to + infinitive to talk about the past habits which are now finished, about past states and situations which are no longer true. Bob used to do fine hand carving, which is now hardly ever required. We do not use used to say how long something happened. He worked for this firm for ten years. The negative is normally didn’t use to or never used to. I never used to have deals with this bank, it is not reliable any longer. We begin questions with did ... use to ... ? Did you use to persuade Mr. Grant to see reason? b. When we talk about someone’s typical behaviour or characteristic habits we use will or would (to refer to the past). The old manager of the firm would come to the office regularly and attend the board meetings. c. When we talk about the past states we can use used to, but not would. This old man used to be a craftsman in the old style, but as there was no call for elaborate hand-carving on desks he was sacked. 5. How can we express refusals? To express refusals we use won’t or wouldn’t (for the past). Mr. Grant won’t send John Martin to Abraca, we know his views on that. The car won’t start. It must be cold. He wouldn’t introduce any modern management technique. His approach was so conservative. 111 6. What is the way to express promises and threats? We can use will to express strong intentions in promises and threats: If the Director doesn’t change his mind on this problem I will resign! I promise I won’t let our boss dismiss the old man without full pension! Exercise 1 Match the two columns: A 1. Can you … ? 2. Would you like … ? 3. Could you … ? 4. The firm used to … . 5. Would you mind … ? a. to look up the articles of the pension fund b. let me know the day and the time which would suit you best c. coming to my office tomorrow and discussing our plans for the future production d. discussing the problem with our Chairman, as the scheme itself was his idea e. supply me from the stock B 1. Let’s … . 2. Why don’t we … ? 3. What about … ? 4. Would you like … ? 5. Mr. Horn, will you … ? a. to look through the pension fund accounts b. go on with our agenda and discuss the next point about the problem of redundancy c. plan a much larger extension of our plant d. report, please, on the result of our field survey e. compensating the redundant worker out of the company’s funds to make his pension up to the proper amount 112 Exercise 2 Put the following indirect statements into direct speech to express requests and offers. Use Will you?, Can/Could I?, Would like?, Would mind?; Will/shall I?, Would prefer?. e.g. She asked me for a dictating machine. – “Could I have a dictating machine?” 1. He asks me to find out what percentage of shares our rival holds in the company. 2. The manager asked me if I would mind waiting. 3. She offered me employment at the sales office. 4. The man said he had run out of petrol and asked me to give him a lift. 5. He asks if he will have to do the whole exam again if he fails in one paper. 6. The driver asked me to go out of the car as he had to change a wheel. I offered to help. 7. He said I had a lot of parcels and offered to carry some for me. 8. The manager asked for my CV. 9. The boy asked me for 40p to buy an ice-cream. 10. The old craftsman asked the Personnel Manager to help him stay with the company until his proper retirement age. Exercise 3 Answer the following requests in the positive or in the negative. 1. – Would you mind joining a training scheme? – _________ (You are positive about it because it may help you find a well-paid job.) 2. – Would you mind introducing computers in your bank instead of old cash-machines? – _________ (You are negative about it because it needs retraining and you are too old to be enlisted in any training scheme). 113 3. – Would your manager mind hiring an old worker fired because of redundancy? – _________ (He is reluctant to do so because there are plenty of young workers). 4. – Would your wife mind going out to work for your family to make both ends meet? – _________ (She had never had a job before I got fired but she is willing to help). 5. – Would Barny Horn’s parents mind his enlisting in the navy? _________ (They didn’t like the idea, but that was the only way to avoid pressure at home). 6. – Would Mr. Grant mind paying Bob Hardiman the money to make up his pension from the fund to the full amount that it would have been if he had not interrupted his employment? – _________ (Mr. Grant will not want to do this and may perhaps decide that the lesser of the two evils is to let the man stay until his proper retirement age). 7. – Would the company mind selling half of the shares of the company to outsiders? – _________ (They are reluctant to risk, because if the shares are bought by a rival firm, or a larger company that wants to take them over, the present set-up, organisation, could change completely). 8. – Would you mind staying with the company until your proper retirement age? – _________ (I am happy to stay, in order to qualify for a full pension). 9. – Would the workers of the company mind paying a certain amount of wages into the pension fund? – _________ (They’ll agree because they will get more money to retire on. Besides the scheme will be governed by a trust deed and the trust will be separate from the company). 10. – Would you mind updating the factory’s delivery bay? – _________ (We are not ready to do so, because we must reserve money for it first.) 114 Exercise 4 Choose the one underlined word combination, which is wrong. Make the necessary corrections. 1. The old craftsman is well-known in the company because he A used to work there for twenty years, and he would do elaborate B C hand-carving on desks nobody else could do. D 2. Karen used to sell her shares very often nowadays. She can’t A B make both ends meet but her grandmother left her a considerable C fortune, she would buy shares everywhere in old days. D 3. –Would Mr.Harper mind saving an old worker from redundancy? A – Yes, he would! You know what a soft heart he has! He used to B C D support old employees every time he visited the Pension Fund Meetings. 4. – I can’t say that your accounts are impeccable as usual! I A wouldn’t approve them! – Shall I revise them once again? B C Would you mind agreeing the accounts next meeting? D 5. I promise I can’t let my family enter a period of hardships! If A B the company dismisses me, I will work at three jobs to make C D both ends meet! 115 6. He only managed to find a job of a taxi-driver. The job is heavier A B than the previous one. He would be a typesetter when there were C D no computers in publishing houses. 7. We didn’t used to have accounts with Lincoln Trust as it was A always mixed up in some dubious deals. Our management B wouldn’t agree to invest in high-risk projects. C D 8. – Could you be more specific? Did your firm used to have deals A B with that bank? Would you mind rating it ? – No, that’s all right. C D The bank is sound. 9. – Would you mind considering the benefits and problems of A rescheduling the production line? – No, that’s all right. B C Let’s to close the unprofitable projects. D 10. Why don’t we to increase the production ? We used to produce A B more goods earlier and the customers would buy them all. C D Revision Translate the following into English, using modal verbs: 1. Ваша жизнь, видимо, была действительно ужасной, когда ваше издательство сократило количество нанимаемых наборщиков наполовину. 2. Стив Дженкинс легко нашел работу на полную ставку в печати. К счастью, он молодой и предприимчивый. После 116 внедрения компьютеров в печатном деле он мог бы годами оставаться без работы. 3. Жена и сын Пола Смита, должно быть, сейчас ищут работу. Его уволили, и кто-то должен зарабатывать деньги. 4. Он, должно быть, доволен тем, что доставляет цветы. Ему всегда дают хорошие чаевые. 5. Наверное, Барни Хорн пошел на флот, чтобы избавиться от напряженной обстановки дома, когда его отец потерял работу. 6. Ты не мог быть в центре переподготовки вчера, так как он был закрыт весь вчерашний день. 7. Барни Хорн стал очень раздражительным и он всегда в плохом настроении. Что с ним могло случиться? Не может быть, чтобы он потерял работу, он опытный наборщик. 8. Люси Хорн никогда не имела работы до того, как ее мужа уволили. Где ей найти работу? Должно быть, ей будет трудно убедить работодателей нанять ее. 9. Семейные проблемы заставили Майкла Борна работать на трех работах. Должно быть, он чувствует усталость. 10. Не может быть, чтобы у Эда была высокооплачиваемая работа. Он слишком стар для того, чтобы быть зачисленным на какие-либо курсы переподготовки. 11. Не может быть, чтобы Пол Смит нашел высокооплачиваемую работу; кто-то видел, как он красит здание. 12. Не может быть, чтобы он зарабатывал много денег. Он всегда занимает деньги у друзей. 13. Я удивлен, что Том безработный. Он, наверное, не обращался за работой. Он молод и его квалификация пользуется большим спросом. 14. Им следовало бы начать подготовку кадров. К тому времени, как новая пристройка будет готова, им следует иметь нужное количество обученных людей. 117 Glossary amount n a collection or mass considered as a unit in terms of its size, number, etc. amount v to be equal to, e.g. in quantity or in meaning average adj calculated by making an average of a number of quantities benefit n 1. anything that brings help, advantage, or profit 2. money provided by the government to people who need it, esp. to those who are sick or unemployed benefit v 1. to be useful, helpful or profitable to 2. to gain advantage; receive benefit (as a result of something) bill n 1. a list of things bought, used, eaten, etc. showing the total amount that must be paid 2. a piece of paper money; note bill v encourage v to send a bill to to give active approval to; support; foster enlist v 1. to (cause to) join the armed forces 2. to join a course of study, a political group, etc., esp. by putting one’s name on a list gain n hire n an increase in wealth or resources 1. the act of hiring or state of being hired 2. payment for this hire v 1. to get the use of (something) for a special occasion or a limited time on payment of a sum of money 2. to employ someone for a short time or for a particular purpose 1. agreement by contract to pay money to someone if something, esp. a misfortune, such as illness, death or an accident, happens to them 2. money paid to an insurance company in order to make or keep such a contract insurance n 118 information or resources that a group or project receives 1. to give a good reason for; explain satisfactorily justify v . 2. to be a good reason for 1. to (cause to) work or be in action; (cause to) operate v function 2. to carry on trade or business 3. to produce effects the amount of something produced by a person, output n machine, or industry money spent regularly (e.g. on insurance or heating) overhead n to keep a business running (=overheads) 1. to give (someone) a higher position or rank promote v 2. to help actively in forming or arranging (a business, concert, etc.) 3. to bring (goods) to public notice in order to encourage people to buy 1. the (measurable) limits within which variable range n amounts or quantities are included 2. the limits within which something operates, exists, or is effective; scope 1. to vary between limits; reach from one limit to range v another 2. to put in position or order, esp. in lines or rows; arrange 3. about or covering a long distance or time / of or covering a short distance or a short time 1. to pay rent for the use of rent v 2. to give the use of (a room, building, etc.) in return for rent a sum of money fixed to be paid as rent rental n to take the place of; to change (one person or thing) replace v for another, often better, newer, etc. to prepare dismissed or redundant employees or retrain v workers so that they can obtain a new profession return(s) n ( from) 1. an amount of money produced as a profit 2. an official account, esp. of money earned or spent input n 119 revenue n income, esp. that which the government receives as tax save v to keep and add to an amount of money for later use support n 1. active approval aimed at helping the success of something 2. money to live on support v 1. to provide, esp. money for (a person ) to live on 2. to pay the cost of (a habit, activity etc.) 3. to approve of or encourage Topics for presentations: 1. 2. 3. 4. 5. 6. 7. 8. Advantages and disadvantages of economic growth. Benefits of economic growth. Social costs of economic growth. Modeling economic growth. Employment in Britain versus employment in Russia. Unemployment in different countries. Advantages and disadvantages involved in creating new jobs. Alternatives available to the worker who has been displaced by technology (Role-play: Bruce Gilchrist’s research). 9. Economic costs of retraining workers versus social costs of redundancy. (Role-play: Ariana Shenkin’s reaserch) 10. Pension schemes in different countries. 11. Company pension schemes. (Bob Hardiman’s case & the articles of the pension fund at Harper & Grant Ltd.) 12. Metric and non-metric measures. Topics for essays The unemployed are responsible for their situations themselves. Labour problems are part and parcel of economic growth. The state should not intervene in the economy through the provision of unemployment benefits. 120 3 OVERVIEW OF A NATION’S ECONOMY GROSS DOMESTIC PRODUCT ECONOMIC INDICATORS Contents Section overview Developing vocabulary A nation’s economy GDP Economic indicators Understanding the reading Reviewing the concept 3.1 Lead-in 3.2 Language Input 3.3 Background Information 3.4 Comprehension 3.5 Speaking & Writing Language focus Language in context Presenting information Communication skills 3.6 Dialogue 3.7 Reading for Cross-cultural Associations 3.8 Case Study & Role-play 3.9 Grammar Back up 121 Saying or writing out numbers Fill-in exercises Writing reports & compositions Telephone Etiquette The national income accounting. Consumer skills: Practice with Passive Voice and Relative Clauses 3.1 LEAD-IN SECTION OVERVIEW Analyzing a national economy involves many factors, some of which cannot be measured by data. In this section you will learn about one measure of an economy’s success, gross domestic product and economic indicators that help planners to make predictions about the future of the economy. Discuss the following questions, make use of the prompts in brackets: 1. Do you think that we can be definitely positive about economic growth? (advantages, disadvantages, to be a mixed blessing, to keep somebody employed, to replace, waste products, natural environment) 2. Why is it difficult to make decisions about economic growth? (to improve economic conditions, to feel optimistic, to damage, to pollute, to be used up, unemployment) 3.2 VOCABULARY add v $29 million was added back from investments and GKN’s share of profits in related companies. cкладывать, прибавлять, присоединять, приписывать 29 млн. долларов были получены от инвестиций и доли доходов GKN от дочерних компаний. подход, метод, теория оценка на основе анализа доходов и расходов The earnings-and-cost Оценка на основе анализа approach to GDP counts the доходов и расходов учитывает money received for production. деньги, полученные от производства. approach n earnings-and-cost approach 122 оценка на основе анализа товарно-материальных потоков The flow-of-product approach Оценка на основе анализа to GDP calculates the value of товарно-материальных потоков goods and services received. учитывает стоимость товаров и услуг, полученных в рамках валового национального продукта. approach v приближаться, подходить asset n актив pl assets средства, имущество, активы, фонды, капитал, ресурсы The balance sheet is a chart Балансовый отчет – это схема, that includes the assets – items включающая активы, т.е. of value the company owns. ценности, находящиеся в собственности компании. flow-of-product approach избегать, уклоняться, прекращать Чтобы избежать двойного счета, To avoid double counting, экономисты принимают в расчет economists count a product or a только конечный продукт или service only in its final form. услугу. contract v сокращать(ся), снижать(ся), суживать(ся), сжимать(ся) Когда уменьшается ВВП, The economy is contracting в экономике происходит спад. when GDP declines. avoid v contraction n сокращение, сжатие, сужение To help predict expansion or Чтобы помочь предсказать contraction of the economy, подъем или спад в экономике, economists identified a number экономисты выделили ряд of indicators. индикаторов. equity n собственный (акционерный) капитал; капитал компании The statement of stockholders’ Отчет об акционерном капитале investment, or equity, includes или капитале компании включает information on the company’s в себя информацию об уставном stock, such as number of shares капитале компании, т.е. о outstanding and issued. размещенных и выпущенных акциях. 123 entrepreneur n Entrepreneurs, seeing the opportunity of profit in a growing economy, will form new businesses, such as consulting firms, restaurants and stores. exaggerate v предприниматель, владелец предприятия Понимая, что растущая экономика дает возможность получить прибыль, предприниматели будут создавать новые предприятия, например консалтинговые фирмы, рестораны, магазины. преувеличивать If both the flour the baker used Если считать муку, and the bread produced were использованную пекарем, counted, the flour would be и испеченный хлеб, то мука added in twice and so будет включена в расчет exaggerate the gross national дважды, и величина ВНП будет product. завышена. executive n, adj руководитель, администратор; специалист, сотрудник, служащий; исполнительный Годовой отчет содержит послание (главного) исполнительного директора корпорации акционерам. The annual report contains a letter to the stockholders from the chief executive officer (CEO) of the corporation. depreciation n износ, снашивание, обесценивание, амортизация Из выручки должны быть вычтены эксплуатационные расходы (68 млн. долларов как стоимость износа завода, зданий и оборудования). The costs of running the business (e.g. $68 million for depreciation of plant, buildings and equipment) have to be deducted from sales. final adj последний, заключительный, конечный Потребительские расходы включают в себя все расходы физических лиц на готовые товары и услуги. Consumer spending includes all expenditures of individuals for final goods and services. 124 gross adj валовой, большой, суммарный gross domestic product (GDP) валовой внутренний продукт, ВВП (совокупная стоимость товаров и услуг, созданных внутри страны за определенный период (обычно за год); один из основополагающих макроэкономических показателей) gross private domestic investment валовые внутренние частные инвестиции highlights n (pl) ключевые показатели Послание об итогах деятельности корпорации сопровождает схема ключевых показателей финансового положения компании. Accompanying the letter summarising the corporation’s performance is a chart of financial highlights. household n indicator n leading economic indicators lagging economic indicators coincident economic indicators input n домохозяйство (небольшая группа людей, проживающих в одном и том же жилище, объединяющих часть или весь свой доход и имущество и совместно потребляющих определенные типы продуктов и услуг, прежде всего жилищные услуги и продукты питания) показатель, индикатор прогнозные (опережающие) индикаторы итоговые (запаздывающие) индикаторы совпадающие индикаторы (текущие) вводимый (потребляемый) ресурс (фактор производства); затраты на производство, производственные затраты; расход 125 liability n пассив, задолженность pl liabilities обязательства, долги The balance sheet is a chart that Балансовый отчет – это схема, в includes the company’s которую входят обязательства liabilities: debts or claims компании: долги или требования against the assets of the по активам компании. company. measure n мера, измерение measure v to be measured by data измерять, мерить что-либо оцениваться посредством фактов Анализ национальной экономики включает в себя факторы, которые невозможно оценить посредством фактов. чистый, без вычетов Analyzing a national economy involves factors, which cannot be measured by data. net adj Чистый экспорт товаров и услуг составляет около 1% ВНП. Net exports of goods and services are about 1% of GDP. net n нетто, чистая прибыль после налогообложения output n продукт, продукция, выпуск продукции, выработка production n производство, изготовление; добыча, выработка; продукция, изделия; производительность, продуктивность, эффективность; объём выработки factors of production факторы производства Factors of production include land, labor, and capital, which are the resources needed to produce goods and services. Факторы производства - это земля, труд и капитал, представляющие собой средства, необходимые для производства товаров и услуг. 126 выполнение; функционирование; производительность; результат деятельности performance n Акционеры и потенциальные инвесторы используют годовой отчет компании, чтобы оценить результаты ее деятельности. Stockholders and potential investors use the annual report to evaluate the performance of the corporation. прибыль, польза, выгода profit n Прибыль до налогообложения, составившая $132 млн., равна прошлогодней, которая сама по себе была рекордной. The pre-tax profits at $132 million matched those of the previous year which were themselves a record. получение, расписка денежные поступления, выручка receipt n pl receipts Один из методов, с помощью которых определяется ВНП, оценивает денежные поступления. жалованье, оклад One of the methods of determining GDP measures receipts. salary n В доходы включаются: прибыль от бизнеса, заработная плата рабочих и жалованье служащих; налоги, получаемые правительством за предоставляемые им услуги. Business profits, wages and salaries, and taxes the government receives for its services are included in earnings. statement n отчет, заявление, выписка, ведомость tax n налог, сбор, пошлина Компания должна была заплатить налоги, составившие $51 млн., и $13 млн. миноритарным (мелким) акционерам. The company had to pay taxes amounting to $51 million and $13 million to minority shareholders. total n сумма, итог 127 total adj суммарный, полный, общий суммарное значение, общая сумма total value Суммарная выручка компании и прибыль от продаж были ниже прошлогодних в основном из-за транспортировки спецстали. Total group sales and trading surplus were lower than the previous year largely because of the transfer of special steels. total v суммировать, подводить итог, составлять Эксплуатационные издержки (жалованье, реклама, материально-техническое обеспечение), вычтенные из дохода, составляют прибыль или убыток. The operating costs – salaries, advertising, maintenance – deducted from the income total the profit or loss. transfer n передача (в собственность), перевод (денег), трансферт, перенос transfer v передавать; переводить (деньги) $1 млн был передан в резерв, чтобы снова быть пущенным в дело. $1 million was transferred to reserves for putting back into the business. transfer payments трансфертные платежи, передаточные платежи (выплаты населению по программам социального страхования и платежи процентов владельцам государственных обязательств) 128 DEVELOPING VOCABULARY 3.2.1 Consult a dictionary, write out the transcription and practise the pronunciation of the following words: a transfer an increase approach assets and liabilities coincident commerce composite dividend equity exaggerate executive gain highlights legal requirement measure microeconomics occur pre-tax profits purchase receipt surplus to execute to increase to transfer 129 3.2.2 Match the English word combinations with the Russian equivalents. 1. to fall into categories 2. to be added in twice in the balance sheet 3. to make educated decisions 4. to fulfil a legal requirement 5. earnings-and-cost approach a. принимать обоснованные решения b. микроэк. прибыль от продаж, макроэк. активное сальдо торгового баланса c. отчет об акционерном капитале d. активы и обязательства компании e. оценка на основе анализа товарно- материальных потоков 6. issued / outstanding shares 7. to evaluate the performance of the chief executive officer 8. trading surplus 9. assets and liabilities of the company 10. equity statement / statement of stockholder’s investment 11. pre-tax profits 12. expenditures of individuals for final goods and services 13. to measure operating costs in terms of 14. quarterly dividend per share 15. to predict expansion or contraction of the economy 16. a chart of financial highlights 17. flow-of-product approach 18. to avoid double counting 19. lagging economic indicators 20. net exports of goods and services 21. coincident economic indicators 22. income statement 23. leading economic indicators f. выполнять требования закона g. оценка на основе анализа доходов и расходов h. избегать двойного счета i. ежеквартальный дивиденд на одну акцию j. акции, выпущенные (эмитированные) / находящиеся в руках акционеров (размещенные) k. совпадающие экономические индикаторы l. схема ключевых показателей финансового положения компании m. оценить деятельность управляющего высшего ранга n. прибыль до налогообложения o. расходы физических лиц на готовые товары и услуги p. опережающие экономические показатели q. отчет о прибылях и убытках r. делиться на категории s. предсказывать подъем или спад в экономике t. запаздывающие экономические показатели u. чистый экспорт товаров и услуг v. быть дважды включенным в балансовый отчет w. оценивать эксплуатационные издержки посредством чего-либо 130 3.3 READING A NATION’S ECONOMY. GDP. ECONOMIC INDICATORS The complete economy comprises many millions of individual economic units: households, firms, and the departments of central and local government. Together, their individual decisions determine the economy’s total spending, its total income, and its total level of production of goods and services. Economists study different sides of the economy in different ways, they may show how one product market operates, or the way one group of the consumers decides how to spend money. Microeconomics is the part of economics that is concerned with individual areas of economic activity, such as those within a particular company or relating to a particular market. Macroeconomics is the branch of economics that is concerned with the major, general features of a country’s economy, such as the level of inflation, unemployment, or interest rates. Macroeconomists use various methods to evaluate the performance of the economy. Statistics1 measure gross domestic product, or GDP, which computes the output produced by factors of production located in domestic economy regardless of who owns these factors. All the goods and services produced must be counted, and their value (e.g. in dollars and cents) determined. For example, every new car and haircut must be included. If a farmer produces 1,000 bushels of apples worth $10 per bushel, that farmer would add $10,000 to the year’s GDP. In the United States the Department of Commerce computes GDP. Information is collected for every good or service produced in the nation during a year, but not everything is counted. Three factors limit the types of products counted. First, only goods and services produced during a specific year are counted. Second, not every good or service produced or sold during the year can be counted. For example, if both the flour the baker used and the bread produced were counted, the flour would be Statistics – статистика (наука) + Singular Verb; Statistics – статистические данные + Plural Verb. 1 131 added in twice and so exaggerate the gross national product. To avoid this problem, economists count a product or a service only in its final form. They count the baker’s flour in its final product form – as a loaf of bread or cake. Products in their final form are called final goods and services. Third, GDP includes only goods sold for the first time. When goods are resold or transferred, no wealth is created. One way in which economists measure GDP is the flow-ofproduct approach. Using this method, they count all the money spent on goods and services to determine total value. Each time a new product is sold, GDP increases. For example, when a household, a business or a government buys a chair for $50, that purchase causes GDP to increase by $50. Spending for products falls into four categories. The first, and the largest, consumer spending, includes all expenditures of individuals for final goods and services. Called personal consumption expenditures, this category accounts for about 65 per cent of GDP. The second category includes all spending of businesses for new capital goods. Since these purchases are investments, this category is called private domestic investment. It accounts for about 13% of GDP. The third category includes spending of all levels of government. Government purchases of goods and services account for about 21 per cent of GDP. The fourth category is net exports of goods and services, about 1% of GDP. Another way of determining GDP is the earnings-and-cost approach. This method accounts for all the money received for the production of goods and services, it measures receipts. Figuring gross national product by counting what people receive requires calculating what the entire country earns for the goods it makes and the services it performs. Included in earnings are such things as business profits, wages and salaries, and taxes the government receives for its services. Also counted are interest on deposits, money received as rent, and any other forms of income. Business and government planners, investors, and consumers make decisions based on their expectations of future economic performance. To help predict expansion or contraction of the economy, government economists identified a number of 132 indicators. They fall into three categories: leading, coincident, and lagging. Leading economic indicators rise or fall just before a major change in economic activity. Coincident economic indicators change at about the same time that shifts occur in general economic activity. Lagging economic indicators rise or fall after a change in economic activity. Following and interpreting all economic indicators is timeconsuming. The US Commerce Department, therefore, lists a composite index, or single number, for each of the three sets of indicators. These composite indexes are an average of all the indicators in each category. GDP Components 4 133 3.4 COMPREHENSION UNDERSTANDING THE READING 3.4.1 Give extensive answers to the questions. Use the following expressions to start your answers: I suppose ...; The idea behind the statement ... is that ...; It is essential to ...; To sum up what has been mentioned ...; It’s like this ...; It is impossible to decide whether ...; 1. What kind of goods and services does GDP count? 