The World of Business

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Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

ФЕДЕРАЛЬНОЕ АГЕНТСТВО ПО ОБРАЗОВАНИЮ ГОСУДАРСТВЕННОЕ ОБРАЗОВАТЕЛЬНОЕ УЧРЕЖДЕНИЕ ВЫСШЕГО ПРОФЕССИОНАЛЬНОГО ОБРАЗОВАНИЯ «ВОРОНЕЖСКИЙ ГОСУДАРСТВЕННЫЙ УНИВЕРСИТЕТ» СТАРООСКОЛЬСКИЙ ФИЛИАЛ

THE WORLD OF BUSINESS Учебное пособие для вузов Составитель Т.А. Чичеренкова

Издательско-полиграфический центр Воронежского государственного университета 2009

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

Утверждено ученым советом СОФ ВГУ 29 октября 2008 г., протокол № 2

Рецензент канд. пед. наук, доц. кафедры английской филологии Воронежского государственного университета Н.А. Шарова

Учебное пособие подготовлено на кафедре иностранных языков романогерманского факультета Cтарооскольского филиала Воронежского государственного университета. Рекомендуется для студентов дневного обучения дневного обучения 3 курса РГФ и 1,2 курсов экономического факультета.

Для специальностей: 031001 – Филология, 080105 – Финансы и кредит, 080109 – Бухгалтерский учет, анализ и аудит

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CONTENTS Section 1. Lifestyles and work ............................................................................ 4 Section 2. Business travel ................................................................................... 8 Section 3. Globalisation ...................................................................................... 14 Section 4. Profit from the prophets ..................................................................... 19 Section 5. Economic reports ............................................................................... 23 Section 6. Profitable banks.................................................................................. 28 Section 7. Advanced points................................................................................. 33 Literature ............................................................................................................. 40

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SECTION 1

LIFESTYLES AND WORK Preview 1. Comment on the philosophy and attitudes towards work expressed by famous authors. a. Work – work – work Till the brain begins to swim; Work – work – work Till the eyes are heavy and dim… Thomas Hood b. …And no one shall work for money, and no one shall work for fame; But each for the joy of the working… Rudyard Kipling 2. Discuss the issues below: a. The word “workaholism” is a combination of two words with opposite connotation “work” and “alcoholism.” Are these connotations positive or negative to you? b. Being hooked on work, a workaholic would say, “I have no life.” Then, why do you think they continue putting in long hours at work? c. The dictionary defines a workaholic as “a person who works most of the time and finds it difficult to stop working in order to do other things.” List things, activities, relationships etc., workaholics have to sacrifice. d. Are you familiar with the concept of Silicon Valley? What is Silicon Valley famous for? Reading 3. Read the text and discuss with your partner how different (or how close) your predictions were. World – Class Workaholics: are Crazy Hours and Takeout Dinners the Elixir of American Success? Chris Strahorn’s parents haven’t seen much of him lately. They’re usually asleep by the time he gets home, anywhere between 11 p.m. and 3 a.m. And he’s often asleep when they leave work. If his car is in the driveway, they know he made it back. (Sometimes his father says “hi” to the car.) If not, it’s a safe bet that 4

