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Государственное образовательное учреждение
высшего профессионального образования
«РОССИЙСКАЯ ТАМОЖЕННАЯ АКАДЕМИЯ»
РОСТОВСКИЙ ФИЛИАЛ
WORLD ECONOMY AND BUSINESS REVIEW
УЧЕБНОЕ ПОСОБИЕ
по дисциплине
«АНГЛИЙСКИЙ ЯЗЫК (ПРОФЕССИОНАЛЬНЫЙ)»
для студентов 3 курса очной формы обучения
Специальность: 080102.65 «Мировая экономика»
РОСТОВ-НА-ДОНУ
2010
Государственное образовательное учреждение
высшего профессионального образования
«РОССИЙСКАЯ ТАМОЖЕННАЯ АКАДЕМИЯ»
РОСТОВСКИЙ ФИЛИАЛ
Кафедра иностранных языков
Утверждено на заседании кафедры,
Протокол № 11 от 28.05. 2010 г.
WORLD ECONOMY AND BUSINESS REVIEW
УЧЕБНОЕ ПОСОБИЕ
по дисциплине
«АНГЛИЙСКИЙ ЯЗЫК (ПРОФЕССИОНАЛЬНЫЙ)»
для студентов 3 курса очной формы обучения
Специальность: 080102.65 «Мировая экономика»
РОСТОВ-НА-ДОНУ
2010
СОСТАВИТЕЛИ:
Н.П. Ревякина, старший преподаватель кафедры иностранных языков
Б.Г. Солдатов, доцент кафедры иностранных языков, кандидат филологических наук, доцент
Н.В. Солдатова, доцент кафедры иностранных языков, кандидат филологических наук, доцент
ОТВЕТСТВЕННЫЙ ЗА ВЫПУСК:
О.Н. Бондина, заведующий кафедрой иностранных языков, кандидат филологических наук, доцент
РЕЦЕНЗЕНТЫ:
Э.Г. Куликова, доктор филологических наук, профессор кафедры теоретической и прикладной коммуникативистики юридического факультета Ростовского государственного экономического университета «РИНХ»;
И.Я. Недикова, старший преподаватель кафедры иностранных языков Ростовского филиала Российской таможенной академии.
Предлагаемое учебное пособие предназначено для студентов 3 курса экономического факультета (специальность «Мировая экономика»). Пособие имеет целью развитие навыков устной и письменной речи на базе аутентичных текстов по экономической тематике, развитие навыков реферирования и аннотирования, закрепление профессиональной терминологии и лексики профессионального характера. Формирование перечисленных навыков происходит на основе текстов из сети Интернет по экономической тематике. Тексты пособия содержат в равной степени информацию лингвистического, страноведческого и профессионального характера. Пособие рассчитано на 198 часов аудиторной и 192 часа самостоятельной работы.
РИО Ростовского филиала РТА, 2010
ОГЛАВЛЕНИЕ
Unit 1.2. The European Commission………………………………………….15.
Unit 1.3. The European Union and its Members………………………………22
Unit 1.4. The Relations between the European Union and Other Countries…57.
Unit 1.5. The Importance of EU Economic and Social Issues…………………88
Unit 1.6. The European Central Bank…………………………………………113.
Revision of chapter 1…………………………………………………………139
Test……………………………………………………………………………139.
Chapter 2. Management……………………………………………………143
Unit 2.1. Types of Businesses…………………………………………………143
Unit 2.2. The staff of a company ……………………………………………..155.
Revision of chapter 2………………………………………………………….168
Test…………………………………………………………………………….168.
Chapter 3. Marketing………………………………………………………….173
Unit 3.1. What is Marketing?................................................................................173.
Unit 3.2. Brands and Advertising………………………………………………183
Unit 3.3. Investment in Marketing……………………………………………...198
Revision of chapter 3…………………………………………………………..210
Test……………………………………………………………………………..210
Chapter 4. Business Correspondence………………………………………..215
Unit 4.1. Business Letters……………………………………………………….215
Unit 4.2.Contracts………………………………………………………………217
Revision of chapter 4………………………………………………………….248
Test……………………………………………………………………………..248
Business Vocabulary…………………………………………………………..252
Notes……………………………………………………………………………………………….298
Appendix 1……………………………………………………………………..308
Appendix 2……………………………………………………………………...321
Appendix 3……………………………………………………………………..330
Appendix 4……………………………………………………………………..343
Литература ……………………………………………………………………..346
Электронные источники ……………………………………………………..346
Заключение ……………………………………………………………………..347
В процессе современного образования необходимо обеспечить формирование комплексных учебных, информационных и коммуникативных умений, а также готовности к самостоятельной деятельности и решению проблем.
Учебная дисциплина «Английский язык (профессиональный)» относится к циклу практических дисциплин. Ее преподавание осуществляется во взаимосвязи со специальными дисциплинами экономического цикла. Дисциплина «Английский язык (профессиональный)» является одной из основных и изучается на 2-4 курсах очной формы обучения.
Практический курс по дисциплине предполагает совершенствование владения иностранным языком в профессиональной сфере, а также формирование иноязычной коммуникативной компетенции, позволяющей обучаемым использовать приобретенные навыки в профессиональной деятельности. Практическое владение навыками и умениями иноязычного общения подразумевает участие в беседах профессионального характера, выражение обширного реестра коммуникативных намерений (информирование, пояснение, уточнение, совет, аргументирование и др.); владение всеми видами монологического высказывания, в том числе таким видом, как презентация, понимание высказываний и сообщений профессионального характера; владение чтением оригинальной литературы разных функциональных стилей и жанров; умение вести деловую переписку; умение делать перевод информации профессионального характера с иностранного языка на русский и с русского языка на иностранный.
Цели, обозначенные в рабочей программе дисциплины «Английский язык (профессиональный)», достигаются в результате освоения и практического применения лексико-грамматических средств выражения различных грамматических категорий, формирования терминологического корпуса по профессиональным темам. Большое значение имеет овладение основами аннотирования и реферирования литературы по специальности. Данные виды деятельности предполагают широкое использование таких профессионально-значимых мыслительных операций, как: анализ, синтез, сопоставление, прогнозирование, выдвижение гипотез и их защита, оценка.
Для того чтобы сформировать у студентов умения анализировать профессиональную информацию и навыки успешной коммуникации, необходимы специально разработанные учебные пособия.
Предлагаемое учебное пособие предназначено для студентов 3 курса экономического факультета. Пособие имеет целью развитие навыков устной и письменной речи на базе аутентичных текстов по экономической тематике, развитие навыков реферирования и аннотирования, закрепление профессиональной терминологии и лексики профессионального характера.
Формирование перечисленных навыков происходит на основе текстов из сети Интернет по экономической тематике. Тексты пособия содержат в равной степени информацию лингвистического, страноведческого и профессионального характера.
Пособие состоит из 4 глав, каждая из которых представляет собой тематически завершенное целое. Все главы имеют единую структуру, что позволяет осуществлять поэтапное, целенаправленное формирование языковых, речевых, коммуникативных навыков и умений, а также закрепление грамматического материала, предусмотренного учебной программой. Каждая из глав делится на параграфы. После каждого текста дается система заданий, направленная на активное усвоение лексики, развитие речевых навыков и умений, формирование коммуникативной компетенции в профессиональном общении.
Предтекстовые задания направлены на моделирование фоновых знаний. Они готовят студентов к восприятию общего содержания текста.
В заданиях после текста (вопросы по содержанию текста, задания на установление соответствия, задания на выделение содержательной информации) предлагаются установки, которые необходимы для решения определенных познавательно-коммуникативных задач в процессе чтения.
Послетекстовые задания предназначены для проверки понимания прочитанного, степени сформированности навыков чтения и использования полученной информации для развития умений аргументировать и выражать собственное мнение.
Пособие рассчитано на 198 часов аудиторной и 192 часа самостоятельной работы.
Уровень сложности языкового материала и тематика пособия соответствуют требованиям, содержащимся в учебной программе по дисциплине «Английский язык (профессиональный)» для специальности «Мировая экономика».
Text
The History of the European Union
1. Suggest a purpose for reading the text.
2. What can the text be about? Give your own predictions.
3. Do you agree with the necessity to increase the number of the EU member-states?
The European Union (EU) is European supranational organization dedicated to increasing economic integration and strengthening cooperation among its member states. The European Union was established on November 1, 1993, when the Treaty on European Union, or Maastricht Treaty, was ratified by the 12 members of the European Community (EC)—Belgium, Denmark, France, Germany, Great Britain, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. The countries of the Benelux Economic Union—Belgium, the Netherlands, and Luxembourg, or Benelux—continue to act in some capacities as a single economic entity within the EU. Upon ratification of the treaty, the countries of the EC became members of the EU, and the EC became the policy-making body of the EU. In 1994 the EU admitted three more members—Austria, Finland, and Sweden. By 1997 more than a dozen countries had applied for EU membership, but the EU had admitted only three—Austria, Finland and Sweden. Austria applied for membership in 1989, Sweden in 1991, and Finland in 1992. The EU admitted all three in June 1994. The EU also offered membership to Norway at that time, but the people of Norway voted not to enter the EU. One reason Norway rejected membership was because of the strength of its own economy.
By 2007 the EU admitted such countries as Cyprus, Malta, Hungary, Poland, Romania, Slovakia, Latvia, Estonia, Lithuania, Bulgaria, and Czech Republic. At present the EU comprises 27 countries.
Under the Treaty on European Union, European citizenship was granted to citizens of each member state. Customs and immigration agreements were enhanced to allow European citizens greater freedom to live, work, and study in any of the member states, and border controls were relaxed. The EU also set a goal of establishing a single European currency by 1997; this date was later extended to 1999.
Prior to November 1993, the European Union was called the European Community. The EC was composed of three originally separate organizations: the European Coal and Steel Community (ECSC), created in 1951; and the European Economic Community (EEC, often referred to as the Common Market) and the European Atomic Energy Community (Euratom), both set up in 1957. The three institutions merged in 1967, creating the EC and establishing headquarters in Brussels, Belgium.
Decision-making in the EU is divided between supranational European institutions (the European Commission and the European Parliament, which are both administered by the EU) and governments of the member states, which send ministers to the Council of Ministers. The Court of Justice serves as the final arbiter in legal matters or disputes among EU institutions or between EU institutions and member states.
Text-study
I. Learn the following words
To be dedicated to – быть посвященным чему-л., быть предназначенным для чего-л.;
single economic entity – единое экономическое образование;
to enhance – углублять, совершенствовать;
to set a goal – ставить цель;
to merge – соединяться, сливаться;
decision-making – процесс принятия решений;
to admit – принимать.
II. Complete the sentences with suitable words from the box.
To be dedicated to smth; to reject membership; to act as a single economic entity; ratification of the treaty; to relax border controls; policy-making body; to apply for membership; legal matters.
1. The countries of the Benelux Economic Union continue … within the EU.
2. The European Union … increasing economic integration and strengthening cooperation among its member states.
3. Upon … , the countries of the EC became members of the EU, and the EC became the … of the EU.
4. The Court of Justice serves as the final arbiter in … .
5. Customs and immigration agreements were enhanced to allow European citizens greater freedom to live, work, and study in any of the member states, and … .
6. By 1997 more than a dozen countries had … .
7. Norway … because of the strength of its own economy.
III. Answer the following questions
1.When was the European Union established?
2.What was granted to citizens of each member-state under the Treaty on European Union?
3. How was the EU called before November 1993?
4. What is the mechanism of decision-making in the EU?
IV. Translate into English
1.ЕВРОПЕЙСКИЙ СОЮЗ– объединение европейских государств.
2.Основные цели Евросоюза: введение европейского гражданства; обеспечение свободы, безопасности и законности; содействие экономическому и социальному прогрессу; укрепление роли Европы в мире.
3.Официальными языками ЕС являются государственные языки стран-членов: английский, греческий, испанский (каталанский), итальянский, немецкий, нидерландский, португальский, финский, фламандский, французский, шведский.
3.ЕС имеет собственную официальную символику – флаг и гимн.
4.Хотя ЕС не имеет официальной столицы, большинство основных институтов ЕС расположены в Брюсселе (Бельгия).
5. 12 государств-членов ЕС (кроме Великобритании, Дании и Швеции), входящие в Экономический и валютный союз (ЭВС), помимо общих органов и законодательства Сообщества, имеют единую валюту – евро.
6.Отправной точкой процесса европейской интеграции принято считать декларацию министра иностранных дел Франции Робера Шумана от 9 мая 1950 г. В ней содержалось официальное предложение о создании Европейского объединения угля и стали (ЕОУС).
7.ЕOУС ставило своей целью создание общего рынка для модернизации и повышения эффективности производства в угольной и металлургических областях.
8.Интеграция этого важнейшего в то время сектора хозяйства открыла путь для интеграции и других отраслей экономики.
V. Fill in the blanks in the text with suitable prepositions.
European Commission
The European Commission serves as the executive branch of the EU. It makes policy proposals and presents them … the Council of Ministers. The European Commission also represents the EU … economic relations with other countries or international organizations. The administrative role of the commission is to manage EC funds and programs and to deliver aid to other countries. Members of the commission are appointed … agreement … the member governments.
Council of Ministers
The Council of Ministers, the main law-making body of the EU, is composed of a single representative … each of the member states. The council cannot draft legislation, but it can accept, reject, or request proposals from the commission. The council is aided … the Committee … Permanent Representatives, which is comprised of the permanent representatives (or ambassadors) … each member state.
VI. Insert the articles where necessary.
Summit meetings among … top leaders of the member states are called at least once every six months by … country holding the presidency of the Council of Ministers. This meeting of … heads of state and government is called the European Council. The summits were instituted on … regular basis in 1975. The European Council became … official part of the EC structure in 1987.
… European Parliament is … only body of the EU whose members are directly elected by … citizens of its member states. The main body meets in Strasbourg, France, though most of its committee work is done in Brussels and … secretariat is based in Luxembourg. Individual committees of … European Parliament review legislation proposed by … European Commission. The parliament may veto … proposal after it reaches the Council of Ministers if it disagrees with … council’s position.
VII. Translate the following text from English into Russian in writing.
Committees
The Economic and Social Committee is one of the most important of the EU bodies. Its 189 members are appointed to four-year terms by the Council of Ministers to represent employer and employee groups, as well as other interest groups. The committee has a strictly advisory role, but the Council of Ministers and the European Commission are obligated to consult the committee on many legislative issues. Another important group is the Committee of the Regions, created by the Treaty on European Union. The committee has 189 members that are allocated based on the population of each country. It has no legislative power, but must be consulted on matters relating to certain economic and social issues.
Court of Justice
The final arbiter in all matters of EU law is the Court of Justice. The court is composed of 13 judges who are appointed to six-year terms, with at least one judge from each member country. The court deals with disputes between member governments and EU institutions and among EU institutions, and with appeals against EC rulings or decisions. Courts within the member states often refer cases involving an unclear point of EU law to the Court of Justice. The court makes binding rulings on EU law to help guide the rulings of national courts. The rulings of the Court of Justice set legal precedents and become part of the legal framework of each member state.
VIII. Explain the italicized grammar constructions in the following sentences.
1. Any talks on a new bilateral trade agreement between the US and the European Union must "take into account" sensitive areas of agricultural sub sidies and audio-visual trade, a senior US official said yesterday.
2. But the undersecretary suggested it might not be possible to exclude agri culture and audio-visual services from negotiations, as the European Com mission proposes.
3. The American State Secretary would undertake it in a European rather than a local venue.
4. The Israeli leader needing to demonstrate transigence, suggested London as the meeting place.
5. But if a date can be arranged to negotiate final settlement, the London Round will be memorable.
IX. Give Russian equivalents for the following words and phrases used in the text:
to make policy proposals; to manage funds and programs; summit meeting; top leaders; to gain new influence; to veto a proposal; a strictly advisory role; to set legal precedents; to become part of the legal framework.
X. Render the text “The European Union” using the plan.
Plan for rendering the text
3.Central idea (State it briefly and in your own words).
4. Summary. (Be sure to make your summary not more than a third or a half as long as the original).
XI. Work as one group. Point out the main periods in the development of the EU.
XII. Study the article in several groups and try to find arguments to support the following points of view:
Unit 1.2. The European Commission
Text
The European Commission and Its Authorities
The European Commission serves as the executive branch of the EU. It makes policy proposals and presents them to the Council of Ministers. The European Commission also represents the EU in economic relations with other countries or international organizations. The administrative role of the commission is to manage EC funds and programs and to deliver aid to other countries. Members of the commission are appointed by agreement between the member governments.
European Commission staff have an authority to go on strike to protest at plans to end job security when union repre sentatives and Commission officials reach an agree ment at a "conciliation" meeting.
Six of the 10 unions representing Commission employees can protest at plans for the work force. The reforms of the European Commission are part of a wider effort by the representatives of different countries in charge of budget, personnel and administration to modernise bureaucracy.
EU institutions are facing increasing pressure, mainly from the Nordic member states, to improve efficiency and adopt greater transparency and accountability.
The tension increased earlier this month when the unions called for a strike shortly after the distribution of an internal document advocating reform. The document, entitled “Tomorrows Commission", questioned existing practices and warned of inevitable pressures for efficiency gains. Many economists think that the Commission has a heavy mana gerial hierarchy, recruitment that sometimes depends too much on political considerations and less than perfect management of finances and staff.
Predicting an end to steadily increasing Union budgets, the secretary general called for clearer priorities and more ef fective management. He suggested efficiency could be improved by the introduction of both renewable, fixed-term contracts for senior employees and a system of rewards and penalties. The unions feel the proposals threaten job security for European civil servants, who are all practically guaranteed employment for life and substantial benefits. Officials estimate that the 10 un ions represent between 8,000 and 10,000 of the commission's 17,000 employees. The documents, which invite comments from employees, are part of the preparations for a debate on modernising the Commission.
Text-study
I. Learn the following words.
Job security — гарантия занятости в конкретной организации.
European Commission — Европейская комиссия, исполнительный орган.
Union = trade union — профсоюз, профсоюзная организация.
Conciliation meeting— "примирительная" встреча, встреча для со гласования позиций.
Economic and monetary union, Emu — экономический и валютный союз.
Nordic states — скандинавские страны.
II. Answer the following questions.
1. What authorities of the European Commission do you know?
2. How are the members of the commission appointed?
3. What do you know about the reforms of the European Commission?
4. What pressure are EU institutions facing at the moment?
5. What do many economists think of the European Commission?
6. How could management efficiency be improved?
III. Complete the sentences with suitable words from the box.
workforce, transpar ency, accountability, to advocate reforms, recruitment, fixed-term contract, penalty, inevitable pressure
1. He suggested efficiency could be improved by the introduction of both renewable, … for senior employees and a system of rewards and … .
2. The document, entitled “Tomorrows Commission", questioned existing practices and warned of … for efficiency gains.
3. Six of the 10 unions representing Commission employees can protest at plans for the … .
4. EU institutions are facing increasing pressure, mainly from the Nordic member states, to improve efficiency and adopt greater … and … .
5. The tension increased earlier this month when the unions called for a strike shortly after the distribution of an internal document … .
6. Many economists think that the Commission has a heavy mana gerial hierarchy, … that sometimes depends too much on political considerations and less than perfect management of finances and staff.
IV. Fill in the blanks with articles if needed.
... six of ... 10 unions representing ... Commission employees are pro testing at ... plans to end ...job security for ... 17,000 workforce.
... tension increased earlier this month when ... unions called for ... strike shortly after ... distribution of ... internal document advocating ...reform. ... document, entitled "Tomorrow's Commission", questioned ... existing practices and warned of... inevitable pressures for... efficiency gains.
Predicting ... end to steadily increasing Union budgets, ... secre tary general called for clearer priorities and ... more effective management.
V. Fill in the blanks with prepositions if needed.
European Commission staff are set to go ... strike next week to protest ... plans to end job security after union representatives and Commission of ficials failed to reach an agreement... a "conciliation" meeting.
The unions feel the proposals threaten job security ... European civil ser vants, who are all practically guaranteed employment ... life and substantial benefits.
VI. Explain the italicized grammar constructions in the following sentences.
The 24-hour strike, scheduled for the next week, could paralyse the European Union's executive body at an embarrassing time, just two days before the summit which will decide the founder members of economic and monetary union.
He suggested efficiency could be improved by the introduction of both renewable, fixed-term contracts for senior employees and a "system of re wards and penalties".
The Finnish commissioner failed to reach an agreement with the unions that would suspend the strike.
VII. Read and translate the following text into Russian in writing.
The History and the Future of the Euro
Today, it is easy to fееl lost when confronted by the future, The financial landscape is shifting before our very eyes. Moving into new territory, as we are with the Euro, is fraught with uncertainty. What you need is a guide who's been this way before.
Founded 125 years ago simultaneously in 4 European countries, Paribas was the first bank with a truly European philosophy. Today, with an organi sation based on banking activities and industrial sectors, no other bank can equal its experience in crossing financial frontiers.
In the 1997 Paribas won for Eurobond of the year and was named Ecu/Euro Bond House of the year. As we get closer to the the period after 2010, the experience of Paribas as the lead Ecu bookrunner since 1981 puts the bank in a unique position of authority in all questions relating to the Euro. And it is, in fact, only by the application of experience that we can solve the problem of the crossroads with the fallen signpost.
How do you decide which way to go? You leverage your own recent ex perience. Since you do know where you've come from, you simply raise the signpost, point the relevant arrow in the direction from which you have come — and the way ahead is clear.
VIII. Translate into English.
1. Планы по отмене гарантий за нятости сотрудников комиссии являются частью предпринимаемых в последнее время попыток по модернизации административно-управленческого аппарата Евросоюза.
2. Эти меры принимаются в от вет на растущие требования, в частности со стороны скандинавских стран, о необходимости повышения эффективности работы персонала посредством более широкой гласности и отчетно сти.
3. В своем докладе генеральный секретарь Евро союза отмечает, что в комиссии существует громоздкая управленческая иерархия, использующая несовершенные методы по урегу лированию финансовых и кадровых вопросов.
4. Решения о приеме на работу делаются большей частью не на профессиональной основе, а, скорее исходя из политических соображений.
5. В Европейскую комиссию поступают предложения о введении возобновляемых контрактов с указанием сро ка их действия при найме сотрудников на руководящие должности, а также о разработке системы поощрений и взысканий.
6. В настоящее время сотрудники международных евро пейских организаций имеют практически пожизненную гарантирован ную работу (занятость) и право на получение существенных льгот.
7. В дальнейшем будут обсуждаться вопросы о совершенствовании управленческих и административных аспектов работы комиссии.
IX. Meet as one group. One of you should lead the meeting. Decide how the problem of effective EU budget management can be minimized.
X. Study the article in several groups. Choose one of the situations and brainstorm the points.
1. EU institutions should improve efficiency and adopt greater transparency and ac countability.
2. The European Commission has recruitment that sometimes depends too much on political considerations.
Text 1
The European Union and Britain
Britain will press its 14 European Union partners to agree new proposals to coordinate their planning policies.
It will table a document which acknowledges that, as EU states move towards closer economic and political union, the way each uses land and controls development affects the others.
Pressures are already being felt in border areas. A new bridge between Denmark and Sweden, for instance, has altered shopping patterns: Denmark restricts out-of-town shopping, so retailers have set up shop on the Swedish side.
In addition, member states face common issues in areas such as the Alps, the Danube, and the Baltic and Mediterranean seas.
The UK planning minister will present the first complete draft of the European Spatial Development Perspective to EU regional policy ministers meeting in Glasgow. It proposes common approaches to housing, transport, urban renewal, rural issues, economic development, water supply and telecommunications.
The policy will affect UK debates such as that over building homes on greenfield sites. Other states face similar pressures from the explosive growth of single-person households and urban sprawl.
The document is the culmination of a five-year attempt to reach agreement on planning issues and is a key priority for Britain's presidency of the EU.
Some members have been wary of extending the EU's reach into national governments' territory.
The document will be non-binding, but may eventually lead to pressure to arrange binding agreements on issues such as cross-border consultation. The UK sees itself as an "honest broker" because it has no land borders apart from that with Ireland. The UK planning minister has held meetings with doubters such as Spain, which devolves planning to regional governments, and Portugal. Final agreement is scheduled for early next year.
The document pursues EU objectives of sustainable development, competitiveness and social cohesion. It tries to ensure peripheral areas do not lose out when transport routes and telecommunications networks are established. It encourages towns and cities to co-operate with one another, to maximise their strengths and create regional transport networks.
It proposes ways to reduce urban sprawl and promote mixed-use developments, avoiding the growing segregation be tween rich and poor which creates social exclusion. It supports diversification of struggling rural economies, often by joining forces with local towns.
The document charts the growth of "gateway" cities to the EU, such as Lisbon, and "world cities" such as London and Paris. Lille, it says, is emerging as a "major node" in the deve lopment corridor between the UK and continental Europe, while Barcelona is becoming a metropolis for southern Europe.
Development, it says, is increasingly taking place along "Euro-corridors" such as that from Glasgow through London to the Transmanche area of northern France and Belgium, and that from Rotterdam via the Ruhr, Rhine, Main and Stuttgart to Munich.
Text-study
I. Learn the following words.
Mixed-use development — смешанная городская застройка; застройка,
исключающая отдельное строительство для жителей с высоким
и низким уровнем дохода;
gateway cities — города, служащие воротами для въезда на территорию стран-членов Евросоюза;
major node — крупный транспортный узел;
Transmanche area — европейская территория, примыкающая к Ла-Маншу.
II. Answer the following questions.
1. What will Britain press the other EU countries to agree upon?
2. What document will be tabled at the forthcoming negotiations?
3. What pressures are already being felt in border areas of Denmark and Sweden?
4. What does the first complete draft or the European Spatial Development Perspective propose?
5. How can this new document be characterized?
6. Will the document be binding or non-binding?
7. Why does the UK see itself as an “honest broker”?
8. What EU objectives does the new document pursue?
9. Does the European Spatial Development Perspective support diversification of struggling rural economies?
10. How does the document chart the growth of "gateway" cities to the EU?
III. Complete the sentences with suitable words from the box.
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cross-border, to table a document, retailer, spatial, greenfield site, urban sprawl, non-binding document, binding agreement, segregation, struggling economy, to chart, metropolis |
1. It will … which acknowledges that, as EU states move towards closer economic and political union, the way each uses land and controls development affects the others.
2. This agreement will be a … , but may eventually lead to pressure to arrange … on issues such as … consultation.
3. The policy will affect UK debates such as that over building homes on … .
4. Other states face similar pressures from the explosive growth of single-person households and ….
5. The document proposes ways to reduce urban sprawl and promote mixed-use developments, avoiding the growing … be tween rich and poor which creates social exclusion.
6. The agreement supports diversification of… , often by joining forces with local towns.
7. The document … the growth of "gateway" cities to the EU, such as Lisbon, and "world cities" such as London and Paris.
8. Barcelona is becoming a … for southern Europe.
9. Denmark restricts out-of-town shopping, so … have set up shop on the Swedish side.
10. The UK planning minister, will present the first complete draft of the European … Development Perspective to EU regional policy ministers meeting in Glasgow.
IV. Fill in the blanks with articles if needed.
It will table ... document which acknowledges that, as ... EU states move towards ... closer economic and political union, ... way each uses ... land and controls ... development affects ... others.
In ... addition, ... member states face ... common issues in ... areas such as ... Alps, ... Danube, and ... Baltic and ... Mediterranean seas.
It proposes ... common approaches to ... housing, ... transport, ... urban renewal, ... rural issues, ... economic development, ... water supply and ... telecommunications.
... UK sees itself as ... "honest broker" because it has no ... land borders apart from that with ... Ireland.
... document pursues ... EU objectives of ... sustainable development, ... competitiveness and ... social cohesion.
It proposes ... ways to reduce ... urban sprawl and promote ... mixed-use developments, avoiding ... growing segregation between rich and poor which creates ... social exclusion.
V. Fill in the blanks with suitable prepositions.
The UK planning minister, will present ... the first complete draft ... the European Spatial Development Perspective ... EU regional policy ministers ... meeting ... Glasgow.
The document is the culmination ... a five-year attempt ... to reach agreement ... planning issues and is a key priority ... Britain's presidency ... the EU.
It supports diversification ... struggling rural economies, often ... joining forces ... local towns.
VI. Explain the italicized grammar constructions in the following sentences.
1. Britain will press its 14 European Union partners to agree new proposals
to co-ordinate their planning policies.
2. Pressures are already being felt in border areas.
3. Greek leaders, backed by the majority of public opinion in polls, say they would not consider reunification.
4. The Italian Minister said that such an exhibition proved the revival of the economy and stated that the contract would not be the last one.
5. The government was confident it would find buyers at the current price.
VII. Translate the text from English into Russian in writing.
The policy will affect UK debates such as that over building homes on greenfield sites.
The document will be non-binding, but may eventually lead to pressure to arrange binding agreements on issues such as cross-border consultation.
It tries to ensure peripheral areas do not lose out when transport routes and telecommunications networks are established. It encourages towns and cities to co-operate with one another, to maximise their strengths and create regional transport networks.
Development, it says, is increasingly taking place along "Euro-corridors" such as that from Glasgow through London to the Transmanche area of northern France and Belgium, and that from Rotterdam via the Ruhr, Rhine, Main and Stuttgart to Munich.
VIII. Read and translate orally the following text.
Unions call for policy changes
Regulating world markets
An independent international commission should be established by lead ing industrialised nations to consider how an effective regulatory framework could be created for the running of international financial markets. This was the main proposal presented to the UK prime minister, who will head next month's G8 jobs summit in Birmingham, yesterday by trade union leaders from the world's leading economies under the umbrella of the trade union arm of the Organisation for Economic Co-operation and Development.
The union leaders want the proposed commission — based on the lines of the body that the former German chancellor, chaired on the "north-south di vide" 20 years ago — to report "rapidly" on the policy changes they believe are necessary to avert future financial crises such as those in Asia and Mexico.
These would include redefining the role of international financial institu tions such as the Bank for International Settlements, the IMF and the World Bank so that "structural adjustment programmes promote good governance and respect for human rights, increased employment and poverty reduction and not austerity and blind deregulation".
IX. Translate into English.
1.Англия намерена оказать давление на своих партнеров по Евро пейскому союзу в целях выработки совместной политики в вопросах пользования землей в пограничных районах.
2.После строительства нового моста, связывающего Данию и Швецию, розничные торговцы из-за имеющихся в Дании ограниче ний на торговлю в сельской местности предпочитают открывать мага зины на шведской стороне. 3. Положения, регулирующие землепользование, будут включены в повестку дня по инициативе Ве ликобритании на предстоящей встрече министров по региональной по литике стран-членов Европейского союза.
4. Предусматривается разра ботка общих подходов к вопросам, касающимся жилья, транспорта, благоустройства городских и сельских районов, водоснабжения и средств связи.
5.Некоторые члены Европейского союза высказывают опасение относительно расширения влияния Европейского союза в пределах национальных территорий.
6. Разрабатываемый документ бу дет иметь рекомендательных характер, но его принятие может привес ти к разработке соглашений, имеющих обязательную силу.
7. Предла гаемые меры позволят избежать разделения между богатыми и бедны ми, ведущего к возникновению социальной напряженности, и содейст вовать диверсификации экономики.
8. Документ предусматривает дальней шее расширение мировых центров, таких как Лондон и Париж, увели чение влияния городов, представляющих собой "ворота" Англии и кон тинентальной Европы, например, Лиссабона.
X. Study the article in several groups. Choose one of the situations and brainstorm the points.
1. Denmark restricts out-of-town shopping, so retailers have set up shop on the Swedish side.
2. States face similar pressures from the explosive growth of single-person households and urban sprawl.
3. Some members have been wary of extending the EU's reach into national governments' territory.
4. The UK planning minister has held meetings with doubters such as Spain and Portugal.
5. The document charts the growth of "gateway" cities to the EU, such as Lisbon, and "world cities" such as London and Paris.
XI. Meet as one group. One of you should lead the meeting. Decide how the problems of Gateway cities can be minimized.
Text 2
Sustainable Convergence or Resistance?
The government says that Britain cannot consider joining the European single currency until it has passed five economic tests. But have the tests already been met?
It is an economic argument set to a transparently political timetable. The government has long insisted that it regards the question of whether Britain should join the single European currency as above all an economic issue. Gordon Brown has set five economic tests to gauge whether Britain is ready to take the plunge. But he also insists that he will not decide whether Britain has met these tests until after the next election.
The reasoning is plain. Polls show that a large majority of British people do not want to join the euro. The Labour Party is desperate for the single currency not to become an issue in the next election. So Mr. Brown is trying to kick the issue into touch, until the election is safely won. In his Mansion House speech, which the chancellor was making as The Economist went to press, he was expected to stick firmly to this line.
Increasingly, however, the government's strategy is under strain. It is hard to imagine that the Labour Party will get through an election campaign, without revealing whether it intends to call a referendum on the abolition of the national currency shortly afterwards. Some of Mr. Brown's cabinet colleagues in particular Robin Cook, Stephen Byers and Peter Mandelson - clearly want the government to take a more robustly pro-euro line now.
The past fortnight has seen a steady stream of interventions, from the pro- and anti-euro camps, as they try to force the chancellor off the fence. This week, the Britain in Europe campaign marshalled a posse of international economists to present the case for joining the single currency. The anti-euro Business for Sterling pressure group rustled up former Treasury "wise men" (economic advisers) to warn that entry could imperil hard-won economic stability.
So how far is Britain to meeting the five tests Mr. Brown first set out in October 1997? The first and most important is whether the economy can demonstrate sustainable convergence with the euro zone. Next, the Treasury wants to be sure that the economy is flexible enough to cope with economic shocks once interest rates are set in Frankfurt. It will also assess the impact of joining the euro on investment, the City and employment. Recent debate has focused on three of the tests: convergence, investment and the City.
When he first posed his tests, he concluded that the economic cycles of Britain and the euro zone were too divergent to allow entry into monetary union in this parliament. However, this week's figures for consumer price inflation were ammunition for those arguing that the economy is converging on the euro area. On the index of prices used within the European Union to measure inflation, Britain's annual rate nudged down in May to a new low of 0.5%. Last October, British inflation fell below the euro zone's and since the start of the year, it has been the lowest of any EU country.
These latest inflation figures appeared to validate the view of the Organization for Economic Co-operation and Development, that Britain is moving closer to the economic centre of gravity of the euro area than some of its current members. Britain's short-term interest rates, too, are now much nearer to those in the euro area than was the case when Mr. Brown ruled out early entry. Then there was a differential of almost 4 percentage points between official rates in Britain and Germany. Now that has narrowed to less than 2 percentage points.
That differential could close further if the Bank of England continues to hold interest rates at 6% while the European Central Bank further tightens monetary policy. The pressure for higher rates in Britain eased this week thanks to signs of pay moderation in the labour market. Average earnings growth in the latest three months fell from an annual rate of 5.7% to 5.1%, the biggest slowdown since 1993 - and approaching the 4.5% rate the Bank believes is compatible with meeting its inflation target.
Text-study
gauge - мера, масштаб, размер, калибр
plunge - прыжок, ныряние, погружение
robust - крепкий, здоровый; сильный; твёрдый
marshal упорядочивать
divergent - расходящийся
compatible - (compatible with) совместимый, сочетаемый
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sustainable convergence with the euro zone; economic shocks; economic cycles; inflation target; to pave the way; exchange-rate risk |
1. How many tests does Britain have to meet to join the European single currency?
2. How many of them are considered in the text?
3. What are the convergence criteria a country must meet to enter the euro zone?
4. What factor could complicate Britain's joining the euro?
5. How can the exchange-rate uncertainty hit inward investment from foreign companies?
6. Will the City's competitiveness be damaged by Britain’s joining the euro?
7.Why do you think the author says that Britain's joining the euro is largely a political issue?
an economic issue; a pro-euro line; entry into monetary union; consumer price inflation; the index of prices used within the European Union; short-term interest rates; a differential; pay moderation in the labour market; the output gap; fluctuations in the value of the pound;
a source of instability; exchange-rate uncertainty; inward investment;
the City's competitiveness; a major recession in either Britain or Europe; an entry rate into the euro.
The Treasury insists that convergence must be "sustainable and durable". Sceptics … euro membership compare the recent alignment to ships passing in the night. In evidence to the Treasury select committee this week, Roger Bootle, an economist, described convergence as "superficial" and asked whether British inflation would be the lowest in the EU if the base rate were … 4.25%, as in the euro zone. The dangers … Britain … adopting a "one size fits all" monetary policy were highlighted this week as Irish inflation rose further … 5%.
The "killer fact" in the convergence story remains the current strength and past volatility … the pound. This has both stoked up the campaign … entry - and made it more difficult to achieve without a clear lead from the government. A central argument … this week's broadside … Britain in Europe, "The case for the euro", is that Britain will suffer increasingly … fluctuations in the value … the pound. One of the authors, Willem Buiter, a former member of the Bank of England Monetary Policy Committee, said that the pound is a source of instability rather than a buffer against it: "sterling is a rabbit squeezed between two elephants," the dollar and the euro.
Exchange-rate uncertainty would hit inward investment from foreign companies which can now invest without exchange-rate risk in … euro zone. So far the evidence is mixed. … speech this week from the governor of … Bank of England robustly defended the City's performance to date outside the euro zone. "There were those who argued that … City would suffer if … UK failed to join from the outset," said Eddie George: "That clearly has not so far happened - quite … reverse." He saw no reason to suppose that Britain's position outside … euro area would detract from the City's competitiveness in … future.
… survey of foreign banks by … London Chamber of Commerce and Industry backed up … governor's views on … current impact of the euro. This found that British participation in the euro ranked 21st out of 23 factors influencing location. However, a third said Britain would have to join the euro to secure London's long-term future as … international financial centre.
1. The debate about the five economic tests increasingly suggests that they will be met when the chancellor decides that it is politically convenient for them to be met.
2. It is not that the tests are meaningless or unimportant. But they are vague. In the absence of a major recession in either Britain or Europe, it is likely that evidence can be marshaled on either side to suit the prejudices of whoever is making the case.
3. If Britain is to enter monetary union, it will have to do more than pass Gordon Brown's five tests.
4.The government will have to pave the way for entry by negotiating with its European partners over an acceptable exchange rate. It will have to influence expectations in the foreign exchange markets about an entry rate into the euro.
5. In this sense, the economy will only pass the tests if the government wills that result. And even if the economic tests are met, the government will have to win a referendum. It is highly unlikely that the Yes campaign will be able to avoid dealing with the political implications of euro membership. The decision whether or not to join the euro is ultimately political - whatever Mr. Brown would have us believe.
to join the single European currency; to take the plunge; to set five economic tests; to pass the economic tests; to meet the economic tests; to reveal smth; to call a referendum on the abolition of the national currency; to present the case for smth; to imperil hard-won economic stability; to cope with economic shocks; to focus on smth; to validate smth; to rule out early entry; to tighten monetary policy; to secure London’s long-term future; to negotiate over an acceptable exchange-rate.
Text 3
Advantages of Spanish Membership in the EU
Pre-reading tasks.
1. What do you know about the present position of Spain in the European Union?
2. What are the peculiarities of Spanish economy?
Improved roads and the high-speed railways provide the most obvious sign of the benefits Spain has derived from the inflow of funds in the years of EU membership.
Spain currently leads the EU's list of net recipients, and by all accounts has made good use of the money. For Spanish in dustry and agriculture the impact of membership has been so deep and diverse as to make it hard to draw up a balance of gains and losses. Spain's exports to EU partners, which in the early years of membership ran at around 75 per cent of what it imported from them, have progressively been gaining ground, to over 90 per cent last year.
However, the gap in income levels between Spain and the rest of the EU has narrowed only slowly — from about 70 per cent of the average when it joined in 1986 to just under 78 per cent. The country still needs heavy spending on infrastruc ture to enable it to compete in the single currency zone, and the southern regions of Andalucia and Extremadura make up the EU's biggest unemployment blackspot, with an official rate close to 30 per cent. Now, as the EU has incorporated much poorer countries in central Europe, the concept of soli darity which has underpinned Spain's early period of member ship is set for radical change.
Spain’s worries focus on the treatment of Mediterranean agricultural products, tighter condi tions for aid, and the overall budget ceiling of 1.27 per cent of gross domestic product.
The first crunch in the planned farm reforms is an interim plan for the olive sector. Olive oil is a Mediterranean product par excellence; Spain is the world's biggest producer of it; and it is the single sector that has gained most from membership so far.
From a European Commission viewpoint, a complex set of aids including payment according to output, is too complex, invites fraud and encourages growers to keep producing more and more.
About 140,000 people are reckoned to work at least part of the year in the business in Andalucia alone, and for many areas olives are the only viable crop.
A two-year delay has been granted before the adoption of a definitive system, with a temporary arrangement introducing na tional quotas for the first time among the five EU producers — Spain, Italy, Greece, Portugal and France — instead of an over all maximum.
After vigorously rejecting German arguments that countries in the euro zone should no longer be entitled to special aid, Spain is fighting proposals to peg the funds to strict fulfillment of economic "stability plan" objectives.
Making clear its firm political commitment to the EU's east wards enlargement, the Spanish government has taken the position that it is ready to "pay its share". Officials say they accept that Spain's net receipts will fall, but argue that this should come from higher Spanish contributions rather than reduced entitlements.
Text-study
Net — нетто, чистый доход (без или после вычетов); положительное сальдо; net receipt —чистые поступления от членства в Евросоюзе в виде дотаций или субсидий после вычета расходов, связанных с членством в ЕЭС.
То keep one's head above water —не утонуть, выплыть.
Par excellence— преимущественно, главным образом, в основном.
То keep (on) producing— не останавливать/не прекращать производство.
Aid per tree—помощь, размеры которой обусловлены числом плодоносящих оливковых деревьев.
II. Answer the following questions.
1. What positive changes has Spain experienced since its entrance the European Union?
2. What can you say about the influence of membership on Spanish industry and agriculture?
3. What economic problems still exist in Spain?
4. What is Spain worried about?
5. What is the most famous Spanish product?
6. What is the significance of olive oil for Spain?
7. What position has Spanish government taken?
III. Complete the sentences with suitable words from the box.
gap in income levels, inflow of funds, heavy spending, to introduce national quotas, to underpin, budget ceiling, gross domestic product, interim plan, producer, viable, entitlement
1. Improved roads and the high-speed railways provide the most obvious sign of the benefits Spain has derived from the …in the years of EU membership.
2. The country still needs … on infrastruc ture to enable it to compete in the single currency zone.
3. Now, as the EU has incorporated much poorer countries in central Europe, the concept of soli darity which has … Spain's early period of member ship is set for radical change.
4. Spain’s worries focus on the treatment of Mediterranean agricultural products, tighter condi tions for aid, and the overall … of 1.27 per cent of … .
5. The first crunch in the planned farm reforms is an … for the olive sector.
6. Spain is the world's biggest … of olive oil.
7. For many areas olives are the only … crop.
8. Officials say they accept that Spain's net receipts will fall, but argue that this should come from higher Spanish contributions rather than re duced … .
9. However, the … between Spain and the rest of the EU has narrowed only slowly.
10. A two-year delay has been granted before the adoption of a definitive system, with a temporary arrangement … .
IV. Fill in the blanks with articles if needed.
However, ... - gap in ... income levels between ... Spain and ... rest of ... EU has narrowed only slowly — from about 70 per cent of ... average when it joined in 1986 to just under 78 percent.
Now, аз ... EU prepares to incorporate much poorer countries in ... cen tral Europe, ... concept of ... solidarity which has underpinned ... Spam's early period of... membership is set for ... radical change.
... first crunch in ... planned farm reforms is ... interim plan for ... olive sector, due to come into ... force in ... November, issue has ... big social dimension.
two-year delay has been granted before ... adoption of ... definitive system, with ... temporary arrangement introducing ... national quotas for ... first time among ... five EU producers — ... Spain, ... Italy, .., Greece, ... Portugal and ... France — instead of... overall maximum.
Us entitlement to ... top category of ... regional funds, which currently covers most of ... country, stands to be reduced by ... fifth as ... Valencia region and possibly ... northern region of ... Cantabria move above ... qualifying threshold of 75 per cent of... average income.
Spain,... dominant beneficiary, has received EU 593 bn from ... fund so far.
V. Fill in the blanks with prepositions if needed.
They also provide the most obvious sign ... the benefits Spain has de rived ... the inflow ... funds ... the years ... EU membership.
