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ESSENTIAL ENGLISH FOR ECONOMISTS

ESSENTIAL ENGLISH FOR ECONOMISTS

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2006

 

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- Essential English for Economists ( )

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MODULE 1

UNIT 1 WHAT IS ECONOMICS?

Exercise 1.Read and learn the following words and word combinations:

economy , ; economic

;

economics (, );

microeconomics , macroeconomics

;

resource ; human and material resources

;

to manage , ;

household ; ;

to deal (with) ( ), ;

rational use ;

scarcity , (); scarce , ;

activity ; human activities ;

to analyze ;

to satisfy ;

heading , ;

to produce ; producer ; production

;

to consume ; consumer ; consumption

;

exchange ; to exchange ;

goods , ; (A.E. a good goods);

service ; to serve , ;

supply ; ; to supply ;

demand ;

to refer (to) (); ;

income , ;

input ;

output ;

economic growth ;

unemployment ;

inflation-

Exercise 2.Read and translate the following text.

What is economics?

The word economics comes from the Greek word oikonomos which means to manage resources of a household. As the resources are often limited economics deals with their rational use. All economic questions arise from the fundamental fact of scarcity. Nature does not provide all the things people want. Since human and material resources are scarce, everybody individuals, business firms, and governments needs to make choices from among the things needed or wanted. Economicsis the social science that describes and analyses choices from among scarce resources to satisfy peoples wants and needs.

Economics studies human activities which can be grouped under three broad headings: production, consumption and exchange. Production creates supply,that is,the ability of producers to provide goods and services to individuals at various prices. Consumption characterizes demand, that is, the desire of individuals to consume goods and services at various prices. The interrelationships between supply and demand are often referred to as exchange.

There are two ways of looking at economics and the economy: microeconomics and macroeconomics. Microeconomics is the study of individual consumersand the business firm. Microeconomics deals with the decisions made by individuals in determining how to get income and how to spend it. With regard to business firms microeconomics determines, first, how to use inputs in the production of output, and, second, how much output to produce.Macroeconomics is the study of the economy as a whole. It deals with the problems of economic growth, unemploymentandinflation. Each of these factors is an indicator of the overall state of the economy.

Exercise 3. Answer the following questions:

1. What language does the word economics come from?

2. Why does everybody need to make choices?

3. What does economics describe and analyze?

4. What human activities does economics study?

5. What is the connection between production and supply?

6. How are consumption and demand interrelated?

7. How can you define exchange?

8. What is microeconomics?

9. What is macroeconomics?

10. What economic problems does macroeconomics deal with?

Exercise 4. Translate into English.

; ; ; ; ; /; ; ; ; ; ; .

Exercise 5. Translate into Ukrainian.

Fundamental fact of scarcity; since; to make choices from; peoples wants and needs; which can be grouped under three broad headings; ability; at various prices; individual consumers; two way of looking at economics and the economy; how much output to produce; overall state of the economy.

Exercise 6.Match and learn the synonyms.

A: scarce, various, income, heading, want, provide, broad, deal with, consume;

B: supply, concern, wide, different, limited, title, use, earnings, desire.

Exercise 7. Match and learn the opposites.

A: scarce, broad, employment, input, income, ability;

B: spending, narrow, plentiful, disability, output, unemployment.

Exercise 8.Choose the proper word to complete the sentence.

1. Economics deals with the (broad/narrow) spectrum of economic problems. 2. Materials that go into the production of goods or services are called (input/output). 3. Nature does not provide people with all they want since the material resources are (plentiful/scarce). 4. Demand characterizes the (ability/ disability) to consume goods and services. 5. When the (income/spending) of a household increases, it can consume more goods and services.

Exercise 9. Read the definitions below, learn the difference in meaning of the following words and translate the sentences.

Economics science of the production, distribution and using up of goods.

Economy system of the management and use of economic resources.

Economic connected with trade, system of production.

Economical careful in the spending of money, time, etc and in the use of goods.

1. . 2. , , 㳿. 3. .

Exercise 10. Read the verbs and their explanation. Add suffix er/-or to form a corresponding noun denoting a profession/occupation of a person. Use the model to explain what these people do.

