Basic Business English za studente Visoke poslovne škole, Skripte od Socijаlizаcijа

Preuzmite Basic Business English za studente Visoke poslovne škole i više Skripte u PDF od Socijаlizаcijа samo na Docsity! VISOKA POSLOVNA ŠKOLA STRUKOVNIH STUDIJA ,,ČAČAK’’ BASIC BUSINESS ENGLISH Jasmina Radonjić BEOGRAD, 2016 PREDGOVOR 5 PREDGOVOR Skripta BASIC BUSINESS ENGLISH namenjena je studentima Visoke poslovne škole strukovnih studija ,,Čačak’’. Rad sa studentima pomenute škole, kao i nastavno iskustvo autora uticali su na koncepciju skripte i njenu realizaciju. Cilj je da se studenti upoznaju sa stručnim tekstovima i poslovnom terminologijom iz oblasti koje izučavaju. Skripta se sastoji od dvadeset lekcija koje obrađuju razne oblasti (proizvodnja, menadžment, poslovne finansije, reklamiranje, bankarski sistem i dr.), prilagođenih vežbi za obradu gramatičkih jedinica, kao i vežbi za samostalni rad. Savladavanjem ovih tekstova i vežbi studenti mogu da prošire fond reči kojim raspolažu, naročito termina koji im omogućavaju snalaženje u poslovnoj komunikaciji. Skripta je pisana sa željom da studenti lakše usvoje gradivo predviđeno planom i programom VPŠ ,,Čačak’’, ali može biti od koristi i svima koji se bave poslovnom ekonomijom i preduzetništvom. U Beogradu, oktobra 2016. Autor Key expressions: The reason I'm phoning is... Can I help you…? Who's calling, please...? I'll put you through.... Can you hold the line...? Let me know if you have any problems... Give me a ring... Sorry, I've dialled the wrong number... The line is engaged... Could you spell that...? UNIT 1 BUSINESS COMMUNICATION 9 Conversation 1 Dan: Good morning. I'd like to talk to Mr. Patrick Brown, please. Secretary: Good morning. I'm sorry but Mr. Patrick Brown isn't available at the moment. Would you like to leave him a message? Dan: Tell him that Mr. Thompson needs to contact him. Secretary: Sure, I'll let him know. Does he have your phone number? Dan: Yes, he has it. Thank you. Secretary: You're welcome. Anything else? Dan: No, that's all. Goodbye. Secretary: Goodbye, Mr. Thompson. Conversation 2 Sue: Tax department. Alan: Good morning. This is Alan Smith. Is that Sue Chalmers? Sue: Yes, it is. How are you, Alan? Alan: Fine, thanks. What's the weather like in England? Sue: It's wonderful. So, how can I help you, Alan? Alan: Well, I'm calling about your visit next week. Meetings Every business, regardless of its size (whether it has 2 employees or 2,000), has meetings as a regular part of getting things done. Although employees can communicate with one another in an organization in many different ways, business meetings - if they are conducted the right way - can be incredibly effective and efficient. Key expressions: Good morning/afternoon, everyone... If we are all here, let's get started... It's a pleasure to welcome... We're here today to... Our aim is to... By the end of this meeting, I'd like to... Here are the minutes from our last meeting... Right, it looks as though we've covered the main items... 10 BUSINESS COMMUNICATION UNIT 1 Conversation 1 Chairman: If we are all here, let's get started. First of all, I'd like you to join me in welcoming Jack Peterson, our Vice President. Jack Peterson: Thank you for having me, I'm looking forward to today's meeting. Chairman: I'd also like to introduce Margaret Simmons who has recently joined our team. Margaret Simmons: May I also introduce my assistant, Bob Hemp. Chairman: Welcome Bob. I'm afraid our national sales director, Anne Trusting, can't be with us today. Let's get started. An interview for a job An interview provides the hiring manager a perfect opportunity to identify the applicant best qualified and best suited for the organization. Conducted properly, it is a valuable tool in the hiring process. As an applicant, in order to do well, you must have current knowledge about the position, study the employer, and anticipate difficult questions. Conversation 1 Secretary: Good morning. Can I help you? Applicant: May I see Ms. Phillips? Secretary: Do you have an appointment? Applicant: Yes, for eleven o'clock. Secretary: Ah, yes. Would you come this way, please? Ms. Phillips, Mrs. Stevens is here to see you. Interviewer: Hello, Mrs. Stevens. My name is Jane Phillips. I’m the personnel director. Applicant: Pleased to meet you. Interviewer: According to your resume, you have several years of office experience. UNIT 1 BUSINESS COMMUNICATION 11 Applicant: What are the office hours, Mrs. Phillips? Interviewer: 8:30 to 4:30, with an hour off for lunch. What are your salary expectations, Mrs. Stevens? Applicant: I expect to be paid the going rate for this type of position. Can you tell me about the benefits you offer? Interviewer: Yes. We provide full medical and dental coverage, a pension plan, and a three- week holiday per year. Applicant: That’s very generous. When is the position available? Interviewer: We’re hoping the successful applicant can start at the beginning of next month. We’ll finish our interviews tomorrow and make a decision by the weekend. We’ll contact you next week. Applicant: Thank you very much. It’s been a pleasure meeting you. I hope to hear from you soon. Interviewer: Thank you for coming in to see us, Mrs. Stevens. Written communication Written communication has great significance in today’s business world. It is an innovative activity of the mind. Effective written communication is essential for preparing worthy promotional materials for business development. Speech came before writing. However, writing is more unique and formal than speech. Effective writing involves careful choice of words, their organization in correct order in sentences formation as well as cohesive composition of sentences. Also, writing is more valid and reliable than speech. But while speech is spontaneous, writing causes delay and takes time as feedback is not immediate. Business letters Second to grammatical correctness, achieving an appropriate business style may be the biggest problem to writers of business letters. Business letters vary in tone from familiar to formal, or less formal, but they all should sound natural. While striving for a natural tone, you should aim for a positive outlook. You should remember to remain courteous and tactful, even when the subject of a letter is unpleasant. A simple 'please' and 'thank you' is enough to make your letter courteous. Your style is also very important. A good business letter must be well organized. Everything should be planned in advance, but you should resist the temptation to say too much. A business letter should be clearly thought out, and clearly organized on a paper. Such a letter leaves the impression that the company is efficient and responsible. The sender is a person or group that sends the letter to a person or a group known in business as the recipient. 12 BUSINESS COMMUNICATION UNIT 1 Parts of a Letter Any letter has some parts that are to be present no matter how long or short the letter is. They are the following: •Heading - letter heading / letter head •Date •The inside address (addressee's address) •Salutation •Body of the letter •Complimentary close •Signature •Enclosures The heading - includes letterhead that contains the name and address of company, your city, state, your phone number, and field of activity. Date - should be written in one of the following ways: 15 January 2008 (begin with the day, no comma) or December 1, 2008 (begin with the month; use a comma). The second one is the American variant. But to avoid any confusion, the date is to be written keeping the following order: Day/Month/Year, while the month is typed in full. Example: 23 April 2008. The inside address (Contact Information) - is in fact the addressee's address. It contains the full name of the person, institution, street, town, country, if it is the case. The name is accompanied by Mr., Mrs., Ms. (when you don’t know marital status), Prof., Dr. and function is sometimes placed. Example: General Manager Robert Smith. Salutation - or greeting are written under the inner address and depend on who the persons you are addressing to are. Use Ms for women and Mr for men. Use Mrs only if you are sure that a woman is married. When you don't know the name of a person and cannot find this information you may write 'To Whom It May Concern'. It is standard to use comma after the salutation, but it is not obligatory. Examples: Dear Mr Phillips (you should use only surname, not first name), Dear Editor- in-Chief, Dear Sirs, Dear Sir or Madam (formal), Dear Publisher... Body of a letter - should contain the main message. In the first sentence use a friendly greeting like: It was a pleasure to meet you last month...Than you should state the main point of your letter in few sentences like: I am writing to provide..., or I'm interested in the job opening...And finally here are some common phrases used when closing a letter: Thank you in advance for..., I look forward to..., I would gladly answer..., If you have any concerns... Complementary close - The last part of a letter is the complementary close which is a matter of custom and polite way of closing a letter. Respectfully yours, Kind regards, Yours truly, Most sincerely, Respectfully, Respectfully yours, Sincerely yours... Signature - After leaving 4/5 blank lines for a signature, the name of the sender should be shown. It's made up of handwritten signature (if sent by mail), the typed name used in signature, and the person's title. Enclosures - If you have enclosed any documents along with the letter, such as a resume, you indicate this simply by typing Enclosures one line below the closing. When writing business letters, you must pay special attention to the format and font used. Block format is the most common format used today. With this format nothing is centred. The sender's address, the recipient's address, the date and all new paragraphs begin at the left margin. Another important factor in the readability of a letter is the font. The generally accepted font is Times New Roman, size 12, although other fonts such as Arial may be used. UNIT 1 BUSINESS COMMUNICATION 13 Sample Business Letters Enquiry Any commercial transaction begins with an enquiry, so this is an example how to ask somebody to send you information. Best hardware Ltd 54 Oxford Road, SouthamptonSK3 4RG Tel: 0223 123 4567 Email: info@bhardware.co.uk 4 November 2016 Galactic Ltd 69 Milk Street London SW7 6AW Dear Sir/Madam, I have a large hardware store in Southampton and am interested in the electric heaters you are now advertising in the "West Gazette ". Please send me your illustrated catalogue and a price list. I would also like to know if it is possible to make purchases online. I look forward to hearing from you. Yours faithfully, Andrea Philips Andrea Philips Marketing Manager 16 BUSINESS COMMUNICATION UNIT 1 Letter of application A letter of application is a letter that ’sells ‘yourself. A letter of application should create enough interest to make the potential employer intrigued to look at your application in greater detail by reading your CV and hopefully invite you for an interview. 