I.Study the list of topical vocabulary to avoid the difficulties in understanding the text of this unit. Consult a dictionary to pronounce the words correctly.
Sergeichik Tatiana
English
For Business Communication
Федеральное агентство по образованию
ГОУ ВПО «Кемеровский государственный университет» (КемГУ)
Кафедра иностранных языков
Т. С. Сергейчик
«Английский для делового общения»
Учебное пособие
Кемерово 2010
УДК 811.111’276.6:33(075.8)
ББК Ш 143.21я73
С 32
Печатается по решению научно-методического и редакционно-издательского советов ГОУ ВПО «Кемеровский государственный университет»
Научный редактор:
| И. П. Поварич доктор экономических наук, профессор, заведующий кафедрой менеджмента экономического факультета ГОУ ВПО «Кемеровский государственный университет» |
Рецензенты:
| Кафедра иностранных языков Российского государственного торгово-экономического университета, Кемеровский институт (филиал)/ Заведующая кафедрой кандидат филологических наук, доцент О. В. Кадникова |
| Н. В. Дерябина кандидат педагогических наук, доцент кафедры иностранных языков Кемеровского технологического института пищевой промышленности |
Сергейчик Т. С.
Английский язык в сфере делового общения: Учебное пособие / Т. С. Сергейчик; ГОУ ВПО «Кемеровский государственный университет». – Кемерово, 2010. – 132 с.
ISBN
Учебное пособие адресовано студентам всех специальностей неязыковых факультетов университета для изучения курсов «Иностранный язык» и «Деловой иностранный язык». Целью пособия является формирование у студентов языковой компетенции в рамках делового общения и деятельности в профессиональной сфере.
Пособие состоит из десяти разделов и пяти приложений, объединенных по тематическому принципу. Тематика пособия имеет профессионально-деловую направленность и охватывает такие устные разговорные темы, как «Переговоры по телефону», «Устройство на работу», «Маркетинг» и др. В пособии представлены материалы для тренировки навыков деловой переписки, презентации компании.
Пособие содержит необходимый лексический минимум по каждой теме, тексты для перевода, упражнения и диалоги для работы над темой, образцы деловых писем.
| © ГОУ ВПО «КемГУ», 2010 © Сергейчик Т. С., 2010 © Изд-во «Кузбассвузиздат» |
Предисловие
Настоящее учебное пособие предназначено для студентов всех специальностей неязыковых факультетов университета. Работа с пособием рекомендуется на протяжении всего курса обучения иностранному языку в вузе (на 1 – 3 курсах.)
Пособие предназначено для развития коммуникативной компетенции будущих специалистов в сфере бизнеса и профессиональной деятельности, что подразумевает умения получать, перерабатывать и передавать информацию.
Целью пособия является формирование у студентов языковой компетенции в рамках деловой письменной коммуникации, а также устных разговорных тем по профессионально-деловым вопросам. Это предполагает решение таких задач, как развитие умений и навыков письма, диалогической и монологической речи по изучаемой теме.
Необходимость решения поставленных задач предопределила структуру пособия.
Пособие состоит из десяти учебных блоков (UNITS), объединенных по тематическому принципу. Каждый блок содержит текст профессионально ориентированного содержания. Каждый текст предваряет список «активной» лексики – лексический минимум, необходимый для обсуждения темы и последующей подготовки монологического сообщения по теме учебного блока.
В пособии предлагаются упражнения для работы с интернациональными словами, чтобы помочь студентам самостоятельно провести сравнительный анализ лексики в русском и английском языках (произношение, значение, употребление и т. д.). Определенный пласт интернационализмов – научные термины, и работа с ними снимает трудности при изучении профессионально ориентированных тем на английском языке.
Закрепление «активной» лексики учебного блока осуществляется в ходе выполнения послетекстовых лексических упражнений: заданий на поиск эквивалентов словосочетаний, подбор синонимов и антонимов, работу с предлогами, изучение и трактовку терминов и др. Ряд учебных блоков в пособии также включает упражнения на письменный перевод предложений с русского языка на английский. Предлагаемые упражнения последовательно создают базу для выполнения серии более сложных упражнений, направленных на увеличение потенциального словарного запаса студента, – вопросов по теме, заданий на составление диалогов и ролевых игр, а также организацию групповой дискуссии, стимулирующей спонтанную инициативную речь студентов по заданной тематике. Лексические упражнения обеспечивают эффективную повторяемость лексических единиц в пределах тематического комплекса, а значит, способствуют их хорошему освоению.
Ряд учебных блоков содержит задания для активизации грамматического материала, сопровождающего устное сообщение по теме. Выполнение этих упражнений окажется полезным, если преподаватель использует комплексный подход в обучении. Однако грамматические задания являются факультативными, так как они не направлены на достижение основной цели учебного пособия, и преподаватель самостоятельно определяет целесообразность их использования.
Успешное освоение лексического материала обеспечивает готовность обучаемых к выделению смысловых частей текста в учебном блоке, составлению его плана, пересказу отдельных положений текста и темы в целом. Заключительный этап работы над учебным блоком связан с контролем освоения его темы: студенты должны приготовить сообщение по теме и выразить свою точку зрения о состоянии поднимаемых в блоке проблем в деловой сфере.
