English for businessДЕЛОВОЙ АНГЛИЙСКИЙ ЯЗЫКДомодедово 200881.2 Англ. ББК802.0(075.8) УДКБ43Business English. Деловой английский язык: электронная версия учебного пособия по изучению делового английского языка для студентов гуманитарных ВУЗов и тех, кто изучает актуальные аспекты экономики, управления, менеджмента и предпринимательства на современном этапе. – Домодедово, 2008. – 105 с. ^ Автор - составитель: к.п.н., доц. Белова Н.М., зав. кафедрой иностранных языков Филиала Российского государственного гуманитарного университета (РГГУ) в г. ДомодедовоРецензенты: к.фил.н., доц. Е.В. Талыбина, доцент филологического факультета Российский университет дружбы народов (РУДН)доц. И.И. Павловец, акад. Международной академии астронавтики, зав. кафедрой иностранных языков и литературы Московского авиационного института (государственного технического ун-та) к.и.н., проф. В.П. Ермаков, декан факультета государственной службы и управления Пятигорского государственного лингвистического университета (ПГЛУ)© Филиал Российского государственного гуманитарного университета в г. Домодедово© Н.М. БеловаСОДЕРЖАНИЕПояснительная записка…………………………………….……………4 Unit I. The Nature of Business Activity...................................................5Unit II. Types of Production……………….………..............................14Unit III. Wants and Economies…………………….………….............22Unit IV. The Management of Business and the Types of Business Organisations………………………………………………....................28Unit V. Enterpreneurship………………………………………...........45Unit VI. Definitions of Small Business.................................................54Unit VII. Partnership……………..........................................................68Supplementary Texts……………………….............................................74Glossary…………....................................................................................96Abbrivations……………..……................................................................98Список рекомендованной литературы…….…...................................104^ Пояснительная запискаДанное пособие по английскому языку предназначено для студентов экономических специальностей, изучающих деловой английский язык. Оно может использоваться руководителями фирм и предприятий для самостоятельного изучения делового английского языка, а также всеми, кто интересуется вопросами экономики, управления, менеджмента, предпринимательства. Цель его – научить студентов чтению, пониманию оригинальных текстов, взятых из английских, американских книг, журналов, газет, адаптированных к российской действительности, умению извлекать из печатных источников информацию, необходимую для их будущей специальности, помочь всем желающим овладеть лексикой и практически использовать ее в деловых ситуациях, в процессе разговора и делового общения в рамках изучаемой дисциплины. Учебное пособие состоит из разделов (I-VII UNITS) и построено по тематическому принципу. Собранные в разделах (I-VII UNITS) тексты для чтения охватывают все сферы современной деловой жизни и ведения бизнеса, информативны и обладают достаточной объяснительной способностью. Каждый раздел имеет вокабуляр, систему коммуникативных упражнений к текстам, контролирующие грамматические, лексические и языковые навыки и умения, помогающие развивать речевые навыки профессионального общения. Приложение содержит тексты для дополнительного чтения, которые носят обучающий и познавательный характер, а также способствуют формированию финансового менталитета обучаемых (Financial Intelligence Quotient), что немаловажно в современных рыночных условиях; содержит бизнес глоссарий (разъяснения), аббревеатуры (сокращения), что может оказаться полезным для понимания тестов и заданий и обеспечит высокую степень усвоения и активизации материала, хороший уровень устных навыков и создаст прочную базу для дальнейшего углубленного изучения английского языка. UNIT I^ THE NATURE OF BUSINESS ACTIVITYWhat is business activity?Human life is an endless succession of "wants". From the day of our ruin to the day of our death we "want" things. The new-born baby wants to be sashed, fed every few hours, kept warm and sheltered, etc. Everyone needs warmth, food, clothing, shelter and medical care. These are just the basic - requirements to keep us alive and well. There are millions more things we all "want" which, while they are not essential, are part of the way of life we have born into. How do all these things that we want, both goods and services, become available? The answer is - by business activity. It is business that produces the food, clothing, shelter, furniture, etc., that we all need. It supplies us with all our means of transport, from the simple bicycle to the airliner. It provides all our entertainment, from children's comics to the television programmes. Business activity may be defined as any activity that creates goods or services to satisfy human "wants". Business activity is sometimes described as "wealth-creating" activity. The "wealth" we are talking about is an abundance of goods and services. When cars led off the production line every thirty seconds, or batches of bread come piping hot and golden brown from the ovens of some huge bakery - that is wealth. All nations have to overcome problems of transport, distribution, warehousing and marketing to bring the goods that have been produced to the consumers who "want" them. When we think of services it is often the other way round. We have to move the people to the services. We need ambulances to take them to hospital, air or road transport to get them to the dentist, or to college or university, etc. Finally, note that business activity never ceases. We engage in business activity so that we can satisfy human "wants". When we do satisfy these "wants" the very act of satisfaction consumes the useful good or service created and we must start again to supply a further batch. Economists say that “consumption” destroys production, and we must go back to the beginning again and start another cycle of production. It goes from "wants" through "enterprise", "production", "distribution" and "marketing" to "consumption and satisfaction", and back to "wants" again, as consumption destroys production.Vocabularybusiness activity – производственная деятельностьbasic requirements – основные требованияessential – основные, основнойto supply with – обеспечивать чем-либоmeans of transport – средства передвиженияentertainment – развлечения goods – товары services – услуги to satisfy «wants» - удовлетворять требованияsatisfaction – удовлетворение to create – создавать wealth – достаток, богатствоabundance – изобилие production line – конвейер distribution – распределение warehouse – хранилище, складto consume – потреблять consumer – потребитель consumption – потребление enterprise – предприятие production – производство ^ 1.1 Find Russian translations of the following words and phrases of the text:I) endless succession;2) shelter;3) food;4) clothing;5) to provide;6) to define;7) to roll off;8) bakery;9) injection;10) to overcome problems;11) the other way round.^ 1.2 Find Russian equivalents to the following words and phrases of the text: 1) удовлетворять потребности; 2) товары; 3) основные требования; 4) создавать; 5) распределение; 6) потребитель; 7) обеспечивать чем-либо;8) потребление и удовлетворение.^ 1.3. True or false statements. After reading the text agree or disagree with the following statements:1. Warmth, food, clothing and shelter are not the basic requirements to keep us active and well.2. All the things we want become available by business activity.3. There are no problems of transport in business activity.4. We engage in business activity so that we can satisfy human "wants".5. Consumption destroys and creates production.^ 1.4. Fill the gaps in the text with the words given below:Business activity, production, activity, consumption, satisfy "wants", creates,abundance.1. Business is a wealth-creating ....2. Wealth means an ... of goods and services.3. Business activity ... goods and services to ...4. ... is the using and enjoying of goods and services.5. Consumption destroys ..., and we have to start a new circle of... .^ 1.5.Translate the sentences from Russian into English using the Vocabulary of the text: 1. Богатство не означает только деньги; оно означает изобилие товаров и услуг. 2. Производство - это деятельность, создающая достаток. 3. Производственная деятельность создает товары и услуги, чтобы удовлетворять человеческие потребности. 4. Мы хотим товары и услуги с момента нашего рождения до дня нашей смерти.5. Всем нациям приходится преодолевать трудности транспортировки, распределения, хранения и маркетинга, чтобы доставить товары, которые были произведены, потребителям, которые хотят их.Land Land is anything that has been provided by nature as an endowment of resources, which is available for use. The most obvious type of "land" is geographical land. We use it for farming, forestry, factories and housing estates. We tunnel into it to extract metallic ores, chemicals of various sorts, oil, coal, water, sulphur, salt and countless other products We domesticate wild plants and set up rubber plantations, sugar plantations, etc. Another kind of'land' is the waters of the sea fend the fruits of the sea. We no longer go whaling, but we still fish; we collect lobsters, we harvest seaweed for fertilisers; we trap sea water in shallow lagoons to make salt; we are beginning to mine the oceans for metallic ores; we trap tides to generate electricity and we are working to use wave power as an inexhaustible power supply. Yet other kinds of "land" are the gases of the atmosphere. We can obtain them all by refrigeration processes which separate them off, because they turn to liquids at different temperatures. Oxygen is useful, so are carbon dioxide, nitrogen and the inert gases, helium, neon, argon, etc. All these resources known by the general term 'land' are gifts of nature. They are called primary products (first products) because they have been here from the very beginning of time. If an entrepreneur is a primary producer it means he/she harvests the bounties of nature. Thus fishing, drilling for oil and natural gas, farming, forestry, dairy farming, poultry keeping, rubber planting and similar activities are all primary production.Vocabularyentrepreneur – предприниматель to combine – соединять, совмещать factors of production – факторы производстваto be available for use – быть пригодным к употреблениюfarming – фермерство forestry – лесное хозяйствоto extract – добывать metallic ores – железная рудаoil – нефть coal – уголь to domesticate – культивировать to go whaling – охотится на китовto harvest seaweed – собирать урожай морских растенийfertilisers - удобренияto generate electricity – вырабатывать электроэнергиюinexhaustible power supply – неистощимый источник энергииto separate something off – отделять чего-либоto turn to liquids – превращаться в жидкостиgifts of nature – дары природы primary products – первичные продуктыto harvest the bounties of nature – пожинать дары природыdairy farming – молочное животноводствоprimary production – первичное производство^ 1.6. Find English equivalents to the following words and phrases of the text: 1) лесное хозяйство; 2) нефть; 3) окультуривать; 4) удобрения; 5) предпринимать; 6) факторы производства; 7) вырабатывать электричество;8) прилив.^ 1.7. Find Russian translations of the following words and phrases of the text:1) to harvest seaweed;2) shallow lagoons;3) to mine the ocean;4) refrigeration;5) to obtain;6) to set up;7) oxygen;8) poultry keeping;9) dairy fanning;^ 1.8. True or false statements. After reading the text agree or disagree with the following statements:1. The factors of production are two things - land and capital.2. Land is anything that has been provided by nature.3. The only type of "land" is geographical land.4. We harvest seaweed to generate electricity.5. All the resources known as "land" are gifts of nature.