Government and business

Lead-in

Classify the tasks you consider to be governmental responsibilities in order of importance.

- education

- health care

- working conditions

- social security

- defence

- public transport

Key Vocabulary

Study the following list of vocabulary.

1. interfere in smth \ intervene in smth	вмешиваться во что-л.
2. allow v	позволять, разрешать
3. responsibility n	ответственность
4. poverty n	бедность
5. essential adj	важнейший, необходимый
6. recreational facilities	места отдыха и развлечений
7. invest in smth	инвестировать, вкладывать
8. environment n	окружающая среда, окружение
9. free enterprise system	система свободного предпринимательства
10. government regulation	государственное регулирование
11. laissez-faire	невмешательство
12. tax breaks	налоговые льготы
13. fine-tune v	регулировать
14. inflationary adj	инфляционный
15. deep recession	глубокий спад
16. threaten v	грозить, угрожать
17. reduce v	сокращать, уменьшать, понижать
18. interest rate	процентная ставка
19. economic emergency	чрезвычайное экономическое положение
20. runaway inflation	безудержная инфляция

Pre-reading Activities

Translate the sentences into Russian. Mind the list of Useful Vocabulary.

1. If inflation threatens the US economy, the Federal Reserve System may adopt policies that increase interest rates.

2. During a depression the government may try to increase demand by cutting taxes so that people have more money to spend.

3. An essential part of economic freedom is freedom to use the resources we possess in accordance with our own values.

4. In some countries producers don’t depend on the government regulations and make all decisions themselves.

5. A mixed type of economy with a rather high degree of government intervention is a feature of some developed countries, such as the USA, Canada, Japan.

Reading

1. Read the text. Ask 4-5 questions about its contents and let the group answer them.

To what extent should the government interfere in the economic system? On the one hand, it can intervene minimally, allowing the forces of supply and demand and the price mechanism to determine what goods and services are to be produced. On the other hand, the government can make all major decisions such as what to produce, how to produce and for whom to produce.

Most governments operate between these two extremes. But there are always some things which are under the government’s control. For example, health care is a sphere of a state responsibility in all civilized lands, as no one can be assigned to illness or death because of poverty. The state has many other essential functions: parks and recreational facilities, the police, libraries and others. By the way, to support science is also the government’s responsibility. Together with this, it usually invests in agricultural productivity, modern air transport, advanced information technologies and the environment.

The USA points to its free enterprise system as a model for other nations. But exactly how free is business in America’s free enterprise system? The answer is, not completely, because a complex web of government regulations shapes many aspects of business operations.

It is known that historically, the US government policy toward business was summed up by the French term laissez-faire – “leave it alone”, but laissez-faire practices haven’t prevented private interests from turning to the government for help on numerous occasions, such as grants of land and public subsidies, protection against strong competition, tax breaks and others.

As for the British government, it seeks to fine-tune the economy in order to keep economic booms from becoming too inflationary and recessions from becoming too deep. The British government often manages demand, intervening when demand for goods and services is high enough to threaten inflation. In such cases the government tries to reduce demand by raising interest rates and taxes. In economic emergencies the government can control prices and incomes to a considerable extent, but this is done only in extreme circumstances such as in times of war and runaway inflation.

Comprehension Check

1. Agree or disagree with these statements about the text.

1. Sports care is a sphere of state responsibility in all civilized lands.

2. China points to its free enterprise system as a model for other nations.

3. A complex web of the US government regulations shapes many aspects of business operations.

4. In economic emergencies the British government never controls prices and incomes.

2. Find the paragraph, which gives the answer to the following question.

- What spheres of life are usually under the government control?

A. 1 B. 2 C. 3

3. Complete the sentences using the information from the text.

1. As for the British government, it seeks to ……… .

2. The state has many other essential functions: ……… .

3. On the other hand, the government can make ……… .

5. In economic emergencies the government can ……… .

Vocabulary Focus

1. Match the words on the left with their synonyms on the right.

1. essential a. decrease

2. interfere b. let

3. reduce c. important

5. allow e. regulate

2. Use the words from the list of Useful Vocabulary to complete the sentences.

1. The American ….. emphasizes private ownership.

a. deep recession

b. free enterprise system

c. interest rate

2. While most Americans would agree that ….. has an important role to play in the economy, there is a considerable disagreement as to how active this role should be.

