I. Use the proper preposition.

… a fee …a part-time basis to advance smb … to be close ... smb to be concerned …

to be performed ... smb to be responsible... to buy … credit to consist … to convert …

to cope … to invest … to operate … a profit to rely … to result …

J. Give Russian equivalent to the following expressions:

fundamentals of fiscal and business administration, to rely on the expert knowledge and experience, to perform the routine work of doing smth, to operate at a profit, to close down owing to lack of funds, to be advanced to the position, loans made to the firm, money owing for goods supplied to the firm, to record figures in the books, to have a background in accounting, to interpret the data.

K. Match English terms denoting доход, прибыль, выручка, приход, денежные поступления with the given definitions. Use the dictionary to help you.

a) earnings b) gain(s)

c) income d) proceeds

e) receipts f) return(s)

g) revenue h) yield

1. most general term for money we receive for our work, investments, etc.

2. profit from a transaction.

3. income, especially the total annual income of the state from taxes

4. money earned

5. increase in wealth, profit

6. money received by a business

7. money obtained by selling something

8. income received from holding securities, esp. bonds

UNIT 4

GLOBAL FORCES

Module 1 Globalization

Starting up

• What international organizations can you name?

• What do the following abbreviations stand for?

IMF IBRD GATT EEC NAFTA OPEC WTO OECD

• Do you know their functions in the world economy?

A. Study the topical vocabulary.

entity	организация, образование
substantial	значительный, существенный
an amendment	улучшение, корректировка; поправка к закону, резолюции
loan practice	практика предоставления займов
to shift focus	смещать акценты
poverty alleviation	борьба с нищетой
regulatory practices	нормативно-правовая практика
to pose new strains	ставить новые проблемы

Reading 1: International Organizations

B. Read the information and say if you were right in your guesses.

International organizations are legally constituted entities that operate across several nations. Such organizations do not operate for profit. Some of the international organizations are the WTO (World Trade Organization), Global Futures Foundation and IMF (International Monetary Fund).

Post WWII, the US and its winning allies came to the conclusion that a stable liberal international economic order is the necessary basis of lasting peace, apart from stable international political order. The ITO (International Trade Organizations) came to an end due to political disagreements. In 1947, GATT (General Agreement on Tariffs and Trade) was formed as a free standing trade agreement, which was less formal in nature. The GATT agreements were formalized as the WTO. The 1970s saw a substantial reduction in tariffs on many goods. During the 1980s and 1990s, the GATT member countries took the initiatives to make the agreement more formal.

World Bank made a lot of amendments in its loan practices by implementing recommendations of the French government and the Marshall Plan. The bank started shifting its focus towards non-European nations. During 1968-1980, it worked towards poverty alleviation by that ensuring people in developing nations get their basic needs. From 1989 till late 2000s, the focus has been shifted to going green.

One of the major challenges being faced by international organizations is integrating developing countries on various measures. Some other challenges that international organizations are facing are in the field of intellectual property rights, trade in services and investment measures in relation to trade.

Member countries fear that international organizations might dictate their terms. So, they implement protectionism in regulatory practices at the domestic level, which poses new strains. Multilateral liberalization might face difficulties due to growing regionalism. International organizations are likely to face the challenge of enhance international reforms in the world trade.

C. What spheres of economy and social life, do you think, the following organizations are engaged in?

International Trade Centre and World Trade Organization, The World Bank and Institute of International Finance, Food and Agriculture Organisation (FAO) and World Food Programme, Global Environment Facility and United Nations Environment Programme, the International Committee of the Red Cross and ReliefWeb, the World Health Organization.

Reading 2. Globalization

A. Answer the following questions before reading.

1. What do you understand under globalization?

2. What are the examples of this phenomenon?

3. Do you think the global processes are positive or negative?

observer	наблюдатель
to establish production and marketing arrangements	создавать соглашения по производству и сбыту товаров
controversial	спорный, неоднозначный, дискуссионный
proponent	сторонник, защитник
resistance	сопротивление

B. Now read the text and check if your guesses were right.

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

Policy and technological developments of the past few decades have encouraged increases in cross-border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in its economic development. Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion. Distinguishing this current wave of globalization from earlier ones, author Thomas Friedman has said that today globalization is “farther, faster, cheaper, and deeper.”