^ 1.9. Rewrite the following sentences in Passive Voice:1. We call land, labour and capital the factors of production.2. We use geographical land for farming, forestry, etc.3. We harvest seaweed for fertilizers.4. We can obtain the gases of the atmosphere by refrigeration processes.5. We know all these resources by the general term "land".^ 1.10. Fill the gaps in the text with the words given below:Liquids, domesticate, farming, labour, land, capital, gifts of nature.1. We use land for....2. We ... wild plants.3. ... are called the factors of production..4. All resources known by the general term 'land' are....5. The gases of the atmosphere turn to ... at different temperature.Labour and capital Labour Labour is the human factor of production. It has been said that we need not worry when a new "mouth" is born into the world, for it brings two hands to work for it. There are 5,000 million people in the world, most of them having some degree of skill and many of them so gifted that there is no work they cannot perform. We have bridged the mightiest rivers, made the waves and the air our servants for transport purposes, set satellites m space and sent probes to distant planets. We also make a lot of clothes, grow a lot of food, build a lot of houses, make innumerable furnishings, etc. We are cleaner than our ancestors, richer than our ancestors, healthier than our ancestors - yet even so there is a lot still to do. When the entrepreneur sets out to create goods and services he/she looks for help from other people.Capital Capital is the third resource. It is a much-misunderstood word. Many people think of capital as money, but it is nothing of the sort Capital is the stock of tools and equipment that one period of production hands on to the next period, to enable production to take place. In business, money is called liquid capital. It is liquid because it can flow anywhere. We can give it to a bridge-builder to make a bridge, or a cement manufacturer to build a cement works, or to a local authority to set up a school. As they spend the liquid capital it turns into fixed capital, a bridge, a cement works or a school. Once you've fixed it you can't unfix it again for a hundred years or so when the bridge finally collapses, or the cement works is worn out, or the school is too old and inconvenient for further use. human factor to perform work ancestorsVocabularyhuman factor – человеческий факторto perfom work – исполнять работуancestors – предшественники to look for – искать nothing of the sort – ничего подобногоa stock of the tools and equipment – запасы/фонд/парк инструментов и оборудованияto hand on – передавать to enable smb to do smth – дать возможность кому-либо сделать что-либоto set up – образовать fixed capital – основной капиталto collapse – разрушаться a mine – шахта ^ 1.11. Find Russian translations of the following words and phrases of the text:1) to misunderstand;2) to hand on;3) stock of tools and equipment;4) fixed capital;5) to perform work;6) a cement manufacturer;7) to blow;8) a cement works.^ 1.12. Find English equivalents to the following words and phrases of the text: 1) оборотный капитал; 2) основной капитал; 3) разрушиться; 4) шахта; 5) передавать; 6) ничего подобного; 7) не правильно понимать; 8) парк инструментов и оборудования; 9) человеческий фактор.^ 1.13. True or false statements. After reading the text agree or disagree with the following statements:1) Labour is not included into production.2) Every new 'mouth' born into the world brings two hands to work for it.3) There are 4 resources of production.4) Many people think of capital as money, but it is nothing of the sort.5) Capital if the stock of tools and equipment.6) Spent liquid capital is fixed capital.^ 1.14. Fill the gaps in the text with the words given below:Look for, hand on, ancestors, factors of production, liquid capital.1) We are cleaner and richer then our.....2) When an entrepreneur sets out to create goods and services he/she ... help from other people.3) Capital is the stock of tools and equipment that one period of production ... to the next period.4) In business money is called....5) To create wealth entrepreneurs have to combine three....^ 1.15. Translate the sentences from Russian into English using the Vocabulary of the text: 1) Труд - это человеческий фактор производства. 2) Нет такой работы, которую не могли бы исполнить. 3) Многие люди считают деньги капиталом. 4) В бизнесе деньги называются оборотным капиталом.5) Предприниматели объединяют три фактора - землю, труд и капиталShort Revision and Self-Control of the Main Statements of the First Unit.^ 1.16. Close the right-hand side of the page with a sheet of paper and move it downwards answering the questions and checking yourself: Questions Answers 1 . Why is it necessary to study business? Because business is the only activity that creates wealth or abundance of goods and services 2. What is the universal condition of every baby born into the world? It is the state of want. It has no food, clothes of shelter 3 . What are the basic wants of mankind? Food, water, clothes, shelter, medical care and geographical territory 4. Why is business activity endless? Because consumption of wealth created destroys production and we must start a new cycle of production 5. What is land? Any resource made available as a gift of nature 6. What is labour? The human resource: muscle power, skills and ideas 7. What is capital? The wealth of assets created in one time period for use in the next time period UNIT II^ TYPES OF PRODUCTIONWe classify production activities into three divisions - primary, secondary and tertiary production.Primary production Primary production is the production of goods made available by nature, either in the distant past as part of the Earth's development or year by year, as the cycles of nature proceed. Thus, iron ore, tin, copper and other elements are natural resources, which we cannot renew - we can discover them and use them, but as we do so we exhaust the supplies. They are non-renewable primary products. By contrast, timber, fish. Wheat and barley are natural products.