23 Oxford Street London ER 34 8 April 2008 Mr. Bob Smith Personnel Manager Leyland& Bailey Southampton 23EF Dear Mr. Smith, I was interested to see your advertisement in today’s Daily Telegraph, and I would like to be considered for the job. In my present job of the General Manager's PA at a manufacturing factory, I have a wide range of responsibilities. These include attending and taking minutes of meetings and interviews, dealing with callers and correspondence in my employer’s absence, supervising junior staff, as well as the usual secretarial duties. The kind of work in which your company is engaged, particularly interests me, and I would welcome the opportunity that would afford me to use my language abilities, which are not used in my present post. A copy of my curriculum vitae is enclosed giving further details, together with copies of my references. My present employer will be pleased to send further information you may require, and will confirm that I am leaving his employment reluctantly and with the sole desire to improve my present knowledge of foreign languages. I hope to hear from you soon, and to be given the opportunity to present myself at an interview. Yours faithfully, James Brown James T Brown UNIT 1 BUSINESS COMMUNICATION 17 CV or Resume CV /BrE/ or resume /AmE/ should present all the personal details, education, qualifications and working experience. CV stands for the Latin word curriculum vitae, meaning 'the course of one's life'. It should be presented in an attractive form so that all the information can be seen at a glance. All the details are to be presented on two pages not more. CURRICULUM VITAE CONTACT INFORMATION Name Address Telephone Email Marianne Murphy 15 Mile End Road, London E1 4NV 0188 524 0567 m_murphy@gmail.com PERSONAL INFORMATION Date of Birth Place of Birth Nationality Sex 20 January, 1986. Birmingham English Female Optional Personal information: Marital Status Spouse’s Name Children Married Victor 2 EMPLOYMENT HISTORY Work History EDUCATION INTERESTS 2002 – present; researches at UKTV, London (Senior researcher since 2005.) BA (English and Business Studies), University of London, 2002. Music (member of orchestra), swimming, working with young people 20 BUSINESS COMMUNICATION UNIT 1 Order Orders are placed either in response to an offer, or on the buyers own initiative, without a preceding offer. Rodriguez, Inc., 2255 West 189th Street New York, NY 11250 Tel: 212-598-1534 November 15th, 2016 Mr George Holmes, Manager Baxter &Holloway, Inc. Smithville, ST 56789 Dear Mr. Holmes, Please accept our order for the following books on our usual discount terms. No. of copies Titl e Autho r Price 40 Accounting Taylor 9x40=360$ 50 Modern Business Brown 5x50=250$ An unexpected flurry of orders has depleted our stock. Therefore, any assistance that you can provide in expediting out order and delivery will be greatly appreciated. We look forward to prompt delivery. Sincerely, Paul Thomas Paul Thomas Purchasing Agent UNIT 1 BUSINESS COMMUNICATION 21 Payment Request Sometimes it is necessary to remind customers that they owe you money. Simpson’s Stationary 30 Silverstone Ave Kamloops BC Tel: 250-429-0002 February 21st, 2014. Mr Ken Brown Hanson’s Montessori School Kamloops, BC V2A 7B5 Dear Mr. Davis, Our records show that you have an outstanding balance dating back to January, 2014. Your January invoice was for $445.00 and we have yet to receive this payment. Please find a copy of the invoice enclosed. If this amount has already been paid, please disregard this notice. Otherwise, please forward us the amount owed in full by March 1st, 2014. As our contract indicates, we begin charging 5% interest for any outstanding balances after 30 days. Thank you in advance for your cooperation. We hope to continue doing business with you in the future. Sincerely, Maria McPhee Maria McPhee Accountant 22 BUSINESS COMMUNICATION UNIT 1 Complaints It may happen that one of the parties (the buyer or the seller) does not respect certain clauses of the contract so the dissatisfied party sends the other one a letter of complaint containing a demand for something which the sender of the letter has a right to claim for (damage or for a reduction in the price). When writing complaints avoid any expressions indicating anger, sarcasm, irritation, suspicion. Arrington Symphony 12 Main Street, Arrington, Tennessee, 37014 Tel: (615) 395-8765 October 4th, 2016 Alicia Hathaway 14 Sparks Rd Arrington, Tennessee, 37014 Dear Ms. Hathaway, In your acknowledgement of our order given to you on 19 September, you stated that the consignment would be dispatched within a week and we are therefore very surprised that the merchandise has not arrived yet. These goods were offered to our best customers for the pre sales period. Every day delay means loss and inconvenience for us. If this shipment is on route, please phone us and we shall see what we can do to this end to expedite delivery to our premises. If the order has not been shipped yet, we shall expect you to ship it immediately. If the orders have been held up because you are unable to ship certain items immediately, please phone us and we shall instruct you as to what items we can wait for and what items we may have to cancel. In any event we shall expect a call from you on Monday. If you do not get in touch with us before Tuesday, please cancel the entire order. Awaiting your call. Yours truly, Promotional Director Annie Wright Annie Wright UNIT 1 BUSINESS COMMUNICATION 25 EXERCISES B CHOOSE THE BEST WORD OR PHRASE TO COMPLETE EACH OF THE FOLLOWING SENTENCES: 1. The people who attend a meeting are known as the ________. a) attendants b) presenters c) participants 2 . The person in charge who conducts a meeting is called the ________. a) chairperson b) conductor c) president 3 . The official record of what is said at a meeting is known as the ________. a) records b) minutes c) articles 4 . You should send your ________ if you are unable to attend a meeting. a) apologies b) cancellation c) excuse 5 . The list of points to be described at a meeting is known as the ________. a) itinerary b) schedule c) agenda 6. For some meetings, you may need a certain number of people before it can start. This number is known as a ________. a) quartet b) quorum c) quote 2. INSERT THE FOLLOWING WORDS IN THE GAPS IN THE TEXT BELOW /applicant, application, application form, apply, candidate, curriculum vitae or CV (GB) or resume (US), employment agencies, interview, job description, job references, advertisement/: Many people looking for work read the (1) _____________advertised in newspapers by companies and (2) _____________. To reply to an advertisement is to (3) _____________for a job. You become (4) an _____________. You write an (5) _____________or fill in the company’s (6) _____________ and send it, along with your (7) _____________and a covering letter. You often have to give the names of two people who are prepared to write (8) _____________for you. If your qualifications and abilities match the (9) _____________you might be (10) _____________i.e. selected to attend an (11) _____________. UNIT 2 ECONOMY VS ECONOMICS 27 Unit 2 ECONOMY VS ECONOMICS Economy is, according to the Oxford Learner’s Dictionary, “the relationship between production, trade and the supply of money in a particular country or region”. Economy is an entire network of producers, distributors of goods and services and consumers in local, regional or national community. Economy is a system. Or it can be also defined as a careful management of available resources. Economics is a science that studies economies and develops possible models for their functioning. Economics is the study of how individuals and groups make decisions with limited resources as to best satisfy their wants, needs, and desires. Economics is very much study of choices. It explains why nations export some goods and import others. Simply, it is the study of money, banking, capital and wealth. In short, economy is treating the world as a marketplace and deals with the flow of money, while economics is the study of the world as a market. In any society, resources will be scarce relative to the number of uses to which they could be put. There are two main types of resources: physical or natural resources (soil, climate, water, minerals, forests and fisheries) and human resources (people and their various skills). Economists start their analysis by focusing on the entire economy and noting that there are a variety of wants from individuals, firms and governments, and only a limited number of resources, or factors of production, which economists group into four categories: land, labour, capital and enterprise. 