2. How to single out the kinds of goods and services not included in GDP? 3. What is the difference between the subjects of microeconomics and macroeconomics? 4. Why is it useful to have GDP figures available every year? 5. Why are final goods and services emphasized in measuring GDP? 6. What must be included if GDP is figured by counting expenditures? 7. What must be included if GDP is figured by counting income? 8. What are the three categories of economic indicators? 9. What group of economic indicators is related to the present? What makes you think so? 10. Why is personal income a coincident indicator rather than a leading or a lagging one? 11. What are the categories of spending included in the flow-ofproduct approach of measuring GDP? 12. How is a composite index of economic indicators compiled? 134 REVIEWING THE CONCEPT 3.4.2 Say whether these statements are true (T) or false (F), and if they are false say why. e.g. I believe it is true that … . I suppose it is false that … because … . TF 1. Analyzing a national economy involves a very important measure of an economy’s success, i.e. gross domestic product, that helps planners to make predictions about the future of the economy. TF 2. Microeconomics is the branch of economics concerned with large-scale or general economic factors, such as interest rates and national productivity, while macroeconomics is the part of economics concerned with single factors and the effects of individual decisions. TF 3. In the United States the Department of Commerce computes GDP which is the value of all goods and services produced for sale or resale during one year. Information is collected for every good or service produced in the nation during a given year without any limitation. TF 4. Using the method called the flow-of-product approach economists measure GDP and count all the money spent on goods and services to determine total value. Each time a new product is sold, GDP increases. TF 5. Spending for products falls into four categories. The first, and the largest, is personal private domestic expenditures. The second category includes all spending of businesses for new capital goods. This category is called gross business domestic investment. The third includes spending of all levels of government. The fourth category is net exports of goods and services. TF 6. The earnings-and-cost approach accounts for all the money received for the production of goods and services, i.e. business profits, wages and salaries, and taxes the 135 government receives for its services, interest on deposits, money received as rent, and any other forms of income. TF 7. Government economists identified a number of indicators in order to forecast expansion or contraction of the national economy. Leading economic indicators rise or fall after a major change in economic activity. Coincident economic indicators change at about the same time that shifts occur in general economic activity. Lagging economic indicators rise or fall before a change in economic activity. TF 8. The US Commerce Department uses a composite index, or single number, for each of the three sets of indicators to simplify the process of following and interpreting all economic indicators. 3.4.3 Complete each statement with the correct item from the list that follows. (a) microeconomics (b) gross national product (c) flow-of-product (d) macroeconomics (e) gross domestic product (f) earnings-and-cost 1. ... the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments. 2. ... is the study of the total performance of the economy. 3. The ... approach to GDP calculates the value of goods and services received. 4. The ... approach to GDP counts the money received for production. 5. ... is the study of specific markets. 6. A country's … is the total value of all the goods it has produced and the services it has provided in a particular year. 1 2 3 4 136 5 6 3.5 SPEAKING & WRITING Language focus 3.5.1. Saying or writing out numbers. a. Look at the following survey and a report based on the extract. Every few years a questionnaire is sent to readers of the International News. Here is the survey of the answers to the question “Approximately how many nights have you spent in hotels in the last 12 months?” 1 + nights 8 + nights 15 + nights 30 + nights 50 + nights 75 + nights 100 or more nights Average number of nights 94% 84% 69% 45% 25% 14% 9% 36 In the last 12 months IN readers have stayed in hotels for an average of 36 nights. Nine per cent have spent at least 100 nights away from home, 14 per cent have been away for 75 nights or more and 25 per cent have used hotels for a minimum of 50 nights. 94 per cent of readers have stayed in hotels for at least one night. b. Look at another extract from the same survey and write a short report similar to the report above. “Approximately how many international air trips have you made in the last 12 months?” Any trip 3 + trips 6 + trips 11 + trips 20 + trips 35 or more trips Average number of air trips 137 94% 77% 54% 34% 19% 8% 12 3.5.2. Fill in prepositions or adverbial particles wherever necessary. Leading indicators measure a wide variety ... business activities that tend to rise or fall just ... a major change ... economic activity. The leading indicators include information ... the number ... workers employed, construction activity, and the formation ... new businesses. All three ... these business activities will increase as demand increases and the economy begins to expand. Industry will begin hiring new workers to increase production, and new factories will be built. Entrepreneurs, seeing the opportunity ... profit ... a growing economy, will form new businesses, such as consulting firms, restaurants and stores. 3.5.3. a. Change the italicised expressions by the synonyms from the box. Fill in the grid below. a. economic indicators e. flow-of- product method b. composite index f. leading economic indicators c. price index g. earnings-and-cost approach d. plan indicator h. gross domestic product _____________________________________ Measuring (1) the value, in dollars, of all final goods and services produced for sale during one year can show whether the economy of a country is growing or shrinking, healthy or sick. It is a standard by which the economy as a whole can be judged. The economy is expanding when GDP increases. The economy is contracting when GDP declines. When GDP is determined by (2) a method of computing the total value of goods and services produced by counting all the money spent on them, your contribution is measured by your spending. When you spend money, you receive products and services in return. When GDP is determined by (3) a method which computes the total value of goods and services produced by counting all the money received for them your contribution is measured by your production. Your major productive resource probably is your labour. The income you receive from working is the measure of the amount of work you do. 138 The gross national product is a measure of current economic performance and growth, but GDP gives no indication of future growth. Economists, working for the United States Department of Commerce, have therefore developed three groups of (4) statistics that help economists to measure economic performance. The (5) economic measurement that averages several leading economic indicators comprises three major categories. The first category of statistics that make up the composite index of (6) categories of statistics that tend to rise or fall just before a major change in economic activity is employment. The second category is production. The third category includes measures of business activity. 1 2 3 4 5 6 b. Use the information you now have to give it a suitable headline; c. Put 6 questions to the text, making use of the combinations given in the box. 3.5.4 Fill in the gaps with the suitable expressions from the box. (a) to count the value (b) earnings-and-cost approach (c) flow-of-product approach (d) GDP (e) total cost (f) calculation (g) data (h) accurate (i) determine While the …1… measures spending; the …2… measures receipts. For example, an economist using this approach …3… of a chair might include in …4… the $20 for the lumberyard, the $5 for the paint store, the $5 for wear and tear on tools used to make the chair, and the $20 for the labour. The …5... would be $50. By measuring how much money each factor received, the economist can …6... that the value of the chair is $50. No way of determining gross domestic product is entirely …7... . Some …8... are hard to obtain. Government economists must estimate some information. The two approaches discussed here lead to a rough …9... of the total value of the economy’s production in a given year. 1 2 3 4 5 139 6 7 8 9 3.5.5 Do it in English: A.: Анализ национальной экономики включает множество факторов, но меня заинтересовал один из самых популярных способов измерения национального благосостояния – валовой внутренний продукт, так как … B.: Можно я Вас перебью? A.: Да, пожалуйста. B.: А что такое валовой внутренний продукт, что Вы знаете о нем? A.: Насколько мне известно, ВВП – это стоимость всех товаров и услуг, произведенных в стране для продажи в течение одного года. Этот объем должен быть выражен в стоимостной форме. B.: Простите, что я вмешиваюсь, но знаете ли Вы, кто занимается исчислением ВВП, скажем, в США? A.: Министерство торговли. B.: Я бы хотел выяснить некоторые детали, касающиеся видов исчисления ВВП. A.: Пожалуйста. Первый метод – когда суммируется стоимость всех товаров и услуг, произведенных в данном году. По второму методу учитывается только конечный результат, исключая двойной зачет. По третьему методу в состав ВВП включаются товары, проданные один раз, так как при перепродаже или передаче товара ВВП остается без изменений. B.: Извините, можно мне сказать? A.: Позвольте мне закончить. Существует еще так называемый метод расходов. Расходы делятся на несколько категорий: первая – это индивидуальные расходы; вторая – это инвестиционные расходы коммерческих предприятий, третья – это правительственные расходы B.: Можно мне теперь добавить? Еще одним методом исчисления ВВП является “доходный” метод. Он включает все доходы, полученные в течение года: доходы от предпринимательской деятельности; зарплату; арендную плату; налоги, полученные государством; проценты по вкладам. 140 A.: Считаете ли Вы, что с помощью разного рода методов можно предсказать спад и подъем в экономике? B.: Безусловно. Для этого в экономике существуют индикаторы. A.: Можно мне внести маленькую поправку? Насколько я знаю, индикаторов три: прогнозные, итоговые и совпадающие. Изменение прогнозных индикаторов опережает изменения в экономической деятельности; изменение совпадающих происходит одновременно с ними; а изменение итоговых происходит после резкого спада или подъема экономики. WATCH OUT: translator's "false friends" evaluate – measure – assess – score – rate - compute 3.5.6 a. Look up the dictionary to find the difference between the words evaluate-measure-assess-score-rate-compute. Match the words with their meanings. Fill in the grid below. 1 evaluate A ascertain the size, amount, or degree of (something) by using an instrument or device marked in standard units 2 measure B assign a standard or value to (something) according to a particular scale 3 assess C calculate (a figure or amount) 4 score D evaluate or estimate the nature, ability, or quality of somebody or something 5 rate E 1. form an idea of the amount, number, or value of something 2. assess 3. math find a numerical expression or equivalent for an equation, formula, or function 6 compute F 1. gain (a point, goal, run, etc.) in a competitive game 2. be worth (a number of points) 1 2 3 4 141 5 6 b. Fill in the blanks with evaluate-measure-assess-score-ratecompute. Put them in the appropriate form. 1. If you … something or someone, you consider them in order to make a judgement about them, for example about how good or bad they are. 2. To … a quantity or number means to calculate it. 3. He is generally … Italy's No. 3 4. They will first send in trained nurses to … the needs of the individual situation. 5. I tried to … the cash value of the ponies and horse boxes. 6. The market situation is difficult to … . 7. If you … the quality, value, or effect of something, you discover or judge how great it is. 8. It is difficult … the damage caused by the economic downturn as yet. Society often … success in terms of money. 9. 10. Firstly, you should compare loan sources. Secondly, it is necessary to … interest. 11. The test was to … aptitude rather than academic achievement. 12. In a sport or game, if a player … a goal or a point, they gain a goal or point. 13. If you … a particular number or amount, for example as a mark in a test, you achieve that number or amount. 14. Microeconomists use various methods to … the performance of the economy. 15. If you … someone or something highly, you think that they are good. 16. A “yes” answer … ten points. 17. The article will help people … the recent changes in the tax policy. 142 Presenting information 3.5.7 a. Write a 150-word composition about the ways to measure changes in the nation’s economy. b. Consider the tasks involved in writing a composition. Decide in which order you would do the things if you were writing it. Number the items. One of them is non needed. a. Check your grammar, spelling, punctuation and style. b. Write the body of the report. c. Summarise the report in a sentence. d. Decide what information is important and what is irrelevant. e. Write the introduction: state the subject, state the purpose, summarise findings. f. Consider the purpose of your report; who it is for, why he or she wants it. How will he or she use it? g. Arrange the points of information in a logical sequence and in order of importance. Make rough notes. h. Read the text aloud to yourself, or better, to someone else. i. Ask someone else to look critically at your draft. j. Check your illustrations. k. Write the conclusion (and recommendations). l. Collect all relevant material – notes, documents. m. Examine the draft. Does it do what the composition is exactly to do? n. Draft a working plan on a separate sheet of paper. o. State the aim and emphasis of the composition. 1 2 3 4 5 6 7 8 143 9 10 11 12 13 14 Communication skills TELEPHONE ETIQUETTE What to say and how to behave: Task 1. Read and memorize the following formulas of etiquette. The techniques of telephoning are very much the same in all countries. But you should remember your good telephone manners: When talking on the telephone – speak clearly. Do not shout and take your cigarette out of your mouth. Make sure that your conversation with a busy person is as brief as possible. If a wrong-number call comes through don’t lose your temper. Just say: “Sorry, wrong number.” Then hang up but don’t bang the receiver. When you get a wrong number don’t ask: ”What number is this?” It is good manners to ask: “Is this three-six-four-onenine?” If not – apologize. When making a call always identify yourself. It’s especially important if you are calling on business. E.g. “This is John Martin of Harper & Grant Ltd. Could I speak to Mr. Duncan …?” If you have a visitor, do not carry on a long chat while your visitor tries hard to avoid listening to your conversation. You should say you are busy at the moment and say: “May I call you back in a little while?” But you mustn’t forget about it. When calling a friend who doesn’t recognize your voice – don’t play: “Guess who?” Announce yourself promptly. When you invite people to a party or the like you shouldn’t ask: “Will you be busy on Sunday night?” The correct way is to say: “We’d like to have you over for dinner on Sunday.” And finally, remember: if you make the call, you should terminate it yourself. You shouldn’t “drag it out.” 144 Task 2. Read and memorize the following formulas of the telephone etiquette. Addressing Replying Hello! Is this/that Harper & Yes, that’s right. Grant Ltd? Sorry, wrong number/I’m afraid you’ve got/dialed the wrong number. Wrong number, I’m afraid. There’s some mistake, I’m afraid. Can/Could I speak to Mr. Wiles, please? I’d like to speak to … Yes, it’s me/Mr. Wiles. Speaking. Sorry, there’s no one by that name here. What number were you calling/did you dial?/Did you dial right? Hello, is that Ms. Harvey? I’m afraid you have the wrong number. I’m not Ms. Harvey. Mr. Jones is speaking Sorry, I didn’t recognize you/your voice at once. Sorry, we’ve been cut off/disconnected. Are you still there? Sorry, can’t hear a thing. I’ll call you back. Try ringing/calling me again. Is Mr. Duncan there? Could I speak to him? Is Mr. Martin there? It’s urgent. Could you please/kindly tell him he’s wanted on the phone? Would you tell Mr. Grant that I’m on the phone? Can I trouble you to tell H.G. that I’d like to speak to him? Mr. Duncan, it’s a call from Harper & Grant Ltd. Mr. Martin, you’re wanted on the phone. Mr. Martin, it’s for you/the call is for you. Mr. Grant, Mr. Duncan is calling. Mr. Grant, Mr. Duncan is on the line. Mr. Duncan, there’s a call for you from the Ministry. Mr. Grant, the call is for you. 145 Hello, is Mr. Wiles there? Just a minute/moment. Coming. Just a minute/moment. On his/her way. Hold on, please. Can you hold on a minute? Will you wait please? I’m afraid he’s out at the moment. Could you call back later/say, in an hour? Could you call later, if that’s not too much trouble? Mr. Wiles is still out. Would you like to leave a message?/any message? Mr. Wiles is not in at the moment. And who’s calling/speaking? Task 3. React to the following information. – H.G. called/telephoned you. – Nick called and left a message. He wants you to call him back tonight. – There was a call for you from Mrs. Harvey. – They expect you to call the Ministry at four sharp. – Somebody called but didn’t leave his name. Task 4. Ask your partner what is the proper thing to do when: you are calling on business; you get a wrong-number call; you dial the wrong number; you started the telephone conversation and want to terminate it; you have a visitor and you get a call; you invite people to a party. Task 5. Compose telephone dialogues on the following topics. Asking for a business appointment. Clarifying the details of the order. Inviting your friend to the museum or theatre. 146 3.6 DIALOGUE a. Replace the Russian word combinations by their English equivalents. b. Be ready to summarise what is mentioned about the national income accounting1. A: You see, almost every day the newspapers and television refer to the problems of inflation, (безработица), and slow growth. Needless to say, what the government can and should do is the subject of lively debate both within the field of economics and in the country at large. B: OK, you’ve got a point. These issues are widely discussed; they even help (определять) the outcome of elections. Could you put me in the picture about the particulars of a government’s economic policy? A: As a matter of fact, the government has a variety of policy measures through which it can try to affect the (функционирование) of the economy as a whole. It levies taxes, commissions, (расходы), and influences the (предложение денег), (процентные ставки), and the (обменный курс). B: It’s not surprising that economic decisions of the government are the subject of heated discussion, especially the (доходы и расходы страны). A: I am sure you are aware that governments raise revenue both through direct taxes levied on incomes (wages, (арендная плата), interest, and profits) and through indirect taxes (VAT, petrol duties, cigarette taxes). What is more important is how the income is allocated. B: It is as simple as that: taxes are raised to meet two kinds of expenditure. Well, first of all government spending on goods and services comprises (закупки) by the government of physical goods and services. It includes spending on the wages 1 Cистема национальных счетов, СНС (система национального учета, цель которого определение обобщающих макроэкономических показателей о состоянии экономики страны); исчисление национального дохода. 147 A: B: A: B: A: B: A: B: of civil servants and soldiers, the purchase of (офисное оборудование), tanks, and military aircraft, and investment programmes in roads and hospitals. But governments also spend money financing transfer payments or (льготы). These include pensions, (пособие по безработице), and subsidies to private firms (investment grants) and to (принадлежащий государству) firms (e.g. paying for loss-making rural railways). And this is the second kind of expenditure to be met. By the way, (передаточные платежи) are payments that do not require the provision of any goods or services in return. Then transfer payments add to neither national income nor (общий объем продукции, произведенной в данной стране, совокупный продукт). Exactly. They should not be included in (валовой внутренний продукт). There is no corresponding value added or net output produced. Do you mean that (налоги) and transfer payments merely redistribute existing income and spending power away from people being taxed and towards people being subsidized? Right. Couldn’t have put it better myself. In contrast, spending on goods and services produces a net (выпуск продукции), gives rise to corresponding factor earnings in the firms supplying this output, and hence gives rise to additional spending power of the (домохозяйства) receiving this income. Hence government spending on (товары и услуги) should be included in GDP. Precisely. Thus, the purpose of (исчисление национального дохода) is to provide a logically coherent set of definitions and measures of national output. c. Sum up: - A Government’s economic policy - The performance of a country’s economy - The way the governments raise revenue - Allocation of the national income - The system of taxation 148 3.7 Reading for Cross-cultural Associations a. Read the excepts below about the Dutch, German and French national economies. A. As a whole the Netherlands can be seen as a finely-tuned machine where rules and regulations, permits and prohibitions, time schemes and spatial planning all and norms abound and there are controls contribute to keeping the economy running smoothly and to promoting the well-being of the 16-million people who live there. In the economy rules, regulations and norms abound and there are controls in place everywhere. Weights and measures, licenses and qualifications, percentages and time standards, quantity and quality – they are all controlled and registered, by officials who are rarely corruptible and do strictly administer the letter of the law. Besides ISO1-norms and the like, there are strict regulations on the ecological, legal and taxation aspects of work. Needless to say, labour conditions are highly regulated too: safety and hygiene, time limits, on working with computers or driving trucks, quality standards and ergonomic aspects of machines and furniture. The height of chairs, the time spent behind the computer, noise levels, air quality – these are all prescribed and checked. A researcher discovered, for instance, that Dutch office workers have more direct daylight on their desks than many of their colleagues elsewhere. Such is the labour law. The Dutch social benefits system is built on a rather positive relationship (“trust”) between the citizens and the state. Dutch people generally consider the state to be a benevolent organism that is there to serve them. Good governance, incorruptibility and trustworthiness are taken for granted. Citizens pay their taxes and the government secures a good existence, be it smooth roads, a clean environment or good social benefits when needed. 