Model: to manage to control a business. A manager is a person who controls a business.

To produce to create goods and services.

To provide to give or supply what is needed or useful.

To consume to use up (food, energy, materials, etc).

To distribute to give or send out (goods or services).

Grammar point: The plural of nouns(p.118). Possessive Case (p.119)

Classes of pronouns (p. 120-126)

Degrees of comparison of adjectives (p. 127)

Exercise 11. Supply the corresponding plural form and group the words according to the pronunciation of the ending: [s], [z] or [iz]. Mind special cases!

Ability, business, businessman, businesswoman, choice, individual, good, income, economy, demand, input, supply, price, fact, resource, analysis, family, index, foot, datum.

Exercise 12. Paraphrase the following using the PossessiveCase where possible.

Activity of man, production of goods, factor of economy, needs of people, supply of services, ability of producers, demand of consumers, choice of individuals.

Exercise 13.Use the adjective in brackets in the proper degree of comparison to complete the sentence.

1. This is the (good) choice you can make. 2. The (high) the income of a family, the (much) it spends on various goods. 3. To be economical we must use inputs in a (rational) way than before. 4. It is not always true that a (high) price means a (good) product or service. 5. Economic growth, inflation and unemployment are (important) indicators of the state of economy. 6. Energy resources become (expensive) with every year.

 

Exercise 14. Use the proper form of a pronoun in brackets.

1. (He/him) is our manager. 2. (We/us) always ask (he/him) questions and (he/him) tries to answer (they/them). 3. (I/me) dont remember (she/her). 4. Where is (your/yours) notebook? 5. Make (your / yours) choice and then Ill make (my/mine). 6. (This/these) book is more interesting than (that/those) one. 7. All students are here. (You/your) can see (they/them) in the hall. 8. (This/these) are (our/ours) suppliers. 9. (They/them) provide good services to satisfy (their/theirs) customers. 10. There is a great demand for (our/ours) goods in (this/these) regions. 11. Please, show (we/us) the way to the nearest supermarket.

Exercise 15.Insert the proper pronoun.

a) some, any, no, every:

1. business firm wants to be successful. 2. As there is sugar in the house we must buy 3. Do you have ideas how to deal with this situation?

b) somebody, anybody, nobody, everybody:

1. At elections must make a choice. 2. is waiting for you at the office. 3. This question is very difficult. can answer it. 4. Can we find to supply these goods?

c) something, anything, nothing, everything:

1. I want to be an expert in economics. That is why I need to know concerning this subject. 2. Here is your money. You can buy you want. 3. I am very hungry. Do we have to eat? 4. There is for you on your desk. 5. He is so demanding that can satisfy him.

d) somewhere, anywhere, nowhere, everywhere:

1. Their products are so popular that you can buy them 2. I think this firm is situated here. 3. He cannot find his notebook 4. I feel so tired that I want to go.

Exercise 16.Fill in the proper self-form.

1. She knows the language so well that she translates everything 2. I can answer this question 3. It is such a difficult problem that one cannot solve it 4. The project is very prospective. 5. Always make your choice

Discussion of the text.

1. Speak about economics and the problems it deals with.

2. Speak about economics and its subdivisions.

 

Discussion of the text.

Speak about the main factors of production and their components.

UNIT 3 ECONOMIC SYSTEMS

Exercise 1. Read and learn the following words and word combinations:

to distinguish (between) ();

planned /command economy / ;

market economy ;

mixed economy ;

ownership ; private ownership ;

to involve , ;

central planning and direction

;

means of production ;

to vary , ;

enterprise ;

to manage ; management ;

to accept the risk ( ) ;

to succeed ; success ;

to fail ; failure ;

to make losses ;

innovation , ;

engine ;

long-term growth ;

to compete ; competitor ; competition

; competitive ;

to interact ;

taxation ;

to intervene ;

wide range of goods and services

.

Exercise 2. Read and translate the following text

Economic systems

An economic system is the way in which a society uses its available scarce resources (natural resources, labour resources and capital resources) to satisfy the demands of its citizens for goods and services. The more goods and services are produced from the countrys limited resources the higher the standard of living of its citizens. Economists distinguish between three main economic systems: planned, market and mixed.