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Strahorn, a 24-year-old computer programmer at an Internet start-up called the Tomorrow Factory, has pulled another overnighter, grabbing a few hours of sleep on his futon. Most of his colleagues prefer the sofa that the company has thoughtfully provided. Strahorn likes the relative calm and quiet of his cubicle. He sleeps under his desk, for the darkness, and close to his computer, for the warmth. Wherever he slept, he tends to have breakfast at the Morning Brew Coffee Co. in the same small South San Francisco building at the Tomorrow Factory. The Morning Brew was there first. When the Tomorrow Factory moved in over the summer, the founders installed a door between the two places. Thanks to that piece of foresight, the Tomorrow Factory’s thermoses are kept steadily filled with freshly ground Sumatra. Some of the employees, says Strahorn, think it may be time to add a “direct line – an intravenous tube.” Young computer whizzes with stock options may not be broadly representative of the contemporary work force. But in one respect – crazy hours – the Silicon Valley ethos speaks for American these days. Between 1977 and 1997, the average workweek (among salaried Americans working 20 hours or more) lengthened from43 to 47 hours. Over the same years, according to James T. Bond, vice president of the Families and Work Institute, the number of workers putting in 50 or more hours a week jumped from 24 percent to 37 percent. Scarcely a decade ago, Americans viewed the work habits of the Japanese with half – horrified awe. Now, according to a recent report of the International Labor Organization, the United States has slipped past Japan to become the longest – working nation in the advanced industrial world. Life Inside a Silicon Valley Start-Up (Silicon Valley is an area of Northern California, famous for world-class academic institutions (Stanford University and the University of California at Berkeley), brilliant scientists, military procurements of semiconductors and the pleasant climate of Northern California, which makes it one of the greatest “science parks” in the world. (http://www.netvalley.com/archives/mirrors/sv&128.html) At hundreds of start-ups across Silicon Valley, computer whizzes are setting the tone for the national work-a-thon. What makes them tick so fast? “Everybody knows I don’t have a life,” says Ken Exner, who lives about five minutes from the Tomorrow Factory, the little company he found a year ago in the South san Francisco. David Kerley, the director of marketing, also sets a strong example of dedication to the enterprise. And often there’s nobody for him to go home to either, because his wife works equally crazy hours on merger-and-acquisitions deals at her Palo Alto law firm. 5

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Eight Days a Week Co-worker Dylan Greiner’s marriage almost broke up five years ago, after a stint of 12-hour days at a software company in Texas. “A lot of lifestyle changes were made,” says Greiner. Yet he, too, has embraced the start-up life, including an hour and a half commute from his home near Modesto. Early next year, they will launch their product – a form of personal shopping management software whose wonders they cannot yet divulge. Before he joined the Tomorrow Factory, Greiner had a nice thing going at a software company in San Mateo, where he was required to do overtime just once in 18 months. From a domestic point of view, he says “it was a dream job. But it was pretty boring.” Chris Strahorn, a 24-year-old programmer, worked at Sun Microsystems for three years while pursuing an as-yet-unobtained degree in computer science at the University of California-Davis. He put in some 60-hour weeks at Sun. He says he’d sooner work 100 hours a week in a small and collegial setting of the Tomorrow Factory, working on something he believes in. A few years from now, he hopes to be in a position to say, “That’s mine – I wrote that – and it’s sitting on a million desktops.” Speaking 4. Explain what the following means. Here is the vocabulary you can use to do the task: hectic, exhausting, voracious, non-stop, jammed, tight, full, flexible, fixed, rigid, relaxing. – to work crazy hours – to pull another overnighter – national Work-a-thon – What makes them tick so fast? 5. Answer the questions below making inferences from the text about the following values: time, hard work, success/achievement. а. What value can be revealed from the title and the closing phrase? b. Why do you think takeout dinners are mentioned along with crazy hours in the subtitle? Why is fast food popular with workaholics? c. Why has the company thoughtfully provided the sofa for the employees? Does the company encourage its employees to have more rest? If not, give a different guess. d. Why do you think some of the employees would like to add a “ direct line – an intravenous tube”? 6. In small groups, discuss what you think of the workaholics’ lifestyle. Try to balance all pros and cons. The information below will help you. – Americans across the country will join in hundreds of activities to start a national conversation about how we can all live more fulfilling, happier lives. 6

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– Americans work nine weeks more each year than their colleagues in Western Europe. – More than half of Americans (52 %) say they would be willing to trade a day off a week for a day’s pay a week. – Americans say they’d accept a pay cut to: have more free time to do whatever I wanted (27 %); have more free time to spend with my family (21 %); and genuinely feel less pressure and stress in my life (20 %). – More than 4 in 5 Americans (83 %) wish they had more time to spend with the family. This sentiment is shared among adults with and without children. More than 8 in 10 parents (88 %) and non-parents (83 %) want more time for family. Writing 7. Writing a composition (300 – 400 words). Give your opinion on the problem of workaholism and justify it. Points to remember: – Never start writing your composition before making a plan. – Each paragraph should start with a topic sentence which summarises the paragraph. – Each viewpoint should be joined to the others with linking or sequence words e.g. in the first place, to start with, what is more, also, furthermore, besides, apart from this, it is argued that, etc. A good argumentative composition expressing opinion should consist of: a. аn introduction in which your opinion is clearly stated, б. a main body which can consist of two or more paragraphs. Each viewpoint, supported by a logical reason, should be presented in a separate paragraph. The opposing viewpoint is mentioned in a new paragraph. In the same paragraph you might include a lead-in opinion to your conclusion. c. A conclusion in which you sum up your viewpoints and re-state your opinion. Useful Words and Phrases: To list viewpoints: Firstly, In the first place, To begin with, Secondly, Thirdly, Finally, etc. To add viewpoints: both…and, What is more, not only…but also, In addition, Furthermore, Besides, not to mention the fact that, etc. To present the other side of the argument: Contrary to what most people believe, As opposed to the above ideas, Some people argue that…etc. To express opinion: 7

