Exercise 12. Match types of stocks with advantages and disadvantages of investing in them

Advantages	Types of stocks	Disadvantages
a). The price of stocks can quickly rise at a very high rate;		j).The price of stock is usually very high.
b) your profit is always stable;		k). the high level of risk; stocks can loose their value
c). your investment risk is minimized;	Income stocks	l).it is impossible to sell your stock for much more money. The price is normally stable.
d). you can sell your shares for much more money than you bought them		m). you receive no periodic payments
e). owning such stocks is very prestigious;		n) you can loose all your money in the case of a company`s bancruptcy.
f). the initial price of stock is fairly low	Growth stocks	o). you can`t participate directly in the management of a company
g). such investing gives you good analytic experience.
h). you have limited liability
i). such investing is a long-term commitment of capital.

Exercise 12. Read the text. Explain the essence of FDI and name advantages it can give to a country using USA as an example. Think about spheres of Ukrainian economy that are the most perspective for investing either domestic or foreign. Give your reasons and ideas.

Use phrases:in my opinion, to my mind, I`d rather say that, in fact, there`s no doubt that, furthermore, frankly speaking, according to.

FDI or Foreign Direct Investment is any form of investment that earns interest in enterprises which function outside of the domestic territory of the investor.

FDIs require a business relationship between a parent company and its foreign subsidiary. Foreign direct business relationships give rise to multinational corporations. For an investment to be regarded as an FDI, the parent firm needs to have at least 10% of the ordinary shares of its foreign affiliates. The investing firm may also qualify for an FDI if it owns voting power in a business enterprise operating in a foreign country.

Benefits of FDI

The United States is the world’s largest recipient of foreign direct investment. In 2007 alone, the United States received $237 billion in FDI. Foreign direct investment impacts the U.S. economy in many positive ways. For example, FDI:

Creates New Jobs: U.S. affiliates of foreign companies (majority-owned) employ approximately 5.3 million U.S. workers, or 4.6% of private industry employment. Between 2003 and 2009, over 4,500 new projects were announced or opened by foreign companies, yielding over $314 billion in investment and about 632,500 new jobs.

Boosts Wages: U.S. affiliates of foreign companies tend to pay higher wages than other U.S. companies. Internationally owned companies support an annual U.S. payroll of $364 billion, with average annual compensation per employee of over $68,000. On average, U.S. subsidiaries of foreign firms pay 25 percent higher wages and salaries than that of all U.S. establishments.

Increases U.S. Exports: U.S. companies use multinationals’ distribution networks and knowledge about foreign tastes to export into new markets. Approximately 19 percent of all U.S. exports ($195 billion) come from U.S. subsidiaries of foreign companies.

Strengthens U.S. Manufacturing and Services: Thirty percent of the jobs supported by U.S. affiliates of foreign companies are in the manufacturing sector, accounting for 12 percent of all manufacturing jobs in the United States. Approximately 60 percent of all foreign investment in the United States is in the service sector, improving the global competitiveness of this critical segment of the U.S. economy.

Brings in New Research, Technology, and Skills: Affiliates of foreign companies (majority-owned) spent over $34 billion on research and development in 2006 and $160 billion on plants and equipment.

Contributes to Rising U.S. Productivity: Inward investment leads to higher productivity growth through an increased availability of capital and resulting competition. Productivity is a key factor that increases U.S. competitiveness abroad and raises living standards at home.

Exercise 13. Tell about investing using the plan:

1. The definition of investing.
2. The areas of economy investing is involved in.
3. Destinations for invested money and the main factor in investing activities.
4. The concept of “time value of money”
5. Inflation and investing.
6. Compounding.
7. Investing in corporate stocks.
8. Dividends.
9. FDI in global economy.

Unit 3

My future speciality

Vocabulary

Exercise 1. Study the vocabulary:

require – вимагати

essential – головний, основний, глобальний

ESTC - Європейська система переводу й накопичення кредитів

modular – кредитно-модульний

participation –участь

custom service – митна служба

enterprise - підприємство

subdivisions – підрозділи

to assess - оцінювати

official – чиновник, службовець

personnel - кадри

to be payable –бути виплаченим

ensure – впевнитися, забезпечити

transition – перехід до ринкової еконоіки

improvement – поліпшення

tax advisor - податковий консультант

balance sheets – баланс (фінансовий документ)

tax law – податкове законодавство

overwhelming – величезний, надзвичайний

conscious - свідомий

II Reading

Exercise2. Read and translate:

Text A

My future speciality

My future speciality is taxation. I study at the Economic Department of Kherson National Technical University. Worldwide globalization of education and integration of Ukraine with the world community requires that the educational system should be adapted to new social and economic conditions. At the beginning of this century Ukraine accepted Bologna model of education. Adoption of this model has demanded essential reorganization of Ukraine’s system of education and science. By now ESTC has been put into practice at Ukrainian universities and teaching is carried out in agreed modular units. Our department pays great attention to our participation in regional, all-Ukrainian and international conferences, so we can realize ourselves in scientific, research and social work.

The course of study lasts five years. The students study such general subjects as: as high mathematics, English, sociology, philosophy, statistics. Among special subjects there are: Insurance services, Budget system, Money and credit, Marketing, Finance, Custom Service Operation, Economy of Enterprises, Basics of Taxation.