Таким образом, структура каждого учебного блока определяется принципом «от простого к сложному». Подбор заданий и упражнений для тренировки разных видов речевой деятельности создает базу для последовательного формирования у студентов умений и навыков письма, диалогической речи, а также устного монологического высказывания по теме.
Учебное пособие включает в себя приложение, где представлены образцы писем и упражнений для тренировки навыков перевода деловой корреспонденции. Кроме того, приложение содержит ряд диалогов по теме «Переговоры по телефону».
UNIT 1
THE LANGUAGE OF SCIENCE
UNIT 2
ECONOMICS AS A SCIENCE
IV. Look through the table presenting some information on prefixes used to give words a negative meaning or to show a lack. Do the exercise in the fourth column putting the suitable prefix to the words, translate them.
| Prefix | usage | example | exercise |
| un- | used with many different words to give negative or opposite meaning | unhappy unemployed unpack | __usual, __real __finished, __limited __dress, __learn __available |
| im- | used before some words beginning with m or p | impossible | __mobile, __perfect __personal |
| il- | used before some words beginning with l | illegal | __liberal __logical |
| ir- | only used before some words beginning with r | irresponsible | __reparable, __reversible |
| dis- | used before some nouns, adjectives and verbs to give negative or opposite meaning | discomfort dishonest disagree | __advantage ____appear __courage |
| in- | used before a limited number of words | invisible | __active, __adequate __effective, __human __sufficient |
Economics as a science
Economics is a social science studying how people apply their knowledge, skills, and efforts to the resources of nature in order to satisfy their material wants.
People’s wants are unlimited. But, at the same time, the resources available to satisfy the wants are limited in supply and insufficient. It is usual to say that such resources are scarce. Consequently, people face the problem of making choice. From the point of view of economics, the problem of choice is concerned with the problem of allocation. People are forced to decide how to allocate scarce resources to different uses and then to allocate the product of these resources – goods and services – to the individuals of society.
So, economics is connected with the study of the material aspects of life. However, the subject matter of economics is human behaviour. Economists are mostly interested in group behaviour because this is more predictable than that of an individual. Indeed, it is possible to make general descriptions of large economic groups and on their basis make assumptions and predictions.
Scientific research in economics includes studying real things in isolation from the objective reality. This is done in order to build a simplified model of a small part of the real world. Such procedure helps to study and operate the influence of different forces in the real world.
The conclusions made by economists are sometimes controversial. Rapid technical, technological, political and economic advances change the behaviour of an individual and that of different economic groups. Thus, the reliability and adequacy of certain now existing economic theories may become questionable in future.
Vocabulary notes
enterprise n – предпринимательство
equal adj – равный
hire v – арендовать
lack n of – нехватка, недостаток ч-л
own v – владеть
power n– власть (но: power station – электростанция)
pure adj – чистый (в чистом виде)
significant adj – значительный
solve v – решать
Types of economic systems
Economists study a great variety of economic systems existing in the world today because of numerous political and social structures. Economic system is a way of organizing economic activity. It is also a set of methods to solve economic problems.
It is usual to group all economic systems into three large categories. Traditionally, these basic types of economic systems are Market, Command, and Mixed economies.
Market economic system is also called free enterprise system, laissez-fair or capitalist system. Market economy is characterized by some important features such as private property, freedom of choice and enterprise, self-interest, competition, a reliance on the price system, a complete lack of government regulation.
· Private property states the right to own, control, and income from natural and man-made resources (land, buildings, machinery etc).
· Freedom of choice and enterprise means that individuals known as entrepreneurs are free to buy or hire economic resources, organize them for production of goods and services.
· Self-interest makes individuals and firms act in their own interests without any direction or regulation.
· Competition is the process in any market regulated by the law of supply and demand.
· Market prices are also determined by changes in supply and demand.
· Lack of government regulation is an important feature of capitalism. In free market economy, the government takes little or no part in economic activity.
There is no country with pure market economy because state authorities always take some economic decisions.
Command economy is also referred to as planned economy. This type of economy is connected with significant direct centralized control. State, government, committee, cooperative group or some other powerful authority owns and controls country’s resources – land, housing, factories, power stations, transport systems etc.
Central authority draws up a production plan and sets production goals concerning items, amount, terms and distribution. Planners use computer programs to determine production costs – for materials, labour, energy etc.
The main idea of central planning is to give all people equal rights and opportunities in distribution of wealth and income. But the history and economic experience of some countries show that this is impossible. So, ex-communist societies refused pure central planning.
Mixed economy is a result of the increasing government power and control in capitalist countries. Countries operating in mixed economies combine the elements of planned economy and the principles of market.
Private property is one of the most important parts in mixed economy. This gives people stimulus to work hard, save and invest money. Government in its turn regulates market forces or adapts to them.
Most countries in the modern world have mixed economies. As a rule, their main economic activities are organized in a decentralized way, but government makes principal economic decisions. For example, in the USA the government buys about 18% of the total market production, employs about 15% of all workers, redistributes income by means of taxation.