^ Secondary production Secondary production is the production of goods, which are an improvement upon natural products. Thus, a chair is more convenient to sit on than a tree trunk. By years of scientific and practical study we have found how to change natural products into sophisticated secondary goods. In doing so we add value to the product.^ Tertiary production Tertiary production is the production of services, not goods. There are two kinds of services - commercial services and personal services. Commercial services are services connected with the distribution and exchange of goods. They include four branches of trade - wholesale trade, retail trade, import trade and export trade. Personal services are services unconnected with goods. They include medical care, hairdressing, education and similar activities which are provided directly to the individual concerned, and result in an improved standard of living for all those who can benefit by the services rendered.Vocabularyproduction activities – производственная деятельностьchief objectives – основные целиprimary – первичный secondary – вторичный tertiary – третичный distant – далёкий to renew – возобновляться to discover – открыть, обнаружить to exaust – истощать non-renewable – невозобновляемый scientific and practical study – научное и практическое изучениеsophisticated – утончённый, изысканныйto add – добавлять value – ценность exchange – обмен wholesale trade – оптовая торговля retail trade – розничная торговля^ 2.1. Find Russian translations of the following words and phrases of the text:Non-renewable, to exhaust, wholesale trade, sophisticated, practical study, to renew, chief objectives, value.2.2. Find English equivalents to the following words and phrases of the text: Обмен, добавлять, обнаруживать, вторичный, основные цели, производственная деятельность, ценность, невозобновляемые, истощать.^ 2.3. True or false statements. After reading the text agree or disagree with the following statements:1) There are two divisions of production activities.2) Natural resources can be renewed.3) We cannot exhaust the supplies of iron ore, tin, copper and other elements.4) We can change natural products into sophisticated secondary goods.5) There are many kinds of services.6) Services connected with the distribution and a change of goods are commercial services.^ 2.4. Fill the gaps in the text with the words given below:Renew, secondary production, commercial services, add, retail, production activities.1) We usually classify ... into three divisions.2) We cannot... natural resources.3) ... is the production of goods which are an improvement upon natural product.4) ... are services connected with exchange of goods. 5) Changing natural products we ... value to them.6) ...-trade is one of the four branches of trade.^ 2.5. Translate the text from Russian into English using the Vocabulary of the text:Существуют три вида производства - первичное, вторичное и третичное. Природа даёт нам первичный продукт. Это нефть, железная руда, материалы. Мы создаём вторичные продукты, обрабатывая первичные. Таким образом, мы добавляем им ценность. Третичное производство - это услуги, а не товары. Есть два вида услуг - коммерческие и личные.^ Public and privite sector of productionPrivate sector activity Much of the business activity is provided by private firms and companies. They may be tiny businesses run by sole traders, who are in business on their own as bakers, grocers, carpenters, etc. They may be partnerships, with two or three partners co-operating together to run workshops, factories, garages, medical centres, etc. They may be huge companies with hundreds or thousands of employees. The private sector of business activity is sometimes called the enterprise sector. Private enterprise is perhaps the natural way for business activity to start and develop. It is the combination of land, labour and capital that is the basis of any productive activity and it is the resulting output of goods and services which is the real wealth of the world, which its citizens can enjoy.^ Public sector activity There are certain things, which we cannot leave to private enterprise. Many people believe strongly in nationalization, particularly of industries, which are natural monopolies, like the railways, the electricity industry, gas and water supply. It is true that in recent years some 'privatization' of public enterprises has taken place, but not all public sector activities are suitable for returning to private hands, and we are always likely to have some public sector institutions.Vocabularyprivate sector – частный секторto be provided by – быть обеспечиваемымto run a business – заниматься бизнесомto be on one's own – быть самостоятельнымsole trader – самостоятельный, единоличный торговецpartnership – партнёрство private enterprise – частное предприятиеenterprise sector – предпринимательский секторto start up a business – начать дело output – продукция, выпускpublic sector – общественный (государственный) секторwater supply – водоснабжение to be suitable for – быть пригодным для^ 2.6. Find Russian translations of the following words and phrases of the text:To be on one's own, enterprise sector, to run a business, private sector, to be provided by, water supply, partnership, to co-operate together.2.7. Find English equivalents to the following words and phrases of the text: Частное предприятие, самостоятельный торговец, быть обеспечиваемым, начать дело, продукция, государственный сектор.