1 International Organization for Standardization ИСО, Международная организация по стандартизации 149 B. Germany ranks among the world's most important economic powers. Germans often describe their economic system as a "social market economy." The German Government provides an extensive array of social services. Although the state intervenes in the economy through the provision of subsidies to selected sectors and the ownership of some segments of the economy, competition and free enterprise are promoted as a matter of government policy. The Government has worked hard to improve competitiveness by reforming the nation's social and fiscal systems but these efforts have run into difficulties. Changes to the German "social compact" have met with strong resistance from labor and management alike. Germany's greatest economic problem is its persistently high unemployment rate. Although a recent "Alliance for Jobs" program to trade wage restraint for job guarantees has had some success, it will probably not significantly decrease Germany's high unit labor costs any time soon. Massive layoffs by some of the country's biggest firms have spawned a feeling of insecurity new to western Germans. However, despite the growing clamor to address structural rigidities in the labor market and excessive government regulation, the economy remains fundamentally strong and internationally competitive. Abundant human capital, low corporate debt burdens, and cooperative industrial relations continue to characterize the German economy. Additionally, Germany is strategically placed to take advantage of the rapidly growing central European countries. Although the Germans face fundamental economic adjustments, they have the discipline and the resources to meet the challenges ahead. C. France's economy combines extensive private enterprise (nearly 2.5 million companies registered) with substantial (though declining) government intervention. The government retains considerable influence over key segments of infrastructure sectors, 150 with majority ownership of railway, electricity, aircraft, and telecommunication firms. Despite figures showing a higher productivity per hour worked than in the US, France's GDP per capita is significantly lower than the US GDP per capita, being in fact comparable to the GDP per capita of the other European countries, which is on average 30% below the US level. The reason for this is that a much smaller percentage of the French population is working compared to the US, which lowers the GDP per capita of France, despite its higher productivity. As many economists have stressed repeatedly over the years, the main issue with the French economy is not an issue of productivity. In their opinion, it is an issue of structural reforms, in order to increase the size of the working population in the overall population. Lower working hours and the reluctance to reform the labour market are mentioned as weak spots of the French economy in the view of the right and lack of government policies fostering social justice by the left. Recent government attempts at adjusting the youth labour market, to combat unemployment, have met with fierce resistance. Since the end of the Second World War the government made efforts to integrate more and more with Germany, both economically and politically. Today the two countries form what is often referred to as the "core" countries in favour of greater integration of the European Union. b. Read the texts again in order to find the facts referring to the following subjects. Discuss them with an interlocutor. 1. 2. 3. 4. 5. The government regulation of the economy. Social policy. The strongest points in economic policy. The questionable items in the economic policy. The major points of difference between the three countries. c. Compare the situation in these countries with that in Russia. 151 3.8 CASE-STUDY & ROLE-PLAY Consumer skills READING AN ANNUAL REPORT The case Just as teachers send out report cards to the Dean’s office each term, corporations issue annual reports summarising the progress made in the past year. Stockholders and potential investors use the annual report to evaluate the performance of the corporation. The ability to read an annual report is a basic skill for understanding how a business operates. Here are extracts from the Managing Director’s report about the performance of the company, called GKN. “The results for 2XXX overall were good. While total group sales and trading surplus were lower than the previous year, this was largely because of the transfer of our special steels and forging operations to be part of United Engineering Steels, the company jointly owned by BSC and ourselves. The pre-tax profits at $132 million matched those of the previous year which were themselves a record. In the business sectors, however, the trading results were mixed. The automotive sector was not uniformly bleak, however, and a passenger car sales were buoyant generally. Our factories producing car components had a good year, particularly our transmission companies on the continent. There the trading surplus rose by $21 million to a total of $77 million ... “ “Group Sales for 2XXX amounted to $2059 million . From this figure the costs of running the business had to be deducted: – $599 million for wages, salaries and related costs; – $1246 million for materials and services: – $68 million for depreciation of plant, buildings and equipment; That left a trading surplus of $146 million. From the trading surplus of $146 million : – interest on bank borrowings and other loans to finance the business amounting to $43 million had to be deducted; – $29 million were added back from investments and GKN’s share of profits in related companies. 152 That produced a profit before tax of $132 million. GKN then had to pay taxes amounting to $51 million and $13 million to minority shareholders. This resulted in earnings of the year of $68 million. GKN paid its shareholders a dividend on their investment which amounted to $31 million, and extraordinary items amounted to $36 million mostly arising from the sale of Steelstock and restructuring of the French autoparts distribution division. This left $1 million which was transferred to reserves for putting back into the business ...” Case Analysis S t e p 1. Understand Annual Reports The annual report is a message to the stockholders (the owners) of a corporation from the corporate management. The report tells the stockholders the company’s financial status at the end of the fiscal year and what the management sees for the future. Also, the annual report fulfils a legal requirement. The Securities and Exchange Commission (SEC)1, a federal agency in the USA, requires corporations to publish financial information about their firm. With such information, investors can make educated decisions. Libraries stock annual reports of major corporations. S t e p 2. Read the Financial Information Annual reports generally are divided into two sections. The first section contains a letter to the stockholders from the chief executive officer (CEO) of the corporation. Accompanying this letter summarising the corporation’s performance is a chart of financial highlights. Also frequently included in the first section is an overview of the corporation’s organization. The second section includes statistics on the company’s performance. Most of the information appears in charts and graphs. The balance sheet is a chart that includes the assets (items of value the company owns) and its liabilities (debts or claims against the assets of the company). The balance sheet represents the financial picture of the firm at one instant in time. 1 Комиссия по ценным бумагам и биржам (США). 153 The income statement shows the profit or loss of the company for the year. This chart reports the income the company received from sales, interest, and other sources. The operating costs – salaries, advertising, maintenance – deducted from the income total the profit or loss. The statement of stockholders’ investment, or equity, includes information on the company’s stock1, such as number of shares outstanding2 and issued3. Various parts of the annual report can be used to determine whether a corporation is profitable. In addition to reporting on this current year, most corporations include in their annual reports comparisons of the current year and the prior year’s financial information. Also important to stockholders and investors is the company’s return on sales. This percentage is calculated by dividing profit by total sales or revenue. If a firm sold $1mln. worth of its products and its profit was $100,000, return on sales would be 10%. S t e p 3. Evaluate Performance Whether a particular company’s stock is a good investment depends on the investor’s goals. If the real goal is income, the investor would consider a company that has consistently paid high dividends over the years. If the goal is a long-term profit, the investor would consider a company that has growth potential. The company may not pay dividends since it will be using profits to expand. However, if the company grows and stays profitable, the price of its stock will increase. The investor willing to wait may see the stock price rise and so produce a long-term profit. Since each industry’s needs differ, investors compare the reports of several companies in the industry. Situation You try to learn what an annual report of a company reads. What you must decide Find out the way to invest your money most effectively. 1 Доля акций, акции. Размещенные (акции), находящиеся в обращении, непогашенные (о ценных бумагах) ; не предъявленные к платежу (о чеках, векселях) 3 Эмитированные, выпущенные (акции). 2 154 Cast Student A Student B Student C Student D Mr. E, CFO1 of a corporation Student E, Mr. E’s adult child Mr. F, a broker Mr. G, an investor Role playing a. Student A and Student B As you are trainees at the accountant’s, you consider different types of documents. Looking through the annual report of GKN you try to determine whether a company has earned a profit or suffered a loss. Make use of the helpful phrases: I’d like to start by reminding you … . Well, I’m very interested in hearing your views on … . Good. So let me start by reviewing … . My estimate is that … . So, if I understand you correctly. I am sure you are aware … . Now, let’s turn to … . We have very clear evidence … . Fair enough. Go on. I am confident that … . Yes, I know that but … . If we look into the near future … . Let me move on now to … . I won’t bore you with the details … . Do you mind if I just interrupt…? 1 (Chief Financial Officer) глава финансовой службы, финансовый директор, финдиректор. 155 Let me just add that … . I’d like to raise the question of … . So, in conclusion, I’d like to stress that … . b. Student C and Student D Having got your first pay you decide to invest some money in stocks. Your partner suggests investigating the matter. You try to determine the rate of return on investment for the following stock: Quarterly dividend per share, $ 1.35 Price of stock, $ 25.00 Discuss whether this stock is a better investment than a savings account. Make use of the helpful phrases: I wonder if you’d mind telling me ... . What I’d like to know is ... . Might I interrupt at this point? Please do. Could I say something on that point? That’s a good question and one which I have taken into account. I’d like to outline the factors that … . Now, as you can see … . Excuse me, but could I just say something? So if I may go on? Yes, please. I can’t let that pass ... . Could I just pick up on that point? Sorry to butt in, but ... ? Could I just correct one small detail ? May I add something to that ? Yes, it does look that way. Could I just finish? c. Mr. E, CFO of a corporation and Student E, his adult child Your child asks your advice as to profitable investment. Explain why an investor should be interested in a balance sheet. Discuss 156 whether the statement of stockholder’s equity and income statement are of any use. Make use of the helpful phrases: What I really need to know is ... . I’d like to get some details about ... . If I could just get a word in ... . I’d like to raise the subject of ... . Okay, there are a couple of issues I’d like to bring up. Would you like to put me in the picture? Firstly, … . I suppose you are right. There is another issue. Another factor is … . Yes, that’s probably true. So if you take a look at … . At this point I should mention that … . Can I interrupt? I’d now like to move on to … . In other words, … . In my opinion what you should do is … . That’s exactly my point. If you could just allow me to finish. So that brings me to the final factor. d. Mr. F, a broker and Mr. G, an investor Consider an extract from an article analysing an annual report of a company. Explain whether or not this firm’s stock is a good investment and why. “This week we’ve chosen two go-ahead high-tech companies – Canford and Lybrandy. They’ve both been hitting the headlines of the business pages quite a lot recently and we’ve had a number of enquiries from our regular investors. Canford performed much better than Lybrandy last year. Net income was well up on the previous year – a total of $202 million – whereas Lybrandy announced just $55 million profit for the year. 157 However, as usual, it’s worth looking a bit more closely at the figures. Lybrandy accounted for $45 million in development costs – while Canford only posted $6 million. They’ve both been working on some new electronic sensor systems for environmental projects. Both have filed patents. In fact Canford made the asset side of their balance sheet look very healthy by putting down $195 million as intangibles, representing the future value of their patents, while Lybrandy have a much more modest figure – just $22 million. We’d like to draw your attention to the acquisition Canford made during last year – that was Pitmax International. They added to their equity about $47 million. To sum up the above mentioned information we should say that Canford have produced some very impressive results. “ Make use of the helpful phrases: Can you give me some information about ... ? Let’s get started. Sure. Well, I’ve been looking at … . On the face of it, … . It’s worth looking a bit more closely at … . So, if I understand you correctly … . Right. I see what you are getting at. 1 I am going to sit on the fence with this issue. There are some other things I’d like to mention. Finally, I’d like to draw your attention to … . Okay, thanks. Could you just sum up? Well, my feeling is that … . What is your position on ... ? May I take a point? Could I come in here? 2 Is it possible to strike a happy medium in this case? Certainly. Please do. Thank you, your advice is always welcome. 1 2 В этом вопросе я намереваюсь занять выжидательную позицию. Можно ли найти золотую середину в этом случае? 158 Making a Decision In coming to a decision, consider the following points: What an educated investor should bear in mind when investing in stocks. The message given by the annual report of a company. What a balance sheet of a company can tell a wise investor. What other factors should be discussed? Your decision: 159 3.9 GRAMMAR BACK UP PRACTICE WITH PASSIVE VOICE AND RELATIVE CLAUSES LEAD-IN Exercise 1 Task 1. Familiarize yourself with the text and explain the use of the passive voice. Consult the Grammar notes below. Translate the text into Russian. Supply it with the suitable title. Hector Grant, Managing Director, is worried about productivity. He has decided to engage consultants, who are specialists in work study techniques, to see how efficiency and output can be improved by Harper & Grant. Any good management is keen to improve efficiency, but nowadays this has become a largely specialised field, and outside consultants who are experienced in particular techniques can be called in to study work systematically and suggest improvements and ways of stepping up, increasing, productivity. When this applies to manual work it is usually called work study, and the idea is to find out the most efficient way of doing something before the formulation of piece rates or incentive bonus schemes. The study of office systems and paperwork is usually called O. & M. (Organisation and Methods). Work study could, of course, be applied to routine office jobs, such as invoice typing. Mr. Grant has decided to call in a firm called Smith-Weston Consultants Ltd. Their representative, Mr. Scott, is present at a meeting called by Mr. Grant to explain the service to his executives. Mr. Grant thinks that production methods on the factory floor could be improved, but he has never considered that a check on efficiency might run from the top to the bottom of the firm. Task 2. Turn the given situation into a possible dialogue between Hector Grant and one of his colleagues. 160 PRACTICE WITH PASSIVE VOICE Ask yourself these questions when checking passive voice. 1. How do we form passive verbs? a. In an “active” sentence, the subject performs the action. In a “passive” sentence, the subject receives the action. Active: Economists study different sides of the economy. Passive: Different sides of the economy are studied by economists. b. The rules for choosing tenses in the passive are the same as in the active. Study the following possible word orders for passive voice. TENSE Present Simple STRUCTURE am/is/are + PP1 EXAMPLE The annual report is examined not only by the shareholders. Present Continuous am/is/are being + PP Now the annual report is being examined by the shareholders . Simple Past was/were + PP The annual report wasn’t examined carefully then. Past Continuous was/were being + PP The report was being examined when we came. Present Perfect have/has been + PP Some new equipment has been ordered by the company lately. Past Perfect had been + PP I knew why the annual report had been examined. Future Simple will be + PP You will be told when the time comes. Future Perfect will have been = PP Everything will have been done by Monday. MODALS modal + be + verb in the past participle Active: The manager should sign these contracts today. 1 PP = Past Participle. 161 Passive: These contracts should be signed by the manager today. MODALS + PERFECT modal + have + been + verb in the past participle Active: Somebody should have informed the chairman about the results. Passive: The chairman should have been informed about the results. Exercise 1 Choose the correct form: active or passive. 6. Society often (is measured/measures) success in terms of money. 7. Countries also (try/are tried) to measure the success of their national economies. 8. Each time a new product (sold/is sold), GDP increases. 9. Outside consultants (can call/can be called) in to study work systematically. 10. The study of office systems and paperwork (calls/is called) O. & M. (Organisation and Methods). 11. Some economists (may study/may be studied) changes in the unemployment rate. 12. We think productivity (could increase/could be increased) as a result of our proposed activities. 13. Microeconomists (use/are used) various methods to measure the performance of the economy. 14. GDP (is included/includes) only goods sold for the first time. 15. If the survey (conducts/is conducted) in conjunction with the scheme, it’ll suit us. 16. The factory (produces/is produced) millions of cars every year and most of them (export/are exported). 17. Pensioners (have given/have been given) a new pay rise by the government. The news (announced/was announced) earlier today. 162 2. When do we use the passive? a. We use the passive when we do not know or it is not so important who or what does / did the action. Euros can be changed into roubles at the bank. The dividends are paid twice a year. b. If we want to say who did or what caused the action, we use by or with. by + agent / method GDP can be determined by different methods. The book “The General Theory of Employment, Interest and Money” was written by Keynes and published in 1936. with + instrument / material The manager’s desk was covered with papers. These photos were taken with a very cheap camera. Exercise 2 Complete the sentences with by or with. 1. New businesses were formed ______ entrepreneurs, seeing the opportunity for profit. 2. The information was supplied ______ leading indicators, embracing the number of workers employed, construction activity, and the formation of new businesses. 3. The delivery bay was covered ______ final goods. 4. All the decisions were made ______ government planners and base on their expectations of future economic performance. 5. The rate of return on investment for the stock was determined ______ our agent. 6. We tried to evaluate the performance of the investment company ______ the statement of stockholder’s equity and income statement. 163 7. Analyzing a national economy involves factors, which cannot be measured ______ data. 8. The chart, which reported the income the company received from sales, was commented ______ a chief accountant. Exercise 3 Complete the sentences putting the verbs in brackets in the passive form. 1. I _______ in this sample survey enormously. (to interest) 2. Not every good or service produced or sold during the year can _______. (to count) 3. When goods _______ (1), no wealth _______ (2). (1. to resell; 2. to create) 4. GDP is a standard by which the economy as a whole can _______. (to judge) 5. The payments left $1 million which _______ (1) to reserves in order _______ back into business. (1. to transfer; 2. to put) 6. Explain why an investor should _______ in the balance sheet of the company he wants to invest in. (to interest) 7. Last year $29 million _______ back from investments and GKN’s share of profits in related companies. (to add) 8. At 10 a.m. the Managing Director found that mail _______ correctly. (not to sort) 9. I regret to say that an important letter cannot _______ in the file. (to find) 10. Recently everyone _______ on group rates as a spur to productivity. (to put) 11. We couldn’t use the computer yesterday morning. It _______ (to repair) at that time. 12. By the time I arrived at the office there were no fill-in forms left. They _______. (all/to use) 13. We didn’t discuss the results of O. & M. and work study because they _______ (not/to complete) yet. 14. I couldn’t evaluate the performance of the new manager last Monday. He _______ (to interview) by the Managing Director from 10 a.m. till 2 p.m.; and at 3 I had to leave. 164 3. Should verbs be followed by only one object? a. Verbs give, send, lend, offer, show, pay, teach, promise, refuse, tell, and some others, can have two objects. Someone sent us(A) the annual (B) report of GKN. In cases like these we can make two different passive sentences. (A) We were sent the annual report of GKN. (B) The annual report of GKN was sent to us. Note that it is more usual for passive sentences to begin with the person. b. Verbs explain, suggest, dictate, announce, etc. which must be followed by a to-object cannot be used in structure A. The rule was explained to us. (Not: We were explained the rule.) Exercise 4 Rewrite these sentences in the passive. Translate them into Russian. to announce – объявлять to attribute – приписывать to communicate – сообщать to declare – объявлять to deliver – поставлять/сдавать to describe – описывать to explain – объяснять to introduce – представлять (знакомить) to propose – предлагать to prove – доказывать to read – читать to repeat – повторять to ship – отгружать to submit – представлять (документы) to suggest – предлагать to write – писать Model: e.g. This plan was suggested to us by him. 1. He suggested this plan to us. 2. Here is the letter of guarantee which they submitted to us. 3. They will deliver the goods to our agents at the end of the week. 165 4. – What did the Chief Accountant explain to you at the last meeting? – He explained the use of the company’s return on sales to us. 5. They will announce to us the information on the company’s stock, namely the number of shares outstanding and issued, at the annual meeting. 6. The management attribute part of the total profit expected from long-term contracts to reserves. 7. When we came, the secretary had already read that extract from the Managing Director’s report to Mr. Martin. 8. We have already repeated detailed instructions to the executives and told them to fulfil everything at once. 9. They submitted the list of extraordinary items to the management. 10. Mr. Ortega said that they would have shipped the goods to us before the director of the rival company left. 11. The contractors were proving the cause of the damage to us when the unexpected news came. 12. They will have introduced Mr. Thunder to us before they agree upon the sale of Steelstock. 13. You must declare this camera to the Customs. 14. They could have suggested this idea to you. Thus you could have avoided a lot of trouble. 15. You needn’t explain this to anyone. 4. Is only one passive form possible? a. When we talk about what other people say, believe, expect, ... etc. we can use two possible passive forms. Compare: Active: People say that Mr. Ross is a millionaire. Passive I: It + passive + that + clause It is said that Mr. Ross is a millionaire. Passive II: Subject + passive + to infinitive Mr. Ross is said to be a millionaire. 166 These passive forms are often used in a formal style and with verbs: acknowledge, believe, expect, report, think, allege, claim, know, say, understand It is known that annual reports are divided into two sections. Annual reports are known to be divided into two sections. It is expected that a new law will be introduced next year. A new law is expected to be introduced next year. b. When the belief, etc. refers to an earlier action, we use to have + PP. Compare: It is believed that the decline in production started last month. The decline in production is believed to have started last month. Exercise 5 A. Translate the following sentences into Russian. Mind the prepositions in phrasal verbs. 1. The statement of stockholders’ investment is suspicious, it cannot be relied upon. 2. Minority shareholders are well taken care of by GKN. 3. Why was a chart of financial highlights laughed at? 4. The Managing Director is always listened to with great interest. 5. The Sales Manager has never been spoken to like that. 6. The income statement is very well spoken of. 7. The Chief Accountant who was immediately sent for said that this amount must have been added twice in the balance sheet. 8. The Security Officer’s warning was not taken notice of. 167 9. I should like to read the statement of account referred to by Mr. D. 10. This subject will be dealt with at the next meeting. 11. The General Manager promised that the matter would be looked into. 12. The time of shipment has been agreed upon. 13. As an agreement had not been arrived at, the dispute was decided by arbitration. 14. The car components were disposed of by auction. 15. The clause proposed by the Board of Directors was objected to by the shareholders. B. Translate the following sentences into English. Make use of the Passive: 1. На членов правления смотрели с большим интересом, когда они появились перед вкладчиками. 2. Послали ли уже за выпиской со счета? 3. На активы и пассивы компании часто ссылаются. 4. Об оценке на основе анализа доходов и расходов очень много говорят. 5. На оценку на основе анализа товарно-материальных потоков можно положиться. 6. Мистер Грант уверен, что его ежегодное послание вкладчикам компании будут слушать с большим вниманием. 7. Когда он сказал, что акции этой компании – хорошее капиталовложение, над ним смеялись. 8. Мы надеемся, что снижению доходов с продаж скоро будет положен конец. 9. Поскольку к соглашению не удалось прийти, вкладчики ушли. 10. Мы не сможем изменить условия, о которых договорились. 