UNIT 3
WRITING BUSINESS LETTERS
UNIT 4
TELEPHONE COMMUNICATION
TELEPHONE COMMUNICATION
The telephone is a necessary means of communication in business.
When you need to telephone your colleague or partner (or call him, ring him, give him a ring), you dial his phone number which can be found in the directory. The phone will ring, and your colleague will answer it by picking up the receiver. If he is busy he may ask you to call back later. If he is already on the phone when you call him, his number is engaged (busy – A. E.) and you cannot get through. When he finishes speaking to you, he should hang up.
Many telephone numbers – mostly related to businesses or governmental offices – are prefixed by 800. These numbers provide free customer service because many companies are interested in getting new customers. In most civilized countries emergency numbers (ambulance, police, fire) are also toll-free calls. (To place an emergency telephone call in the USA, for example, you should dial 911 or 0.)
Making a telephone call is not always easy, especially if you do not know the person on the other end of the line very well. Phone messages must be accurate and complete. Taking them demands both writing and listening skills particularly when a caller is speaking quickly.
Asking callers to repeat a message can help, and there is really no need to be embarrassed about it. Even people who have spoken a language all their lives ask each other to repeat things.
| Example of the message To: Jason Bennet. 21 Oct. Message: Mr. Anthony Hole called from Ontario, Canada. Call him today before 6 p. m. or any time tomorrow at 535 42 34 about rearrangements for meeting. Message taken by: Helen Green. |
Completing telephone messages usually includes important details such as names, dates, telephone numbers. When spelling names or words over the telephone in English you need to know well the British telephone alphabet * – the list of easily distinguishable words, each representing a letter of the alphabet. When pronouncing telephone number, you should call out each figure separately: 587843 – five-eight-seven-eight-four-three. For zero you read “ou”. If a figure is used twice in a number, you use the word “double”, for example, 551273 – double five-one-two-seven –three, 8888 – double eight-double eight, 333564 – double three-three-five-six-four.
Making requests on the telephone, English speakers show politeness in several ways. Speaking with a friendly tone of voice usually does a trick. Sometimes there are even conflicts related to tone. They tend to occur more often in telephone communication than in face-to-face conversations. When using the telephone, many people do not care to monitor their tone and often express irritation in their voice that they would normally try to avoid when speaking face-to-face. There may be several reasons for this. Telephone conversation is less personal than face-to-face one. Since we cannot get nonverbal feedback from the person we are talking to, we may tend to express our displeasure more openly on the phone. This shows how important controlling tone and emotions are in minimizing conflicts with colleagues, potential customers, or people in other organization.
* British telephone alphabet
| A – for Andrew B – for Benjamin C – for Charlie D – for David E – for Edward F – for Frederick G – for George H – for Harry I – for Isaac | J – for Jack K – for King L – for Lucy M – for Mary N – for Nelly O – for Oliver P – for Peter Q – for Queen R – for Robert | S – for Sugar T – for Tommy U – for Unde V – for Victory W – for William X – for Xmas Y – for Yellow Z – for Zebra |
UNIT 5
APPLYING FOR A JOB
Applying for a job
The happiness of any person largely depends on having suitable job. One may learn about a job vacancy in a newspaper, from a friend, from the employment agency or TV advertisement.
To apply for a job you are interested in, it is necessary to convince the prospective employer of your ability to do this job well. The first thing you should do is to prepare a resume (curriculum vitae – BrE). A resume should contain a summary of essential facts from your background: personal data, career objective, work experience, education, and references. You should emphasize your strong points in your resume. For example, if you have no job experience, stress your personal qualities (sociability, honesty, reliability, efficiency etc.) or educational background. A well-composed resume will make the prospective employer understand what abilities make you a suitable person for a particular job.
If you interest the employer he will invite you for an interview. Interviews are conducted on the various patterns: there are traditional one-to-one and group interviews, board or panel interviews (where an applicant is interviewed by a panel of interviewers), «deep-end» interviews which give a candidate the opportunity to demonstrate his skills and apply his knowledge.
To make a good impression on the interviewer it is important to find some information about the company you are going to work in. Besides, there are some rules of behaviour in an interview. For instance, when greeting the interviewer you should wait until he shakes your hand. Also, you shouldn’t sit down until he offers you to do that. In the interview it is common to avoid discussing personal, domestic or financial problems if you are not asked about.
Interviewers can’t check applicant’s professional skills immediately, so, the first thing they are attracted to is the agreeable personality and friendly attitude of the interviewee. You shouldn’t criticize your former colleagues or employer: criticism helps to reveal your own negative qualities.
Interviewers are usually interested in qualifications of the candidate, his/her previous job experience, motivation and the reasons of applying for that job. In the interview you may ask questions too – about salary, probationary period, social guarantees, transport facilities to or from job, chances of promotion. But you should discuss the subject you are interested in after the interviewer introduced it.
It is clear that a job interview is a stress situation for any applicant. The majority of interviewees feel nervous, and not everyone is able to show his worth in the interview. But it is necessary to concentrate oneself for some time because the conclusion about the candidate is made within the first ten minutes of the interview.
Job satisfaction
Job satisfaction is important in life of a modern man. Almost every adult person spends a lot of time at his work place. So, it is very important to be content with one’s position.