1. Land is where raw materials come from: oil, gas, base metals and other minerals (all natural resources). 2. Labour is the ability of individuals to work (includes all physical and mental effort). 3. Capital is production machinery, computers, and office space or retail shops. 4. Entrepreneurship is the final factor of production that brings land, labour and capital together and organises them into units that can produce products in the pursuit of profit. The economist’s analysis of business begins with a simple assumption: firms are in business to make profits for their owners. Economists try to simplify the complex nature of reality. They are not arguing that the complex interrelationships between the various interest groups within a firm are not important. However, they are assuming that without profits, firms would find it difficult to survive financially. UNIT 2 ECONOMY VS ECONOMICS 29 Number: Singular and Plural Regular Plural formation: - (e)s added to Singular form Pronunciation: a) /s/ after voiceless consonants: lamps /lamps/ b) /z/ after voiced consonants: boys /boiz/ c) /iz/ after sibilants /-s, -sh, -ch, -x, -z/: classes /klasiz/ -es ending is added after sibilants and also after -o, when the letter is preceded by a consonant: potatoes, heroes, cargoes Not to be applied to the foreign nouns: pianos, photos, dynamos, magnetos, kilos, mementos Spelling peculiarities: a) -yies: country - countries, lady - ladies, fly - flies b) -yys : boy - boys, donkey - donkeys, boy - boys c) -f-ves: half - halves, loaf - loaves, leaf - leaves d) -f-fs: cliff - cliffs, roofs, gulfs, proofs, hoofs, beliefs, dwarfs e) -th -ths: bath - baths, path - paths Irregular Plural Forms: woman - women ox - oxen man - men die - dice child - children louse - lice tooth - teeth mouse - mice foot - feet goose - geese a) Some words have the same form both in singular and plural: sheep, swine, deer, means, species, etc. Foreign Plural kept in English: Latin: radius - radii, stratum - strata, larva - larvae, datum - data Greek: analysis - analyses, phenomenon - phenomena, criterion - criteria, thesis - theses French: bureau - bureaux, chateaux - chateaus Italian: bambino - bambini, risotti- risottos Hebrew: seraph - seraphim Singularia Tantum (nouns that always take a singular form of the verb): information, news, advice, furniture, luggage, money, mathematics, ethics, economics Pluralia Tantum (nouns that always take a plural form of the verb): trousers, pyjamas, people, scissors, clothes, police, cattle, scales, clergy. TURN AS MANY NOUNS INTO THE PLURAL AND MAKE ALL THE OTHER NECESSARY CHANGES IN THE SENTENCES: 1. The bird was eaten by a fox. 2. Have you observed the classifying criterion? 3. That knife should be handed in immediately. 4. Last night a hostel was robbed by a thief. 5. The child in that family has bad manners. 6. The farmer has a hen, a goose, and a sheep. 7. My brother-in-law is an accountant. 8. My cat never catches a mouse. 9. The inspector will speak to the witness who has seen the accident. 10. UNIT 3 MICROECONOMICS AND MACROECONOMICS 31 Unit 3 MICROECONOMICS AND MACROECONOMICS An economy is usually analysed as the study of microeconomics and the study of macroeconomics. People involved in economic activities must understand both microeconomics and macroeconomics so that they may make sound economic decisions. Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy. For example, microeconomics would look at how a specific company could maximize its production and capacity so it could lower prices and better compete in its industry. In short, microeconomics is the study of how individuals (households, firms, industries and markets) make economic decisions within an economy. Macroeconomics, on the other hand, is the field of economics that studies the behaviour of the economy as a whole and not just on specific companies, but entire industries and economies. Macroeconomics is the study of how the entire economy works including economic changes that tend to affect the whole of the nation’s economy. It looks at economy-wide phenomena, such as Gross National Product (GDP) and how it is affected by changes in unemployment, inflation and balance of trade. Key macroeconomic terms: d) GDP (gross domestic product) - a measure of the total output produced by an economy in a given year. e) inflation - the rate of change in the average price level (measure of how fast prices are rising). The quicker prices rise, the higher the rate of inflation. UNIT 3 MICROECONOMICS AND MACROECONOMICS 33 Definite Article • its form is for both the singular and plural: the girl(s); the apple(s); • 0 25 9it is pronounced differently /ði:/ apple, /ð / book. The is used: a) Before general words (definite): I like the flowers in your garden. b) With nouns mentioned for the second time. I have a car, the car is small but enough for me. c) Before public buildings, institutions, means of transport (definite): The school that Mandy goes to is old. d) Before names of countries in the plural, mountain ranges, regions: the Netherlands the United States of America the Alps the Rocky Mountains the Middle East the west of Australia e) Before groups of island: the Bahamas the Canaries f) Before names with of-phrase, well-known buildings, hotels, oceans, seas, rivers, musical instruments, newspapers: the Statue of Liberty the Tower (of London) the Empire State Building the Palace Hotel the Atlantic (Ocean) the Mediterranean (Sea) the Nile the Rhine the piano the Times g) When there is only one (unique things): The Pope is visiting Russia. The moon is very bright tonight. h) With a superlative adjective: He is the tallest boy in the class. i) Before ordinal numbers: The first half of the film is more interesting than the second half. j) With adjectives like rich, poor, elderly, unemployed to talk about groups of people: Life can be very hard for the poor. FILL IN THE BLANKS WITH THE REQUIRED ARTICLES: Last year I stayed in ___ little town in ___ England called ___ Stratford- on-Avon. I wanted to go to ___ theatre to see some of ___ plays of ___ Shakespeare. ___ theatre is near ___ River Avon, ___ beautiful river in which you can bathe and sail ___ boats. When I arrived in ___ Stratford, I was told to stay at ___ hotel called "___ Dirty Duck", but I couldn't find it. I asked many people where it was, but no one knew it. I saw ___ policeman at ___ corner of ___ main street. I spoke to him and asked him if he knew "___ Dirty Duck". He laughed and told me that he knew it all right. It was just at ___ bottom of ___ street near ___ Plaza cinema. I walked to ___ bottom of ___ street, saw ___ hotel and read ___ name above ___ door. It was called "___ Black Swan"! UNIT 4 SUPPLY AND DEMAND 35 Unit 4 SUPPLY AND DEMAND Supply and demand are perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand. Setting the price for a product is crucial for the product’s and company’s success. But what is the best price for a particular product? The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. In other words, the higher the price, the lower the quantity demanded. In attempting to understand consumer behaviour, economists use a very simple construct known as the demand curve . The demand curve illustrates the negative relationship between price and quantity demanded. The higher the price of a good the lower the quantity demanded, and the lower the price, the higher the demand of the good. Like the law of demand, the law of supply demonstrates the quantities that will be sold at a certain price. But unlike the law of demand, the supply relationship shows an upward slope. This means that the higher the price, the higher the quantity supplied. Producers supply more at a higher price because selling larger quantity at higher price increases revenue. This is best shown in supply curve. Demand Curve Supply Curve 10. UNIT 5 PRODUCTION 39 Unit 5 PRODUCTION Production is the process of providing goods and services to satisfy consumers’ needs. The processes and methods used to transform tangible inputs (raw materials, semi-finished goods) and intangible inputs (ideas, information, knowledge) into goods or services. Resources are used in this process to create an output that is suitable for use or has exchange value. Production involves all occupations in the primary, secondary and tertiary areas because everyone in each occupation helps to add a bit more value to something the user benefits from and improves the welfare of our society. d) Primary production is the earliest stage in the production process. It involves the extraction of raw materials from the Earth. This extraction results in raw materials and basic foods, such as coal, wood, iron and corn. The types of workers in this sector include farmers, coal miners and hunters. e) Secondary production is the second stage in the production process. It involves processes that transform raw materials from the primary stage into goods. This transformation results in wood being made into furniture, steel being made into cars or textiles being made into clothes, as examples. The types of workers in this sector include a seamstress, factory worker or craftsmen. f) Tertiary production involves supplying of services to consumers or businessmen. It comprises direct services, which are beneficial to individual members of the community (e.g. policing, teaching, nursing) and also commercial services which facilitate business activities, such as banking and insurance. The types of workers in this sector include bartenders, pilots and accountants. EXERCISES e) ANSWER THE FOLLOWING QUESTIONS: 1. What kind of a process is production? 