168 5. What is the meaning of the passive form to have something done? When we describe an action, which we (I, you, he, she, they) arrange but don’t do ourselves, we use the passive form to have smth. done: subject + have / has / had + object + past participle I had my suit cleaned at the dry cleaners. We must have comparisons of the current year and the prior year’s financial information included in the annual report. I’m having my letter of application typed at the moment. Note that we can also have smth. done when – we do not arrange for someone else to do something for us; I had my car stolen last month. – something unpleasant or unexpected happens to someone. Arnold had one of his teeth knocked out in a fight. Get can be used in the same way as have in an informal style: I must get my jacket cleaned. Exercise 6 Rewrite these sentences using have + object + past participle, changing some words if necessary. e.g. Someone delivers the newspapers. (We) – We have the newspapers delivered. 1. The computer is no good: we are changing it. (We) 2. I think it’s time to serve the car. (It’s time to) 3. We ask someone to check the accounts every month. (We) 4. Someone sends the money to my bank account in London. (I) 5. I don’t like the office curtains. It’s time to change them. (I think I will) 6. He said it’s time to do a sample study. (I also think it’s time) 169 7. We want to find out the way to improve efficiency and output: we are formulating piece rates and incentive bonus schemes. (We) 8. Our boss has never considered that a check on efficiency might run from the top to the bottom of the firm. (I think we must) 9. I sent the data to the specialists: they are being processed there now. (I) 10. Someone does a research on the management side. (We) Exercise 7 Choose the incorrect form or usage of the passive. 1. I wanted to interview by the head of the firm, but the personnel (A) (B) manager was likely to sound out all the applicants first. (C) (D) 2. Can it be explained why final goods and services are (A) (B) emphasising in measuring GDP? (C) (D) 3. What must to be included if GDP is figured by counting income? (A) (B) (C) (D) 4. Mr. Grant now owns such a large proportion of the shares that he will have to ask to join the Board. (A) (B) (C) (D) 5. Peter is much spoken about as he is the only person who thinks (A) (B) that John must be maid director of the company. (C) (D) 6. If the order will be placed with them, it will be one of the largest (A) (B) (C) orders the firm has ever received. (D) 7. To determine GDP information collected for every good or (A) (B) (C) service produced in the nation during a year. (D) 170 8. Six million dollars was transmit to reserves for putting back into (A) (B) (C) (D) the business. 9. This work study survey was made with a group of consultants (A) (B) who are known as specialists in work study techniques. (C) (D) 10. Those graphs were drawned with such pale lines that the (A) (B) fluctuations could hardly be seen. (C) (D) PRACTICE WITH RELATIVE CLAUSES Ask yourself the following questions about relative clauses. 1. How do we form relative clauses? a. A relative clause is used to form one sentence from two separate sentences. The clause is doing exactly the same work as the adjective. The relative pronoun replaces one of two identical noun phrases and relates the clauses to each other. The relative pronouns and their uses are listed here. PRONOUN USE IN FORMAL ENGLISH that things/people which things who people whom people whose usually people Note: In speaking, that can be used for people, but not in formal written English. Methods that are used to measure the performance of the economy are numerous. 171 Macroeconomists who measure the performance of the economy use various methods. It is a standard by which the economy as a whole can be judged. This is the executive whom the chief told to accomplish the task. I don’t like guests whose visits are time-consuming. b. The relative pronoun completely replaces a duplicate noun phrase. There can be no regular pronoun along with the relative pronoun. This is the book that I bought (it) at the bookstore. c. Remember that a sentence with a relative clause can always be reduced to two separate sentences, so each clause must contain a verb. duplicate noun phrase We bought the mobile. The mobile had been advertised at a reduced price. We bought the mobile that had been advertised at a reduced price. John is the man. We are going to recommend John for the post. John is the man whom we are going to recommend for the post. Exercise 1 Join the following pairs of sentences together: make the second sentence in each pair a relative clause of the first sentence. Choose the correct pronoun (who, whose or which / that). 1. Economic growth is not a sufficient condition on its own to ensure an increase in economic welfare. Economic growth is a necessary condition for economic development. 2. We threw out the computer. It never worked properly. 3. Many people travelled west to seek their fortune. The California Gold Rush didn’t bring wealth to them. 4. Development can be determined by various criteria. The criteria relate to poverty, inequality and unemployment. 5. Analysing a national economy involves many factors. Some of these factors cannot be measured by data. 172 6. Microeconomics is the part of economics. It analyses specific data affecting an economy. 7. Statistics measure GDP. Gross domestic product is the value of all goods and services produced for sale during a year. 8. Checking accounts are very common now. The checking accounts require a minimum balance. 9. The accountant is not here today. You spoke to the accountant yesterday. 10. John has received a scholarship. John’s grades are the highest in the school. 11. Frank is the man. We are going to nominate Frank for the office of treasurer. 12. The director of the program is planning to retire next year. The director graduated from Harvard University. 2. What is the reason for the use or omission of commas in relative clauses? There are two kinds of relative clauses in the written language: a. Relative clauses without commas provide essential information about the subject or object: – What kind of government would be popular? – The government which promises to cut taxes. b. Relative clauses with commas provide additional information, which can be omitted. The government, which will be popular, promises to cut taxes. The inclusion or omission of commas may seriously affect the meaning of the sentence. Exercise 2 Add commas (,) where necessary. 1. The question ___ that is bound to come up during the discussion ___ will help us to see the problem. 2. Mr. Hardiman ___ who is an elderly man ___ is now redundant. 173 3. Bob Hardiman ___ who had left the company to look after his father ___ rejoined Harper & Grant Ltd. after his father’s death. 4. The contribution ___ which Mr. Hardiman had paid into the pension fund ___ gave him the right to qualify for a pension. 5. Mr. Nelson ___ who is due to retire ___ is entitled to a full pension. 6. The people ___ who live next door ___ helped my father to find retraining courses. 7. Interest on bank borrowings and other loans ___ that we paid ___ left $1 million, and we can transfer it to reserves. 8. A friend of mine ___ whose father is the manager of the company ___ helped me to get a job. 9. The population of London ___ which was once the largest city of the world ___ is now falling. 10. The first category of statistics ___ that make up the composite index of leading economic indicators ___ is employment. 3. Which relative pronouns do we use in place of noun or pronoun subjects, or a whole sentence? a. Who and that (we generally prefer who) can be used in place of noun subjects or subject pronouns when we relate to people. When they refer to the subject they cannot normally be omitted. The officials listened to the lecturer. He evaluated the performance of the firm. The officials listened to the lecturer who evaluated the performance of the firm. Who must be used in such clauses: that is not possible. The lecturer is expected to evaluate the performance of the firm. He is reported to be very experienced. The lecturer, who is reported to be very experienced, is expected to evaluate the performance of the firm. b. Relative pronouns which can be used with reference to things and animals are which and that used in place of the subject 174 pronouns it or they. When which / that refer to the subject, they cannot be omitted. These are the data which / that show personal consumption expenditures. Which or that are possible in the defining relative clause. The rates of growth decreased. They were discussed at the conference. The rates of growth which / that decreased were discussed at the conference. Which must be used in such clauses: that is not possible: The final goods are now ready for delivery. They were ordered a week ago. The final goods, which are now ready for delivery, were ordered a week ago. c. We can use which to refer back to a whole clause. Compare: They decided to invest some money in stocks. This was very wise of them. They decided to invest some money in stocks, which was very wise of them. Exercise 3 a. Complete the sentences using who, that or which, but only where necessary – leave a blank if possible. In one sentence two answers are possible. 1. We examined the articles of the pension fund … stated the conditions of employment with the company. 2. The pension fund accounts ... we examined were impeccable. 3. He’s lost the chances ... retraining gave him. 4. Peter, ... has only been with the company for a few years, can make full use of the workers. 5. Where are the data ... measure the amount of work you have done? 175 6. This is the application ... came in today’s post. 7. If the shares ... Mr. Harper owns are bought by a rival firm, the present set-up could change completely. 8. The chairman, ... is an elderly man, feels very tired. 9. A customer is someone ... buys something from a shop. 10. Macroeconomics is the branch of economics ... analyses interrelationship among sectors of economy. b. Choose the only correct variant. 1. … to settle on any subject with … in common. (A) Either of them was quite unable … which they had at least something (B) Neither of them was quite unable … which they had at last anything (C) Either of them was rather unable … what they had anything (D) Both of them were not able … that they had something 2. We do not know … . (A) it is good till we do not have it lost (B) which is good until we will have lost it (C) that is good till we will not have it lost (D) what is good until we have lost it 3. She was looking forward to … quickly. (A) telling them all she had seen and done which made her days pass (B) saying them all she had seen and done what made her days pass (C) tell all she had seen and done which made her days to pass (D) saying all she saw and did that’s why her days seemed 4. I couldn’t remember the number of my own car … . (A) what made the police suspect me (B) that had made the police be suspicious (C) and the police was made suspicious (D) which made the police suspicious 5. The passenger was very rude to the customs officer, … . (A) which of course made things worse (B) what no doubt made things worse (C) and that made things even worser (D) what certainly worsened things 176 6. She expects … the house … is impossible. (A) me cleaning … in a half of an hour which (B) me to clean … in half an hour which (C) that I will clean … in an hour and a half what (D) my cleaning … in an hour and a half that 4. What is the difference in use between who and whom? a. Who is used when the noun phrase being replaced is in the subject position of the sentence. Whom is used when it is from the object position. Note: In speech, whom is rarely used, but it should be used when appropriate in formal written English. R e m e m b e r the following rule: ...who + verb ... ... whom + noun... The men are engaged in accomplishing the task. The men are at the reception. The men who are engaged in accomplishing the task are at the reception. The men are engaged in accomplishing the task. I don’t like the men. The men whom I don’t like are engaged in accomplishing the task. b. We also use the form whom after a preposition. In this case, the preposition should also be moved to the position before whom in formal written English. The men are engaged in accomplishing the task. The customer is talking to the men. The men to whom the customer is talking are engaged in accomplishing the task. However, if the preposition is part of a combination, it may remain with the verb. 177 Exercise 4 Choose one of the two variants. 1. A check is a written order to a bank to pay a certain amount of money to the person or business to who/whom the check is made. 2. This is the executive to who/whom the expert explained how to accomplish the task. 3. It would also include individuals in junior managerial or professional jobs, many of who/whom could expect to earn considerably more as their career progressed. 4. If you know that your grandmother, who/whom loves rye bread, is coming to visit you, you might want to get some for her. 5. The customers who/whom buy this “loss leader” can decide to buy a few other things they need. 5. With which words do we use relative clauses of time, place and reason? a. Relative clauses of time, place and reason are possible in which when, where and why are used in place of relative pronouns. They can also replace words like the time, the place and the reason. Though we can say the time when, the place where and the reason why(that), we cannot say “the way how”. 1989 was the year when net exports of goods increased. 1989, the year when net exports of goods increased, is referred to in the article. This is the place where new workers are hired to increase production. “Bell & Co”, where new workers are hired to increase production, advertises job openings. That is the reason why (for which) it is so time-consuming. My success in business, the reason why (for which) he dislikes me, has been due to hard work. (The reason cannot be omitted before why.) 178 Exercise 5 a. Complete the sentences using where, when or why / that. 1. Did Peter tell Jan the reason _______ he wanted to save old Mr. Hardy from redundancy? 2. Do you remember the time _______ there were no computers? 3. The introduction of computers in typesetting was a time _______ many workers lost their jobs. 4. The room _______ we checked Mr. Buckhurst pension fund accounts was very small. 5. The pension fund meeting _______ you want to see Mr. Grant is due to be held shortly. 6. Is there a reason ____ the firm will be in trouble in case of a takeover? 7. What is the name of the company _______ Mr. Grant ordered a productivity study? 8. I don’t understand the reason ______ he referred to a previous letter. 9. Did she mention the reason _______ she agreed to piece rates? 10. Is there a time _______ we can refer to a previous letter? b. Identify the one underlined word, phrase or punctuation mark that must be changed in order for the sentence to be correct. 1. The expert, who was engaged in work study , was talking to (A) (B) the Sales Manager who’s report contained a lot of doubtful (C) (D) information. 2. If the contractor’s goals are improvements and ways of stepping up productivity, he should be interested in a firm what has (A) (B) (C) consistently made impressive work study surveys. (D) 179 3. Analysing a national economy involves factors, some of that (A) (B) cannot be measured by data. (C) (D) 4. GDP is known to be the value of goods and services which (A) (B) (C) (D) produced for sale during one year. 5. Not everything produced is counted. The types of products (A) counted are limited with some factors. (B) (C) (D) 6. Being deducted from the income, salaries, advertising and (A) (B) maintenance, that are operating costs, total the profit or loss. (C) (D) 7. The second part of the annual report is filled with charts and (A) (B) graphs who, however, gives a clear picture of the company’s (C) (D) performance. 8. What I like to know is if there is any reason that the annual (A) (B) (C) report should be studied so careful. (D) 9. The annual report is a message to the stockholders from corporate management which tells the stockholders the (A) company’s financial status at the end of the fiscal year and what planned by the management. (B) (C) (D) 10. The balance sheet is a chart that includes the assets and (A) liabilities of the company and the company should (B) have the balance sheet to do carefully. (C) (D) 180 11. The annual reports of the companies, which are bankrupt, (A) should have been studied carefully and the investors could have (B) (C) avoided a lot of problems. (D) 12. The second part of the annual report has the balance sheet, the (A) income statement and the equity included, what can be used to (B) (C) (D) determine whether a corporation is profitable. Exercise 8 Render the following into English: – Что меня интересует, это есть ли причина тому, чтобы изучать годовой отчет столь внимательно? – Хороший вопрос. Я бы хотел обратить ваше внимание на то, что способность прочитать годовой отчет включает многие факторы, часть которых нельзя измерить цифрами. – Что Вы имеете в виду? – Годовой отчет – это послание руководства корпорации держателям ее акций, которое сообщает им о финансовом положении компании в конце финансового года и о том, что планируется руководством компании. – Можно вставить слово? – Пожалуйста. – С такой информацией можно принимать продуманные решения. Следовало бы изучать годовые отчеты компанийброкеров внимательно, и вкладчики избежали бы многих проблем. Я хотел бы знать о некоторых деталях в структуре годового отчета. – Я к Вашим услугам. Известно, что годовой отчет делится на два раздела. Первый, который содержит письмо вкладчикам от руководителя компании, сопровождается таблицей основных 181 финансовых данных компании и обзором организационной структуры компании. – Простите за то, что вмешиваюсь, но включаются ли какиенибудь статистические данные о деятельности компании в этот раздел годового отчета? – Вне всякого сомнения. Вторая часть годового отчета привлекает наше внимание потому, что она полна графиков и таблиц, что тем не менее дает ясную картину о деятельности компании. Эта часть имеет в своем составе балансовый отчет, отчет о прибылях и убытках и отчет об акционерном капитале (количестве находящихся в обращении и еще не выпущенных на рынок ценных бумагах), что можно использовать для определения прибыльности компании. – Безусловно, балансовый отчет у компании должен быть сделан тщательно. – Да, конечно. Балансовый отчет – это таблица, которая включает активы и пассивы компании. В нем представлена картина финансов компании за прошлый год. – Я могу исправить одну маленькую деталь? – Продолжайте. – Именно отчет о прибылях и убытках показывает доходы и расходы компании за год. С помощью этой таблицы отчитываются о доходе, полученном компанией от продаж, процентов и других источников. – А эксплуатационные расходы вычитаются из дохода? – После вычета из дохода заработной платы, расходов на рекламу, эксплуатацию оборудования, которые являются эксплуатационными затратами, получают в итоге прибыль или убыток. 182 Glossary accomplish v add v approach n approach v earnings-and-cost approach flow-of-product approach asset n pl assets avoid v contract v contraction n equity n to success in doing; finish successfully; achieve 1. to put together with something else so as to increase the number, size, importance, etc. 2. to join (numbers, amounts, etc.) so as to find the total 1. the act of approaching 2. a way of getting in 3. a method of doing something or dealing with a problem 1. to come near or nearer (to) I space, time, quality, or quantity 2. to begin or consider to deal with a method of calculating GDP that counts the money received for production. a method of calculating GDP that counts the value of goods and services received the property of a person, company, etc. that has value anything of value owned by a business that can be used to produce goods, pay liabilities, etc. 1. to keep away from or keep out of the way of, esp. on purpose 2. to prevent something from happening , or stop oneself from doing something to (cause to) become smaller, narrower, or shorter the process of contracting 1. ordinary shares on which no fixed amount of interest is paid; 2. ordinary share capital (risk capital) of a company 183 entrepreneur v a person who starts a company or arranges for a piece of work to be done, and take business risks in the hope of making a profit exaggerate v to say or believe more than the truth about something; make (something) seem larger, better, or worse, etc. than it really is 1. concerned with making or carrying out decisions, esp. in business 2. a person in an executive position executive n, adj gross adj falling in value; progressive decline in real value of an asset because of use or obsolescence 1. last; coming at the end 2. (of a decision, offer, etc.) that cannot be changed total gross domestic product (GDP) the total value of goods or services produced in a country gross private domestic investment the total value of investments made in a country highlights n (pl) an important, noticeable, or special part of something bigger, e.g. of a performance, sporting event or activity of a company household n all the people in a family or group who live together in a house. indicator n a fact, quality, or situation that indicates something depreciation n final adj leading economic indicators indicators that rise or fall before a major change in economic activity lagging economic indicators indicators that rise or fall after a major change in economic activity 184 coincident economic indicators that change at about the same time that shifts occur in economic activity indicators liability n pl liabilities 1. the condition of being liable 2. something for which one is responsible for 3. the amount of debt that must be paid measure n 1. an action taken to bring about a certain result 2. an amount or quality 3. an amount or unit in a measuring system measure v to find the size, length, amount, degree, etc. of (something) in standard units net adj (of an amount) when nothing further is to be subtracted net n after-tax profit performance n 1. the action or manner of carrying out an activity, piece of work, etc. 2. the ability of a person or machine to do something well 3. productivity the action of making or manufacturing from components or raw materials, or the process of being so manufactured The resources needed to produce goods and services. Factors of production include land, labor, and capital. money gained by trade or business advantage gained from some action 1. a written statement that one has received money or goods 2. the fact of receiving production n factors of production profit n receipt n 185 receipts salary n pl statement n tax n total n total adj total value total v transfer n transfer v transfer payments money received by a business, bank, etc money, usu. Paid directly into one’s bank account once a month, that one receives as payment from the company or organization one works for 1. something that is stated; a written or spoken declaration, esp. of a formal kind 2. a list showing amounts of money paid, received, owing, etc. and their total 3. expression in words an amount of money which must be paid to the government, according to income, property goods bought, etc. a number or quantity obtained as a result of addition; complete amount 1. complete; absolute 2. being a total; considered as a complete amount a complete amount 1. to be when added up 2. to find the total of; add up 1. an act or process of transferring 2. someone or something that has transferred 3. legal movement of something (e.g. property, shares etc.) from one owner to another to move from one place, job, position, etc. to another Money that one person or group gives to another even though the receiver has not provided a specific good or service. Gifts, inheritances, and aid to the poor are examples of transfer payments. 186 Topics for presentations: 1. A nation’s economy. GDP 2. Economic indicators. 3. The ways to measure changes in the nation’s economy 4. The annual report of a CEO 5. The balance sheet 6. The income statement 7. Work study techniques 8. O. & M. (Organisation and Method) 9. Incentive payments schemes 10. Critical path analysis 11. Ways to improve efficiency and output 12. National income accounting 13. Transfer payments Topics for essays The state should not intervene in the economy through the provision of subsidies. Transfer payments intervene in the economy. 187 4 OVERVIEW OF MONEY, BANKING & MONETARY POLICY Contents 4.1 4.2 4.3 4.4 Section overview Developing vocabulary Money: Role, Forms, Functions Understanding the reading Reviewing the concept Lead-in Language Input Background Information Comprehension 4.5 Speaking & Writing Language focus Language in context Presenting information Communication skills 4.6 Dialogue 4.7 Reading for Cross-cultural Associations 4.8 Case Study & Role-play 4.9 Grammar Back up 188 Saying numbers: Money Fill-in exercises Writing Reports Making Power Point presentations The Forms of Money Money & Banking Financing a Car Loan Practice with Reported Speech 4.1 LEAD-IN SECTION OVERVIEW Money is necessary in most economies. It serves as a means of exchange, a store of value, and a standard of value. Currency, used in modern societies, fulfills these functions. In addition to currency, people may use checks and credit cards to purchase goods and services. Savings accounts, stocks, and bonds are stores of value that can easily be exchanged for money. All of these forms of money and near money help the economy run smoothly. Discuss the following questions, make use of the prompts in brackets: 1. Why is money so important in our society? What gives it value? (to compare the value; barter; to be exchanged for smth.; to solve the problem) 2. Does the fluctuations in the economy’s money supply influence how much spending occurs? (to change; the increase; the decrease; to affect; to be complex) VOCABULARY прибавлять, присоединять Это увеличивает расход. мат. складывать add v (up) складывать, подсчитывать, подытоживать; находить сумму We just added all the Мы просто сложили все и numbers up and divided one поделили одно на другое. by the other. add v (up to) сводиться (к чему-л.); означать, представлять собой Their fortune adds up to two Их состояние составляет два million. миллиона. advance n аванс, авансирование; ссуда, заем add v (to) This adds to the expense. 