There are some factors which influence job satisfaction. If a company gives an opportunity of professional growth, an employee may take some interesting training programs or courses, have job-related travels. Having brainy boss and agreeable colleagues is also a great luck. Earning plenty of money makes a person socially independent (on parents, other people’s help, circumstances etc.)
The status of the company also plays significant role. Many young specialists would like to work in a large prestigious company because there are more chances to be promoted.
Of course, different people prefer different jobs: some like to work on a computer, others want to be a part of a team or, alternatively, to be independent in their professional life. But in any case an employee needs to be praised for the good job by his superiors.
Job dissatisfaction makes any person extremely unhappy. For example, low wage makes him socially unprotected. Hostile working environment causes job inefficiency and, on the other hand, stress situations that harm health. In this case, even a highly qualified specialist may become a bad employee.
After graduation from the University everybody wants to find satisfactory position in an organization with a good status. One of the most significant things for everyone is to have financial independence because University education gives opportunity to earn much. It matters if the job is interesting or not because many people hate boring and monotonous work. Some people enjoy making decisions on their own. Everyone needs knowledge to be useful for the benefit of business. Besides, it is important to be part of a team and, at the same time, to have real chances of promotion in a company.
A manager or director should take serious care of the main aspects of job satisfaction and dissatisfaction in the company.
FILLING A VACANCY
| references | candidate | position | interview | resume | ||
| job vacancies | application | short-listed | ||||
| application form | employment agencies | apply | applicant | |||
Many people looking for a job read about the (1) ___ advertised in newspapers by companies and (2) ___. To reply to an advertisement is to (3) ___ for a job. You become a (4) ___ or an (5) ___. You write an (6) ___, or fill in the company’s (7) ___, and send it, along with your (8) ___ and a covering letter. You often have to give the names of two people who are prepared to write (9) ___ for you. If your qualifications and abilities match the (10) ___ you might be (11) ___, i. e. selected to attend an (12) ___.
UNIT 6
MANAGEMENT
Management
Management is a set of activities connected with human, financial, material and information resources of an organization directed at achieving organizational goals.
Traditionally, the term “management” refers to the activities and often the group of people involved in the four general functions: planning, organizing, leading and coordinating resources. The four functions are highly integrated.
| Planning includes identifying goals and objectives, selecting methods, examining resources needed to apply methods, determining responsibilities and dates to complete the tasks. Examples of planning in management are strategic planning, business planning, project planning, staff planning, advertising and promotion planning etc. | Controlling, or coordinating, the organization’s systems, processes and structures should lead to reaching goals and objectives. Controlling is accomplished through constant collection of feedback, monitoring and adjustment of systems, processes and structures. Controlling is accompanied by use of financial controls, policies and procedures, measures to avoid risks etc. |
| Leading comprises providing direction for the organization, groups and individuals and also motivating people to follow the direction. Leading is accomplished through establishing strategic direction (vision, values, mission and/or goals) and implementing methods of management to follow the direction. | Organizing resources means to achieve goals effectively. Examples are creating new departments, organizing human resources, arranging office and file systems, re-organizing business etc. |
Another common view states that “management” is getting things done through others. This means that the function of management is to support employee’s efforts to be productive members of the organization or community.
To most employees, the term “management” often means the group of people – executives and managers – who are primarily responsible for making decisions in the organization.
There is a classic expression about “manager”: “Leaders do the right thing and managers do things right.” It is more usual to consider that “managers work toward the organization’s goals using its resources in an effective and efficient manner.”
Usually large organizations have different levels of managers. It is common to distinguish top managers, middle managers and first-line managers.
Top (or executive) managers are responsible for running organization as a whole. They are typically engaged in more strategic and conceptual matters, with less attention to day-to-day affairs of the business. Top-level management requires an extensive knowledge of management roles and skills. Top managers have to be very aware of external factors such as markets. Generally, they take long-term decisions and are responsible for strategic decisions.
Top managers are supported by middle managers. Middle managers are in charge of the major function or department (finance, marketing, development, production, information, personnel). They implement the policies and plans developed by top managers.
First-line managers are responsible for managing day-to-day activities of employees or a group of workers. Generally, first-line managers are to take short-term decisions.
Management Styles
Managers have to perform many functions in an organization. The way they handle various problems will depend on their style of management. A management style is an overall method of leadership used by a manager. There are two contrasting styles defined in general as autocratic and permissive.
Each style has its own characteristics. Autocratic leader makes all decisions unilaterally. On the other hand, permissive leader permits subordinates to take part in decision making. Permissive leader also gives employees a considerable degree of autonomy in dealing with routine work.
Besides, it is usual to distinguish democratic and directive styles in management. Democratic leader allows subordinates to participate in decision making. Directive leader tells exactly his subordinates how to do their jobs.
Combination of these categories gives four varieties of managers:
| Ø Directive Democrat involves subordinates in making decisions and works in close cooperation with them. | Ø Permissive Democrat involves subordinates in making decisions and gives subordinates freedom in doing their work. |
| Ø Directive Autocrat makes decisions unilaterally* and works in close cooperation with subordinates. | Ø Permissive Autocrat makes decisions unilaterally* and gives subordinates freedom in doing their work. |
*unilaterally – односторонне, единолично
Questions:
· Should managers use only one management style?