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I believe, In my opinion, I think, In my view, I strongly believe, I feel that, It seems to me that, etc.

SECTION 2 BUSINESS TRAVEL PART 1 Preview 1. Work with a partner and discuss these questions. – How are business travellers different from other travellers? – How can an airline cater for their special needs? 2. Match the words below with their meanings. 1) to upgrade 2) a carrier 3) to savvy 4) economy 5) to check in 6) a cabin 7) in the offing a. to understand or to get the sense of (an idea, etc.); b. a class of travel in aircraft, providing less luxurious accommodation than first class at a lower fare; c. the part of an airliner in which the passengers are carried; d. to raise to a higher grade; e. possible; f. to arrive and register at a hotel, airport, etc. g. a vehicle, ship, etc used for the transport of sth. Reading 3. Read this article from the business travel section of a British newspaper and answer these questions. a. What is it that airlines cannot “have both ways”? b. How easy is it to get an upgrade? c. Why will it “count as nought” if a traveller is wearing jeans and a T-shirt? d. How can a business travel agent help? 8

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e. How could a business person try to get on the 7 p.m. Concorde flight from London to New York? f. Why should a business traveller try to sit next to noisy children? Promotion to the Rank of Flyer First Class HOW EASY is it to get an airline upgrade? Obviously it is happening all the time – how else would business and sometimes first class cabins be full so often? Airlines cannot have it both ways: they cannot bemoan their low yields and losses yet claim that the cabins up front are full of bona fide full-fare paying travellers. But when the cheapest economy ticket price on the transatlantic route is between nine and ten times cheaper than for a business class ticket, many executives have no option but to fly economy and hope for an upgrade. Some carriers are known for their stringent approach to upgrading. Most Far Eastern carriers, such as Singapore and Malaysian Airlines, are loath to upgrade unless there is no other option. UK travel agents suggest this is due to the importance of status in the Far East and the granting of it to those who have earned it, i.e., paid the fare. On the very competitive transatlantic routes, however, it is a different story. Both US and British carriers – and certain European ones – are keen to win business, albeit not at any price, but at a cost which might encourage you to fly with them again. There is no more powerful incentive for a business traveller than the lure of an upgrade up the aircraft of the Holy Grail – an upgrade to Concorde. BA knows full well the drawing power of Concorde and does upgrade certain executives when appropriate to this speedy, if not exactly comfortable, sovereign of the skies. But while transatlantic upgrades are sought for the comfort they provide, upgrades to business class flights are more status symbols than of real practical benefit on short – hop European flights. So what strategy should the savvy business traveller adopt? A seven – point programme could be: 1. Dress smartly – the single most important rule. You may feel it is more comfortable to travel in trainers and tracksuit – and it is, if you are sitting in economy. But whatever else you may have going for you at the check-in it will count as nought if you are wearing jeans and a T-shirt. For men this means wearing at least a jacket and tie at the check-in. For women, a smart suit or dress is required. Once you are on the plane with your upgrade it does not matter what you wear. 2. Join a frequent – flyer programme. This is the simplest and most painless way to get an upgrade. US carriers, saddled with many millions of unclaimed mileage points, are happy to let you some of them on an upgrade. BA always gives first upgrade priority to its silver and gold Executive Club members. These cards are only gained if you are a frequent flyer anyway and so BA recognizes you deserve 9