^ 2.8. True or false statements. After reading the text agree or disagree with the following statements:1. Sole traders usually run huge businesses.2. Workshops and garages are run by big companies.3. Private sector of business activity is called the enterprise sector.4. Armies and police forces must be private.5. All public sector activities are suitable for returning to private hands.6. In recent years some "privatization" of public enterprises has taken place.^ 2.9. Fill the gaps in the text with the words given below:Private enterprise, started up, are suitable, is provided by, partnerships.1. Much of the business activity ... private firms and companies.2. These companies may be ... with two or three partners.3. ... is the natural way for business activity.4. A business can be ... on a geographical spot.5. Not all public enterprises ... for 'privatization1.^ 2.10. Translate the sentences from Russian into English using the Vocabulary of the text: 1. Частные фирмы и компании обеспечивают производственную деятельность. 2. Они могут состоять из одного торговца, нескольких партнёров или быть огромными компаниями. 3. В больших компаниях сотни и тысячи рабочих. 4. Основой любой производственной деятельности является комбинация земли, труд и капитала. 5. Есть вещи, которые нельзя оставлять частному Предпринимателю: например, армия или полиция.^ Economic Goods and ServicesPeople begin to learn about economics when they are still very young. Even before they start school, they make two very important economic discoveries. They find that there are lots of things in the world they want. They also find that they cannot have them all. There is a big gap between what they want and what they can have. Later, young people learn another lesson. When they watch television commercials, they discover that there are thousands of tilings they or their parents could buy. Gradually, they settle into two major economic roles: consumer and producer. In the role of consumer, a person buys goods and services for personal use, not for resale. Consumer goods are products, such as food, clothing, and cars, that satisfy people's economic needs or wants. Some consumer goods, such as food, do not last a long time. Other goods, such as cars or VCRs, last longer. Sooner or later, though, consumer goods are used up. Bananas are a typical example of perishable goods, by "perishable" we mean goods which cannot be stored for any length of time without going bad. Most foodstuffs are in the perishable category. Services are actions, such as haircutting, cleaning or teaching. Services are used up at the time they are provided. A producer makes the goods or provides the services that consumers use. A person who makes lemonade and then sells it is producing goods. A person who shovels snow during the winter or clerks in a store is providing a service. Students working after school or during the summer earn money to buy some of the things they want -records, books, or a car. They are learning about the role of the producer. In order to produce something, however, a person must first have right resources. Resources are the materials from which goods and services are made. There are three kinds of resources: human (people), natural (raw matireals), and capital resources (capital, or the money or property). If either of these resources is missing, production will stop. The economy as a whole, like an individual, can produce only products for which it has the right kind of resources. No economy can produce the things people want if it doesn't have enough of the right kinds of resources. And no economy has an unlimited supply of resources. In other words, there is a scarcity of resources. Scarcity is the situation that exists when demand for a good, service, or resource is greater than supply. In economics, you will study how people use their resources, to make the goods and to provide the services they want. Economics is also the study of how people decide who will get the goods and the services produced. Human wants tend to be unlimited, but human, natural, and capital resources are, unfortunately, limited. The basic economic questions individuals and nations face are: What goods and services will be produced? How will they be produced? Who will get them? How much will be produced for now and how much for the future? The answers to the questions depend on a country's human, natural, and capital resources, and also on its customs and values. Each country will nswer these questions in a different way.Vocabularyallocate – распределять, ассигновать, отчислятьallowance – денежное пособие, денежная помощь, содержаниеchart – схема, таблица, карта, графикconsume – потреблять, расходоватьconsumer – потребитель, потребительскийdemand – спрос, требование, требовать, нуждатьсяdevelop – развивать, разрабатывать, создаватьearn – зарабатывать, получать доходto earn one's living (by smth) – зарабатывать (чем-либо) себе на жизньexpense – расход, тратаexpenses – расходы, издержкиgoods – товар, товары, изделияconsumer goods – потребительские товары, товары широкого потребленияperishable goods – скоропортящиеся товарыcapital goods – средства производства, товары производственного назначения, инвестиционные средства, основные средстваitem – товар, изделие, пункт, запись, статьяneed – надобность, нужда, нехваткаto meet needs – удовлетворять потребностиproduce – продукция, результатproduce – производить, вырабатыватьproducer – производитель provide – снабжать, обеспечивать, предоставлятьreduce – сокращать, уменьшать, снижатьincrease – увеличиваться, возрастатьrecord – запись, регистрация, учетrecord – записывать, регистрироватьsatisfy – удовлетворять, соответствоватьsatisfy wants – удовлетворять потребностиsatisfaction – удовлетворение serve – служить, обслуживатьservice – услуга, обслуживание, сфера деятельностиsettle – решать, договариваться, устраивать(ся).settle into smth. – принимать какую-либо форму, приобретать