2. How many areas of production are there? 3. What does secondary production involve? 4. What does tertiary production include? 2. EXPLAIN THE FOLLOWING STATEMENT IN YOUR OWN WORDS: 'A product is something made in a factory; a brand is something that is bought by the customer. A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless.'- Stephen King, WPP Group, London. PREPOSITIONS • are words normally placed before nouns or pronouns. I am good at Mathematics. •Time and date: at, on, by, before, in, from, since, for, during, to, till/until, after. •Place: from, to, at, in, by, on, near, over, under, between, behind. •Movement: into, out of, onto, off, to, toward, through. 40 PRODUCTION UNIT 5 FILL IN THE BLANKS WITH /on, in, to, at, with, over, of, off, from, for, by, about/: • He has worked _______ hours on that essay. • English is being spoken all _______ the world. • In spite _______ his ill-health Johnson did very well. • You should knock ______ the door before entering the room. • If you don’t pay this electricity bill, the company will cut your supply _______. • He came back _______ Monday. • I am _______ trouble with my teacher over some careless work. • The box of eggs was marked ’_______ Care’. • They suffered terribly ________ cold and hunger. • You will soon get used _______ his way of speaking • I took it ________ mistake. • What _______ that money you promised me? UNIT 7 MARKETS 43 Unit 7 MARKETS A set up where two or more parties engage in exchange of goods, services and information is called a market. Ideally a market is a place where two or more parties are involved in buying and selling. Market exists when buyer and seller come into contact. The two parties involved in a transaction are called seller and buyer. The seller sells goods and services to the buyer in exchange of money. There has to be more than one buyer and seller for the market to be competitive. The level of competition varies across markets: some are highly competitive, others are not. In highly competitive business environments prices will fall, while in less competitive environments price competition will be less severe. In market economies, there are a variety of different market systems that exist, depending on the level of competition that applies. 1. Perfect Competition - Perfect competition is a market system characterized by many different buyers and sellers. In the classic theoretical definition of perfect competition, there are an infinite number of buyers and sellers. With so many market players, it is impossible for any one participant to alter the prevailing price in the market. If they attempt to do so, buyers and sellers have infinite alternatives to pursue. Examples are agricultural commodities and unskilled labour. 1..2 Monopolistic Competition - In monopolistic competition, we still have many sellers (as we had under perfect competition). Now, however, they don’t sell identical products. Instead, they sell differentiated products - products that differ somewhat, or are perceived to differ, even though they serve a similar purpose. Products can be differentiated in a number of ways, including quality, style, convenience, location, and brand name. Some people prefer Coke over Pepsi, even though the two products are quite similar. Different retail shops are also examples of this market. 3. Monopoly - Monopoly is a condition where there is a single seller and many buyers at the market place. In such a condition, the seller has a monopoly with no competition from others and has complete control over the products and services. In a monopoly market, the seller decides the price of the product or service and can change it on his own. Natural monopolies were thought to exist in the utility markets such as water, gas and telecommunications, where the infrastructure required operating in these markets was so large that it restricted entry. 4. Monopsony - A market form where there are many sellers but a single buyer is called monopsony. In such a setup, since there is a single buyer against many sellers, the buyer can exert his control on the sellers. The buyer in such a form has an upper edge over the sellers. Examples of this market are arms manufacturers and Ministry of Defence as a buyer. 5. Oligopoly - An oligopoly is similar in many ways to a monopoly. The primary difference is rather than having only one producer of a good or service, there are a handful of producers, or at least a handful of producers that make up a dominant majority of the production in the market system. Optimally all firms in an oligopoly should agree to co-operate and act as one monopolist, as this generates the highest level of profits. This is known as a cartel. Automobile, computer and markets petrol stations are dominated by a handful of producers. 44 MARKETS UNIT 7 EXERCISES 1..3 ANSWER THE FOLLOWING QUESTIONS: 1. What is a market place? 2. Why do we say that the level of competition varies across markets? 3. What is a perfect competition? 4. What is the difference between monopoly and oligopoly? 5. What is a cartel? 2.COMPLETE THE SENTENCES BELOW USING WORDS FROM THE FOLLOWING LIST / market, price, profit, quality, client, cost, technology/: 1. We’re a firmly _________ -oriented company, so the bottom-line for us is not how big our market share is but how much money we’re going to make. 2. Even at low prices inferior products won’t sell in such a _________ -conscious market. 3. The market’s far too _________ -sensitive to stand an increase in service charges. 4. We’re constantly forced to respond both to changing customer needs and to what our main competitors are doing in a _________-driven business such as this. 5. The customer always comes first. We’re a very _________-centered company. 6. In a _________-led business, such as ours, it’s vital to plough profits back into R&D (research and development). 7. If the price of materials goes up any more, production will no longer be _________ -effective. THE PRESENT TENSES The Present Simple Tense: I speak English. The Present Continuous Tense: I am speaking English at the moment. The Present Simple Tense In the affirmative The Simple Present Tense has the same form as the infinitive but adds an -s for the third person singular. Affirmative Negative Interrogative I work I don't work do I work? you work you don't work do you work? he/she/it works he/she/it doesn't work does he/she/it work? we/you/they work we/you/they don't work do we/you/they work? It expresses: - a general or universal truth: The sun rises in the east and sets in the west. A friend in need is a friend indeed. • an action or state that characterizes the subject: He is a good speaker of English. • an action or a state that represents a habit or is repeated; adverbs are placed by them (always, everyday, ever, often, usually...) She always crosses the street there. We usually work in the morning. • timetables and schedules: The meeting starts at 9 o’clock. The train leaves the station at 10:30. UNIT 7 MARKETS 45 The Present Continuous Tense • is formed with the present tense of the auxiliary verb to be (am, is, are) + the present participle (infinitive + -ing) Affirmative Negative Interrogative I am working I am not working am I working? you are working you are not working are you working? he/she/it is working he/she/it is not working is he/she/it working? we/you/they are working we/you/they are not working are we/you/they working? It expresses: • an action happening now: It is raining. Why are you sitting at my desk? •arrangement for near future: I'm meeting Peter tonight. He is taking me to the theatre. PUT THE VERBS IN BRACKETS INTO THE SIMPLE PRESENT OR THE PRESENT CONTINOUS TENSE: 1. Financial control (depend) on doing the right thing at the right time. 2. The phone (ring). Why don’t you pick up the receiver? 3. They constantly (put) dangerous chemicals into the river. 4. Companies and organizations (have) a legal and moral responsibility to look after employees and their customers. 5. Why he (shout)? Is he angry? 6. He usually (leave) his office at five but at the moment he (leave) it a little bit earlier. 7. Motivation is what (drive) us to try to (reach) certain goals. 8. It (get) dark. Let’s go home! 9. The product is new and specialized and the market (grow). 10. Be quiet! I (try) to hear what the Chairman (say). The reasons why consumers decide to buy a product may be rational or\and emotional. Rational factors include cost, dependability, and usefulness. Emotional factors are satisfaction of the senses, fear, pride, sociability etc. 48 MARKETING UNIT 8 1. ANSWER THE FOLLOWING QUESTIONS: 1..5 Why do businesses today focus on customers? 1..6 What is marketing? 1..7 What is the marketing mix? 1..8 What are the four elements of the marketing mix? 2. MATCH EACH TERM IN FIRST COLOMN WITH ITS DEFINITION IN SECOND COLOMN: a. Machinery and tools. 1. ENTREPRENEUR b. An arrangement that allows people to make exchanges with 2. ECONOMICS one another. 3. START-UP CAPITAL c. Items of value that can be seen and touched. 4. GOODS d. The best alternative one gives up when making a choice. 5. OPPORTUNITY COST e. Items of value that cannot be seen or touched. 6. SCARCITY f. Study of how people in society make the what, how and who 7. SERVICES decisions. 