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any upgrades going. If upgrades rather than free flights are important to you, join a scheme that is most likely to hike you up the cabins. 3. Use a business travel agent. Earlier this year Wagonlits Travel ran a special promotion with United Airlines which meant that all United flights booked through the travel agency were automatically upgraded. It is worth checking with your business travel agent to see if any similar deals are in the offing. Booking through a big agency, moreover, should give you a better chance. Given the volume of business that the multiple travel agencies place with the airlines, then they are usually willing to give priority to their clients when space is available. Not always though, since if an upgrade was always automatic, then clients would always book the cheapest flights. 4. Shop around. With or without the help of a specialist business travel agent, there may be deals that offer effective upgrades. Airline Ticket Network (0800 727747) can often find business class flights at the same price as you would pay economy on another airline, though you may have to fly Air India or Iceland Air. If your company will pay for first class travel but not the supplement for Concorde, try Air France Concorde instead: the fare is equivalent to BA’s first class price, although you have to fly to Paris (flight included) to catch the supersonic jet. 5. Check in late. Experienced users of this system arrive just within the allowed check-in time in the hope that full economy or business class cabins might get them either into business (with someone else bumped up to first) or into first class itself. Some very experienced and determined upgrades try this with BA’s 6.30 p.m. daily flight to New York from Heathrow Terminal 4 on the possibility that they may get onto the 7 p.m. Concorde flight. 6. Be confident. Those executives arriving at the check-in desk brimming with confidence will often give the aura that they should be upgraded. Unfortunately for women, this is more of a sexist male ploy to predominantly female check-in staff. 7. Keep trying. Even if you fail to be upgraded at the check-in, the savvy traveller knows that all is not lost. It helps sometimes to be seated next to noisy children in economy. Get out some work or, better still, a portable computer and look busy. Then, while people are still being seated, ask a flight attendant if you can speak to the senior steward or purser. If you are smartly dressed and look like an obvious business traveller then many flight staff will be sympathetic and move you up. (from THE SUNDAY TIMES) Vocabulary/Grammar 4. Translate from Russian into English using if clauses. a. Даже если ваша попытка перейти из эконом-класса в бизнес-класс не увенчается успехом, не расстраивайтесь и не думайте, что все потеряно. 10

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b. Если бы большие туристические компании не предоставляли преимущество тем своим клиентам, которые часто летают в заграничные командировки (делая им существенные скидки), то многие деловые люди начали бы пользоваться услугами железнодорожных компаний. c. Возможно, путешествовать в кроссовках и спортивном костюме вам было бы удобнее, но, если вы хотите добиться перевода из экономкласса в бизнес-класс, путешествуйте в деловом костюме. d. Если бы разница между стоимостью билетов эконом- и бизнесклассов не была такой огромной, то бизнес-салоны в самолетах были бы всегда заполнены. Speaking 5. Work with a partner and discuss this question. What advice can you now give to a business traveller who wishes to fly in comfort without having to pay for it? 6. Work with a partner. Role play this situation: Student A works as a check-in clerk for an international airline. Student B is an economy class passenger. Student B would like an upgrade to business class. Writing 7. Write a composition (120 – 180 words) on the topic: If I were a business person, I would travel… РART 2

WOMEN BUSINESS TRAVELLERS Unfortunately, not all business travellers are satisfied with the services they receive. 1. Read the article about women business travellers. Sentences A-E have been removed from the text. Match them to the correct numbers. a. Yet while security is considered important by women business travellers, few actually appear to be so concerned as to do anything about it.

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b. Vanessa Cotton, another frequent business traveller who is managing director of the Event Organisation conference company, says the secret is to take control, especially when entertaining business guests. c. Probably the biggest irritation women executives find when travelling on business is the hotel restaurant. d. The Forte Crest chain has for some years adopted a high-profile approach, with a proportion of each hotel’s rooms fitted out as Lady Crest rooms. e. Every time business traveller Fiona Driscoll stays in a hotel from now on, she will have the opportunity to get her own back for any lapses of service and especially, any bias against her as a woman guest, as she is one of the first to sign up for a new scheme aimed at giving a better deal for women business travellers. 1 /….. Woman Aware has been launched by hotel reservations agency Expotel to find out which are the best and worst hotels for women travellers. Expotel claims that women executives already account for some 35 per cent of all business travellers, and believes that by the turn of the century this figure will rise to about 50 per cent. In America, some estimates suggest that this level has already been reached. British airlines, however, put the figure much lower – about one in every five business-class passengers is a woman traveller, they report. The Woman Aware scheme – which involves filling out an appraisal form of each hotel – grew out of a survey of 600 frequent women travellers, aiming to discover how they were treated in hotels. It concluded that about three – quarters were unhappy with the security awareness of hotel staff, and, in particular, though more could be done to conceal room numbers when checking in. About 57 per cent preferred to have room service delivered by a woman, especially late at night. 2 /….. A recent Hyatt International hotels survey of about 300 women business guests found that few requested a room near a lift or enquired whether the rooms had a chain or spyhole. None saw the need for women – only parking areas, and few apparently noticed if their room key had the number on it. Hotels, in fact, have a rather ambivalent attitude towards women executives and how they should be treated. Some, such as the Hilton National and Sheraton chains, believe there is no need for positive discrimination in favour of women other than ensuring that staff are trained to take security precautions. Their policy is to treat all guests – men and women – the same: to do otherwise, they argue, would be patronizing. “The key issue is security rather than pink frills and gimmicks,” says Hilton. 3 /….. 12