This current wave of globalization has been driven by policies that have opened economies domestically and internationally. In the years since the Second World War, and especially during the past two decades, many governments have adopted free-market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment. Governments also have negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and investment. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. A defining feature of globalization, therefore, is an international industrial and financial business structure.

Technology has been the other principal driver of globalization. Advances in information technology, in particular, have dramatically transformed economic life. Information technologies have given all sorts of individual economic actors - consumers, investors, businesses - valuable new tools for identifying and finding economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with a great number of partners.

Globalization is deeply controversial, however. Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people. Resistance to globalization has therefore taken shape both at a popular and at a governmental level as people and governments try to manage the flow of capital, labor, goods, and ideas that constitute the current wave of globalization.

C. Fill in the words from the box.

foreign markets globalization benefits

international agreements world trade technology

… is a process in which economic events in one place affect almost all other places. The economists point out increased volumes of … The drivers of the globalization are policies and … . … have removed trade barriers between countries. The advantage of this process is that the access to … is provided. The negative point of the globalization process is that there are more … for multinational corporations.

D. Match the words from the text with their corresponding definitions.

corporation	the process of making something such as a business operate in a lot of different countries all around the world, or the result of this
free market	a big company or a group of companies acting together as a single organization
benefit	the activity of buying, selling, or exchanging goods between countries
to develop	an economic system in which prices are not controlled by the government
international	affecting or including the whole world
globalization	an advantage, improvement, or help that you get from something
trade	to grow or change into something bigger, stronger, or more advanced, or to make someone or something do this
integration	to help something to develop or increase
to promote	the combining of two or more things so that they work together effectively

E. In pairs, make a list of what you think the principal advantages or disadvantages of globalization are.

Listening: For and against globalization

(Market Leader, Intermediate Business English CB by D. Cotton, Unit 1)

Over to you

Conduct some research into either the costs or the benefits of globalization. You should aim to give a presentation lasting approximately 15 minutes outlining your case. At the end of the presentation, you should be prepared to take 10 minutes of questions from your 'audience' on the issues you have raised in your presentation.

The 'opposition' will present their case in a similar manner. At the end of the exercise, you will be asked to write a short 500 word report on whether, and how, globalization should or can be 'managed'. The intention of the report is to get you to write a concise summary of the key issues facing the planet as globalization takes a further hold. You will be raising the key issues that face the authorities rather than providing any form of definitive answer. For example, you may feel that a key way of solving many of the problems is to further extend the movement towards freeing up trade. At this level, how that may be done is another matter!

Module 2 International trade

Starting up

• Think of some things you own (e.g. shoes, clothes, car and etc.). Which are imported? Where were they made?

• Try to recall the meals you’ve eaten in the last 24 hours. How much of the food came from abroad?

• What are your country’s major imports and exports?

• Do you think products made in your country are better than products made in other countries?

• Can you even imagine living in a country that did not import anything, where only locally produced food and textiles and products were available?

Reading: Protectionism and free trade

A. Study the topical vocabulary.

comparative cost principle	принцип сравнительных издержек
economies of scale	экономия за счет масштаба
to impose tariffs and quotas	вводить тарифы и квоты
substitutes	товары-заменители
to retaliate against	принимать ответственные меры против кого-либо
to impose restrictions	вводить ограничения
infant industries	неокрепшая отрасль промышленности
most favoured nation	государство, пользующееся режимом наибольшего благоприятствования

B. Read the text and answer the following questions.

1. Why do most economies oppose protectionism?

2. Why do most governments impose import tariffs and/or quotas?

3. Why were many developing countries for a long time opposed to GATT?

4. Why have many developing countries recently reduced protectionism and increased their international trade?

C. Read the text.

The majority of economists believe in the comparative cost principle, which proposes that all nations will raise their living standards and real income if they specialize in the production of those goods and services in which they have the highest relative productivity. Nations may have an absolute or a comparative advantage in producing goods or services because of factors of production (notably raw materials), climate, division of labour, economies of scale, and so forth.

This theory explains why there is international trade between North and South, e.g. semiconductors going from the USA to Brazil, and coffee going in the opposite direction. But it does not explain the fact that over 75% of the exports of the advanced industrial countries go to other similar advanced nations, with similar resources, wage rates, and levels of technology, education, and capital. It is more a historical accident than a result of natural resources that the US leads in building aircraft, semiconductors, computers and software, while Germany makes luxury automobiles, machine tools and cameras.