· What personal and professional qualities are appropriate for a perfect manager?
UNIT 7
MARKETING
Marketing
Marketing is an integrated communication-based process. Through marketing individuals and communities discover that existing needs and wants may be satisfied by the products and services of others.
Marketing is also defined as the activity connected with creating, communicating, delivering, and exchanging offerings that have value for customers (clients, partners, and society at large). The term developed from the original meaning which referred to going to market (shopping), or going to a market to buy or sell goods or services.
Marketing is closely connected with management. So, it could be characterized as the management process consisting in identifying, anticipating and satisfying customers’ requirements profitably.
Marketing practice was considered as a creative industry in the past, which included advertising, distribution and selling. Nowadays, however, marketing makes extensive use of social and natural sciences: psychology, sociology, mathematics, economics, anthropology and neuroscience. That is why marketing is now widely recognized as a science.
The overall process of marketing starts with marketing research, and goes through market segmentation, business planning and execution, ending with pre and post-sales promotion activities.
In the early 1960s, Professor Neil Borden at Harvard Business School identified a number of company’s actions that can influence the consumer’s decision to buy goods or services. He stated that all those actions of the company made up “marketing mix”. Professor E. Jerome McCarthy at the Michigan State University stated that the marketing mix contained 4 elements: product, price, place and promotion.
The product aspects of marketing deal with the specifications of actual goods or services, and how these relate to the user’s needs and wants.
Pricing refers to the process of setting a price for a product, including discounts. The price need not be monetary; it can simply be what is exchanged for the product or service, e. g. time, energy, labour, or attention.
Placement (or distribution) states how a product gets to the customer. This third P is sometimes called Place, referring to the channel by which a product or service is sold (e. g. online, retail, catalogue), geographic region or industry, population segment (young people, adults, families, business people).
Promotion involves advertising, sales promotion, including promotional education, publicity, and personal selling.
These four elements are often referred to as marketing mix, which a marketer can use to make up a marketing plan.
The four Ps model is the most useful when selling cheap consumer products. Industrial products, services, expensive consumer products require adjustments to this model. Marketing of services must be based on the unique nature of services.
A number of modern companies see the major function of their business in satisfying the desires of customers. They believe that unless they do so in a competitive world they will not survive. The marketing orientation of a company can be contrasted with production and sales orientations.
A production orientated company works with the view that products will find their own markets if they are produced cheaply and to a good quality. Such companies do not spend much time investigating consumers’ wishes. As a result, they will often come to grief: despite their products are good in a technical sense, they do not match the benefits the consumers require.
A sales orientated company works with the view that success depends on effective advertising, selling and promotion rather than on real difference between the product it sells and those offered by competitors.
The real distinction between marketing and sales orientation is that “selling tries to force the customer to want what the company has; marketing on the other hand tries to force the company to produce what the customer wants”.
Advertising
Advertising is a form of communication used to help sell products and services. Usually it contains a message including the name of the product or service and how that product or service could potentially benefit the consumer. But, in fact, advertising typically try to persuade potential customers to buy or to consume more of a particular brand of product or service.
Many advertisements are made to generate increased consumption of the products and services through the creation and reinvention of the «brand image». For these purposes, advertisements sometimes complete their persuasive message with factual information. There are many ways to deliver these messages, including traditional media such as television, radio, cinema, magazines, newspapers, video games, the carrier bags, billboards, mail or post and Internet marketing. Advertising is often placed by an advertising agency on behalf of a company or organization.
Advertising is sometimes aimed at selling what is not, strictly speaking, a product or service. Such organizations as political parties, interest groups, religious organizations, and military recruiters use advertising to inform, educate and motivate the public about non-commercial issues, such as HIV/AIDS, political ideology, religious recruitment, energy conservation, deforestation etc. Non-commercial advertising is a powerful educational tool capable of reaching and motivating large audiences.
Advertising has become increasingly prevalent in modern society. It is also increasingly being criticized. A person is now always subject to advertising. Advertising occupies public space and invades the private sphere of people. Unwanted Commercial Email and other forms of spam have become prevalent: they have become a major nuisance to users of these services, as well as being a financial burden on Internet service providers. In addition, advertising frequently uses psychological pressure (for example, appealing to feelings of inadequacy) on the intended consumer, which may be harmful.
The children’s market, where resistance to advertising is the weakest, is the leader in ad invasion. Kids are among the most sophisticated observers of ads. They can sing the jingles and identify the logos, and they often have strong feelings about products.
Advertising increasingly tries to transform youth into a consumer. The key to reach the next generation of consumers is the rising independence of young people which advertising messages exploit. Advertising is used not only to sell goods, also it inspires ideas: how we should behave, what rules are important, who we should respect and what we should value.
A great part of advertising touches the promotion of products to improve the appearance of people, mainly for women (in the past almost only for women). Women are generally portrayed as sex symbols who are ultra slim. Thus, because of the media girls and women are under high pressure to compare themselves with a propagated ideal beauty. Consequences of this are low self-esteem, eating disorders, self mutilations, beauty operations etc. The EU parliament passed a resolution in 2008 that advertising may not be discriminating and degrading. This shows that politics is increasingly concerned about the negative aspects of advertising.