какое-либо качество, обосновать(ся)supply – поставка, снабжение, снабжать, предложение (товара)scarcity – нехватка, дефицит, дороговизна^ 2.11. Answer the questions:1. What do young people discover while watching television commercials?2. What economic roles do they settle into?3. What can be said to prove that wants and needs are satisfied through the consumption (use) of goods and services?4. How to distinguish between goods and services?5. What evidence suggests that human wants and needs ate infinite (unlimited) while our resources are finite (limited)?6. What is the major difference between the roles of a consumer and a producer?7. What are the categories in which consumer goods can be divided?8. In what way is scarcity related to different types of resources?9. What are the basic economic questions facing both nations and individuals?10.Is there a difference between how the government and how the customers answerbasic economic questions? 11. What is the basic service your educational institution provides you and yourcommunity with? 12.How does it answer each of the four basic economic questions?^ 2.12. Say whether these statesments are true or false, and if they are false say why.1. People get acquainted with economics when they are syill very young.2. People make important economic discoveries only when they are old.3. There is no gap between what people want and what they can have.4. People settle only into one role, the role of a consumer.5. In the role of a consumer a person makes the goods or provides the services.6. Consumer goods are products that satisfy people's economic needs or wants.7. All consumer goods last long.8. Most foodstuffs are in the perishable category.9. Students working after school or during the summer to earn money for buying some of the things they want are learning about the role of a producer.10.Outputs (goods and services) are produced from inputs (resources) sometimes called factors of production. These factors are land, labour and capital.Short Revision and Self- Control of the Main Statements of the Second Unit^ 2.13. Close the right-hand side of the page with a sheet of paper and move it downwards answering the questions and checking yourself: Questions Answers 1 . What are the three types of production? A) primary production; B) secondary production; C) tertiary production (services) 2. Explain these terms: A) primary production; В) secondary production; С) tertiary production (services) A) primary production is the production of goods made available by nature; B) secondary production is the production of improved natural goods; C) tertiary production is the production of services - commercial or personal 3. What are private sector activities? Activities carried on by sole traders, partnerships and limited companies 4. What are public sector activities? Activities carried out by nationalised industries UNIT III^ WANTS AND ECONOMIESWe create the wealth we need (an abundance of goods and services) by some system of production, distribution and exchange, which is called the "economy". There are three chief types of economy: free enterprise (or market) economies, centrally planned economies and mixed economies. The word "economy" comes from the Greek word "oikonomos" which means a "steward". The two parts of the Greek word are oikos, a house, and nomos, a manager. So when we study economies we are really studying how we manage our house. Since the government is usually viewed as being in charge of the economy we might say it is in charge of the 'household' of the country. Is it behaving like a good steward, and running everything in a proper manner, so that we can all lead comfortable, secure lives? Sometimes we can confidently reply 'Yes - we've never had it so good.' At other times we may not be quite so sure.Vocabularyto create – создавать free-enterprise economy – экономика свободного предпринимательстваmarket economy – рыночная экономикаcentrally-planned economy – экономика с центральным планированиемmixed economy – смешанная экономикаsteward – управляющий, распорядительto manage smth. – управлять чем-либоto be viewed – рассматриваться to be in charge – отвечать заhousehold – хозяйство to behave – вести себяsecure – надёжный, безопасныйconfidently – уверенно to be sure – быть увереннымto consider – рассмотреть ^ 3.1. Find Russian translations of the following words and phrases of the text:Mixed economy, household, steward, market economy, abundance, wealth, to be viewed, to consider.3.2 Find English equivalents to the following words and phrases of the text: Надёжный, уверенно, свободное предпринимательство, отвечать за, быть уверенным, управлять чем-либо.^ Market, planned and mixed economiesMarket economies These are free-enterprise economies, where the large majority of goods are made, and the large majority of services are provided, by the free enterprise of individuals, who step out of the crowd and start to organize production. In market economies people do not wait for the government to do things, they get on and do them themselves. Whatever they make, or grow or cut down (in the forests for example) they bring to market, so that those who want these items can come to the marketplace and buy them. A market is a place where buyers and sellers arc in contact with one another to fix prices.