The country still needs heavy spending ... infrastructure to enable it to compete ... the single currency zone, and the southern regions of Andalucia and Extremadura make up the EU's biggest unemployment blackspot, ... an official rate close ... 30 per cent.
Spain's worries focus ... the treatment ... Mediterranean agricultural products, tighter conditions ... aid, and the overall budget ceiling ... 1.27 per cent ... gross domestic product, which it argues should not be set ... stone.
But the idea ... switching ... a system ... aid per tree is anathema ... Spanish producers, whose arguments are backed ... regional and central government authorities.
About 140,000 people are reckoned to work ... least part ... the year ... the business ... Andalucia alone, and ... many areas olives are the only vi able crop.
VI. Explain the italicized grammar constructions in the following sentences.
People will remember driving around Spain before it joined the European Union, if for no other reason than the time it took.
Spain's exports to EU partners, which in the early years of membership ran at around 75 per cent of what it imported from them, have progressively been gaining ground, to over 90 per cent last year.
"I see Spain as being capable of fighting very hard for some its national interests," commented one veteran EU diplomat.
They say the existing system has enabled them to modernise and improve quality, and that huge swathes of olive groves would simply be abandoned production aid were dropped.
After vigorously rejecting German arguments that countries in the euro zone should no longer be entitled to special aid, Spain is fighting proposals to peg the funds to strict fulfilment of economic "stability plan" objectives.
Officials say they accept that Spain's net receipts will fall, but argue that this should come from higher Spanish contributions rather than reduced en titlements.
With that out of the way, they believe a deal could be made next spring.
VII. Translate from English into Russian in writing.
1. Spain currently leads the EU's list of net recipients, and by all accounts has made good use of the money.
2. Olive oil is a Mediterranean product par excellence; Spain is the world's biggest producer of it; and it is the single sector that has gained most from membership so far.
3. From a European Commission viewpoint, the current leans of support, a complex set of aids including payment according to output, is too complex, invites fraud and encourages growers to keep producing more and more.
4. But the question for Spain is not so much whether the funds will run out, as when.
5. Now, dramatically improved roads and the high-speed railway connecting Madrid with the south have broken down the physical barriers isolating whole regions.
6. For Spanish industry and agriculture the impact of membership has been so deep and diverse as to make it hard to draw up a balance of gains and losses, but the country has kept its head above water better than many feared in the run-up to accession.
7. Spain's receipts of structural grants are also in question.
8. Making clear its firm political commitment to the EU's eastwards en largement, the Spanish government has taken the position that it is ready to "pay its share" but not foot the bill by giving up its own claims to financial support.
VIII. Comment on the sentences.
Now, dramatically improved roads and the high-speed railway connecting Madrid with the south have broken down the physical barriers isolating whole regions.
For Spanish industry and agriculture the impact of membership has been so deep and diverse as to make it hard to draw up a balance of gains and losses, but the country has kept its head above water better than many feared in the run-up to accession.
The prospect of fundamental change to the aid regime has made olive oil into a Spanish national cause since the first panic was aroused.
Making clear its firm political commitment to the EU’s eastwards enlargement, the Spanish government has taken the position that it is ready to pay its share but not foot the bill by giving up its own claims to financial support.
IX. Translate into English.
1. Наряду с резким улучшением качества шоссейных дорог и строительством скоростных железных дорог, соединяющих Мадрид с южными районами страны, есть ряд других признаков, говорящих о том, что Испания в полной мере воспользовалась притоком средств после ее вступления в Европейский союз.
2. В настоящее время Испания возглавляет список стран-получателей помощи от Европейского союза.
3. Экспорт товаров Испании в страны Евросоюза, который в первые годы составлял 75% от объема импорта, постепенно возрастал и в прошлом году достиг 90%.
4. Разрыв в уровне жизни между Испанией и остальными странами Евросоюза сокращается медленно.
5. Предстоят большие капиталовложения в инфраструктуру, чтобы сделать ее конкурентоспособной в зоне единой валюты.
6. Необходимо решить немало спорных проблем в связи с намечаемыми реформами политики Евросоюза в отношении сельскохозяйственной и региональной помощи.
7. Первым испытанием при осуществлении планируемых реформ будет реализация плана по производству оливкового масла, который вступает в силу в ноябре.
8. Испания является крупнейшим производителем оливкового масла, и до сих пор наибольшая часть помощи со стороны Евросоюза поступала для развития именно этой отрасли промышленности.
9. По мнению испанцев, существующая система помощи способствовала проведению модернизации отрасли и улучшению качества выпускаемого продукта.
10. Этот вопрос имеет значительные социальные последствия. В производстве оливкового масла в одной Андалусии занято не менее 140 тысяч человек, а в целом реде районов это единственная сельскохозяйственная культура.
X. Render the text “Advantages of Spanish Membership in the EU”
using the plan.
Plan for rendering the text
3.Central idea (State it briefly and in your own words).
4. Summary. (Be sure to make your summary not more than a third or a half as long as the original).
XI. Meet as one group. One of you should lead the meeting. Discuss the relationships of the EU with other countries using the following words and word combinations: the most obvious sign of the benefits, the inflow of funds, the impact of membership, a balance of gains and losses, the gap in income levels, to compete in the single currency zone, unemployment blackspot, a complex set of aids, to take the position.
Text 3
The Netherlands in the European Union
Pre-reading task.
Before you read the article say what you know about the following:
1.The Dutch model of economy.
2.Types of capitalism.
Many people think that recent economic reforms in the Netherlands offer a successful halfway house between Anglo-American free markets and continental welfare states. The Dutch model of economic policy has a "success story". It deserves imitation. Economic editors of most international newspapers also praised the economic performance in the Netherlands.
Favourable comments refer to the above-average economic growth (compared with other member states of the European Union), the increase in employment, the low rate of inflation and the reduction of the budget deficit. This economic performance stems from a number of characteristics typical of the Dutch economic order.
In his well-known book "Capitalisme contre capitalisme", a former director of the French planning agency, Michel Albert, made the following distinction. On the one hand, he said, there is a continental West European type of capitalism (the "Rhine-land" model); on the other an Anglo-Saxon capitalism (in Great Britain and the United States of America).
The Rhineland model may be seen as a regulated market economy with a comprehensive system of social security. Government, employers' organisations and labour unions consult each other about economic goals and on the policy instruments to be used. In the Rhineland, therefore, the welfare state is combined with a so-called "consultation economy".
Rhineland participants in the economic process (widely known as "stakeholders") try to achieve a harmony of interests. In such a stakeholder economy the primary goal, it is said, is not the maximisation of short-term profits for the benefit of the shareholders. The main concern is a sustainable, stable and continuous economic growth.
In contrast to the stakeholder economy there is the American or Anglo-Saxon "shareholder economy". Under the American form of capitalism, private enterprise is about maximising short-term profits for those who invest. It is less regulated than in the Rhineland. Its focus is said to be not on any harmony of interests, but on competition and if necessary confrontation. In going for profits, Americans are more willing to take risks. Where Europeans may be risk-avoiders, Americans are risk-lovers. Under the Anglo-Saxon type of capitalism individual responsibility plays a more important role than in the Rhineland, with its organised care and solidarity. In the Netherlands, the Social and Economic Council (an advisory semi-corporatist council for social and economic affairs) and the Labour Foundation (a council for employers' organisations and unions) have fulfilled important functions. Employers' organisations and unions are called "social partners".
Many in the Netherlands attribute their success to harmonious relations between these social partners. It has been claimed that the so-called Wassenaar Agreement of 1982 has made Dutch success possible. At Wassenaar, a suburb of The Hague, employers' organisations and unions reached an agreement on wage modernisation and the creation of jobs. But this agreement in fact led to an erosion of the Rhineland model. It brought centralised wage bargaining to an end and led to a release of market forces. Decentralisation was a move away from the consultation economy and towards the market.
The Rhineland model was thus not strengthened: rather the contrary. The reduction of the tax burden owing to the slimming of public finance: the policy to stop matching any increase in wages with an equal increase in minimum social benefits; the decentralisation of collective bargaining agreements; the reduction of benefits for the disabled; and the privatisation of health insurance: all these went against the grain of consensual politics.
But how much success has the Dutch economy actually had? First, one can measure it by GDP per head. According to Eurostat, the Netherlands is still only ninth among the European Union countries. Second, employment. Job opportunities for low-skilled people remain scarce. In the retail trade, American employment figures are 60% higher than Dutch ones. Also, notwithstanding low official Dutch unemployment (on this, the Netherlands scores better than Germany, France and Italy), inactivity remains high. If statistics were to take into account all those who are able to work but who receive social benefits instead, unemployment figures would rise to over 20% of the labour force.
Viewed in this light, the recent success of the Dutch economy is merely relative to a worse past. Of course, improvements have been made. The government has made social security less collective by allowing privatisation and introducing market elements. In so doing, it has supported the setting of wages in private markets. It has also invested in infrastructure. But a favourable trade cycle helped too. More structural reforms are needed to improve Dutch performance and increase participation in the labour market.
Text-study
I. Learn the following words.
Welfare – благосостояние;
to stem from – происходить, возникать;
stakeholder – владелец доли капитала предприятий;
sustainable – постоянный, устойчивый;
advisory – консультативный;
attribute – предписывать;
erosion – разрушение;
bargain – торговая сделка, договор о покупке;
tax burden – налоговое бремя;
to slim – сократить;
scarce – недостаточный;
notwithstanding – несмотря на, тем не менее.
II. Answer the following questions.
1.What was the Dutch economic performance called by most international newspapers?
2.What did their favourable comments refer to?
3.What does this economic performance stem from?
4.What is the distinction made by the former director of the French planning agency? What two types of capitalism exist nowadays, according to his theory?
5.What are the typical characteristics of the Rhineland model?
6.Which is the primary goal of the stakeholder economy?
7.How does the stakeholder economy differ from the so-called Anglo-Saxon shareholder economy?
8.What kind of responsibility plays a more important part in the Netherlands' economy: individual or that of "social partners"?
9.What agreement made Dutch success possible?
10.What was the role of tax cuts in the Dutch economy?
11. What were the factors that prevented the Rhineland model from being strengthened?
12.What were the achievements of the Dutch economy?
13.How is the recent success of the Dutch economy viewed nowadays?
III. Complete the sentences with suitable words from the box.
Anglo-American free markets; continental welfare states; a regulated market economy; centralised wage bargaining; a release of market forces; the reduction of the tax burden; structural reforms
1. Many people think that recent economic reforms in the Netherlands offer a successful halfway house between … and … .
2. It brought … to an end and led to … .
3. The Rhineland model may be seen as … with a comprehensive system of social security.
4. … went against the grain of consensual politics.
5. More … are needed to improve Dutch performance and increase participation in the labour market.
IV. Fill in the blanks with articles if needed.
… recommendations imply that … Netherlands should keep moving in the same direction as in … past few years. Through deregulation … functioning of market mechanisms should be further improved and social security trimmed. In particular, the government must get … grip on the mounting number of registered disabled, of which there are many more in the Netherlands than in … Germany or Belgium. Officially, 13% of … working population is now disabled. If … genuine figure, that would make the Netherlands … unhealthiest place in north-west Europe, despite having the highest life expectancy.
In … short, the Dutch economic order will have to move even further towards … Anglo-Saxon model of capitalism. Policies which point in that direction have begun to bear … fruit. And such … policies should not be construed, as many choose to, as a reinforcement of … Rhineland model. Quite … contrary.
V. Fill in the blanks with suitable prepositions.
The consultants at McKinsey published a report … the Dutch economy. Four important barriers were seen to play a key role … keeping the Netherlands behind other countries. First, a lack … competition. Higher margins signify less competition. Dutch legislation … competition has in the past been relatively lax. Recently the Dutch government passed … a new law on competition which sets stricter rules.
The second barrier is formed … labour-market rules, including those on working hours and … hiring and firing, and … stringent collective bargaining agreements. In the OECD Jobs Study … 1995 a ranking was made … the extent of labour market regulations, in which the Netherlands scored worse than the United States, Britain, Denmark and Japan. On a scale … 0 (over-regulation) to 10 (very little regulation), the Netherlands scores 4 points … the United States’ 7.
VI. Give Russian equivalents for the following words and phrases:
to praise the economic performance of a country; the above-average economic growth; the increase in unemployment; the reduction of the budget deficit; a comprehensive system of social security; a pruning of the system of social security; a stable exchange-rate; wage modernisation; creation of jobs; tax cuts; purchasing power; a shortfall in demand; a sizeable reduction of public spending; job opportunities for low-skilled people; to receive social benefits; consumer goods; to set up new companies.
VII. Translate the following text into Russian in writing.
Tax cuts played an important part in wage moderation. They increased people's purchasing power and thus made it possible to limit increases in wages. Wage moderation has therefore not led to a shortfall in demand, as originally feared by some. The tax cuts coincided with a decrease of the budget deficit as a percentage of national income. Both were made possible by a sizeable reduction of public spending following upon restrictions in social security. Between 1980 and 1997 the purchasing power held by those on the minimum wage went up by 28.8% in France. In the Netherlands it went down by 21.3%. Hence the remarkable growth in jobs. Annual increases in Dutch jobs have averaged 1.6% over the past 15 years. That is four times the European average and is equal to the American employment machine. Cutting taxes, not raising them, is the way to create jobs.
VIII. Summarise the text using the words and phrases given below:
to argue; favourable comments; the Dutch economic order; to attempt to explain smth; to explore the consequences; economic goals; the policy instruments; to be combined with smth; to achieve a harmony of interests; the primary goal; the maximisation of short-term profits; for the benefit of the shareholders; a sustainable, stable and continuous economic growth; to take risks; to fulfill important functions; to attribute one's success to...; in view of...; to claim that...; to lead to smth; to bring smth to an end; a shortfall in demand; to limit increases in wages; to play a key role in smth.
IX. Translate the following sentences into English:
1.Благоприятные отзывы специалистов относятся к быстрому экономическому росту, превышающему средние показатели, снижению безработицы, низкому уровню инфляции и сокращению дефицита бюджета.
2.Западноевропейский капитализм представляет собой сочетание регулируемой рыночной экономики со всеобъемлющей системой социального страхования.
3.Основной целью участников экономического процесса является достижение слаженности интересов.
4.В основе голландского успеха - усовершенствование государственной финансовой системы, сокращения в сфере социального страхования, более гибкий рынок труда и устойчивый обменный курс национальной валюты к немецкой марке.
5.Снижение налогов привело к повышению покупательной способности населения, что сделало возможным ограничить увеличение зарплаты.
6.Способ создания рабочих мест - это сокращение налогов, а не их рост.
7.Успех голландской модели прежде всего измеряется показателями ВВП на душу населения.
8.Несмотря на низкие официальные показатели безработицы в Голландии, процент занятости все еще остается весьма невысоким.
X. Meet as one group. One of you should lead the meeting. Supply details to prove the following:
XI. Study the text in several groups. Dwell upon the barriers that play a key role in keeping the Netherlands behind other countries.
XII. Do you agree with the statement that "a synthesis of the Anglo-Saxon and Rhineland models ought to be possible"? Prove your point of view.
Unit 1.4. The Relations between the European Union and Other Countries
Text 1
Bilateral Agreements between the European Union and the USA
Pre-reading tasks.
1.Make up your own sentences to bring out the difference between agreement and treaty, talks and negotiations, trade and commerce.
2. Do you know the difference between the words secretary and undersecretary?
Any talks on a new bilateral trade agreement between the US and the European Union must "take into account" sensitive ar eas of agricultural subsidies and audio-visual trade, a senior US official said yesterday.
The undersecretary for international trade at the US com merce department, said Washington welcomed EU proposals for talks on a "New Transatlantic Marketplace". The plans, proposed by a trade commissioner, involve the creation of an EU-US free trade area in services, and the destruction of industrial tariffs by 2010 — if other countries follow suit.
But the undersecretary suggested it might not be possible to exclude agriculture and audio-visual services from negotiations, as the European Commission proposes. "We think that these two sectors need to be taken into account in some appropriate way," he said. "But I think it is not beyond the wit of man to be able to do that." He hoped the US and Brussels could "define an area for exploration" in the talks before the EU-US summit in London on May 18, 2010.
The undersecretary's comments may ring alarm bells in France, which has opposed the proposals partly because it be lieves it will be impossible to keep agriculture and audio-visual services out of talks. It has also suggested the issue should not be on the agenda of next month's summit unless the EU has reached its own internal agreement on the initiative.
The French president and prime minister have threatened to use their national veto to block the plan. EU ministers renew discussions on the issue in Luxembourg on Monday.
The undersecretary was in Brussels for talks with Commis sion officials on electronic commerce, and to attend a working meeting of the Transatlantic Business Dialogue — the policy fo rum of senior EU and US executives — which was also ex pected to discuss the trade talks proposals.
While EU companies have expressed enthusiasm, the re sponse from US business has been more muted, with some executives suggesting they were waiting for a lead from their national administration.
Despite French opposition, officials believe the EU will still be able to agree on the scope of talks with Washington. Some suggest the agriculture issue could be finessed through World Trade Organisation talks on farm subsidies and the EU's pro posals on farm reform.
Text-study
То ring alarm bells —бить тревогу, высказывать беспокойство;
bilateral agreement – двустороннее соглашение;
undersecretary - заместитель министра;
commissioner – специальный уполномоченный;
to finesse – искусно действовать;
muted response – неуверенный ответ.
II. Answer the following questions.
1. What areas must be taken into account in bilateral trade agreements?
2. The creation of an EU-US free trade area in services is involved in trade agreement, isn’t it?
3. Why isn’t agriculture service excluded from negotiations?
4. What issue has the French president threatened to use the veto?
5. What proposals are discussed by the Transatlantic Business Dialogue?
6. Will the EU be able to agree on the scope of talks with Washington?
III. Complete the sentences with suitable words from the box
|
bilateral trade agreement, trade commissioner, subsidies, undersecretary, transatlantic, agenda, executive, scope of talks, to finesse |
1. Any talks on a new … between the US and the European Union must "take into account" sensitive ar eas of agricultural … and audio-visual trade.
2. The … for international trade at the US com merce department welcomed EU proposals for talks on a "New Transatlantic Marketplace".
3. The plans, proposed by a … , involve the creation of an EU-US free trade area in services.
4. The issue should not be on the … of next month's summit unless the EU has reached its own internal agreement on the initiative.
5. The undersecretary was in Brussels for talks with Commis sion officials on electronic commerce, and to attend a working meeting of the … Business Dialogue — the policy fo rum of senior EU and US … — which was also ex pected to discuss the trade talks proposals.
6. Despite French opposition, officials believe the EU will still be able to agree on … with Washington.
7. Some suggest the agriculture issue could be … through World Trade Organisation talks on farm subsidies and the EU's pro posals on farm reform.
IV. Fill in the blanks with articles if needed.
... plans, proposed by ... trade commissioner, involve ... creation of ... EU-US free Trade area in ... services, and ... destruction of ... industrial ta riffs by 2010 - if... other countries follow suit.
While ... EU companies have expressed ... enthusiasm, ... response from ... US business has been more muted, with some executives suggesting they were waiting for... lead from their national administration.
V. Fill in the blanks with suitable prepositions.
The undersecretary ... international trade ... the US commerce depart ment, said Washington welcomed EU proposals ... talks ... a "New Trans atlantic Marketplace".
... French opposition, officials believe the EU will still be able to agree ... the scope ... talks with Washington.
VI. Explain the italicized grammar constructions in the following sentences.
He hoped the US and Brussels could "define an area for exploration" in the talks before the EU-US summit in London on May 18.
The undersecretary's comments may ring alarm bells in France, which has opposed the proposals partly because it believes it will be impossible to keep agriculture and audio-visual services out of talks.
It has also suggested the issue should not be on the agenda of next month's summit unless the EU has reached its own internal agreement on the initiative.
Some suggest the agriculture issue could be finessed through World Trade Organisation talks on farm subsidies and the EU's proposals on farm
The undersecretary was in Brussels for talks with Commission officials on electronic commerce, and to attend a working meeting of the Transatlan tic Business Dialogue— the policy forum of senior EU and US executives — which was also expected to discuss the trade talks proposals.
VII. Comment on the sentences.
"We think that these two sectors need to be taken into account in some appropriate way," he said. "But I think it is not beyond the wit of man to be able to do that."
French president and prime minister have threatened to use their national veto to block the plan. EU ministers renew discussions on the issue in Lux embourg on Monday.
VIII. Read and translate the following text into Russian in writing.
An international treaty strengthening the intellectual property rights of plant breeders comes into force. Among other provisions, the accord will prevent genetic engineers from freely copying or using protected plant va rieties bred in conventional ways.
Until today, a genetic engineer could use a protected plant variety of rice, wheat or other crop as a carrier for an innovation such as insect or herbicide resistance without the breeder's permission.
The new treaty applies to plant varieties protected under the International Union for the Protection of New Varieties of Plants (Upov), which operates under the umbrella of the Geneva-based World Intellectual Property Organi sation. Although the pact, which strengthens Upov's original convention, has been ratified by only six countries, more than 30 states have adopted its pro visions in their own domestic law including the US and the 15-member European Union.
Upov, which now has 37 members, expects many more countries to join soon as a way of implementing their World Trade Organisation commitment to provide effective protection for plant varieties. This commitment, already in force for industrialised nations, applies to developing nations from next January.
IX. Translate into English.
1. В недавнем выступлении заместителя министра торговли США, ведающего вопросами внешней торговли, говорилось о том, что проведение любых переговоров по двусторонним торговым соглашениям между США и Европейским союзом должны учитывать такие вопросы, как сельскохозяйственные субсидии и продажа совре менных компьютерных технологий.
2. По словам этого высокопоставленного представителя американского правитель ства Вашингтон проявляет интерес к предложениям Евросоюза относи тельно идеи создания нового трансатлантического рынка.
3. В частно сти, предусматриваются создание зон свободной торговли услугами и отмена тарифов на промышленные товары.
4. Высказывания заместителя министра торговли США могут встретить непонимание во Франции, представитель которой считает, что названные вопросы не должны быть включены в повестку дня заседания в верхах Европейского союза до тех пор, пока по ним не будет выработан еди ный подход.
5. Министры стран Евросоюза намерены вернуться к об суждению этого вопроса на своей предстоящей встрече в Люксембурге.
6. Заместитель министра торговли США выступил с заявлением на за седании организации "Трансатлантический деловой диалог".
7. Несмотря на возражение Франции, предста вители Евросоюза полагают, что им удастся договориться с Вашингтоном относительно того, что следует включать а круг обсуждаемых во просов.
8. Было высказано мнение о том, что сельскохозяйственные вопросы в предварительном порядке могут быть рассмотрены в ходе заседаний Всемирной торговой организации, посвященных проблемам сельскохозяйственных субсидий.
X. Render the text “The European Union and the relationships with other countries” using the plan.
Plan for rendering the text
3.Central idea (State it briefly and in your own words).
4. Summary. (Be sure to make your summary not more than a third or a half as long as the original).
XI. Meet as one group. One of you should lead the meeting. Discuss the relationships of the EU with other countries using the following words and word combinations: sensitive ar eas, Transatlantic, Marketplace, free trade area, it is not beyond a wit of man, to use veto, to block the plan, to renew discussion.
Text 2
The USA and The European Union
Pre-reading task.
Before you read the article say what you know about:
1. The actual GDP growth in the USA .
2.The inflation figures in the USA nowadays.
A great number of leading economists in America have admitted to The Economist that they are more worried about a recession than their official forecast might suggest. They predict only two quarters of shrinking output. That would make it the mildest recession in history. But it is hard to forecast recession, let alone deep recession, when your firm sells equities.
The trend is gloomy. The main driver of the downturn has been the business sector. As profits have been squeezed and weaker sales have caused inventories keen to pile up, firms have started to trim their investment and production. Firms have already started to slim their excess stocks. The usual inventory correction should take place more rapidly than usual, allowing the economy to bounce back more swiftly.
The behaviour of consumer and corporate spending will determine whether this happens without a recession. John Makin, an economist at the American Enterprise Institute, believes there is a serious overhang of capital investment.
The most useful economic indicator to watch is consumer confidence. Mr. Greenspan has likened the sudden break in confidence before past recessions to "water backing up against a dam that is finally breached." It is difficult for monetary policy to deal with such a sharp break in confidence. If nervous consumers suddenly decide to save more and spend less, a serious recession could follow.
What would really cause consumer confidence to crumble is big job lay-offs. So far unemployment has increased.
Most economists and investors still have faith to prevent a recession through interest-rate cuts. Monetary policy always operates with long lags, but with record levels of debt and excess capacity, lower interest rates may be even less effective than usual in spurring new spending. Easier monetary policy can certainly shorten recession, but, given America's financial and economic imbalances, it may be too late to prevent one altogether.
All this leaves one final reason for optimism. Yet, if a recession were to occur, the shock to confidence could be severe - like discovering that the emperor had no clothes after all.
Text-study
I. Learn the following words
Recession – падение, спад;
forecast – прогноз;
to shrink – сокращаться;
output – производительность, продукция;
trend – тенденция;
to squeeze – снижаться;
to bounce – повышать, увольнять;
to overhang – выступать над …;
to crumble – разрушаться, распадаться;
to spur – побуждать, заставлять;
to shorten – сокращать;
severe – глубокий, жестокий, тяжелый.
II. Answer the following questions.
III. Complete the sentences with suitable words from the box.
official forecast; to squeeze profits; to bounce back ; to spur spending; recession; deep recession; mild recession; inventory correction; a serious overhang of capital investment; consumer confidence
1. A great number of leading economists in America have admitted to The Economist that they are more worried about a … than their … might suggest.
2. But it is hard to forecast …, let alone … , when your firm sells equities.
3. As … have been … and weaker sales have caused inventories keen to pile up, firms have started to trim their investment and production.
4. That would make it the … in history.
5. The usual … should take place more rapidly than usual, allowing the economy … more swiftly.
6. John Makin, an economist at the American Enterprise Institute, believes there is … .
7. The most useful economic indicator to watch is … .
8. Monetary policy always operates with long lags, but with record levels of debt and excess capacity, lower interest rates may be even less effective than usual in … new … .
IV. Fill in the blanks with articles if needed.
The trend is gloomy. … main driver of … downturn has been the business sector. As … profits have been squeezed and weaker sales have caused inventories keen to pile up, … firms have started to trim their investment and production. Firms have already started to slim their excess stocks. … usual inventory correction should take place more rapidly than usual, allowing … economy to bounce back more swiftly.
The behaviour of … consumer and corporate spending will determine whether this happens without … recession. John Makin, an economist at … American Enterprise Institute, believes there is … serious overhang of capital investment.
V. Fill in the blanks with suitable prepositions.
The most useful economic indicator to watch is consumer confidence. Mr. Greenspan has likened the sudden break … confidence before past recessions to "water backing up … a dam that is finally breached." It is difficult … monetary policy to deal … such a sharp break … confidence. If nervous consumers suddenly decide to save more and spend less, a serious recession could follow.
What would really cause consumer confidence to crumble is big job lay-offs. So far unemployment has increased.
Most economists and investors still have faith to prevent a recession through interest-rate cuts. Monetary policy always operates … long lags, but …record levels … debt and excess capacity, lower interest rates may be even less effective than usual … spurring new spending.
shrinking output; to trim investment and production; to slim excess stock; consumer spending; corporate spending; a sudden break in consumer confidence; job lay-offs; to prevent a recession through interest-rates cuts; producer-price inflation; to shorten recession.
to sound reassuring; to admit to...; shrinking output; gloomy( about a trend);
the main driver of the downturn; to squeeze profits; to cause; to pile up (about inventories); to cut investment plans; to have a big impact on growth in spending; to crumble; a spate of corporate lay-offs; poor inflation figures; to operate with long lags; to shorten recession; to underpin confidence.
1. Сокращение ВВП в течение, по крайней мере, двух кварталов означает наступление рецессии.
2. Экономисты признают, что рецессия трудно поддается прогнозированию.
3. Предсказать, когда наступит поворотный момент от роста к спаду, невозможно даже при помощи известных экономических моделей.
4. Пока ведущим фактором экономического спада является деловой сектор.
5. По мере того как снижаются доходы, сокращается число продаж.
6. Фирмы начинают сворачивать инвестирование и производство.
7.Снижение доходов заставит многие фирмы отказаться от широкомасштабного инвестирования.
Economic models are not much help for spotting turning-points in the cycle.
XI. Meet as one group. One of you should lead the meeting. Argue for or against the following debating themes:
XII. Study the text in several groups and comment on the following statement:
Monetary policy always operates with long lags, but with record levels of debt and excessive capacity, lower interest rates may be even less effective than usual in spurring new spending.
Text 3
Argentina in a Fix
Pre-reading task.
Read the following text, explain its title.
At the beginning of the 1990s, Argentina was regarded as an emerging-market success story. And much of its success was attributed to its adoption in 1991 of a convertibility law, pegging the currency, the peso, to the American dollar: every peso in circulation had to be backed by a dollar in reserves. This type of "currency board" arrangement is super-fashionable among economists.
In recent years, whenever an emerging economy's currency - be it the Indonesian rupiah, the Russian ruble, the Brazilian real or the Turkish lira -has hit the rocks, some wise man has been on hand to tell the failing government that a currency board would solve all its troubles. It was argued that countries had only two choices: to allow their currencies to float freely or, conversely, to fix them by means of a currency board. Short of outright dollarization, this is the cast-iron way to fix a currency. It amounts to an open-ended promise to swap dollars for pesos at the promised parity.
Such a system worked, for example, for Hong Kong, whose dollar weathered the Asian currency crisis of 1997-98. It means that the government forgoes its right to set its own monetary policy. But, in return, it gains a strong weapon against inflation. In Argentina, for example, inflation was tamed.
Now the country is tasting some of the drawbacks to a currency board. The strength of the dollar has pulled the peso up to damaging heights.
For Argentina, with its currency board, devaluation is a far more drastic option than it was even for Brazil, where the crisis surrounding the flotation of the real was bad enough.
Weaker pegs, such as the one that Thailand used to keep its currency (the baht) stable, are now recognized as dangerous. When investors lose confidence, as happened in Thailand in 1997, interest rates soar.
Variants of this system were used, with bad results, in Indonesia, Brazil and Turkey. Instead of fixing the currency at a set parity, the government lets its value fluctuate within a pre-set range; and that range itself moves over time against the other currency (usually downwards).
Nor do "free-floating" exchange-rate systems provide an easy solution. Few governments are willing to leave the exchange rate entirely up to the market. For good reason: pure floats are vulnerable, at times of extreme market turbulence, to shuddering exchange-rate shocks.
In many emerging markets, the apparent failure of an exchange-rate system also looks like the failure of the IMF, on whose authority the policy has been followed. It is not so much the exchange-rate system that has crumbled, but more the faith of investors in the government's ability to deliver the policies needed to maintain it.
Text-study
I. Learn the following words.
Emerging market – зарождающийся рынок;
convertibility – конвертируемость;
to peg – прикреплять, охранять от колебаний;
to float – иметь плавающий курс;
outright – прямой, открытый;
cast-iron – непреклонный, твердый;
parity – равенство, паритет;
to weather – справиться, выйти из положения;
to forgo – отказываться, воздерживаться;
to tame – обуздать;
drawback – недостаток;
to soar – стремительно повышаться;
to fluctuate – колебаться;
vulnerable – уязвимый;
to crumble – разрушаться, обваливаться.
II. Answer the questions:
III. Complete the sentences with suitable words from the box.
an emerging-market-success story; lose confidence; an exchange-rate system; an open-ended promise; to set its own monetary policy
IV. Give Russian equivalents for the following words and phrases used in the text:
adoption of a convertibility law; "currency board" arrangement; architect of the convertibility law; devaluation; the floatation of the real; the currency peg; foreign-exchange reserves
V. Translate the following sentences from the text into Russian in writing:
1. In recent years, whenever an emerging economy's currency - be it the Indonesian rupiah, the Russian rouble, the Brazilian real or the Turkish lira - has hit the rocks, some wise man has been on hand to tell the failing government that a currency board would solve all its troubles.
2. Short of outright dollarisation, this is the cast-iron way to fix a currency.
3. Such a system worked, for example, for Hong Kong, whose dollar weathered the Asian currency crisis.
4. Instead of fixing the currency at a set parity, the government lets its value fluctuate within a pre-set range; and that range itself moves over time against the other currency (usually downwards).
5. And, even in the medium-to-long term, foreign-exchange markets are capable of producing currency misalignments.
VI. Summarise the text, using the words and phrases given below:
to peg a currency; to be backed by a dollar in reserves; to float freely; to fix a currency; to swap dollars for pesos; to set one's own monetary policy; overvalued;
to be forced to float the currency; to soar; to fix a currency at a set parity.
VII. Translate the sentences from English into Russian paying attention to participles and Complex Object with the Infinitive.
1. Goods produced by Argentina are very well designed.
2. The equipment purchased last month is of high quality.
3. The enquiry sent by our company today will be received by our partners the day after tomorrow..
4. The discount given by your firm is rather good.
5. Written in a hurry, the letter was difficult to read.
6. He wants the work done immediately.
7. We want the Argentinian company to deliver the goods in May.
8. You expect the contract to be signed today, don't you?
9. Do you want the design of the model to be changed?
10. I don't know why they made the employees show the compressors in operation.
11. I expect the tests of computers to be made soon.
VIII. Translate into English:
1. Бразилия была вынуждена принять плавающий курс национальной валюты, что привело к падению курса бразильского реала на 40% по отношению к доллару.
2. В 1997 году необычайный рост процентных ставок в Таиланде заставил правительство использовать валютные резервы страны в целях поддержания национальной валюты.
3. Аналогичная ситуация сложилась в Малайзии, где правительству пришлось ввести меры контроля за капиталом.
4. Инвесторы разочарованы не столько системой обмена валют, сложившейся в странах с развивающейся экономикой, сколько неумением правительств этих стран проводить политику, способную поддержать ту или иную систему.
5. Стоимость кредитов резко возросла из-за опасений, что страна может отказаться от выполнения своих обязательств по выплате долгов.
IX. Work as one group. Supply details to prove the following statement from the text:
If currency boards bring troubles of their own, so do all the other options.
X. Meet as one group. Speak about the convertibility law adopted by Argentina in 1991. What are its advantages and disadvantages?
XI. Meet as two groups. Argue for or against the following assumptions made by the author:
XII. Meet as two groups. Discuss the strong and weak points of:
a) currency board arrangement;
b) "free-floating" exchange-rate systems
Text 4
The European Union and Japan
Pre-reading task.
Read the text, then give a brief description of the Japanese economy's current performance.
Japan's GDP grew at an annual rate of 5.1%. But it then shrank, and the head of the country's Economic Planning Agency has warned that GDP probably fell again. Two consecutive quarters of contraction technically put Japan back into recession. However, Japans GDP figures are notoriously unreliable, swinging wildly from quarter to quarter and subject to large revisions. The official figures probably overstated growth during the first half of the year, and then overstated the slowdown in the second half. Some economists reckon that a better gauge is industrial production.
Household spending has been depressed by continuing deflationary pressures: prices, wages and bank lending are all falling. Despite this, some on the Bank of Japan's policy hoard are talking about raising interest rates. Instead, the bank should be pursuing more aggressive monetary expansion, either through unsterilised foreign-exchange intervention or by buying government bonds. Not only would this help to take some of the strain off fiscal policy, but by adjusting the monetary and fiscal mix.
The 60% rise in share prices since the beginning of last year suggests that investors reckon that these changes are significant. In the short-term, the reduction by firms of excess capacity, labour and debts will admittedly constrain new business investment and squeeze workers' incomes. But eventually the changes will create new investment opportunities and boost growth.
There is no denying that Japan’s structural problems remain severe. And yet, contrary to what some claim, big changes are under way. Financial deregulation is forcing firms to focus on return on capital. Large inflows of foreign direct investment, notably in cars and telecoms are boosting competition. The deregulation of retailing has spawned big, independent retailers able to force manufacturers to be more efficient. The Internet is also starting to spur price competition.
In some ways Japan looks like America in the early 1990s, when businesses engaged in painful changes, and workers' real incomes fell. Japan's task is far bigger, but there is a silver lining round this cloud: the country's potential for gains in efficiency and productivity is also much bigger.
Text-study
I. Learn the following words.
Consecutive – последовательный;
contraction – сокращение, уменьшение;
recession – спад;
to overstate – преувеличивать;
gauge – мера;
hoard – резерв, хранилище;
to pursue – проводить;
to take off the strain – снимать напряженность;
to constrain – ограничивать, сдерживать;
to squeeze – уменьшать;
to boost – стимулировать;
to spur – стимулировать.
II. Answer the following questions:
1. What are the reasons to believe that the Japanese economy is slowly on the mend?
2. What does the author mean by more aggressive monetary expansion?
3. What are Japan's longer-term prospects?
4. Is Japan an attractive destination for inward investments? Why?
5. What makes Japan look like America in the early 1990s?
III. Complete the sentences with suitable words from the box.
deflationary pressures; unsterilised foreign-exchange intervention; the monetary and fiscal mix; to spur price competition; the deregulation of retailing
1. Household spending has been depressed by continuing … .
2. Instead, the bank should be pursuing more aggressive monetary expansion, either through … or by buying government bonds.
3. Not only would this help to take some of the strain off fiscal policy, but by adjusting … .
4. … has spawned big, independent retailers able to force manufacturers to be more efficient.
5. The Internet is also starting … .
IV. Give Russian equivalents for the following words and phrases used in the text:
two consecutive quarters of contraction; household spending; bank lending; unsterilised foreign-exchange intervention; excess capacity; investment opportunities; return on capital.
V. Translate the following sentences from English into Russian in writing:
1. Large inflows of foreign direct investment, notably in cars and telecoms, are boosting competition.
2. The Internet is also starting to spur price competition.
3. Because of political problems, the government seems to be backtracking on some structural reforms.
4. For the previous year as a whole, Japan's economy grew by an estimated 0.6%.
5. In the short-term, the reduction by firms of excess capacity, labour and debts will admittedly constrain new business investment and squeeze workers' incomes.
VI. Fill in the blanks with suitable prepositions.
Contrary … what some claim, big changes are … way. Financial deregulation is forcing firms to focus … return … capital. Large inflows … foreign direct investment, notably … cars and telecoms are boosting competition. The deregulation … retailing has spawned big, independent retailers able to force manufacturers to be more efficient. The Internet is also starting to spur price competition.
… some ways Japan looks like America … the early 1990s, when businesses engaged … painful changes, and workers' real incomes fell. Japan's task is far bigger, but there is a silver lining … this cloud: the country's potential … gains in efficiency and productivity is also much bigger.
VII. Fill in the blanks with articles if needed.
This is sure to do something nasty to … economy, which is already weak. One bank, Goldman Sachs, guesses that … government's plans for … banks would shave … full 1.5% off economic growth and put more than 300,000 people out of work. So … central bank, … Bank of Japan, stands ready with … third economic initiative: easier money. This could involve … cutting interest rates, driving the yen lower, or buying … government bonds, land or other assets.
One reason for … multiplicity of … measures is … traditional desire for … consensual approach. It means that … policies emerge messily in public rather than being put together neatly in private. Decisions take too long, especially on … urgent problems such as … banks and … economy, which has weakened dramatically in … past few weeks.
VIII. Summarise the text, using the words and phrases given below:
to shrink; to put Japan back into recession; to overstate growth; to spur the economy;
to take some of the strain off fiscal policy; to press on with restructuring; to focus on return on capital; to spur price competition.
IX. Translate into English:
1. Бесспорно, структурные проблемы японской экономики остаются чрезвычайно серьезными.
2. Страна обладает огромным потенциалом для повышения эффективности производства и производительности труда.
3. 60-процентное повышение цен на акции говорит о том, что инвесторы считают происходящие в стране изменения весьма значительными.
4. Похоже, что восстановление экономики возобновится в этом году.
5. В некотором смысле современная Япония похожа на Америку 90-х: в сфере бизнеса происходят болезненные перемены, реальные доходы работающего населения падают.
X. Supply details to prove the following:
1. Contrary to what some claim, big changes in Japan's economy are under way.
2. Below the surface, however, there are reasons to believe that Japan's economy is on the mend.
XI. Comment on the following statements from the text:
1. Eventually the changes will create new investment opportunities and boost growth.
2. Although Japan's economy is officially in recession again, it is stronger than it looks.
XII. Work as two groups. Discuss the following:
Because of political problems, the government seems to be backtracking on some structural reforms.
Text 5.
Switzerland and the Euro
Switzerland is a paradox. Here is a small country surrounded by members of the European Union. Its citizens speak three main languages, none of them (at least as written) specifically Swiss. Of its 7m people, one-fifth come from outside. It lives off cross-border commerce, selling chemicals, machinery and precision instruments to the world, welcoming tourists and bank depositors from it. Swiss companies include such giant multinationals as Nestle, Ciba-Geigy and ABB, itself born of a big cross-border merger. Many international bodies are headquartered in Switzerland: the Red Cross, sports bodies, bits of the United Nations. Yet the Swiss, traditionally neutral in war, have kept out of even the main peaceable cross-frontier organizations as well. They belong to the International Monetary Fund and the World Trade Organisation, for instance, but not yet to the UN. That may change after a referendum in 2002. But as for the far more restrictive bonds of the EU, no way: on Sunday, in a referendum calling for an immediate start to negotiations on EU membership, almost 77% of those who voted said no.
The call for a vote at all came only from dedicated Swiss Europhiles. The government and most politicians were against it, and so even were businessmen, essentially because they did not want a referendum which they knew would be lost. The government has been planning to start talks on membership at some (steadily receding) date from 2004, and wanted time to prepare Swiss institutions and practices - and, above all, public opinion. A premature vote could only hurt its plans, and has. Even the Europhiles did not really expect to win. But they did want to keep the issue on the front-burner. In the event, they were not just beaten but smashed, and the issue is off the stove itself.
Why? Why defy what look like solid economic arguments for getting inside the EU? After all, Switzerland already enjoys trade with the EU that is more or less free. The Swiss voted only last year in favour of a package of deals with the EU on various quite weighty matters. Over 70% of their trade is with EU countries, nearly all of them ones that will soon be using its new currency, the euro. Would it not be better to be on the inside of such a grouping, able to influence its decisions, rather than haggle with it, a small economic power with a huge one, from outside? And, equally, inside the euro-zone, and the European Central Bank? One could well think so.
One could, but the Swiss did not. There were short-term, immediate reasons, but the basic one is centuries old: the Swiss have forged and fought for their identity and independence since 1291, and they do not want to give up. Not for nothing is their national myth-figure William Tell, a man who preferred to risk his son's life rather than accept foreign rule.
Text-study
qualms - беспокойство, тревожное состояние
merger - слияние (двух компаний)
haggle - торговаться, спорить (о цене товара)
umpteen - бесчисленный, многочисленный, множественный
constraint - принуждение; давление
II Answer the following questions:
|
marginal economic arguments; a cross-border merger; the far more restrictive bonds of the UN; dedicated Swiss Europhiles; they have no voice in Brussels; tribalism; paradox |
In any event, today's Swiss reckon that … economic case is less than compelling. They need … free trade, but they can get it without being members of the EU, as … past 45 prosperous years have shown. They have no voice Brussels, but they reckon they have not suffered unduly by bargaining from … outside. As for the euro, of course it is convenient to share … currency with your customers, but … Swiss have traded in umpteen foreign currencies since … gold standard. They can survive next-door to but outside … euro-zone, with no voice in its central bank, just as they have next-door to Germany's D-mark mark and with no voice in its Bundesbank: under … pressure from a mighty currency, but still with some freedom to manage their own. In sum, they have most of … economic benefits of EU membership already, but none of … formal political constraints. The economic gains of joining would, at best, be modest; the psychological loss could be great.
The story does not stop at Switzerland. Canada has lived for 160 years next to a far larger economy, with a different currency. Possibly Canadians would be richer if they were all Americans. Certainly they would carry more weight in Washington: think, … comparison, of California. Yet they prefer to be what they are, just as Irish republicans chose to cut loose … Britain in the 1920s, or as Norwegians voted against EU membership in 1994. And as most Britons, for similar reasons, would vote … euro membership today. The risks for Britain may be greater: it depends more than Switzerland does … foreign investors, and they might prefer to set up inside the euro-zone. But it is no good denouncing national feelings as mere tribalism. Such feelings may seem old-fashioned to some. But if people or nations feel that way, so be it. There is little evidence that most of them suffer thereby.
political qualms; cross-border commerce; precision instruments; bank depositors; cross-border merger; cross-frontier organisations;
solid economic arguments; a package of deals with the EU; short-term, immediate reasons; political constraints
to reject membership of the European Union; to live off cross-border commerce; to keep out of any cross-frontier organizations; to call for smth; to keep the issue on the front-burner; to be off the stove; to enjoy trade with EU; to cut loose from smb/smth.