Planned economy is sometimes called command economy because the state (government) commands the use of resources that go into the production of goods and services as it owns factories, land and natural resources. Planned economy involves central planning and direction, when the government takes all decisions concerning production and consumption. There is no state which is completely a command economy; the actual system variesfrom state to state.

Market economy is the system based on private enterprise with private ownership of the means of production and private supplies of capital. The government plays no role in the management of the economy. There exist no examples of pure market economy as it necessarily contains some businesses owned and run by the state. In a market economy it is the consumers who decide what is to be produced. A cornerstone of the market economy is quick response to changing demands. Private entrepreneurs accept the risks of introducing new products and new production processes. If they succeed, they hope to earn large profits, if they fail, they expect to make losses. Thus innovationis the engine of long-term growth of living standards. Since all businesses are privately owned they try to be highly competitive and make largest profits.

In practice most countries have what is called a mixed economic system a combination of free markets plus government allocation of resources. Mixed economy contains elements of both market and planned economies. In a mixed economy the government and the private sector interact in solving economic problems. The state controls the output through taxation and intervenes to supply essential goods and services such as health, education and defense, while private businesses provide consumers with a wide range of different products and services.

Exercise 3.Answer the following questions:

1. What is defined as an economic system?

2. What are the three main economic systems?

3. Why is planned economy sometimes called command?

4. What is the role of the government in command economies?

5. What is market economy based on?

6. How does the government act in a market economy?

7. Who decides what is to be produced in market economy?

8. What is a cornerstone of market economy?

9. What risks are involved in the introduction of innovations?

10. Who accepts these risks?

11. What is called a mixed economy?

12. How do the government and private businesses interact in a mixed economy?

13. Are there examples of pure command/market economies in real life?

Exercise 4. Translate into English.

; , ; , ; ; ; , ; .

Exercise 5.Translate into Ukrainian.

Resources that go into the production; the actual system varies; private supplies of capital; pure market economy; it necessarily contains; it is the consumers who decide; new production processes; the long-term growth; to be highly competitive; bothand; essential goods and services.

Exercise 6. Match and learn the synonyms.

A: actual, to vary, to run smth, to contain, to control, to hope, to intervene, response, different;

B: to operate, to manage, to expect, to interfere, to differ, real, various, answer, to include.

Exercise 7. Match and learn the opposites.

A:private, quick, long-term, different, wide, response, profit, succeed;

B: similar, short-term, narrow, fail, question, slow, state, loss.

Exercise 8. Complete the sentences using the words from ex.7 (the first letter is given).

1. Mixed economy is characterized by p and s forms of ownership. 2. He gave no r to my q 3. Everybody wants to s, not to f 4. The aim of any business is to make p 5. Risky business involves the possibility of p or l 6. Manufacturers supply a w range of d goods to the market. 7. Competitors are producers who provide s products. 8. In command economies the s develops l-t plans for industries.

Exercise 9.Complete the sentences with the proper words from the list below:

in response to, through the system of taxation, innovations, planned economy, owned, varies

1. In the government usually plans five years ahead. 2. The actual system of economy from state to state. 3. In mixed economies some resources are controlled by the government while others are used by private businesses consumers demands. 4. The government controls the output 5. In real life market economies always contain businesses by the state. 6. Introduction of can lead to unemployment.

 

Grammar points:* Emphatic structures. *Comparative structures.

Numeral (p.128-130)

The Past Indefinite Tense: Active and Passive Forms (p.135)

*The structure It is/was that/whocan be used to emphasize almost any part of the sentence (except for the predicate). Compare:

He proposed an alternative plan at the meeting yesterday.

1. It was he who proposed an alternative plan at the meeting yesterday.

2. It was an alternative plan that he proposed at the meeting yesterday.

3. It was at the meeting yesterday that he proposed an alternative plan.

4. It was yesterday at the meetingthat he proposed an alternative plan.

Exercise 10. Emphasize the subject in the following sentences.

1. The government and private businesses interact in a mixed economy. 2. Producers supplied different goods to the market. 3. Consumers made their choice concerning our products.

* The structure Thethe(with two comparatives) is used to say that one thing depends on the other.

Exercise 11.Combine the following sentences into one using the model: The more you have, the more you want.