189 денежная ссуда беспроцентная ссуда до, заблаговременно предварительное уведомление A time deposit is a bank Срочный вклад – это банковdeposit that can be withdrawn ский депозит, по которому on advance notice. средства можно получить после предварительного уведомления. advance payment авансовый платеж; досрочная выплата borrow v (of, from) занимать деньги; брать взаймы; получать заем You could borrow some Ты можешь занять денег у money from your uncle дяди, и ему не надо платить without paying interest. проценты. to borrow at interest занимать деньги под процент bond n облигация; закладная; долговое обязательство Insurance policies, stocks, Страховые полисы, ценные and bonds are stores of value бумаги и облигации являются and can be exchanged for носителями стоимости и могут money. быть обменены на деньги. деньги (обычно наличные деньги; currency n монеты, банкноты); деньги в обращении; валюта; денежная единица; денежное обращение Money in the form of paper Деньги в форме бумажных bills and metal coins is банкнот и металлических монет called currency. называются деньгами в обращении. the supply of currency денежное предложение The supply of currency is Денежное предложение на only about $700 per capita. душу населения составляет всего лишь $700. money advance advance free of interest in advance advance notice 190 But: personal supply of денежное обеспечение money физических лиц сheck n чек A check is a written order to Чек – это письменный приказ a bank to pay a certain банку выплатить amount of money to the определенную сумму денег person or business to whom тому физическому или the check is made. юридическому лицу, на чье имя он выписан. checking account чековый счет; текущий счет (в банке) Most money is in the form Бо́льшая часть денег of checking accounts. содержится на чековых счетах в банке (США). deposit n вклад; депозит; взнос demand deposit депозит до востребования; бессрочный вклад; текущий счет Checking accounts are also Чековые счета так же known as demand deposits, известны, как вклады до because their owners have востребования, так как их the right to demand them владельцы имеют право from the bank whenever требовать их, когда пожелают. they wish. time deposit срочный депозит (вклад); вклад на срок Срочный вклад не может быть A time deposit is an account изъят из банка до истечения that cannot be withdrawn определенного срока или счет, before a set date or for для изъятия которого требуется which notice of withdrawal предварительное уведомление. is required. deposit v (with somebody/ внести; депонировать; давать на smth., in a bank) хранение Fred had taken the wise step Фред сделал правильный шаг, of depositing the eighty отдав восемьдесят фунтов на 191 pounds with his mother. хранение своей матери. to deposit money in a bank внести деньги на банковский account счет depositor n депонент; вкладчик; владелец банковского счета fiat money бумажные (декретные) деньги (не обеспеченные золотом) interest n процент interest rate (rate of ставка процента interest) If all other factors are equal, При равенстве всех прочих your choice will depend on факторов ваш выбор будет which source will charge the зависеть от того, где будет lowest rate of interest. взиматься самая низкая процентная ставка. compound interest сложный процент It is important to understand Важно понимать два основных the two basic methods of метода начисления процентов figuring interest – simple – простой и сложный. and compound. insurance policy страховой полис legal tender законное платежное средство The only legal tender in Единственное законное the US is currency. платежное средство в США – это деньги в обращении. loan n заем; ссуда loan v давать взаймы, одалживать, ссужать (кому-либо – to) Money which has been Деньги, взятые loaned to city councils by муниципальным советом у the central government can центрального правительства, be repaid at a low rate of возвращаются с небольшими interest. процентами. to finance a loan финансировать заем to repay a loan уплачивать, погашать заем 192 средство обращения (обмена) В качестве средства обращения деньги используются для того, чтобы обмениваться на товары и услуги. денежная масса - количество money supply денег в обращении, предложение денег (количество денег на определенную дату, которое имеется в наличии для сделок и инвестиций в экономике) near money, syn. quasi-money денежная масса - количество денег в обращении, предложение денег (количество денег на определенную дату, которое имеется в наличии для сделок и инвестиций в экономике) Economists call things used Экономисты называют то, что for some, but not all, of the выполняет некоторые, но не functions of money near все функции денег, денежными money. суррогатами. percentage процент; доля, выраженная в процентах; содержание (в процентах) means of exchange As a means of exchange money is used to trade for goods and services. annual percentage rate (APR) ставка процента в годовом исчислении stock n акция; доля акций, амер. акции; акционерный капитал (=. joint stock); основной капитал; фонды value n What is used as money often has little value of its own. стоимость, цена То, что используется в качестве денег, само по себе имеет незначительную стоимость. нарицательная цена, номинальная стоимость face value, Syn: nominal value 193 Even a coin containing valuable metal may be considered fiat currency if its face value is higher than its market value as metal. intrinsic value Money made legal tender by a government decree is known as fiat money or money without intrinsic value. monetary value Often the value you place on an item will differ from its monetary value. standard of value As a standard of value money is used to compare the worth of one product with that of another. store of value As a store of value people use money to save their wealth for the future. value v withdraw v Time deposits can’t be withdrawn using a check. withdrawal n Деньгами, не имеющими обеспечения, может считаться даже монета из ценного металла, если ее номинальная стоимость ниже, чем рыночная стоимость металла, из которого она состоит. действительная стоимость, реальная стоимость Деньги, ставшие законным платежным средством согласно декрету правительства, известны, как декретные деньги, или деньги, не имеющие реальной стоимости. денежная стоимость Часто ценность предмета лично для вас отличается от его стоимости в денежном выражении. стандарт или мера стоимости В качестве меры стоимости деньги используются, чтобы сравнивать ценность одного товара с ценностью другого. средство накопления богатства Люди используют деньги в качестве средство накопления богатства, чтобы сохранять свое богатство на будущее. оценивать, производить оценку, устанавливать цену (в денежном эквиваленте) отзывать; изымать; снимать со счета Деньги со срочного депозита нельзя снимать чеком. изъятие; изъятие денег со счета 194 DEVELOPING VOCABULARY 4.2.1 Consult a dictionary and practise the pronunciation of the following words: advance notice allow bushel consumer currency demand deposit depositor determine diverse fiat money financial intermediary forgery halfpenny insurance policy intrinsic value legal record legal tender monetary value monitory letter obvious percentage precious purchaser reverse smoothly standard twopence withdrawal 195 4.2.2 Match the English word combinations in the left-hand column with the Russian equivalents in the right-hand column: 1. to accept as payment for sоmething 2. to be withdrawn at a certain time in the future or on advance notice 3. to repay a loan 4. to be exchanged for goods and services 5. to compare the worth of something with something 6. money supply 7. the supply of currency 8. a store of value 9. checking account 10. a standard of value 11. time deposit 12. near money 13. to borrow money from somebody 14. insurance policy 15. demand deposit 16. to make a withdrawal using a check 17. a written order to a bank 18. savings account 19. to keep a percentage of bank’s demand deposits in reserve 20. to provide a legal record of financial transactions 21. to reverse the process of expansion 22. legal tender a. текущий (чековый) счёт, с которого снимаются деньги по чекам клиента b. хранить в резерве определенный процент банковских депозитов до востребования c. сберегательный счет d. счет «до востребования» (текущий) e. сравнивать стоимость чего-либо с чем-либо f. занимать деньги у кого-либо g. отменять процесс расширения h. законное платежное средство i. денежное предложение j. денежные суррогаты, квазиденьги k. обмениваться на товары и услуги l. страховой полис m. предоставлять официальную запись финансовых операций n. средство накопления богатства o. денежная масса p. погашать заем q. письменный приказ банку r. мера стоимости s. снимать деньги в определенный момент в будущем или по предварительному уведомлению t. осуществить снятие денег, используя чек u. принимать в качестве платежа за что-либо v. срочный депозит 196 4.3 READING MONEY: ROLE, FORMS, FUNCTIONS Most people use money every day. It is so common that many people rarely think about why money is important and what gives it value. In general, money is any item that is widely accepted as payment for products. It is something people see and use almost every day. Though money is commonplace, its forms and functions are complex. The familiar paper bills and metal coins are only two of the forms money can take. In the past, many things served as money – beads, shells, dog’s teeth, cattle, stones, tobacco, fishhooks, and even slaves. Precious metals, especially gold and silver, have been a favorite form of money. Some of the things used as money – fishhooks or cattle, for example, – also have had value as consumer goods. Most of the items used as money, however, have had value only because people agreed that they could be exchanged for goods and services. In other words, what is used as money often has little value of its own. Its value comes from the product for which it can be exchanged. In most modern economies money serves several functions. As a means of exchange money is used to trade for goods and services. Less complex societies often do not use money at all. They simply barter, or trade, one product for another. Two farmers may trade a bushel of wheat for a jar of milk, for example. The more complex a country’s economy, the harder it is to use a system of trading one good for another. Money is the answer to that problem. As a store of value people use money to save their wealth for the future. Storing goods is not so easy as storing money. Many goods, such as food, spoil quickly. Others, such as cars, take up a lot of space. But money can be kept in a bank or a safe or a pocketbook until it is needed. As a standard of value money is used to compare the worth of one product with that of another. Everyone knows about how much a dollar will buy. People can therefore compare the worth of one 197 $100 item with other items worth the same amount of money. The value of all goods and services the economy produces can be determined by adding up their prices. In this way, of course, economists determine GDP. State-issued money which is made legal tender by a government decree is known as fiat money or money without intrinsic value. In most countries, money comes in several forms. Money in the form of paper bills and metal coins is called currency. For instance, the supply of currency in the USA is only about $700 per capita. Sometimes, time deposits also are considered a form of money. Several other things are used like money. Economists call things used for some, but not all, of the functions of money near money. Credit cards, for example, allow a purchaser to borrow money from the seller of the purchased goods. Insurance policies, stocks, and bonds are stores of value and can be exchanged for money. They are other examples of near money. Money is very important in our society. As a store and a standard of value and as a means of exchange, money helps the economy run smoothly. We can judge the worth of such diverse things as pets, paintings, medical care, and car washes. Then we can compare their value using the amount they cost. The market system determines how much money everything is worth. People whose jobs are thought to be more important get higher salaries than those whose jobs are considered less important. Thus, people often are judged by how much money they earn. You have your own beliefs about the value of goods, services, jobs, and people. Often the value you place on an item will differ from its monetary value. You may feel that some things are priceless and others are not worth as much as they cost. Your own values dictate what you are willing to do for pay. 198 4.4 COMPREHENSION UNDERSTANDING THE READING 4.4.1 Give extensive answers to the questions. Use the following expressions to start your answers: It seems to me obvious/evident that … . It’s like this. You see …1 As far as I am able to judge … . As I see it … . It must be admitted that … . It has been proved that … . 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. What means do people use to make purchases? Are savings accounts, stocks, and bonds money? Why? Why can’t market economy get along without money? What does the value of money come from? What are the functions of money in modern economies? Is money used in all economies? In what forms does money come? In what way does near money differ from fiat money? How can the importance of money in the economy be defined? Why will the value you place on an item often differ from its monetary value? REVIEWING THE CONCEPT 4.4.2 Say whether these statements are true (T) or false (F), and if they are false say why. e.g. In my opinion it is true that … . / I’m afraid it is false that … because…. TF 1. Money is an item that is accepted as payment for goods and services. TF 2. Money exists exclusively in the form of currency. TF 3. In the past metal coins were the only form of money. 1 Значит, так …. 199 TF 4. The value of money equals the value of the product for which money can be exchanged. TF 5. The functions of money are: a) a means of exchange; b) a store of value; c) a means of barter; d) a standard of value. TF 6. Money doesn’t spoil quickly, that’s why we use it as a store of value in order to compare the worth of one product with that of another. TF 7. People use money to save their wealth for the future. This function of money is called a standard of value. TF 8. Money also exists in the form of checking accounts and time deposits. TF 9. Not only credit cards but also stocks, bonds, coins and insurance policies are called near money. TF 10. We have the possibility to compare the value of different items using the amount they cost. 4.4.3 Work in pairs and identify the function that money serves in each of the following situations: 1. Jane Dunn collects $50 for her part-time job in the supermarket. 2. On her way home, Jane puts $15 in her savings account. 3. Jane visits a store where she compares the prices of personal computers. 4. Think about the purchases you made last week. How would they have been more difficult in a barter system? Use three examples in your answer. 200 4.5 SPEAKING & WRITING Language focus 4.5.1 Saying or writing out numbers. BRITISH MONEY It’s common knowledge that the British currency is the pound sterling. In 1971 Britain adopted a decimal currency system in which one pound (£1) is worth one hundred pence (100p). Thus there are 100 pence in a pound. Pounds are indicated by the symbol £ before the amount. Pence are indicated by the letter p. Usually sums of money are named as follows: 1 p one penny (informal one p or a penny) 5 p five pence (informal five p) £5 five pounds If you want to combine the two, the p is usually dropped: £4.75. £4.75 four pounds seventy-five (pence) or four pounds and seventy five pence (more formal) Nowadays some people use the plural pence as a singular in informal speech; whereas pound is sometimes used informally as a plural. That’s five pounds and one pence, please. It cost Susan nine pound fifty. You should remember that singular forms are used in expressions like a ten-pound note. You should also take into account that pence is often used instead of penny (a sixty pence postcard). It’s also possible to use: A ten-pence change or a ten-penny change. Both notes and coins are used as British currency: the one pound piece (1£). There are “silver” (cupro-nickel) and copper coins. The “silver” coins are: the fifty pence piece (50p); the twenty pence piece (20p); the ten pence piece (10p); the five pence piece (5p). 201 The copper coins are worth: the two pence piece (2p), or twopence; the one pence piece (1p); a halfpenny1 (1/2p). Each coin has the date when it was minted. As a rule the date is stamped on one side of the coin. As for notes there are five denominations of them. The £5 note is the lowest note in value. The £100 note is the highest note. In between these denominations there are the £10, 20 and £50 notes. Every note has a serial number which shows when it was issued. Moreover, every note has a watermark to prevent forgeries. When people talk about money under the value of a pound, they usually use the abbreviated form p rather than the full form pence. But both p and pence can be omitted altogether. Here is an example of the three alternatives: One coffee, please. – That’ll be two seventy-five, sir. That’ll be two pounds seventy-five p, sir. That’ll be two pounds seventy-five pence, sir. The most likely is seventy-five p (no full stop after p in writing). Some coins have special names: Quid – is both the singular and the plural form 2 - £1. A quid is a pound in money. 3 Tenner - £10. A tenner is ten pounds or a ten-pound note. AMERICAN MONEY It’s public knowledge that there are 100 cents (¢) in a dollar ($).Usually sums of money are named as follows: 1¢ one cent (or a penny); 33¢ or $.33 thirty-three cents; $1.85 a dollar eighty-five or one eighty-five Sums of money are named very much as in British English. Some coins have special names: 1 The coin was demonetised and withdrawn from circulation in December 1984. соверен/фунт стерлингов 3 десятка 2 202 One-cent coins are called pennies; Five-cent coins are nickels; Ten-cent coins are dimes; A twenty-five cent coin is a quarter. Fifty-cent coins are half-dollars. As for notes there are six denominations of them. The $1 note is the lowest note in value. The $100 note is the highest note. In between these denominations there are the $2, 10, 20 and $50 notes. Every note has a serial number which shows when it was issued. Moreover, every note has a watermark to prevent forgeries. Exercise 1 Answer the questions: 1. What is the British (American) currency? What money items does it include? 2. How many pence are there in a pound? How many cents are there in a dollar? 3. What is the symbol of a pound (a dollar)? 4. How is pence (cent) indicated? 5. What types of coins are there in the British (American) currency? 6. How many denominations of notes are there in the British (American) currency? Exercise 2 Write down in words: $200 £350 £1.25 2 ½ p. 65p. a 50p ticket It cost me £8.50. That’s £3.01, please. a 90p postcard a 65p stamp 203 Exercise 3 a. Read the excerpt below about the peculiarities of money matters in India. Indians are rather fussy (and peculiar) about the condition of their banknotes. A shopkeeper often turns down a note because it is very slightly torn at the edge while accepting another one with a great big hole in the middle! There is indeed the (very much mistaken) belief that the Reserve Bank of India has ruled that torn-at-the-edge notes are worthless. You should therefore check your change carefully and refuse frayed and dirty notes. There is a chronic shortage of small cash and many shopkeepers give out sweets or stamps by way of change. Taxi and motor-rickshaw drivers are also notoriously without adequate change and you might often find yourself having to pay a little more to break a roadside deadlock. When cashing in your foreign exchange in a large bank, ask to have part of your Indian money given to you in small notes. Note that it is a criminal offence to change money on the black market. b. Discuss how the following items compare with the situation in Russia. availability of cash condition of bank-notes regulations c. Search the Internet to find further information about the acceptability of coins and banknotes. d. Search the Internet for additional information about the origin and present-day forms of money. Report your findings to the fellow-students. 204 Language in context 4.5.2 a. Fill in prepositions wherever necessary. b. Give the text the appropriate title. _____________________________________ Your personal supply … money changes often. Increases and decreases … your supply of money probably affect … how much you spend. Similarly, the amount of money … the total economy changes often. Changes in the economy's money supply are more complex than changes in a personal money supply. Still, these fluctuations … the money supply influence not only … how much spending occurs but also the general level of business activity. For example, the money supply of the United States is constantly changing. Sometimes it expands and sometimes it contracts. The government prints … new bills and mints new coins every year to replace those that are worn. It also changes the money supply to meet people's needs. The supply … checking account money, or demand deposits, also changes. Banking laws … the United States require a bank to put a certain percentage of its deposits … reserve. A bank's reserve is the money the bank must set aside and not loan … anyone. Assume that the bank's reserve must be 10 percent … total deposits. Suppose that bank customer John Winslow deposits $10,000 … his earnings … a checking account. What does the bank do … the $10,000? It puts the money to use … lending it to people and charging interest. Of John Winslow's $10,000, the bank keeps $1,000 … reserve. The other $9,000 it lends … anyone able to pay it back … enough interest. So the process continues, with a succession … borrowers and depositors. None … these transactions involved … currency. All were completed through checking accounts. This series of deposits caused the total supply … checking account money to expand. 205 c. Comment upon the following points: Personal supply of money versus national supply of money Changes in the US money supply Banking laws and bank reserves The succession of transactions after the initial deposit d. Look at the second part of the text about the limits to money supply growth. Arrange these sentences in their proper sequence. A. Also, expansion will stop if the bank stops making loans. Lending may cease if the bank cannot find any more people it believes will be able to repay a loan. Moreover, if people stop putting their money into checking accounts, the bank will not be able to make loans. B. To crown it all, if many people suddenly withdraw their money all at once, the bank must do more than stop making loans. It will have to start calling for payment of its loans so that it can increase its reserves. C. But this expansion of the money supply does not continue forever. A deposit in a checking account can increase the money supply by about 10 times the original amount. Several factors stop the process of expansion or even reverse it. D. To begin with, federal law requires the bank to keep a percentage of its demand deposits in reserve, usually 3 to 10 percent. Banks cannot loan out all of the money people deposit. After John Winslow's original deposit, each successive deposit was less. 1. 2. 3. 206 4. 4.5.3 a. Complete the sentences using the words in the box and fill in the grid. b. Discuss the role of central banks. a. b. c. d. e. f. control the amount of money the money supply function issue supervise g. h. i. j. k. l. prices and wages act impose the reserves available tight monetary policy The Bank of England, the Federal Reserve Board in the USA, the Bundesbank in Germany, and the Central Bank of Russia are central banks which …1… as banks for the government and for other banks. Central banks usually implement …2… – either the government’s (e.g. in Great Britain), or their own, if they are independent (in Germany and the US). Central banks also …3… the money supply. Central banks …4… as lender of last resort to commercial banks with liquidity problems. Central banks …5… coins and bank notes. Central banks …6… the banking system. To ensure the safety of the banking system, central banks …7… reserve requirements, obliging commercial banks to deposit a certain amount of money with the central bank at zero interest. 1 A great number of central banks now set money supply targets2 following the monetarist argument that the average level of …8… is determined by the amount of money in circulation. By increasing or decreasing …9…, the central bank indirectly influences interest rates, demand, output, growth, unemployment and prices. The central bank can reduce …10… to commercial banks by changing the reserve requirements. This action reduces …11… that banks can create and makes money …12… or scarce. 1 2 С 2008 только в России Устанавливают целевые ориентиры денежного предложения 207 Central banks issue banknotes and coins (the country’s or nation’s currency). They are legal tender1 in the country where they are produced. They must be accepted as payment by all the traders all over the country. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. D Presenting information Writing reports a. Familiarise yourself with the text. Report is a written or spoken description of a situation or event: for example, auditor’s report, an official document written by an auditor; directors’ report, a statement by a company’s directors in its annual accounts giving the directors’ opinion of the state of the company, etc. Report may be an official document produced by a group of people, examining a particular subject. People often use the name of the committee producing the report to talk about it: the Cadbury report on the financial aspects of corporate governance. Report may be a newspaper article or part of television or radio programme about a particular situation or event: The Daily Mirror’s report focused on the variation in evidence. There are three main types of reports: Recommendation reports are usually prepared with the aim of recommending some kind of action. Such reports may or may not include conclusions as well as recommendations. Information reports only present information. In such reports the author provides some background information, and probably presents his/her main findings or highlights, but due to the very nature of the report, there won’t be any conclusion or recommendation. 1 money, which is officially part of a country's currency at a particular time 208 Conclusion reports are designed with the aim to investigate the matter, reach a conclusion as to whether it was a profitable proposition or not. But the author won’t make any recommendations. Thus reports can serve a wide variety of purposes, and have a number of different formats. However, most reports have the same basic structure, regardless of the subject or aim. The main points of any report are: 1. Preliminary pages. The author of the report should provide some certain information in these pages: The title page. It should give the title of the report, who it is by, the date the report was written and the distribution. A summary. It’s a valuable idea to provide a brief summary if the report is long. It may consist of no more than 150 words and give the gist of the information the report itself contains. It may also include the main conclusions, recommendations or findings. It should be presented on a page headed “Summary”. A table of contents. It may be necessary if the report is long. It should list the main headings and the pages on which they appear. A table of contents should be on the page by itself. 2. An introduction. In the introduction you should give the background to the report itself, i.e. you should explain why it is written, what it is about, who it is intended for, who asked for it, and the investigative and other methods used. 3. The body of the report. As a rule the body of the report is the largest part. Here you should present all the relevant information. In an analytical report a logical argument should be developed, building up to a conclusion or recommendations. In a briefing report the sections should be set out in order of priority. You can also divide report into sections; each section will deal with a different department or sphere of activity. 4. The conclusion, recommendations, main findings. If your report is investigative or analytical, you may find several possible solutions to the problem. You should describe all the possibilities in the conclusion, with their advantages and disadvantages, though you may recommend only one solution. If you provide both a conclusion and recommendations in your report, then put them in 209 two separate sections. You should give your reason for recommending a certain course of action. If there are more than one recommendation they should be numbered. It will make them clearer and easier to understand. 