Unit 1.5. The Importance of EU Economic and Social Issues
Text 1
Promoting Integration
Pre-reading tasks
If EMU encourages greater specialization in particular industries, economic management will be more difficult.
The economic case for the euro rests largely on the idea that it will hasten economic integration. This in turn will promote competition, leading to higher productivity and incomes. The case against rests largely on the idea that "asymmetric shocks" - disturbances that affect some countries much more than others - will be harder to deal with in the absence of national monetary policies. But what if it turns out that the more successful the euro is in promoting integration, the more susceptible the single-currency area becomes to asymmetric shocks?
At first sight, this seems unlikely. In a more integrated Europe, surely countries will be more alike. Maybe not. There are reasons for thinking that integration across a region makes sub-regions more specialised - that is, less alike. If this turns out to be true for Europe, the gains from integration in good times may be great, but the risks in bad times will be bigger too.
Economic theory suggests several connections between integration and regional specialization. In standard "neoclassical" growth theory, integration makes countries more similar: once capital and labour are free to move, the mix in which the two are used tends to converge internationally. Traditional trade theory complements this finding. It argues that a country's incomes and industrial structure reflect its endowment of labour, capital and other resources. As countries become richer, the accumulation of physical and human capital comes to outweigh resources such as land and climate: endowments become more similar, and so do patterns of output.
More modern theories emphasize different links. "New" growth theory is interested in externalities. The return to a unit of extra investment may be higher in a country that already has a lot of capital: the existing stock confers an external benefit on the new addition. If this effect is powerful, integration may promote divergence rather than convergence: investment will move all the faster to areas that already have lots of capital. "New" trade theory complements this finding (just as traditional trade theory sat happily alongside traditional growth theory). Externalities in production will cause high-technology, high-wage industries to form clusters. The more integrated these areas are through trade, one with another, the greater the tendency for clustering to take place. Again, integration makes economies less alike.
The evidence on all this is fiercely contested. There is no consensus on whether the new theories of trade and growth are closer to being true than are the current versions of their predecessors. So far as specialization is concerned, it is not even clear exactly what the term means, let alone how it should be measured. A lot depends on the level of magnification - that is, on whether you compare broad sectors (manufacturing, fanning) or sub-sectors, or even particular industries.
It would be hard to deny, though, that the economy of the United States is more regionally specialized than the euro zone. Big industries do seem to have clustered in certain areas: classically, car making in Detroit, software in Silicon Valley, movies in Hollywood. Europe has clusters here and there, but they are less pronounced. In America, asymmetric shocks have often pushed regional economic cycles out of synch, but fiscal transfers and labour mobility have eased the adjustment. Europe may find that integration causes sharper regional cycles - but since its central budget is small and its labour mobility low, its ability to cope may be poorer.
Text-study
disturbance – нарушение, беспокойство, тревога
susceptible - восприимчивый
endowment - вклад, дар, пожертвование
externality - вид
magnification - увеличение
fanning - веерность
cluster - объединение
|
Economic integration; regional specialization; neoclassical growth theory; traditional trade theory; externalities in production; magnification; competition; national monetary policies; clusters |
A recent study by the OECD reports some further evidence. First, it looks at a measure … output divergence (which asks, in effect, what proportion … each country's output would need to switch sectors … the country's pattern of GDP to conform to the euro-area average). The results suggest that specialization has increased since 1980 in most of the countries examined. But the findings are inconclusive. Using a similar measure, but looking at 60 sub-national regions within the euro area rather than … countries, and using employment… place … output, the researchers find the opposite: specialization has been falling, albeit gently, since the mid-1980s.
It is possible, indeed likely, that "new" and "neoclassical” effects are going on at the same time. A paper cited by the OECD shows that specialization … America has traced a bell-curve over time. Regional specialization increased during the 19th and early 20th centuries as manufacturing, prone, … the "new" view, to form clusters, gained ground … agriculture. Later, this trend reversed and specialization fell - notwithstanding the fact that America is today more specialized than Europe.
"Neoclassical" factors - trade and comparative advantage – caused … long-term shift in industrial structure: … economy moved from manufacturing to services. Many services have to be produced where they are consumed, which means less regional specialization. This was enough to outweigh any tendency within manufacturing for specialization to increase. Europe can draw comfort from this. Its shift from manufacturing to services lags far behind America's. Integration, other things equal, will speed it up. This should mitigate any tendency towards … clustering. For now at least, service economies look more alike than … manufacturing economies, and should prove less susceptible to … shocking developments.
1. The case against the euro rests largely on the idea that "asymmetric shocks" - disturbances that affect some countries much more than others - will be harder to deal with in the absence of national monetary policies.
2. As countries become richer, the accumulation of physical and human capital comes to outweigh resources such as land and climate: endowments become more similar, and so do patterns of output.
3. "New" growth theory is interested in externalities. The return to a unit of extra investment may be higher in a country that already has a lot of capital: the existing stock confers an external benefit on the new addition.
4. It would be hard to deny, though, that the economy of the United States is more regionally specialised than the euro zone.
5. A paper cited by the OECD shows that specialisation in America has traced a bell-curve over time.
1. Согласно экономической теории, существует несколько причин, позволяющих говорить о взаимосвязи интеграции и региональной специализации.
2. В «новой» теории роста особое внимание обращается на внешние экономические факторы.
3. Так называемые «неоклассические факторы» - торговля и сравнительное преимущество - произвели в промышленной структуре долговременный сдвиг: от сферы производства - к сфере обслуживания.
4. Многие услуги потребляются там же, где производятся, что означает меньшую степень региональной специализации.
service economies; manufacturing economies; the single-currency area; sub-regions; the gains from integration; endowment of labour and capital; accumulation of physical and human capital; patterns of output; externalities; divergence/ convergence; fiscal transfers; labour mobility; a bell-curve; a long-term shift in industrial structure.
the case for…; the case against; at first sight; to suggest; to promote competition; to emphasize; to complement; to be fiercely contested;
to deny; to report; inconclusive; to cite; to cause.
3. the gains from integration in good times may be great, but the risks in bad times will be bigger too;
Text 2
Eastern European Securities
Pre-reading tasks
If you want a big, smoothly functioning market for capital, you have to protect investors from mischief. For any emerging economy trying to turn foreign and domestic savings into productive assets, that ought to be an obvious conclusion.
Anybody who doubted the lesson could consult a stack of papers from a research team led by Harvard University's Andrei Shleifer and the University of Chicago's Robert Vishny. Over the past five years, the two have studied the link between investor protection - notably, measures to entrench the rights of minority shareholders, or to require disclosure of corporate information – and growth in financial markets. The numbers make it plain there is indeed a link, but did effective regulation promote financial development, or was it the other way round?
To establish the direction of causation, the researchers needed to find something that affects the extent of investor protection but that is not affected by big, deep capital markets. They settled on legal tradition. Countries with regulatory codes descended from English common law tend to have stronger investor protection than countries with civil-law traditions founded on Roman law; presumably, on the other hand, the extent of modern financial development cannot have affected the historical legal tradition. So the share of investor protection that can be traced to a country's legal tradition - and it is usually a big share - is likely to be a cause of financial growth.
These investigations shed an interesting light on recent changes in Eastern Europe's regulatory regimes. Most of the transitional economies had French- and German-inspired legal systems before communism. When the iron curtain fell, they had a chance to make a fresh start. The most ambitious reformers began to adopt American-style regulations derived from English common law. That process has culminated in Poland's new company law, which came into effect at the beginning of this year.
One of the new law's important provisions is that each share in a public company may carry only one vote. Under the old commercial code of 1934, which remained in force under communism, preferred shares carried up to five votes. Small groups of investors could control firms in which they owned just small stakes; cross-dealings between firms controlled this way could be used to siphon off the wealth of minority shareholders.
Poland's reforms have spawned a derivatives market that last year traded more index futures than Finland, Norway or Portugal. Russia is trying to get into the act by reforming its own derivatives trading, with America's Commodities Futures Trading Commission (the Securities and Exchange Commission's little sister) as an adviser and model. Even in Eastern Europe's most promising regulatory systems, enforcement remains a problem. The courts move ponderously, and judges often lack a sure grasp of the new laws. As a result, legal protection of investors does not yet always mean effective protection of investors
Text-study
shareholder - акционер
causation - причинная связь, причинно-следственные отношения
collaborator - соавтор
spawn of - плоды, результат
siphon - противозаконно перекачивать средства
ponderous - тяжеловесный
|
Minority shareholders; investor protection; an emerging economy; transitional economy; English common law; Roman law; regulatory regimes. |
Poland's new law also permits small investors to band together to challenge a company's activity or accounts. At a general shareholder meeting, any group with 5% … the company can demand an independent audit. In the past, neither the meetings nor the ability to force action in this way were guaranteed. Those rights, along with one-share-one-vote, greatly helped the development … capital markets in the studies Mr. Shleifer and his collaborators produced.
The head … the Warsaw Stock Exchange (WSE) is a big fan of what he calls "the American sunlight principle". Like Arthur Levitt, the last chairman of America's Securities and Exchange Commission, he believes in full disclosure … corporate goings-on so that investors may judge companies' prospects … themselves in the bright light … day. He hopes Poland's new company law will help to bring the WSE'S market capitalization f… 17% … Polish GDP to the West European average of 60%.
Hungary, … Czech Republic, Slovakia and Slovenia are also inching closer to … West European standard. Budapest's exchange is … furthest along, and at 21% of Hungarian GDP its market capitalization is bigger than the WSE'S. Its investor protection measures are not quite as generous as Poland's: … block of shareholders must command 10% of … company's votes to demand … audit or meeting, and those votes can be attached to shares in ratios as high as ten to one. It is clear, however, that Hungary and Poland, compared with others, have bridged … gap with the West.
used in the text:
emerging economies; foreign and domestic savings; productive assets; transitional economies; a research team; regulatory regimes;
the new law's important provisions; commercial code of 1934; preferred shares; cross-dealings between firms; one-share-one-vote;
full disclosure of corporate goings-on; a block of shareholders;
a derivative market; index futures; financial practices
to entrench the rights of minority shareholders; to require disclosure of corporate information; to promote financial development; to affect smth; to carry only one vote; to remain in force; to own small stakes;
to siphon off the wealth of minority shareholders; to band together;
to challenge a company's activity or accounts; to inch closer to the West European standard; to bridge the gap; to set the markets on the right course
Hungary and Poland, compared with others, bridged the gap with the West.
2. Legal protection of investors does not yet always mean effective protection of investors.
Text 3.
The problem of Tax Harmonization
Pre-reading task
Read the following text, then explain its title.
Taxation is one of the hot topics at EU summits. The European Commission's efforts to stamp out "unfair" tax competition ran into opposition, notably from Britain. But it turns out that this might have been for the best. A recent research suggests that imposing common taxes on capital income would do all of the EU's member countries more harm than good.
The system of tax harmonisation is based on the economic theory. If an entrepreneur is trying to decide where to start a company, the tax rate he pays on capital income will be one of the factors he has to consider. It might influence his return on investment.
The EU tax rates vary across jurisdictions. Imposing equal rates would ensure that the entrepreneur's decision rests only upon factors that are central to his company's prospects.
It has suggested that capital benefits from "agglomeration": in other words, a cluster of capital in the same place is very useful. When companies bunch together, obtaining services, strengthening infrastructure and sharing knowledge all become easier.
Countries must be integrated enough to make agglomeration feasible. To understand how agglomeration might have affected tax competition in the EU, the member countries are divided into two groups: the core and the periphery. The core is made up of France, Germany, Italy and Benelux. The periphery consists of Greece, Ireland, Portugal and Spain.
Countries on the periphery would be forced to raise rates. Countries in the European Union's core, whose rates might already be depressed by tax competition with each other, would have to cut taxes (and public spending) even further.
Growth in information technology, falling transport costs and continuing economic integration will eventually do away with the benefits of agglomeration, not just in Europe, but worldwide. Come the moment when capital becomes fully mobile around the world, tax harmonisation may have its day.
Text-study
I. Learn the following words
To stamp out – подавлять, уничтожать;
capital income – доход от капитала;
tax rate – ставка налога;
to impose – облагать налогом;
dispersed – распространенный;
agglomeration – укрупнение, интеграция;
feasible – осуществимый, реальный.
II. Answer the following questions.
III. Complete the sentences with suitable words from the box.
agglomeration; to make feasible; to impose equal rates; economic theory; to stamp out; to bunch together; to obtain service; common taxes; capital income.
1. Commission's efforts … "unfair" tax competition ran into opposition, notably from Britain.
2. It has suggested that capital benefits from … : in other words, a cluster of capital in the same place is very useful.
3. When companies … , … , strengthening infrastructure and sharing knowledge all become easier.
4. Countries must be integrated enough … agglomeration ….
5. … would ensure that the entrepreneur's decision rests only upon factors that are central to his company's prospects.
6. The system of tax harmonisation is based on the … .
7. A recent research suggests that imposing … on … would do all of the EU's member countries more harm than good.
IV. Fill in the blanks with articles if needed.
Taxation is one of … hot topics at EU summits. … European Commission's efforts to stamp out "unfair" tax competition ran into … opposition, notably from Britain. But it turns out that this might have been for … best. … recent research suggests that imposing common taxes on capital income would do all of … EU's member countries more harm than good.
The system of tax harmonisation is based on … economic theory. If … entrepreneur is trying to decide where to start … company, … tax rate he pays on capital income will be one of … factors he has to consider. It might influence his return on … investment.
V. Fill in the blanks with suitable prepositions.
Average tax rates were indeed 12 percentage points higher … the core than … the periphery in 1965, just eight years … the Treaty of Rome. Integration then deepened and capital became more mobile, yet countries did not race … the bottom. Quite the reverse: tax rates rose … both the core and the periphery. The gap between their average tax rates also grew. It peaked … 16 percentage points … 1978, the year before the European Monetary System came … force. As integration deepened over the following two decades, the tax gap narrowed steadily. By the 1990s, it had shrunk … seven percentage points.
VI. Give Russian equivalents for the following words and phrases used in the text:
tax competition; capital income; return on investment; a cluster of capital; the trend in tax differences; growth in information technology; falling transport costs; public spending.
VII. Translate into Russian the following sentences from the text:
1. In the EU, so the traditional argument goes, allowing tax rates to vary across jurisdictions would distort the entrepreneur's choice of location.
2. Such a "race to the bottom", the argument continues, would result in tax rates that are too low from a "social" standpoint.
3.This argument hangs on some weighty assumptions.
4. As integration deepened over the following two decades, the tax gap narrowed steadily.
5. Come the moment when capital becomes fully mobile around the world, tax harmonisation may have its day.
VIII. Summarise the article, using the words and phrases given below:
to stamp out "unfair" tax competition; to start a company; to lower taxes;
to bunch together; to encourage agglomeration; to do away with the benefits of agglomeration.
IX. Translate into English:
X. Study the text in several groups. Discuss the following statements:
XI. Meet as one group. One of you should lead the meeting. Comment on the following statement:
Come the moment when capital becomes fully mobile around the world, tax harmonisation may have its day.
Text 4
Customs Duties and VAT in Europe
Pre-reading task
Read the text, answer the question and say what problem it is devoted to.
What can help companies get the best deal on customs duties, foreign taxes and VAT?
Effective tax planning is one area that may help to reduce overall costs.
Customs duties are an obvious target for goods' exporters. Such steps as a careful examination of tariff classification can produce sizeable savings.
Considering how goods are valued for customs duty purposes allows a manufacturer to eliminate from the calculation of customs duty the costs of production, including labour, after the first sale for export, as well as any profit element.
It is also possible to strip out some of the cost components when determining the customs value. Some countries will allow certain cost inputs to be ignored, such as buying commissions, transport management fees, intellectual property license fees, and financing charges. If these rules are applied carefully, the cost of importing goods in foreign markets can be whittled down.
Although exports are zero-rated, the exporter has to be able to prove that the goods are exported. If the zero rating is lost because the documentation and systems are poor, it is an unnecessary cost. Customs will insist on proper proof of export.
This is particularly important in Europe because the VAT requirements for removal to another member-state differ from those outside the community.
Exported goods pass through customs controls when leaving the UK. The evidence required for a removal is often similar to the documentary proof required for an export but, in addition, the EC customer's VAT registration number is needed.
The international aspects of corporation tax planning are also important. While the UK corporation tax rate is just 30 per cent, the rate will be considerably higher for profits earned through branches or subsidiaries located in many overseas markets.
The UK's network of more than 100 tax treaties ensures that local tax is not paid on business profits where there is no permanent establishment.
A permanent establishment exists where there is a fixed place of business, such as a local branch or office through which the business is conducted.
Text-study
I. Learn the following words
To strip out – лишать, отнимать;
buying commission – комиссия на закупку;
fee – гонорар, вознаграждение;
to ensure – обеспечивать, гарантировать;
establishment – основание, создание, учреждение;
saving – экономия, сбережение;
overall – полный, всеохватывающий.
II. Answer the following questions:
1. What can help companies to reduce overall costs?
2. Why does the author say that foreign customs duties are an obvious target for goods' exporters?
3. What possibilities should be considered to cut costs overall?
4. What does the author mean when he says that other relief may apply in special cases?
5. How can VAT maximisation help?
6.Why is submitting proper proof of export particularly important in Europe?
7. What is the significance of the international aspects of corporation tax planning?
8. How can a taxable presence in certain countries be avoided?
9. Where does a permanent establishment exist?
III. Complete the sentences with suitable words from the box.
the customs value; zero-rated exports; a permanent establishment; local tax; tax planning.
1. … exists where there is a fixed place of business, such as a local branch or office through which the business is conducted.
2. It is also possible to strip out some of the cost components when determining … .
3. Although … are … , the exporter has to be able to prove that the goods are exported.
4. The UK's network of more than 100 tax treaties ensures that … is not paid on business profits where there is no permanent establishment.
5. Effective … is one area that may help to reduce overall costs.
IV. Give Russian equivalents for the following words and phrases used in the text:
customs duties; to cut costs; tax planning; high-tariff items; the "successive sales"; the supply chain; the costs of production; buying commissions; transport management fees; intellectual property license fees; financing charges; inward and outward processing; the evidence required for a removal; corporation tax planning.
V. Open the brackets using the suitable modal verbs (must, should, have to, can’t):
1. Every element of the business process (to examine) to see how the effects of the strong currency can best be countered.
2. Foreign customs duties are an obvious target for goods' exporters as any reductions, particularly on high-tariff items, (to go) straight to the bottom line.
3. Although exports are zero-rated, the exporter (to be able) to prove that the goods are exported.
4. Foreign tax (be) creditable against UK corporation tax liability, any excess of foreign tax over the UK liability represents an absolute cost.
5. The excess from any source in a particular year (to be) carried forward or applied to other sources of income.
VI.Complete the sentences choosing the suitable verbal (Infinitive or Gerund) from the brackets.
1. He stopped (working/to work)on the project after three months because of ill-health.
2. She was driving in a hurry but she stopped (answering/to answer) her mobile phone.
3. Did you remember (calling/to call) the customer yesterday?
4. I can’t remember (offering/to offer) you a replacement.
5. The sales assistant forgot (giving/to give) the customer a discount.
6. The customer forgot (completing/to complete) the five-year guarantee form.
VII. Summarise the text, using the words and phrases given below:
to maintain competitiveness; to reduce overall costs; to produce sizeable savings; to value goods for customs duty purposes; to eliminate sth from calculation; to determine the customs value; to ignore certain cost inputs; to apply rules carefully; to submit VAT returns monthly; to differ from the requirements outside the community; to be located in overseas markets; to generate high taxes locally; to represent an absolute cost; local tax on business profits; a fixed place of business; a local agent.
VIII. Translate into English:
1. Если строго следовать всем перечисленным правилам, то можно значительно снизить стоимость импорта товаров.
2. При определении таможенной стоимости возможно не учитывать некоторые составляющие затрат.
3. В Великобритании Ставка налога на прибыль корпораций составляет 30%, однако ставка налога на прибыль, полученную заграничными филиалами корпораций, будет значительно выше.
5. Несмотря на то, что экспортируются товары с нулевым рейтингом, таможня требует документы, подтверждающие факт вывоза товаров из страны.
6. Деятельность независимых агентов означает присутствие компании в стране, однако не облагается налогом на прибыль.
IX. Meet as one group. One of you should lead the meeting. Supply details to prove the following:
1. Every element of the business process needs to be examined to see how the effects of the strong currency can best be countered.
2. The international aspects of corporation tax planning are also important.
X. Work as two groups. Discuss the following statements:
1. Exporters who sell from a strong currency into a weaker one face an uphill battle to maintain competitiveness.
2. Local tax is not paid on business profits where there is no permanent establishment.
Unit 1.6. The European Central Bank
Text 1
The European Bank Supervision
Pre-reading tasks
The infant European Central Bank (ECB) has been bullied by almost everybody in its first 14 months in the monetary playground. It has been widely criticized for its lack of transparency and accountability, and for a flawed system of financial supervision. A new report published by the Centre for Economic Policy Research (CEPR.) agrees with most of the criticisms, but rejects the popularly prescribed remedies.
The ECB is certainly less transparent than the Bank of England, which has been set a clear inflation target by the chancellor, and publishes minutes of policy meetings and the voting records of individual members of its Monetary Policy Committee. The ECB, in contrast, sets its own target. Indeed, it has set itself two targets: for monetary growth and for inflation. Since these can conflict, it is hard for the markets to understand how the ECB reaches its decisions. The bank's refusal to publish voting records or minutes clouds matters further.
To increase transparency, most outsiders have urged the ECB to publish votes and minutes. But the authors of the CEPR report argue that, under its current set-up, the ECB is wise not to. Attributing votes and opinions to members from different countries would increase the focus on national differences, and so undermine the bank's credibility.
Blueprints developed at other central banks may not work at the ECB, because there is a tension within Europe between the desire for more integration and a reluctance to cede national political control. The CEPR report considers ways to reduce this tension. First, the ECB should be set an explicit inflation target by the European Parliament, so there can be no disagreement about the goal of monetary policy. Second, it recommends that the power of the executive board be increased relative to that of national central-bank governors, who are more likely to be influenced by national interests. At the moment, all 11 governors can vote, outweighing the six-member executive board. Better, perhaps, if only five, say, were allowed to vote at any time, with revolving terms - like the arrangements for district-bank presidents in America's Federal Reserve System.
The same tension between European integration and national control also poses problems for bank supervision. Banks are likely to become more pan-European as the single currency encourages cross-border mergers and greater cross-border exposures. A failure in one country could thus spill more quickly to other parts of Europe. Unfortunately, the existing framework is ill - equipped to handle a Europe-wide banking crisis, because supervision remains in the hands of national regulators. For its part, the ECB may not have enough information in a crisis, and it would find it hard to co-ordinate the activities of national regulators.
From an economic point of view, it would be best if bank supervision were centralized, either under the ECB or in a new independent European regulator.
Text-study
transparency – прозрачность
supervision - контроль
target - цель
urge - призывать
credibility - вероятность, возможность
failure – ошибка, просчет
to outweigh - перевешивать
|
the infant European Central Bank; transparency; accountability; national interests; inflation target; monitoring banks; executive board; co-ordinate; a market-oriented reform. |
From an economic point … view, it would be best if bank supervision were centralized, either under the ECB or in a new independent European regulator. However, the report argues that centralization is not politically feasible in the near future, as it would require governments to relinquish national control and deprive some central banks … one of their only remaining functions. Instead, it suggests the exact opposite: a truly decentralized approach, shifting the role … monitoring banks to the market … setting Europe-wide full disclosure rules. The idea, based partly on the "New Zealand model", is that … increasing information about the riskiness of banks, this would increase their incentives to act prudently and so reduce the risk … failure.
Fuller disclosure needs to be supported by measures to reduce … contagion effect of a failure by, for example, reducing uncollateralized interbank exposures among European banks. It would still need … backing of a lender of last resort, but … market-oriented reform might make banks better able to cope with … trouble.
The ECB has been lucky: it has not yet faced … financial crisis. It will one day. Better, therefore, to reform … system beforehand. Sadly, history shows that it always takes … crisis to persuade … policymakers to act.
First, the ECB should be set an explicit inflation target by the European Parliament, so there can be no disagreement about the goal of monetary policy. Second, it recommends that the power of the executive board be increased relative to that of national central-bank governors, who are more likely to be interested by national interests. At the moment, all 11 governors can vote, outweighing the six member executive board. Better, perhaps, if only five, say, were allowed to vote at any time, with revolving terms - like the arrangements for district-bank presidents in America's Federal Reserve System.
1.To increase transparency, most outsiders have urged the ECB to publish votes and minutes.
2. But the authors of the CEPR report argue that, under its current set-up, the ECB is wise not to.
3. Attributing votes and opinions to members from different countries would increase the focus on national differences, and so undermine the bank's credibility.
4. Second, it recommends that the power of the executive board be increased relative to that of national central-bank governors, who are more likely to be interested by national interests.
5. Banks are likely to become more pan-European.
a flawed system of financial supervision; minutes of policy meetings; the voting records; the Monetary Policy Committee; monetary growth; under its current set-up; blueprints; a reluctance to cede national political control; cross-border mergers: cross-border exposures; feasible; disclosure rules; uncollateralized interbank exposures; policymakers.
to be widely criticized for smth; to reject the popularly prescribed remedies; to set a clear inflation target; to cloud matters; to reach one’s decisions; to increase the focus on national differences; to undermine the bank's credibility; to develop blueprints; to cede political control; to reduce tension; to outweigh; to pose problems; to handle a crisis; to relinquish national control; to act prudently.
From an economic point of view, it would be best if bank supervision were centralized, either under the ECB or in a new, independent European regulator.
Text 2.
European Bank’s Monetary Policy
The drafters of financial laws in Brussels have a horrible three years ahead. One confides that on some mornings she would rather just hide her head under the duvet.
The challenge, apart from applying Alexandre Lamfalussy's recent recommendations on the regulation of securities markets in the European Union, is to turn 560 pages of guidance on international banking supervision into EU law. Not only that, the law must cover securities houses and investment firms as well as banks.
In January the Basle committee on banking supervision, which represents bank supervisors in big industrial countries, produced refined proposals that will revolutionize the supervision of the world's biggest banks. Instead of setting a fixed ratio of capital to so-called risk assets, the new framework, dubbed Basle 2, will allow the most sophisticated banks to use their own measures of risk to calibrate the amount of capital they must set aside.
Banks already use internal models to calculate market risk. They are developing new techniques to assess other risks they run, broadly known as operational risk. Supervisors will review this process continuously, adjusting capital requirements above the minimum the bank has calculated, with rewards for good behaviour. The goal is a safer, more market-driven - and hence more efficient - banking sector.
The previous Basle framework, set in 1988, laid down clear capital charges for credit exposures according to whether the borrower was a country, a bank, or a non-bank. It did much to encourage banks worldwide to build a sounder capital base, but it was crude. It tempted some banks, especially in Japan and South Korea, to make loans on the basis of the capital charge the loans attracted rather than of banking prudence, with disastrous results. Supervisors hope that Basle 2 will reduce such distortions.
The nightmare on the other side of the duvet is the task of translating a regime - which is still evolving and which is aimed at the top tier of international banks - into European law for all financial firms. Basle 2 must be turned into a third capital-adequacy directive (CAD 3), which may overlap with a bunch of other directives on solvency, large exposures and capital. These will need to be cancelled or amended. It must also have relevance to hundreds of small European banks and (mainly British) investment firms. Then the draft must go through the European Parliament and the European Council of Ministers before it becomes a directive; after which it must be written into the rulebook of each member state, often with new legislation.
Basle 2 has problems of its own, to do with the calibration of risk, and with fierce and sometimes philosophical arguments about the definition of operational risk. There is also the danger that banks will have to scramble for new capital in the teeth of some future recession. Studies are in progress, and horse-trading between the big banks and regulators has only just begun. So this is not a good time to be enshrining raw and untested concepts into European law.
The European Commission’s consultative document has the same ambitious plans for risk measurement, but it also highlights the special need for banks to finance small and medium-size enterprises (SMES), most of which have no public credit rating (Basle 2 relies on public ratings as well as ratings used internally by banks). An increased capital charge for Europe’s small banks, or heavier reporting requirements, could well raise the cost of borrowing for SMES in Europe.
Text-study
confide - (confide in) верить, доверять; полагаться
securities - ценные бумаги
ratio - соотношение
refine - повышать качество
infringe - нарушать, преступать (закон, обязательство)
cancel - аннулировать, отменять; отказываться (от обязательств) to cancel debts — аннулировать долги
|
the regulation of securities market in the European union; the Basle committee on banking supervision; market risk; operational risk, capital-charges; public ratings; banking sector, loans, distortions |
Continental fund managers tend to be owned by … banks, with stacks of capital, whereas Britain has scores of independent fund-management firms with little capital behind them. A threatened charge for … operational risk, based on the amount of funds under management, might be out of proportion to … risks many firms actually run. Or so argues the Association of Private Client Investment Managers & Stockbrokers in London. It depends on whether … firm gives advice to clients, for which it can be sued, or bears the risks of clearing and settling securities. If neither case applies, the case for putting up more capital is less strong. Yet such niceties are not written into either the consultative document or Basle 2. The aim is to produce a draft directive by October this year. However, other groups are also likely to lobby the Commission and the European Parliament for … special treatment. That could slow things down greatly.
In addition, there are fears that … directive will not be flexible or speedy enough to match what is proving to be a process of continuous evolution of … new Basle proposals.
Eurocrats wonder whether, after a battle over applying comitology to securities regulation, there will be the appetite to fight for it in CAD 3. It may nonetheless be the only sensible way to recalibrate capital ratios and update concepts as the uncertain sciences … measuring credit and operational risk evolve. "What we need", mused a British regulator this week, "is a rolling directive."
British regulators are concerned that the European Commission may not meet the deadline, leaving London-based banks unable to apply Basle 2 in step with the Americans, Japanese and other non-EU banks. They are working on an answer. Happily, Britain's Financial Services Authority has always insisted … capital ratios well above the existing EU minimum of 8%. So long as banks reach that 8% floor, they can start applying Basle 2 principles to any capital charge … the minimum, without infringing existing EU law. Whether continental banks, notably in France and Germany, will be able to do the same is open to question: they have long had a habit of sailing quite a bit closer to the regulatory minimum. Many of those affected feel it is crazy to write Basle 2 into European law when it is still half-cooked. The target of the Basle committee is the internationally active banks.
1. The European Commission’s consultative document, adapted from Basle 2, invites comment by May 31st.
2. It has the same ambitious plans for risk measurement, but it also highlights the special need for banks to finance small and medium-size enterprises (SMES), most of which have no public credit rating (Basle 2 relies on public ratings as well as ratings used internally by banks).
3. An increased capital charge for Europe’s small banks, or heavier reporting requirements, could well raise the cost of borrowing for SMES in Europe.
4. There are fears that the directive will not be flexible or speedy enough to match.
5. It may nonetheless be the only sensible way to recalibrate capital ratios.
Instead of setting a fixed ratio of capital to so-called risk assets, the new framework, dubbed Basle 2, will allow the most sophisticated banks to use their own measures of risk to calibrate the amount of capital they must set aside. The previous Basle framework, set in 1988, laid down clear capital charges for credit exposures according to whether the borrower was a country, a bank, or a non-bank.
Studies are in progress, and horse-trading between the big banks and regulators has only just begun. So this is not a good time to be enshrining raw and untested concepts into European law. British regulators are concerned that the European Commission may not meet the 2004 deadline, leaving London-based banks unable to apply Basle 2 in step with the Americans, Japanese and other non-EU banks.
The European Commission's consultative document has the same ambitious plans for risk measurement, but it also highlights the special need for banks to finance small and medium -size enterprises, most of which have no public credit rating.
Согласно правилам ЕС, отношение капитала к активам не должно быть менее установленного минимума в 8%. Вопрос о том, смогут ли банки на континенте, а именно в Германии и Франции, следовать этому принципу, остается открытым.
В январе 2001 года Базельский комитет по банковскому надзору выдвинул несколько усовершенствованных предложений, которые способны перевернуть всю систему надзора за крупнейшими банками.
В настоящее время банки разрабатывают методы оценки операционного риска.
Существую опасения, что подготовка проекта директивы займет много времени и замедлит работу по составлению документов в рамках соглашения «Базель - 2».
A threatened charge for operational risk, based on the amount of funds under management, might be out of proportion to the risks many firms actually run. By writing half-formed rules on capital adequacy into law, Europe is putting the cart before the horse.
Text 3
Does Euro Prove Top Currency?
Pre-reading tasks
The Euro proved the most popular currency in the international bond markets. Economists attribute the euro's success on the debt markets to the growth of liquid capital markets in Europe.
"The US dollar has punched well above its weight in the financial markets over the last 30 years because it had no competitor," said David Knott, head of fixed-income research at Deutsche Bank. "But now borrowers can choose between two markets."
Many analysts dismissed the euro's popularity in early 2010. They said volumes had been artificially lifted by the fact that many European companies wanted to establish a benchmark in the euro for public relations purposes.
However, the volume of bonds launched by US companies in euros has outweighed those issued by European companies during the year. This is in part because interest rates in the euro-zone are much lower (at 3 per cent) than in the US (5.5 per cent), meaning that US companies can borrow at cheaper rates in euros.
"There is a connection between the weakness of the euro and its popularity among borrowers - namely, low interest rates." said Avinash Persaud, head of global research at State Street Bank. "The euro’s weakness against the dollar may also have been helped by the fact that US borrowers will swap the proceeds of their bond issues by selling euros for dollars."
Bankers say the trend, which has been boosted by the decision of European investors to diversify away from domestic government bond markets since their domestic currencies were abolished, will continue during the next 12 months. In particular, non-European central banks are expected to step up their purchase of euro-denominated securities to rebalance foreign exchange reserves away from the US dollar.
US interest rates are likely to continue to rise during the next few months, according to most forecasts. This would increase borrowing costs for US companies, many of which would attempt to reduce costs by the euro.
"Borrowers around the world now have two markets to choose from and they will generally decide on the basis of cost," a banker said.
Text-study
debt - долг
launch - вводить
dismiss – смещать
rate - уровень
borrow – заимствовать
swap - замена
tap – удаление
|
the foreign exchange market; the international bond markets; the single currency; the debt markets; domestic currency; foreign exchange reserves. |
1. With the equivalent of almost $600bn worth of bonds launched in euros during the past 12 months, the single currency pipped the US dollar to the post as the denomination of choice for borrowers.
2. Both currencies accounted for about 45 per cent of all bond issuance in 2009, compared with less than 10 per cent for sterling, the third most popular currency.
3. The euro's weakness against the dollar may also have been helped by the fact that US borrowers will swap the proceeds of their issues by selling euros for dollars.
4. Economists attribute the euro's success on the debt markets to the growth of liquid capital markets in Europe.
5. The trend has been boosted by the decision of European investors to diversify away from domestic government bond markets.
Investors, it seems, cannot have too little of …euro. On May 3rd the currency fell below 90 cents for … first time, nearly a quarter below … rate at which it was launched at … beginning of last year. Pessimism about … Europe's economic performance compared with … America's is partly to blame. But many also blame the woeful performance of the euro on its … guardian, the European Central Bank (ECB).
The ECB, critics allege, lacks … transparency both in its policy goals and in … way it makes interest-rate decisions. Many claim that conflicting statements by officials, either on the euro or on … interest rates, have confused financial markets and undermined the ECB'S credibility. America's Federal Reserve, in contrast, is much more transparent and knows exactly what it is doing.
Yet this is all a bit odd. The ECB has had some communication problems, certainly. But the charges against it - … lack of transparency, unclear goals and internal divisions - apply as much, if not more, to the Fed.
To prove the most popular currency in the international bond markets; to launch bonds; to pip the US dollar; to establish a benchmark in the euro for public relations purposes; to step up the purchase of euro-denominated securities; to increase borrowing costs; to tap the euro.
1. Объем еврооблигаций, выпущенных американскими компаниями, намного превосходит количество таких облигаций, эмитированных в Европе.
2. Данная ситуация в некоторой степени определяется уровнем процентных ставок в еврозоне, где американские компании имеют возможность осуществлять займы в евро под меньший процент.
3. Причина роста популярности евро заключается в том, что новая валюта позволит многим инвесторам диверсифицировать свои вложения, не ограничиваясь государственными ценными бумагами.
There is a connection between the weakness of the euro and its popularity among borrowers - namely, low interest rates.
Text 4.
The ECB’s Credibility
Take the claim that the ECB'S monetary-policy strategy is confusing. It has, in effect, two targets: one for inflation and another for money-supply growth. What if money and inflation move in different directions? But at least the ECB has a clearly defined mandate of price stability. The Fed does not have an inflation target at all. So the basis of the Fed's interest-rate decisions is far from clear.
What of the second charge, that the ECB'S decision-making is opaque? It is true that the ECB does not publish minutes of its policy meetings; the Fed, in contrast, releases summary minutes about six weeks later. But the monthly press conferences, at which Wim Duisenberg, the ECB'S president, explains policy decisions, come close to providing an instant summary. Arguably, this is better than releasing carefully edited minutes weeks later.
The Fed never holds press conferences after interest-rate changes and, unlike Mr. Duisenberg, Alan Greenspan, its chairman, never gives on-the-record interviews. To make things even less clear, Mr. Greenspan has turned the language of central banking into an art form. "I know you believe you understand what you think I said, but I am not sure you realise that what you heard is not what I meant," he told some Wall Street economists a few years ago.
The third main accusation is that the ECB'S policy board is disunited. Yet since monetary policy is an inexact science, such divisions are perfectly healthy. The Fed is equally divided. Only the dominance of" Mr. Greenspan has prevented a revolt by Fed associates who have been uncomfortable with the recent looseness of monetary policy. Two notable hawks are Larry Meyer, a Fed governor, and Jerry Jordan, president of the Cleveland district Fed. In speeches and articles, both have given the impression that they think interest rates should have been increased more rapidly.
In the end the ECB and the Fed will be judged by their ability to keep inflation under control. On current evidence the ECB is doing the better job. In the 12 months to March, consumer prices in the euro area rose by 2.1%, just breaching the ECB'S medium-term goal of 2%. But the core rate of inflation (excluding oil and food) was only 1.1%. In contrast, American inflation jumped to 3.7%; even core inflation is running at 2.4%. First-quarter figures, which showed an alarming jump in labour costs and annual growth in domestic demand of 8%, suggest that inflation is likely to pick up.
You might conclude that the ECB is the more credible of the two central banks. Unfortunately, it has two disadvantages. It has no track record, so it has to try harder to explain its decisions. And it does not have at its helm the saintly Alan Greenspan.
Mr. Greenspan has undoubtedly been an excellent central banker. But he has also been lucky: his time at the Fed has coincided with a worldwide fall in inflation. He has been heavily criticized by some (The Economist among them) for not doing more to prevent a financial bubble and its accompanying financial and economic imbalances.
Now investors remain confident that he will be able to engineer a soft landing and that America's economy will continue to outpace Europe's. The evidence of rising inflation, and hence the need for interest rates to rise by more than the markets expect, will make that task harder. And if Mr. Greenspan does not manage it, investors may soon start treating the dollar with the disdain that they now reserve for the euro.
Text-study
accusation - обвинение
revolt - восставать, бунтовать
dominance - влияние; преобладание
to claim – заявлять, утверждать
interest-rate – процентная ставка
to outpace – перегонять, опережать
|
lack, transparency; to make interest-rate decisions: the ECB's credibility; monetary-policy strategy; inflation target; core inflation; financial bubble. |
Mr. Greenspan has undoubtedly been … excellent central banker. But he has also been lucky: his time at the Fed has coincided with … worldwide fall in inflation. He has been heavily criticized by some (The Economist among them) for not doing more to prevent … financial bubble and its accompanying … financial and economic imbalances.
His halo may yet slip, but for now investors remain confident that he will be able to engineer … soft landing and that America's economy will continue to outpace Europe's. … evidence of rising inflation, and hence … need for interest rates to rise by more than … markets expect, will make that task harder. And if Mr. Greenspan does not manage it, … investors may soon start treating … dollar with …he disdain that they now reserve for … euro.
1. The Fed never holds press conferences after interest-rate changes and, unlike Mr. Duisenberg, Alan Greenspan, its chairman, never gives on-the-record interviews.
2.To make things even less clear, Mr. Greenspan has turned the language of central banking into an art form.
3. "I know you believe you understand what you think I said, but I am not sure you realise that what you heard is not what I meant," he told some Wall Street economists a few years ago.
4. The evidence of rising inflation, and hence the need for interest rates to rise by more than the markets expect, will make that task harder.
5. He has been heavily criticized for not doing more to prevent a financial bubble.
Снижение показателей экономического развития в Европе часто связывают с деятельностью Европейского Центрального Банка. Утверждают, что по сравнению с Федеральным Резервом США Европейскому Центральному Банку не хватает открытости и ясности целей. Недостатком считается то, что Банк отдельно устанавливает две контрольные цифры: контрольную цифру роста инфляции и контрольный показатель роста денежной массы. Однако следует учитывать, что Федеральный Резерв вообще не устанавливает никаких контрольных показателей, что позволяет говорить о более чем неопределенной основе для принятия решений о величине процентных ставок. В конечном счете, способность обоих банков удерживать инфляцию под контролем станет краеугольным камнем в оценке результатов их деятельности.
to allege; to make interest-rate decisions; to undermine the ECB's credibility; to confuse financial markets; to release summary minutes; to hold press conferences; to give on-the-record interviews:
to keep inflation under control; to prevent a financial bubble; to engineer a soft landing; to outpace smb/smth.
Revision of Chapter 1
Test
Put the verbs in brackets in the correct form
1. The European Commission will be interested in (to reduce) taxes.
2. People have to choose the economical way of living provided the
economic situation in the country (to be) unfavourable.
3. One of the important tasks of a firm is to obtain the maximum amount of a
commodity (to use) any given quantity of input.
4. Some branches of economy such as agriculture greatly (to depend on) climate.
5. It is known that the same consumers (to prefer) to buy less goods but of higher quality.
6. The goods price (not to vary) greatly within a particular market as all sellers (to impose) practically the same prices.
7. In planned economies government intervention (to result in) total control over resources allocation and output consumption.
8. Different sweets and chocolates (to know) as substitute goods for sugar.
9. Mixed type of economy with a rather high degree of government inter vention is characteristic of some (to develop) countries such as the USA, Canada, Japan etc.
10. On private farm land, buildings and all the profits (to earn) are (to own) by the farmer.
11. In order to develop the small-firm sector of the economy, the British govern ment (to help) new firms with initial development problems and (to provide) financial help to small firms.
12. (To employ) workers as well as those unemployed (to make up) labour force.
13. Every day money (to transfer) from one bank to another in thousands of cities.
14. Expensive goods are heavily (to tax) for the purpose of (to raise) money for poorer con sumers.
15. Efficiency (to be) the relationship between factor inputs and outputs of goods and services.
16. The contribution (to make) to the GDP by the various sectors of the economy can (to consider) in a variety of ways.
17. The tenant (to find) himself to be at a disadvantage.
18. Chemical industry (to manufacture) fertilizers for (to farm).
19. Land (to find) to be as a whole used for farming near big cities.
20. Land property can be both (to lease) and (to purchase).
21. Various economic mechanisms may be (to employ) to allocate resources.
22. The government (to expect) aggregate demand (to increase) due
to cuts in taxes.
23. It is hard (to determine) the eventual results of a decrease in the popula tion size.
24. High taxes (to levy) on expensive goods for the purpose of (to raise) money for the poor.
25. Economists (to believe) land taxation (to have) some advantages as well as disadvantages.
26. In some industrial countries producers don't (to rely on) the government regu lation and make all decisions themselves.
27. The money a producer (to earn) should (to compensate) for all his expenses and leave him with some profit.
28. Restrictions, as well as regulations in the economy (to be) the main characteristics of a command economy.
29. (To increase) output by one unit we shall have the change in the total cost known as marginal cost.
30. The quantity of goods (to consume) by an individual is restricted by the total quantity of money he (to earn).
31. The producers have to increase the total output as the demand (to grow).
32. (To solve) the problem of choice, a consumer (to want) to satisfy his demands as much as possible.
33. As consumer demand (not to be) constant at different markets, the goods prices (to vary) as well.
34. The development of national economy (to be based) on the laws and principles which are of special interest to economics (to belong) to a group of social sci ences.