Questions
· What are advertisements made for?
· What are advertisements about?
· What are the main advantages and disadvantages of advertisement?
· What are the target groups of advertising?
· What is your attitude to advertisements?
UNIT 8
INFLATION
V. Look through the table with suffixes added to existing nouns and verbs to describe people, their jobs and professions. Do the exercise in the third column putting the suitable suffix to the words, translate them.
| Suffix | example | exercise |
| -er | banker | work, buy, sell, produce, lead, own, rent, consume, manage |
| -or | operator | translate, act, direct, debt |
| -ist | chemist | journal, art, economy, paint, psychology, biology, therapy, dent, ego, type, capital |
| -ian | physician | music, politics, mathematics, statistics |
| -ee | interviewee | employ, retire |
| -ant -ent | participant student | consult, depend, serve, assist, account preside, respond |
Inflation
Inflation is an economic event affecting everyone. Inflation is a continuing increase of prices, or the rate at which prices increase.
The most popular measure of inflation is the Consumer Price Index. The Consumer Price Index (CPI) measures how the cost of goods and services changes. The CPI measures changes in the cost of such things as food, clothing, housing, medicine and transportation. The change is stated as a percent. If the CPI shows 10% yearly increase, you will need 1100 rubles to buy what 1000 rubles bought a year before.
There are two basic kinds of inflation. One is called demand-pull, or buyers’ inflation. The other is called cost-push, or sellers’ inflation.
Demand-pull inflation occurs when demand goes up faster than supply. This causes an inflationary gap. The only way to fill the gap is to raise prices. The people who scalp, or sell illegally, for example, tickets at sporting events or pop concerts, know this very well. Millions of people would like to see the Super Bowl in person. But no stadium has that much seating. There is a huge demand with a limited supply of tickets. That is why $60 tickets are scalped for $500 or more. This is the way demand-pull inflation works.
Cost-push inflation is a different story. In this case, inflation comes from supply. The cost of making a product or providing a service goes up. If workers of an automobile plant get a raise, the price of cars goes up. The demand for cars does not cause the price increase. The demand stays more or less the same. However, the labor costs at an automobile plant have gone up, so the price of cars has to go up. This is the way cost-push inflation works.
Every wage increase does not cause cost-push inflation. If a worker gets a 10% raise for being 10% more productive, there is no inflation. But if the worker gets a 10% raise for doing the same thing, there is inflation. Assume that a worker who produces 100 units an hour gets a 10% raise. If the worker now produces 110 units an hour, there is no inflation. The raise is balanced by increased production. If production stays at 100 units an hour, there is cost-push inflation.
Labor leaders often argue that workers need more pay to keep up with the cost of living. However, each round of increased wages means another round of increased prices. This is called a wage-price spiral. Prices go up. Then wages go up. So prices go up again, and so forth. That is one reason why inflation occurs almost every year.
Inflation does not hurt everyone equally. Inflation hurts retired people living on pensions because they have fixed incomes. Their income does not rise with inflation. Employees of public companies are hurt because their salaries do not keep up with inflation. People who keep their money in savings accounts at a bank are hurt. Their balances increase, but the buying power of the money decreases. What good is to earn 5.5% interest from a bank if the inflation rate is 15%? The only thing to do is to put your money where it will earn interest at least equal to the rate of inflation.
Banks are in the business of lending money. Banks charge interest for this service. The rate of this interest must be higher than the rate of inflation. Otherwise, the bank will lose money. Suppose the inflation rate is 12.5% and the bank charges 17.5% interest. In this case, the bank makes a 5% profit on the loans.
Today, banks often use adjustable interest rates. When inflation goes up, the banks’ interest rate also goes up. This protects the banks against inflation.
Inflation raises the value of land and housing. Owners benefit when their property values increase faster than the overall rate of inflation. Renters are not so lucky. They do not own what is increasing in value. In general, low-income people, who often rent, are hurt more by inflation than high-income people, who often own property.
People who owe money are sometimes helped by inflation. Suppose you borrow 1000000 rubles at 10% interest, and inflation shoots up to 15%. Inflation makes the ruble you are paying back worth less than the ruble you borrowed. In this case, the 5% loss for the bank is your 5% gain.
Some young workers and employees can also benefit from inflation. They are just beginning to climb up the wage or salary scale. They are more likely to get promotions or change jobs than older employees. As a result, their salaries are more likely to keep pace with rising inflation. Compared to some older employees, young employees are getting richer. They are moving up while others are standing still. Inflation is not always bad for everyone. It hurts everyone in some way, but it can help certain people.
Vocabulary notes
bill n – счет, квитанция
blame v – ругать
destroy v – разрушать
entertainment n – развлечения
food n – пища
healthy adj – здоровый
heating n – отопление
item n – товар, предмет
When the cost of a favorite product goes up, people often blame inflation. But, is it inflation when the football club increases ticket price by a dollar? Is it inflation if the bill for electricity jumps by 15%? In each case, the answer is no.