^ Planned economies Planned economies are economies where the means of production, distribution and exchange are socially ovmed, and centrally planned. Free enterprise is severely restricted, and even punished. The essential point about central planning is that it was intended to be a wa? of ensuring that everyone got fair shares of the goods that were produced. The unfortunate effect has been that too few goods have been produced, because planners can rarely get things right^ Mixed economies Actually no economy can be completely free without any central authority, and no centralized economy can control every spark of free enterprise. There must be some things, like the armed forces and the forces of law and order which are centrally run. In fact, mixed economies may be regarded as a middle way. They have the vast majority of goods and services being provided by free enterprise, but a wide range of other goods and services are socially provided. Thus defence, law and order, education, health and social security services are provided by the state and a number of major industries, particularly transport, energy production, atomic power, water supply, etc., are aationalized and socially owned.Vocabularyto step out – выступать изto be in contact – контактировать to fix prices – устанавливать ценыmeans of production – средства производстваto own – владеть severely – строго to restrict – ограничивать, запрещатьto punish – наказывать essential – основной to intend – намереваться to ensure – обеспечивать, гарантироватьcentral authorities – центральная властьcentralized economy – централизованная экономикаvast majority – подавляющее большинство wide range – широкий круг defence – оборона ^ 3.3. Find English equivalents to the following words and phrases of the text: Строго, намереваться, центральная власть, ограничивать, круг, оборона, устанавливать цены, владеть, средства производства.^ 3.4. Find Russian translations of the following words and phrases of text:To ensure, to be in contact, to fix prices, to own, essential, severely, rict, means of production, to intend, vast majority, defence.3.5 True or false statements. After reading the text agree or disagree with the following statements:1. In market economies goods are services are provided by the state.2. A market is a place where buyers and sellers fix prices.3. In planned economies means of production are owned by individuals.4. Free enterprise is restricted in planned economics.5. In planned economics all goods and services are provided by irifeviduals.^ 3.6. Fill the gaps in the text with the words given below:Fix prices, central authorities, planned economics, step out, means of production, mixedeconomies.1. Individuals ... of the crowd and start to organize production.2. ... are economics where the ... are socially owned.3. Buyers and sellers ... on the market.4. No economy can be completely free without any....5. ... may be regarded as a middle way.^ 3.7. Translate the text from Russian into English using the Vocabulary of the text: В рыночной экономике отдельные личности выступают из толпы и начинают организовывать производство. На рынке продавцы и покупатели вступают в контакт, чтобы устанавливать цены. В планируемой экономике свободное предпринимательство строго запрещено. В смешанной экономике подавляющее большинство товаров и услуг осуществляются свободными предпринимателями, но некоторые осуществляются государством.^ Money and economiesWhat part does money play in an economy? The answer is an enormous part. Money makes the world go round, particularly the free-enterprise world. Money represents control of goods and services. It is the medium of exchange, by which ownership of goods and the provision of services is obtained. We all need money if we are to buy a basket of goods and services for our daily needs. We must, therefore, continually obtain a supply of money. How do we get it? There are four chief ways. We get it as rent, interest, wages or profits. Rent is the reward to those who own land. Some people are lucky and own land, which they can rent out to others, or use to grow food. Interest is the reward paid to those who have capital (money savings) and can lend it out to those who need capital. Wages and salaries are the rewards to labour. Most of us have no land, and savings to earn enough interest to live on. What we do have is our health and strength and the ability to work. We therefore seek employment of one sort or another and in return are paid wages or salaries. Profits are the reward to enterprise. Who is it uses the land, the capital and the labour, and can afford to pay out the rent, interest and wages that the rest of us depend upon? It is the entrepreneurs - the enterprising people who set up firms and companies, or organize such official activities as the services provided by local authorities and central governments. They organize the provision of goods and services and if they are successful the profits made become their reward for the enterprise they have shown.Vocabularyenormous part – огромная частьto make smb do smth – заставить кого-либо сделать что-либоto go round – вертеться to represent – представлять particularly – особенно medium of exchange – средство обменаto obtain – получать daily needs – повседневные нуждыrent – рента interest – процент от вкладовprofit – доходы reward – вознаграждение to rent out to smb. – сдать в аренду кому-либоto lend – давать взаймыwages – зарплата savings – сбережения afford – позволить local authorities – местные власти^ 3.8 Find Russian translations of the following words and phrases of the text:To go round, to make smb do smth., rent, medium of exchange, ly, daily needs, wages, salary, to afford, profit.3.9. Find English equivalents to the following words and phrases of the text: Сбережения, процент от вкладов, представлять, местные власти, повседневные нужды, сдавать в аренду кому-либо, вознаграждение, получать, давать взаймы.^ 3.10. True or false statements. After reading the text agree or disagree with the following statements:1. Money plays a very small part in an economy.2. Money represents control of goods and services.3. We get a basket of goods and services for our daily needs as a gift frqp the government.4. People who own land give it to others people free.5. We sell our ability to work and get money for it.^ 3. 