35. One of the producer's tasks is (to choose) the level of output that (to maxi mize) his total economic profit .
36. People's demands, as well as their ability to produce goods and services (not to be) constant.
37. The theory of supply (to show) that an increase in production cost (to result in) out put level.
38. Profit (to calculate) in terms of revenue and costs. The latter (to include) all expenses for (to produce) a good.
39. The demand for normal goods always rises with the increase in consumer incomes.
40. The increase in quantity (to demand) is followed by an increase in quantity (to sup ply).
41. The purpose of the Department of Employment in the UK is the efficient use of labour resources by (to run) local employment offices which (to help) workers find jobs.
42. "Ideal" efficiency is reached when the largest possible output (to produce) from a given quantity of factor inputs (to use) available techno logy.
43. The government (to expect) larger aggregate demand (to result from) cuts in taxes.
44. Economists suppose forces of demand and supply (to determine) the prices of goods and services.
45. Economic rent is money (to pay) for a factor of production which is over the minimum amount (to require) to keep it in its present condition.
46. The problem is that whereas demands are limitless, the resources available at one time are limited in supply.
47. Non-renewable resources (to comprise) ores and most fuels.
48. Employed workers as well as those unemployed (make up) labour force.
49. The contribution (to make to) the GDP by the various sectors of the economy can be considered in a variety of ways.
50. The share of national income (to spend) on national defence varies from country to country.
Chapter 2
MANAGEMENT
Unit 2.1. Types of Businesses
Text 1.
Types of Businesses in the U.K.
1. Suggest a purpose for reading the text.
2. What can the text be about? Give your own predictions.
Most businesses in the United Kingdom operate in one of the following ways:
• sole trader
• partnership
• limited liability company
• branch of a foreign company.
The sole trader is the oldest form of business. There are many one-man owners, for example: a fanner, doctor, solicitor, estate agent, garage man, jobber, builder, hairdresser etc. The partnership is a firm where there are a few partners. They are firms of solicitors, architects, auditors, management consultants etc. The names of all the partners of the firm are printed on the stationery of a partnership. The most common type of company in the United Kingdom is the limited liability company. At the end of the name of such a company the word Ltd. is used. For example: Wilson and Son Ltd. Many of such companies are joint-stock companies owned by shareholders. Limited liability companies are divided into public and private ones. Only public companies may offer shares to the public at the stock exchange. The names of such companies end in p.l.c. which stands for “public limited company”. For instance: John and Michael p.l.c. Private limited companies may not offer shares to the public. The names of such companies end simply in Ltd. A branch of a foreign company is a part of a company incorporated outside Great Britain but acting under the law of the U.K. Usually these companies act in the U.K. under their normal foreign names.
All partnerships and companies are regulated by the law of the U.K. or by Acts of Parliament, and are to be registered with the Registrar of companies. In order to be registered they are to deliver a few documents, namely:
• a certified copy of the company's charter
• statute
• memorandum and others. When a company is registered a certificate of incorporation is issued by the Registrar. Here is one of the cerificates:
Duplicate for the file No 989855. Certificate of Incorporation
I hereby certify that the Goldflelds, Limited is this day incorporated under the Companies Acts, 1962 to 2010, and that the Company is Limited. Given under my hand at London this tenth day of July two thousand and ten.
Fees and Deed Stamps 15,200, 00
Stamp Duty on Capital 13,510.00
Registrar of Joint Stock Companies
Certificate received by Stephen Low
65 London Wall, E.C.,
Date 13 May, 2010
Text-study
I. Learn the following words
partnership товарищество
liability ответственность
limited liability ограниченная ответст венность
limited liability компания с ограни-
company ченной ответствен ностью
solicitor адвокат
estate недвижимое имущество
estate agent агент по купле-продаже недвижимого имущества
jobber маклер, комиссионер
stationery канцелярские бланки
joint-stock company акционерная компания
shareholder держатель акций, акционер
exchange биржа
stock exchange фондовая биржа
to incorporate зарегистрировать как корпорацию
under the law по закону
II. Answer the following questions:
1. What is the most common type of company in the U.K.?
2. Are all limited liability companies joint-stock companies?
3. What can you say about the types of the following companies:
Fine Furniture Ltd.
General Foods p.l.c. ?
III. Translate into English:
1. Деятельность товариществ и компаний в Вели кобритании регулируется законом, т.е. актами парламента.
2. Они должны быть зарегистрированы официальным регистратором.
3. Они должны представить несколько документов.
4. Когда компания зарегистрирована Регистратором, выдается свидетельство о регистрации.
5. Настоящим свидетельствуется о регистрации ком пании, а также то, что компания является компа нией с ограниченной ответственностью.
IV. Paraphrase the sentences using Gerund with the preposition.
Example: I don’t want to stay at that hotel. – I am against staying at that hotel.
1. He doesn’t like to complain. He is against …
2. When you have listened to that report, you will give up smoking. After…
3. I kept you waiting and I apologize for it. I apologize…
4. I am not exaggerating, but this is the best novel I have ever read. Without…
5. She would never envy your success. She is above…
6. He didn’t pay the bill and left the restaurant. He left…
7. I often walk. I am used to it. I’m used to…
8. They studied hard and soon mastered the fundamentals of the Economics.
V. Translate into Russian using the absolute participial construction.
Example: All the questions being settled, the talks were over. – Так как все вопросы были решены, переговоры были закончены.
1. The treaty having been signed, trade was at once resumed.
2. Business lunch being over, we assembled in the drawing room.
3. The fifth of June arriving, they shipped the first consignment.
4. His directions to the porter finished, he went to his hotel room.
5. This being understood, the confer ence was over.
6. All the necessary preparations having been made, the contracting parties started negotiations.
7. The questions being settled, the managers signed the contract.
8. The Government has now exceeded even this, its military budget being the biggest in British history.
9. The project abandoned, the leadership in this field passed to our main competitor.
10. It being pretty late, they decided to postpone their visit.
VI. Give the Russian equivalents for the English words and expressions:
a certified copy; company's charter; statutes; memorandum; fees; deed stamps; stamp duty on capital; sole trader; farmer; doctor; solicitor; estate agent; garage man; jobber; builder; hairdresser partnership; solicitors; architects; auditors; management consultants limited liability company; joint - stock limited liability company; public limited liability company; private limi ted liability company; Ltd.; p.l.c; shares a company incorporated outside Great Britain; a company registered in Great Britain; a company acting under the British law; a company acting under its normal foreign name.
VII. Sum up what the text says about
sole traders
partnerships
public limited companies
private limited companies
branches of foreign companies
the incorporation procedure
VIII. Translate the text of the Certificate of Incorporation into Russian in writing.
Text 2
Forms of Businesses in the USA.
Businesses in the U.S.A. may be organized as one of the following forms:
• individual business
• general partnership
• limited partnership
• corporation
• alien corporation.
An individual business is owned by one person. A general partnership has got several owners. They all are liable for debts and they share in the profits. A limited partnership has got at least one general owner and one or more other owners. They have only a limited investment and a limited liability. A corporation is owned by persons, called stockholders. The stockholders usually have certificates showing the number of shares which they own. The stockholders elect a director or directors to operate the corporation. Most corporations are closed corporations, with only a few stockholders. Other corporations are owned by many stockholders who buy and sell their shares at will. Usually they have little interest in management of the corporations. Alien corporations are corporations of foreign countries. All the corporations are to receive their charters from the state authorities. The charters state all the powers of the corporation. Many corporations try to receive their charters from the authorities of the State of Delaware, though they operate in other states. They prefer the State of Delaware because the laws are liberal there and the taxation is rather low. Such corporations, which receive their charters from an outside state are called foreign corporations. All the corporations require a certificate to do business in the state where they prefer to operate.
There are several relationships that may grow up between business in Great Britain and the United States of America. They are as follows:
• takeovers
• mergers
• amalgamation
• integration
• combination
• absorption
etc.
No agreement has been reached among financial experts as to the precise difference in meaning between the terms. The most popular are takeovers and mergers. In a takeover one company buys a controlling interest in another company by acquiring at least 51% of its shares. The company does this by making a direct approach to the company's shareholders for their shares. The company intending to take over will not necessarily consult the company it is taking over. The Stock Exchange Council in London has drawn up a code of practice to regulate takeovers to prevent some abuses. One such abuse is secret dealing when a company wishes to take over secretly and buys its shares secretly. Another abuse is insider dealing thanks to information used for personal profit. With a merger, two or more companies involved will consult with each other previously. They try to make a certain agreement on their merger to the satisfaction of both companies.
Text-study
I. Learn the following words
incorporation корпорация, регистрация, оформление
a certificate of incor- свидетельство о ре-
poration гистрации корпорации
incorporated зарегистрированный как корпорация
registrar регистратор, архивариус
to certify удостоверять
certified удостоверенный
charter учредительный документ
statute(s) устав
hereby настоящим, этим
fee сбор
deed stamp печать о совершении дела
stamp duty гербовый сбор
liable for... ответственный за...
to profit получать прибыль
stockholder акционер
at will по желанию
state authorities (Am.) власти штата (ам.)
state authorities (E) государственные власти (европ.)
taxation налогообложение
takeover поглощение
to take over поглощать
merger слияние
to merge сливаться
amalgamation слияние компаний
absorption слияние, поглощение
controlling interest контрольный пакет акций
to acquire приобретать
to make a direct обратиться непосредст-
approach to smb. венно к кому-либо
to draw up составлять
insider член организации
the companies involved вовлеченные компании
II. Answer the following questions:
1. What is a takeover?
2. What abuses do takeovers often involve?
3. What organization in the U.K. take care to prevent such abuses?
4. How are takeovers regulated?
5. In what way are mergers different from takeovers?
6. What other forms of companies in the USA, combining their ca pital are mentioned in the text?
7. Which of the six forms are the most popular?
III. Sum up what the text says about:
individual businesses
general partnerships
limited partnerships
corporations
alien corporations
foreign corporations
charters and certificates
IV. Translate into English:
1. Владельцы генеральных товариществ несут ответ ственность по долгам и участвуют в распределении прибыли.
2. Владельцы ограниченных товариществ делают огра ниченные инвестиции и несут ограниченную от ветственность.
3. Акционеры обычных корпораций мало интересуются вопросами управления корпорации.
4. Акционеры различных корпораций обычно имеют сертификаты, где указано количество акций, ко торое они имеют.
5. Большинство корпораций — корпорации закрытого типа с небольшим числом акционеров.
6. Корпорации должны получить регистрационные документы от властей штата.
7. Корпорации должны получить сертификат (лицен зию) в том штате, где они хотят функциони ровать.
8. Среди финансистов нет единого мнения о том, чем точно каждый термин отличается от других.
9. При поглощениях одна компания покупает кон трольный пакет акций другой компании, прио бретая не менее 51% ее акций.
10. Компания осуществляет поглощение, устанавливая прямой контакт с акционерами.
11. Она необязательно консультируется с компани ей, которую поглощает.
12. Совет Фондовой биржы Лондона выработал Правила для регулирования поглощений с целью исключения злоупотреблений.
V. Translate into Russian:
general partnership, to be liable for debts, to share in profits
limited partnership, to have a limited investment, to have a limited liability
corporation, closed corporation, stockholders, certificates showing the number of shares they own, stockholders of ordinary corporations, to buy and sell shares at will, stockholders of ordinary corporations, have little interest in management of corporations, alien corporations are corporations of foreign countries.
VI. Complete the following sentences from the text and translate them into Russian:
1. One such abuse is...
2. Another abuse is...
3. With a merger, the two companies involved...
4. They try to make a certain agreement...
VII. Substitute the attributive clauses by participial constructions (Participle II).
Example:
The goods which were sent by the firm are of high quality. - The goods sent by the firm are of high quality.
1. The speaker who was infuriated by the interruptions refused to continue his speech.
2. The contract which was signed by our President confirmed the terms of payment.
3. The single room which is reserved by you will be cleaned in 10 minutes.
4. I'm very interested in the position which is discussed now, and I hope you will
consider me as a serious candidate.
VIII. Translate the sentences with Complex Object.
Example: We want Caferoma to deliver a well-known brand of coffee in June. – Мы хотим, чтобы компания «Каферома» произвела поставку кофе известного бренда в июне.
1. We want "Green & Co" to deliver the goods in May.
2. You expect the contract to be signed today, don't you?
3. Do you want the design of the model to be changed?
4. I don't know why they made the employees show the compressors in operation.
5. I expect the tests of computers to be made soon.
IX. Work in several groups. Compare two previous texts on the following types of business in the UK and the USA and their incorporation requirements:
sole traders — individual businesses
partnerships — general and limited partnerships
limited liability compa- corporations (closed
nies (public and private) — and ordinary)
branches of foreign companies — alien corporations
charter, statutes, memorandum, — charter and certificate
delivered by the company issued by the state
and certificate of incorporation, authorities
issued by the Registrar
Unit 2.2. The staff of a company
Text 1.
Directors and Managers
As a rule a private company has only one director. A public company must have at least two directors. Usually there is no upper limit on the number of directors a public company may have. The company's note-paper must list either all or none of the names of its directors. A limited liability company or a corporation is headed by the board of directors elected by shareholders. The directors appoint one of their number to the position of managing director to be in charge of the day-to-day running of the company. In large organizations managing director is often assisted by a general manager. Some companies also have assistant general managers. Many directors have deputies who are named deputy directors. Directors need not be shareholders. They are responsible for the management of a company's affairs. They are not subject to any residence or nationality restrictions. Big companies have many managers heading departments. They are all responsible to the managing director. Among varions departmental managers the following can be mentioned:
• sales manager
• personnel manager
• chief manager
• district manager
• sales and marketing manager
• industrial engineering manager
etc.
Here is a business card of a businessman:
Racal Acoustics Limited
Colin Taylor
Sales and Marketing Manager
11, Hailsham Drive, Harrow, tel: 081-427-7727
Middlesex HA 1, England telex: 92662 fax: 081-477-0320
There are two types of secretaries: company secretaries and private secretaries of executives. Every company, both in Great Britain and the United States, is required, under the law, to have a company secretary. In the case of private companies the directors are free to appoint any suitable person for this position. But in the case of public companies the company secretary must be a properly qualified person, a member of a recognised institute or association. He or she may be one of the directors of the company. But if the company has only one director, the director cannot also be the secretary. The company secretary is the chief administrative officer of the company. He or she is normally responsible for the company, to comply with company law. The correspondence of the company secretary is particularly concerned with shareholders' meetings, board meetings and various forms that must be sent outside. The company secretary may also deal with enquiries for information concerning other firms, although the accounts department often handles these matters. Administrative questions come into the sphere of the company secretary, under instructions of the board of directors. As to private secretaries of executives they are practically per sonal assistants of executives. A secretary answers telephone calls, receives messages and makes telephone calls on the instruction of her boss. A secretary also helps in organization of meetings and con ferences, entertainments of visiting customers, suppliers and other associates of the firm. She also deals with all the correspondence of her boss. Secretaries write letters on making appointments or travel arrangements, letters of introduction, congratulation or con dolence, invitations and replies to invitations. Secretaries use various office equipment, like microcomputers, fax machines, photocopying machines and others.
Text-study
I. Learn the following words.
to list вносить в список
board совет
board of directors совет директоров
to elect выбирать
to appoint назначать
to be in charge of smth. заведовать чем-либо, отвечать за что-либо
to run the company управлять компанией
assistant manager помощник управляющего
deputy заместитель
deputy director заместитель директора
deputy minister заместитель министра
affairs дела
to be subject to smth. подпадать под действие чего-либо
personnel персонал
business card визитная карточка
executive руководитель
recognised признанный
to comply with smth. соответствовать чему-либо
to be concerned быть связанным с чем-либо
with smth.
enquiry запрос
accounts отчет ность
to handle the matter заниматься данным вопросом
associate партнер, компаньон
to make an appointment назначать встречу
arrangement соглашение, догово ренность
condolence соболезнование
II. Answer the following questions:
1. How many directors can a private company have? And what about a public company?
2. Who heads a limited liability company?
3. How is managing director appointed? What are his duties?
4. Who is general manager?
5. What is assistant general manager?
6. What is deputy manager?
7. What is the status of a director?
8. What do managers usually head?
9. What managers are there in companies?
10. Whose business card was quoted? What information did it give?
III. Translate into Russian:
1. The company's note-paper must list either all or none of the names of its directors.
2. Directors need not be shareholders.
3. They are responsible for the management of a com pany's affairs.
4. They are not subject to any residence or nationality restrictions.
IV. Sum up what the text says about:
directors of private companies
directors of public companies
directors of limited liability companies, their
assistants and deputies
managers
the business card of Mr. Taylor.
company secretaries
private secretaries
V. Complete the following sentences as in the text:
1. There are two types of secretaries...
2. Every company, both in Great Britain and the United States...
3. In the case of private companies...
4. But in the case of public companies...
5. But if the company has only one director...
6. The company secretary is the chief...
7. The correspondence of the company secretary is particularly concerned with...
8. The company secretary may also deal with enquiries...
9. As to private secretaries of executives...
10. A secretary answers...
11. A secretary also helps in organization...
12. She also deals with all the correspondence...
13. Secretaries write letters...
14. Secretaries use various office equipment, like...
VI. Translate into Russian:
1. He or she is normally responsible for the company, to comply with company law.
2. He is particularly concerned with various forms that must be sent outside.
3. Although the accounts department often handles these matters.
4. Administrative questions come into the sphere of the company secretary, under instructions of the board of directors.
5. As to private secretaries of executives they are prac tically personal assistants of executives.
6. A secretary answers telephone calls, receives messages and makes telephone calls on the instruction of her boss.
7. Secretaries write letters on making appointments or travel arrangements, letters of introduction, congratu lation or condolence, invitations and replies to invita tions.
8. Secretaries use various office equipment, like micro computers, fax machines, photocopying machines and others.
VII. Translate into English.
1. Термины «менеджмент», «менеджер» стали очень популярным в России с начала 90-х годов в связи с переходом к рынку.
2. В зарубежной практике английское «менеджмент» употребляется применительно к фигуре менеджера, действующего в определенной организации – предприятии, фирме.
3. Разделение управления и менеджмента по содержанию вполне оправдано, так как управленческая деятельность является более широкой, чем менеджерская.
4. С позиций теории управления предприятие и фирма являются организациями.
5.Менеджер осуществляет координацию деятельности работников и движение организации к поставленным целям.
6.Менеджмент необходим для достижения высоких результатов деятельности, которые, однако, он не сводятся только к выпуску продукции или оказанию услуг.
7.Менеджмент – это деятельность, направленная на эффективное и производительное использование организационных ресурсов, обеспечивающая достижение целей организации, рост эффективности и производительности.
8. Качество менеджмента в организации влияет на общественную эффективность - повышает ее или, напротив, снижает и, в конечном счете, характеризует использование ресурсов страны.
9. Неэффективный менеджмент приводит к расточительству в потреблении имеющихся ресурсов, что особенно недопустимо по отношению к человеческим ресурсам.
VIII. Meet as one group. One of you should lead the meeting.
1. Say what you know about the work of secretaries in Russia.
2. Say what you like and what you dislike in the work of secretaries in Russia.
3. Say how much they are paid monthly now, as far as you know.
IX. Role-Play
Divide into groups of three or four. You are the top management of a department store. You want to attract more young people to the store department. You must decide:
- what young people like about department stores
- what young people do not like about department stores
- what you would have to do to attract young people to the store (new departments, new products, new services)
Think of department stores you go to.
One of you present a brief report to the rest of the class on what you have decided.
Text 2
Leadership
Most people would agree that managers are leaders. They have to be able to influence the behavior of other people, in order to achieve the objectives of the organization.
What makes a good manager?
The earliest studies of managerial leadership concentrated on the personality of the manager. These studies tried to identify the aspects of personality that were associated with leadership. These aspects of personality are called traits. Traits can be physical characteristics, such as height, or they can relate to Intelligence, personality or social behavior. Typical personality traits that were examined are shown below.
- Intelligence, the leader should be Intelligent, but not a genius. Leaders are good at solving complex problems.
- Initiative, the leader should be Independent. Leaders are good at taking action when this is needed.
- Self-assurance, the leader should be confident. Leaders have a good opinion of themselves and of their abilities.
The traits approach to leadership has not been successful at predicting who will make good leaders, and the traits that have been identified are vague and unscientific. Most analysts have abandoned this approach to understanding management.
A very important theory of leadership was developed by Douglas McGregor. This is known as Theory 'X' and Theory 'Y'. McGregor argued that a manager's leadership depends on how the manager views his workers. He divided managers into two types: Theory 'X' and Theory 'Y'.
Theory 'X' managers have the following beliefs about their workers:
Theory ‘X' managers are usually authoritarian with their workers. They give direct orders, and do not discuss their decisions.
Theory 'Y' managers have very different beliefs about their workers:
Theory 'Y' managers have a positive view of their workers. They do not give direct orders, but try to encourage workers to make their own decisions. McGregor suggested that Theory 'Y' managers were better leaders than Theory 'X' managers. Theory 'Y' managers expect the best from their workers, and the workers respond to this view by giving their best.
A third approach to leadership concentrates on the manager's style. Style refers to the manager's pattern of behavior.
R. Likert suggested a model of leadership styles which focuses on two variables: authoritarian and democratic styles.
The System One manager is authoritarian, distrustful of employees, and uses fear and punishment to make employees do what he wants. The manager issues orders and instructions, and the workers have no opportunity to express their views.
The System Two manager is benevolent authoritarian, and uses rewards as well as fear and punishment to make employees do what he wants. There is very limited opportunity for consultation.
The System Three manager is consultative, and uses rewards more than fear and punishment. This type of manager encourages employees to make some decisions. The System Four manager establishes a participating group, and trusts employees, encouraging them to take part in decision-making.
Text-study
I. Learn the following words.
To influence – оказывать влияние;
objective – цель;
personality trait – черта характера;
self-assurance – самоуверенность;
vague – неясный;
to encourage – стимулировать;
to respond – отвечать;
pattern of behaviour – тип поведения;
distrust – недоверие;
reward – награда, вознаграждение;
punishment – наказание.
II. Answer the following questions.
III. Complete the sentences with the correct word.
1. The earliest studies of leadership focused on personality.....................
2. A manager who gives a lot of orders.....................
3. The Blake and Mouton grid examines two variables: a manager's
for production and for people.
4. A manager's pattern of behavior is called managerial.........................
5. Someone who influences the behavior of other people is a
6. Some models of leadership focus on personality, others on innnagerial style. A third approach focuses on..............................
IV. Read some of the letters that were written after the selection interviews. Be ready to write the necessary letters of your own.
21 February 2003.
Dear Mr. Schultz
Thank you for coming here for interview. I regret , however, to have to tell you that on this occasion your application was not successful. We are grateful for your interest in our company, and we wish you every success in your career.
Yours sincerely…
21 February 2003
Dear Dr. Vila
On behalf of industrias Montresor, I am pleased to offer you the post of Divisional Software Engineering Manager, subject to the conditions specified in the enclosed contract.
The starting salary will be US $750 per month. There will be a probationary period of 6 months. You will be entitled to a company car. Further particulas of salary, benefits and conditions of employment are enclosed.
If you wish to accept the post, please let me have your acceptance in writing within seven days.
I am looking forward to welcoming you.
Yours sincerely.
J. Andrews,
Staff Controller.
V. Imagine that you are a staff controller at one of the firms.
Write the similar letters.
VI. Meet as one group. Decide which of the sentences below best explains why “the traits approach” was abandoned.
a. It is difficult to identify aspects of personality.
b. This approach to leadership does not help to predict who will make a good leader.
c. Not all leaders have the same personality traits.
VII. Work in several groups. McGregor identifies two types of manager, theory 'X' and theory 'Y'. Decide if the sentences below are true or false, and correct the false ones:
VIII. Column A contains Likert's four managerial styles. Match each style with the correct description from column B.
А В
system 1 • • benevolent authoritarian
system 2 • • consultative
system 3 • • participating groups
system 4 • • exploitive authoritarian
IX. Meet as one group. Discuss the question: What do you think makes someone a leader? with reference to the following criteria:
X. Role-Play
Divide into groups of three or four. You are the top management of a department store. You want to attract more young people to the store department. You must decide:
- what young people like about department stores;
- what young people do not like about department stores;
- what you would have to do to attract young people to the store (new departments, new products, new services).
Think of department stores you go to.
One of you present a brief report to the rest of the students on what you have decided.
Revision of chapter 2
Test
Put the verbs in brackets in the correct form
1. According to statistics there (to exist) structural unemployment in some (to develop) countries where people out of work receive high unemployment bene fits.
2. The new marketing policy of the company (to appear) to be less effective than the old one.
3. In order to make the loan the bank had to accumulate funds by (to cut) amounts (to lend) to other borrowers and calling in loans.
4. A person or an organization that (to be) an intermediary between producers and consumers is called a wholesaler.
5. Securities (to trade) either on the money markets or on the Stock Exchange.
6. With the beginning of "perestroika" in the country a number of enter prises (to be) unable to adjust to new economic conditions.
7. Both government and individuals gain from (to develop) trade relations and (to decrease) trade tariffs.
8. Depreciation (to appear) to be important for correct calculation of production costs.
9. In most economies there (to occur) barter swaps alongside money transac tions.
10. A rentier is a person whose income (to come) in the form of interest on seen rifles or rent from property.
11. Microsoft is recognized as the leader in (to trade) software throughout the world.
12. Profit proves to be a form of value (to add).
13. The government considered the Central Bank to be responsible for the fall in government bonds prices that (to occur) three days before.
14. Whenever a lot of depositors (to want) to withdraw their deposits at one time, a financial panic (to occur).
15. Diverse institutions (to withdraw) lending transactions make up the financial sector.
16. Unless the secret information (to encrypt), there can be a danger of foreign interference.
17. Even if some assets (to withdraw) from business, the company would be clear of debt.
18. Stock-in-trade (to include) goods ready for (to sell) is known to belong to 10 short-term assets.
19. (To compete) successfully wholesalers should provide quicker delivery of goods from their stocks directly to customers.
20. In European countries the income tax declaration must (to provide) by a per son to the state revenue service in due time.
21. Records (to relate) to possible future losses and risks should be done provided they are expected.
22. Shares are documents (to show) what part of the company's capital belongs to their owner.
23. Companies (to keep) due accounting system are able to allocate scarce resources in a more rational manner.
24. (To be) personally liable for all business debts, a sole proprietor should (to understand) all drawbacks of this form of ownership.
25. A certified expert who (to represent) his independent opinion (to concern) the company's activities is called an auditor.
26. The inflation (to account) for 10 percent of the increase in population's bank bal ances.
27. The Prime Minister (to emphasize) the importance of speeding up measures (to take) to cope with inflation.
28. The actual price (to pay) turned out to be higher than the (to advertise) one because of taxes.
29. Financial institutions and the government (to handle) short-term (to lend) and (to borrow) transactions make up money market.
30. The most often (to use) financial securities are shares, stocks, bills and bonds.
31. It is important for potential investors to have full information of the companies (to compete) for capital.
32. The interest banks (to charge) for loans is sure to be higher than the one they (to pay) to their depositors.
33. In order (to ensure) steady economic growth it is necessary (to attract) larger investment in industry.
34. Thousands of retailers and wholesalers (to know) to compete with each other for consumers in the computer market throughout the world.
35. The forms of foreign financial aid (to know) to be loans, investments and some others.
36. Unless (to account) data are comparative, managers will not be able to use them for proper managerial decision making.
37. At the annual meeting shareholders can (to vote) to hire a new company director.
38. A company (to work) efficiently pays higher wages to its employees than its competitors.
39. Due to some (not to expect) reasons the initial plan is likely to fail.
40. (To maintain) a relatively high level of living standard LDCs should (to cooperate) with as many countries as possible.
41. (To be engaged) in speculative operations, the company is said to have dissolved.
42. The access to the Internet system will be limited provided the price for this service (to remain) as high as that.
43. The writer's copyright for his work (to limit) by 75 years from the date of pub lication.
44. (To own) property somewhere abroad, the government is liable to foreign taxation.
45. Nowadays the development of the distant educational systems (to suppose) to be of great importance for people (to live) in small towns.
46. New reliable means of communication are being elaborated for (to link) computers in networks.
47. The board of directors objected to (to get) a bank loan at a such high interest rate.
48. Several speculative companies (to operate) in Britain early in the 18th century until their activity was prohibited by a special Act.
49. Developed countries (to produce) enough goods to meet domestic needs are expanding exports to LDCs.
50. Both wages and salaries (to pay) within a month (to refer) to current liabili ties.
Chapter 3.
Marketing
Unit 3.1. What is Marketing?
Text
The Main Elements of Marketing
Marketing is a four step process that begins with analyzing and defining a qualified universe of potential users or buyers. After this first phase in the marketing process, a marketing professional succeeds in capturing the attention of the intended buyers within the targeted universe. Third, systematic effort must be put into getting the prospects to accept the concepts or propositions. Finally, with all three of the previous steps achieved, the marketer must convert the prospective buyer into the actual buyer by getting them to take the desired action (purchase, rent, call, download, subscribe, refer, sell, follow the law, become a member, etc.).
Marketing methods are used by many of the social sciences, particularly psychology, sociology, and economics. Marketing research supports these activities.
In popular usage, the term “marketing” refers to the promotion of products, especially advertising and branding. However, in professional usage the term has a wider meaning that recognized that marketing is customer centered. Products are often developed to meet the desires of groups of customers or even, in some cases, for specific customers. McCarthy divided marketing into four general sets of activities. His typology has become so universally recognized that his four activity sets, the Four Ps, have passed into the language. The Four Ps are:
— Product — the product management aspect of marketing deals with the specifications of the actual good or service, and how it relates to the end-user’s needs and wants.
— Pricing — this refers to the process of setting a price for a product, including discounts.
— Place or distribution refers to how the product gets to the customer, for example, retailing.
These four elements are often referred to as the marketing mix. A marketer will use these variables to craft a marketing plan. Industrial products, services, and high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial or b2b marketing must account for the long term contractual agreements that are typical in supply chain transactions.
For a marketing plan to be successful, the mix of the Four Ps must reflect the wants and desires of the consumers in the target market. Trying to convince a market segment to buy something they don’t want is extremely expensive and seldom successful. Marketers depend on marketing research to determine what consumers want and want they are willing to pay for. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process.
Most companies today have a customer orientation (also called customer focus). This implies that the company focuses its activities and products on customer needs. Generally there are two ways of doing this: the customer-driven approach and the product innovation approach.
In the consumer-driven approach consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no point spending funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs.
In a product innovation approach, the company pursues product innovation, then tries to develop a market for the product. Product innovation drives the process and marketing research is conducted primarily to ensure that a profitable market segments exists for the innovation. The rationale is that customers may not know what options will be available to them in the future so we should not expect them to tell us what they will buy in the future. It is claimed that if Edison depended on marketing research he would have produced larger candles rather than inventing light bulbs. Many firms, such as research and development focused companies, successfully focus on product innovation.
Text-study
I. Learn the following words
four step process - четырехступенчатый процесc
qualified universe of potential - избранная генеральная совокупность
users or buyers потенциальных пользователей или покупателей
to capture the attention - завладевать вниманием
propositions - предложения
desired action - желаемое действие
to purchase - покупать, приобретать
to download - загружать
branding - брендинг, создание бренда
customer centered - ориентированный на потребителя
sets of activities - направления деятельности
universally recognized - повсеместно признаваемый товар
product
specifications of the actual good - спецификации (подробное описание) на
or service реально существующий товар или услуги
end-user’s needs - потребности конечного пользователя
pricing - ценообразование
discounts - скидки
promotion - содействие в продаже
retailing - розничная продажа
use these variables to craft - использование этих переменных для
a marketing plan разработки маркетингового плана
to require adjustments - требовать корректировки
b2b marketing - маркетинг по принципу «бизнес-к-бизнесу»
to reflect - отражать
to convince - убеждать
sustainable competitive advantage - длительное конкурентное преимущество
to imply - предполагать
rationale - разумное объяснение
approach - подход
to attest to - свидетельствовать о чем-либо
commercial failures - коммерческие провалы
technological breakthroughs - технологические прорывы
to pursue - искать, добиваться
primarily - прежде всего
options - опции, варианты для выбора
II. Answer the following questions :
1. What are the four steps in marketing?
2. What can be a desired action in marketing?
3. What does the term “marketing” refer to in popular usage?
4. What are the Four Ps of marketing?
5. What is promotion?
6. What is marketing mix?
7. What is a customer focus?
8. What is the rationale for the consumer-driven approach?
9. What is a product innovation approach?
III. Translate into English:
1. Ма́рке́тинг — управление созданием товаров и услуг и механизмами их реализации как единым комплексным процессом.
2. Маркетинг — это искусство и наука правильно выбирать целевой рынок, привлекать, сохранять и наращивать количество потребителей.
3. Маркетинг — это осуществление бизнес-процессов по направлению потока товаров и услуг от производителя к потребителю.
4.Маркетинг — система планирования, ценообразования, продвижения и распространения идей, товаров и услуг для удовлетворения нужд, потребностей и желаний отдельных лиц и организаций, причем реклама является лишь одним из факторов процесса маркетинга.
5.Цель маркетинга — создать условия для приспособления производства к общественному спросу, требованиям рынка.
6. Основные функции маркетинга: изучение спроса, вопросов ценообразования, рекламы и стимулирования сбыта, планирование товарного ассортимента, сбыта и торговых операций.
7. Маркетинг начинается с исследования целевого сегмента рынка, для которого собирается работать компания.
8.Система маркетингового аудита позволит оценивать результаты проводимых мероприятий и степень их воздействия на потребителей.
9. В маркетинге соблюдается принцип постоянного обновления выпускаемой или реализуемой продукции.
10.«Комплекс маркетинга» - это набор маркетинговых средств, которые необходимо гармонично увязать друг с другом, чтобы добиться максимального воздействия на рынок.
IV. Comprise critical components of your marketing plan.
a) What business are you in?
b) What do you sell?
c) What are your target markets?
d) What are your marketing goals for next year?
e) What obstacles might keep you from achieving these goals?
f) What is your marketing budget?
V. Give Russian equivalents to the following:
sound marketing plan; key to the success; manage the process of creating customers; motivate customers to buy smth; promotional objectives; their needs and preferences; awareness of your products or service; a successful promotion campaign; keep the campaign on the right track; message reaching the people.
VI. Fill in the blanks with suitable prepositions
One … the major causes … small business failure is inadequate start-up financing. Before you open … business, it is very important to determine how much cash you will need. Many businessmen start operations until profits begin to roll in – which is typically three … six months. They have only enough money … a few months’ rent, some equipment and minimum inventory. Many experts advise having … least a 12-months financial cushion to handle all business and personal expenses. This will allow you to remain self-sufficient and minimize the risks should your business provide unprofitable.
Prior … starting … , carefully review your total financial needs. The checklist entitled “How much money do you need?” should assist you … this evaluation process. Don’t forget to add … the additional funds that will be necessary … personal and living expenses. Some examples include mortgage or rent payments, medical and insurance costs, entertainment, food, clothing, utilities and transportation.
VII. Fill in the blanks with articles if needed
Equally important is … preparation of … cash budget. This analysis forces the businessman to think ahead by estimating … firm’s income and expenses. It will also warn you about … possible deficits that could require additional funding. By carefully projecting your financial needs, you can avoid some of … crises that would otherwise arise from … shortage of funds in … future. A sound finance for … long term will help you to make … profit.
It is essential to distinguish … few different concepts of profit. Profit in everyday life means advantage or … good obtained from something. Besides it can mean … money gained in … business. Profit for … accountant means simply … difference between total receipts and total costs. For … economist profit has … much wider meaning. It is … revenue derived from … use of resources minus … opportunity cost of using those resources . The economist attaches … cost to … use of retained earnings, since they could have yielded revenues if used outside … business. Besides … economist would value the time of … owner-managers in accordance with what they could have earned outside … business.
VIII. Read the text about securities. Write a suitable word to fill each of the gaps.
bond convertible portfolio unit
gilts index preference value
inflation tend price
prices redeemable securities
Most investors seek, above all, security. They even call their investments ______. By building up a _______ of investments. You can be pretty confident that, in the long run, the _______ of your shares will stay a little ahead of _______. Many small investors pay their money to a _______ trust, which can invest more securely and profitably than the individuals could if they acted separately.
Every stock exchange has its _______ , to show share _______ are moving from day to day, in London, the Financial Times-Stock Exchange 100-share index (known as the FT-SE 100 for short), which is pronounced “Footsie”, calculates the average _______ of shares of 100 major companies. This index started at 100 on 1 January 1984.
Instead of buying shares in a business, you may prefer simply to ______ money to it. You receive in return a certificate, called a ______. The safest business to lend money to is the Government. UK Government bonds are called ______ (because they are printed on gilt-edged paper). If you lend to a company, you may receive bonds or _______ shares. ______ preference shares give the holder the right to convert them into ordinary shares at a later date; ______ preference shares give the company the right to buy them back or redeem them.
IX. A businessman gives his partner advice on his investments in a number of ways. Perhaps the most obvious is when he uses the verb “advise”:
“I would strongly advise you not to go playing the market”. The pattern here is:
to advise (someone) to do ( something).
You can also use the noun “ advice”:
“ Let me give you some advice”,
“ Let me give you a piece of advice”.
But there are many other ways of giving advice to people:
“I suggest that you (do) … “,
“If I were you, I’d (do)… “,
“ Why not (do) …“,
“ How about (doing) … “,
“ What about (doing) … “.
X. You meet a friend who has some money to invest. Give him some advice. Use the phrases listed in the tasks above.
Unit 3.2. Brands and Advertising
Text 1
Brand Names
Consumers always have incomplete information about product availability, quality, and alternative prices. Such “imperfect information” leads them to rely on brand names, which lessen the costs of acquiring product information. By relying on brand names and the company reputations associated with them, consumers can make reasonable purchases without searching or investigating products each time they buy.
Many economists have criticized the fact that consumers put so much reliance on brand names. The problem is that this consumer reliance gives companies with established brand names “market power” over the price they can charge. When companies “differentiate” their products with unique brand names and associated advertising and promotional campaigns, they can charge more than others for “truly” identical products. Brand names lead consumers to make what these economists consider to be artificial distinctions between different products. Companies with respected brand names, therefore, can increase prices without losing significant sales.
Because consumers rely on and pay for reputations, companies have incentives to establish reputations by maintaining and improving the quality of their products. This incentive would be lost if all companies were required by law to sell indistinguishable products. If consumers could not identify the companies that produced the products they bought, individual companies would have no incentive to improve the quality of their products. In fact, each company would have an incentive to decrease the quality of its products. Economist Marshall Goldman has pointed out that this is exactly what occurred in the Soviet Union when brand names were eliminated after the 1917 communist revolution. That is why firms in the Soviet Union were required to identify their output with “production marks.” Without brand names consumers do not know from current purchase experiences which products to buy and which ones not to buy in the future.
This mechanism of repeated purchase, where good past performance and a good reputation are rewarded with future profitable sales, and where poor performance is punished. As a result, companies with superior reputations, representing good past performance have something to loose if they perform poorly.
Because companies with valuable brand names that fail to perform have more to lose than companies without valuable brand names, consumers who buy brand name products are paying for something. They are buying the added assurance that the brand name company took necessary measures to protect its reputation for quality.
Finally, it is important to recognize that brand names operate in marketplaces where the government sets product quality standards. The obvious question is: why not rely on government standards to assure company performance? There are two main answers. First, government standards often cannot easily show performance. For example, although the government may grade agricultural commodities, such as vegetables, for colour, size, they cannot define and grade characteristics such as taste that are quite important to consumers. Second, government agencies that rate and assure quality are far from perfect. To assure the quality of the products they buy, consumers are right to rely not just on government standards, but also on brand names.
Text-study
I. Learn the following words
brand name - торговая марка, бренд
incomplete - неполный
availability - наличие
reasonable - разумный
reliance - доверие, уверенность
established brand names - известные торговые марки
unique brand names - уникальные торговые марки
artificial distinction - искусственное различие
to maintain - поддерживать, сохранять
incentive - побуждение, стимул
indistinguishable - неразличимый, неотличимый
to identify - определять
to reward - вознаграждать
withdrawal - лишение
superior - превосходный
assurance - уверенность
quality standards - стандарты качества
to grade agricultural commodities - классифицировать сельскохозяйственную продукцию
II. Answer the following questions
1. Why do consumers often prefer to rely on brand names?
2. What problems do economists see in consumer reliance on brand names?
3. Why do companies try to maintain and improve the quality of their products?
4. What would happen if consumers could not identify the companies that produce the product?
5. Why did many companies in the Soviet Union produce bad quality products?
6. What is the mechanism of repeated purchase?
7. What companies have more to lose in case they perform poorly?
8. Why do consumers of brand name products feel more assured?
9. Is it possible to rely on government standards only to assure company performance?
10. What are the examples that illustrate that the government cannot easily capture some elements of product quality?
III. Translate from Russian into English:
1. Обычно содержание маркетинга отождествляют со сбытом и его стимулированием, рекламой.
2. Маркетинговые функции формируют следующие понятия: потребности, спрос, товар, обмен, сделка и рынок.
3. Нетрудно перечислить запросы конкретного общества в конкретный момент времени, при этом общество могло бы планировать объемы производства на следующий год, исходя из совокупности запросов предыдущего.
4.Смена выбора может оказаться и результатом изменения цен или уровня доходов.
5.Человек обычно выбирает товар, совокупность свойств которого обеспечивает ему наибольшее удовлетворение за данную цену, с учетом своих специфических потребностей и ресурсов.
6. Товар — всё, что может удовлетворить потребность или нужду и предлагается рынку с целью привлечения внимания, приобретения, использования или потребления.
7. Маркетинг имеет место в тех случаях, когда люди решают удовлетворить свою нужду и запросы с помощью обмена.
8. Рынок — совокупность существующих и потенциальных покупателей товара. В различных экономических системах способы удовлетворения нужд людей различаются.
9. Рынок может сформироваться на какой-то отдельный товар или услугу, имеющий ценностную значимость.
10.В странах с развитой рыночной экономикой, в условиях которой и формировался маркетинг, в начале 50-х годов предложение товаров стало обгонять рост спроса на них, и маркетинг стали ассоциировать с продавцами, пытающимися отыскать покупателей.
IV. Fill in the blanks with suitable prepositions.
Advertising is аn important element … the marketing function. It is used to increase sales … making the product оr service known … а wider audience, аnd … emphasising its superior qualities. А соmраnу саn advertise … а variety of ways, depending … how much it wishes to spend, and the size and type … the target audience. The different media … advertising include television, radio, newspapers, magazines and direct mail, … which advertisers send letters, brochures and leaflets directly … potential customers. Advertising is а highly developed business.
V. Fill in the blanks with articles if needed.
Describing target markets
Marketing and advertising specialists must саrrу out … research to determine what … customers want and to develop … products which satisfy customer needs. … group of customers which shares … common interest, need оr desire is called … market. Companies must determine which market would bе most likely to buу … certain product and aim аt their marketing activities at this target. Specialists use mаnу different methods to divide … markets into precise groups.
VI. Complete the sentences with the present simple or the present continuous forms of the verbs in brackets.
1. This year we (try) to develop a brand with personality.
2. We usually (develop) brands that say something.
3. Powerful brand names (create) strong consumer loyalty.
4. At the moment we (look) for a new brand name that suggests something about the product’s benefits and qualities.
5. L’Oreal (sell) cosmetics and toiletries to consumers around the world.
6. This year L’Oreal (invest) over 180 m pounds in Research and Development.
7. The marketing department always (keep) within its budget.
8. Because a company made a loss last year, the marketing department (try) to reduce costs.
VII. Маnу advertisements contain а slogan or short phrase to attract the consumer's attention. Effective slogans are usually short, easy to remember and easy to repeat. Here are several authentic slogans from advertisements. What type of product do уоu think each оnе is advertising?
1. Not everyone was meant to fly.
2. The colour of life.
3. Doesn't he deserve а dinner that looks as good as yours? Ву the time уоu remember уои left it оn, it' s off.
4. See and bе seen with.
5. Does she or doesn't she?
6.This year уоu should wear something loud. Doesn't your family deserve less?
7.Introducing seven easy ways to make а chicken fly.
8.The best things in life are still made bу hand.
9. Never before has something so little done so much for so mаnу.
VIII. Endorsement is а commonly used advertising technique, in which а person - often famous - speaks оn behalf of а product.