5. Acknowledgements. You should include a special separate acknowledgements section in your report if you’d like to acknowledge the help of other people or you have referred to their written work. If you want to thank certain people for their help in preparing your report you can say: “I would like to acknowledge the help of the following people in the preparation of the report”. Then you should list their names. You can also mention what help they provided to you. If you refer to documents or publications, it is customary to give the following information: – books: the author, the title, the publisher, the year of publication. – magazine or journal articles: the author, the title of the article, the title and the date of the particular issue, the year of publication. – government documents: the governmental department or author, the title and the number of the document, the year of issue. 6. Appendices. In order to attract and keep your listeners’ (readers’) attention you should make the body of your report as short and interesting as possible. But sometimes you need to provide long documents or tables of figures to support your report. In this case you should mention the main points in the report itself, but the whole document or table may be reproduced as an appendix. b. Answer the following questions: 1. What types of report are mentioned in the text? Characterize each type. 2. What does the structure of a report depend upon? What are the main points of a report? 3. What type of information is provided on preliminary pages? 4. Which section provides the background information of the report? 5. What is the largest and most important part of a report? 210 6. Is it reasonable to place the conclusions and recommendations at the beginning of a report? Why? 7. Is it necessary to make acknowledgements? Why? 8. What information is usually provided if you refer to documents and publications? 9. Is it necessary to provide an appendix in a report? Communication skills 4.5.4 Write an information report about the functions and forms of money, the money supply and the ways to limit it. Arrange the paragraph with the topic sentence, several developers and a restatement. Make use of the above text. 4.6 DIALOGUE a. Replace the Russian word combinations by their English equivalents in the appropriate form. b. Be ready to summarize the dialogue. A.: Can you spare me a second? I know that there exist several forms of money. Will you help me to encompass all of them? B.: Well, the point is that in the United States most money is in the form of (текущий счет). I’ll try to explain to you how it works. A.: That’s just what I need. B.: A (текущий счет) is a bank account in which money has been (вкладывать). A (снятие денег со счета) can be made at any time using a check. A.: Sorry to butt in, but do you mean that a check1 is a written order to a bank (выплатить определенную сумму денег) to the person or business to whom the check is made? B.: It looks like that. Depositing $100 in a bank checking account increases the sum (вкладчик) can draw on by that amount. From then on, (вкладчик) need not have $100 in paper bills or coin in order to buy something worth $100. Simply writing a check will cover the cost. By the way, (текущий чековый счет) 1 Амер. = cheque (брит.) 211 are also known as demand deposits, because their owners have the right to demand them from the bank whenever they wish. A.: I’ve also heard that sometimes, (срочный депозит) are considered a form of money. A (срочный депозит) is a bank deposit that can be withdrawn at a certain time in the future, or on (предварительное уведомление). Time deposits cannot be withdrawn using a check. Is this information true? B.: Yes, it’s absolutely so. I can add that a (сберегательный счет) is an example of a time deposit. When (сберегательный счет) are used as a store of value, savers deposit their money for use in the future instead of in the present. The bank book is a record of a person's deposits and (процент) the bank paid for use of the money. A.: Well, I’m really amazed! I really am. But I would like to come back to checks. It’s common knowledge that almost all firms use checks to pay their (счета), and most people also are paid by check. Does that mean that checks are substitutes of money? B.: That’s, of course, a big problem. Checks are more (удобный и безопасный) to use than currency. They are flexible in that they can be written for any amount. They provide a legal record of financial transactions. However, although most people and institutions accept them, checks are not (законное платежное средство). (Законное платежное средство) is money that, by law, must be accepted in payment of (долг). A.: So, on balance, the only (законное платежное средство) in the United States is currency. And does it refer to credit cards? B.: Fair enough. Just as a matter of interest I’d like to stress that several other things are used like money. (кредитная карточка) are a common way to purchase goods and services. If the card is used to buy gasoline, the gas station will record the name and number and send it, along with the bill for the gasoline, to the credit card company. The credit card company will then pay the gas station and send the buyer a bill for the amount of the gasoline. 212 A.: Oh, I see. Credit cards are not money, though, since they can be traded only for certain products from certain companies. As for money, it can be exchanged for anything. B.: Definitely. c. List the types of bank account mentioned in the dialogue. Make a précis of each of them and discuss the difference with interlocutors. d. Read the following supporting materials and get ready to discuss the given information in your own dialogues. Make use of the helpful phrases. Supporting Materials People may have three basic types of bank account: Current account or cheque account or US checking account is the most popular one which is used for handling day-to-day finances. It is used for everyday transactions such as paying bills, transferring money and drawing cheques. Though the current account holder doesn’t usually receive any interest on the money he pays in this type of account has some advantages. Firstly, it enables people to hold their money in a safe place. Secondly, this type of account allows people to withdraw their money at any time. Thirdly, it provides people with a cheque book so that they don’t have to carry much cash. When a person intends to open a current account he should see the branch manager who wants to get the necessary background information about the applicant. As a rule, the banking officer wants to know the applicant’s occupation and place of work. Probably he will want to have a reference from the applicant’s employer. Then after the interview if the manager is satisfied with the applicant’s status he will approve the application, arrange for the applicant to be given a cheque book and arrange for a monthly statement to be sent to the account holder. The current account holder can have an overdraft on this type of account, i.e. he can withdraw more money than he has in the account. 213 Deposit account is another popular account which is really designed for saving money and may be used for short-term, small savings. The money paid into this type of account earns a small amount of interest. The customer receives no cheque book and therefore he cannot pay bills so easily as with the current account. Though it is not possible to draw cheques or have an overdraft on this type of account, it has some advantages over a current account. Firstly, it is easier to open a deposit account than a current account because there is no need to have an interview with the branch manager. A client only has to fill in a form and deposit the minimum amount of money required by the bank. Secondly, a deposit account earns for the account holder. It occurs because the bank invests the money that the depositor pays in and in return, the bank pays the client interest. But the client should remember that if he wants to take his money out of the deposit account he mustn’t forget to give a bank a week’s notice. If the client wants his money immediately, he loses some interest. Savings or long-term deposit is an account where you put money in regularly and which pays interest, often at a higher rate than a deposit account and may be used for larger, long-term savings. The customer may have a fixed-term account. In this case the account holder may not be able to withdraw the money for a certain period agreed with the bank, for instance, 3–5 years. The customer can’t get his money immediately. He has to inform the bank in advance when he wishes to withdraw the money. e. Consider the above-mentioned information (the dialogue and supporting materials) and decide what kind of bank account each of these people might have opened. Discuss this task in the dialogues of your own. 1. Imagine that a thirteen-year-old boy inherits $15000, which he won’t be able to touch until he is eighteen. 2. Another case concerns an elderly couple who keeps $400 in the drawer “for emergencies”. They are persuaded to pay it into a bank account for safety. 214 3. At the age of 18 a boy begins work. He needs an account so that his wages can be paid at the end of the month. 4. Luckily a couple with young children wins a large amount of money in the lottery. They want to open an account. 5. A hard working student receives a grant for research on economics. He needs a bank account for his grant. 6. A teenager earns some money and wants to save it as he desires to buy a new computer. f. Search the Internet for the key words joint account, compounding interest, overdraft facility, individual retirement account, Internet bank account, online bank savings account, MMDA- money market deposit account. g. Try to explain the meaning of the following expressions: “Money saved – money gained” (English proverb). “If you owe your bank a hundred pounds, you have a problem. If you owe it a million pounds, it has a problem” (John Maynard Keynes). 4.7 Reading for Cross-cultural Associations Read the excerpts below about money matters in the English speaking countries. Compare the situation in Great Britain and the US with that in Russia. Discuss it with an interlocutor. A. British people take their financial system for granted. Savings are the heart of this system. Savings are just what people have left over after meeting their daily needs for food, housing, recreation, etc. If individuals didn’t save, there would be no spare money to lend to other people. So the first fundamental component of the British financial system is the population’s savings. People usually save around 15% of what they earn. The savers are not the government, which in fact is a big borrower. They are not companies, which generally would like to borrow money to finance expansion. The savers are ordinary citizens. Therefore, the British financial system is 215 driven by the separate decisions of millions of people. They can make these decisions because of two main ingredients, they are: private property and a free press. Individuals can buy and sell all kinds of assets, i.e.: personal possessions (televisions or cars), they own shares in companies, they can buy government bonds, they can form partnerships with others to run a business. There is a basic freedom to use your money and property as you wish. The other ingredient, a free press, is less obvious but people can’t save or invest wisely without information useful in business. Britain has a flourishing business press: a daily newspaper the “Financial Times”, a weekly magazine the “Economist”. Both are read by business people and others all over the world. Television and radio also carry detailed business news. The British financial system is stable, extensive and complex. Very few British people go through life without being closely involved with the formal financial system. About 90% of the adult population have bank accounts, many people also maintain an account with the Post Office, which has a branch in nearly every town and village across the land. About 10 million individuals (about a fifth of the British population) own shares. More recently, millions of the British have acquired credit cards. They usually use them instead of cash to make purchases. Some also use debit cards which automatically deduct money from the cardholder’s bank account when swiped through a machine by the shop. Today experiments are also being conducted with “smart” cards. B. Since the times of the first Puritans, the dollar has always been the measure of human worth, the maker of friends and the influencer of people. It’s no disgrace to be poor, but it sure is inconvenient. Americans worry about the federal deficit and about maxing out (exceeding the credit limit on) their plastic (credit cards). People shop at outlets and discount stores, join clubs so that they can enjoy the benefits of buying in bulk, and wait for sales featuring reduced prices. 216 Most Americans have traditionally relied on their jobs for an income. But the exporting of jobs and cost-cutting led, in the early 1990s, to widespread layoffs (also known as corporate downsizing) and downshifting (being forced to accept a less well-paid job). Although middle management was hardest hit by such cuts in the 1990s, few American workers at any level were immune to the prospect of being dumped. Hard-working Americans worried about their financial security. They were, and are, concerned about buyouts (where one company buys out another, often giving pink slips, a notice of dismissal from employment, to their employees) and golden parashutes (financial protection for company executives in the event of an unfriendly takeover by another firm and the loss of their jobs). People want to protect their IRAs (Individual Retirement Accounts), 401(K)s (corporate-sponsored retirement funds), and other savings plans, and they wonder about whether Social Security will still be there when they reach retirement age. By the end of the 1990s many Americans complained that they couldn’t get work or they didn’t want the kind of work they could get. Many refused to “flip burgers” (a reference to minimum wage work at a fast food restaurant). They complained that because the manufacturing economy (based on factory jobs) was giving way to a service economy (where employees provide a service rather that producing goods), skilled factory jobs were disappearing, and their training and experience were no longer valued. 217 4.8 CASE-STUDY & ROLE-PLAY Consumer skills FINANCING A CAR LOAN The case Arthur, a university student, is planning to buy a car as soon as possible. But when he realizes how much money he will need to make this purchase, he is taken aback. Arthur has got an account in a bank, but what he has in his account is not enough. Nevertheless, a young man doesn’t want to give up the idea completely, and thinks that he would rather make use of his bank’s credit facilities. He knows that recently banks have introduced new services so that their customers could have more options. Arthur hopes that in his case a loan can be obtained from a commercial bank. But as he knows next to nothing about borrowing money, Arthur decides to speak to the bank loan officer to clarify the matter. The bank loan officer explains to Arthur that to make a loan he must be a customer of the bank, because the money will be lent to him through a bank account. The bank officer adds that there are two ways in which a customer may borrow. The first, and easy one, is to spend more money than a person has in his current account, that is to overdraw on his account. This is useful if a person only wishes to borrow a small amount for a short time. The interest rate on overdrafts depends on the bank rate. It is usually 10-12% over base rate1. The second way is to arrange a “personal loan”. This is the normal way of borrowing larger amounts or for a long period of time. The bank officer makes it clear that if a personal loan is granted it will be a fixed sum immediately available for a fixed period of time. The principal2 and the interest on it may all become due for payment at the end of that period but for personal loans it is common to arrange that the loan and interest are repaid in equal 1 In Britain, the base rate is the rate of interest that banks use as a basis when they are calculating the rates that they charge on loans. 2 A sum of money lent or invested, on which interest is paid. 218 regular installments over the period of the loan. As a rule each month the customer makes a payment on the loan to the bank. Finally, the bank loan officer pays Arthur’s attention to the main advantage of a personal loan: the interest rate is fixed. Case Analysis Step 1. Clarify the issue 1. What do a bank’s credit facilities imply? 2. Why do you think an interview with a credit officer is a must? Step 2. Evaluate advantages and disadvantages 1. 2. 3. 4. 5. What types of borrowing money are possible? What is overdraft? What is a personal loan? How are personal loans usually repaid? Which way of borrowing money is more preferable for Arthur from your point of view? Give the English equivalents for the following. воспользоваться возможностью кредитования иметь возможность выбора специалист по работе с кредитами получить ссуду через банковский счет сверх базовой ставки тело (основная сумма, на которую начисляются проценты) и проценты по кредиту подлежать оплате выплачивать(ся) равными регулярными взносами 219 Role-playing Situation You’d like to purchase a car but do not have the entire amount of money needed. You intend to borrow some money. What you must decide Determine the best way to finance a loan. Cast Student A Student B Student C Student D Student E Student F Student G Work in a group (Students A , B, C, D, E, F, G) Student A (Arthur) You want to buy a car, but only have enough savings to buy an old one. You are thrilled at the idea of buying a new model which hopefully wouldn’t need repairing so often. But when you realize how much money will be necessary to make this purchase you are at a loss because you don’t have enough money. Nevertheless you don’t want to give up the idea completely, and think that you would rather make use of your bank’s credit facilities. You’ve heard that borrowing money to buy an expensive item has become more and more common nowadays, and you hope it is possible to obtain a loan from a commercial bank. You also know that you may be financing a loan during the next several years. But you’ve never borrowed before and as a newcomer in this sphere you don’t have any idea how to start this process. That is why you have visited your 220 bank and had a talk with the bank loan officer. Some aspects of borrowing money have been explained to you at the bank but you need more clarification of this complicated matter. Luckily your friend works in the commercial bank. You ask him for help. Make use of the helpful phrases: From what I’ve heard … . Wouldn’t it be a good idea to … . The difficulty is … . There is a relatively simple way of doing that … . Don’t you think it would be better to … . I don’t know what to begin with … . There is little chance of … . I know it’s risky but I’m all optimistic about … . The thing that worries me most is … . Student B You’ve been a loyal and true friend of A. since college. You don’t want to dissuade A. but share your opinion that it is unrealistic to purchase a new car without a loan from a bank. As a bank officer you are well informed about all aspects concerning a bank’s credit facilities. You want wholeheartedly to be of help and give A. some practical advice how to discuss a loan, to raise a loan and to pay off a loan. You attract your friend’s attention to the fact that borrowing intelligently requires an understanding of the three basic steps to negotiate a loan. Firstly, you should compare loan sources. Secondly, it is necessary to compute interest. Thirdly, you should determine repayment time. Make use of the helpful phrases: I see no reason why … . In the circumstances the only chance seems to be … . The thinking behind my proposal is … . I consider it absolutely essential … . I want to explain exactly why I am proposing to … . I understand you may feel hesitant about … but I can assure you that … . While I realize you must have some doubts about … . 221 It’ll cause no problem. There’s only one way of dealing with the problem. I advise you most strongly to … . Student C You take a realistic view on this matter and inform your friend that you can share some useful information concerning loan sources. You’ve learnt that numerous loan sources are available to borrowers. Loans for major purchases can be obtained from credit unions, banks, finance companies, or, for cars, the car dealers. If all other factors are equal, the choice depends on which source will charge the lowest rate of interest. So you advise your interlocutor to call banks, finance companies, and other lenders. Make use of the helpful phrases: The first decision to be taken is … . I consider it inevitable … . Does this mean that? Will this involve? Could you explain what this will mean in terms of …? I don’t quite catch the full implication of … . I’m sure it’s feasible to … . I’m completely behind the proposal to … . Student D You approve of your friend’s intention to call different loan financial institutions and explain to him that he should ask them what annual interest rate they charge on used car loans and the method used to calculate repayment. It’s necessary for him to compare answers to find the best finance source. In your opinion it is important to understand the two basic methods of figuring interest – simple and compound. Make use of the helpful phrases: I could not agree more with your idea … . Let’s discuss it in more detail … . I agree with you on the whole but I’d like to add that … . I know from experience that … . 222 I advise you most strongly to … . I’m convinced … . I’m dead sure of it. Student A Unluckily, you know next to nothing about computing interest. Moreover, you want to be absolutely clear about some details concerning a personal loan. You think your friends must know in every detail all about it. You ask them the following questions: Must a reason be given for borrowing money? How long are you given to pay the money back? How is it paid back? How is interest calculated? Make use of the helpful phrases: This is all very interesting but … . Actually … What I don’t understand is … . What is more … . Another point is … . The worst thing is … . Could you break down the calculations into more details? Student E Your aim is to make A. think in realistic terms. You are ready to give full answers to the above questions. You explain to A. that the borrower must give the reason for wanting money. You know that usually 6, 12, 18, 24, up to 60 months are provided to pay the money back. Normally 24 for a car and 36 for other things. It is the usual practice that repayments are made monthly from a current account. As to interest, using the simple interest method, the borrower repays the principal – the amount borrowed – and interest in one single payment to the lender. Make use of the helpful phrases: I mean to say … But the truth is … 223 As far as I can see … Could you possibly …, please? That brings up the whole matter of … I differ from you … There’s something in what you say, but … I must admit … Student A You have no idea about the way interest is calculated. You turn to one of your fellow-students for help. Make use of the helpful phrases: The question is … . I dare say … . The way things are … . Looks like that … . I won’t deny … . Primarily … . As far as … is concerned … . On the surface (of it) … . What matters is … . Student F You have roughly calculated all the costs which will inevitably arise. For example, to purchase a car A. would like to borrow $2,000 at 8 percent interest. A. will repay the loan in 12 months. Interest can be calculated using the formula I = P x R x T. In the formula, I is interest, P is principal, R is rate of interest (percent), and T is time, in years, before the money is repaid. Hence, $2,000 x 0.08 x 1 = $160 – the amount of interest charged. The total to be repaid at the end of the year is $2,160 – that is, $2,000 principal plus $160 interest. Make use of the helpful phrases: Let’s face the facts … . I know from experience that … . From what I know … . The obvious answer is … . 