a. government

b. environment

c. responsibility

3. People who ….. in education, gain profit in the form of knowledge.

a. interfere

b. invest

c. reduce

4. A serious, long-lasting ….. is called a depression or a slump.

a. inflation

b. increase

c. recession

5. In carrying out ….., the government uses a combination of monetary and fiscal policies.

a. fine-tuning

b. laissez-faire

c. tax breaks

6. If a(n) ….. is lowered, businesses will borrow more from the banks, jobs will be created, but prices might rise and that means inflation.

a. run-away inflation

b. government regulation

c. interest rate

3. Give the English equivalents to the following expressions.

- чрезвычайное экономическое положение

- налоговые льготы

- безудержная инфляция

- производить товары и услуги

- современные информационные технологии

- принимать решения

- поднять процентную ставку

- контролировать цены и доходы

Talking Points

1. Comment on the quotations.

1. “Which is the best government? That which teaches us to govern ourselves”.

Johann Wolfgang von Goethe

2. “That government is the best which governs least, because its people discipline themselves”.

Thomas Jefferson

2. Express your opinion on the following issues.

1. To what extent should the government interfere in the economic system?

2. Some economists state that the government interferes in the economy too much. Others say it should do more. What are your arguments for and against government control? While answering this question, you may use the following phrases.

- To my mind ………

- I think ………

- In my opinion ………

- On the one hand ………, on the other hand ………

Summary Points

1. Read the text and choose the most suitable title out of those given below.

A. Small Business in the USA.

B. The Role of the Government and Individuals in the American Economy.

C. The Mixed Type of the American Economy.

The American free enterprise system emphasizes private ownership. Private businesses produce most goods and services, and almost two thirds of the output goes to individuals for personal use.

However, there are limits to free enterprise system. Americans have always believed that some services are better performed by public rather than private enterprises. For example, in the US the government is responsible for the administration of justice, education (although there are many private schools), road system, and national defense. The American government also provides unemployment benefits to people who cannot support themselves; it pays much of the cost of medical care for those who live in poverty; it regulates private industry to limit air and water pollution; it provides low-cost loans to people who suffer from natural disasters; and finally, it has played the leading role in the exploration of space, which is too expensive for any private enterprise to handle.

In the American economic system, individuals can help guide the economy through the choices they make as consumers and through the votes they cast for officials who shape economic policy. In recent years, consumers have voiced concerns about product safety, environmental threats and potential health risks. The government, in its turn, has responded by creating agencies to protect consumer interests.

The US economy has recently changed in other ways as well. The labor force has shifted to service industries. In today’s economy, there are much more providers of services than producers of agricultural and manufactured goods.

Notes:

cast votes – голосовать

voice concern – выражать беспокойство

shift v– перемещать(ся), передвигать(ся)

2. Put down key words and expressions from each paragraph.

3. Summarize the text, basing on the key words and expressions you have put down.

Unit 12

CORPORATE CULTURE

Lead-in

1. Split into groups. Within your group discuss the issues below. Share the opinion of your group with the others.

1. How do you understand the term “corporate culture”?

2. What is the role of corporate culture in successful business?

2. Choose the factors which are influenced by corporate culture. Then comment on your choice.

- communication in the company

- profit of the company

- planning

- decision-making

- image of the company

- management of the company

- size of the company

- personal relations in the company

- hobbies and interests of employees

- payment of work in the company

Key Vocabulary

Study the following list of vocabulary.

1. corporate culture	корпоративная культура(свод наиболее важных положений деятельности организации, определяемых её миссией и стратегией развития и находящих выражение в совокупности социальных норм и ценностей разделяемых большинством работников)
2. belief n	вера, мнение, убеждение
3. staff n	штат служащих, персонал
4. govern v	управлять, править, руководить
5. behave v	вести себя, поступать
6. evolve v	развиваться, эволюционировать
7. employee n	служащий, работающий по найму
8. restrict v	ограничивать
9. solve a problem	решать проблему
10. perceive v	воспринимать, понимать, осознавать
11. perception n	восприятие, осмысление, осознание
12. background n	происхождение, биографические данные, связи, окружение (всё, что связано с жизнью человека)
13. research n	исследование, исследовательская работа
14. encourage v	поощрять, поддерживать в чём-л.
15. accuracy n	точность
16. emphasize v	придавать особое значение, подчёркивать
17. status quo	статус-кво, существующее положение вещей