A rise in the cost of one or two or even three items is not inflation. Inflation is a rise in the overall level of prices. The cost of living, which is the price of most goods and services, has to be going up, not just the cost of one thing. Likewise, deflation is not just a drop in gas prices. It is a drop in the overall cost of goods and services.
Seasonal supply can affect prices. Peaches are in greater supply in July than in December. For this reason, the price is lower in July and higher in December. Demand can also affect prices. A successful football team can charge more for tickets than a loser team.
To have inflation, almost all the prices have to go up. There is no inflation if half the prices go up and half the prices go down by the same amount. You have inflation if the cost of food is going up and the cost of entertainment is going up and the cost of heating your home is going up.
Naturally, most people do not like inflation. However, small increases in inflation of about 3% or 4% a year do not hurt too much. A little inflation is often a sign of a healthy, growing economy. Deflation, on the other hand, seems good. But in almost every case, deflation comes only where there is no growth and unemployment is high.
While a little inflation may be all right, too much inflation clearly is not. High inflation can destroy the value of your earnings. Runaway or hyperinflation can destroy the economy of a nation.
Questions
1. What are the signs of inflation?
2. What phenomenon is opposed to inflation? What is its definition?
3. What affects prices?
4. Which prices rise with inflation?
5. Is inflation good or bad for the economy of a nation? Why?
6. What is hyperinflation?
UNIT 9
TAXATION AND TAX SYSTEM
Taxation and tax system
Taxation is the process by which people pay expenses of the government. Taxation is as old as government. Even the earliest and simplest societies needed some method of maintaining order and providing justice. These services could not be provided without costs.
Many kinds of taxes have been used and are being used in the world. The main taxes can be divided into direct andindirect taxes. Direct taxes are paid on income and capital.Indirect taxes are paid when money is spent. Income tax is used to redistribute wealth from the rich toward the poor (through social programs). It is a quite simple tax to collect, because many employers pay the tax directly for the employees, deducting it from the salary before it is paid. In general, income tax is a progressive tax: more is paid as income rises. This may become a drawback if there is no incentive to work harder because people may feel that they earn relatively less and pay more tax. If the rates of a tax are lower than applied to a larger sum, the tax would be called regressive.
The tax is called proportional if the rate of taxation remains the same (constant flat rate), whether it is applied to a small sum or a very large one. The tax on houses and farms is an example of the proportional tax because the rate is the same whether the house or farm is large or small.
Indirect taxes are paid on goods and services. The taxes are paid by the shops or manufactures, but then passed on to the consumers in the form of higher prices. In the United Kingdom, for example, the value added tax or VAT is the most important indirect tax. The advantage of this tax is that it is directly in line with inflation. If the prices rise, so does the tax. However, the burden of this tax hits more heavily the pockets of the less well off.
Taxes also may be identified according to the base on which they are applied. For example, the property tax is levied on both land and buildings (real estate), and private property. The inheritance tax is placed on the value of the property a person inherits. The estate tax is placed on an estate before it is divided among the heirs. Sales tax is levied on sales: it may be applied either to all kinds of sales or only to certain kinds. If sales taxes are placed on luxury goods, they are called luxury taxes and generally represent a high rate of taxation.
Excise taxes are those placed on a specific commodity, or thing, by the government. Tobacco and liquor taxes are excise taxes. Custom duties or tariffs are taxes placed on the importation of goods from outside the country. A license tax is one placed on the right to do something, as for example, to sell liquor and tobacco, to get married, to own a dog, to go hunting or fishing.
Countries vary in the balance of their taxation: some rely more on income taxes, while others gain a larger proportion from indirect taxation. However, a balance is generally a very important factor in taxation. There are some other principles for taxation. It is clear that the tax system should be simple. Both those who pay the taxes and those who collect them should be able to understand the tax laws. The system should be stable so that the taxpayer knew in advance that he must pay the tax to be able to save money for it. And it should be possible to expand the tax system to collect more money in periods of emergency, when the government must spend more money and to reduce the amount of taxes in normal times, when government expenditures are at minimum. This is called the principle of elasticity.
The government of a country needs to collect taxes in order to provide goods and services that will be shared by consumers. Military defense spending is one of the main items in this category. Governments maintain armed forces and spend money on such costly items as aircraft carriers and tanks. Law enforcement is another priority for the government. Besides, other services such as health care and education would only be affordable to rich people if government did not provide them. Taxes are used to build schools, roads, and bridges and maintain services such as police and firefighting.
Another part of governmental expenses is allocated to caring for those who do not have an income at all. The very poor, the unemployed, and the dependent children are provided for out of taxation.
The countries with the lowest tax in the world are Bahrain, Brunei, Kuwait, and Qatar (where there is no tax at all). The highest taxation rate is in Norway. Some people pay more than 100% of their taxable income.
Vocabulary notes
aim v – иметь своей целью
tax bracket n – ступень налоговой шкалы
depend v – зависеть
insurance n – страхование
introduce v – вводить
Supreme Court – Верховный суд
Social Security tax – налог, взимаемый в соответствии с программами социального страхования
Questions
· What types of taxes gave revenue to local governments in the USA?