The more you practice English the better the service.

The more skilful you are the higher the quality of life.

The more goods you produce the higher you reward is.

The better resources are allocated the faster youll learn it.

The more expensive the hotel the more profit youll make.

Exercise 12. Translate into English.

1. , . 2. , . 3. , . 4. , 쒿. 5. , .

Exercise 13.Read the following.

Numbers: ½; ⅔; 1 ¼; 0.739; 2.25; 3,247,068; 20%; 6+28=34; 25∙4=100; 33:11=3; 85 29 =56; 5ⁿ; dates: 07.01.1999; 20. 12.1765; 09.05.2005; time: 7.30; 12.50; 17.15; 12.00; 23.45.

Exercise 14. Translate into English.

; ; ; ; ; ; ; ; ; ; .

Exercise 15.Read a sentence about Anns daily routine and write a corresponding sentence in the past as is shown below:

Usually Ann gets up rather early. Yesterday Ann got up later than usual.

1. Ann usually gets to her work by bus.-Yesterday

2. Ann is never late for work. Yesterday

3. Ann works from 10 to 19. Yesterday

4. Ann has a break for lunch at 14. Yesterday

5. In the evening Ann usually meets her friends and goes out with them. -

Exercise 16. Insert one of the following verbs in the past form in each sentence:

be, buy, cost, make, sell, spend, teach

1. Ann a lot of money yesterday. She a dress which $50. 2. I badly needed some money so I my car. 3. He me how to drive when I 18. 4. Last year the company a big profit.

Exercise 17.Give two passive variants of the following sentences as in the model: This company sold us some new equipment. - 1. We were sold some new equipment by this company. 2. Some new equipment was sold to us by this company.

1. He told us an interesting episode from his life. 2. She gave them the most complete information. 3. He presented our plan to the management. 4. Businesses provided consumers with a wide range of goods and services. 5. We supplied our customers with high quality products.

Exercise 18.Choose the proper form of the verb to complete the sentence.

1. His decision (based/was based) on a carefully calculated plan. 2. We (expected/were expected) a letter from our friend. 3. Our business (managed/was managed) quite successfully. 4. All risks (accepted/were accepted) by our partners. 5. They (made/were made) their products highly competitive. 6. Their products (made/were made) of high quality components. 7. The company (owned/was owned) a few factories in this part of the country. 8. The company (owned/was owned) by a successful entrepreneur. 9. She (accepted/was accepted) the changes in our plan. 10. The process (controlled/was controlled) at each step.

Exercise 19. Add question-tags to the following statements:

1.They have partners in all European countries, ? 2. You are here for the first time, ? 3. He didnt earn much for this project, ? 4. Their tools were the best in the world market, ? 5. Private ownership is a cornerstone of a market economy,? 6. They were elected to the Parliament, ? 7. These products are not imported from Europe,?

Discussion of the text.

Characterize the three main types of economic system.

Our Institute

I am a first year student of Chernivtsy Institute of Trade and Economics . It is one of the affiliations of Kyiv National University of Trade and Economics. The university is one of the leading higher educational establishments in Ukraine. A lot of highly-qualified specialists train students for the non-production sphere, that is trade, business (home and international), financial institutions and banks, state administration and authorities, public catering, hotel and tourist complexes, the Customs,etc

Chernivtsy Institute has three faculties (schools): the Economics and Management faculty, the Accounting and Finance faculty, the Entrepreneurship faculty. There is also the faculty of Postgraduate Studies where one can receive a second higher education. Students can study either at the day department as full-time students or at the correspondence department which provides classes for part-time students. The term of studies lasts from 4 to 5 years depending on the subject you major in.

To become a student you must pass entrance examinations or preliminary interview. The tuition at our institute is generally free of charge, but those who study on a contract basis pay for their tuition.

Our institute grants Bachelor, Specialist or Master degree in such fields as international economics, economic cybernetics, marketing, economy of enterprise, accounting and auditing, finance and credit, hotel and tourism management, management of organizations.