However the economists who recommend free trade do not face elections every four or five years. Democratic governments do, which often encourages them to impose tariffs and quotas in order to protect what they see as strategic industries – notably agriculture – without which the country would be in danger if there was a war, as well as other jobs. Abandoning all sectors in which a country does not have a comparative advantage is likely to lead to structural unemployment in the short (and sometimes medium and long) term.

With tariffs, it is impossible to know the quantity that will be imported, because prices might be elastic. With quotas, governments can set a limit to imports. Yet unlike tariffs, quotas provide no revenue for the government. Other non-tariff barriers that some countries use include so-called safety norms, and the deliberate creation of customs difficulties and delays.

The General Agreement on Tariffs and Trade (GATT) had the objectives of encouraging international trade, of making tariffs the only form of protectionism, and of reducing these as much as possible. The most favoured nation clause of the GATT agreement specified that countries could not have favoured trading partners, but had to grant equally favourable conditions to all trading partners. The successor of GATT is the World Trade Organization.

It took nearly 50 years to arrive at the final GATT agreement because until the 1980s, most developing countries opposed free trade. They wanted to industrialize in order to counteract what they rightly saw as an inevitable fall in commodity prices. They practised import substitution (producing and protecting goods that cost more than those made abroad), and imposed high tariff barriers to protect their infant industries.

Nowadays, however, many developing countries have huge debts with Western commercial banks on which they are unable to pay the interest, let alone repay the principal. Thus they need to rollover (or renew) the loans, to reschedule (or postpone) repayments, or to borrow further money from the International Monetary Fund, often just to pay the interest on existing loans. Under these circumstances, the IMF imposes severe conditions, usually including the obligation to export as much as possible.

East Asian ‘Tiger’ economies (Hong Kong, Singapore, South Korea and Taiwan), were afraid of being excluded from the world trading system by the development of trading blocks such as the European Union, finalized by the Maastricht Treaty, and the North American Free Trade Agreement (NAFTA), both signed in the early 1990s. So they tended to liberalize their economies, lowering trade barriers and opening up to international trade.

D. Complete sentences 1-6 about free trade with a-f below.

Free trade exists when goods can be traded easily between countries ... Protectionism is where countries try to protect home producers ... One way they do this is by using tank's... Another way is by using quotas which limit ... Domestic manufacturers often complain that foreign competitors ... 6) Exporters, on the other hand, often complain about …

... which are a kind of tax on imported goods. ... complicated bureaucracy and complex customs regulations. ... without restrictions. ... the number or quantity of goods that can be imported. ... from foreign competition and cheap imports. f) ... try to destroy them by dumping their goods at very low prices.

E. Complete these sentences with the words in italics from D.

1. These new import … make our products 50% more expensive.

2. Government … limit the import of luxury cars to just 200 each year.

3. … is a very good idea in principle, but in practice we … need to help domestic manufacturers to survive.

4. This … is awful; just look at all these forms we've got to fill in.

5. We can't compete with their prices; they must be… their goods to put us out of business.

F. Complete this summary about protectionism with the words from the box.

imports profit unfair competition kills the local competition dump their goods balance of trade manufacturing their own goods

Protectionism is justified for developing countries when they want to start _{(a) …} This helps them become less dependent on _(b) … and this is good for the country’s _(c) … Protectionism is even justified for developed countries when they have problems with _{(d) …}, for example, when aggressive competitors _(e) … The competitor doesn't make _(f) … but it _{(g) …}

Speaking

Discuss these questions with your partner.

1. What advantages of geography, people, and natural resources does your own country have?

2. How has it exploited its comparative advantages?

3. Are trade restrictions a good thing or a bad thing in your opinion? Why?

4. Do you know whether your country uses tariffs or quotas on imports?

5. Do you think any country has a completely open economy?

Listening: Free Trade

(Market Leader, New Edition, Intermediate Business English CB by D. Cotton, Unit 1)

Writing

Write an essay “The trade partnerships of your country with other nations”. First, do some research and find out what and how your country trades with others. Then use this plan to organise your answer.