· What types of taxes did state governments depend on?
· What types of taxes are the federal government’s chief source of revenue in recent years?
· Why was the first U.S. income tax law enacted?
· When was the modern system for managing federal income taxes introduced?
· What were the income tax rates?
· What is the Tax Reform Act? What are the aims of this law?
UNIT 10
COMPANY STRUCTURE
Company Structure
A company is a form of business organization.
Pyramidal structure also known as hierarchical is the most widespread form of organization in the world today. Such companies have a person or a group of people at the top of organization, and an increasing number of employees below them.
The control of a company is divided between two bodies – the Board of Directors, and the shareholders in the general meeting. In practice, the measure of power exercised by the Board varies with the type of company. In small private companies, directors and shareholders will normally be the same people, and thus there is no real division of power. In large public companies, the Board tends to supervise the company’s activity in general, but individual responsibility and management are delegated to executive officers or directors.
Board of Directors is a group of people elected by the owners of a business who have decision-making and voting authority, and specific responsibilities distinct from the ones of owners and managers of the business. Typical duties of the Board of Directors include:
· managing the organization by establishing general policies and objectives;
· selecting, appointing, supporting, and reviewing the performance of the chief executive;
· ensuring the availability of adequate financial resources;
· approving annual budgets.
The highest ranking management officer of a corporation is the Chief Executive Officer or CEO (United States), Managing Director (United Kingdom, Commonwealth and some other English speaking countries). The CEO takes final decisions over human, financial, environmental, technical operations of the corporation. The CEO reports to the President or Chairman of the Board of Directors. Also, the CEO sometimes combines his duties with these of the Chairman of the Board.
The responsibility of the Chief Executive Officer is to arrange the company’s activity according to his strategic vision. The principal duty of the CEO is to organize external activity of the business, and, at the same time, to guide employees and other executive officers towards a central objective. The CEO must balance external and internal initiatives to make his company prosperous.
The role of the CEO is to make up, develop and implement strategic plans for the organization in a cost-effective and time-efficient manner. The CEO is also responsible for the everyday management of the organization, including managing staff and developing business plans in collaboration with the Board. In fact, the Board gives the CEO authority to run the organization. The CEO reports to the Board on a regular basis – quarterly, semiannually, or annually. The Board may offer suggestions and ideas to improve the affairs of the organization, but the CEO chooses the ways of implementing these ideas.
For corporations, the CEO primarily coordinates external initiatives at a high level. As the CEO does not usually deal with specific operations of various departments, he must compensate it through delegating responsibilities. The Chief Executive Officer is supported by a number of corporate officers such as Chief Operating Officer (COO), Chief Financial Officer (CFO), Chief Investment Officer (CIO), and division heads. They manage affairs in a particular field (finance, marketing, development, production, information, personnel).
The chain of command runs down the company structure. Superiors, called bosses, have more power than their subordinates. Besides, superiors are not as numerous as their immediate subordinates. So, there are more employees in the organization at the bottom of the structure.
Structuring organizations in this way seems convenient because it can balance the number of contacts between managers and subordinates. In hierarchical organization members chiefly communicate with their immediate superior or immediate subordinates. All employees know who their boss is (they report to), and the manager gives instructions to his immediate subordinates. However employees at lower levels have no right to take important decisions in the company.
APPENDIX 1
BUSINESS LETTERS
| Amelie Mesimaut Office Manager MOC Ltd 12 Fairground Road London W5 8GD England, UK 5 March 2009 VOG Catering Chepstow Place London Wll 9GL Dear Sir/Madam, I am writing to apply for the post of Office Administrator as advertised in The Tribune on 21 February, 2009. I came from France but I have been living in England for the last four years. I did an office management course at West London College of Further Education and since then I have been working as an Office Manager for a mail order company in central London. I have experience in dealing with customers and liaising with a dispatch department, because at present these are my duties. However, I am very interested in working as an Office Administrator because this would give me an opportunity to be responsible for a team of employees. I am enclosing my resume and hope that you will find my experience and qualifications suitable for the post. I look forward to hearing from you soon. Yours faithfully Amelie Mesimaut |
| Kira Spraut 2544 South Fruitsnake Road, Row Placid, Indiana 54267, USA May 4, 2009 | |
| Mr. Robert T. Smith Vice President Indiana Petroleum Company 1143 Broad Street, Row Placid, Indiana 47786, USA | |
| Dear Mr. Smith: Having served for several years as a secretary of a private business, I would like to apply for the position of executive secretary, which you advertised in the Row Placid Journal, April 24, 2009. As a secretary with Kenley Corporation here in Row Placid I was directly responsible to Mr. Haddican, the company’s owner. In addition to typing, filing and taking dictation, I was responsible for scheduling all the Mr. Haddican’s appointments and telephone calls. Generally, I did everything to make Mr. Haddican’s heavy responsibilities easier. Thus I am familiar with the duties of executive secretary and believe I am prepared to anticipate and meet all your expectations. I would appreciate your giving me the opportunity to discuss my qualifications in person. I would be happy to come for an interview at your convenience, and I can be reached after 5 p.m. at 772 1747. Sincerely yours Kira Spraut |