Give аn example of оnе personality in уоur country from each of the following fields who endorses а product:
|
Field |
Name |
Product |
|
Sports |
||
|
Еntеrtainmеnt |
||
|
Business |
In each case, do уоu think the right person was chosen to endorse the product? Present your findings to the group.
IX. Work as one group. One of you should lead the meeting. Discuss the following questions:
1. What are the advantages and disadvantages of using famous people in advertising?
2. Do уоu identify with рор stars and movie actors?
3. How саn endorsing а product bе bad for а celebrity's reputation?
X. Analysing advertisements.
Working in groups of three оr fоur, look through some recent magazines and newspapers and find two advertisements оf different brands of the same product. Use the following checklist to соmраrе the two advertisements уоu have chosen.
What аrе the target markets fоr the two advertisements? What benefits do the advertisements emphasize?
Соmраrе the language used in the slogans. Does it attract attention quickly? Is it humorous?
What technique is used in the text (оr сору) of each advertisement: is it factua1, does it contain а celebrity endorsement, is there nо text at all? Is the price mentioned?
Comment оn the artistic content of the advertisements (photography, special graphics, etc.)
Which advertisement do уоu think will sell the most products? Which is the most creative? Is there anything уоu would change in either of the ads?
Оnсе your group has answered these questions, present your analysis of the advertisements to the rest of the students and see if they agree with your interpretation. Yоu саn a1so present your findings in а short written composition. Ве sure to attach the ads to your рарег.
Text 2
Advertising
Before selling the goods, you must do a lot of market research first. The information needed can be obtained from Russian embassies, consulates, and trade representations, from the RF Chamber of Commerce and Industry and from the All-Russian Institute for Scientific Market Research, from trade associations and trade journals or from specialized consultant companies (who will do a professional market research job for you for a fee).
The information you are interested in is if there is any demand for your goods, what the market potential is, what sort of competition you will meet, i.e. how the price of your goods compares with other competitive products including those produced locally, local conditions and preference, local trading customs and habits, what seasonal factors should be taken into account and the like.
But in general marketing covers not only market research, but also planning the selection (assortment) of goods, and consequently the production itself, price policy, advertising and promotion of sales, controlling the sales and post-sales servicing.
So marketing is a system of running all the business activities of a company (organization) in respect of coordinating supply and demand for the goods produced. Originally marketing was meant to help avoid over-production in advanced capitalist countries.
Marketing may within the framework of socialist economy as well enable to co-ordinate production and goods circulation (consumption of goods) for the purpose of using all the resources for the benefit of people and for covering in the best possible way all their needs (requirements).
Advertising is an important means of promoting the goods that are being produced already as well as new lines in business.
There are specialized firms dealing with advertising. In our country it is V/O "Vneshtorgreklama" ("Rosvero"). Different kinds of mass media - TV, radio, newspapers, cinema, journals, magazines, posters, -are used for advertising goods. Special leaflets, booklets and other printed matter about the goods may be published for the same purpose. Participation in fairs and exhibitions helps promote our goods as well. Also, special advertising conferences may be held. The choice of media for advertising depends on the kind of goods and on the local conditions and people's habits: sometimes TV and radio ads are best, in other cases it may be trade journals or leaflets distributed among potential buyers.
Pay attention to the following business letter as a sample of advertising:
FIRM OFFER FOR TRACTORS
Mr Nasser, Lipetsk, 10th Dec,
the Egypt Machines Inc.,
Egypt.
Dear Sir,
In reply to your enquiry of the 3rd of December for our Tractors LTZ-145 we are happy to inform you that we can make you a firm offer subject to your acceptance until the 25th of December.
Tractors are delivered with all the accessories needed.
You must be aware that it is not in our practice to allow any trade discount, that is our price does not include any trade discount, nevertheless if you pay in cash, you will be granted a discount of up to 20 per cent off the price indicated in the pricelist. The amount of the discount depends on the number of tractors you are going to order.
We hope that you will be pleased both with the operation and performance of Tractors LTZ-145 and will place further orders with us.
For your information we would like to point out that a new model of Tractors LTZ-155 is being developed which will have a number of advantages as compared with the old one and will embody the latest achievements in tractor-building. We hope to put it into production late next year.
If you want to have any further information, please do not hesitate to contract us.
We are looking forward to hearing from you soon.
Yours faithfully,
R.Popov
Sales Manager
Text study
a trade discount - торговая (оптовая) скидка
consumption - потребление
benefit - выгода; польза; прибыль; преимущество
goods circulation – товарооборот
allow - позволять
II Answer the following questions:
1. What must you do before selling the goods?
2. What does market research mean?
3. Where can the information needed be obtained from?
4. What is marketing?
5. What fields of business activities does it cover?
6. What was the main purpose of marketing in advanced capitalist countries originally?
7. What is the purpose of marketing now?
8. What is the purpose of advertising?
9. What specialized firms dealing with advertising do you know?
10. How may the goods be advertised?
11. What does the choice of media for advertising depend on?
III Find in the text the English equivalents of the following phrases:
а) 1.используются для рекламы товаров; 2. до продажи товара; 3. выбор средства для рекламы; 4. в отношении обеспечения соответствия спроса и предложения (координации); 5. С целью использования всех ресурсов на благо трудящихся; 6. для лучшего удовлетворения всех их потребностей; 7. маркетинг - это система управления всей деловой активности фирмы (организации);
б) 1. другие конкурентоспособные товары, включая товары, производимые в данной стране (месте); 2. торговые обычаи; 3. специализированные фирмы, занимающиеся рекламой; 4. другие публикации (печатные материалы); 5. плановая экономика; 6. специальные рекламные конференции; 7. развитые капиталистические страны; 8. листовки, распространяемые среди потенциальных покупателей; 9. нужная информация может быть получена; 10. спрос и предложение на производимые товары;
в) 1. какой-либо спрос на ваши товары; 2. какова емкость рынка; 3. местные условия и предпочтения; 4. какие нужно иметь ввиду сезонные факторы; 5. планирование товарного ассортимента; 6. с какой конкуренцией вы столкнетесь; 7. местные торговые обычаи и привычки; 8. маркетинг включает не только конъюнктуру рынка; 9. реклама и стимулирование сбыта (продаж); 10. в рамках планового хозяйства; 11. может дать возможность обеспечить (скоординировать) соответствие общественного производства и товарного обращения; 12. маркетинг включает также политику цен, управления сбытом и послепродажным обслуживанием; 13. избежать (не допустить) перепроизводства; 14. одно из важных средств продвижения товара; 15. могут издаваться для той же цели.
IV. Analyze the Participle forms used in the text.
V. Translate the following word-combinations into English in writing.
1. проводя исследования конъюнктуры рынка; 2. чтобы выяснить емкость рынка; 3. продать товар по конкурентоспособной цене; 4. По сравнению с ценами этой компании; 5. до изучения сети сбыта в этой стране; 6. после проведения изучения различных сезонных фак торов; 7. пользоваться слабым спросом на мировом рынке; 8. изучая емкость рынка для этого товара; 9. использовать средства массовой информации для рекламы товара; 10. увеличивая закупки товара по сравнению с прошлым годом; 11. сильная конкуренция на рынке по требительских товаров; 12. зависеть от рекламы товара по телевиде нию; 13. никакого сравнения с товарами наших конкурентов; 14. принимая во внимание политику цен конкурирующих с нами фирм; 15. купить потребительские товары по конкурентоспособным ценам; 16. нужный нам ассортимент потребительских товаров; 17. выбор между продажей за наличные или в кредит; 18. до заключения договора купли-продажи; 19. после предложения услуг в качестве комис сионера по продаже наших потребительских товаров; 20. послепро дажное обслуживание оборудования; 21. интересоваться распростра нением рекламных листков и другого печатного материала; 22. регу лярно обслуживать станки; 23. хорошо обслуживать посетителей; 24. избегать торговли своими товарами через посредников; 25. принимая во внимание нерешенные вопросы; 26. иметь несколько пунктов (во просов) для обсуждения; 27. выслать последний буклет выпускаемых нами товаров для вашего сведения; 28. изучать местные обычаи и привычки; 29. заказывать у производителя запчасти в обычном по рядке; 30. иметь общее представление об общих условиях поставки данной фирмы; 31. выполнять заказ самым наилучшим образом; 32. открыть новую регулярную пароходную линию между этими порта ми; 33. специализироваться на химикатах; 34. предпочитать твердые цены скользящим; 35. тем не менее мы постараемся удовлетворить вашу просьбу; 36. платить наличными против документов; 37. соот ветствовать образцу; 38. Сколько это составляет процентов? 39. про цент стоимости непроданных товаров; 40. количество вопросов, под лежащих согласованию; 41. гарантировать нормальную работу и вы сокую производительность проданного оборудования; 42. просим Вас без колебаний связываться с нами по любому вопросу, в случае нео бходимости.
VI. Work as one group. Discuss the following questions.
1. Who deals with market research in your association (firm)?
2. In what way do they obtain the information needed?
3. Who is responsible for marketing research in your association?
4. What organizations can help obtain information on marketing in our country?
5. How do the results of marketing research tell on the production of your factory?
6. Does your association deal with advertising of your products itself or do you employ an advertising agent?
7. What do you consider the best choice of media for advertising your goods?
VII. Work in several groups. Sum up the information you have received from the Unit 3.2.
Unit 3.3. Investment in Marketing
Pre-reading task
Read the text, make a brief outline.
Text 1
From Investment Boom to Bust
America's productivity gains have been fuelled by a splurge in spending on information technology. What happens if that investment suddenly stops?
Firms in America have spent like no tomorrow on snazzy computers and communications equipment. Indeed, in the past five years, investment in information technology has increased by an annual average of around 25% in real terms, accounting for no less than one-quarter of the country's total GDP growth. The recent profit warnings from high-tech firms are therefore rather alarming: their sales so far this year are well below expectations. Is the IT boom turning to bust?
This question is important, for two reasons. First, a severe slump in investment could turn a mild economic downturn into a deeper recession. Second, a fall in IT investment would dampen longer-term productivity growth. Total business investment has risen to a record level as a share of GDP. If the pace of it investment now proves unsustainable, productivity growth will fall.
Business investment usually falls in a downturn, but this time the risks are greater. A growing number of economists think that the tech bubble that is now popping, along with firms' own inflated expectations about future returns, encouraged excessive investment. As profits fair and tech shares slide, IT budgets are likely to be slashed.
Japan enjoyed an investment boom in the 1980s. Japanese firms' investment rose from 13% of GDP in the early 1980s to more than 19% by 1990 - a similar-sized increase to that in America, where business investment has jumped from 9% of GDP to 15% over the past decade. The current conventional wisdom is that Japan's investment was a near-total waste; and that, unlike that in the United States today, it did not yield an increase in productivity growth. After its bubble burst at the start of the 1990s, Japanese business investment collapsed and productivity growth stalled.
One reason why investment in America is unlikely to fall so sharply as in Japan is the different composition of its capital spending. IT equipment has a shorter life than buildings or industrial machinery. A faster rate of depreciation means that to achieve a given reduction in a firm's capital stock, gross investment needs to fall by less. It means that the short-term impact on the economy of a decline in investment is more severe. But any adjustment to the desired size of capital stock may be swifter, so reducing the risk of a prolonged, Japanese-style downturn.
The risk of an IT investment bust is now rising. Profits are shrinking, credit conditions have tightened. In recent years America's capital stock has leapt in relation to GDP. If firms decided to reduce IT spending by enough to slow the growth in the ratio of the IT stock to GDP back to its average pace of the past decade - i.e., still allowing for the capital-deepening process to continue - this would imply an 8% fall in nominal IT spending. What does this mean for productivity? Economists have also estimated that if real growth in IT spending falls to zero in nominal terms, then this would reduce productivity growth by three-quarters of a percentage point compared with where it would otherwise have been. However, a downturn in investment has long-lasting effects on productivity growth.
Text-study
I. Learn the following words:
To account for – объяснять;
to bust – обанкротиться;
slump – резкое падение;
downturn – спад, понижение;
recession – падение, спад;
to dampen – ослаблять, останавливать;
pace – темп;
unsustainable – непостоянный;
bubble – дутое предприятие, бум;
to inflate – проводить инфляцию;
to slide – понижаться;
to stall – задерживать, уклоняться;
to tighten – ужесточать.
II. Answer the following questions:
1. What are the reasons for the IT boom turning to bust being a serious question?
2. How can an unsustainable pace of IT investment affect productivity growth?
3. What is the difference between Japan's bubble in the 1980s and the American one in the late 1990s?
4. What is the main difference between Japan's investment of the 1980s and that in the United States today?
5. What is the reason why investment in America is unlikely to fall so sharply as in Japan?
6. What does a faster rate of depreciation mean?
7. What factor does the rate of nominal IT spending depend on?
III. Complete the following sentences with the words from the box:
investment in information technology; the tech bubble; slump in investment; composition of capital spending; to reduce IT spending; a fall in nominal spending
1. A growing number of economists think that … that is now popping, along with firms' own inflated expectations about future returns, encouraged excessive investment.
2. Indeed, in the past five years, … has increased by an annual average of around 25% in real terms, accounting for no less than one-quarter of the country's total GDP growth.
3. A severe … could turn a mild economic downturn into a deeper recession.
4. One reason why investment in America is unlikely to fall so sharply as in Japan is the different … .
5. If firms decided … by enough to slow the growth in the ratio of the IT stock to GDP back to its average pace of the past decade, this would imply an 8% … .
IV. Give Russian equivalents for the following words and phrases used in the text:
productivity gains; a splurge in spending; communications equipment; the country's total GDP growth; the IT boom turning to bust; a severe slump in investment; labour productivity growth; business investment; inflated expectations; future returns; excessive investment; vigorous growth; depreciation; a firm's capital stock; gross investment; a glut in capacity.
V. Translate the following text into Russian in writing:
In the past five years, investment in information technology has increased by an annual average of around 25% in real terms, accounting for no less than one-quarter of the country's total GDP growth. The recent profit warnings from high-tech firms are therefore rather alarming: their sales so far this year are well below expectations. The current conventional wisdom is that Japan's investment was a near-total waste; and that, unlike that in the United States today, it did not yield an increase in productivity growth. After its bubble burst at the start of the 1990s, Japanese business investment collapsed and productivity growth stalled. High depreciation means that gross investment is also larger in relation to GDP. It means that the short-term impact on the economy of a decline in investment is more severe. But any adjustment to the desired size of capital stock may be swifter, so reducing the risk of a prolonged, Japanese-style downturn.
VI. Summarise the text, using the words and phrases given below:
to increase by an annual average of around 25%; to account for (no less than one-quarter of the country's total GDP growth); to turn a mild economic downturn into a deep recession; to dampen longer-term productivity growth; to rise to a record level as a share of GDP; to prove unsustainable; to grow at a much slower pace; to shrink (about IT investment); to mirror smth; to slash smth; to enjoy an investment boom; to jump from 9% of GDP to 15%; to shrink (about profits); to tighten credit conditions; to leap (about capital stock in relation to GDP); to imply a 20% fall in IT; to revise smth downwards
VII. Translate into English:
1. Число заказов от фирм на электронное и электрическое оборудование снизилось почти на 20%, что является признаком грядущего сокращения инвестирования в область высоких технологий.
2. За последнее время уровень роста производительности труда упал до отметки в 1%.
3. Америка и Япония имеют разные структуры вложения капитала. Вторая половина кризисного периода в Японии характеризовалась гораздо более мощным ростом производительности по сравнению с ростом производительности в Америке сегодня.
4. Снижение уровня инвестирования в долгосрочной перспективе сказывается на темпах роста производительности.
VIII. Meet as one group. Supply details to prove the following assumptions:
1. The risk of IT investment bust is now rising.
2. A downturn in investment has long-lasting effects on productivity growth.
IX. Working as one group, comment on the following statement from the text:
America's productivity growth is likely to remain above its level of the early 1990s, unless IT capital spending stagnates for several years.
X. Work in several groups. Argue for or against the following statement made in the text:
Business investment usually falls in a downturn, but this time the risks are greater.
Text 2
Venture Capital
Pre-reading task
Read the text , then say what problem it is devoted to.
The venture-capital industry has been a vital ingredient in America's recent economic success. But it may have become too big for its own good.
Venture capital allows entrepreneurs to build a firm without having to borrow and pay high interest charges before they generate any revenues. Without venture capital, people with bright ideas would have to go to a risk-averse bank manager, or fight through the bureaucracy of an established firm that may be hostile to innovation. Other things have been essential to success: stable, low-inflation macroeconomic policies; labour markets that make firing and hiring easy; and an entrepreneurial culture in which people work for little or nothing if they have share options. In the USA venture capital deserves a slice of the credit for transforming its economy from the industrial dinosaur of the 1980s into today's high-growth, high-tech animal. Other countries are therefore right to seek to foster venture-capital industries of their own.
Yet as the venture-capital industry gets bigger and more global, more may not always prove merrier. To use the jargon of the new economy, venture capital is not easily "scalable". Traditionally, it has been a cottage industry. Small close-knit partnerships each invested a few million dollars a year, and partners spent much time advising and monitoring managers as they built a firm into a sustainable business that could be sold to investors in the stockmarket. Venture capitalists were often a small "cluster", based in such places as Menlo Park, California. Specialisms and reputations were well-known, so would-be entrepreneurs knew who to go to. Successful partnerships are placing more, bigger bets, and have less time for mentoring and monitoring. And this at a time when problems such as recruiting the right people and managing growth mean that start-ups need support more than ever. The Californian cluster of venture capitalists is now a loose global network.
The boom in venture capital reflects the opportunities created by the Internet. But it also reflects a stockmarket bubble that has been particularly pronounced for initial public offerings. That would mean that much of the money invested in venture capital would continue to be wasted.
Part of the point of venture capital is that, as in Hollywood, many investments yield no returns. Too much investment in innovation is unlikely to be damaging in quite the same way as too many buildings or factories. Yet the venture-capital industry has thrived partly as a disciplined risk-taking process that put as much emphasis on managing as on financing. The wrong lesson for other countries to draw from its success is that, if you simply throw enough money at new ideas, it will stick. That was the approach taken by investors in boo.com, the European sports-goods e-retailer that went bust after frittering away $135171. Too much fertiliser can sometimes be as bad for a plant as too little.
Text-study
I. Learn the following words
Entrepreneur – предприниматель;
interest – процент;
to hire – принимать на работу;
to fire – увольнять;
risk-averse – нерасположенный к риску;
bet – заклад, пари;
cluster – группа, скопление;
boom – быстрый подъем;
to yield – давать доход;
to thrive – процветать;
to fritter away – растрачивать по мелочам.
II. Answer the following questions:
1. What opportunities are given to people by the venture-capital industry?
2. What factors are essential to America's success?
3. What is the modern American economy compared with?
4. What is meant by saying that other countries are right to seek to foster venture-capital industries of their own?
5. What is meant by "a cottage industry"?
6. What problems are successful partnerships faced with?
7.What are the reasons for the venture-capital industry's success?
8. What lesson should be learned by other countries?
III. Complete the following sentences with the words from the box:
venture capital; a risk-averse bank manager; entrepreneurial culture; partnership; a stockmarket bubble; to monitor managers.
1. … allows entrepreneurs to build a firm without having to borrow and pay high interest charges before they generate any revenues.
2. Without venture capital, people with bright ideas would have to go to … .
3. … in which people work for little or nothing if they have share options is essential to success.
4. Small close-knit … each invested a few million dollars a year, and partners spent much time advising and … .
5. But it also reflects … that has been particularly pronounced for initial public offerings.
IV. Give Russian equivalents for the following words and phrases used in the text:
the venture-capital industry; an established firm; to be hostile to innovation; low-inflation macroeconomic policies; share options; to foster venture-capital industries; small close-knit partnerships; a sustainable business; start-ups; e-retailers; publicly traded venture-capital firms; initial public offerings; to yield no returns.
V. Translate the following sentences into Russian in writing:
1. Without venture capital, people with bright ideas would have to go to a risk-averse bank manager, or fight through the bureaucracy of an established firm that may be hostile to innovation.
2. To use the jargon of the new economy, venture capital is not easily "scalable".
3. Small close-knit partnerships each invested a few million dollars a year, and partners spent much time advising and monitoring managers as they built a firm into a sustainable business that could be sold to investors in the stockmarket.
4. The Californian cluster of venture capitalists is now a loose global network; the large number of near-identical e-retailers launched in the past two years is evidence that the grapevine no longer works.
5. Part of the point of venture capital is that, as in Hollywood, many investments yield no returns - but those that do then pay off by the bucketful.
VI. Summarise the text using the words and phrases given below:
to pay high interest charges; to generate revenues; to hand over money; to seek to foster venture-capital industries; a cottage industry; a small cluster; to ensure; to flood in; to place bets; to recruit; to launch; the markets' tumble; to lead to smth; to pay off by the bucketful; to thrive.
VII. Translate into English:
1. Венчурный капитал позволяет предпринимателям открыть свое дело, не прибегая к займам под высокий процент.
2. Венчурный капитал - это не единственный фактор, обеспечивающий успех американской экономики.
3. В основе ее процветания - стабильная макроэкономическая политика, направленная на поддержание низкого уровня инфляции, гибкие рынки труда, а также культура предпринимательской деятельности.
4. Для вновь возникающих венчурных предприятий наиболее актуальны проблемы подбора персонала и управления ростом капитала.
5. Индустрия венчурного капитала расширяется и приобретает глобальный характер.
6. Успешное существование индустрии венчурного капитала объясняется более значительной ролью, которая стала отводиться менеджменту, наряду с финансами, в процессе принятия рисков и управления ими.
VIII. Work as one group. Supply details to prove the following:
1. "... venture capital deserves a slice of the credit for transforming America's economy from the industrial dinosaur of the 1980s into today's high-growth, high-tech animal";
2. "the boom in venture capital reflects the opportunities created by the Internet".
IX. Work as several groups. Comment on the following statements:
1. Yet as the venture-capital industry gets bigger and more global, more may not always mean merrier.
2. Too much investment in innovation is unlikely to be damaging in quite the same way as too many building or factories.
3. The venture-capital industry has thrived partly as a disciplined risk-taking process that put as much emphasis on managing as on financing.
Revision of chapter 3
Test
Put the verbs in brackets in the correct form
1. The total output of the society depends on the total supply of resources, as well as on the methods in which they (to use).
2. The demanded quantity of goods (to depend) on a particular market, the num ber of consumers, their tastes and even the season of the year.
3. Both resources, that is, labour and capital, (to be) necessary provided an individual is going to start a new business elsewhere.
4. When prices (to be) above the equilibrium price, it (to result) in excess supply of goods.
5. (To calculate) expenditures on (to run) a business it is necessary to include expenses on (to maintain) buildings in good repair.
6. The increase in a country's economic growth can (to achieve) by (to use) more economical machines and technologies (to consume) less electricity.
7. The aim of producers (to use) this new technological improvement is (to receive) higher profits.
8. Within budget constraints the increase in consumption of one good (to reduce) the consumption of the other.
9. A number of African countries (to export) agricultural products to European countries and to the USA as well .
10. There are many examples of goods that (to consume) together, such as bread and cheese, cars and petrol, so they (to call) complementary goods in economics.
11. The decrease in production costs (to lead) to the increase in the total profit (to obtain).
12. West European countries as well as the USA often (to call) (to industrialize) countries.
13. Free market and command economies are two quite opposite sys tems. The last (to be) typical of some countries of the East European block.
14. Statistics (to show) that consumption per capita (to rise) in developed coun tries.
15. As to free market economies, all resources entirely (to allocate) through markets there.
16. Economists (to explain) most economic laws (to give) examples from people's every day life.
17. In a command economy the output level (to affect) by the decisions of the central office.
18. Market supply is calculated in terms of the alternative quantities of a commodity all producers in a particular market can offer.
19. A number of assumptions (to use) by economists (to study) the theory of supply and demand.
20. Provided a consumer's income (to increase), he (to prefer) to buy more normal goods rather than inferior goods.
21. Profitability is profit (to earn) by a firm in relation to the size of the firm.
22. The conditions of the lease (to consider)to give an advantage to the landown er rather than the tenant.
23. Slower economic growth (to result from) the smaller size of population.
24. Economic rent is money (to pay) for a factor of production which is over the minimum amount necessary (to keep) it in its present condition.
25. Under these conditions the landowner may (to have) some advantages over the tenant.
26. The officially (to record) level of (to spend) last year did not grow in line with the recorded incomes, which means that part of incomes was spent illegally.
27. The expansion of trade between nations provides aid for (to depress) industries.
28. (To analyze) expenses, a manager normally (to distinguish) between capital inputs and labour costs.
29. Government bonds are known (to trade) on the Stock Exchange.
30. Profit is argued to be a firm owner's reward for (to organize) productive activi ty, (to make) innovations, (to take) risks, etc.
31. Wholesalers (to suppose) to sell commodities to retailers but actually they sometimes sell directly to consumers.
32. Diverse institutions (to undertake) lending transactions compete for borrowers.
33. Some producers believe direct contacts with consumers without
wholesalers and other intermediaries (to make) their output cheaper and, therefore, more competitive.
34. The acceptance of financial aid often (to result) in the agreement to accept some political conditions.
35. The (to lift) of tariffs is believed (to promote) international trade.
36. Fertilizers and other chemicals are known to be sometimes (to waste) and to affect the environment.
37. The investment was not large enough (to ensure) economic growth.
38. The major purpose of transactions (to undertake) by financial institutions is to turn diverse assets into investments.
39. Diverse institutions handling (to lend) transactions are included in the financial sector.
40. Most commodities could (to receive) by means of barter in primitive societies.
41. It is important for potential investors to have full information of the companies (to compete) for capital.
42. The interest banks (to charge) for loans is sure to be higher than the one they pay to their depositors.
43. In order to ensure steady economic growth it (to be) necessary (to attract) larger investment in industry.
44. Thousands of retailers and wholesalers are known (to compete) with each other for consumers in the computer market throughout the world.
45. The forms of foreign financial aid (to know) to be loans, investments and some others.
46. Economists of different schools (to account for) the rapid growth of money sup ply in different ways.
47. Securities (to handle) by companies, financial institutions and governments as a result of (to borrow) money.
48. Nowadays trade barriers (to lift) both among the World Trade Organization members and outside the organization.
49. The (to anticipate) rate of unemployment this year is higher than the previous year.
50. A debt is something an individual or a firm (to owe) to another individ ual or firm.
Chapter 4.
BUSINESS CORRESPONDENCE
Unit 4.1. Business Letters
Text
The essence of business letters
Correspondence is an essential part of business. In spite of telephone, telex, telegraphic and faximile communication the writing of letters continues; in fact most telephoned and telegraphed communications have to be confirmed in writing. Every letter no matter what kind it is, should be laconic, precise, to the point and positive. Letters are written on various occasions and on various subject matters. Many business letters are connected with establishing business relations, doing business and various miscellaneous questions.
Here is one of many business letters:
Mr. Walter Drake
Chairman
The Drake and Sons Engineering Co. Ltd.,
Bristol, 5, England
Dear Sir,
I wish to thank you most warmly for your excellent hospitality extended to me during my visit to your company. The opportunity to meet you and your directors was something I had long looked forward to. I can only hope now that one day I may be able to receive a visit here from you. I very much appreciated your kindness and that of Mr, James Frobisher in showing me round the new plant. I thank you once again.
Yours faithfully,
John Gibbs
President Metal Equipment Inc.
Text-study
essential существенный, неотъемлемый
precise точный, ясный
to the point по существу
miscellaneous разный
miscellany смесь, сборник
to appreciate оценивать
to show smb. round показывать кому-либо
a building здание (павильон, цех,
(pavillion, shop, plant) завод)
yours faithfully с совершенным почтением
II. Answer the following questions:
1. What kinds of communication does the text mention?
2. Is letter writing rather popular?
3. Do you like writing letters?
4. What rules should be observed when writing a letter?
5. In what cases are business letters written?
6. Who is John Gibbs?
7. To whom did he write the letter?
8. Whom had Mr. Gibbs met at Mr. Drake's company?
9. How was he received at the company?
10. Did he thank Mr. Drake for hospitality?
11. Did Mr. Gibbs invite Mr. Drake to visit his company?
12. What was the main idea of the letter, to your mind?
III. Complete the letter as in the text:
Mr. Walter Drake
I wish to thank you...
The opportunity to meet you and your directors...
I can only hope now...
I very much appreciate...
I thank you once again.
Yours...
IV. Write a similar complete letter changing:
the names of the businessmen (Mr. Drake, Mr. Gibbs, Mr.Frobisher).
Unit 4.2
Contracts
Text 1
The Contract
Read the text to fulfill the tasks.
In our daily associations and activities, we all make agreements; some are social in nature and others commit us financially.
Contracts are agreements which create legal obligations and are enforceable in a court of law.
In civil law, the contract is the basic legal concept, the foundation of all legal relationships. Every one of our daily acts creates, in some way, a legal obligation.
When we arise in the early morning of a winter day, turn on the light or the radio, we are a party to a contract with the electric company. It makes the electric current available to us and we pay for the amount that we use.
When our newspaper is delivered in the morning, we are purchasers under a contract.
These are trivial, unimportant contracts and don’t cost much. How about some of our more important transactions – buying a car, a washing machine, a house? Do we understand the principles which underlie our actions? Do we know the obligations we incur and the rights and privileges that we acquire?
More important, in making a contract, are we certain that it is as binding on the other side as it is on us?
In terms of law, a contract is a mutual obligation between two people with a mutual right by either to demand its performance. The breach of this right, the failure to perform that promise, creates in the other person the right to relief and redress in a court of law.
A “unilateral” contract is a promise of commitment made by one party conditioned upon the performance of an act by the other. The contract does not become binding until the act is performed.
Illustration: “I promise to pay you a commission, if you will get me a buyer for my car.” When the person to whom the promise is made brings a willing buyer for the car, he has earned his commission.
A “bilateral” contract is created when mutual promises are exchanged by both parties to the transaction. The failure by either party to perform his part of the contract in accordance with his promise may subject him to damages which result from the breach of the contract.
Illustration: “I promise to pay you 15 cents a gallon for 300 gallons of fuel oil, if you will promise to deliver it tomorrow morning”. “I’ll deliver it”.
An “executory” contract is one which is not fully performed. It has been partly performed but something still has to be done by either or both of the contracting parties.
An “Executed” contract is one which has been fully performed by both sides. There is nothing further to be done. The transaction is complete.
Illustration: The 300 gallons are delivered in the morning as promised and the buyer pays in accordance with his agreement.
A “void” contract is one which is not legally enforceable and is not binding on either of the parties. The expression “null and void”, so often used, is redundant. It actually means “non-existent and not enforceable”.
Illustration: Contracts which are illegal in scope and in purpose are void and unenforceable.
A “voidable” contract is one which is valid, binding and enforceable. However, there is a right available to one or, in some instances, to both of the parties to avoid responsibility of performance. It may thus be enforceable against one of the parties but not against the other.
Illustration: A contract made with a “minor”, also known as an “infant”, a person legally under age, is enforceable by him against the other, the adult. Under certain circumstances, the minor may renege on his contract and demand the return of the money he paid. Of course, if he seeks to enforce the contract against the adult he cannot then disaffirm.
An “express” contract is one in which all of the terms are agreed upon by the parties and are specifically set forth in detail, as in a writing.
Illustration: A lease or insurance policy is a good example of an express contract.
An “implied” contract is one which is created by law, imposed upon the parties because of their behaviour, despite the fact that they had no actual or express agreement. A contract will be implied because of the particular relationship of the parties. A husband is obligated to support his wife, parents – to support and care for their infant children.
Text-study
I. Learn the following words and their definitions:
Breach of contract: a legally inexcusable failure to perform a contractual obligation
Commit (here): bind or obligate
Contract: an agreement between two or more people enforceable in a court law
Damages: the award of money assessed to compensate for financial loss to the injured party in a lawsuit
Execute a contract: to fulfill all of the terms of a contract
Executory contract: the contract which still has some provisions to be complied with
Express contract: the contract which has all of its provisions agreed upon by the parties
Implied contract: the contract created by the behaviour of the parties
Lease: an agreement by which the owner of real estate rents and permits it to be used by a tenant
Void: means “without any legal or effectual force to bind”
1. What kind of contracts are our daily acts based on?
2. What is a contract in terms of law?
3. What obligations and rights are created by different types of contracts?
III. Translate from English into Russian:
Arrangement made by two or more persons; promise, duty or condition that indicates what action ought to be taken; to get up; one of the persons or sides in a legal agreement or dispute; piece of business; to bring upon oneself; to gain by one’s own efforts; something one may do or have by law, special favour on benefit; breaking or neglect of a rule, duty, agreement, etc.; inability to do something.
IV. Translate from Russian into English:
Правовое обязательство; заключать соглашения; имеющий исковую силу; участники сделки; брать на себя обязательства; заключать контракт; приобретать права; выполнять обещание; право на возмещение; взаимные обещания; нарушение договора; контракт, условия которого выполнены обеими сторонами; ничтожный и не имеющий юридической силы; избегать ответственности; контракт, выполнение которого не завершено или близко к завершению; недействительный договор; несовершеннолетний; подробно излагать; договор страхования.
V. Translate the words in brackets and complete the following sentences. While choosing the words you may consult the text.
1. Making a contract we … . (принимаем на себя финансовые обязательства).
2. Both parties to a contract have the right … . (требовать его выполнения).
3. To be a party to a contract means not only … but also … . (приобретать права, брать на себя обязательства).
4. … the particular relationship of the parties, … they have no actual agreement, they may have legal obligations under an implied contract. (из-за; несмотря на то, что).
5. … a person legally under age may … on his contract. (при определенных обстоятельствах; отречься).
After talks in Brighton Victor Petrenko has signed the contract between Continental Equipment and TST Systems for the supply of processing equipment. Here are some clauses of this contract.
Brighton, England
April 10, 1997
Continental Equipment Plc, Brighton, England, hereinafter referred to as "the Seller", on the one part, and TST Systems Ltd., Kiev, Ukraine, hereinafter refer» erred to as "the Buyer", on the other part, have concluded the present Contract as follows:
Subject of the Contract
2. Prices and Total Value of the Contract
2.1. The Total Contract Value is as follows:
Equipment and engineering
FOB U.K. port + documenmentation £____
Supervision, start-up and training £____
Spare and wear parts £____
Freight £____
Total price CIF Odessa £____
Discount £____
Total Contract Value _____ -
3. Time of Delivery
3.1. The equipment specified in Appendix 1 of the present Contract is to be delivered within two (2) months from the date of opening the Letter of Credit spec ified in Clause 4.1 of this Contract.
4. Terms of Payment
4.2.1. Original Bill of Lading issued in the name of the Buyer, destination Odessa, Ukraine
.
5. Technical Documentation
5.1. Within five (5) days from the delivery date the Seller shall send two (2) sets of the technical documents as listed in Appendix 2 to the address of the Buyer.
5.2. All instructions on the drawings are to be in English, with all the instructions contain ed in Items 1,2,3,and 4 of Appendix 2 translated into Russian
6. Guarantee of the Quality of the Equipment.
6.1. The guarantee period is twelve (12) months from the date of the start-up of the equipment, that is reflected in an appropriate. Act signed by the representatives of the Parties to the present Contract, but not more than eigh teen (18) months from the date of delivery of the equipment.
6.2. If the equipment proves to be defective or faulty during the guarantee period, the Seller has at its expense at the choice of both Parties either to remedy the defects or to replace the faulty equipment with new equipment of good quality which is to be delivered without delay to the port of delivery.
7. Packing
7.1. The equipment is to be shipped in export sea packing suitable for the type of equipment delivered. Packing should also be suitable for transshipment in tran sit and reasonable long storage of the equipment.
7.2. Each container is not to exceed the following dimensions: Length = 2,500 mm, width = 2,500 mm, height -2,500
7.3. The Seller is responsible to the Buyer for any damage to the equipment resulting from inade quate packing of the equipment.
8. Marking
8.1. All the containers are to be marked on three (3) sides. Each container should bear the follow ing markings made in indelible paint (in Russian and English):
Contract No.
Seller: Continental Equipment Plc (Address)
Buyer: TST Systems Ltd. (Address)
Railway Station of Destination: Kiev
Container No.:
Gross weight: kg
Net weight: kg
Case dimentions in cm (length x width x height)
8.2. If a case requires special handling it should bear additional marks: "Fragile", "Top" or "This side up", etc.
9. Shipping Instructions and Notifications
9.1. Within twenty-four (24) hours after shipment, the Seller is to Inform the Buyer by fax regarding the date of shipment, the Bill of Lading number, num ber of containers, their weight, the vessel name,
10. Insurance
10.1. The Seller is to take care of and cover expenses for insur ance of the equipment under the Contract from the moment of its dispatch up to the moment of its arrival at the port of Odessa.
11. Sanctions
11.1. In the event of delay in delivery of the equipment the Seller is to pay the Buyer a penal ty at the rate of 1.0% of the total contract value for every week of delay. However, the total amount of penalty for delay in delivery is not to exceed 10% of the total contract value.
11.2. While calculating penalty for delay, the amount of days comprising over half of a calen dar week is considered to be a full week.
12. Force Majeure
12.1. The Parties are released from their responsibility for par tial or complete non-execution of their liabilities under the Contract should this non-execution be caused by the force majeure cir cumstances including, but not limited to: fire, flood, earthquake, and If these circumstances have had a direct damaging effect on the execution of the present Contract.
12.2. The Party which is unable to fulfil its obligations under this Contract is to inform the other Party within ten (10) days from the beginning of force majeure circumstances.
13.Arbitration
14. Other Terms
M.I. The Seller upon written consent о (the Buyer shall be per mitted to substitute equipment of comparable quality and conform ing to the technical requirements for any Item of equipment that may not be available for one rea son or another.
14.4. The Contract becomes effective and comes into full force from the date of signing.
15. Legal Address of the Parties
SELLER (ПРОДАВЕЦ): ПОКУПАТЕЛЬ (BUYER):
Continental Equipment Plc TST Systems Ltd
9 North Road P.O. Box 171
Brighton BN1 5JF Kiev 253100
England Ukraine
for and on behalf of the Seller
Alfred Rogers Виктор Петренко
Chairman Коммерческий директор
VII. Answer the following questions.
VIII. Meet as one group. Speak on each type of contracts mentioned in the text. Say what agreements or transactions each type of contracts deals with. Give your own illustrations for various types of contracts.
IX. Read the text and say in what cases a binding contract does not exist.
Contracts are not always clear-cut. Disputes may arise as to a contract’s meaning or its terms of enforcement. Sometimes these arguments result in attempts to have the contract enforced in court. The purpose of any contract litigation is to interpret what the parties originally put in writing. To provide uniform guidelines for interpretation, the law has developed many rules for courts and lawyers to follow.
One of these rules is the parole evidence rule. In contract law, “parole” refers to oral and written statements. If two persons have signed a written contract and intended it to express the full terms of their agreement, no court, in interpreting that contract, will admit as evidence any written or oral statements made prior to the signing of the written contract. Thus, a person cannot contradict or vary the term of a written contract by introducing for the court’s consideration evidence of discussions that occurred before the written agreement was signed.
There are exceptions to the parole evidence rule. The law allows the introduction of parole evidence if there is some indication that a purported contract is the result of fraud, duress, or illegality. In any of these circumstances, a binding contract does not exist. Second, parole evidence is admissible to show that the written agreement does not include all terms of the contract. The third exception arises when the terms of a contract are vague or ambiguous. In this case oral evidence can be introduced to help clarify the meaning of the contract. For example, it may include the term “barrel”. In the oil industry, a barrel means forty gallons. However, in the beer industry, a barrel refers to thirty gallons. In this situation oral evidence would be permitted to explain the usage of the term in the contract.
Other rules of interpretation state that words be given their plain and usual meaning, except when customary business usage indicates a special meaning, or when a technical word is defined. Obvious mistakes of grammar or punctuation are corrected by the courts. However, ambiguous words will generally be construed more unfavorably against the party who used them. Of there is a conflict between a printed word and a written word, the written word will govern. So also, when there is a conflict between a figure number and a written numeral, the written version will prevail.
Although these rules may seem unyielding, their purpose is to help the court interpret the contract in a manner that best expresses the intent of those who made it.
X. Answer the following questions:
and list the principal ideas.
XII. Write an essay about the Contract making use of the information in the texts “The Contract” and “Interpretation of Contracts”.
Before you start writing put down the following:
While writing an essay make use of the following connectives which will help you shape your ideas:
Addition: specifically, in other words, that is to say, to explain;
Explanation: for example, for instance, to illustrate;
Contrast: none the less; still; yet; whereas;
Cause: consequently, for;
Summing up: to sum up.
Text 2.
Prices and Terms of Delivery
When sellers quote prices in their offers they usually state on what terms, at this price, they will deliver the goods. The price will certainly depend on the terms of delivery. The most popular terms of delivery in foreign business transactions are:
• fob (free on board)
• cif (cost, insurance and freight)
• с & f (cost and freight)
• for (free on rail)
If the goods are offered on fob terms the price will practically include the cost of the goods and transportation expenses to the port of shipment.
If the goods are offered on cif terms the price will cover the cost of the goods, insurance expenses and freight or transportation expenses, to the port of destination. If the goods are offered on cif terms the price will cover the cost of the goods and freight to the port of destination. If the goods are offered on for terms the price will include the cost of the goods and transportation expenses to the railway station only. These terms are similar to fob terms. The only difference is the mode of transportation. In case of fob terms the goods are shipped on board ships. In case of for terms the goods are transported by railway. Here are a few examples of how terms of delivery can be mentioned in offers:
• The price is USD 2,000.0 0per ton fob New York.
• The quoted price is GBP 1,200. 00 each cif Murmansk.
• We can offer the goods at the price of GBP 78.00 per metre сif Liverpool.
• The goods are offered on a for basis.
|
to quote |
назначать (цену) |
|
quotation |
цена, котировка |
|
f ob |
фоб |
|
сif |
сиф |
|
с & f |
каф |
|
for |
франко железнодорожная станция |
|
expenses |
расходы |
|
port; port of shipment; port of destination |
Порт; порт погрузки порт назначения |
|
to cover |
покрывать, компен сировать |
|
to insure; insurance; insurance expenses |
Страховать; страхование; расходы по страхованию |
|
freight |
фрахт |
|
mode; mode of transportation |
способ способ перевозки |
|
to ship; shipment ship; shipper |
Отгружать; отгрузка; судно; грузоотправитель |
|
per head |
на человека |
II. Complete the sentences, as in the text:
1. When sellers quote prices in their offers they usually...
2. The price will certainly depend он...
3. The most popular terms of delivery in foreign business transactions are...
4. If the goods arc offered on f о b terms the price . . .
5. If the goods are offered on cif terms the price...
6. If the goods are offered on с & f terms...
7. If the goods are offered on for terms...
III. Say what the following means:
the fob price
the for price
the cif price
the с & f price
IV. Translate the examples of how terms of delivery can be mentioned quoted in the text.
V. Translate into English:
1. Цена составляет З тыс. долл. США, фоб Рига.
2. Названная цена указана в английских фунтах стерлигнгов — 1300 за штуку сиф Одесса.
3. Мы можем предложить товар по 72 ф.ст. за метр на условиях каф Москва.
4. Товар предлагается на условиях франко желез нодорожная станция.
VI. Work as one group. Give the examples of terms of delivery in foreign business transactions.
Text 3.
Terms of Payment
Offers usually state the terms on which the goods are to be paid or terms of payment. Terms of payment usually mean the currency, time of payment, mode of payment and many details.
In foreign trade transactions various modes of payment are practised, among which the most popular are as follows:
• by a banker's transfer
• by a letter of credit
• for collection
• by drafts
• on an open account
Sometimes mixed terms are practised. That depends on the value of the goods, volume of the goods, time of delivery and many other factors.
Here is an example of how terms of payment can be stipu lated in the offer for some expensive sophisticated equipment:
We propose the following terms of payment:
Ten percent of Ihe total sum should be paid in advance by telegraphic banker's transfer.
Fifty percent of the total sum should be paid by tele graphic banker's transfer within 30 days after your bank receives shipping documents.
Forty percent of the total sum should be paid by drafts at 90 days' sight.