8. MARKET g. Takes business risks in hopes of earning a profit. h. The inability to satisfy all of everybody’s wants. QUANTIFIERS •are words that are used to state quantity or amount of something without stating the actual number. •quantifiers answer the questions 'How many?' and 'How much?' Quantifiers used with Countable Nouns: a few: I have a few close friends in town, and we have good time together. (small quantity but enough) few: I have few friends in town, so I feel lonely. (small quantity, but not enough; negative) fewer: Fewer shops accept cheques nowadays. many: They got married many years ago. several: Several buildings were damaged in the earthquake. a number of: A number of students failed the class. some (affirmative sentences): She needs to buy some books. any(negative sentences and questions): Did you buy any apples? Quantifiers used with Non-Countable Nouns: a little: We have a little milk. Let's make a cake. (small quantity but enough) little: We have little milk. We can't make a cake. (small quantity, but not enough; negative) less/more: You spend less time and lose more weight. much: There isn't much sugar in the kitchen. a bit of: Can I have a bit of your chocolate? some: She needs some father advice. any: Did you spend any cash? No, I didn't spend any. UNDERLINE THE CORRECT ALTERNATIVE INITALICS 1. How much information/informations do you need to finish the job? 2. There is plenty of time/times left. 3. The news is/are very good actually. 4. There are little/few employees allocated to the job. 5. How much/many work go/goes into making it. UNIT 10 MANAGEMENT 51 Unit 10 MANAGEMENT Management plays a vital role in any business or organized activity. Management has been described as a social process involving responsibility for economical and effective planning and regulation of operation of an enterprise in the fulfilment of given purposes. Management’s primary function is to get people to work together for the realization of organization's goals and objectives. These activities are different from operative functions like marketing, finance, purchase etc. Management is composed of a team of managers who have considerable power in an organization at all levels. They are responsible for making sure the business operates efficiently. Regardless of the specific job, most managers perform four basic functions. For theoretical purposes, it may be convenient to separate the functions of management but practically these functions are overlapping in nature. The functions of management are: 1. Planning - involves defining a goal and determining the most effective course of action needed to reach that goal. Managers evaluate alternative plans and check to see that the chosen plan fits into the objectives. 2. Organizing - is the process of putting the plan into action. This is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. Organizing involves designing tasks and responsibilities to employees. Organizing also involves developing the chain of command within the company. 3. Directing - means direction and supervision of employees. Managers guide, teach and motivate workers so that they reach their potential abilities. Directing involves communication, supervision and coordination by management. 4. Controlling - managers evaluate how well company objectives are being met. The controlling function of management is useful for ensuring all other functions of the organization are in place and are operating successfully. Seven Qualities of an Excellent Manager: 1. CREATIVITY is the spark that propels projects forward and that captures peoples' attention. Creativity is the ingredient that pulls the different pieces together into a cohesive whole. 2. INTUITION is the capacity of knowing without the use of rational processes. People with keen insight are often able to sense what others are feeling and thinking. The stronger one's intuition, the stronger manager one will be. 3. KNOWLEDGE.A thorough knowledge base is essential. The excellent manager lives from a knowledge base, without having to draw attention to it. 4. COMMITMENT. A manager is committed to the success of the project and of all team members. It's the manager's commitment that pulls the team forward during trying times. 5. BEING HUMAN. Employees value leaders who are human and who don't hide behind their authority. Managers who respect and connect with others on a human level inspire great loyalty. 6. LIGHTNESS. An excellent manager doesn't just produce outstanding results; s/he has fun in the process! Lightness doesn't impede results but rather, helps to move the team forward 7. BIG PICTURE, SMALL ACTIONS. Small actions lead to the big picture; the excellent manager is skilful at doing both: think big while also paying attention to the details. 52 MANAGEMENT UNIT 10 EXERCISES 1. ANSWER THESE QUESTIONS: 1. What is management? 2. What are the functions of management? 3. What does planning involve? 4. What characteristics should a manager have? 2. FILL IN THE BLANKS WITH THESE TERMS /management, managerial, manage, manager, managing, manageress/: 1. John ____________ a small advertising agency since January. 2. The company required two men at ____________ level. 3. Alice was appointed ______________ director of F&C. 4. Mrs. Smith is the ______________ of the order department. 5. This store is now under new _____________. 6. He was a shop assistant but soon became the _______________. THE PAST TENSES The Past Simple Tense: I called Martin. The Past Continuous Tense: You were studying when she called. The Past Simple Tense The Simple Past Tense in regular verbs is formed by adding -ed to the infinitive: Infinitive: to work Simple past: worked The simple past form of each irregular verb must be learnt. These vary considerably in their simple past form: Infinitive: to eat, to leave, to see, to speak Simple past: ate, left, saw, spoke Affirmative Negative Interrogative I worked I didn't work did I work? you worked you didn't work did you work? he/she/it worked he/she/it didn't work did he/she/it work? we/you/they worked we/you/they didn't work did we/you/they work? It expresses: • a past action or a state completely finished, done in a determined past moment or in a determined past period of time. I met him yesterday. Shakespeare died in 1616. - a series/set of completed actions: I finished work, walked to the beach and found a nice place to swim. - habits in the past: I studied German when I was a child. UNIT 10 MANAGEMENT 53 The Past Continuous Tense • is formed with the past tense of the auxiliary verb be (was and were) + the present participle (infinitive + -ing). Affirmative Negative Interrogative I was working I was not working was I working? you were working you were not working were you working? he/she/it was working he/she/it was not working was he/she/it working? we/you/they were working we/you/they were not working were we/you/they working? It expresses: • a past action which continued for some time but whose exact limits are not known and are not important. It was getting darker. They were always working. - parallel past actions: Were you listening while she was talking? - interrupted action in the past: I was watching TV when she called. PUT THE VERBS IN BRACKETS INTO THE SIMPLE PAST OR PAST CONTINUOUS TENSE: • Peter (arrive) at our house yesterday. • When you (go) there? • What you (do) yesterday at five o’clock? • As I (walk) along Oxford Street, a car (mount) the pavement. • While the manager (interview) Mr Blake for the job, the secretary (type) a letter. • He (wash) his car. • When the phone rang, she (write) a letter. • Last year, I (travel) to Japan. 56 WHAT IS BUSINESS UNIT 11 EXERCISES 1. ANSWER THE FOLLOWING QUESTIONS: 1. How can you define profit? 2. How can you define business? 3. What are the goals of businesses? 2. MATCH SENTENCES 1-6 WITH ONE OF THE SENTENCES A-F. USE THE WORDS IN ITALICS TO HELP YOU: 1. Samantha is the assistant manager of a bank and she works from 8.30 to 5.30 everyday. 2. Tracy works on the production line of a factory which makes cars. She uses a machine to spray paint onto the finished car parts. 3. Jane works for herself. She is a photographer. She works every day for about eight or nine hours. 4. Jeanette is a cleaner for a company in Birmingham, but she only works there for about three or four hours a day. 5. Claire has a powerful job in the personnel office of a large multinational company. She is responsible for employing new people and getting rid of those that the company doesn’t want to employ anymore. 