Our Department carries out preparation of specialists for the financial and budget system and financial subdivisions of enterprises. The majority of graduates from this department work in the State Taxation Inspection of Ukraine. They can begin working as tax inspectors: officials whose job is to assess the amount of tax that is payable by a person or organization and ensure the tax is paid. Transition to the market economy requires not only preparation of personnel with new knowledge but also improvement of professional skill of employed economists' from different branches of national economy for economic oriented specialties which are in demand on labour market. That`s why it is carefully provided at the our University.

Me and other graduates can also work at the insurance companies, State custom service, financial and accounting departments of different enterprises. Our future career can develop in research and educational institutions, monitoring centres and laboratories of economic problems analysis. In accordance with modern economic conditions new professions connected with taxation came out on the economic stage. Tax advisor is one of them. A tax advisor is a financial expert especially trained in tax law. Some countries require tax advisors to verify the balance sheets of companies above a certain size. Individuals usually require tax advisors to minimize taxation, to avoid learning the details of tax law in complicated financial situations themselves or to learn the details of tax law from a professional advisor.

My dream is to see my country prosperous. Ukraine has such overwhelming opportunities for its growth that it is impossible to be pessimistic about its economic development. Our country occupies one of the leading places by the part of taxes in GDP. That means that sound taxation combined with grounded reformation of all sectors of our industry and economy will contribute to the formation of new Ukraine – self-dependent, conscious, wealthy, beautiful.

III. Language

Exercise 3. Find in the text and put down English equivalents to the following word combinations:

Глобалізація загальносвітового масштабу; світова спільнота; істотна реорганізація; економіка підприємств;проводить підготовку; фінансові відділи підприємств; більшість випускників; перехід до ринкової економіки; підготовка кадрів; користуються попитом; Державна митна служба; перевіряти (аналізувати) баланс; мінімізувати оподаткування; валовий внутрішній продукт.

Exercise 4. Make up the possible word combinations out of the following and translate them:

tax market balance economic budget labour

law market sheet inspector advisor conditions

Exercise 5. Match the definitions to the economic terms in the left column:

tax inspector ESTC tax advisor

a). європейська система переводу й накопичення кредитів; b). an official whose job is to assess the amount of tax that is payable by a person or organization and ensure the tax is paid; c). a financial expert especially trained in tax law;

IV. Text understanding

Exercise 6. Find in the text and translate a passage describing:

1. general and special subjects
2. tax advisor
3. tax inspector

Exercise 7. Agree or disagree with the statements:

1. Worldwide globalization of education and integration of Ukraine with the world community requires that the educational system should be adapted to new social and economic conditions.
2. At the beginning of the last century Ukraine accepted Bologna model of education.
3. The students study such general subjects as Budget system.
4. Tax inspectors are officials whose job is to verify balance sheets.
5. Transition to the market economy requires improvement of professional skill of employed economists.
6. A tax advisor is a financial expert especially trained in financial management.
7. Individuals usually require tax advisors to minimize taxation.

Exercise 8. Answer the questions:

1. What is your future profession?
2. What does worldwide globalization of education require?
3. What special and general subjects do you have? What is your favourite?
4. What does transition to the market economy demand?
5. What are your possible places of work in future?
6. Why do you wish to become a specialist in the sphere of taxes?

Exercise 9. Read the text:

Text В

Formation and development of the tax system in independent Ukraine.

On August 22, 1996, the President of Ukraine, L. Kuchma, issued the Decree “On the creation of the State Tax Administration of Ukraine and local state administrations.” On October 30, 1996, the President of Ukraine signed the Decree “The state tax administrations issues.” With the Decree signing tax service actually gained its organizational and structural definition.

On February 5, 1998, the Law “On introducing changes and additions” to the Law of Ukraine “On State Tax Service in Ukraine” was adopted.

During these years tax service structure was changed, the additional finance sources for the creation and development of the material and technical base, were allocated.

In order to increase the effectiveness of work in tax bodies, to ensure more rational use of the STA’s labour and finance resources, the Program of tax service modernization was developed, and the Department on the state tax service development and modernization was established. During these years the system of staff training and retraining was established. The proud of tax service is its educational establishment—The Academy of the State tax service of Ukraine, where the future tax specialists study.

For time being the state tax bodies provide receipts of about 80% of all state and local budget profits. Furthermore, they control and administer almost 100 kinds of taxes, duties and obligatory payments to the budgets at all levels and to the specialized funds. The most weighted source of incomes is enterprise profit tax; value added tax, individual profit tax, excise duties and fees for use of natural resources, land fee.

The STA of Ukraine initiated the Tax Code of Ukraine preparation.

On July 13, 2000 the President of Ukraine signed the Decree “On the State tax administration of Ukraine Provision ”, that points the STA of Ukraine supports the single state tax policy realization.

Exercise 10. Find in the text and put down English equivalents to the following word combinations:

Введення змін та доповнень; видав указ; додаткові джерела фінансування; податкові органи; забезпечити більш раціональне використання; відділ модернізації та розвитку Державної податкової служби; підготовка кадрів; обов'язкові виплати; Податковий кодекс України; єдина державна податкова політика.

Exercise 11. Answer the questions:

1. What documents issued by L. Kuchma gave to tax service its organizational and structural definition?
2. What was made in order to increase the effectiveness of work in tax bodies?
3. How has tax service been changed