Our institute occupies three buildings in the centre of the city. Students have all necessary facilities to study: modern classrooms, laboratories equipped with personal computers. The institute library is well-stocked with text-books, reference literature and periodicals. There is also a reading hall where students can read for their classes. Those who go in for sports can do so in our gymnasium under the guidance of professional coaches. Our students have all opportunities to master foreign languages, carry out research projects and take part in different conferences held at the institute each year. Students that come to our institute from other places have at their disposal a cozy dormitory, where accommodation facilities are provided at reasonable prices.

The teaching staff of the institute do their best to give the students a sound economic education and prepare highly-qualified specialists for the national economy of our country.

Assignment 6.Make a written translation of paragraphs 2, 3 and 4.

Assignment 7. Answer the following questions in written form:

1. What sphere are the students of Chernivtsy Institute of Trade and Economics trained for?

2. How one can become a student of the institute?

3. Do all the students pay for their tuition?

4. What facilities does the institute provide the students with?

Assignment 8. Translate into English.

1. - .

2. .

3. , .

4. .

5. ϳ .

 

Assignment 9. Get ready to speak about Chernivtsy Institute of Trade and Economics.

MODULE 2

UNIT 4. WHAT IS BUSINESS?

Exercise 1. Read and learn the following words and phrases.

exchange ;

related (to) ; , ;

to change smth into smth ;

tangible , ; opp. intangible;

insurance ;

health protection ;

distribution , ; channels of distribution

; ;

directly , ; opp. indirectly ;

aid ;

intermediary ;

sale ;

revenues ;

expenses ;

surplus ;

goal ;

responsibility ; to bear responsibility

;

profit-seeking activity ,

;

means ;

to improve ,

Exercise 2. Read and translate the following text.

What is business?

Business is a word that is commonly used in many different languages. But exactly what does it mean? Traditionally business simply meant exchange or trade for things people wanted or needed. Today this broad term can be applied to different kinds of human activity and many kinds of enterprise.

All activities traditionally related to business can be grouped under three headings: production, distribution and sales. The first group of activities, production, concerns the changing of materials into products or the creation of services. Some businesses produce what is called tangible goods, such as cars, clothes, foodstuffs. Others produce intangible goodsorservices, which are activities that people perform for other people. Such activities as insurance, banking operations or health protection are referred to as services.

The second group of activities is known as distribution.Distributionis the process of getting goods from the producer to the consumer in the quickest and most efficient way. Distribution is performed through distribution channels that link the producer and the consumer directly or indirectlywith the aid of intermediaries.

Third is the saleof goods and services. Sale is the exchange of a good or service for money. Money that a company receives from the sale of its products is called revenues. If the company is a success its revenues not only cover its expenses, that are the money spent on the production of the output, but also contain some surplus. This surplus is commonly defined as profit or the difference between the companys revenues and expenses. Thus, creating an economic surplus or profit is the primary goalof any business activity.

Just as important as profits are social and ethicalresponsibilities that companies bear in their dealing with employees, consumers, suppliers, competitors, government and the society. Business, then, can be broadly defined as all profit-seeking activities and enterprises that provide the means through which the societys standard of living improves.

Exercise 3. Answer the following questions.

1. What was the traditional meaning of the word business?

2. What activities are traditionally related to business?

3. What goods are called tangible/intangible? Give some examples.

4. How is distribution performed?

5. What do we call revenues?

6. Are revenues the same as profit? What distinguishes them?

7. What responsibilities do businesses bear dealing with the society?

8. What is the role of business in the society?

Exercise 4. Translate into English.

; ; ; , ; ; ; ; ; .

Exercise 5. Translate into Ukrainian.

Broad term; tangible/intangible goods; the process of getting goods or services from the producer to the consumer; through distribution channels; with the aid of intermediaries; the exchange of smth for smth; to cover the expenses; primary goal; to bear responsibility; to provide the means.

Exercise 6. Match and learn the synonyms.

A: aid, intermediary, revenue, responsibility, expense, surplus, goal;

B:income, profit, expenditure, aim, help, middleman, duty.

Exercise 7. Match and learn the opposites.

A:direct, tangible, producer, profit, output, revenues, employer;

B: input, loss, consumer, employee, intangible, expenses, indirect.

Exercise 8. Complete the sentences with proper words from ex.7.