6. Marie works in the finance department of an international college in Oxford. • She is a semi-skilled blue-collar worker in a manufacturing industry. • She is a self-employed and works full-time. She likes to describe herself as freelance. • She is responsible for hiring and firing. • She calculates the wages, salaries, pension contributions and medical insurance contribution of all the staff. • She is a full-time white-collar worker in a service industry. • She is an unskilled part-time employee. UNIT 12 ORGANIZATION OF BUSINESS 57 Unit 12 ORGANIZATION OF BUSINESS Business organizations can take several forms, ranging from small one-owner business to multinational corporations. Some are concerned with making goods - industrial organizations, some are concerned with buying and selling - commercial organizations and some are concerned with banking and insurance - financial organizations. Legal and financial aspects are closely linked to business because, before any business starts, capital must be obtained. Before a business starts trading, a decision will have to be made about what legal form it will take. There are various types of business organizations such as: The sole trader/sole proprietor - is also known as one-man business. He or she will be personally responsible for the financial liabilities of the company. Common examples of businesses that have the sole trader form are sign writers, graphic designers, plumbers, decorators, bookkeepers. They do not require a lot of capital; they can be done effectively by one person. The partnership - A partnership may consist of a small number of persons called partners that contribute the capital for the business, either in equal or in agreed proportion. They may take an active part in the management of the business but they share the resulting profit or loss as well. There are many professional businesses that take the partnership form like doctors, accountants, vets, solicitors. Limited partnerships- A limited partnership is one in which one or more of the partners has limited liability (a legal protection to protect people who put money into a business but play no active part in running that business). The partners who play an active part in the management of the business are known as active partners as distinct from the other sleeping partner. A company is a more complex business organization consisting of associates: of people who both contribute capital and agree to share the resulting profit or loss. There are two types: private companies and public limited companies. Private limited companies - have the letters LTD after their name and consist of a number of members (shareholders). The shares are held among their members companies are not allowed to invite public to subscribe shares or debenture; to transfer shares is only with the consent of the directors and this restriction implies a high degree of risk. Public limited companies - have the letters PLC added to their name and consist of a number of members and they can offer their shares for sale. Like the private companies, the PLCs have limited liability but, unlike the former, the shareholder can sell their shares to people who wish to buy on the Stock Exchange. The capital of the PLCs must amount a minimum of £50.00. Joint ventures - Another form of business, i.e. temporary partnerships constituted for carrying out one particular trading objective are called joint ventures. The partnership is dissolved after the venture is completed. The co-operative - The basic idea behind the co-operative is that people work together and make decisions jointly. Co-operatives occur most frequently in production, retailing and marketing. Franchising - Franchising is one of the most rapidly growing business forms. A franchise system operates on the basis that an entrepreneur (known as the franchisor) will have developed a particular business activity, such as producing fast food, manufacturing ice cream or producing cosmetics. A major advantage for the franchisor is that it does not have to risk its own capital and will take a regular share in the profits of franchised outlets. Entrepreneurs are creative and individualistic. They are critical thinkers who take their ideas and transform them into goods and services. 58 ORGANIZATION OF BUSINESS UNIT 12 EXERCISES • ANSWER THE FOLLOWING QUESTIONS. 1. Can you name various business organizations? 2. Which type of business can be done by only one person? 3. State the difference between two kinds of partnership? 4. What do these abbreviations stand for? 5. Why is franchising growing so rapidly? • WORD FAMILIES. FILL IN THE MISSING WORDS: NOUN VERB ADJECTIVE analysis _____________ analytical competition to compete _____________ _____________ to advise advisory industry _____________ industrial production to produce _____________ consumption _____________ consuming _____________ to invest invested law to legalize _____________ success _____________ successful _____________ to apply applicable satisfaction _____________ satisfactory negotiation to negotiate _____________ _____________ to direct direct organization _____________ organized _____________ to develop developing practise to practise _____________ _____________ to decide decisive 3. COMMON ABBREVIATIONS: VAT- Value Added Tax PLC - Public Limited Company B/O - Branch Office IRS - Internal Revenue Service WTO - World Trade Organization IT – Information Technology LTD - Limited EEC - European Economic Community IMF - International Monetary Fund WHO - World Health Organization UNIT 13 COMMERCE 61 Unit 13 COMMERCE Commerce as a human activity is essentially the moving of goods from the seller to the buyer, namely the exchange and distribution of goods and services. As the goods are almost always produced far away from the place of consumption, their way from the producer to the consumer is a long and complicated one. Moreover, the goods are produced in large quantities but used in small ones. While the manufacturer has a limited production range, the consumer's requirements are almost unlimited in variety and it is the function of commerce to provide links between the stages of this process and the actual tools needed to make it work. The main functions of commerce are as following: Trade is essentially the general exchange of goods and services between producers and consumers. Trade consists of Home Trade including Wholesale Trade and Retail Trade and Foreign Trade dealing with Imports and Exports. Transport concerns the moving of goods by land, sea or air as well as the work of agents, travellers, trade representatives, etc., people who altogether carry it out. Communications are generally linked to the commercial activity as a whole since no transaction is possible without communications. Also, without communications endless delays and obstacles occur in all stages of commerce. Communications are made possible through the postal system, telephones, facsimile (fax), E-mail, mobile systems and satellite. Warehousing is a major function in modern conditions as production is usually in advance of demand and goods have to be stored appropriately in the warehouses of the manufacturer, wholesaler or retailer until they are required. One of the wholesaler’s most important functions is to provide a supply of merchandise which is readily available at all times to the retailer and the retailer performs this same function for the ultimate consumer. This function not only enables goods to be supplied whenever they are wanted, but also wherever they are wanted. Insurance - The risk of loss or damage in a business is covered by insurance policies which render trade secure and stable, since it enables the businessman or businesswoman survive losses by damage, fire, shipwreck, etc. EXERCISES 1. ANSWER THE FOLLOWING QUESTIONS. 1. How can you define commerce? 2. What are the main functions of commerce? 3. Why is warehousing so important? 4. Is insurance needed in commerce? 62 COMMERCE UNIT 13 COMPUTER TERMS: •The screen, the keyboard and the CPU form the hardware. • A mouse is used to move an arrow around the screen and select the appropriate icon for the desired action. •Spread sheets are used for working with figures such as writing accounts. •An attachment is a document which is sent together with an e-mail. •A scanner allows you to copy photographs and pictures onto the computer. •Computer information is known as data. (sg. datum) • A GUI presents the user with a series of small pictures called icons which represent the various options it is possible to use. •Spam is an e-mail which you don’t really want to receive. •You need a modem to allow your computer to talk to other computers. •Random Access Memory is known as RAM. •If you want to publish on the internet you’ll need your own homepage. •You use save so that you don’t lose information. •Another word for web page is website. •Your computer becomes part of the internet when you go online. •Use a search engine to help you find information on the World Wide Web. •Hyperlink or link is the connection from one web page to another document or page. •You download when you want to save a file from the internet. •The programs you can run on your computer – software. •When your computer can’t connect to the internet it is offline. •A virus in the system could destroy data. •A problem in the program is known as a bug. UNIT 14 GOODS AND SERVICES 63 Unit 14 GOODS AND SERVICES In economics, goods and services are very of use, or we can say that they are pronounced in the same breath. These are offered by the companies to the customers to provide utility and satisfy their wants. At present, the success of the business lies in the combination of best quality of goods and customer oriented services. Goods are things that you can touch and see which provide satisfaction for consumers. Cars, televisions, computers, bread and wine are obvious examples of goods. Services also provide satisfaction for consumers, but the service itself is not a physical thing. It is something that is done for you (a haircut, a college course, car insurance, and banking). Consumers are the general public and organizations who buy goods and services or who receive them free of charge. Producers are individuals or organizations that supply goods or services to the market. Money is anything that is generally accepted as a means of making a payment in a given area at a given time. From earliest times, precious metals such as gold, silver, and copper have been the most popular forms of money. Money is used to make transactions. Workers accept money in exchange for their labour, and firms accept money in exchange for the goods and services they offer for sale. Money is the crucial incentive to work motivation, too. EXERCISES • ANSWER THE FOLLOWING QUESTIONS: • What is the difference between goods and services? • Define consumers and producers? • What is money? 