11. Fill the gaps in the text with the words given below:Daily needs, to obtain, wages and salaries, profit, makes, go round, reward.1. Money ... the world ....2. We all need money to by goods and services for our. . . .3. There are four chief ways . . . money.4. Rent is the ... to those who own land.5. ... and . . . are the rewards to labour.6. ... are the rewards to enterprise.^ PARTNERSHIPIn a Partnership, two or more people share ownership of a single business. Like proprietorships, the law does not distinguish between the business and its owners. The Partners should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, or what steps will be taken to dissolve the partnership when needed. Many partnerships split up at crisis times. They also must decide up front how much time and capital each will contribute, etc. Advantages of a Partnership 1. Partnerships are relatively easy to establish; however partners should develop the partnership agreement. 2. With more than one owner, the ability to raise funds may be increased. 3. The profits from the business flow directly through to the partners' personal tax returns. 4. Prospective employees may be attracted to the business if given the incentive to become a partner. 5. The business usually will benefit from partners who have complementary work skills. Disadvantages of a Partnership 1. Partners are jointly and individually liable for the actions of the other partners. 2. Profits must be shared with others. 3. Since decisions are shared, disagreements can occur. 4. The partnership may have a limited life; it may end upon the withdrawal or death of a partner. There exist different types of Partnerships: 1. General Partnership Partners divide responsibility for management and liability, as well as the shares of profit or loss according to their internal agreement. Equal shares are assumed unless there is a written agreement that states differently. 2. Limited Partnership and Partnership with limited liability "Limited" means that most of the partners have limited liability (to the extent of their investment) as well as limited management decisions, which generally encourages investors for short term projects, or for investing in capital assets. This form of ownership is not often used for operating retail or service businesses. Forming a limited partnership is more complex and formal than that of a general partnership. 3. Joint Venture Joint Venture acts like a general partnership, but it is formed for a limited period of time or a single project. If the partners in a joint venture repeat the activity, they will be recognized as a continuing partnership and distribute accumulated partnership assets upon dissolution of the entity. Main Features of a Partnership:(+) Easy to organize, but needs agreement(+) Partners receive all income(-) Partners have unlimited liability(-) Partners may disagree(-) Life of business may be limitedVocabularypartnership - товарищество, партнерство (некорпорированная фирма, которой владеют и которой управляют два лица или более)general partnership — компания с неограниченной ответственностьюlimited partnership - товарищество с ограниченной ответственностьюto distinguish - различать, проводить различиеto set forth — излагать, формулироватьlegal agreement - юридическое соглашениеcomplementary — добавочный, дополнительныйcapital assets - 1) основные фонды (машины, здания, сооружения, оборудование и т. п.); 2) оборотные средстваretail - розничная продажаto the extent of- до размера, в пределахshare - доля, часть; квота; акцияincentive - стимулwithdrawal — уходlimited liability - ограниченная ответственностьjoint venture — совместное предприятиеto dissolve the partnership — аннулировать, расторгать партнерствоdissolution of the entity - ликвидация экономического объектаAnswer the questions:1. What is a partnership?2. What are the limited partnership and general partnership?3. What are the advantages and disadvantages of partnership?4. What is a joint venture?CORPORATIONA corporation is chartered by the state in which it has headquarters. It is considered by law to be a unique entity, separate and apart from those who own it. A corporation can be taxed; it can be sued; it can enter into contractual agreements. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes. Advantages of a Corporation 1. Shareholders have limited liability for the corporation's debts or judgments against the corporations. 2. Generally, shareholders can only be held accountable for their investment in stock of the company. (Note however, that officers can be held personally liable for their actions, such as the failure to withhold and pay employment taxes.) 3. Corporations can raise additional funds through the sale of stock. Disadvantages of a Corporation 1. The process of incorporation requires more time and money than other forms of organization. 2. Corporations are monitored by federal, state and some local agencies, and as a result may have more paperwork to comply with regulations. 3. Incorporating may result in higher overall taxes. Dividends paid to shareholders are not deductible form business income, thus this income can be taxed twice. Main features a Corporation: (+) Shareholders have limited liability (+) Can raise funds through sale of stock (+) Life of business is unlimited (continuity of life) (-) To incorporate a firm takes time and money (-) May result in higher overall taxesVocabularyincorporation — 1) объединение, корпорация; 2) регистрация корпораций unique – уникальный entity – организация headquaters – главное правление (фирмы) to be sued – преследоваться в судебном порядке shareholders – акционеры, пайщики, владельцы акций stock – акции contractual agreement – контракт, договорboard of directors – правление директоров (акционерного общества), совет директоровto oversee – наблюдать, следить to be held liable – нести ответственность to be accountable – нести ответственность employment taxes – налог на фонд заработной платыcontinuity of life – непрерывность существованияoverall taxes – суммарные нало