1. If a business is successful it earns p 2. Trade unions responsibility is to settle the disputes arising between the e and the e 3. Profit is the difference between r and e 4. T goods are products that we can see, touch or taste. 5. We improved the technological process to increase the o 6. Usually p and c are linked by i distribution channels that include intermediaries.

Exercise 9.Add question-tags to the following statements.

1. Last year the company earned good profits, ? 2. Many firms provide after-sale services, ? 3. You are here for the first time, ? 4. He didnt earn much for this project, ? 5. They have partners in nearly all European countries, ? 6. He will perform this task himself,? 8. Their tools were the best in the world,?

Exercise 10.On the basis of the text define the following notions:

Business, distribution, expenses, production, profit, sale, services, revenues.

Grammar point:

The Future Indefinite Tense: Active and Passive forms (p.136)

The use of tenses in Subordinate Clauses of Time and Condition

Exercise 11.Make the following sentences interrogative and negative.

1. A network of supermarkets will be established in this region. 2. He will give his answer tomorrow. 3. These products will be sold everywhere. 4. We shall accomplish our plan in two years. 5. Services will be provided to all customers in this district.

Exercise 12. Use the verb in brackets in the correct form of the Future Indefinite tense.

1. They (to go) on business trip to Kyiv in 2 days. 2. The contract (to be signed) tomorrow. 3. The students (to take part) in the conference next month. 4. The conference (to be held) in February. 5. When he (to return) from Lviv? 6. A new equipment (to be installed) next quarter. 7. They (to improve) the distribution process by employing a new agent. 8. We hope the company (to be) profitable. 9. They (to bear) all responsibility for this project. 10. His new job (to be related) to health protection.

Exercise 13. Make the following sentences passive omitting the doer of the action.

1. They will distribute our products through their service stations. 2. We shall provide our partners with some assistance (2 variants). 3. The firm will deliver office furniture in two weeks. 4. He will serve this customer immediately. 5. They will sell this programme to millions of consumers. 6. We shall buy new computers for our head office. 7. He will calculate his revenues and expenses at the end of the year.

Exercise 14. Make up all possible sentences using the table below.

 

Principle clause Conjunction // Subordinate clause of time or condition
Ill ring you up if // I learn something new
Hell tell you everything provided / / you keep it secret
Shell make her decision as soon as / / the situation clears up
Hell help us unless/ / he is busy
The customer will wait till/until /, / the manager comes
The director will see us after / , / she finishes her interview
Well call the taxi when // everything is ready
Theyll finish their work before / , / she returns from her business trip

Exercise 15. Rewrite the following sentences according to the model. Remember, that after unlessthe verb is used in the affirmative form.

Model: He will not call if he does not need your help.-

He will not call unless he needs your help.

1. You wont speak English well if you dont practice it every day. 2. They wont earn any profit if they dont modernize their factory. 3.We shant order these goods if they dont make the price more attractive. 4. This product wont be introduced if the customers dont need it. 5. His project wont be discussed if he doesnt assume all responsibility for it.

Exercise 16. Use the verb in brackets in the proper tense form. Remember, that objective clauses answer the question what? while adverbial clauses of time and condition answer the questions when? on what condition?All actions refer to the future.

1. Hell call you back when he (to return). 2. Tell me when she (to come) to visit you. 3. I want to know if she (to agree) to our plan. 4. Theyll deliver the goods if we (to sign) the contract. 5. I wonder if they (to deliver) goods themselves? 6. Does anybody know when the manager (to be) back? 7. They wont provide the equipment if we (not to pay) them in advance. 8. They dont know if they (to supply) their products next year.

Exercise 17. Use the verb in brackets in the correct tense form (all actions refer to the future).

1. If they (to order) these goods we (to deliver) them in time. 2. They (to accept) our proposal if we (to make) the price less expensive. 3. He (to visit) our firm if he (to have) enough time. 4. I (to perform) this calculation if she (to help) me. 5. You (to make) less mistakes provided you (to be) more attentive. 6. He (to wait) until the meeting (to be finished). 7. They (to give) their final answer as soon as they (to receive) our letter.

Exercise 18. Translate into English.

1. , . 2. . 3. , . 4. , . 5. , .