Text-study
to transfer - переводить
transfer - перевод
money transfer - денежный перевод
bank transfer - банковский перевод
to make a transfer - произвести перевод
letter of credit (сокр. l/c) - аккредитив syn. credit
to collect - инкассировать, взимать
collection - инкассо
for collection - на инкассо
on a collection basis - на основе инкассо
draft - тратта
to pay by drafts - оплачивать траттами
a sight draft - тратта, срочная после предъявления
30 days' sight draft - тратта, срочная через 30 дней после предъяв ления
account - счет
to stipulate - обусловливать
sophisticated - сложный
shipping documents - отгрузочные документы
II. Translate into Russian:
by banker's transfer
by a letter of credit
for collection
by drafts
on an open account
III. Answer the following questions:
1. Do offers usually state terms of payment?
2. What particulars do terms of payment cover?
3. What terms of payment are practised in foreign trade?
4. On what does the choice of terms of payment depend?
5. What example of terms of payment is quoted in the text?
IV. Translate from Russian into English:
Предмет контракта и общая сумма контракта; быть неотъемлемой частью контракта; сопровождение и пуск оборудо вания; запасные части оборудования; товары, поставляемые согласно настоящему контракту; цена остается неизменной на протяжении всего срока действия контракта; место назначения указано в коносаменте; грузотправитель и грузополучатель; товары должны быть отправлены из порта с первым же судном ; срок поставки и дата поставки; товары должны быть поставлены в течение шести месяцев с момента оплаты; дата выдачи сквозного коносамента; обстоятельства непреодолимой силы; контракт становится действительным с момента его подписания; поставка производит ся на условиях CIF Одесса; Продавец гарантирует, что поставляе мое оборудование удовлетворяет требованиям приложения 5; нести ответственность перед Поку пателем; маркировка, нанесенная несмываемой краской; оплата производится против предоставления следующих отгрузочных документов; выполнять контрактные обязательства; все споры и разногласия, возникающие при выполнении настоящего Контракта.
V.Translate the following part of contract into Russian and answer the questions:
The Seller will take care of, and bear all the expenses connected with, obtaining the necessary license for exporting the goods under the present Contract from the Port of Origin to the Ukraine.
Not later than a month from the effective date of the Contract, the Seller is to advise the Buyer if the export license has been granted or is not required.
If the Seller is unable to obtain the export license and the Buyer is unable to obtain the import license within the time stipulated above, or the export/import license is revoked by the appropriate authorities of the Seller's/Buyer's country before the deliveries are completed, the Seller/Buyer will have the right to cancel the Contract wholly or par tially.
VI. Work as one group. Decide which type of contract is characterized by the following descriptions:
VII. Which word –combination is odd in the following list?
bill of lading certificate of origin
waybill packing sheet
shipping specification delay in delivery
certificate of quality insurance policy
VIII. Put the following sentences into the Passive Voice form.
1. We could not cancel the order because they had already sent it. We could not cancel the order because it__________________________.
2. The inflation influenced our business in the Middle East very badly.
Our business in the Middle East ________________________________.
3. They will make their advertisement soon.
Their advertisement __________________.
4. We are printing our catalogues by Friday this week.
Our catalogues _____________________________.
5. We make the compressors for those machines here.
The compressors for those machines _________________________.
6. He has not fixed the date for the next appointment.
The date for the next appointment _____________________.
7.We received this letter from Continental Equipment a week ago.
This letter from Continental Equpiment ____________________.
8. We can pay you in advance if you want.
You .
9. They had to discuss the Contract before his departure.
The Contract ________________________________.
10. If I had lost that much public money, they would have fired me.
If I had lost that much public money __________________________.
Text 4
The Main Characteristics of
the Contract of Sale
A written contract of sale is made out in the form of a document signed both by the Buyers and the Sellers.
When there is no necessity of introducing special terms and conditions into the contract of sale, Russian associations use standard forms of contracts containing the following clauses (articles):
Sanctions and compensation for damage
Insurance
1Q. Force majeure circumstances
Also, there may be standard General Conditions which form an integral part of the contract and are either printed on the reverse side of the contract or at the foot of the face of the contract or attached to it.
In the case of a contract for sophisticated machinery and equipment there may be other clauses: technical conditions, test and inspection conditions, requirements to technical documentation, supervision of erection and putting the machinery into operation (commissioning), and sending specialists for the purpose, training of the Buyers' specialist, the Sellers' obligations for technical servicing and the like. These clauses may be included in the contract itself or in the Appendices to the contract which are an integral part of it.
When detailed special terms and conditions are introduced into the contract or the agreement, it is customary to draw up an individual contract or agreement in each particular case (e.g. a turnkey contract, a license agreement).
Sometimes Russian organizations use standard forms of contracts worked out by the biggest federations and associations of merchants and importers abroad, by exchanges, Chambers of Commerce and the like for use in particular trade.
These standard forms of contracts, for example, are used in grain trade, seed, sugar, cotton and other trades.
In the sale of Russian timber c.i.f. British ports a special form of contract has been adopted by the Timber Trade Federation of the UK and by V/O "Exportes".
Text-study
contract of sale - договор продажи
clause - статья, пункт, условие
total value - общая стоимость
arbitration - арбитражное разбирательство
sophisticated - сложный; современный, передовой
supervision erection - 1) возведение; монтаж; 2) сборка; установка
turnkey contract - контракт на возведение и сдачу в эксплуатацию объекта "под ключ"
What is the difference between a Charter Party and a Contract of Affreightment?
What kinds of Charter Parties do you know?
16. When may a Standard Contract be used?
17. What Standard Contracts are given in the text?
18. What other Standard Contracts can you name? Describe them.
19. What are the clauses of a Standard Contract?
20.When is it necessary to work out an individual contract? Give examples.
21. What additional clauses may they comprise?
III. Translate the following phrases into English:
1. выполнять свой долг; 2. строгое соблюдение взаимных обязательств; 3. заключить крупномасштабную сделку; 4. основные операции, связанные с обменом товарами; 5. отвечать за перевозку товара; 6. гарантировать проведение расчета по платежам в срок; 7. быть действительным в течение 60 дней; 8. иметь право заключать агентские соглашения от имени своего объединения; 9. отвечать за шеф-монтаж; 10. взять оборудование по договору аренды и займа на пять лет; 11. вспомогательные операции, связанные с обеспечением успешного проведения основных; 12. получить обратно должным образом подписанное соглашение; 13. ряд бартерных и компенсационных сделок; 14. предложить компенсацию за ущерб (за повреждение товара); 15. лицензионное соглашение сроком на 10 лет; 16. рабочие характеристики поставленного оборудования; 17. начать рекламную кампанию; 18. общая стоимость контракта; 19. общий объем поставки; 20. составить условия договора аренды и займа; 21. являться неотъемлемой частью контракта; 22. напечатать Общие Условия поставки на обратной стороне контракта; 23. приложить к инициативному предложению список запчастей; 24. обеспечить обучение специалистов покупателя; 25. принимать обсужденные меры (шаги); 26. включить стоимость маркировки и упаковки в цену товара; 27. принять новый типовой контракт; 28. ряд статей контракта; 29. получить большую сумму денег в качестве компенсации за повреждение това ра в пути; 30. составить контракт на поставку электрооборудования; 31. количество поставленного оборудования; 32. при сложившихся обстоятельствах; 33. проводить шеф-монтаж и пуск оборудования в эксплуатацию; 34. увеличить взаимные поставки товаров; 35. пред почитать покупку в кредит или в рассрочку; 36. покупая товар у новой фирмы, следует знать ее финансовое положение; 37. ссылаясь на вышеуказанный телекс о наступлении чрезвычайного обстоятельства; 38. как указано выше, особое внимание будет обращено на…; 39. быть более или менее удовлетворенным качеством поставленного товара; 40. в дополнение к нашему телексу вы получите письмо со всеми подробностями о чрезвычайном обстоятельстве и принятых нами мерах.
IV. After translating the phrases compose all types of questions of the previous task.
V. Translate the following word combinations into English:
1. а) быть удовлетворенным работой этой машины; б) обеспечивать работу демзала; в) отвечать за работу этого оборудования.
2. а) широкая рекламная кампания; б) он - тебе не компания; в) крупная иностранная компания.
3. а) принимать гостей по воскресеньям; б) не принимать дефектное оборудование; в) принимать обсужденные рекомендации.
VI. Make up sentences using Subjunctive Mood:
Model А
If all the contracts were strictly observed, there would be no necessity of arbitration courts. - Если бы все контракты строго выполнялись, не нужно было бы иметь арбитражные суды.
Model В
We would have sold out all these presses if we had started the publicity campaign a couple of months ago. - Мы бы уже распродали все эти прессы, если бы начали рекламную кампанию два месяца тому назад.
Model С
If the volume of the contract had been increased, we could have been granted an 8 per cent discount. - Если бы объем контракта был увеличен, нам могли бы предоставить восьми-процентную скидку.
Model D
The price of the goods would be lower if the deal had been concluded on F.O.B. terms - Цена товара была бы ниже, если бы сделка была заключена на условиях фоб.
VII. Translate the following sentences using Subjunctive Mood:
1. Если бы мы не уладили этот вопрос на прошлой неделе, мы бы встретились еще раз (или нам пришлось бы встретиться еще раз).
2. Если мы не уладим этот вопрос на следующей встрече, нам придется встретиться еще раз.
3. Мы бы получили большую выгоду, если бы заключили больше бартерных сделок с соседними (neighbouring) государствами.
4. Если бы я имел право подписывать контракты, мы бы заключили сделку сегодня.
5. Мы давно смогли бы отгрузить товар, если бы фирма получила импортную лицензию.
6. Нам было бы легче вести переговоры, если бы у нас был типовой контракт.
8. Мы получили бы компенсацию, если бы повреждение товара не случилось в пути.
9. Мы бы смогли ввести в эксплуатацию это оборудование, если бы получили последнюю партию товара.
VIII. Complete the following sentences:
IX. Make up sentences with the following phrases:
to supply smb. with smth., to supply smth. to smb.
the operation of the dump truck
Revision of Chapter 4
Test
Put the verbs in brackets in the correct form
1. Special trade tariffs can (to impose) on a few major commodities to raise profits, but not to protect trade.
2. (To aim) to have a favourable trade balance, any country is interested in (to export ) more goods than (to import).
3. Creditors' rights should (to protect) from possible unexpected losses by (to sign) a special agreement before (to make) the loan.
4. Consumers already (to approve) of the convenience of (to buy) expensive goods (cars, TV sets) on credit terms.
5. The activity of a public corporation is known annually (to inspect) by independent auditors.
6. A person who personally (to interest) in high company's incomes is called a shareholder.
7. Managerial expenses should (to reduced) in order to spend more money on innovations.
8. According to the sales data the previous year (not to be) successful for the com pany's business.
9. The insurance company must be ready to approve of (to compensate) the
losses of its customers in accordance with the contract.
10. Such services as (to sell) consumer goods, theatre and air tickets (to become) a successful branch of the Internet development.
11. Customers (to have) the right to ask for a quality certificate for any good offered.
12. If a new commodity (to introduce), preliminary calculations of the expenses for its production are (to do).
13. (To design) the Internet site, the company is sure to promote the adver tising of its goods.
14. A set of concepts and principles (to deal with) the main assumptions that should (to consider) by an accountant.
15. In bookkeeping, accounts receivable usually (to convert) into cash within one year and can (to use) as a means of payment.
16. The government has adopted laws (to prevent) monopolies from total control of a particular branch of industry.
17. Provided employees (to disclose) private company information, they would (to sack) immediately.
18. Due to the adverse situation on the Stock Exchange the national currency exchange rate (to be) rather low now.
19. The number of small businesses (to provide) such services as shoe mending or car repairing is rather high in most countries.
20. Secure intraworks (to allow) partners to connect each other easily at any time.
21. During the economic crises consumers' expenditures usually (to decrease) and it greatly (to affect) the business activity and supply decisions of all market sellers.
22. The quantity (to demand) by all consumers at a particular market is the total quantity of a good that they want and (to be able to) buy.
23. The theory of consumer choice (to base) on individual utility.
24. In a (to mix) economy the role of the government (to restrict) by a num ber of laws.
25. The theory of marginal utility (to work out) by Alfred Marshall.
26. OPEC decisions are of great importance for the oil (to export) countries as well as for most European countries (to import) oil.
27. The main assumption of the supply and demand theory is (to maintain) constant level of utility.
28. A lot of factors are (to study) in agricultural production, especially climate.
29. Oil output (to reduce) by OPEC for the period of six months.
30. The purpose of government regulations (to be) to allocate scarce resources rationally.
31. Direct producers (to supply) goods regularly to the market (not to impose) too high prices.
32. Companies (to produce) substitute goods are interested in their high quality.
33. Increases in the quantity of one good have to (to follow) by reductions
in the quantity of the other good.
34. In a free market economy commodities (to supply) can greatly differ in their quality.
35. Mass production is characteristic of industries where the product (to supply) is highly standardized.
36. The amount of goods a particular consumer can buy (to depend) on the income he (to earn).
37. When economists say there is excess demand they really want to say the quantity (to demand) exceeds the quantity (to supply) at this price.
38. (To study) the theory of consumer choice that (to base) on several assumptions, economists often start with the problem of consumer tastes.
39. In a (to plan) economy the government offices make all the main eco nomic decisions which companies, factories and workers have to realize in practice.
40. The utility (to decrease) as the quantity (to consume) grows.
41. Ceiling prices (to impose) on farm machines can stimulate the develop ment of agricultural production.
42. The increase in the goods consumption always (to limit) by the budg et constraints.
43. In a (to mix) economy restrictions imposed are to be in the interests of society.
44. Developing countries which are against tariffs imposed (to limit) their exports to European countries.
45. The government (to offer) a programme of economic development that (to discuss) by the Parliament.
46. Part of the company's profits is (to put back) into business develop ment.
47. In command economy the aim of the government (to be) to control pro duction and solve other economic problems.
48. Improvements in technology are of great importance in (to improve) quality of goods (to supply).
49. Opportunity cost is known as the amount (to lose) by (not to use) labour or capital in their best alternative use.
50. Company managers are to calculate future costs and profit before (to start) (to produce) a new commodity.
BUSINESS VOCABULARY
A
abolition, n - отмена, аннулирование
acceleration, n - ускорение, акселерация; productivity acceleration - ускорение роста производительности
account (for smth), v - объяснять что-л.
account, n - счет, capital account - счет капитала, счет основных средств; счет движения капиталов
accountability, n - подотчетность, отчетность, учет
acquisition, n - приобретение, поглощение (фирм), сбор данных
adequacy, n - соответствие, адекватность; capital adequacy – достаточность капитала, уровень достаточности капитала (способность банка функционировать при поддержании установленного нормативами соотношения уставного капитала и активов)
adherence, n - соблюдение (решений, правил); adherence to international standards - соблюдение международных стандартов
adjust, v - приспосабливать, приводить в соответствие, исправлять, корректировать, налаживать, регулировать
adjusted, adj - скорректированный, с внесенными поправками; adjusted for seasonal variations = seasonally adjusted - с устранением сезонных колебаний; adjusted for taxation - с учетом налогов
advance, n - улучшение, прогресс, развитие; technological advances - достижения в области технологии
adviser, n - советник, консультант; economic adviser - советник по экономическим вопросам, экономический советник
advocate, v - отстаивать, защищать, выступать в защиту, пропагандировать
agency, n - учреждение, агентство; government-sponsored agencies - учреждения, созданные при поддержке правительства, частные учреждения, спонсированные правительством США для снижения стоимости заимствований в некоторых сегментах экономики
allocate, v - предназначать, ассигновывать, выделять, отчислять, предоставлять, распределять, размещать (капитал)
allocation, n - распределение (сумм, кредитов), размещение (капитала), назначение, ассигнование, выделение, отчисление; the allocation of inputs - распределение затрат
application, n - заявление, заявка, ходатайство, применение, использование, назначение (прибора и т. п.)
assess, v - оценивать; to assess risks - оценивать риски
asset backing, n - обеспечение активами
asset-backed, - обеспеченный активами
assets, n, pl - активы, средства, капитал, фонды, имущество, собственность; productive assets - производственные активы; risk assets - неликвидные активы
assume, v - предполагать, допускать
attribute (smth to smth), v - приписывать что-л. чему-л. (напр., заслугу);
to attribute one's success to... - приписывать свой успех чему-либо
avert, v - предотвращать
В
back office, n - "бэк-офис": отдел банка или брокерской фирмы, занимающийся ведением счетов, оформлением различных операций, расчетами, а не совершением сделок или непосредственными контактами с клиентами
back, v - поддерживать, подкреплять, финансировать, субсидировать
bail out, v - спасать, выручать
balloon, v - взвинчивать, вздувать (цены, курсы акций и т.п.)
bank, n - банк; post office savings bank (POSB) - почтово-сберегательный банк; investment bank – инвестиционный - банк; commercial bank - коммерческий банк
bargain, n - торговая сделка, договор о покупке, выгодная сделка, выгодная покупка
bargaining, n - ведение переговоров, заключение торговой сделки; wage bargaining - переговоры по вопросам заработной платы
benchmark, n - база, ориентир, стандарт для сопоставлений; to establish а benchmark in the euro - установить контрольную цифру в евро
benefit, n - преимущество, привилегия, льгота, выгода, прибыль, польза, благо, пенсия, пособие; to enjoy benefits - пользоваться привилегиями, преимуществами; to draw unemployment benefit - получать пособие по безработице; to enjoy benefits not available to any truly private firm - пользоваться привилегиями, недоступными настоящим частным фирмам; social benefits - пособия по системе социального обеспечения; unemployment benefit - пособие по безработице
bet, n - заклад, пари; to place bets - делать ставки
bidding, n - назначение цены, набавление цены (на аукционе), торги
blueprint, n - план, проект, программа
board, n - правление, совет, коллегия; executive board - совет директоров, правление, исполнительный совет, исполнительный орган (компании); currency board - денежный (валютный) совет
bond - облигация, долговое обязательство; government bond - государственная облигация; domestic bond - отечественная облигация; to diversify away from domestic government bond markets - диверсифицировать капиталовложения вне внутреннего рынка государственных облигаций; Treasury bonds - долгосрочные казначейские обязательства / облигации; high-yield bond - облигация с высоким доходом
boom, n - бум, быстрый подъем деловой активности; b - переживать бум; investment boom - инвестиционный бум; to fuel the boom - стимулировать быстрый рост
borrower, n - заемщик
boundary, n - граница; to recognize territorial boundaries – признавать территориальные границы
broaden, v - расширять; to broaden demand - расширять спрос
broker, n - брокер; prime broker - первоклассный брокер
bubble, n - дутое предприятие, "мыльный пузырь", жульническое предприятие, афера, необоснованная скупка ценных бумаг; inflationary bubble - инфляционный бум
С
calamity, n - бедствие, катастрофа
calculate, v - вычислять, исчислять, подсчитывать, рассчитывать, калькулировать, составлять калькуляцию calculation, n вычисление, исчисление, подсчет, расчет, смета, калькуляция
calibration, n - проверка, калибрование, стандартизация
call (for), n - требоваать, предусматривать, обязывать; the occasion calls for quick action - в данном случае требуется быстрота действий
capital, n - капитал; human capital - человеческий капитал; physical capital - капитал в материальном выражении, капитал натурой, физический капитал, материальные ценности; venture capital - венчурный капитал, рисковый капитал
case for - аргументы за; the case against - аргументы против
cause, v - быть причиной, служить поводом, вызывать, причинять, заставлять, побуждать
caution (against smth), v - предупреждать против чего-л.
cede, v - уступать, сдавать, отдавать
ceiling, n - максимум, предел, потолок, максимальная цена; lending ceiling - предельный размер ссуды
census, n - перепись; census data - данные переписи
challenge, v - бросать вызов, заявлять отвод
chancellor, n - канцлер; Chancellor of the Exchequer - канцлер казначейства, министр финансов
change, n - перемена, изменение, размен (денег), обмен (на другую валюту), мелкие деньги; to reflect changes in the composition of output - отражать изменения в структуре производства
charge, n - цена, плата, налог, сбор, начисление, pl расходы, издержки; interest charge - начисление; interest charges on capital - начисление процентов на капитал; Internet-access charge - плата за доступ в Интернет; capital charges - начисления на счет процентов на капитал и сумм погашения долга charge, n - назначать цену, плату, взимать, начислять издержки
circulation, n - циркуляция, обращение, распространение, тираж
cite, v - ссылаться, цититровать; to cite precedent (law) - ссылаться на прецедент (статьи закона)
clearing, n - клиринг, безналичные расчеты, расчеты по биржевым сделкам; clearing of securities - взаимный зачет платежей по ценным бумагам; securities clearing - клиринг ценных бумаг
cluster, n - группа, скопление; to form clusters - создавать группы; a cluster of capital - скопление капитала
code, n - кодекс, свод законов, правила, нормы, принципы; Commercial Code - свод законов о торговле
collapse, n - крах, крушение; collapse of confidence - кризис доверия
collaterize, v - обеспечивать, гарантировать (заем, кредит)
commerce, n - торговля, коммерция; cross-border commerce - международная торговля
committee, n - комитет; to set up a committee - создать комитет
commission, n - доверенность, полномочие, поручение, комиссионное вознаграждение, коммиссионные, коммиссия, комитет; buying commission - коммиссия за закупку
communication, n - передача, сообщение, информация, обмен информацией, связь; long-distance communication - междугородные сообщения, междугородные переговоры, междугородная телефонная связь
community, n - общество, сообщество, объединение, содружество
company, n - компания, общество, фирма, предприятие; non-union company - компания, сотрудники которой не являются членами профсоюзов; to start a company - основывать компанию
compete, v - конкурировать, соревноваться; to compete against other companies - конкурировать с другими компаниями
competition, n - соревнование, конкуренция; to promote competition - стимулировать, поддерживать конкуренцию; price competition - ценовая конкуренция; tax competition - конкуренция в сфере налогообложения
competitiveness, n - конкурентоспособность; to maintain competitiveness - поддерживать конкурентоспособность complaint, n жалоба; to fight off complaints - отражать жалобы, отбиваться от жалоб
complement, v - дополнять, укомплектовывать
composition, n - состав, структура; composition of capital spending - структура вложения капитала
concentrate (on), v - сосредоточиваться на чем-л.
concept, n - идея, общее представление, концепция; a crackpot concept - сумасшедшая идея
conditions, n, pl - обстоятельства, условия, обстановка, режим; competitive conditions - равноправные условия
confidence, n - доверие, уверенность; consumer confidence - доверие потребителей, потребительская уверенность; to underpin confidence - поддерживать, подкреплять уверенность
consecutive, adj - последовательный, последующий
consensual, adj - согласованный (юр.), основанный на устном соглашении сторон
consequence, n - следствие, последствие, результат; to explore the consequences - исследовать, изучать последствия
constituency, n - избирательный округ, избиратели
constraint, n - ограничение, сдерживающий фактор
consumption, n - потребление, расход, затрата; a squeeze on consumption - ограничение расходов / потребления
contagion, n зд. - распространение идей, настроений, обычаев и т. п., вредное влияние
contest, v - оспаривать, спорить, бороться, соревноваться
contraction, n - сокращение, суживание, заключение; contraction of credit - сокращение кредитов; contraction of a loan - заключение займа
control, n - контроль, управление, руководство, проверка, надзор
convergence, n - конвергенция, сходимость, сближение
converge, v - сходиться в одной точке (о линиях, дорогах), сближаться, сводить воедино
convertibility, n - обратимость, конвсртирусмось (валюты, ценных бумаг)
co-operation, n - сотрудничество, взаимодействие, кооперация
соре (with), v - справиться с чем-л.
corporation, n - корпорация, объединение, (амер.) акционерное общество
correlate, v - согласовывать, приводить в соответствие, приводить в какое-л. соотношение
cost, n - цена, стоимость, себестоимость; overall cost - полная стоимость; borrowing cost - стоимость займа; absolute cost - абсолютная стоимость; competitive cost - конкурентная стоимость
costs, n, pl - расходы, издержки, затраты; labour costs - издержки на рабочую силу, расходы на зарплату; costs of production - издержки производства, расходы на производство; transport costs - транспортные расходы; competitive costs - конкурентные издержки
counsellor, n - советник, адвокат, защитник
course, n - курс, направление, линия поведения; to set smb/sth on the right course - выводить кого-л. на верный путь, придать правильное направление развития
creation, n - создание; creation of jobs - создание рабочих мест
credibility, n - надежность, (заслуженное) доверие; credibility gap 1) кризис доверия, 2) расхождение, противоречие; to undermine the ECB's credibility - подрывать доверие к ЕЦБ
credit, n - кредит; emergency credit - чрезвычайный кредит
credit-line, n - кредитная линия
creditworthy, adj - платежеспособный
crisis, n - кризис; economic crisis - экономический кризис
critic, n - критик; trenchant critic - язвительный критик
crude, n - неразработанный, непродуманный, необработанный, сырой; crude thoughts - незрелые мысли; crude facts - голые факты
crumble, v - разрушаться, распадаться
culture, n - культура, entrepreneurial culture - культура предпринимательской деятельности
currency, n - валюта; the single currency - единая валюта; domestic currency - местная валюта
curve, n - кривая;график, диаграмма; a bell-curve - кривая в форме колокола
cut, n - сокращение, снижение, уменьшение; interest-rates cut - снижение процентных ставок; tax cuts - снижение налогов; pay cut - снижение зарплаты
cut, v - сокращать, снижать, уменьшать
cycle, n - цикл; regional cycle - региональный экономический цикл; economic cycle - цикл экономического развития
D
damage, v - портить, причинять ущерб, убыток
dampen, v - ослаблять, останавливать
database, n - база данных
date, n - дата, срок; target date - установленный срок, заданное время, крайний срок, оговоренная дата
deadline, n - предельный срок (исполнения работы); to meet the deadline - выполнить (работу) в срок
dealing, n - сделка, pi деловые отношения, pi торговые сделки; cross-dealings between firms - перекрестные торговые сделки между фирмами
dearth, n - недостаток, нехватка, дороговизна; a dearth of investment - недостаток инвестирования
debacle, n - разгром, ниспровержение, катастрофа
debt, n - долг, задолженность, обязательство; combined debt - комбинированный долг; public-sector debt - государственный долг; tradable debt - ликвидные долговые обязательства; bad debts - безнадежные долги
decision, n - решение; to make interest-rate decisions - принимать решения относительно уровня процентных ставок; investment decision - инвестиционное решение
decline, n - падение, спад, понижение, снижение, сокращение, ухудшение
deepening, n - углубление; capital deepening - интенсивное увеличение капитала, "углубление" капитала
default, v - не выполнять обязанностей или обязательств, обанкротиться; to default on the debts - не выполнять обязательств по выплате долгов
deficit, n - дефицит; budget deficit - бюджетный дефицит; trade deficit - дефицит торгового баланса; current payments deficit - текущий дефицит платежного баланса
deflation, n - дефляция; price deflation - снижение цен
delegate, v - делегировать, посылать, уполномочивать
delta, n - коэффицент "дельта", показатель отношения цены опциона к наличной цене финансового инструмента, лежащего в его основе
delta-hedging, n - "дельта"-хеджирование, страхование продавцами опционов своего риска путем купли или продажи наличного инструмента в соответствии с коэффицентом "дельта"
demand, n - спрос; domestic demand - внутренний спрос; a shortfall in demand - недостаток спроса
deny, v - отвергать, отрицать, отказываться
depositor, n - вкладчик, депозитор; bank depositors - банковские вкладчики
depreciation, n - обесценение, снижение стоимости
deregulation, n - уменьшение государственного вмешательства в экономику, отмена регулирования, дерегламентация; the deregulation of retailing - дерегламентация розничной торговли
derivatives, n pl - производные ценные бумаги, вторичные инструменты, вторичные ценные бумаги, деривативы (разг.), производные финансовые инструменты
determine, v определять, устанавливать
devaluation, n - девальвация
develop, v - разрабатывать, составлять (планы, документы)
development, n - развитие, совершенствование, разработка, проектирование, освоение, строительство, pl события
differ, v - отличаться, различаться
differential, n - разница, дифференциальный тариф, разница в оплате труда (напр., мужчин и женщин)
directive, n - директива, указание; management directive - руководящий документ
disclosure, n - раскрытие, обнаружение, разоблачение
discussion, n - обсуждение, дискуссия; to hold discussions - проводить обсуждения
disinvestment, n - сокращение капиталовложений
disposal, n - передача, избавление от чего-л., реализация, право распоряжаться
distort, v - искажать, деформировать
distress, n - нищета, нужда, бедствие; market distress - угнетенное состояние рынка
divergence, п дивергенция, расхождение, отклонение, отличие
diverge, v - расходиться (о лучах и т.п.); отклоняться, отходить, приобретать отличие, разниться, отличаться (о мнениях)
diversify, v разнообразить, диверсифицировать, (амер.) вкладывать капитал в разнообразные предприятия; to diversify overseas - вкладывать капитал в предприятия за границей
doom, n - рок, судьба, роковой конец, гибель
double, v - удваивать, увеличивать вдвое
downturn, n - спад деловой активности, понижение конъюнктуры; market downturn - начало спада на рынке; economic downturn - экономический спад; downturn in prices - понижение цен
downwards, adv - вниз, книзу, по нисходящей линии, хуже и хуже
draft, drafter, n - проект, набросок, черновик
draw (up), v - оформлять (документ), разрабатывать
drive (away), v - прогонять
driver, n - движущий фактор
drop, n - падение, снижение, понижение
duty, n - пошлина сбор, налог; customs duty - таможенная пошлина
duty, n - долг, обязанность, пошлина, сбор, налог; to discharge one's duties - выполнять обязанности
Е
e-business, n - электронный бизнес
economics, n - экономическая наука, экономика
economist, n - экономист
economy, n - экономика; service economy - экономика, основная часть которой приходится на сферу услуг; manufacturing economy - экономика, основная часть которой приходится на сферу производства; the just-in-time economy - экономика, основанная на системе управления производством "точно во-время"; a regulated market economy - регулируемая рыночная экономика; to slow the economy - замедлять, задерживать экономическое развитие; transitional economy - экономика переходного периода, страна с переходной экономикой
education, n - образование, tertiary education - профессиональное образование
effect, n - результат, влияние, воздействие, эффект; the dampening effect on economic growth - спад экономичского роста в результате...; the adverse effect - неблагоприятный эффект; to have marked effects on industries - оказывать заметное влияние на состояние отраслей промышленности; the knock-on effect - цепная реакция, опосредованное воздействие, эффект домино, эстафетный эффект; to take effect - давать желаемый результат; country-specific effects - эффект, обусловленный спецификой страны; firm-specific effect - эффект, обусловленный спецификой фирмы
eliminate, v - устранять, исключать, ликвидировать
emergency, n - непредвиденный случай, чрезвычайные обстоятельства
emphasise, n - подчеркивать, придавать особое значение, выделять
employee, n - рабочий, служащий, работающий по найму
employment, n - работа (по найму), служба, занятость, прием на работу, использование, применение
encourage, v - поощрять, поддерживать, стимулировать
endowment, n - вклад, дар, фонд; endowment of labour and capital - наличие рабочей силы и капитала
enforcement, п приведение в исполнение
ensure, v - обеспечивать, гарантировать, ручаться
entity, n - экономическая единица, самостоятельная компания, хозяйственная организация, юридическое лицо
entrench, v - укреплять, закреплять; to entrench the rights of minority shareholders - отстаивать права мелких акционеров
environment, n - окружающая среда, окружающая обстановка; business environment - деловая обстановка, деловая среда; regulatory environment - нормативно-правовые условия, нормативно-правовая база
equipment, n - оборудование
equity, n - обыкновенная акция, акционерный капитал, доля в акционерном капитале предприятия, собственный капитал, собственные средства; quoted equities - акции, котирующиеся на бирже
erupt, v - извергаться (о лаве, пепле), прорываться
establishment, n - основание, создание, учреждение, организация, господствующая верхушка, правящие круги
estimate, n - оценка, смета, предварительный подсчет, алькуляция; productivity estimates - оценочные данные о производительности
euro, n - евро, to join the euro - присоединяться к евро
evaluation, n - итоговая оценка; the evaluation team - группа специалистов по оценке
eventuality, n - непредвиденное обстоятельство, возможный случай, случайность
evidence, n - основание, факты, данные, признаки, свидетельства
exemption, n - освобождение от пошлин, налогов, льгота, привилегия; exemption from taxes - освобождение от уплаты налогов
expectation, n - ожидание; inflated expectations - неоправданные ожидания, повышенные ожидания
experience, n - опыт
expertise, n - специальные знания, опыт, экспертиза; core areas of expertise - основные сферы специального знания
exponent, n - представитель (направления), выразитель (идей); exponents of the theory - приверженцы теории
export, n - вывоз, экспорт, экспортирование
exports, n ,pl - предметы вывоза, статьи экспорта; zero-rated exports - предметы вывоза с нулевой ставкой НДС
exposure, n - зависимость, незащищенность, риск потенциальных убытков; cross-border exposures - трансграничные риски потенциальных убытков; interbank exposures - межбанковские риски потенциальных убытков; credit exposure - кредитный риск, размер кридитного риска
externalities, economic externalities, п, pl - внешние экономические факторы; externalities in production - внешние экономические факторы в сфере производства
F
factor, n - фактор, движущая сила, фактор, агент, комиссионер, коэффициент
failure, n - неудача, провал
fall, n - падение, понижение, спад; fall in inflation - падение уровня инфляции
favour, n - поддержка, помощь, содействие, услуга, одолжение
feasible, adj - осуществимый, реальный
fee, n - гонорар, комиссия, вознаграждение, плата за услуги, взнос, сбор, пошлина
figure, n - цифра, показатель, коэффициент, диаграмма, рисунок, чертеж; inflation figures - показатели инфляции
firm, n - фирма; an established firm - фирма с устоявшейся репутацией; unionized firm - фирма, сотрудники которой - члены профсоюза
fix, v - укреплять, прикреплять, фиксировать, устанавливать, назначать (цену, скидку, ставки); to fix a currency - зафиксировать, установить валютный курс
flawed, adj - несовершенный; flawed system of financial supervision - несовершенная система финансового надзора
flee, v - бежать, убегать, спасаться бегством
flexible, adj - гибкий
float, v - свободно колебаться (о курсах), вводить плавающий или свободно колеблющийся курс валюты, выпускать (заем, облигации), размещать (ценные бумаги)
floatation, п "флотация", выпуск новых акций или облигаций на свободный рынок
flood, v - устремиться, хлынуть потоком
fluctuate, v - колебаться, быть неустойчивым
fluctuation, n - колебание, неустойчивость
focus (on), v - сосредоточивать (внимание и т.п.) на чем-л.
follow, v - следовать чему-л. или за чём-л., следить, наблюдать; to follow suit - следовать примеру
force, v - заставлять, вынуждать; to be forced to float the currency - быть вынужденным "отпустить" валютный курс
force, n - сила; действие, действенность; to remain in force - оставаться в силе
forecast, n - прогноз
forefront, n - передний край, центр деятельности
foster, v - благоприятствовать, способствовать развитию, поощрять; to foster venture-capital industries - способствовать развитию индустрии венчурного капитала
fund, n - фонд, запас, резерв; pension fund - пенсионный фонд; to raise funds - привлекать финансовые ресурсы; hedge fund - фонд хеджирования, фонд комплексного рискового инвестирования, комплексный фонд венчурного инвестирования
futures, п, рl сделки на срок, фьючерсные сделки; index futures - индексные фьючерсы; commodity futures - товарные фьючерсы
G
gain, n - прибыль, выигрыш, увеличение, рост, прирост, pl доходы, прибыль, выручка, заработок, достижения; productivity gain(s) - увеличение производительности
gap, n - интервал, промежуток, расхождение, разрыв; output gap - разрыв между потенциально возможным и реальным выпуском продукции; tax gap - налоговое расхождение; to bridge the gap - ликвидировать разрыв
get (off), v - избежать, избавиться, отделаться от (наказания, обязанностей и т. п.); to get off scot-free - выйти сухим из воды, (редк.) получить что-л. бесплатно
gilt, n - первоклассная ценная бумага
globalisation, n - глобализация
gloomy, adj - мрачный, унылый, хмурый, печальный
goal, n - цель, задача; economic goals -экономические цели
goings-on, n, pl поведение, поступки, образ жизни
goods, n, pl - товар, товары, изделия, груз; consumer goods - потребительские товары; to deliver goods - доставлять, поставлять товар
grapevine, n - "виноградная лоза", неформальная схема коммуникаций (распространения информации), присутствующая во всех организациях параллельно официальной схеме, слухи, неподтвержденные сообщения
gross domestic product (GDP) n - валовой внутренний продукт (ВВП); actual GDP - growth реальный рост ВВП
grouped, adj - сгруппированный
growth, n - рост; economic growth - экономическое развитие; monetary growth - увеличение денежной массы
guarantee, n - гарантия; implicit/explicit government guarantees - подразумеваемые/прямо выраженные гарантии государства; money-back guarantee - гарантия возврата платы
H
habit, n - привычка, обычай, обыкновение; saving habits - привычки сбережения
hammer, v - (бирж.) сбивать цены, объявлять банкротом
handle, v - управлять, осуществлять контроль, распоряжаться; to handle а crisis - управлять кризисной ситуацией
harmonisation, n - гармонизация; tax harmonisation - налоговая гармонизация
harness, v - покорять, делать полезным
highlight, v - ярко освещать, выдвигать на первый план, придавать большое значение
holder, n - владелец, держатель, предъявитель; policy-holder - держатель страхового полиса
homogenious, adj - однородный
host, v - принимать у себя, предоставлять услуги хостинга
hostile, adj враждебный; to be hostile to innovation - быть враждебно настроенным'к нововведениям
house, n - дом, здание, фирма, торговый дом; securities house фирма - торгующая ценными бумагами; clearing house расчетная палата
hustle and bustle - толкотня, давка
I
identity, п - идентичность, подлинность; group identity - групповая идентичность
imbalance, п - отсутствие равновесия, неустойчивость; financial and economic imbalances - неустойчивость в области финансов и экономики
impact, п - влияние, воздействие; to have a big impact on growth in spending - оказывать большое влияние на рост расходов
impediment, п - помеха, препятствие, задержка; impediment to export - затруднение с экспортом
implement, v - воплощать, осуществлять
imply, v - подразумевать; предполагать; означать
impose, v - облагать налогом; навязываь; вводить; to impose capital controls - вводить контроль за капиталом
improve, v - улучшать, совершенствовать
incentive, п - побудительный мотив, стимул, поощрение; tax incentives - налоговые стимулы
inch, v - медленно двигаться, передвигаться; медленно двигаться вперед
income, п - доход, заработок, доходы; поступления; capital income - доход от капитала
inconclusive, adj - недоказательный, неубедительный, неокончательный, незавершенный; inconclusive reasoning - неубедительная (шаткая) аргументация; inconclusive vote - голосование, не давшее результата; inconclusive efforts - нерешительные действия (попытки)
increase, п - рост, увеличение, прирост, надбавка; increase in productivity - увеличение производительности
increase, v - увеличивать, увеличиваться, возрастать
index (pi indices), п - индекс, указатель; share and bond index - индекс курсов акций и облигаций; consumer-price index - индекс потребительских цен; consumer-confidence index - индекс потребительской уверенности; the major indices - основные показатели; share index - индекс курсов акций
industry, п - промышленность, индустрия, отрасль промышленности; venture-capital industry - индустрия венчурного капитала; a cottage industry - надомное производство; manufacturing industry - обрабатывающая промышленность; basic industry 1) тяжелая промышленность, 2) основная отрасль; building industry - строительная промышленность
infant, adj - младенческий, детский; начальный; зарождающийся
inflation, п - инфляция; core inflation - основные факторы инфляции; to keep inflation under control - контролировать инфляцию; producer-price inflation - инфляция цен; consumer price inflation - инфляция потребительских цен
infrastructure, п - инфраструктура; telecoms infrastructure - телекоммуникационная инфраструктура
infringe, v - нарушать, не соблюдать; to infringe laws - нарушать законы
innovative, adj - новаторский, прогрессивный
input, п - ввод, подача, загрузка; потребляемая мощность; затраты
insider, п - инсайдер
institution, п - учреждение, организация, объединение, общество
instrument, п - инструмент, прибор; precision instrument - точный прибор; the policy instruments - инструменты экономической политики
insurance, п - страхование, страховая премия; страховой полис; portfolio insurance - страховые операции с портфелями ценных бумаг
insure, v - страховать, застраховывать, страховаться, застраховываться; to insure workers against a fall in income - застраховать работников от снижения заработка
insurer, п - страховщик
integration, п - объединение, интеграция; economic integration - экономическая интеграция
intensity, п - интенсивность, напряженность; capital intensity - капиталоемкость
intervention, п - вмешательство, интервенция; foreign-exchange intervention - валютная интервенция; sterilised/unsterilised foreign-exchange intervention - стерилизованная/нестерилизованная валютная интервенция
interview, п - интервью; to give on-the-record interviews - давать интервью, предназначенные для печати
inventory, п - ( инвентарная ведомость, товары в наличии, запасы, товарные запасы; товарная наличность; товарно-материальные запасы
investment, п - капиталовложение, помещение капитала, инвестирование; капиталовложения, инвестиции; капитальные затраты; capital investment - капиталовложения, инвестиции, вложения в капитальные активы; inward investment - зарубежные инвестиции, привлеченные в данную страну; excessive investments - чрезмерные инвестиции; physical investment - вложения в основные фонды; inward investment - зарубежные инвестиции, привлеченные в данную страну; business investment - капиталовложения предприятий; excessive investment - чрезмерное инвестирование; gross investment(s) - валовые капиталовложения; liquid investments - ликвидные инвестиции
investor, п - вкладчик, инвестор; outside investor - сторонний инвестор
invigoration, п - укрепление, подкрепление, придание силы, стимулирование
issuance, п - выпуск, издание, выдача; bond issuance - выпуск облигаций
J
job, п - работа, труд, место службы
job lay-off, п - увольнение из-за отсутствия работы
jump, v - подскочить; подпрыгнуть (о цифрах)
К
keep (out of), v - держаться в стороне от чего-л.; не вступать (напр., в организацию)
L
lag, п - отставание, запаздывание
lag behind, v - отставать
landing, п - посадка (самолета), высадка на берег, выгрузка, soft landing плавное снижение курса валюты после подъема до экономически обоснованного; bumpy landing жесткая посадка
launch, v - начинать, выпускать, запускать; to launch bonds начинать выпуск облигаций
law, п - закон; common law общее право; обычное право; прецедентное право; Roman law римское право
lay (down), v - устанавливать, закладывать, (принципы), формулировать; to lay down some basic principles - формулировать основные принципы
leap, v - (перен.) подскакивать, резко меняться
legislation, п - законодательство
lender, п - заимодавец, кредитор
lending, п - кредитование; prime-based lending - кредитование на основе ставки "прайм-рейт"; "predatory lending" - "грабительское" кредитование; excessive lending - чрезмерное кредитование
lending, п - кредитование, ссуда, кредит; bank lending - банковский кредит
level, п - уровень; record level - рекордный уровень
leverage, п - соотношение между собственными и заемными средствами, соотношение капиталовложений в ценные бумаги с фиксированным доходом и нефиксированным доходом, соотношение между размерами товарных запасов и суммой капитала
leveraged, adj - "усиленный", об использовании кредита или каких-то других финансовых инструментов для получения повышенной прибыли
liability, п - ответственность, обязанность, обязательство, долг, задолженность, денежные обязательства, (бухг.) пассив
line, п - линия, направление, курс, a pro-euro line - политический курс, поддерживающий евро
liquidity, п - ликвидность
list, п - список
listed, adj - перечисленный, прейскурантный, внесенный в список; to be listed on the stock exchange - зарегистрированный на фондовой бирже
litigious, adj - спорный, подлежащий судебному разбирательству
live (off), v жить за счет чего-л.