2. USE THE WORD IN CAPITALS IN THIS ORDER TO FORM WORDS THAT FIT IN THE SPACE: Money! Money! Money! Helen had always dreamed of becoming a (1) ________woman, and WEALTH imagined living in a (2) ________ mansion, and how her friends would praise LUXURY her (3) ________ when she gave them expensive presents. In reality she was GENEROUS usually hard up. She had some (4) ________ and a small life (5) ________ but SAVE her antique shop was not really very (6) ________. Every time she took money INSURE out of the bank, the (7) ________ checked her account, and told her how little PROFIT there was in it! Helen had taken out a (8) ________ a month before. How CASH could she repay it? Then one day she noticed an old painting in her shop. She LEND had thought it was (9) ________ but as she brushed away the dust, she saw the WORTH (10) ________ at the bottom. It said ‘Renoir’! She was rich at last! SIGN UNIT 15 TRANSPORT OF GOODS 65 Unit 15 TRANSPORT OF GOODS There are four ways of transporting goods : by roads and rail (land transport), by air and by sea. Vehicles traveling on these networks may include automobiles, bicycles, buses, trains, trucks, people, helicopters, watercraft, spacecraft and aircrafts. Which methods will be used depend on destination, volume of consignment, required speed, kind of goods, costs and safety. The channel of distribution is the route that a product follows from the manufacturer to the consumer. The traditional way of distributing goods from a manufacturer to a market is through a small number of wholesalers who then sell the goods to a large number of retailers. Wholesalers often provide a variety of services such as warehousing, credit, transport and packaging. Many manufacturers have little direct contact with the retailers of their products. EXERCISES 1. ANSWER THE FOLLOWING QUESTIONS: 1. What are four ways of transporting goods? 2. What is a channel of distribution and transport? 3. Can you explain the traditional way of distributing goods? 4. What is the difference between wholesalers and retailers? 66 TRANSPORT OF GOODS UNIT 15 MODAL VERBS Can - expresses 1. ability /Mary can speak French well./ 2. possibility /You can attend an Advanced Class./ 3. permission /You can have my seat, I am going now./ * can’t is used to express inability /George can’t swim as well as John can./ Could - expresses 1. ability in the past /She could read when she was six./ 2. polite request /Could you tell me the right time, please?/ * couldn’t is used to express inability in the past /When I was little I couldn’t draw a horse./ May & Might - express 1. permission /May I take this book?/ 2. purpose /He saved all the money he could so that his son might have a good education./ 3. possibility /It might rain tomorrow./ Must - expresses 1. obligation /In England traffic must keep to the left./ 2. logical conclusion /He must be home by now./ * must not expresses prohibition /You mustn’t walk on the grass./ Should - expresses 1. obligation or duty /You should obey your parents./ 2. advice /Pamela should go on a diet./ Ought to - expresses 1. obligation /Business managers ought to behave ethically./ 2. advice /You ought to go to the dentist./ Would - expresses 1. habitual action in the past /Every day he would get up at six o’clock and light the fire./ 2. polite request /Would you mind opening the window?/ FILL IN THE BLANKS WITH SUITABLE MODAL VERBS: 1. You _________ follow the instructions closely. 2. She _________ be more careful. He is very sensitive. 3. You _________ use my computer. 4. They _________ feed the animals in the zoo. It’s dangerous. 5. You __________ to have told me about this earlier. 6. Richard hurt his foot and _________ play football. 7. The news __________ be true, of course. 8. You __________ wipe your feet before coming into the house. UNIT 17 METHODS OF PAYMENT IN FOREIGN TRADE 69 Unit 17 METHODS OF PAYMENT IN FOREIGN TRADE To succeed in today’s global marketplace and win sales against foreign competitors, exporters must offer their customers attractive sales terms supported by appropriate payment methods. Because getting paid in full and on time is the ultimate goal for each export sale, an appropriate payment method must be chosen carefully to minimize the payment risk while also accommodating the needs of the buyer. During or before contract negotiations, you should consider which method of payment is mutually desirable for both you and your customer. There are four primary methods of payment for international transactions: 1. Cash-in-Advance - With cash-in-advance payment terms, the exporter can avoid credit risk because payment is received before the ownership of the goods is transferred. Wire transfers and credit cards are the most commonly used cash-in-advance options available to exporters. However, requiring payment in advance is the least attractive option for the buyer, because it creates cash- flow problems. Foreign buyers are also concerned that the goods may not be sent if payment is made in advance. Exporters that insist on this method of payment as their sole method of doing business may find themselves losing out to competitors who offer more flexible payment terms. 2. Letters of Credit - Letters of credit (LCs) are one of the most secure instruments available to international traders. An LC is a commitment by a bank on behalf of the buyer that payment will be made to the exporter, provided that the terms and conditions stated in the LC have been met, as verified through the presentation of all required documents. The buyer pays his or her bank to render this service. 3. Documentary Collections - A documentary collection (D/C) is a transaction whereby the exporter entrusts the collection of a payment to the exporter’s bank, which sends documents to the importer’s bank, along with instructions for payment. D/Cs involve using a draft. There are three parts of a draft: 3.)a the drawer, the exporter or seller executing the draft, 3.)bthe drawee, on whom the draft is drawn and who is required to meet the terms of the document (the importer or buyer), 3.)c the payee, who is the party to receive payment (the exporter or the exporter’s bank) Although banks do act as facilitators for their clients, D/Cs offer no verification process and limited recourse in the event of non-payment. Drafts are generally less expensive than LCs. 4. Open Account - An open account transaction is a sale where the goods are shipped and delivered before payment is due, which is usually in 30 to 90 days. Obviously, this option is the most advantageous option for the importer in terms of cash flow and cost, but it is consequently the highest risk option for an exporter. 70 METHODS OF PAYMENT IN FOREIGN TRADE UNIT 17 COUNTRIES CURRENCIES The UK pound The US dollar China yuan Japan yen Mexico pesos Russia ruble Australia dollar Norway krone Switzerland franc India rupee Turkey lira EU countries euro EXERCISES 1. ANSWER THE FOLLOWING QUESTIONS: 1. What are four primary methods of payment for international transactions? 2. What are parts of a draft? 3. What option is the most advantageous for the importer? 2. CIRCLE THE CORRECT ANSWER: 1. Money in notes and coins is called: a) cash b) capital c) reserves 2 . The dollar, the mark and the yen are all a) currencies b) funds c) monies 3 . Money borrowed from a bank is a: a) deposit b) income c) loan 4 . Borrowed money that has to be paid back constitutes a a) debt b) fund c) subsidy 5 . All the money received by a person or a company is known as a) aid b) income c) wages 6 . The money earned for a week’s manual work is called a) income b) salary c) wages 7 . Money placed in banks and other savings institutions constitutes a) capital b) deposits c) finance 8 . The money that will ultimately be used to pay pensions is kept in a a) budget b) deposit c) fund 9 . The money needed to start a company is called a)aid b) capital c) debt 10. A person’s money in a business is known as his or her a) deposit b)fund c) stake UNIT 18 FINANCE 73 Unit 18 FINANCE Finance is the management function through which money is effectively obtained and used.In all organisations money comes in and then flows out. Managers are worried to make the right critical decision; so an organisation has to engage in financial planning. Financial planning involves defining objectives and then developing ways of achieving them. To help with the provision of finance and the making of financial decisions, many organisations turn to financial markets. The price paid in these markets for using money is the interest rate. A number of factors influence this rate. For example, if the demand for funds increases and the supply remains unchanged, then interest rates are likely to rise. Conversely, if the demand for loan capital is low in comparison with the availability of funds, interest rates are likely to fall. The financial managers must be informed about interest rates as well as the overall economy in order to time borrowing to their best advantage. Managing a company's finances means thinking in terms of two opposite categories: assets and liabilities. Assets are the items of value that the company owns. Current assets and are defined as the resources that can be turned back into cash within a year. Raw materials, like for instance, steel, cotton, or a warehouse of T-shirts ready to be dispatched to stores are all short-term assets. Cash itself is a short-term asset. Liabilities are debts, the sums that the company owes to other businesses or individuals. Borrowed money that must be paid back within the year is a prime example of a short-time liability, or a short-time debt. Other short-time liabilities include: rent, salaries, and unpaid bills for raw materials. EXERCISES • ANSWER THE FOLLOWING QUESTIONS. • What is finance? • What does financial planning involve? • Define interest rates? • How can you define assets? • Which are the liabilities in a company? • EXPLAIN THE FOLLOWING STATEMENT IN YOUR OWN WORDS: • The financial markets enable people to increase their personal wealth by helping to build the economy’s wealth. • In the play ‘Hamlet’ by William Shakespeare, a father gives his son some financial advice:’Neither a borrower nor a lender be’. The play was written over four hundred years ago, but 74 FINANCE UNIT 18 today many parents would give similar advice to their children. Do you think this is always good advice for business? 