INTRODUCTION	Explain that you are going to write about your government's trade partnerships nowadays. Mention that historically these partnerships haven't always been the same.
PARAGRAPH 1	What absolute advantages does your country have (natural resources or strong industries)? What are the main exports from your country (goods and services)? Which countries do they go to? How does this affect your country's international trading?
PARAGRAPH 2	What are the main imports into your country, and where are they from? Why are these imported? Do other countries have an absolute or comparative advantage in these goods?
PARAGRAPH 3	Are there any barriers to trade? If there are, why do they exist?
CONCLUSION	Sum up your country's international trading partnerships in two sentences. Write 200-250 words

Module 3 Business Correspondence

Reading 1: Business letters

A. Study the following example of a business letter.

Letterhead or Heading	Compuvision Ltd Warwick House Warwick Street Forest Hill London SE23 1JF UK
Reference (File Number)	Your ref. 6 May 20__ Your ref. DS/MR
Date	11 May 20___
Inside Address	Messers Pooles&Jackson Ltd Bredgrade 51 DK1260 Copenhagen K Denmark
Attention line	Attn Ms Kaasen (Private and Confidential)
Salutation	Dear Ms Kaasen
Subject Line	Non-payment of invoice 322/17
Body of the letter	It appears from our records that, despite several reminders, the above invoice remains unpaid. Unless the account is cleared within 14 days from the date of this letter, we shall take legal action.
Complimentary close	Yours sincerely.
Signature	Mary Rayner
Per pro	p.p. Donald Sampson
Job Title	Sales Manager
Enclosure (Added information)	Enc.
Copies	c.c. Messers Pooles & Jackson, Solisitors
PS

B. Read the text.

Being able to write a business letter is a skill that is easily learned. It is effective in establishing communication between business associates in a professional manner in many circumstances. A business letter represents you and your employer. So it doesn’t matter whether it comes from you or your administrative staff, it should be professionally written.

Heading includes the company’s logo, name, address and other contact and identifying information. If the company doesn’t have a letterhead, the company’s name and address can be written at the top of the page.

Sender Address is usually included in the letterhead. Only the street address, city and zip code are written. The date line indicates when the letter was written.

Inside Address is the recipient’s address. Write a title such as Mr., Ms, Dr. The inside address should begin on line below the sender’s address or a little below the date. It should be left –handed

A salutation is your greeting. Most of the salutations begin with “Dear” followed by recipient’s name. If you don’t know the person’s name, you can use Dear Madam/Sir or the job title. If you don’t know the reader’s gender, you can use a nonsexist greeting like “to whom it may concern”.

Body of the letter: The first paragraph should always include why you are writing. Then you should explain the situation, suggestion or whatever message you aim at getting across the recipient. If you begin a new subject, write a new paragraph. The other paragraphs include the reasons.

Complimentary closing: You should end the letter with an appropriate closing like “Sincerely”, “Best Regards”, “Respectfully yours”. It should be short and polite.

Signature: You should write your full or business name below the close. Between your name and enclosure part, you should hand write your signature in ink.

C. Put the parts of the letter into correct order and name them.

1	20 May 20-
2	HALL &CO. LIMITED BUILDERS' MERCHANTS Albert Road Peterborough PE2 7EK Теl: 01733 564231 Fax: 01733 341865 Email: mlongley@hallbuild.co.uk
3	Dear Mr Freeland
4	Mike Longley Sales Manager Hall & Co. Ltd
5	Yours sincerely
6	Enc.
7	Mr M. Freeland 57 Coniston Crescent Dunstable Bedfordshire LU14 3RW
8	We note that you have made a planning application to extend your property, and I am writing to tell you about the building products and services which Hall & Co. provide. Our products start at the foundations with sand, cement, and bricks and we supply a full range of timber and plasterboard at unbeatable prices. We also offer a FREE ESTIMATING SERVICE with orders over £50.00. We feel sure you will find a lot to interest you in the enclosed brochure and look forward to …

D. Write a business letter to a potential new customer of your company requesting information about some products they sell.

Reading 2: Types of business documents

A company uses documents to communicate, transact business and analyze its productivity. Since documents provide proof of an organization’s dealings and may be referred to for years to come, it is important that they be well written. Business documents range from brief email messages to complex legal agreements. Some documents are prepared by employees and business owners, while others are drafted by professionals from outside of the company, such as accountants and lawyers.