loan, п - заем, ссуда, кредит; mortgage loan - ипотечный заем; to make a loan - предоставлять заем
lockup, п - помещение капитала в трудно реализуемые бумаги, землю и т. п.; замороженный капитал
long-term, adj - долгосрочный
loose, adj - свободный; незакрепленный, несвязанный, болтающийся, расплывчатый; loose monetary policy - свободная кредитно-денежная политика
loss, п - потеря, утрата, убыток, ущерб, урон; (страх) гибель; pre-tax loss - убыток до вычета налогов; job loss - потеря работы
M
mainland, п - материк; mainland Europe материковая Европа
maintain, v - поддерживать, сохранять, обслуживать, содержать в хорошем состоянии
management, п - управление, заведование, руководство; economic management - хозяйственное руководство: risk management - управление риском: совокупность методов и инструментов минимизации риска; asset-management - управление активами, управление имуществом, распоряжение активами, распоряжение имуществом; Long-Term Capital Management - долгосрочное управление капиталом
manager, п - руководитель, управляющий, менеджер, директор, заведующий, администратор; risk manager - менеджер по управлению риском
margin, п - маржа, разница, разность, остаток; profit margin - маржинальный доход
market, п - рынок; liquid market - ликвидный рынок; bond market - рынок облигаций; foreign exchange market - валютный рынок; international bond market - международный рынок; debt market - рынок долговых обязательств; financial market - финансовый рынок - обобщающий термин для рынка капиталов, денежного рынка; валютного рынка; housing market - рынок жилья; derivatives market - рынок дериватов; labour market - рынок труда; overseas market - внешний рынок; emerging markets - новые рынки, страны с переходной экономикой; формирующиеся рынки, зарождающиеся рынки, растущие рынки, трансформирующаяся экономика; stock market - фондовая биржа; equity market - рынок ценных бумаг, фондовый рынок; product market - товарный рынок; global equity market - мировой рынок ценных бумаг; derivative market - рынок производных ценных бумаг; capital market - рынок заемных средств, рынок капитала
measure, п - мера, система измерений, масштаб, мерило, критерий, мероприятие; emergency measures - экстренные меры
measurement, п - измерение; замер; risk measurement - измерение рисков
medium-term, adj - среднесрочный
membership, п - членство
merger, п - слияние, объединение; a cross-border merger - трансграничное слияние компаний
method, п - метод; crude methods - неразработанные методы
minutes, п pl - протокол (собрания, заседания); to release summary minutes - публиковать резюме протоколов заседаний
mirror, v - отражать что-л.
misalignment, п - устойчивое отклонение валютного курса от уровня фундаментального равновесия
mix, п - структура, состав; смесь; monetary and fiscal mix - комплекс мер бюджетно-налоговой и кредитно-денежной политики
mobility, п - подвижность, мобильность; labour mobility - подвижность рабочей силы
moderation, п - сдерживание, регулирование, умеренность; pay moderation - сдерживание роста заработной платы
monitor, v - осуществлять текущий контроль, осуществлять мониторинг
monopoly, п - монополия, исключительное право, монополия, монопольное объединение
monthly, adv - ежемесячно
morale, п - моральное состояние, боевой дух
mortgage, п - ипотека, закладная, ипотечный кредит; residential mortgage - жилищная ипотека; "jumbo" mortgage - крупная ипотека: ипотека, которая по размерам превосходит максимальный лимит, установленный на том или ином сегменте вторичного рынка (США)
movement, п - движение, оживление, изменение в ценах
mover, п - движущая сила, инициатор, автор (идеи, плана и т. п.)
multinational, adj - международный, транснациональный
multinational, п - международная, транснациональная корпорация
N
negotiate, v - вести переговоры, обсуждать что-л.
nominal, adj - номинальный; in nominal terms в номинальном выражении note, n- кредитный билет, банкнота, банковский билет: to issue notes выпускать банкноты
О
offering = public offering, n- публичное предложение (США); initial public offering (IPO) - первоначальное публичное предложение акций, первый выпуск корпорацией своих акций на рынок
office, n- служба, место, должность, ведомство, контора, канцелярия; to take office - вступать в должность
offset, v - возмещать, компенсировать
opportunity, n - благоприятная возможность, удобный случай; job opportunity - возможность предоставления работы; investment opportunity - инвестиционная возможность
option, n - выбор, право выбора или замены, опцион, сделка с премией; share options - опцион на акции
order, n - заказ; to place an order - размещать заказ
organisation, n - организация; cross-frontier organization - международная организация
outcome, n - результат, последствие
outpace, v - перегонять, опережать
output, n - производительность, выработка, мощность, выпуск, продукция, объем производства; patterns of output - структура производства; manufacturing output - выпуск продукции обрабатывающей промышленности; the composition of output - структура производства
outsider, n - аутсайдер
outsourcing, n - заключение соглашений с внешними организациями на выполнение некоторых управленческих функций (бухгалтерский учет, связь, вычислительная сеть корпорации)
outweigh, v - перевешивать, превосходить в весе
overall, adj - полный, общий, всеохватывающий
overdue, adj - просроченный
overheads, n pl накладные расходы
overinvestment, n - избыток инвестиций
overlap, v - частично совпадать, пересекаться
oversee, v - надзирать, наблюдать, осуществлять надзор
overstate, v - преувеличивать; завышать
overvalued, adj - переоцененный, с завышенным курсом или стоимостью
own, v - владеть, обладать
Р
расе, n - скорость; темп; at a slow расе - в замедленном темпе
package, n - упаковка, пакет; комплекс; budget package пакет - бюджетных предложений; rescue package - пакет мер по финансовому оздоровлению (по оздоровлению экономики)
parity, n - паритет, равенство, валютный паритет, at parity - по номинальной стоимости, по паритету
partnership, n - участие, товарищество, компания; limited partnership - товарищество с ограниченной ответственностью; commercial partnership - торговая компания; industrial partnership - участие рабочих и служащих в прибылях; new partnership - новое предприятие; small close-knit partnerships - маленькие тесно связанные между собой компании
pay off, v - полностью рассчитаться; to pay off by the bucketful - расплатиться сполна
pay off, n - выплата, награда, вознаграждение; доход по ценным бумагам
peg, n - поддержка (цены, курса), фиксация цены на определенном уровне, база, ориентир; currency peg - валютная привязка
peg, v - "привязывать" цену или курс к определенному уровню
performance, n - выполнение; работа, функционирование; эксплуатационные качества; производительность, эффективность; economic performance - функционирование экономики; a stock's performance - основные показатели функционирования капитала
phase, n - фаза, стадия, период, этап; boom phase - период бурного роста, расцвета (напр., экономики)
pile up, v - накапливаться
place, n - место; place of business - местонахождение предприятия
plan, n - план, программа; investment plan - программа капиталовложений
planning, n - планирование; tax planning - налоговое планирование
playground, n - спортивная площадка
plunge, n - стремительное падение
policy, n - политика, линия поведения; low-inflation macroeconomic policies - макроэкономическая политика, направленная на поддержание низкого уровня инфляции; monetary-policy - валютная политика, кредитно- денежная политика; to tighten monetary policy - ужесточить кредитно-денежную политику; fiscal policy - фискальная политика; macroeconomic policies - макроэкономическая политика; micro-policy - микроэкономическая политика; exchange-rate policy - политика регулирования валютного курса
policymaker, n - директивная инстанция
pose, v - предлагать, формулировать, ставить (вопрос, задачу); to pose problems - ставить проблемы
poverty, n - бедность; нищета
power, n - сила, мощность, власть, возможность, способность, право, полномочие; purchasing power - покупательная способность; monopoly power - монопольная власть
practice, n - практика, применение на практике, обычай, установившийся порядок, технология, метод, способ
precision, n - точность; forecast precision - точность прогнозирования
pressure, n - давление, нажим, безотлагательность, напряжение
prevent, v - предотвратить, не допустить
price, n - цена; consumer prices цены на потребительские товары; house prices - цены на жилье; the final price - окончательная цена; to set a price - назначать цену; competitors' prices - цены конкурентов; to match competitors' prices - противостоять ценам конкурентов; import price - импортная цена; to cut import prices - снижать импортные цены; to be exposed to changes in price - быть подверженным изменениям в цене; asset price - стоимость активов; share price - цена акции
pricing, n - установление цен, ценообразование; market pricing - рыночное ценообразование
problem, n - проблема, задача; to pick up problems - находить проблемы
proceeds, n pl - поступления; the proceeds of the bond issues - сумма, фактически полученная компанией в результате выпуска ценных бумаг
process, n - процесс, способ, метод, режим; production process - производственный процесс
processing, n - обработка, технологический процесс, технология
produce, v - предъявлять, представлять, приносить (доход, урожай); to produce returns - приносить доход
productivity, n - производительность; to boost productivity - резко повышать производительность; to reduce productivity снижать производительность
profit, n - польза, выгода; (часто pl) прибыль, доход; to squeeze profits - уменьшать доходы; short-term profits - "короткие деньги"; overseas profits - доходы, полученные от деятельности компании за границей
promote, v - содействовать, поощрять, поддерживать
prop (up), v - подпирать, снабжать подпорками, поддерживать
property, n - собственность, имущество; intellectual property - интеллектуальная собственность; real property - "реальная собственность", земля, здания и др. виды недвижимой собственности, в отличие от личной собственности
prophecy, n - предсказание, пророчество
prospect, n - (часто pl) перспектива, планы на будущее, предполагаемый клиент, покупатель
protection, n - защита, охрана, покровительство; employment protection - защита прав наемных работников; investor protection - защита инвестиций
provider, n - поставщик
provision, n - положение, условие (договора, контракта)
prudent, adj - осторожный; to act prudently - действовать осторожно
pruning, n - сокращение, упрощение
public, n - народ, общественность
put (forward), v - выдвинуть (теорию, положение)
Q
qualms, n pl - сомнение, неуверенность, колебание; беспокойство, тревожное состояние
quarter, n - квартал, четверть года
question, n - вопрос; to call sth in (into) question подвергать что-л. сомнению, возражать против чего-л.
quid pro quo (лат.) услуга за услугу, компенсация
quit, v - (амер.) бросать, кончать (занятие, дело); to quit a job уволиться
R
range from...to, v колебаться в пределах от...до
range, n - серия, ряд, сфера, зона, пределы, диапазон, размах, номенклатура, ассортимент; to expand one's range of activities - расширить свою сферу деятельности
ranking, n - расположение, ранжирование, классификация
rate, n - ставка, тариф, такса, расценка, курс, цена, скорость, темп, процент, доля, коэффицент; exchange-rate - валютный курс, обменный курс, биржевой курс; interest rate - процентная ставка; short-term interest rate - ставка процента по краткосрочным займам; entry rate into the euro - курс при вступлении в евро; pay rates - ставки заработной платы; zero short-term interest rate - нулевая ставка процента по краткосрочным займам; base rate - базисная ставка; tax rate - ставка налога; rate of unemployment - уровень безработицы; income-tax rates - ставки подоходного налога; prime rate - "прайм-рейт" (США), публикуемая банками базовая ставка по краткосрочным кредитам первоклассным заемщикам;
rating, n - оценка, рейтинг; public ratings общественный рейтинг; public credit rating - рейтинг общественного доверия
ratio, n - отношение, соотношение, пропорция, коэффициент; capital ratio - отношение капитала к активам; return ratio - коэффициент окупаемости
rationale, n - разумное объяснение, основная причина, подоплека чего-л.
reach, v - достигать; to reach a decision - принять, вынести решение
readjustment, n - перестройка, реорганизация
reason, n - причина; immediate reason - непосредственная причина
reasonable, adj - разумный, обоснованный, приемлемый, умеренный, недорогой
rebound, n - реакция, восстановление, оживление (экономики и т.п.)
recession, n - падение, спад, рецессия; deep recession - "глубокая" рецессия, сильный спад; mild recession - "мягкая" рецессия, незначительный спад
reciprocity, n - взаимность
recommendation, n - рекомендация; to apply recommendations - применять рекомендации на практике
record, v - записывать, протоколировать, регистрировать
record, n - учет, запись, протокол; voting record - протокол голосования
recruit, v - принимать на работу, укомплектовывать личным составом
recruiter, n - вербовщик. специалист по поиску и найму квалифицированных сотрудников-профессионалов
recruitment, n - комплектование личным составом
reduce, v - уменьшать, сокращать; понижать
reduction, n - снижение, сокращение; dramatic reduction - резкое сокращение
refinement, n - усовершенствование, повышение качества
reform, n - реформа; economic reform - экономическая реформа
regime, n - режим; "crawling-band" regime - режим "скользящей" привязки; regulatory regime - нормативная база region, и регион;
sub-region, n - субрегион
regulation, n - норма, положение, правило; норматив, регламентация, регламентирование, регулирование; labour regulations - регламентирование рынка труда
regulator, n - регулирующий орган, орган надзора (напр, банковского или страхового)
reinsure, v - перестраховывать; to reinsure the risks with an insurance company - перестраховывать риски в страховой компании
reject, v - отклонять (законопроект), отказывать
relaxation, n - ослабление, уменьшение напряжения; monetary relaxation - ослабление кредитно-денежной политики
reliable, adj - надежный
relinquish, v оставлять, бросать; (юр.) отказываться (от права)
remedy, n - средство (против чего-л.)
remit, n - круг обязанностей, круг ведения, мандат, функции, служебные обязанности
repercussion, n - последствия, влияние, результаты
report, v - сообщать, докладывать, описывать
require, v - требовать, нуждаться в чём-л.; to require disclosure of corporate information - требовать раскрытия информации о деятельности корпорации
requirement, n - требование, нужда, потребность, спрос; capital requirements - спрос на капитал, потребности в капитале; the Minimum Funding Requirement - требование минимального финансирования
rescue, n - помощь, спасение; to come to the rescue - приходить на помощь
reserve, n - запас, резерв, резервный фонд; foreign-exchange reserves - валютные запасы, валютные резервы
resign, v - уходить в отставку
resist, v - противодействовать, противостоять, не поддаваться, сопротивляться
resource, n - активы, ресурсы, запасы, средства, фонды
responsibility, n - ответственность, зд. обязанности
restriction, n - ограничение; restrictions in social security - ограничения в системе социального обеспечения
restrictive, adj - ограничительный
restructuring, n - реструктуризация; to press on with restructuring - спешить с проведением реструктуризации
retailer, n - розничный торговец, розничное предприятие; e-retailer - розничный торговец в системе Интернет
retailing, n - розничная торговля
return, n - доход, прибыль, выручка, поступление; to yield a return - приносить доход; return on equity - прибыль на акционерный капитал; return on capital - прибыль на акционерный капитал; return on investment - прибыль на инвестированный капитал; stock return - доходность акций
reveal, v - показывать, обнаруживать, открывать, разоблачать
revenue, n - доход; to generate revenues - формировать доходы, pl доходные статьи
reversal, n - изменение, поворот на 180 градусов, отмена, аннулирование
revise, v - проверять, исправлять, пересматривать, изменять
revive, v - оживлять, восстанавливать, вновь вводить в силу или в действие; to revive the economy - оживлять экономику
rigidity, n - строгость, суровость, негибкость; wage rigidity - негибкость системы оплаты труда
risk, n - риск; concentrated risk - концентрированный риск (чрезмерная концентрация бизнеса); to take risks - брать на себя риски; exchange-rate risk - валютный риск; market risk - риск изменения цен на рынке, рыночный риск, риск неблагоприятных колебаний цен; operational risk - операционный риск; to run risks - рисковать; to bear a risk - нести риск; unhedgeable risks - не подлежащие хеджированию риски
risk-averse, adj - нерасположенный к риску
role, n - роль, to play a key role in smth - играть ведущую/ключевую роль
rule out v - исключать, to rule out early entry - исключать раннее вступление (напр., в Евросоюз)
rule, n - правило, норма; pl инструкция, устав; to apply rules - применять правила
S
sale n - продажа, сбыт; торговля, торговая сделка, распродажа по сниженным ценам
saving, n - экономия, сбережение, pl сбережения; high domestic savings - высокий уровень сбережений в стране; personal savings - личные сбережения; post-office savings - сбережения населения, привлеченные через почтовую сеть
score, v - получать преимущество, одерживать победу
score, n - счет; total score - итоговый показатель
scot-free, adj - безнаказанный, ненаказанный, невредимый
scrap, v - выбрасывать (за ненадобностью), превращать в лом
secure, v - обеспечивать безопасность, гарантировать, получать, приобретать
securities, n, pl - ценные бумаги; euro-denominated securities - ценные бумаги, деноминированные в евро; to step up the purchase of euro-denominated securities - повысить число покупок ценных бумаг, деноминированных в евро; mortgage-backed securities - ценные бумаги, обеспеченные ипотеками; fixed-income securities - облигации с фиксированной процентной ставкой
security, n - безопасность, защита, охрана, обеспечение, гарантия, залог; поручительство; social security - социальное обеспечение; to serve national-security goals - служить целям национальной безопасности
sell-off, n - распродажа
serve, v - служить, to serve as smth - служить чем-л, в качестве чего-л.
set (out), v - выставлять на продажу; выдвигать, to set out a plan - выдвигать план
set, v - устанавливать, определять, назначать; to set pay - установить заработную плату; to set one's own monetary policy - проводить собственную валютно-денежную политику; to set a fixed ratio of capital to risk assets - устанавливать фиксированное соотношение капитала и неликвидных активов; to set a clear inflation target - устанавливать контрольную цифру инфляции
set aside, v - откладывать (деньги), отклонять (предложение)
setback, n - регресс, спад, понижение, неудача, to suffer a personal setback - потерпеть личную неудачу
set-up, setup, n - структура, организация; current set-up - существующая структура
set up, v - создавать, основывать
severe, adj - глубокий, сильный, жестокий, тяжелый
share, n - акция, пай; доля, часть (целого); listed shares - акции в листинге; high-tech shares - акции - "хай-тек" (акции компаний высокой технологии); preferred shares - привилегированные акции
shareholder, n - акционер; minority shareholder - акционер, не имеющий контрольного пакета акций, мелкий акционер, субконтрольный акционер
sheet, n - ведомость, лист, список; balance sheet - баланс, балансовый отчет
shore (up), v - подпирать, поддерживать, укреплять; to shore up the economy - поддерживать экономику
shorten, v - укорачивать, урезать, уменьшать
short-term, adj - краткосрочный, кратковременный
shock, n - удар, шок
shrink, v - уменьшаться, сокращаться, усыхать, давать усадку
sizable, adj - значительных размеров
skill, n - квалификация, мастерство, опыт, ремесло
slash, v - резко сокращать, урезывать (бюджет, денежные средства)
slide, v - соскальзывать, понижаться (о ценах); to slide into recession - "соскальзывать" в рецессию
slim, v - уменьшаться в весе, худеть, делать тонким, стройным; to slim excess stock - сократить избыточный запас ч-л
slowdown, n - замедление, снижение темпа; the slowdown in UK growth - снижение темпов роста экономики Великобритании
slump, n - резкое падение (цен, спроса), внезапный спад (деловой активности)
soar, v - подскакивать, быстро, стремительно расти (о ценах)
solve, v - решать, разрешать (проблему)
solvency, n - платежеспособность, кредитоспособность
sophisticated, adj - сложный, стоящий на уровне современных требований, опытный, умудренный
spate, n - наводнение, ливень поток; a spate of lay-offs - волна увольнений
specialization, n - специализация; regional specialization - региональная специализация
spectacular, adj - яркий, впечатляющий
spending, n - трата, расходование; consumer spending - потребительские расходы; corporate spending - корпоративные расходы; households' spending - расходы домашних хозяйств; public spending - государственные расходы; private-sector spending - расходы частного сектора; household spending - расходы домашних хозяйств; consumer spending - потребительские расходы; public spending - государственные расходы; capital spending - вложение капитала (денежного или ценных бумаг); IT spending - расходы на автоматизированные технологии
splurge, n - поток, ливень; a splurge in spending - волна расходов
spread, n - спред, corporate bond spreads - спред корпоративных облигаций
spur, v - побуждать, заставлять, подгонять
stability, n - устойчивость, стабильность, economic stability - экономическая стабильность
staff, n - штат (служащих), персонал, личный состав
stake, n - доля, часть (в чём-л.); minority stake доля меньшинства
standard, n - стандарт, норма, норматив, образец, эталон, pl технические условия, технические требования; living standard жизненный уровень
standing, n - финансовое положение; репутация credit standing - кредитоспособность
startup, start-up, n - пуск, ввод в действие; создание новой компании; вновь созданная компания
state, n - государство; welfare state - государство всеобщего благосостояния
steer, v - направлять, руководить
stem (from), v - происходить (от чего-л.), возникать
step (in), v - вмешиваться
stimulation, n - стимулирование; поощрение
stock, n - (амер.) акции, облигации, ценные бумаги, капитал, акционерный капитал, оборотный капитал торговой фирмы, запас, резерв; фонд; capital stock - (амер.) акционерный капитал; основные фонды за вычетом амортизации и списания
structural, adj - структурный
structure, n - структура; industrial structure - промышленная структура; cost structure - структура затрат
stumble, v - оступаться
submit, v - представлять, предъявлять (документы)
subside, v - падать, ослабевать (о ценах, спросе)
subsidiary, n - дочерняя компания, филиал
subsidy, n - субсидия, дотация, денежное ассигнование
sum, n - сумма, количество, итог; principal sum - основная сумма (кредита, займа), сумма, выплачиваемая бенефициару по страховому полису
supervision, n - надзор, наблюдение, контроль, руководство; banking supervision - банковский надзор, надзор за деятельностью банков (функция центрального банка)
supervisor, n - инспектор, контролер; bank supervisor - орган банковского надзора, надзорная банковская инстанция
supply, n - снабжение, поставка, запас, предложение; the supply of labour or capital - предложение (наличие) рабочей силы и капитала
supply, v - снабжать, поставлять
support, v - поддерживать, оказывать помощь
surge, n - подъем, повышение, волна; a surge of inflation - волна инфляции
surplus, n - излишек, избыток, активное сальдо (бюджета, платежного баланса), нераспределенная прибыль; budget surplus - профицит бюджета
surveillance, n - надзор, наблюдение; to carry out surveillance - осуществлять надзор
swap, v - менять, обменивать
system, n - система; a comprehensive system of social security - всеобъемлющая система социального обеспечения; "free-floating" exchange-rate system - система "плавающего" валютного курса
T
target, n - цель, плановое задание, контрольная цифра; inflation target - контрольный показатель инфляции
tax, n - налог, сбор, пошлина; local taxes - местные налоги; state tax - правительственный налог, (амер.) налог, взимаемый в штатах США; foreign tax - налог, уплаченный за границей; value added tax (VAT) - налог на добавленную стоимость; to lower taxes - снижать налоги
taxation, n - налогообложение; corporate taxation - корпоративное налогообложение
taxpayer, n - налогоплательщик
team, n - бригада, группа; команда; a research team - научно-исследовательская группа
teamwork, n - бригадная работа
technology, n - технология, техника, метод, способ, методика; information technology (IT) - информатика, автоматизированные технологии; high technology (high-tech) - передовая технология, наукоемкая технология
tension, n - напряжение, напряженность, напряженное состояние; to reduce tension - уменьшить напряженность
theory, n - теория; growth theory - теория роста; traditional trade theory - теория традиционной торговли; comparative advantage theory - теория сравнительного преимущества
thinker, n - мыслитель, философ; leading thinker - главный теоретик
threadbare, adj - старый, избитый, приевшийся, изношенный, потертый
thrifts, n, pl - сберегательные кассы
thrive, v - процветать, преуспевать
tighten, v - ужесточать, делать напряженным; to tighten credit conditions - ужесточить условия кредита
topic, n - тема; hot topic - "горячая" тема
total, adj - общий, совокупный, суммарный, полный, абсолютный, тотальный
tradable, adj - ходовой (о товаре), являющийся предметом оборота, товарный, рыночный, обращаемый, оборотный
trade, n - торговля; free trade свободная торговля; visible trade - видимая торговля
trading, n - торговля, торговля ценными бумагами
transfer, n - трансферт, денежный перевод, перечисление денег; fiscal transfers - отчисления в бюджет
transparency, n - прозрачность
trend, n - тенденция
tribalism, n - племенной строй, племенная рознь
trim, v - приводить в порядок, подрезать, подстригать, подравнивать, уравновешивать
trust, n - доверие, вера; mutual trust - взаимное доверие
tumble, n - падение (цен, курса); the markets' tumble - падение рынка
turnover, n - оборот, оборачиваемость, текучесть; staff turnover - текучесть кадров
U
unanimity, n - единогласие, единодушие; to achieve unanimity - достигать единогласия
uncertainty, n - неопределенность, нерешительность, неуверенность; exchange-rate uncertainty - нестабильность валютного курса
undemine, v - подрывать
underinvestment, n - недостаток инвестиций
undertake, v - предпринимать что-л.
unemployment, n - безработица; increase in unemployment - рост безработицы; voluntary unemployment - добровольная безработица
union, n - объединение, союз; monetary union - денежный союз, валютный союз
unsustainable, adj - непрочный, недолгий, нестабильный
update, v - корректировать, обновлять данные, модернизировать, доводить до уровня современности
upturn, n - подъем, улучшение; upturn in productivity – рост производительности
urge, v - убеждать кого-л. сделать что-л., настаивать, побуждать, настоятельно просить, настоятельно советовать
utilization, n - использование; capacity utilization – использование производственных мощностей
V
validate, v - утверждать, ратифицировать, объявлять действительным
value, n - ценность, стоимость, цена, величина, значение; value of currency - стоимость валюты; customs value - таможенная стоимость; real property value - стоимость "реальной собственности"
value added, n - добавленная стоимость
value, v - оценивать, производить оценку
verify, v - проверять, контролировать, удостоверять
view, n - мнение, суждение, точка зрения; in view of - ввиду чего-л., принимая во внимание что-л, учитывая что-л.
vigorous, adj - сильный, бодрый, энергичный, мощный; vigorous growth - бурный рост
visit, n - визит, посещение; focused visit - визит с определенной целью
volatility, n - изменчивость, непостоянство; volatility of currencies - изменчивость валютных курсов
volume, n - объем, количество
vote, n - голос, голосование, право голоса; one-share-one-vote - принцип голосования "одна акция - один голос"; a vote of noconfidence - вотум недоверия
vulnerability, n - уязвимое место
W
wage, n - заработная плата; increase in wages - увеличение заработной платы, (обычно pl) заработная плата рабочих; nominal wages - номинальная заработная плата; real wages - реальная заработная плата; efficiency wages - сдельная заработная плата; sticky wages - "застывшая" заработная плата, заработная плата, не имеющая тенденции к росту; average wages - средняя заработная плата
watchdog, n - наблюдатель, орган надзора
wealth, n - богатство, изобилие, материальные ценности
weight, n - вес, масса, груз, нагрузка
welfare, n - благосостояние; public welfare - общественное благосостояние; material welfare - материальное благополучие; general welfare - всеобщее благосостояние
worker, n - рабочий, работник; high-income workers - работники с высоким уровнем доходов
workforce, n - рабочая сила
worth, adj - стоящий, имеющий определенную цену
Y
yield v - давать доход, приносить урожай
NOTES
(America's) Bureau of Labour Statistics Бюро трудовой статистики: агентство Департамента труда США, которое обрабатывает и распространяет статистические материалы по вопросам занятости.
American Enterprise Institute полное название - The American Enterprise Institute for Public Policy Research; создан в 1943 г.; исследования, проводимые Институтом, охватывают такие области как экономика и торговля; общественное благосостояние; налогообложение; расходы; законодательство; международная политика; внешняя и оборонная политика США и т.
Bank of England (BE, BoE) Банк Англии: центральный банк Великобритании; создан в 1694 г., национализирован в 1946 г.; с 1921 г. имеет монополию на банкнотную эмиссию в Англии и Уэльсе; проводит денежно-кредитную и валютную политику правительства; является банком правительства, коммерческих и других банков; осуществляет надзор за деятельностью банков и финансовых рынков; деятельность банка традиционно разделена на эмиссионный и банковский департаменты.
Bank of Japan Банк Японии: центральный банк Японии; создан в 1882 г.; государству принадлежат 55% капитала, остальные акционеры не имеют права голоса.
Basle Committee = Committee on Banking Regulation and Supervisory Practices Базельский комитет = Комитет по банковскому надзору и регулированию: Комитет при Банке международных расчетов (Базель), состоящий из представителей стран "группы десяти" и Швейцарии и содействующий сотрудничеству регулирующих органов, координации и совершенствованию систем банковского регулирования этих стран.
blue chip "блю чип" ("голубая фишка"): 1) первоклассный; 2) акция первоклассной промышленной компании; такие ценные бумаги отличаются высокой надежностью, сравнительно высокой ценой и низким доходом и имеют длительную историю торговли на рынке (США).
blue chip company первоклассная компания: крупная солидная компания с устойчивыми финансовыми результатами.
Bretton Woods Conference Бреттон-Вудская конференция: конференция по валютно-финансовым вопросам 44 стран-союзниц ("объединенных наций") в июле 1944 г. в Бреттон-Вудсе (Нью-Гемпшир, США); завершилась принятием соглашений, ставших основой Бреттон-Вудской валютной системы; на конференции были основаны МВФ и МБРР.
City (of London) Сити: центральная часть Лондона (площадью в 1 кв. милю), где сосредоточены биржи, банки и др. финансово-кредитные институты, - деловой и финансовый центр Великобритании и всего мира (наряду с Нью-Йорком и Токио), олицетворение британского финансового капитала.
Deutsche Bundesbank Дойче Бундесбанк (Немецкий федеральный банк): центральный банк ФРГ (создан в 1957 г.).
European Central Bank (ЕСВ) Европейский центральный банк: общий центральный банк, созданный странами-членами ЕС для управления единой валютой.
European Monetary System (EMS) Европейская валютная система (ЕВС): организация, созданная в 1979 г. странами-членами ЕЭС для поддержания стабильности взаимных курсов валют, усиления координации экономической политики, развития региональной торговли: основные элементы ЕВС: ЭКЮ (European Currency Unit), центральные курсы и ограничение взаимных курсовых колебаний +/-2, 25% (+/- 6% для итальянской лиры) с помощью официальных валютных интервенций.
European Monetary Union (EMU) Европейский валютный союз: критерии вступления в данный союз содержатся в Маастрихтском договоре, вступившем в силу 1 ноября 1993 г.; цель Союза -проведение единой для всех европейских государств внешней и оборонной политики, а также согласование и координирование мероприятий в области экономики.
European Union (EU) Европейский союз: общий термин для обозначения трех основных элементов европейской интеграции -Европейского сообщества, Совместной внешней политики и политики безопасности (Common Foreign and Security Policy) и Юстиции и внутренних дел (Justice and Home Affairs) - кооперация в сфере полиции, иммиграции; Европейский союз управляется пятью органами - Европейской комиссией (European Commission), Советом министров ЕС, Европейским парламентом, Европейским судом (European Court of Justice) и Палатой аудиторов (Court of Auditors).
Fannie Mae = Federal National Mortgage Association Федеральная национальная ипотечная ассоциация (ФНМА; "Фэнни Мэй"): частная корпорация в США с федеральной поддержкой (спонсорством); создана в 1938 г. как государственный орган, но в 1968 г. стала частным акционерным учреждением; ресурсы аккумулирует путем выпуска своих акций и облигаций; поддерживает вторичный рынок ипотек -инвестирует в ипотеки (покупает их у банков), которые затем перепродает инвесторам (в основном ипотеки, застрахованные Федеральной жилищной администрацией); гарантирует и выпускает ценные бумаги под обеспечение пулами ипотек (сертификаты ФНМА).
Federal Home Loan Bank System Федеральная система банков жилищного кредита США: система центральных банков для ссудно-сберегательных ассоциаций по типу ФРС; создана в 1932 г. по Закону о федеральных банках жилищного кредита, Федеральную корпорацию страхования ссудно-сберегательных ассоциаций, Федеральную корпорацию жилищного ипотечного кредита, ссудно-сберегательные ассоциации и сберегательные банки, зарегистрированные на федеральном уровне (могут быть также коммерческие банки, если более 10% их активов вложено в ипотеки. Федеральные банки жилищного кредита являются кредиторами последней инстанции для ссудно-сберегательных ассоциаций. В 1989 году из-за банкротств ассоциаций система была реформирована и региональные банки были поставлены под контроль Федерального совета по финансированию жилищного строительства (до этого действовали в принципе независимо), а функции надзора были переданы Офису надзора за бесприбыльными сберегательными учреждениями (подразделение Казначейства).
Federal Reserve System (FRS; Fed) Федеральная резервная система (ФРС): центральный банк США, сочетающий федеральный и региональный элементы (создан в 1913 году); включает Совет управляющих, 12 региональных резервных банков в специальных округах из нескольких штатов, 24 отделения резервных банков и около 5600 коммерческих банков - членов системы. ФРС через свой Совет управляющих, резервные банки, Комитет по операциям на открытом рынке разрабатывает и осуществляет мероприятия денежно-кредитной политики США.
Freddie Mac = the Federal Home Loan Mortgage Corporation Федеральная корпорация жилищного ипотечного кредита (ФХЛМК; "Фредди Мэк"): частная корпорация, спонсированная федеральными властями США; создана в 1970 г. как полугосударственное учреждение в рамках Федеральной системы банков жилищного кредита; поддерживает вторичный рынок обычных ипотек (не гарантированных государством) путем их скупки и выпускает ценные бумаги под обеспечение пулом ипотек (сертификаты ФХЛМК) для продажи частным инвесторам; в 1989 г. реорганизовано в акционерное общество.
Ginnie Мае = Government National Mortgage Association = GNMA Правительственная национальная ипотечная организация (ГНМА): государственная корпорация (США), которая гарантирует от имени федерального правительства основную сумму и проценты по ценным бумагам, обеспеченным ипотеками ветеранской, фермерской и федеральной жилищной администрациями (сертификаты ГНМА), а также занимается куплей-продажей таких ипотек; основана в 1968 г. и является агентством Департамента жилья и городского развития.
Grand Old Duke of York - герой известной детской песенки
"The Grand Old Duke of York":
Oh, the grand old Duke of York,
He had ten thousand men.
He marched them up the hill,
And he marched them down again.
And when they were up, they were up;
And when they were down, they were down:
And when they were only half way up,
They were neither up nor down.
initial public offering (IPO) первоначальное публичное предложение акций: первый выпуск корпорацией своих акций на рынок.
International Monetary Fund (IMF) Международный валютный фонд (МВФ): ведущая международная валютно-финансовая организация, учрежденная в 1944 г. в результате Бреттон-Вудских соглашений с целью поддержания стабильности международной валютной системы и снижения торговых и валютных барьеров между странами; координирует международное сотрудничество в валютно-финансовой сфере, финансирует страны-члены и консультирует их по различным экономическим вопросам; ресурсы МВФ состоят из взносов стран-членов и рыночных заимствований.
Invest in Britain Bureau (IBB) Агентство по привлечению инвестиций в Великобританию: основано в 1977 г. в рамках Министерства торговли и промышленности Великобритании; имеет целью увеличение притока иностранных инвестиций в Соединенное Королевство; координирует деятельность региональных агентств по распределению иностранных инвестиций; предоставляет потенциальным инвесторам помощь в вопросах размещения инвестиций в стране.
Keynes, John Maynard (1883 - 1946) Джон Мэйнард Кейнс: английский ученый-экономист, изучавший проблемы массовой безработицы и разработавший меры государственной политики по ее сокращению в своем основном труде "Общая теория занятости, процента и денег" (1936г.). Keynesian economics Кейнсианская экономическая теория: макроэкономические концепции, основой которых является утверждение о том, что экономика сама по себе не может обеспечить полного использования всех своих ресурсов, и для достижения этой цели государство может прибегнуть к средствам фискальной и кредитно-денежной политики.
Lehman Brothers международный инвестиционный банк; основан в 1850 г.; предоставляет финансовые услуги институциональным инвесторам.
London School of Economics (LSE) полное название The London School of Economics and Political Science; Лондонская школа экономики основана в 1895 г. Беатрис и Сидни Вебб; один из немногих университетов Соединенного Королевства, который в своих исследованиях социальных, политических и экономических проблем не ограничивается странами, входящими в Европейский Союз.
Maastricht Treaty Маастрихтский договор - подписан в ходе встречи на высшем уровне представителей стран-членов ЕС 7 февраля 1992г.; фиксирует создание нового европейского органа - Европейского валютного союза; определяет критерии вступления в Европейский валютный союз; представляет экономическую, политическую и законодательную основу для создания единой европейской валюты; ратифицирован парламентами участников Европейского союза; вступил в силу 1 ноября 1993 г., с этого момента интеграционный блок государств-участников официально получил название Европейского союза; обновлен в Амстердаме в 1997 г. (Амстердамский договор).
Mansion House официальная резиденция лорда-мэра лондонского Сити.
Monetary Policy Committee (МРС) Комитет денежно-кредитной политики: специальный комитет Банка Англии, устанавливающий процентные ставки и в целом определяющий денежно-кредитную политику: большая часть членов комитета назначается правительством Великобритании.
Morgan Stanley международный инвестиционный банк.
NASDAQ (National Association of Securities Dealers Automated Quotations) Index индекс НАСДАК: индекс внебиржевого рынка, ежедневно публикуемый Национальной ассоциацией дилеров по ценным бумагам и основанный на ее котировках (США); включает все внебиржевые акции (примерно 3500), которые не котируются на фондовых биржах и по которым существует более одного маркетмейкера; влияние каждой акции пропорционально капитализации компании; опционов и фьючерсов на этот индекс нет.
National Association of Pension Funds (NAPF) Национальная ассоциация пенсионных фондов: профессиональная ассоциация пенсионных фондов Великобритании, основанная в 1923 г.
Organisation for Economic Cooperation and Development (OECD) организация экономического сотрудничества и развития (ОЭСР): организация, созданная в 1961 году в целях содействия экономическому росту стран-членов, повышению уровня жизни, поддержанию финансовой стабильности, развитию торговли на международной основе; объединяет США, Канаду, Японию, 18 стран Западной Европы, Турцию; штаб-квартира находится в Париже.
Sallie Мае = Student Loan Marketing Association = SLMA Ассоциация маркетинга студенческих кредитов (США): независимая корпорация, гарантирующая на сумму до 90% "студенческие" кредиты (кредиты на образование), обращающиеся на вторичном рынке, и покупающая участия в таких кредитах; создана в 1972 г. на основе федерального закона, чтобы облегчить доступ студентов к кредитам для оплаты образования; финансирует свою деятельность выпуском ценных бумаг; обязательства корпорации не облагаются федеральнымии штатными налогами.
Securities and Exchange Commission (SEC) Комиссия по ценным бумагам и биржам (США): независимое федеральное регулирующее агентство, созданное в 1934 г. для надзора за выполнением федеральных законов о торговле ценными бумагами; в сферу компетенции входят сделки с ценными бумагами, голосование по доверенности, проверка отчетности компаний, борьба с нарушениями закона.
Silicon Valley Силиконовая долина: район в Калифорнии, где сосредоточено большое число компаний, занимающихся исследованиями и производством в областях высоких технологий (обычно имеются в виду компьютерные технологии, микробиология, генная инженерия и т.д.).
The Economist "Экономист": влиятельный еженедельный политический и экономический аналитический журнал, издаваемый в Лондоне с 1843 г. (тираж около 100 тыс. экземпляров).
Treasury (Т) казначейство: 1) министерство финансов; в Великобритании - департамент, ответственный за реализацию бюджетной, налоговой, денежно-кредитной и в целом экономической политики; номинально главой является премьер-министр (первый лорд казначейства), фактически - канцлер казначейства (министр финансов); 2) казначейский департамент банка или компании, ответственный за управление финансовыми ресурсами учреждения.
Treaty of Rome Римский договор: соглашение о создании ЕЭС, подписанное в 1957 г. Францией, ФРГ, Италией и странами Бенилюкса.
Wall Street "Уолл-Стрит": 1) деловой центр Нью-Йорка и США по названию улицы, где находится Нью-Йоркская фондовая биржа и биржа АМЕКС, множество банков, инвестиционных и брокерских фирм 2) инвестиционное сообщество, специалисты фондового рынка (банки, брокеры, адвокатские конторы) США.
World Bank = International Bank for Reconstruction and development Мировой (Всемирный) банк: Международный банк реконструкции и развития (МБРР).
World Trade Organization (WTO) Всемирная торговая организация: международная правительственная организация, призванная регулировать вопросы международной торговли; создана в 1994 г. как приемник ГАТТ со штаб-квартирой в Женеве (более 120 стран-членов).
APPENDICES
Render the texts from the Appendices and define their main ideas.
Appendix 1
European Monetary Union: Operating Monetary Policy
CHARLES ENOCH AND MARC QUINTYN
The Maastricht Treaty provided a road map for the unification of the currencies of European Union members. But unification requires that monetary policy be operated by a single monetary institution, and many operational issues must be addressed.
THE MAASTRICHT Treaty establishing the European Union (EU) requires EU members to satisfy a number of criteria before joining the economic and monetary union (EMU). With the start of EMU, expected in 1999, the currencies of participants will be irrevocably locked and, in time, replaced by a single currency, the euro.
A single currency has to be managed by a single monetary institution. The monetary authority for the system-the European System of Central Banks (ESCB)-will be made up of the European Central Bank (ECB) and the national central banks (NCBs) of the countries that participate in EMU. To pave the way for a European central bank, the European Monetary Institute (EMI) was set up in 1994. Its responsibilities include developing the framework for monetary and exchange rate policy, the ESCB's operational rules and procedures, and the statistical database; preparing the groundwork for issuing EU banknotes; and promoting efficient payments across countries' borders. The EMI will be replaced by the ECB when a decision is taken to move to economic and monetary union.
Maintaining price stability will be the ECB's primary objective, but the Maastricht Treaty defines only in general terms how the ECB should operate: there should be open markets with free competition; the ESCB cannot finance public deficits or buy government securities in the primary markets; and the execution of its operations should be decentralized so that recourse can be made to the NCBs "to the extent deemed possible and appropriate."
The EMI has been focusing on monetary policy strategy, procedures, and instruments. Operating monetary policy will require a uniform stance throughout the monetary union, defined as the equality of interest rate levels in the EMU interbank market. To make this work, monetary policy formulation has to be centralized; instruments and techniques should be harmonized so that monetary policy signals are uniform across countries; and sufficient possibilities for EMU-wide arbitrage should be available so that interest rate changes can be transmitted quickly and uniformly throughout the monetary union. This last condition requires, at a minimum, a same-day EMU-wide payment and settlement system to support wholesale transactions.
Operating monetary policy in the EMU raises two basic questions: what variable(s) should serve as target(s) to reach the price stability objective, and what instruments should be used to reach the target(s)?
Regarding targets, discussion seems still to be open as to whether the ESCB will make use of an intermediate monetary target or will use an alternative, in particular, a direct inflation target. In many EU countries in recent years, especially because of widespread financial innovation, there has been a breakdown of the relationships between money and inflation. These relationships are also likely to be uncertain in the early days of the EMU. Nevertheless, the apparent success of the monetary targeting approach used in Germany might give added credibility to the ECB at the start-up of the EMU if it adopts a similar framework. Also, recent studies of money demand relationships have tentatively shown a stable money demand at an aggregate European level. Besides, inflation targeting is relatively untested and therefore may not be a good option at the outset of policy operations of a new monetary institution.
Whatever the decision on which variable to target, there is general agreement on the use of the short-term interest rate as the operational target. There is also a general feeling that a money target and an inflation target could be operated with essentially the same set of monetary instruments. Indeed, a number of EU countries have shifted from one to the other in recent years without this of itself leading to a fundamental change in monetary instruments.
As for the selection of instruments, the EMI, guided by the ESCB statute, has put forward a number of criteria: efficiency and effectiveness, market conformity, equal treatment with respect to all groups of financial institutions that have access to the ESCB, simplicity and transparency in support of the other criteria, decentralization to the extent possible, and continuity in the transition to the new operational framework.
The principle of decentralization deserves some attention. While monetary policy formulation in the EMU must, by definition, be centralized, there is an ongoing discussion regarding the degree to which implementation can be decentralized. An argument in favor of decentralization is that because the NCBs know local financial markets well, they can implement monetary policy more effectively. There is also a desire to maintain a role for the NCBs, partly because there may be a linkage between the monetary operations of an NCB and prospects for financial markets in that country. But not all instruments are candidates for decentralization. Management of reserve requirements and standing facilities can clearly be conducted on a decentralized basis, but there is less experience with decentralization of open market operations.
Instrument frameworks
The ESCB could use three types of instruments: reserve requirements, standing facilities, and open market operations (OMOs). The choice among them depends to a large extent on views regarding the respective roles of the central bank and the markets in stabilizing the system. At one extreme, interest rates are targeted very narrowly. With little use of the self-stabilizing properties in the system, the ESCB would have to operate frequently in the market to achieve the target. At the other extreme, the authorities set a corridor within which interest rates can fluctuate (they effectively set interest rate bounds), and the self-stabilizing properties of the system will reduce the frequency of the central bank's discretionary interventions in the market. In practice, most EU central banks have been operating somewhere between these models. For instance, the Bundesbank sets interest rate bounds and intervenes in the markets to manage movements within these bounds.
Reserve requirements.