224 Let’s look at the whole question from a realistic point of view. Let’s be realistic about this … . Student G You agree with your friends’ point of view and appreciate their practical advice. But it is not as simple as that. The repayment schedule for most loans actually is calculated by using compound interest – the add-on method. Payments are broken into even parts – 12 months, for example –and that portion – one-twelfth –of interest and principal is paid back each month. Using the add-on method, the borrower must know the annual percentage rate (APR) or total finance charge on the loan rather than just the loan interest as in simple interest. If a monthly payment plan were used, repayment of a $2,000 loan at 8 percent would cost A. approximately $180 per month – $2,160 divided by 12 months. Using a monthly repayment plan, A. has possession of the entire $2,000 he borrowed for only one month. Then A. is paying the loan back in equal portions. Monthly repayment of the principal and interest increases the annual percentage rate (APR) from 8 percent to 14.8 percent. You stress that it is not necessary to know how to calculate this APR. You add that by law the lender must tell the borrower the rate. You finalise that using the APR as a guideline, borrowers can more easily decide which loan is best suited to their purposes. Make use of the helpful phrases: You’ve got to take … into account (consideration). Mind that … . I’ve calculated that … . I should make it clear … . If that is the case … . Student A You are very grateful to your friends for the explanation of the first two steps of borrowing money. It’s absolutely clear to you that interest rate is one important factor that affects the cost of a loan. Now you can eye your opportunities. You believe that your position is strong enough and there is no ground for concern. As to the other factor that influences the cost of a loan it is the length of time before 225 the loan is completely repaid. You understand that as car prices have increased, so have the amount borrowed and the time required to repay the loan. Borrowers tend to see the lower monthly payments on longer-term loans as an advantage. But you’ve heard that often borrowers fail to realize that a longer repayment time increases the total cost of the loan. Your plan of action will be based on exact calculations. Make use of the helpful phrases: After a lot of thought I’ve come to understand that… . I’m confident that … . What I understand is … . I entirely agree… From what I have heard … . It was a pleasure to … . The only thing to be done is … . Making a Decision In coming to a decision, consider the following points: What an educated borrower should bear in mind when considering the best way to finance a loan. What precautions should be taken in making a loan. What other factors should be discussed? Your decision: 226 4.8 GRAMMAR BACK UP PRACTICE WITH REPORTED SPEECH LEAD-IN Exercise 1 Task 1. Familiarize yourself with the text. Consult the Grammar notes below. Translate the text into Russian. The chief responsibilities of a Personnel Manager are employing and dismissing staff and looking after and improving the employees’ welfare and conditions of work. When an employee arrives at a factory to start work the first thing he does is to clock in. A time clock punches a mark on the worker’s time card to correspond with the exact time of arrival. Trying to cheat this system is a very serious offence. But some days ago Harper & Grant had trouble in the press room with one of the press operatives who arrived an hour and a half later. The reporters of some newspapers were informed about the accident and tried to clarify the situation with the help of Ian Hampden, the Personnel Manager of Harper & Grant. First of all Ian Hampden explained to the reporter that Harper & Grant did not have a closed shop, that meant, they did not make it a condition of employment that a worker must belong to a certain trade Union. The reporter was surprised to hear that ninety per cent of the workers were members of one or other of the unions. All the toolmakers, skilled machiners (machinists), sheet-metal workers, assembly-shop workers and fitters belonged to one union, the electricians to another and the office staff to a clerical union. Ian also added that every member had to pay a subscription, a sum of money paid regularly to the particular union (often referred to as union dues). Then Ian said that a shop steward, who was elected by the workers on the shop floor, looked after each union’s affairs. It was the first time that the reporter had come across the name. Ian explained to the reporter that the shop steward was at the day-today level of representation between a company and a union. He represented the workers in a particular shop, or department, in a 227 factory. The shop stewards were recognized by the management, and they served as a channel of communication both ways. The Personnel Manager told the reporter that they were allowed to collect union dues on the premises, but they could hold meetings in the factory or office block only with the permission of the management. In addition to the above explanation the reporter was informed that besides obtaining the best possible working conditions for their members, unions in Britain, as in many other countries, also organized medical schemes, insurance and legal aid for their members. And they used part of their funds, the money collected from the members, to pay a weekly sum of money to their members if they were out on official strike. Ian said that an official strike was one recognized by the union. Strike pay was small compared with the workers’ normal wages. They did not draw it if it was an unofficial strike or a “wild cat” strike. Of course the reporter wanted to find out whether Harper & Grant Ltd. had any problems with the trade unions. The Personnel Manager stressed that in most firms the relationship between management and unions was good, but sometimes a shop steward was ambitious to get more personal power. Ian said that in their case a certain shop steward used a worker who had a grievance, something making him angry or annoyed, to create trouble in the works. His aim was to help put pressure on the management in connection with a claim for a general wage increase. Ian added that many employees, of course, thought they were underpaid, and some managements were reluctant to increase wage until forced to do so. Some firms have introduced profit-sharing schemes, so that employees could share directly in the results of harder work or better organization. The reporter knew that the difficulty was that the majority were not prepared to take a cut in wages if the firm had a bad year. Ian pointed out that good employee-management relations often presented difficulties and problems. Some firms solved those problems better than others. As for their firm, Ian continued, usually Harper & Grant had good relations with their employees, as they were a comparatively small “family” firm. Task 2. Use direct speech instead of indirect in the italicized part of the text. Turn the given situation below into a TV press conference. 228 PRACTICE We use direct speech when we speak. We use indirect (reported) speech when we are telling someone what another person says or said. Ask yourself these questions when checking reported speech. 1. What reporting verbs do we use in reported speech? The commonest reporting verbs in both direct and indirect speech are say, tell, and ask. a. After tell we normally use a personal indirect object (tell somebody) to say who is told. Say is followed by an optional to + the person who is addressed: He said / told me (that) his wife was self-employed. I said to Sara that I was not wealthy because I had a lot of debts. We never use a comma after say or tell someone. If we need to mention the listener, tell + indirect object is preferable to say + to someone. b. Ask (with or without a personal indirect object) can report a question. Ask (someone) is followed by if / whether or a question-word: She asked me whether / if I had received any fringe benefits. c. Mind fixed expressions with say, tell, and ask: say a few words, say no more, say nothing, say your prayers, say so: – Poverty is an income of $9,862 a year for the family of four. – Who says so? – The Bureau of the Census said so in 1992. tell + object: (can) tell the difference, tell a lie, tell a story, tell (the) time, tell the truth, you never can tell, to tell one thing from another, tell a secret. ask after someone, ask (for) a favour, ask a question, ask the price. 229 Exercise 1 A. Write the correct form of say or tell in the following sentences. Be careful to observe sequence of tenses. 1. Harvey ______ he would provide a source of finance for investment. 2. – Where is Peter? – He ______ the customers how to cut down on heat waste when they use the new model of a boiler. 3. Who ______ you that she is scheduling meatless meals to avoid debts? 4. When did you ______ Mary that the garage sale in our neighbourhood would be on Friday? 5. My sister ______ us that we should apply common sense to cut down on heat waste. 6. No one in the second grade class could ______ time. 7. My mother always ______ us to take to buying used clothes to make both ends meet. 8. What time did you ______ that the lecture had begun? 9. Who ______ that we are having a seminar tomorrow? 10. The judge instructed the witness to ______ the whole truth about the sources of his income. 11. The little boy ______ a lie about not eating the cookies before lunch. 12. Our trainer ______ that we would not have any break in the circle of poverty. 13. Because he could not ______ the difference, the man bought both models. 14. I saw my boss in the office and ______ that I had wanted to offer him to buy into the firm. 15. Never ______ a secret to a person who spreads gossip. B. Translate the sentences into English. (Refer to 1c) 1. Вы мне рассказали о Ваших источниках дохода больше, чем мне нужно знать. Прошу Вас, больше ничего не говорите! 2. Если Вам нужны деньги, почему Вы не попросите коголибо о ссуде? 230 3. Ничего не рассказывай им о дополнительных льготах. Сделай мне одолжение, ничего не говори. 4. – Его долги должны быть вычтены из его личного капитала. – Кто это сказал? – Я это говорю! 5. Позвольте и мне сказать несколько слов. Я занималась этой платежной ведомостью и другими счетами. Я не могу лгать. 6. По правде говоря, благодаря этой серии депозитов происходит расширение денежной массы. 7. Скажите, пожалуйста, несколько слов не только о денежном предложении, но и о спросе на деньги. 8. Я могу открыть либо текущий, либо срочный вклад, но как отличить один от другого? 2. How does a verb change in reported statements? When the reporting verb is in the past (e.g. he said, you told me), the tense in the reported speech normally “moves back”: Verbs in the present change into the past: Speaker’s words Reported speech I am counting the wages. She said she was counting the wages. I have to stop at the bank. You told me you had to stop at the bank. He doesn’t get any interest. You said he didn’t get any interest. Val has found a part-time job. He told us that Val had found a part-time job. Verbs already in the past, change into the past perfect or they do not change: We tried to avoid debts. They said they had tried (tried) to avoid debts. Verbs already in the past perfect, do not change: They had fixed up the house by June. He said they had fixed up the house by June. 231 Modal verbs change as follows: can – could; will – would; shall – should; may – might. I can plough it back into business. He said he could plough it back into business. I will buy used tools. He said he would buy used tools. We may hire laid off workers. He said we might hire laid off workers. The past modals could, would, should and might do not change in reported speech. They should estimate the costs. I told him that they should estimate the costs. The firm could meet its payroll. They said that the firm could meet its payroll. Must either does not change or it takes the past form (of have to) had to. I must pay the rent. He said that he must (had to) pay the rent. 3. Do we always change tenses in reported speech when we use a past reporting verb? a. If we report something that is still true now, we sometimes use the same tense as the speaker. – The Bureau of the Census defines poverty as an income of $9,862 a year for a family of four. – He said that the Bureau of the Census defines poverty as an income of $9,862 a year for a family of four. But even if something is still true, we often change the tense. He said that the Bureau of the Census defined poverty as the income of $9,862 a year for a family of four. b. We always change the tense when there is difference between what was said and what is really true. She said that she was 18 years old, but in fact she’s only 16. 232 c. But a speaker can choose to report a statement or a question using the tenses that match his viewpoint, based on the facts of the situation as he sees them at the time of speaking. Note the different viewpoints expressed in the following examples: Mr. Frost says (now) he has read the income statement and didn’t understand it. (then, when he finished reading, or then, while he was reading). Mr. Frost said (then) he had read the income statement (now) and didn’t understand it (then). Mr. Frost said (then) he had read the income statement (then) and doesn’t understand it (now). Mr. Frost said (then) he had read Tony’s book (then) and didn’t understand it (then).1 4. Do pronouns, adjectives, adverbs, etc. change in reported speech? a. Pronouns (I, me, ...) and possessive adjectives (my, your, …) often change in the reported speech. Pat said, “I have grown in a middle income family. My parents weren’t rich.” Pat said (that) she had grown in a middle income family, her parents weren’t rich. b. People use words like here, now, today, to talk about the place where they are speaking and the time they are speaking. If we report these words in a different place or a different time, they often change. 1 (L.G. Alexander, Longman English Grammar) 233 Place Time verbs Speaker’s Words Reported Speech here there this that/the these those now then today that day tonight that night tomorrow the next day/the following day yesterday the day before/the previous day two days ago two days before/ earlier last night the night before come/bring go/take 5. How do we report questions? a. Tenses, adjectives, pronouns, etc. in reported questions change in the same way as in reported statements. Are you sure? The manager asked me if I was sure. In reported questions, the word order is the same as in statements (e.g. I was sure), and we do not use a question mark (?) b. In reported questions, we do not use the auxiliary verb. How does it differ from A? He asked how it differed from A. c. When there is no question word (e.g. what, where, why) we can use if or whether to introduce a reported question. Do you receive fringe benefits? I asked if they received fringe benefits. 234 6. What is the way to report orders, requests, warnings, advice and invitation? a. We report orders, requests, warnings, advice and invitations using the structure verb + object + to infinitive or verb + to infinitive. “Could you help me?” I asked (him) to help me. “You should pay the expenses.” He advised( me) to pay the expenses. “Get out of the room!” She told the man to get out of the room. b. In negative orders, promises etc. we use not to + infinitive. “Don’t define the sources of income.” He told me not to define the sources of income. 7. What changes do if- and time-clauses undergo in reported commands and questions? a. Questions with time and if-clauses should be reported with the time or if-clause last. “When/If I see her, what shall I say?” she asked. – She asked what she should say when/if she saw him. b. Sometimes it is advisable to use say/said that + time/if clause + be/should + infinitive to avoid a clumsy sentence. “If / when you see him, ask him to ring me,” she said. – She said that if / when I saw him I was to ask him to ring her. Exercise 2 Report these statements with said moving the clauses “one tense back”. DIRECT SPEECH STATEMENTS INDIRECT SPEECH STATEMENTS present becomes past 1. Jack: I need a holiday. 2. Jill: I’m not wasting my time. Jack said (that) he needed a holiday. 235 present perfect becomes past perfect 3. Mac: I’ve had some good news. 4. Tom: I’ve been cutting expenses. past becomes past or past perfect (past perfect is often optional) 5. Pam: I repaid the loan at once. 6. Sue: I was waiting for you. past perfect does not change 7. Leo: I had reported it earlier. 8. Joe: I had been sleeping. modal “present” becomes “conditional” or “past” 9. Jan: I will get a refund later. 10. Dot: I may buy into the firm. 11. Tim: I can rent this apartment. “shall” with a future reference becomes “would” 12. Kim: I shall take the job. “shall” in offers and suggestions becomes “should” 13. Rob: Shall I do it myself? Rob asked whether ... “past” or “conditional” modals do not change 14. John: I could get the loan. 15. Ted: I might hire him. 16. Ann: I would utilise the refuse. “perfect” modal forms do not change 17. Lee: I must have lost all the rent 18. Jim: I couldn’t have spent that. 19. Lou: I needn’t have said so. 20. Don: I ought to have fired him. “should” (=“it’s advisable”) doesn’t change 21. Len: I should submit a claim. “should” used in place of “would” in conditionals becomes “would” 22. Lee: If I were you I should let it. “must” (=necessity in the past) does not change, or becomes “had to” 23. Dan: I must buy into the firm. 24. Ned: I must cut down on clothes. 236 “must” (=necessity in the future) does not change, or becomes “would have to” 25. Paul: I must raise the funds. 26. Bet: I must save my income. “must” (= deduction or possibility) does not change 27. Jill: Joe must be a thief. “mustn’t”(=prohibition) does not change, or becomes “couldn’t” 28. Bill: I mustn’t refuse her offer. 29. Phil: You mustn’t cut aid for us. Exercise 4 Put these statements in the reported speech: 1. “Mr. Hampden, we’ve got trouble in the press room this morning,” said Ted Fielding. 2. “I cleaned Mr. Wiles’s car last night out of works’ time,” Smith told Ian Hampden. 3. “An hour and a half will be subtracted from your pay this week. And I must warn you that if this happens again it will be a case of dismissal,” the Personnel Manager told the worker. 4. “I don’t think we have anything to say to each other,” said Jack Green. 5. “Shop stewards are allowed to collect union dues on the premises, but they can hold meetings in the factory or office block only with the permission of the management,” said the Manager. 6. “I decided to stay here no matter how difficult it was to meet expenses,” Carla told Ted. 7. “Carla knew that her children would have to eat waffles or nothing,” said the interviewer. 8. “In economic theory, “labour” is any work undertaken in return for fixed payments,” said the lecturer. 9. “When our family bought the house, we experienced some problems but managed to benefit from it”, Mark Lorraine told his son. 10. “We shall have to find building sites and hire architects and subcontractors”, Mary Farrar told her husband. 237 11. “You haven’t given me quite enough. The bill is for $14 and you’ve paid me only $ 13,” he pointed out. 12. “I’ve no idea what the time is but I’ll find out,” said his daughter. 13. “We like working on Sundays because we get double pay,” explained the fitters. 14. The advertisement said, ”If you answer the questions correctly, you may win $100.” 15. “The burglars couldn’t open the safe on the spot so they carried it away with them,” the night watchman reported. 16. “Yesterday Tom and I went to look at a house that he was thinking of buying. It was rather a nice house and had a lovely garden but Tom decided against it because it was opposite a cemetery,” said Celia. Exercise 5 In this exercise someone says something to you, which is the opposite of what they said before. You have to answer I thought you said ... e.g. “That plan is expensive.”–“I thought you said it wasn’t expensive” 1. “I need to borrow some money.”– “I thought you said ... .” 2. “We haven’t yet done anything on the management side.” 3. “The shop stewards are recognised by the management.” 4. “Trade unions organise medical schemes, insurance and legal aid for their members.” 5. “We are going to ask the Union to press a wage claim”. 6. “I don’t like that accusation, Mr. Hampden.” 7. “I feel there should be some system of profit sharing”. 8. “My card was punched for eight o’clock.” 9. “I haven’t got any union dues to pay, because I don’t belong to any of the trade unions.” 10. “Mr. Hardy’s reputation is very stable as he serves as a channel of communication both ways.” 238 Exercise 6 Report these Yes/No questions moving the clauses “one tense back” wherever necessary. 1. “Are you sure?” He asked me if / whether I was sure. 2. “Has Pat been working here long?” - He wanted to know _________________________________. 3. “Will you see Smith, because you’re so much better at handling things like this than I am?” – I was wondering if __________________________________. 4. “Is Symes reliable?” – Do you know _____________________________________. 5. “Must I define changes for the job and income categories?” – I asked the trainer if ________________________________? 6. “May I take a point?” – He wanted to know ________________________________. 7. “You don’t mind if I just interrupt a moment, do you?” – She wanted to know ________________________________. 8. “You see my point, don’t you?” – She asked us ______________________________________. 9. “Will you be raising the subject of cutting business expenses or not?” – He wanted to know _________________________________. 10. “Did you report the calls for doggie-bags?” – He wondered ______________________________________. 239 Exercise 7 Report these question-word questions moving the clauses “one tense back”. Mind that the inversion after a question-word in a direct question changes to statement word order in the reported question and, if necessary, the tense is changed at the same time. e.g. – Where has Sally put the folder? – Do you know where Sally has put the folder? 1. – What is it all about, Ted? – Have you got any idea ______________________________? 2. – What do you want me to do? – Could you tell me __________________________________? 3. – Why are people turning to second-hand markets for things like bikes? She wondered _________________________________. 4. – What kind of aid has Marco had? You wanted to know __________________________________. 5. – What do you feel your colleagues will think about it? – I wonder __________________________________________. 6. – What did Mary Farrar’s surplus amount to after paying business expenses? – I want to know _____________________________________. 7. Where did Mary Farrar learn the economics of building? – Could you tell me __________________________________? 8. – What percentage of your income comes from fringe benefits? – Do you know _____________________________________? 9. – How long have you been with this firm? – Did you tell him ___________________________________? 10. – Which companies will John be investing in? – You didn’t say _____________________________________. 240 Exercise 8 Report these subject-questions moving the clauses “one tense back” only where necessary. Mind that a direct subject-question has the same word order as a statement. e.g. – Who is next please?” – The Personnel Manager wanted to know who was next. 1. “Which Memorandum carried the clause?” I’d like to know _____________________________________. 2. “Whose report haven’t we heard yet?” The Chief Accountant asked us to tell him ________________. 3. “Who hasn’t honoured the delivery dates?” Tell me ____________________________________________. 4. “What money will they repay the loan on their house with?” I haven’t any idea ____________________________________. 5. “Which firms have won grants for re-equipment?” This article doesn’t say _______________________________. 6. “Which number can be divided by three?” The teacher asked ___________________________________. 7. “What will happen to the costs involved in construction?” Another Board member enquired _______________________. 8. “Who is going to keep all the other accounts?” The customer tried to find out __________________________. 9. “Which of them will have to keep payroll?” He reminded me that I should ask _______________________. 10.“Who had paid for utilities before Carla got her job?” I’m afraid nobody knows _____________________________. Exercise 9 Put the following into indirect speech. The first 6 questions require no change of order. 1. “What happened to the redundant worker after dismissal?” said one of the men. 2. “Which of his sons inherited his estate?” asked another. 3. “Who is going to share the income of the enterprise?” enquired a third. 241 4. “What will happen to his checking account?” asked someone else. 5. “Which team won the previous match?” said Bill. 6. “Who has just dropped a $50 note?” I asked. 7. “Why does the price go up so soon?” she wondered. 8. “Is a return ticket cheaper than two singles?’ said my little daughter. 9. “Will you go on strike when the others do?’ the shop steward asked him. 10. “Can you read the last line on the chart?” the accountant asked me. 11. “Are you sorry for what you did?” the Personnel Manager asked the worker accused of a very serious offence. 12. “Could I speak to Mr. Martin?” said the caller. “I am afraid he is out”, said the secretary. “Could I take a message?” Exercise 10 Change the following direct commands, requests, invitations etc. using tell, order, ask, beg, advise, remind, warn, reproach etc., remember that the person addressed is often not mentioned in a direct command, but must be mentioned in an indirect command. e.g. He said, “Go away” – He told me (Tom, us, them, etc.) to go away. “Lend me your calculator,” I said to Mary. “Don’t believe everything you hear,” he warned me. “Please, fill up this form,” the secretary said. “Open the safe!” the manager ordered the clerk. “Please, do as I say,” he begged me. “Read it before you sign it,” he said to his client. “Invest into the firm,” I advised my friend. “Don’t argue with me!” the senior officer said to his subordinate. 9. “See if you can find any receipt,” the shop assistant said. 10. “Pay at the cash desk,” the bank teller said to the client. 1. 2. 3. 4. 5. 6. 7. 8. 242 11. “Think well before you go to the Managing Director,” the shop steward warned Smith. 12. “Don’t worry about anything, Mrs. Wiles,” said her solicitor. “Leave it all to me.” 13. Notice: Please do not ask at the desk for change for telephone calls. 14. “Don’t make mountains out of molehills,” he said. 15. “Read it yourself if you don’t believe what I say,” he told me. 16. “You might have checked these figures for me,” he said. 17. “Answer this complaint for me, will you?” he said. “And remember to keep a copy.” 18. “Would you mind paying cash?” said my landlady when I took out my check-book. Exercise 11 Put into indirect speech the following commands and questions with if-clauses and time clauses. 1. “If I find the missing file what shall I do with it?” he said. – “Keep it till you see me again,” I replied. 2. “If anyone rings up,” she said, “say that I’ll be back shortly.” 3. “When you arrive at the factory don’t forget to punch a mark on the worker’s time card to correspond with the exact time of arrival,” he said. 4. “What will happen if the strike continues?” he said. 5. “If the energy crisis continues with sky-high prices to follow, how will we make both ends meet?” wondered the housewives. 6. “When you have completed one section, go on to the next,” the trainer told the trainee. 7. “If you don’t like the current account, open the deposit account,” advised the manager. 8. “If I lose my traveller’s cheque, will the bank repay me?” I asked. 9. “As soon as you find a hotel, ring me and give me the address,” he said. 10. “I must warn you that if this happens again it will be a case of dismissal,” Ian warned him. 243 11. “If the firm introduces a profit-sharing scheme, some workers will not take a cut in wages because of the bad year,” he said to me. 12. “I feel there should be some system here of profit sharing. If not, we shall go on having little incidents like this one,” added the Personnel Manager. 13. “I don’t care whether you like it or not!” he exclaimed. 14. “If you dismiss me there will be a walk-out,” he warned the management. 15. “Workers on strike do not draw a strike pay if it is an unofficial strike,” commented the man. Exercise 12 Identify the one underlined word, phrase or punctuation mark that must be changed in order for the sentence to be correct. 1. It was August and they had fixed up the house by June. – Who (A) told so? Martin did, but he didn’t tell the exact time of their (B) (C) (D) arrival. 2. The watchman reported that the burglars were not able to open (A) (B) (C) the safe on the spot and had carried it. (D) 3. The wife said that yesterday they had gone to look at the (A) (B) house but had decided against it because it was opposite the (C) (D) cemetery. 4. Did he tell you which of the models he had bought? – He could (A) (B) (C) not say the difference and bought both models. (D) 5. Mr. Frost asked what was he to do with the purse if he found it (A) (B) and I told him to keep it till he saw me. (C) (D) 244 6. I asked the manager whether the agency would repay me if I (A) (B) send a complaint in writing. (C) (D) 7. Jim Green warns the worker to think well before he went to the (A) (B) (C) manager and told the lie. (D) 8. I wanted to pay cash but my landlady asked me that I would (A) (B) (C) mind paying by check. (D) 9. She reproached me that I might have checked these figures (A) (B) (C) I had received from the office. (D) 10. The superior asked the subordinate if he was sorry for what he (A) (B) did when the latter was accused of a very serious offence. (C) (D) 11. I thought you said you hadn’t got any dues to pay, because (A) (B) (C) you didn’t belong to any of the trade unions. (D) 12. The housewives wondered how would they make both ends meet (A) (B) if the energy crisis continued and it was followed by sky-high (C) (D) prices. 13. Mr. Frost said then that he had read the income statement and (A) now he doesn’t understand it and wants me to say the (B) (C) (D) difference between the first and the second estimate. 