Discussion of the text.

1. Speak about business and its main goal.

2. Dwell on the activities related to business.

 

 

Discussion of the text.

1. Speak about the main forms of business organization.

2. Characterize each form, its essence, its advantages and disadvantages.

Discussion of the text.

1. Speak about the essence, advantages and disadvantages of a line organization structure.

2. Speak about the role of different types of personnel in a line-and-staff organization structure.

3. Speak about the advantages of a matrix organization structure.

National Economy of Ukraine

Since the proclamation of independence in 1991 the national economy of Ukraine has passed a long road from planned to a market-based one. In the course of transition our economy faced some problems the main of which were high inflation, unemployment, recession, low living standards of the population. Due to the numerous economic reforms the state income was balanced against expenses, many inefficient plants were closed down and capital was directed into new advanced industries. The programme of privatization stimulated the revival of many strategic enterprises. In 2006 Ukraine received the status of a market economy.

Ukraine possesses considerable potential in such sectors of economy as heavy industries, especially metallurgy, machine engineering, aerospace technologies, telecommunications. Converted military industrial complexes started to produce consumer goods, particularly those involving high technologies. Among the products of machine building we must mention food-processing machinery, medical equipment, transportation vehicles, construction materials and equipment, small farming machines and home appliances.

Our country is famous for its unique black soil. We expect some progress in agricultural production as the agricultural sector is being reoriented towards the market economy. Nowadays agriculture satisfies the needs of the population in the main food products.

Natural and human resources of Ukraine are sufficient for creating a developed home market and becoming a friendly and equal partner in the world market. Ukraines enterprises conduct business transactions with partners all over the world. Among our leading partners are Russia, Germany, the USA, China, Turkey, the Czech Republic, Belarus. Ukraine exports metal, coal, electricity, fertilizers, sugar, vegetable oil. The major import items are oil, gas, timber, cars, knitted wear and clothes, top quality foodstuffs.

Due to her size and favourable geographical position, economic potential and qualified workforce Ukraine plays a significant role in the world economic system.

Assignment 7. Make a written translation of paragraph 1.

Assignment 8. Answer the following questions in written form.

1. What kind of economy is Ukraine considered to be: planned, transitional or market-based?

2. What are the results of the numerous economic reforms?

3. What was the result of the military complexes conversion?

4. What factors make Ukraines economy prospective?

Assignment 9. Get ready to speak

1) about the national economy of Ukraine, its past and present-day status;

2) about Ukraines industrial, agricultural and trade potential.

 

MODULE 3

UNIT 7 BUSINESS FINANCING.

Exercise 1. Read and learn the following words and word combinations.

finance-, ; , ;

financial statement - ; financing - ;

funds- , , ;

internal funds- ; external funds- ;

to raise funds- ; syn. to obtain funds;

to monitor funds ;

to meet ones expenses () ;

depreciation- ; ;

assets- , , , , , ;

to wear out , ;

to cover the cost / ( );

equity funding-

;

bond- ; ; syn. note;

debt- ; debt funding-

/;

negotiable- ; , ;

securities ;

security exchange , ;

syn. Stock Exchange;

loan , ;

short-term/long-term loan- / ;

to make a loan- ;

to be eligible for a loan ;

interest- ; ; ;

to charge interest- ;

line of credit- ;

principal- ;

to mature- /; (

); syn. to come due;

balance sheet- ;

income statement- ; syn. profit and loss statement, costs and revenues statement;

liabilities- (); , ;

net worth- ;

Exercise 2. Read and translate the following text.

Business financing

An important function of business is financing, that is the way business raises and monitors funds. Most organizations have finance departments or a manager in charge of financial operations.

Most of the money used by business comes from the sale of its products and services. As these funds come from within the firm they are described as internal funds. The rest must come from outside and is described as external funds.

As a firm sells its products or services it receives money, which it uses to meet its expenses. One of these expenses is depreciation, which represents the cost of replacing assets (like tools, machinery, and buildings) that wear out. Typically business uses internal funds to cover the costof depreciation.

Business can raise external funds in two ways: it can issue shares (stock) in exchange for money or property (equity funding), or by borrowing in exchange for bonds (notes), that is debt funding. Both stocks and bonds are negotiable, that is one can buy and sell them at the security exchange (Stock Exchange).