Deposits that banks are required to hold with the central bank to back their own deposit liabilities-reserve requirements-fulfill two monetary functions: monetary control and money market management. As a monetary control device, reserve requirements help stabilize the relationship between reserve money and broader measures of money (this is usually called the money multiplier) and increase the extent to which the demand for money responds to a change in interest rates in case of less than full remuneration of the required reserves. The money market management function consists of inducing or enlarging the banks' demand for reserves and, when reserve requirements only need to be met on average during the holding period, limiting the effect of daily reserve fluctuations on money market interest rates. Less volatile money market rates, in turn, reduce the need for frequent central bank intervention.
The recent widespread trend to lower reserve requirements reflects increasing recognition of the implicit tax that unremunerated reserve requirements entail, which may encourage customers to bypass the banking system (a process known as disintermediation). With financial deregulation, the scope for disintermediation, including offshore, has been growing. However, those countries that continue to maintain a monetary target, in particular, Germany, are concerned to have available the monetary control capability of reserve requirements, although they too have generally lowered the level of reserve requirements in recent years. If the ECB adopts a monetary target, monetary control arguments for reserve requirements may be given some consideration, although the level of reserve requirements in the EMU could be lower than that prevailing in some of the major countries until a few years ago.
The design of reserve requirements is related to their role. If much weight is placed on their monetary control function, the reserve requirement ratio (the ratio of banks' required reserves held at the NCB to banks' deposit liabilities) should be non-negligible, and the reserves should not be fully remunerated. However, the market management function can be fulfilled with a relatively low ratio; indeed, averaging the ratio around zero would be a feasible option that would limit some of the instrument's drawbacks. If reserve requirements different from zero were imposed, there would be no monetary reason preventing the authorities from remunerating them. Other issues in the design of reserve requirements—on what base and for which period they should be calculated, and for how long they should be maintained—are unlikely to cause any great difficulty. However, there is the issue as to whether the ESCB/ECB statute—which says that only credit institutions, defined as those institutions that both accept deposits and extend credits, are required to hold reserves— might not be too restrictive from a monetary policy point of view. A wider definition would be "financial institutions," which include mutual funds and, in some countries, postal financial services.
A related issue is the degree to which a commercial bank would be able to choose in which NCB it would maintain its required reserves. The Maastricht Treaty provisions for the sharing of NCBs' profits may make the NCBs relatively relaxed about the distribution of required reserves between them. Nevertheless, there may be concern that freedom to choose could lead banks to shift to those centers where relatively large amounts of financial business are undertaken, spurring the shift toward these centers. In any case, even if they can choose, uniformity of reserve requirements will reduce banks' incentive to micromanage the location where they satisfy the requirement.
Standing facilities. These are central bank financing facilities for commercial banks that can be activated at their discretion. There are three types: marginal lending facilities (a Lombard facility) at above-market rates; lending (discount) facilities close to or below market rates; and deposit facilities.
Combining standing facilities to establish a "corridor" to guide interest rate movements has considerable appeal. Such a corridor could clearly signal the stance of monetary policy. Changes in the rates on the standing facilities would generally signal a substantive policy change, while changes in interest rates deriving from open market operations might rather reflect day - today developments and indeed, in some cases, purely technical factors. At present, a majority of EU central banks use a combination of such standing facilities. Preparatory work has been undertaken to establish two standing facilities: a marginal lending facility and a deposit facility. The combination of a Lombard and a deposit facility would provide a symmetrical arrangement to clear the interbank market at the end of the day; liquidity can be injected at the ceiling rate and absorbed at the floor rate.
The width of the band-an issue still under discussion-has consequences for the intensity of the central bank's presence in the market, and for the depth of the money markets. A fairly wide band would reduce the frequency with which the central bank would need to intervene through open market operations, as well as the frequency of recourse by the commercial banks to the central bank's standing facilities.
The possibility has not been excluded that the ESCB could supplement its instruments with additional modalities for providing liquidity to the markets, for instance through a special refinancing facility with a maturity of a few months. This aspect is still under study.
Open market operations. OMOs are to be the key instrument in steering day-to-day developments in the money markets. They are seen as the main instrument for providing or withdrawing liquidity, steering interest rates, and, if needed, performing signaling functions. Decisions have still to be made on issues such as decentralization, which institutions can participate (counterparties), and remote access.
There are regular OMOs, which may take place at prespecified intervals (e.g., weekly or biweekly), and fine-tuning OMOs that could be done at any time, according to short-term liquidity developments. Repurchase agreements (repos, or reverse repos-agreements to purchase or sell a security and to resell or repurchase it at a specified time in the future at a specified price) will be the preferred technique in conducting OMOs because they increase the central bank's flexibility with respect to the maturity of its interventions, reduce the impact on the market prices of the underlying securities, and circumvent more easily the potential problems that might otherwise arise with respect to the choice of eligible securities. However, the ESCB may use other techniques such as outright sales, foreign exchange swaps, issuance of central bank paper, and collection of fixed-term deposits.
In a decentralized execution of OMOs, the ESCB can take advantage of each NCB's knowledge of the local markets. Thus, under the instructions of the ECB, the NCBs would organize the bidding process, passing on bids received to the ECB for allocation decisions.
The principle of equal treatment in the statute of the ESCB points to using the widest possible range of counterparties for the central bank's OMOs. Often, only those institutions subject to reserve requirements are allowed to act as counterparty to the central bank in OMOs.
Whatever the definition of eligible counterparties, there is also the issue of "remote access," that is, whether an NCB can be accessed by an EU bank established outside the national borders of the NCB. The principle that all banks recognized in one member state are authorized to do business in all member states can be understood to imply that all financial institutions could participate in auctions organized by central banks in other countries. While the principle of remote access is in line with the principles of the single market, central banks could create such an environment that there would be little reason for banks to seek it.
Payment system
An important element of the preparations for monetary union is the construction of a payment system to support achievement of pan-Union uniformity of interbank interest rates. This requires that settlement of large-value, cross-border transactions, in particular those associated with the ESCB's operation of monetary policy, can be made on a same-day basis. A two-stage approach has been adopted to achieve this requirement: first, creating national large-value, real-time gross settlement (RTGS) systems with certain defined conditions in each EU member, and second, interlinking these systems at the EU level.
Each NCB is committed to introducing a large-value, real-time gross settlement system by mid-1997. For some NCBs, this involves redesigning their existing system, for others, building a new one. Work is also under way to develop an interlinking system, which, together with the national RTGS system, will be denoted the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET) system. Much progress has been made in this area, and the required deadlines seem within reach.
The TARGET system will offer payment services at a speed similar to those offered domestically. The system will enable participants in the national RTGS systems to exchange domestic and cross-border payments in euro in the same way. TARGET will be based on real-time settlement and will, therefore, eliminate most settlement risks typically associated with net settlement systems. In contrast to national payment arrangements, TARGET will have two settlement agents: at the one end, the NCB that credits the account of the payee, and at the other end, the NCB that debits the account of the payer. However, the system does not create any delay in the transfer of funds, despite the existence of two settlement agents.
The TARGET system will be designed to operate only in euro. This raises questions for the start of EMU, when national currencies will still be circulating. The preferred solution seems to be that the system will convert national currencies into euro at the outset of the transaction, and will convert back at the end.
Interestingly, the TARGET system will be available to all member NCBs, even in countries that are not in the EMU at the outset, although, as noted above, only for transactions in euro. Access to the single-currency, large-value payment system may provide an incentive for banks and enterprises in non-EMU countries to undertake cross-border transactions in euro, which could lead to switching into euro even in those EU countries not in the EMU. If costs of financial operations are lower in EU countries outside the EMU area than in those inside, financial institutions may shift their business to centers where it is relatively more profitable to centralize their treasury operations.
The issue of remote access is also relevant in the design of the payment system. While it would be difficult to resist remote access to payment facilities, conditions of access to particular NCBs, and hence the rules of operation of the various RTGS systems, could be so harmonized that there is no particular incentive for remote access.
Decisions on a number of technical and policy issues have still to be made. While harmonization of operating rules seems desirable in principle, some questions remain to be addressed. As regards opening hours, for instance, there is a concern that maintaining shorter hours in some countries may lead to a switch to those EU centers with longer opening hours. Also, any attempt to restrict hours might lead to a shift of business out of the EMU.
Regarding design of a uniform pricing system, pricing should cover the development costs of the system and be uniform across the EMU. However, development costs have been quite different across countries. The Scandinavian countries, for instance, essentially already had their RTGSs in place. A uniform price will be set for each transaction using the interlinking system, to avoid having banks source their transactions to minimize payment costs.
With these issues likely to be resolved soon, there is the prospect of the imminent introduction of a payment system throughout the EU that should represent the state of the art in terms of technology and payment risk analysis.
External issues
Under the Maastricht Treaty, the foreign exchange regime is to be determined by the Council of Ministers after consultation with the ECB, with the endeavor to reach consensus consistent with the price stability objective. The ESCB will be responsible for foreign exchange operations. It is widely held that the EMU will adopt a floating rate regime, at least at the outset.
Since not all EU countries may be able to join the EMU at the outset, the question arises as to which type of exchange rate arrangement should be established to link the non-EMU currencies to the euro and whether, in such an arrangement, as under the present European Monetary System (EMS), there should be provision for short-term credit facilities.
As pointed out earlier, it is not impossible that in countries that do not join the EMU at the outset, there could be increasing use of the euro, particularly in the smaller countries. If this happens on a large scale, it would reduce the monetary independence of the countries affected and could also influence EMU monetary policy.
The models for the execution of foreign exchange operations are broadly analogous to those for domestic monetary operations: a centralized model in which the ECB carries out interventions from one single dealing room, and a decentralized system in which NCBs receive instructions from the ECB and undertake the actual interventions in their home markets.
The statute of the ESCB has stipulated an upper limit on the amount of the NCBs' foreign reserves that can be called up by the ECB. It is expected that the external debt-service needs of EMU members will be the major factor determining the level of the remaining national reserves (foreign exchange working balances). NCBs will be subject to ECB guidelines to ensure that they manage reserves in such a way that their actions in the foreign exchange markets do not interfere with the Union's monetary and foreign exchange policies.
Conclusion
The prospect of the EMU has led the EU central banks to put substantial efforts into examining the optimal design of instruments to operate a market-responsive monetary policy. This is taking place against a background in which the conditions of operating monetary policy are very different from those of even a few years ago: financial liberalization, facilitating the movement of financial flows; information system developments, enabling policy signals to be transmitted instantly across entire regions and across financial sectors; a deeper understanding of the implications of central bank independence and price stability as the primary policy objective; and finally, the increasing recognition of the interdependence between the effective operation of monetary policy and an adequate payment system infrastructure.
Although there is no decision yet as to whether a monetary aggregate should be used as an intermediate target, it seems to be agreed that short-term interest rates should be the operational target. The ECB will operate on this target using some combination of reserve requirements, standing facilities, and OMOs. The relative emphasis placed on these instruments is likely to depend on a number of factors:
The development of a pan-EU payment system is an integral part of the preparation for the EMU. Considerable work has been undertaken to develop RTGS systems in the member countries and to link these national systems. A number of issues are under consideration, including remote access and the degree of harmonization needed in the operating procedures of the pan-EU payment system.
These discussions are likely to have important implications for the conduct of monetary policy in other countries too. For instance, the Maastricht Treaty's provisions on central bank independence are already influencing central bank laws in other parts of the world. The resultant withdrawal of some EU central banks from their traditional function of acting as banker to the government may also come under wider consideration. The development of the RTGS system is likely to spur the development of such systems in other countries, in parallel with work done in wider groupings of countries such as the Group of Ten. Decisions reached on the choice of monetary instruments are likely also to have a considerable influence well beyond the countries of the EU.
Charles Enoch, a UK national, is Chief of theMonetary and Exchange Policy Review Division in the IMF's Monetary and Exchange Affairs Department
Marc Quintyn, a Belgian national, is a Senior Economist in the IMF's Central Asia Department
Appendix 2
Core Principles for Effective Banking Supervision
Following is the press statement of the Basle Committee on Banking Supervision of the Bank for International Settlements marking the release of the "Core Principles for Effective Banking Supervision." The press statement, released on September 22, 2009, outlines the work of the committee and lists 25 principles of effective supervision. The full 46-page text of the Core Principles is available on the Bank for International Settlements Internet site at http://www.bis.org/publ
The Basle Committee on Banking Supervision, with the endorsement of the central bank Governors of the Group of Ten countries, is today releasing the Basle Core Principles for Effective Banking Supervision. This document, which is a revised version of a consultative paper released in April 1997, establishes a set of twenty-five basic Principles which the Basle Committee believes must be in place for a supervisory system to be effective.
The Basle Core Principles have been drawn up by the Basle Committee in close collaboration with the supervisory authorities in fifteen emerging market countries and have benefited from broad consultation with many other supervisory authorities throughout the world.
The Principles represent the basic elements of an effective supervisory system. They are comprehensive in their coverage, addressing the preconditions for effective banking supervision, licensing and structure, prudential regulations and requirements, methods of ongoing banking supervision, information requirements, formal powers of supervisors and cross-border banking.
The Basle Core Principles are intended to serve as a basic reference for supervisory and other public authorities worldwide to apply in the supervision of all the banks within their jurisdictions. Supervisory authorities throughout the world will be invited to endorse the Core Principles, not later than October 1998. Endorsement will include an undertaking to review current supervisory arrangements against the Principles. The speed with which changes can be introduced will vary, depending on whether the supervisory authorities already possess the necessary statutory powers. Where legislative changes are required, national legislators are requested to give urgent consideration to the changes necessary to ensure that the Principles can be applied in all material respects.
1.The Basle Committee on Banking Supervision is a Committee of banking supervisory authorities which was established by the central bank Governors of the Group of Ten countries in 1975. It consists of senior representatives of bank supervisory authorities and central banks from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, Netherlands, Sweden, Switzerland, United Kingdom and the United States. It usually meets at the Bank for International Settlements in Basle where its permanent Secretariat is located.
2.The Basle Committee has been working to improve banking supervision at the international level for many years, both directly and through its many contacts with banking supervisors in every part of the world. In the last year and a half, it has been examining how best to expand its efforts aimed at strengthening prudential supervision in all countries by building on its relationships with countries outside the G-10 as well as on its earlier work to enhance prudential supervision in its member countries. In April 1997 the Committee released two documents:
Both documents, with the endorsement of the G-10 central bank Governors, were submitted to the G-7 and G-10 Finance Ministers in preparation for the Denver Summit in the hope that they would provide a useful mechanism for strengthening financial stability in all countries. They were welcomed by Ministers at the Summit and the Committee was encouraged to continue its work.
3. The document now being issued is a revised version of the April 1997 document. There are still twenty-five Principles and only a few contain changes of substance. Other changes to the document are mostly textual in nature.
4. In developing the Principles, the Basle Committee has worked closely with non-G-10 supervisory authorities. The document has been prepared in a group containing representatives from the Basle Committee and from Chile, China, the Czech Republic, Hong Kong, Mexico, Russia and Thailand. Nine other countries (Argentina, Brazil, Hungary, India, Indonesia, Korea, Malaysia, Poland and Singapore) were also closely associated with the work. The drafting of the Principles benefited moreover from broad consultation with a larger group of individual supervisors, both directly and through the regional supervisory groups, as well as with the International Monetary Fund and World Bank.
5. The document calls on national agencies to apply the Principles in the supervision of all banking organizations within their jurisdictions. The Principles are minimum requirements and in many cases may need to be supplemented by other measures designed to address particular conditions and risks in the financial systems of individual countries.
6. The Basle Core Principles are intended to serve as a basic reference for supervisory and other public authorities in all countries and internationally. It will be for national supervisory authorities, many of which are actively seeking to strengthen their current supervisory regime, to use the attached document to review their existing supervisory arrangements and to initiate a programme designed to address any deficiencies as quickly as is practical within their legal authority.
7. The Principles have been designed to be verifiable by supervisors, regional supervisory groups, and the market at large. The Basle Committee will play a role, together with other interested organizations, in monitoring progress made by individual countries in implementing the Principles. It is suggested that the IMF, the World Bank and other interested organizations use the Principles in assisting individual countries to strengthen their supervisory arrangements in connection with their work aimed at promoting overall macroeconomic and financial stability.
8. Supervisory authorities throughout the world are encouraged to endorse the Basle Core Principles. The members of the Basle Committee and the sixteen other banking supervisory agencies that have participated in their drafting all agree with the content of the document.
9. The Basle Committee believes that achieving consistency with the Core Principles by every country will be a significant step in the process of improving financial stability domestically and internationally. The speed with which this objective will be achieved will vary. In many countries, substantive changes in the legislative framework and in the powers of supervisors will be necessary because many supervisory authorities do not at present have the statutory authority to implement all of the Principles. In such cases, the Basle Committee believes it is essential that national legislators give urgent consideration to the changes necessary to ensure that the Principles can be applied in all material respects. The need for new legislation will be taken into account by the Basle Committee in monitoring progress towards implementation.
10. The Basle Committee will continue to pursue its standard-setting activities in key risk areas and in key elements of banking supervision as it has done in documents such as those reproduced in the Compendium. The BasleCore Principles will serve as a reference point for future work to be done by the Committee and, where appropriate, in cooperation with non-G-10 supervisors and their regional groups. The Committee stands ready toencourage work at the national level to implement the Principles in conjunction with other supervisory bodies and interested parties. Finally, the Committee is committed to strengthening its interaction with supervisors from non-G-10 countries and intensifying its considerable investment in technical assistance and training.
11. The twenty-five Core Principles are set out below.
Preconditions for Effective Banking Supervision
1. An effective system of banking supervision will have clear responsibilities and objectives for each agency involved in the supervision of banking organizations. Each such agency should possess operational independence and adequate resources. A suitable legal framework for banking supervision is also necessary, including provisions relating to authorization of banking organizations and their ongoing supervision; powers to address compliance with laws as well as safety and soundness concerns; and legal protection for supervisors. Arrangements for sharing information between supervisors and protecting the confidentiality of such information should be in place.
Licensing and Structure
2. The permissible activities of institutions that are licensed and subject to supervision as banks must be clearly defined, and the use of the word "bank" in names should be controlled as far as possible.
3. The licensing authority must have the right to set criteria and reject applications for establishments that do not meet the standards set. The licensing process, at a minimum, should consist of an assessment of the banking organization’s ownership structure, directors and senior management, its operating plan and internal controls, and its projected financial condition, including its capital base; where the proposed owner or parent organization is a foreign bank, the prior consent of its home country supervisor should be obtained.
4. Banking supervisors must have the authority to review and reject any proposals to transfer significant ownership or controlling interests in existing banks to other parties.
5. Banking supervisors must have the authority to establish criteria for reviewing major acquisitions or investments by a bank and ensuring that corporate affiliations or structures do not expose the bank to undue risks or hinder effective supervision.
Prudential Regulations and Requirements
6. Banking supervisors must set prudent and appropriate minimum capital adequacy requirements for all banks. Such requirements should reflect the risks that the banks undertake, and must define the components of capital, bearing in mind their ability to absorb losses. At least for internationally active banks, these requirements must not be less than those established in the Basle Capital Accord and its amendments.
7. An essential part of any supervisory system is the evaluation of a hank's policies, practices and procedures related to the granting of loans and making of investments and the ongoing management of the loan and investment portfolios.
8. Banking supervisors must be satisfied that banks establish and adhere to adequate policies, practices and procedures for evaluating the quality of assets and the adequacy of loan loss provisions and loan loss reserves.
9. Banking supervisors must be satisfied that banks have management information systems that enable management to identify concentrations within the portfolio and supervisors must set prudential limits to restrict bank exposures to single borrowers or groups of related borrowers.
10. In order to prevent abuses arising from connected lending, banking supervisors must have in place requirements that banks lend to related companies and individuals on an arm's-length basis, that such extensions of credit are effectively monitored, and that other appropriate steps are taken to control or mitigate the risks.
11. Banking supervisors must be satisfied that banks have adequate policies and procedures for identifying, monitoring and controlling country risk and transfer risk in their international lending and investment activities, and for maintaining appropriate reserves against such risks.
12. Banking supervisors must be satisfied that banks have in place systems that accurately measure, monitor and adequately control market risks; supervisors should have powers to impose specific limits and/or a specific-capital charge on market risk exposures, if warranted.
13. Banking supervisors must be satisfied that banks have in place a comprehensive risk management process (including appropriate board and senior management oversight) to identify, measure, monitor and control all other material risks and, where appropriate, to hold capital against these risks.
14. Banking supervisors must determine that banks have in place internal controls that are adequate for the nature and scale of their business. These should include clear arrangements for delegating authority and responsibility; separation of the functions that involve committing the bank, paying away its funds, and accounting for its assets and liabilities; reconciliation of these processes; safeguarding its assets; and appropriate independent internal or external audit and compliance functions to test adherence to these controls as well as applicable laws and regulations.
15. Banking supervisors must determine that banks have adequate policies, practices and procedures in place, including strict "know-your-customer" rules that promote high ethical and professional standards in the financial sector and prevent the bank being used, intentionally or unintentionally, by criminal elements.
16. An effective banking supervisory system should consist of some form of both on-site and off-site supervision.
17. Banking supervisors must have regular contact with bank management and thorough understanding of the institution's operations.
18. Banking supervisors must have a means of collecting, reviewing and analyzing prudential reports and statistical returns from banks on a solo and consolidated basis.
19. Banking supervisors must have a means of independent validation of supervisory information either through on-site examinations or use of external auditors.
20. An essential element of banking supervision is the ability of the supervisors to supervise the banking group on a consolidated basis.
21. Banking supervisors must be satisfied that each bank maintains adequate records drawn up in accordance with consistent accounting policies and practices that enable the supervisor to obtain a true and fair view of the financial condition of the bank and the profitability of its business, and that the bank publishes on a regular basis financial statements that fairly reflect its condition.
22. Banking supervisors must have at their disposal adequate supervisory measures to bring about timely corrective action when banks fail to meet prudential requirements (such as minimum capital adequacy ratios), when there are regulatory violations, or where depositors are threatened in any other way. In extreme circumstances, this should include the ability to revoke the banking license or recommend its revocation.
23. Banking supervisors must practice global consolidated supervision over their internationally-active banking organizations, adequately monitoring and applying appropriate prudential norms to all aspects of the business conducted by these banking organizations worldwide, primarily at their foreign branches, joint ventures and subsidiaries.
24. A key component of consolidated supervision is establishing contact and information exchange with the various other supervisors involved, primarily host country supervisory authorities.
25. Banking supervisors must require the local operations of foreign banks to be conducted to the same high standards as are required of domestic institutions and must have powers to share information needed by the home country supervisors of those banks for the purpose of carrying out consolidated supervision.
Economic Perspectives
Electronic Journal, Vol. 3, No. 4, August 2009
Appendix 3
America's Housing Market
America's booming housing market, and the government-sponsored agencies that are financing it, may be the source of nasty economic problems ahead
House prices are notoriously cyclical. So it is fair to assume that the boom currently being experienced by America's housing market will not last forever. When the market does turn down, it will have the usual dampening effect on economic growth. In this cycle, however, there may be even more to worry about. A reversal in the housing market could have serious implications for the institutions whose lending has fuelled the boom. These include government-"sponsored" mortgage agencies such as Fannie Mae (the Federal National Mortgage Association), Freddie Mac (the Federal Home Loan Mortgage Corporation) and the Federal Home Loan bank system, which is mutually owned by thrifts. These institutions are increasingly important to the health of America's entire financial system.
The agencies have been increasing their lending at a 20% annual rate in the past couple of years, as, to rather less attention, has the Federal Home Loan system. The federal mortgage agencies already have combined debts of $1.4 trillion.
The financial markets may be allowing this to happen only because they believe, with some justification, that if things go wrong, the government will come to the rescue. Housing is a political minefield. Fannie and Freddie were fighting off complaints that they were lending too little, particularly to the poor and to ethnic minorities.
Nonetheless, it is the ballooning balance sheets, and the potential liabilities for the taxpayer, that are the most urgent focus of attention. Although they started life as fully public bodies - Fannie Mae in 1938, Freddie Mac in 1970 - they have since moved into a twilight zone between the public and private sectors. Shares in both are listed on the New York Stock Exchange. Both say they are genuinely private companies, which do not receive a penny from the government. Indeed, they are among the 50 most profitable American companies.
Yet they also enjoy benefits not available to any truly private firm, such as exemption from state and local taxes. They face less testing capital requirements than their private-sector rivals, allowing them to load on much higher levels of borrowing. Fannie and Freddie have roughly $32 of debt for each dollar of capital, compared with $11.50 of debt per dollar at large banks. Their implicit government guarantees allow them to borrow cheaply. And they have an emergency credit-line from the Treasury of $8.5 billion (so far unused). A third agency, the Government National Mortgage Association, known as Ginnie Mae, has an explicit guarantee, but is a much smaller organisation.
In 1996, various official reports looking at the case for a complete privatisation of Fannie and Freddie concluded that its quasi-public status represented a subsidy worth around $6 billion a year. According to the reports, as much as one-third of the subsidy is not passed on to mortgagees. Instead, it goes to shareholders and employees. Recently, Fannie's and Freddie's return on equity has averaged 24%, compared with 15-17% for private banks and securities firms. And pay is way above public-sector (and indeed most private-sector) rates.
At first, the federal mortgage agencies provided useful liquidity, making it easier for people to get a home loan. In the 1970s and 1980s they led the development of asset-backed securities markets, by selling bundles of mortgages, something none of America's then small mortgage banks could have dreamed of doing. Now, though, the financial markets are large and sophisticated enough to do without a federal helping hand.
So Fannie and Freddie may be doing more harm than good. They make mortgages slightly cheaper, while mostly stifling truly private competition (though currently they are making it easier for start-up Internet lenders to take on the established banks, prompting the banks to lobby harder against them). And they are expanding their range of activities. They are moving into "sub-prime" lending to less creditworthy borrowers. Some of the firms in that market reckon that the agencies' recent crusade against "predatory lending" in these markets is merely a figleaf to cover up their own predatory swoop.
A recent study by the American Enterprise Institute says that Fannie and Freddie are on course to "nationalise" the residential-mortgage market. Bert Ely, a co-author, reckons that their profit goals may lead them to expand into "jumbo" mortgages, above their current lending ceiling for individual mortgage loans, and even into commercial mortgages and small-business loans.
There are further reasons to worry. Fannie and Freddie's debt and securities are exempt from regulations that limit banks' exposure to the securities of any single private company. Currently, bank-held federal-agency securities and debt amount to one-third of total bank capital - a highly concentrated risk.
Fannie and Freddie may have fuelled an unsustainable credit bubble. The expansion of their balance sheets in the past two years represents massive credit-creation. Doug Noland of David Tice, a fund-management firm, reckons that their purchases of mortgage-backed securities during the financial crisis in autumn 1998 bailed out many troubled financial firms. Their continued expansion since then has pumped liquidity into the system when the Federal Reserve was trying to reduce it.
Precisely what their role has been is hard to measure, not least because they have been big participants in the less transparent corners of the derivatives markets. Nobody suggests the agencies are in any immediate danger. Fannie points out that defaults total only three cents for every $100 it lends. But, since they expanded so fast, the quality of their risk management has not been tested by a market downturn. Ominously, during the last housing bust in the 1980s, Fannie became technically insolvent, though regulators allowed it to "grow out of its difficulties".
The markets may be waking up to the risks. Ironically, the turning-point came earlier this year, when it was suggested that, as the supply of Treasury bonds dwindles thanks to the federal government's surplus, mortgage-agency debt could replace them as the benchmark used for pricing other fixed-income securities. Treasuries are guaranteed by the federal government, whereas Fannie's and Freddie's debt is not, at least in theory. Proposals for reform fall into two broad camps. One is to try to rein in the agencies, by keeping them to their narrow lending remit and imposing tougher capital requirements. The other, cleaner, approach would be to privatise them, so that the markets are left in no doubt that their debt carries no government guarantee, implicit or explicit. There is an encouraging precedent: in 1997 Sallie Mae, the student loans agency, was privatised by separating its government-guaranteed loans and debts from its future, non-guaranteed, activities. Expect Fannie and Freddie to pull all their influential political strings to stop it happening to them.
* "Nationalising Mortgage Risk. The Growth of Fannie Mae and Freddie Mac". By Peter Wallison and Bert Ely, AEI, 2000
The Business Cycle Lives Again
SAMUEL BRITTAN, ECONOMIC VIEWPOINT
The US recession is more deep-seated than central bankers admit - but it may have benign side-effects in Europe
The Federal Reserve's emergency interest rate cut of January 3 was almost certainly triggered by financial indicators. There have been rumours about particular financial institutions but the widening of corporate bond spreads has been a fact, as has been the sharp, but perhaps temporary, narrowing since Alan Greenspan, Fed chairman, acted.
As for the real economy, it is no longer a question of when the US recession will begin but how long it will last and how far it will go. Private sector forecasters predict a drop in gross domestic product of about 0,5 per cent at an annualised rate in the first quarter of this year. But I am less sanguine about the sharp rebound most of them expect soon afterwards.
It helps, however, to look at the immediate data in historical perspective. In the depressed 1930s two views of the business cycle contended among economists. According to Keynes the trouble was underinvestment. The opposite, so-called "Austrian" point of view saw the trouble in overinvestment during the boom phase. (The name "Austrian" was a partial misnomer as the bastion of this theory was the London School of Economics.)
In any case, the exponents of that theory were dealt a body blow by their bad timing. During one of the worst depressions in modern history, a theory that stressed overinvestment did not stand an earthly chance. By the end of the 1930s, even most economists at the LSE had gone over to Keynes.
But a theory that may be inappropriate for the time it is put forward may have a lot to tell us at other periods.
The vigorous booms in the US in the last few years of the 20th century, and its recent crumbling, have the trappings of an Austrian-type cycle.
As a minority of skeptics has been pointing out for some time, there has been overinvestment in the US. It is not only stock market prices that have been too high. There has also been excess physical investment. It would be surprising if there were no excess capacity to work off.
The US readjustment could indeed be more difficult than that predicted by the Austrian theory. According to that theory, the investment boom is made possible by abnormally high domestic savings. But in the recent US boom - and, for that matter, in its weaker copy in the UK - there has been no squeeze at all on consumption, which has risen vigorously in the past five years. The savings to finance US investment have come partly from large budget surpluses, which count as savings in national income arithmetic, and also from a current payments deficit financed by inward investment.
Indeed, US personal savings have virtually disappeared. Because of the "wealth effect" generated by rising asset prices, Americans have felt that they could prudently consume more than they earned without eating into their financial resources. But once the stock exchange euphoria comes to an end the wealth effect disappears and people return to their normal saving habits.
Thus the US investment adjustment looks like being accompanied by a squeeze on consumer spending as well. The two forces would then have their usual multiplier effects on each other and on the economy. One mitigating factor is that real property values have held up better than equity prices, although if the recession continues this support could weaken. As it is, the recession is likely to be more obstinate than the optimistic central bankers' statements about a mere slowdown to 2,5 per cent growth this year.
What, then, should be the policy response? Clearly, to act promptly on signs of real weakening in the US economy rather than on prophecies of doom. But what should be the mix between monetary and fiscal stimulation? A benefit of further monetary relaxation is that it acts more quickly.
The offsetting danger of sharp interest rate cuts is that they could postpone the liquidation of the excesses of the recent boom and could even reinforce the idea -specifically disowned by Mr. Greenspan - that the Fed has the duty of supporting the equity market.
The case for acting on the fiscal front is that tax cuts have a more direct effect on consumption. But I cannot help being amused by the rush of Republican policy advisers, who previously proclaimed the utmost skepticism both about fiscal policy and about fine-tuning, to say that the prospective tax cuts are urgently needed to fight recession. In this they will be joined by Democrats who do not want to be accused of pushing the economy into a slump.
I have a -lurking suspicion that the structural budget surplus is exaggerated by recent estimates and will melt away when economic cold winds force a reassessment of the arithmetic - as they did in Britain in the early 1990s and could do again. And tax cuts are less likely to stimulate spending if consumers suspect that they cannot be afforded in the long run and ultimately will have to be reversed.
How about the overseas impact? A US recession normally has its severest and earliest effects on the Pacific area and Latin America. But in Europe there may even be some benign aspects, at least in the early stages. Were it not for the cold wind from across the Atlantic there would in fact be a case for an increase in the UK's base rates. Domestic demand is still growing vigorously: the payments deficit is rising; and skill shortages head the list of business complaints.
The slowdown in UK growth at the end of last year is deceptive. As the National Institute of Economic and Social Research has pointed out, the economy has been "depressed by the effects of the rail stoppages and weak output in the oil industry. This does not indicate a general slowdown and suggests the (Bank of England) was right not to reduce interest rates".
By encouraging the dollar to fall, further US interest rate cuts would relieve the worries of European policymakers who claim that the euro is undervalued. Thus even the European Central Bank might at last stop worrying about inflation and move towards stimulus. If a weaker dollar means a stronger euro, UK manufacturing will benefit and the UK economy will become better balanced.
A prolonged US recession would be a different story. It would be likely to have a bigger effect on Europe through confidence and financial effects than conventional forecasting models, which focus on visible trade, suppose. But it is one thing to foresee a danger and quite another to act prematurely on the assumption that it has already occurred - as those most stridently clamouring for UK interest rate cuts need to remember.
Wages in Recession
An intrepid economist ventures into the real world to investigate—and finds conventional explanations wanting
Economists dislike talking to people. They prefer a more "scientific" approach to research, such as number-crunching or abstract theorising. But that can be a weakness, as a new book by Truman Bewley, an economist at Yale University, makes clear. In "Why Wages Don't Fall During A Recession", published by Harvard University Press, he tackles one of the oldest, and most controversial, puzzles in economics: why nominal wages rarely fall (and real wages do not fall enough) when unemployment is high. But he does so in a novel way, through interviews with over 300 businessmen, union leaders, job recruiters and unemployment counsellors in the north-eastern United States during the early 1990s recession.
Explanations for why wages are sticky abound, but they are often unconvincing. Neoclassical economists, who have a starry-eyed faith in the efficiency of markets, think wage rigidity is an illusion. In their view, workers quit their jobs when pay starts to fall in a downturn. This stops wages falling much and makes them appear inflexible. But their theory implies that unemployment in a recession is voluntary - a view at which reasonable people might rightly scoff.
Keynesians, who accept that markets are often imperfect, think wages are sticky, but cannot agree why. Some blame unions or established employees ("insiders") for blocking pay cuts. Keynes himself thought that workers were so concerned about their wages relative to those at other firms that no company dared to cut pay. Others argue that firms pay high "efficiency wages" in order to make the threat of job loss more costly for workers and so spur them to work harder. (Wages might still fall in a recession, though, since workers are more afraid of not finding another job when unemployment rises.) Still others claim that firms implicitly insure workers against a fall in income in exchange for lower long-term average wages. And so on.
One or more of these theories may be true. Or perhaps none is. Economists do not really know, because the labour-market data with which they test their theories is inadequate. So Mr Bewley tried asking people who should be in the know. He is aware of the pitfalls: interviewees may be unrepresentative, lie or obfuscate. They may not understand their own motives. Still, since economists are ultimately trying to describe human behaviour, meeting real people ought sometimes to help.
Mr Bewley finds scant evidence to support the various wage-stickiness theories. His interviewees say unions are not to blame for wage rigidity: few American firms are unionised, and in those where unions are important "the first line of resistance to pay reduction was almost always management." Nor are "insiders" blocking pay cuts: few non-union workers bargain over wages with their employers, and no employer remarked on a sharp division of opinion over layoffs among workers, who more typically thought that pay cuts would not save jobs.
Keynes's theory gets short shrift too. Mr. Bewley finds that, although pay rates across non-union companies are connected by supply and demand, firms still have plenty of latitude in setting pay because workers have scant knowledge of pay rates elsewhere. Nor is much credence given to the efficiency-wage model. "People do work harder during a recession because they are concerned about their jobs ...however, the logic does not imply that companies pay well for reasons of discipline. They do so in order to attract and retain employees," says a typical personnel officer in a middling manufacturer. The implicit insurance model fares little better. Employers do not think such a bargain exists and believe that it would be unenforceable in any case, since long-term pay is determined by competitive conditions.
All in a day's work
Why, then, are wages sticky? Mr. Bewley concludes that employers resist pay cuts largely because the savings from lower wages are usually outweighed by the cost of denting workers' morale: pay cuts hit workers' standard of living and lower their self-esteem. Falling morale raises staff turnover and reduces productivity. Cheerier workers are more productive workers, not only because they work better, but also because they identify more closely with the company's interests. This last point is crucial. Mr. Bewley argues that monitoring workers' performance is usually so tricky that firms rarely rely on coercion and financial carrots alone as motivators. In particular, high morale fosters teamwork and information-sharing, which are otherwise difficult to encourage.
Firms typically prefer layoffs to pay cuts because they harm morale less, says Mr Bewley. Pay cuts hurt everybody and can cause festering resentment; layoffs hit morale only for a while, since the aggrieved have, after all, left. And whereas a generalized pay cut might make the best workers leave, and a selective one damage morale because it is seen as unfair, firms can often lay off their least competent staff.
Mr. Bewley's theory has some interesting implications. Pay cuts are more likely at firms whose demand for labour is price-sensitive, such as those in highly competitive industries. Since many markets are becoming more competitive, wages may also be getting more flexible - and unemployment may rise less in recessions. Wages are also likely to be less rigid in short-term jobs, where workers do not become attached to their firm. On the other hand, since more workers now do jobs that are hard to monitor, or in which they need to co-operate, share information, be creative or be nice to customers, wages may become stickier.
Mr. Bewley's book is not the last word on sticky wages. Some of his findings are probably specific to the north-eastern United States in the early 1990s. But his theory has a ring of truth to it. And if his example spurs other economists to venture out of their ivory towers, so much the better.
The Relations of the EU with the IMF
IMF by Robert Chote, Economics Editor
“Critics contend that the IMF was slow to pick up problems in its regular consultations with governments”.
The IMF is being urged to focus its surveillance efforts and to concentrate on its core areas of expertise.
The IMF performs surveillance of economic policies. The quality of this surveillance has been called into question by the financial crises that have swept emerging markets in the past 2,5 years. Critics of the EU contend that the IMF was slow to pick up problems in its regular consultations with member governments and that it could have done more to prevent the crises erupting.
In the light of this criticism the IMF's executive board commissioned three outside experts to carry out a review of the policy surveillance process.
Their report urged the Fund to focus its surveillance efforts. The institution should resist pressure to expand its surveillance activities into structural policies, concentrating instead on its core areas of expertise: exchange rate and other macroeconomic policies, the financial sector and capital account.
This is difficult given the enthusiasm of many policy-makers for using the IMF to police adherence to international standards or codes of good conduct. But "outside the Fund's core areas monitoring international standards should to the maximum extent possible be delegated to other international institutions or associations with the necessary expertise. Particular attention should be paid to any vulnerabilities which show up in individual economies.
The Fund was also encouraged to regard surveillance of national policies as a continuous process.
The euro-zone should be treated as a single unit for surveillance purposes. This is likely to prove controversial among European governments, many of whom feel that surveillance of the euro-zone should be carried out mostly by EU institutions themselves.
Surveillance of the largest economies has always been difficult. Financial markets have plenty of competing analyses on which they can base their judgments.
The study of the UN suggests that the surveillance of the US, Japan and the euro-zone economies should thus focus more on the international aspects of policy, notably the knock-on effect that policies in these economies have on the rest of the world. This partly reflects the experience of the recent financial crises, which were explained in part by the movement of the dollar/yen exchange rate.
Surveillance is not simply a question of analysis by the IMF staff and management. Another important issue is the way this analysis is considered and reflected upon by the IMF board, which comprises political representatives of IMF member countries (mostly organized into constituencies).
Each committee would deal with surveillance of a region corresponding to one of the Fund's area departments. The committees would, however, include directors representing countries both inside and outside the region concerned.
Appendix 4
Commercial Activities and Types of Contracts
Foreign trade comprises three main activities: importing (i.e. buying goods from foreign Sellers), exporting (i.e. selling goods to foreign Buyers) and re-exporting ( i.e. buying goods from foreign Sellers and selling them to foreign Buyers without processing in one's own country).
All commercial activities in foreign trade may be divided into basic ones associated with the conclusion of foreign trade contracts for the exchange of goods and auxiliary ones ensuring their successful performance, i.e. associated with carriage of goods, their insurance, banking operations (financing the deals, settlement of payments between the Sellers and the Buyers, guaranteeing the strict observance of their mutual liabilities), as well as Customs and other activities. Conclusion of agency agreements, agreements with the Suppliers for export goods and with Importers for the purchase of goods, agreements with advertising agencies and firms dealing with the market research and with other organizations helping to achieve the targets set for for eign trade also refer to auxiliary activities.
There may be about 10 or more auxiliary operations to one basic. In accordance with commercial usage existing in capitalist countries, contracts of sale and other agreements may be concluded either verbally or in writing.
The laws of Russia do not recognize the validity of any agree ment concluded verbally by the Trade Representation of Russia abroad or by export or import organization in this country. According to Russian law contracts must always be made in the form of duly signed documents containing the terms of an agreement between two firms or associations called counterparts (or parties) to supply goods or services as a rule at a fixed price.
Agreements and contracts concluded by the Trade Rep resentations are to be signed by the Trade Representative or his Deputy (first signature) and by an official of the Trade Representation specially authorized to sign agreements and contracts (second signature). The names of persons entitled to sign documents and contracts on behalf of the export or import associations abroad are published in the official journal of the Ministry of Foreign Economic Relations called "Foreign Trade".
Agreements and contracts made in our country are to be signed by Director General of the foreign trade association or his deputies (first signature) and by directors of firms or their deputies (second signature). Sometimes senior engineers of the firms are legally authorized to sign these documents.
In international trade contracts of sale, contracts for construction work (very often for the delivery, erection and commissioning of the equipment for industrial enterprises) and lease are most frequent among a variety of basic deals. Contracts of sale include turnkey contracts and large-scale contracts on a compensation basis. There may also be barter deals and compensatory deals'.
Licence agreements stand apart from all the above contracts because they do not deal with selling and buying physical goods but with the safe and purchase of ideas, scientific-technical knowledge in the form of licences, patents and know-how. As a rule there are practically no standard licence agreements. Each licence agreement is more or less unique in itself, i.e. has its own specific individual characteristics.
To ensure the fulfilment of the above basic contracts successfully and profitably, a number of auxiliary agreements (contracts) are to be concluded: Marine Insurance Policies or Certificates, Charter Parties, Agency and Distributorship agreements and so on. The Ail-Union Self-Supporting Foreign Trade Association is the one responsible for carrying on trade and other forms of foreign economic relations at the MFER, and import-export departments, at manufacturing enterprises.
Apart from marketing carried on regularly by special marketing departments at manufacturing works or branch ministries, which helps plan foreign trade, foreign trade activities proper comprise several stages:
1) market research work (analysis of the market conditions)
2) choosing proper methods of trade on this particular market
3) planning the foreign trade operation
4) carrying on a publicity campaign
5) preparation and conclusion or a contract of sale with a foreign counterpart
6) fulfilment of contract obligations.
Литература
Электронные источники
http://www.bis.org/publ
http://www.economywatch.com/world_economy/
http://www.theworldeconomy.org/
http://www.ft.com/uk/global-economy
http://www.worldeconomyandfinance.org/
http://www.imf.org/external/ns/cs.aspx?id=29
http://www.un.org./esa/policy/publications/publications.htm
http://www.foreignaffairs.com/
http://eng.globalaffairs.ru/numbers/3/477.html
http:www.topnews.in/business-news/world-economy
http:www.atimes.com/atimes/Global_Economy.html
http://economics.about.com/
http://www.economywatch.com/
http://www.wsws.org/category/world.shtml
Заключение
Предлагаемые в данном пособии задания способствуют закреплению умений извлекать необходимую информацию, уметь ее оценивать и анализировать. Кроме того, студенты имеют возможность ознакомиться с материалами, способствующими расширению их профессионального кругозора, а также активизации лексического материала по специальности «Мировая экономика». В пособии содержатся упражнения, направленные на моделирование фоновых знаний, на решение определенных учебно-познавательных задач в процессе чтения, на развитие умений аргументировать и выражать собственное мнение. Наличие ключей к ряду заданий позволяет использовать данное пособие в процессе индивидуальной и самостоятельной работы. Для повторения грамматического материала, наряду с упражнениями, содержащимися в пособии, целесообразно пользоваться методическими рекомендациями по выполнению контрольных работ и практикумами по грамматике, содержащимися в учебно-методическом комплексе по дисциплине на электронном носителе.
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