245 14. He said that he must pay the rent and would have no money (A) (B) left, but he may get some aid from the trade union, and (C) would manage to survive in that case. (D) Glossary add v (to) 1. to put together with something else so as to increase the number, size, importance, etc. 2. to join (numbers, amounts, etc.) so as to find the total 3. to increase add v (up) 1. to make sense; form a likely or believable explanation 2. sum up 3. calculate add v (up to) 1. to amount to 2. to mean advance n money advance advance free of interest in advance advance notice advance payment borrow v (of, from) 1. forward movement 2. money provided before the proper time 3. loan a loan a loan without interest ahead in time; beforehand a warning or information something that is going to happen about money provided before the proper time 1. to take or receive (something) from another person, usu. With that person’s permission, and with the understanding that it will be returned after a certain time 2. to accept money that is not one’s own on the understanding that it will be repaid, usu. with interest, at a later date 246 to accept money that is not one’s own on the understanding that it will be repaid, usu. with interest, at a later date 1. an official paper promising to pay a sum bond n of money to the person who holds it, esp. one by which a government or company borrows money from the public with the promise of paying it back with interest at a fixed time 2. a written agreement or promise with the force of law; liability 3. a security issued at a fixed rate by central government, local authorities or private companies, it is a contract to repay money borrowed, and as such represents a debt the particular type of money in use in a currency n country; coins and banknotes that are used as legal tender total amount of money available at short the supply of currency notice in a given country personal supply of money total amount of money of a person a written order to a bank to transfer funds сheck n from a bank to someone else and is the usual way of withdrawing money from a current account a type of bank account for personal use, checking account which usually pays no interest but funds may be accessed immediately by writing a cheque ; current account (Br) 1. an act of placing money in a bank or safe deposit n 2. a sum of money placed in a bank to earn interest or make payments deposit of a sum of money with a bank, demand deposit building society or another financial institution that may be withdrawn at a moment’s notice bank account that pays interest, but time deposit sometimes notice has to be given before funds may be withdrawn; deposit account to borrow at interest 247 deposit v (with somebody/ to place in a bank or safe smth., in a bank) a person who deposits money in a bank depositor n account paper money that the government decrees is fiat money legal tender 1. a charge made for the borrowing of interest n money 2. a share in a company, business, etc. interest charged to a borrower or paid to an interest rate (rate of investor, usu. expressed as a percentage per interest) annum rate of interest calculated by adding interest compound interest previously paid to the capital sum plus previous interest payment a contract between a customer and an insurance policy insurance company, which will pay for particular losses or damage in return for one or more payments, known as premiums currency; coins or notes that may be offered legal tender as a medium of exchange something which is lent, esp. money loan n to give (someone) the use of (something); loan v lend to provide a sum of money for a credit to finance a loan to pay back a borrowed sum of money to repay a loan something that can be given or received in means of exchange return for something else total amount of money available at short money supply notice in a given country liquid assets that can be transferred near money, syn. quasiimmediately (such as a bill of exchange or money cheque), although not as liquid as cash 1. an amount stated as if it is part of a whole percentage which 100; proportion 2. a share of profits the rate of interest charged on a monthly annual percentage rate 248 (APR) stock n value n face value, Syn: nominal value intrinsic value monetary value standard of value store of value value v withdraw v withdrawal n basis (e.g. on a hire purchase transaction) shown as yearly compound rate 1. a supply of something for use 2. money lent to a government or company, on which interest is paid 3. in the USA it is an alternative term for ordinary shares 4. fixed-term security that is denominated in units of 100 1. the usefulness, helpfulness, or importance of something, esp. in comparison with other things 2. the worth of something in money or as compared with other goods for which it might be exchanged 3. worth compared with the amount paid the value or price written on a share certificate showing how much capital it represents; the denomination of a banknote or the par value of a share real cost the worth of something in terms of money a measure that can be used to calculate or evaluate the worth of something a means of accumulating wealth 1. to calculate the value, price or worth of 2. to consider to be of great worth; esteem 1. to take away or take back 2. (to cause to) move away or back 3. to (cause to) not take part in an activity the act of withdrawing or state of being withdrawn 249 Topics for presentations: 1. Money: Role, Forms, Functions 2. British money 3. American money 4. The money supply and the ways to limit it 5. Types of accounts 6. Money: history 7. Main types of banks 8. Bank of England 9. Financial intermediaries 10. Federal Reserve 11. Legal Tender 12. Fiat money 13. Credit Card Systems 14. E-Banking 250 Annex Starting Linear Algebra LANGUAGE INPUT algebran elementary abstract linear universal angle n column of a matrix determinant To calculate a determinant element of a matrix magnitude n syn. length, modulus matrix(pl. matrices) n zero identity square inverse (reciprocal) of order … diagonal multiplication n scalar dot order n matrix order point n initial terminal row of a matrix spacen vector Euclidean affine алгебра элементарная абстрактная линейная всеобщая угол столбец матрицы определитель (детерминант) вычислить определитель элемент матрицы длина (вектора) син. модуль матрица нулевая единичная квадратная обратная порядка … диагональная умножение скалярное векторное порядок, размерность размерность матрицы точка начальная конечная строка матрицы пространство векторное Евклидово афинное 251 vector n bound free spatial unit null (zero) вектор ограниченный (ориентированный) свободный в пространстве единичный нулевой DEVELOPING VOCABULARY 3.2.1 Consult a dictionary and practise the pronunciation of the following words and word combinations, quote the sentences in which they are used in the text or submit the examples of your own: affine algebra algebraic axioms column determinant diagonal Euclidean identity linear matrix matrices reciprocal rigorous spatial triangle 252 3.2.2 Match the English word or word combinations in the lefthand column with the Russian equivalents in the righthand column: 1. unknown quantities A матрицы одного порядка 2. directed line segment B единичная длина 3. an angle between two C произвольная длина vectors 4. to indicate the vector's D указывать направление вектора direction 5. right-angled triangle E вектор «с крышкой» 6. scalar number F умножить матрицу на обратную 7. in rigorous mathematical G привести вектор к единичной treatments длине 8. to reduce to the simplest H иметь то же направление form. 9. to generalize the solution I указывать направление вектора 10. to be strictly associated J строго (четко) относиться 11. to indicate the vector's K найти произведение direction 12. to follow the same direction L обобщить решение 13. to use letter notation. M неизвестные числа 14. a length of one N угол между двумя векторами 15. arbitrary length O прямоугольный треугольник 16. to normalizе a vector P привести к простейшей форме 17. a vector with a hat Q скалярная величина, скаляр 18. to multiply a matrix by its R в строгом математическом inverse смысле 19. matrices of the same order S направленный отрезок 20. to find the product T использовать буквенное обозначение 253 3.3. BACKGROUND INFORMATION Algebra originated in the Middle East. The Babylonians were the first to develop an arithmetical system for solving problems that could be written algebraically. The word algebra comes from Arabic and means reunion. It describes a system where calculations are performed firstly by rewriting (transposing) them and then reducing to their simplest form. Algebra studies the structure of things, the relationship between things and quantity. It uses symbols, usually letters, and the operators. Thus by using algebra we are able to perform calculations where unknown quantities (usually represented by x) are involved. Solutions can then be applied to all problems of the same nature by the use of a formula. So by avoiding the use of numbers we are able to generalize both the problem and the solution. It is possible to single out four areas of algebra. Firstly, there is elementary algebra in which symbols (such as x and y) are used to denote numbers. In this area, the rules that control the mathematical expressions and equations using these symbols are studied. Then, there is abstract or modern algebra in which mathematical systems consisting of a set of elements and several rules (axioms) for the interaction of the elements and the operations are defined and researched. Thirdly, there is linear algebra (linear equations) in which linear transformations and vector spaces, including matrices are studied. Finally, there is universal algebra in which the ideas common to all algebraic structures are studied. Let’s turn to linear algebra. One of the basic concepts here is a concept of a vector.A vector is a geometric entity characterized by a magnitude and a direction. In rigorous mathematical treatments, a vector is defined as a directed line segment, or arrow, in a Euclidean space. As an arrow in Euclidean space, a vector possesses a definite initial point and terminal point. Such a vector is called a bound vector. In other situations, when only the magnitude and direction of the vector matter, then the particular initial point is of no importance, and the vector is called a free vector. 254 In the geometrical and physical settings, sometimes it is possible to associate, in a natural way, a length or magnitude and a direction to vectors. In turn, the notion of direction is strictly associated with the notion of an angle between two vectors. However, it is not always possible or desirable to define the length of a vector in a natural way. This more general type of spatial vector is the subject of vector spaces (for bound vectors) and affine spaces (for free vectors). In pure mathematics, a vector is often represented as a coordinate vector. Vectors are usually denoted in lowercase boldface, as a or lowercase italic boldface, as a. Uppercase letters are typically used to represent matrices. Other conventions include or a, especially in handwriting. B a A Vectors are usually shown in graphs or other diagrams as arrows (directed line segments), as illustrated in the figure. Here the point A is called the origin, tail, base, or initial point; point B is called the head, tip, endpoint, terminal point or final point. The length of the arrow is proportional to the vector's magnitude, while the direction in which the arrow points indicates the vector's direction. OA 2,3 A 0 As an example in two dimensions (see figure), the vector from the origin O = (0,0) to the point A = (2,3) is simply written as 255 A B The magnitude or modulus of a vector |a| is its length. For example to find the magnitude of 4 vector 3 AB . 4 i.e. |AB|, we first sketch the vector. We can see that x- and y-dimensions form the two shorter sides of a right-angled triangle and AB forms 3 the longer side. We can then use Pythagoras’ theorem to find the longer side of a right-angled triangle: AB x 2 y 2 where AB is the longer side. AB 32 4 2 5 units long. We know that vectors can be shown as letters. We can also show the addition of vectors in terms of letters. Resultant vector = vector a plus vector b = a + b . The resultant vector follows the a+b b same general direction, i.e. it starts at the same point as vector a and finishes at the a end point of vector b. A negative vector can be called an inverse vector. The diagram shows the inverse vector of b b which is –b. We can see that the vectors are equal in -b size but opposite in direction. We can show the subtraction of vectors using letter notation. Here is the resultant vector of a – b. The vector –b is in the opposite direction to a the vector b in the diagram. The resultant vector = a – b = a + (-b). -b a-b A vector may also be multiplied by a scalar number. For example, scalar multiplication of a vector by a factor of 3 stretches the vector out. Two vectors are said to be equal if they have the same magnitude and direction. A unit vector is any vector with a length of one; normally unit vectors are used simply to indicate direction. 256 A vector of arbitrary length can be divided by its length to create a unit vector. This is known as normalizing a vector. A unit vector is often indicated with a hat as in â. The null vector (or zero vector) is the vector with length zero. 3.4 COMPREHENSION Understanding the reading 3.4.1.Give extensive answers to the questions. Use the following expressions to present your answers: In my opinion ... From my point of view ... Personally I think that ... As I see it ... 1. What are the origins of the word ‘algebra’? 2. In what way does algebra differ from arithmetic? 3. What makes generalization of both the problem and the solution possible? 4. What are the four areas of algebra? 5. What kind of geometric entity a vector is? 6. How to distinguish between the bound vector and the free one? 7. What is notation of vectors? 8. What should be done to calculate the magnitude of the vector? What sign is used to denote magnitude? 9. How do we add and subtract vectors? 10. What does the process of normalizing a vector entail? 257 Scanning 3.4.2. Scan the text to determine whether these statements are true (T) or false (F). With a partner, discuss why. e.g. In my opinion it is true that/I’m afraid it is false that ..., because ... 1. Algebra uses numbers and the four operators. 2. Abstract algebra study mathematical systems consisting of a set of axioms for the interaction of the elements of vector spaces. 3. As an arrow in Euclidean space, a vector possesses a definite head and a final point. 4. Matrices are usually denoted in uppercase boldface, while lowercase italic boldface is typically used to represent vectors. 5. We can then use Pythagoras’ theorem to find the modulus of a unit vector. 6. The null vector is the vector with a length of one. 7. We can show the scalar multiplication of vectors in terms of letters. 3.4.3. Do the following tasks. Comment on your calculations. Make use of the following expressions: using Pythagoras theorem … ; … units long; to be equal in length; to use the letter notation; resultant vector follows the direction … 1. The vector a = 2. The vector a = 3 . Find the magnitude of a, i.e. |a|. 4 1 2 and b = . A is the point (1,1). 2 1 Find the vectors a + 2b; 3a – 2 b. AB = a + 2b. Find the position vector of B. Position vectors are vectors which start at the origin 0, coordinates (0,0). 3. Sketch the resultant position vector. 4. The vector a = 3 . 4 Sketch a vector which is equal in length but follows the opposite direction. How many vectors can you sketch? 258 3.5. SPEAKING&WRITING 3.5.1. a) Practice working with math notations and definitions in English. Translate the definitions given as examples. To give a definition we may use the following expressions: By R denote the set of real numbers. Let p0 denote the largest prime. The number Δ = b2 – 4ac is called the discriminant of equation (1). A group G is said to be commutative if g′, g″ G, g′ g″ = g″ g′. We say that the polynomial p(x) = anxn + ... + a0 has degree n, if an 0. By definition, put f ′(x0) = lim f (x0 + h) – f (x0) . h h→0 b) Using the models given provide in writing the definitions of: integer numbers, complex numbers, imaginary numbers, a derivative, a limit, an integrant, a tangent, a straight line graph, a null vector, a modulus, a two dimension vector, a scalar quantity, an order of a matrix. c) Add some definitions of other notions. d) To describe calculations we can use the following expressions: We have (get, obtain) .. Therefore (hence, now, but, whence, so, it follows that, however) followed by a formula. Using … we get … Taking into account … we obtain … Combining … we get Using Theorem … we get … Substituting … for … in both sides, we obtain … Summing (subtracting… from…, multiplying… by …, …) we get … Integrating (3.1) with respect to x, we get ... Differentiating (3.1) w.r.t. x, we get ... Integrating this expression over M, we get ... 259 e) Use the above mentioned expressions to describe in writing some calculations of your own. f) Prove a theorem or some math statement using the following expressions to organize your writing: Further, | Moreover, | Besides, | On the other hand, | Furthermore, | In addition, | Finally, | Also, However | But | Nevertheless | At the same time | Now | On the other hand, | Still Obviously, | Clearly, | Evidently, | Trivially, | It is obvious that | It is clear that | It is readily seen that It is easy to prove that | It can be proved that | It is easily shown that | We see that | It follows easily that | It can easily be checked that | It is not hard to prove that That is | In other words, | Equivalently, | This means that | In these terms, | In this notation, | In other notation, Therefore | Hence | Whence | Thus | It follows that | This implies that | This yields that | Consequently In the converse case, | Otherwise | Conversely, | Assuming the converse, Similarly, | In the same way, | For the same reason, | By the same argument, | As before, | As above, | Likewise, Let us prove that | Let us show that | We claim that | Let us check that | We shall prove that | We shall see that | We shall show that By assumption, | By the inductive hypothesis, | By the inductive assumption, | Suppose inductively that, | By the previous statement, By definition, | By construction, | By the above We may assume that | It can be assumed that | Without loss of generality it can be assumed that | To be definite, assume that | For the sake of being definite, suppose | We can assume without loss of generality that | To be precise, For example, | In particular, | Specifically, | As an example, | For instance, Note that | Notice that | Let us remark that | Note also that | We stress that … 260 First | Secondly | Thirdly | First we shall show that | Now we show that | Finally we shall show that … First note that | Now note that | Further note that | Finally note that First let us prove that | Now let us prove that | Finally let us prove that … It can be shown in the usual way that | It follows in the standard way that | We already know that … In general, | Generally, | In the general case, Here | In this case, | In our case, Indeed, | In fact, | Namely | Actually Recall that | Let us remember that We have proved that | This proves that | This shows that | This argument shows that In this paper we prove that | In this section we show that Arguing as above, we see that | Continuing this line of reasoning, we see that … 3.5.2. Prepare a Power Point presentation about vectors in three dimensional Euclidean space. Make use of the following materials. Cover such points as vector equality, addition and subtraction, scalar multiplication, length of a vector, dot product. In three dimensional Euclidean space (or ), vectors are identified with triples of numbers corresponding to the Cartesian coordinates of the endpoint (a,b,c): These numbers are often arranged into a column vector or row vector, particularly when dealing with matrices, as follows: Another way to express a vector in three dimensions is to introduce the three standard basis vectors: 261 These have the intuitive interpretation as vectors of unit length pointing up the x, y, and z axis of a Cartesian coordinate system, respectively, and they are sometimes referred to as versors of those axes. In terms of these, any vector in can be expressed in the form: 3.5.3. a) Fill in the gaps with the suitable expressions from the box: a) identity d) a matrix g) inverse b) the determinant e) corresponding position h) an element c) a scalar quantity f) diagonal i) the order The order of …(1)… gives the number of rows followed by a b с d the number of columns in the matrix. So for a matrix we say it is ‘of … (2)… 2 by 2’. There can be matrices of different order. A matrix is often identified by a bold capital letter. In a matrix, each number is known as …(3)…. The general rule is that only matrices of the same order can be added or subtracted. To add two matrices A and B each element in the first matrix A is added to the element in the …(4)… in the second matrix B. This rule applies for all types of matrices whatever the size. When you multiply a matrix by …(5)… every element of the matrix is multiplied by that number. The zero (null) matrices are ones in which all the elements are zero. A …(6)… matrix has all its elements zero except for those in the leading diagonal (from top left to bottom right). The …(7)… matrix, I, is a diagonal matrix with the elements equal to 1. If you multiply a matrix by the identity matrix the result is the original a b с d , matrix. If A = then … (8)… of A, given the symbol |A|, is found using the following formula: |A| = ab - cd. The … (9)… or reciprocal matrix is the one which being multiplied by the original matrix results in the identity matrix. 262 b) Get ready to explain how to calculate the product of two matrices (write three rules) and the method to find the inverse of the matrix of the order 2 by 2. Provide examples and comment on you calculations. 3.5.5. Translate the following words and expressions from Russian into English. Вычислить определитель матрицы; матрицы одинакового порядка; единичный вектор; умножая обе части уравнения на два; интегрируя функцию на множестве А; число столбцов матрицы, отсюда следует; обозначим это множество через А; напомним, что …, итак, мы доказали …; по определению; по предположению; предположим, что …; указывать направление вектора; в противном случае; привести к простейшей форме, умножить матрицу на обратную; не умаляя общности; использовать буквенное обозначение. 3.5.6. Read the text about econometrics and fill the missing prepositions. Econometrics is concerned …(1)… the tasks of developing and applying quantitative or statistical methods …(2)… the study and elucidation of economic principles. Econometrics combines economic theory …(3)… statistics to analyze and test economic relationships. Theoretical econometrics considers questions …(4)… the statistical properties of estimators and tests, while applied econometrics is concerned …(5)… the application of econometric methods to assess economic theories. Although many econometric methods represent applications of standard statistical models, there are some special features of economic data that distinguish econometrics …(6)… other branches of statistics. Economic data are generally observational, rather than being derived …(7)…controlled experiments. Because the individual units …(8)… an economy interact with each other, the observed data tend to reflect complex economic equilibrium conditions rather than simple behavioral relationships based …(9)… preferences or technology. Consequently, the field of econometrics has developed methods …(10)… identification and estimation of 263 simultaneous equation models. These methods allow researchers to make causal inferences …(11)… the absence of controlled experiments. Early work in econometrics focused on time-series data, but now econometrics also fully covers cross-sectional and panel data. Time-series analysis shows how varianles change …(12)… a period of time (salaries increase over the last century, for example). Cross-sectional analysis compares varianles …(13)… one point of time (the salaries of men compares …(14)… women right now, for example). When cross-sectional analysis is combined with timeseries analysis this is called panel data analysis. 3.5.7. Translate into English. Линейная алгебра – ветвь математики столь же старая, как и сама математика. Первоначальной задачей линейной алгебры можно считать задачу решения линейного уравнения ax + b= 0. Хотя эта задача не представляет каких-либо трудностей, прием, при помощи которого она решается, а также свойства соответствующей линейной функции y = ax + b являются исходными для всех идей и методов линейной алгебры. В линейной алгебре изучаются объекты трех родов: матрицы, пространства и алгебраические формы. Теории этих объектов тесно связаны друг с другом. Для вычислений наиболее удобна матричная форма, однако главным объектом изучения линейной алгебры все же являются линейные пространства. 264 Заключение Дорогие друзья! Окончив изучение двух частей данного пособия, вы получили возможность обсудить на английском языке следующие сферы, ситуации и темы общения будущих экономистов: основы экономической деятельности распределение, обмен, потребление); рынок и конкуренция; рынок и цены; рынок труда и заработная плата. (производство, Вы ознакомились с непростыми явлениями, относящимися к морфологии и синтаксису английского языка. Обширный грамматический материал в пособии совмещен с упражнениями, направленными на проверку и закрепление изученных профессионально ориентированных материалов. Особое внимание в пособии уделено ролевым играм и кейсанализу, призванным развивать самостоятельность студентов и их умение применять на практике полученные знания. Тематика ролевых игр предполагает постепенный переход от рассмотрения экономических проблем на уровне потребителя к имитации профессионально ориентированных ситуаций, что поможет выпускникам не испытывать затруднений при иноязычном профессиональном общении. Желаем успехов! Авторы. 265 Contents Введение ......................................................................................... Unit 1 OVERVIEW OF MARKETS & MONOPOLIES ....................... Practice with modal verbs (I) ....................................... Practice with ability ..................................................... Practice with permission .............................................. Practice with obligation and necessity ......................... Practice with obligation and advice .............................. Unit 2 OVERVIEW OF ECONOMIC GROWTH ................................. Practice with modal verbs (II) ...................................... Practice with possibility, probability, deduction .......... Practice with requests, offers, suggestions, habits, refusals, promises and threats ...................................... Unit 3 OVERVIEW OF THE NATION’S ECONOMY GROSS DOMESTIC PRODUCT ECONOMIC INDICATORS ................................................... Practice with the Passive voice and relative clauses...... Unit 4 OVERVIEW OF MONEY, BANKING & MONETARY POLICY .. Practice with reported speech ....................................... Annex Starting Linear Algebra Заключение ..................................................................................... 266