Banks make loans to corporations, organizations, to small companies and individuals. For this service banks always charge interest. To decide whether a business should receive a loan the bank examines its financial statement. If the company is eligible for a loan, it may choose a long-term loan or a short-term loan.

For short-term loans the principal (the amount borrowed) must be repaid within a year. Long-term loans mature (come due) in more than a year. Short-term loans are used to finance the everyday costs of doing business such as wages and salaries, raw materials, etc. Long-term loans are used to buy equipment, buildings and other expensive items.

The amount of money that company can borrow from a bank is a line of credit. This top amount of customers credit is based on the profits and earnings of a business.

Two of the most important pieces of financial information on business are the balance sheet and the income statement. The balance sheet summarizes the firms assets (what it owns), the firms liabilities(what it owes) and its net worth (the difference between the two sums) at a given time. The income statement summarizes the firms revenues, costs and the difference between the two (the profit or loss) over a period of time.

 

Exercise 3. Answer the following questions:

1. What is financing?

2. What personnel are in charge of financial operations?

3. What are internal funds and how are they used?

4. What does depreciation represent?

5. How do businesses raise external funds?

6. How do short-term and long-term loans differ?

7. What documents reflect financial information on business?

8. How do banks take part in business?

9. What do we call credit line?

10. What information is given in the balance sheet?

11. What can we learn from the income statement?

Exercise 4. Translate into English.

, ; /; ; ; ; ; ; ; ; ; ; .

Exercise 5. Translate into Ukrainian.

money comes from the sale; within/outside the firm; typically; to raise external funds; securities; negotiable; must be repaid; everyday costs of doing business; expensive items; firms assets; firms revenues; over a period of time.

 

Exercise 6. Match and learn the synonyms.

A: shares, bond, loan, revenues, expenses, funds;

B: credit, profit, stocks, capital, note, costs.

 

Exercise 7.Match and learn the opposites.

A: costs, cheap, liabilities, outside, internal, loss;

B: external, within, expensive, assets, profit, revenues.

Exercise 8. Complete the sentences with the proper words from the list below:

the cost of depreciation, to raise funds, net worth, to meet, raising and monitoring, internal funds, loan

1. Our finance department is in charge of the company funds. 2. The firm has received a 5-year to buy new machinery. 3. We have started a new project so we have to work hard our expenses. 4. Dont forget to include into income statement. 5. The balance sheet shows the firms at a given time. 6. The management of the firm decided by borrowing. 7. As the company started a new line of products their have increased.

 

Exercise 9. Translate into English.

1. Գ .

2. , .

3. .

4. ?

5. .

6. Գ .

7. : , .

8. .

9. ?

10. .

 

Exercise 10. Make a list of the key terms on the topic. Get ready to define the terms on your list using the information from the text.

 

 

Grammar point:

The Present Perfect tense: Active and Passive forms (p.141)

The Present Perfect Continuous tense (p.142)

*The Present Perfect: simple vs. continuous forms (p.142)

Present Perfect vs. Past Indefinite (p.143)

*The use of sinceand forwith Present Perfect

Exercise 11. Use the verb in brackets in the Present Perfect tense to state the present result of the past action or event. Translate the sentences.

1. Our company (to issue) stocks. Now they are on sale at Stock Exchange. 2. Their funds are limited. They (to cover) the cost of depreciation with all their internal funds. 3. We are going to have bad times. Our financial manager (to state) the negative balance. 4. Why is there no money on our bank account? - We (to use) it to cover our expenses. 5. Lets go shopping. I (to receive) my salary. 6. They (to get) a long-term loan and plan to replace the equipment.

Exercise 12. Use the Present Perfect tense instead of the negative form of the Present Continuous tense as in the model:

I am not reading the book. - I have just read the book.

1. He is not calculating his profits. 2. They are not financing this project. 3. We are not exchanging our money. 4. She is not selling her shares. 5. I am not buying these bonds. 6. He is not receiving a loan. 7. They are not making a balance sheet. 8. We are not repaying the principal. 9. They are not using equity funding to raise funds. 10. She is not performing this transaction

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