3. All investments are risky. FINANCIAL DOCUMENTS: Contract - a formal agreement for the exchange of goods or services in return for payment. Tender - a formal letter with an offer to supply goods or services, containing a description of the project, including costs, materials, personnel, time plans, etc. Business plan - a description of the ways a new business hopes to make money, showing possible income and expenditure. Cash budget - a plan of cash income and cash spending for a specific period of time. Profit and loss account - a formal description of income and costs for a time period that has finished. Balance sheet - a formal description of a company’s financial position at a specified moment. Share certificate - a document which represents a part of the total stock value of a company and which shows who owns it. Insurance certificate - a document which states that a named person or company has paid for protection against accident loss or damage of goods or property. THE PASSIVE VOICE Active voice: The boy broke the window. Passive voice: The window was broken by the boy. Active voice If the person or thing denoted by the subject of a sentence is the doer of the action, then that form of the verb is the active. We keep the butter here. Passive voice If the person or thing denoted by the subject of a sentence is the receiver or sufferer of the action, then that form of the verb is passive. The butter is kept here. • the subject of the active verb becomes the 'agent' of the passive verb. • is formed by using the appropriate tense of the verb to be +the past participle of the verb (regular verbs: infinitive + -ed; irregular verbs- list of irregular verbs). Passive equivalents of Active tenses Tense Active voice Passive voice Sim ple present sees is seen Present continuous is seeping is being seen Simple past saw was seen Past continuous was seeing was being seen Present perfect has seen has been seen Past perfect had seen had been seen Future [ [oil keep [ [will be seen UNIT 19 BANKING SYSTEM 77 Unit 19 BANKING SYSTEM The banking system is a crucial component of the global economy. Banking systems have been with us for as long as people have been using money. Banks and other financial institutions provide security for individuals, businesses and governments. Stable banking systems are an important component of well-functioning financial systems. Banks are just one part of the world of financial institutions and as financial intermediaries, banks stand between depositors who supply capital and borrowers who demand capital. In general, what banks do is pretty easy to figure out. For the average person banks accept deposits, make loans, provide a safe place for money and valuables, and act as payment agents between merchants and banks. The members of the banking system and the functions they typically perform include: 1. Commercial banks - take deposits and make loans. At a commercial bank, you can open a checking or savings account, apply for a car or homeowner loan, transfer money, or pay your bills. 2. Investment banks - specialize in capital market issues and trading. Investment banks guarantee the sale of stock and bond issues, trade for their own accounts, make markets, provide investment management, and advise corporations on capital market activities. 3. National central banks - issue currency and set monetary policy. The National Bank is a central bank. It has special functions that help keep the economy and financial systems stable. Low inflation, trust in banknotes and a stable financial system are key ingredients for the economic well- being of a country. It’s the bank’s job to maintain the value of money by keeping the rate of inflation at a low level. EXERCISES 1. ANSWER THE FOLLOWING QUESTIONS: 1. What do banking and financial markets involve? 2. What do you know about the commercial banks? 3. Do you know anything about the National Bank of Serbia? BANKING TERMS: • A plastic card that you can use to pay for goods in shops that means that money is immediately transferred to the shop’s bank is called a debit card. •A credit card isn't linked to your current account and is a credit facility that enables you to buy things immediately, up to a pre-arranged limit, and pay for them at a later date. • When you use your bank card to get cash, you have to know your PIN number (personal identification number). •Banks normally send out a statement every month. It is a complete record of all transactions on the named account. •If you want your bank to transfer money to another bank you ask for a bank draft. •When someone pays cash or cheques into a bank, they complete a paying-in slip. •If you take money from your account you normally get a withdrawal receipt. 78 BANKING SYSTEM UNIT 19 •If you need cash urgently, you can usually get some, even at night, from an ATM. •If you have a bank account you can pay for goods and services by using a chequebook. •A standing order is an agreement to pay a creditor a sum of money on a regular basis, where the creditor can alter the dates or amounts of the payment. •Some banks operate a night safe facility where you can deposit cash. •Carrying out simple banking operations such as checking your account, making transfers or payments from home, either by phone or using a computer is home-banking. CONDITIONAL CLAUSES Conditional sentences have two parts: the if-clause and the main clause. Type 1 (Probable): If he runs he'll get there in time. Type 2 (Hypothetical): If I had a map I would lend it to you. Type 3 (Unreal): If I had known that you were coming I would have met you at the airport. If- clause Main clause Type 1 Present Tense Future Simple Tense (Present Simple or Present Continuous) WILL + Infinitive Type 2 Past Tense The Conditional Tense (Past Simple or Past Continuous) WOULD + Infinitive Type 3 Past Perfect Tense The Perfect Conditional WOULD + have/has + Past Participle COMPLETE THE FOLLOWING SENTENCES WITH THE CORRECT TENSE OF THE VERB IN BRACKETS: • We (go) much earlier if we had known the times of the trains. • If there is a shortage of any product prices of that product (go) up. • If you are kind to me I (be) good to you. • He (send) his children abroad for the summer if he had the money. • If someone tried to blackmail me I (tell) the police. • The cat (scratch) you if you pull her fail. • I (come) by bus if it hadn't been so late. • He is absolutely convinced that his programme (succeed). • The child (not burn) himself if you hadn't left the iron on the table. UNIT 20 THE EURO 79 Unit 20 THE EURO The euro is a strategic and technical challenge for the European nations, as well as members of the European Union. The Euro assures currency stability and an advantage towards European integration. The business has eliminated the exchange risk; the functioning of markets has been improved (i.e. an easier flow of goods and services, lower transactions costs, etc.). The trade between EU countries is done in Euro; the euro area has been created. It has brought about a change in the life of the Europeans (businessmen, tourists, bankers). The major banks have made the technology changes which have been required for euro compliance as they need to minimize the euro impact to their customers. Banks have been confronted with the losing of revenue streams due to the introduction of the single currency. The companies have faced important strategic, marketing and organizational challenges. 1 January 1999 until 1 January 2002 was the period when the euro coexisted with the national currency. The introduction of the single currency has three phases: 1. the launch of the EMU (early 1998) 2. the start of the EMU (1 January 1999) 3. the single currency (begins with 1 January 2002) *EMU - (Economic) European Monetary Union Beginning with this date, euro is used in the EU countries, new coins and banknotes have been issued. The banks have completed the changeover and the national currencies have been withdrawn. EXERCISES 1. ANSWER THE FOLLOWING QUESTIONS: 1. What does the euro assure? 2. What have the banks done? 3. What did the companies face? 4. Was it a coexistence of the euro with the national currencies? 5. Can you mark the main EMU phases? 2. CIRCLE THE CORRECT WORD IN BOLD IN EACH OF THE FOLLOWING SENTENCES: 1. I haven’t got enough money, I’m afraid. Could you borrow/lend me some? 2. Everything is in the file except/accept the letter we wrote last week. 3. This car is too expensive. We can’t afford/pay it. 4. I wondered if you would be willing to attend the meeting on Monday in my place as I’m not interesting/interested in the issues. 22. BRITISH ENGLISH AND AMERICAN ENGLISH 83 BRITISH ENGLISH AND AMERICAN ENGLISH BRITISH ENGLISH AMERICAN ENGLISH accommodation accomodation alter change autumn fall bill check biscuit cookie cheque check colour color engaged(telephone) busy enquiry inquiry fill in fill out film movie flat apartment form blank/form gasoline petrol holiday vacation hood bonnet jumper sweater lift elevator luggage baggage lorry truck managing director president maize corn note (paper money) bill parking lot car park pay rise pay raise phone directory phone book post mail programme program railway railroad reception front desk sidewalk pavement sweets candy trunk boot