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These typically have an iron and ironing board, spyhole and deadlock on the door, special clothes hangers, women’s magazines and a basket of fresh fruit. Décor is lighter than that found in a standard room. Men are not excluded from booking these rooms and, in fact, often request them because of their additional facilities and lighter atmosphere. Holiday Inn is somewhere between the two extremes: it does not have special room facilities for women, but has developed its Ten Absolute Standards aimed at making women more welcome. These include always offering assistance with luggage, serving women promptly in bars and restaurants, providing a choice of tables, and offering a choice of room location. 4 /….. A survey by Ramada hotels found that about 60 per cent of solo women travellers prefer to call room service rather than eat alone in a restaurant. Hyatt acknowledges this by trying to provide more imaginative and lighter meals on its room service menus. ”We also recognise the need for two tables in the room – one for eating and one for working, as businesswomen spend more time in the room,” says John Wallis, Hyatt’s vice – president for marketing. However, not all women find restaurants intimidating. Pamella Carvell, a former director of the Periquitto hotels group and now a hotel consultant, says that “the more experienced you are with staying in hotels, the easier it becomes knowing how to deal with hotel restaurants”. She says that gradually she has learned to spend more time eating in hotel restaurants rather in her room. 5 /….. “I plan my campaign in advance,” she says. “I get to the restaurant early to check out the table and set up a tab from the bar and make sure the maitre d’ and staff know that I am the host and not hostess. Then I make sure I’m sitting comfortably, with a drink, before my guests arrive.” Some hotels have tried introducing the American concept of a “captain’s table”, where single women guests (and men, too) dine together, although there seems little enthusiasm for this. Similarly, women – only hotels in London aimed at the woman business traveller have failed to make much impression. Part of the problem women executives find in hotels may be owing to the relatively few women general managers. (from THE SUNDAY TIMES) 2. Answer these questions about the article. a. Who are dissatisfied? b. What are the main concerns? c. How do the different hotel chains respond to them? 13

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d. What aspect of hotel hospitality do they find most annoying? e. How does Vanessa Cotton cope with entertaining male guests? f. What new ventures have proved unpopular? 3. Choose a title for the article and justify your choice. Rooms for Improvement Travelling Alone Problems in Hotels Vocabulary/Grammar 4. Read the text below about safe tourism. In each line there is one wrong word.Write the correct word in the space provided. Most resource-poor island states trying survive in the |…………. globalisation economy cannot afford to neglect the economic |…………. opportunities tourism offer. As they suffer from the continuing |…………. slide of international commodity prices, many has no alterna- |…………. tive but to offer their natural beauty – and chip labour costs |.………… to attract a tourist industry. Following the rules for sustainable |…………. tourism – while tough – could reduction the risks to the |…………. environment. Speaking 5. Work with a partner. Discuss the following: a. Tourism can have a beneficial effect by generating income and creating employment, but what about its effect on the environment? b. Why is it considered that ecological damage is being done not only in remote areas like Antarctica but in highly technological countries like Britain too?

SECTION 3 GLOBALISATION Preview 1. Discuss these questions. a. What do you understand by the term ‘global company’? Can you give some examples? b. Which companies do you know that have merged recently? 2. Match these terms with their definitions. 14

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a) b) c) d) e) f)

merger acquisition securities restructuring total shareholder return (TSR) earning per share 1) When one company gains control of another by buying the majority of its shares. 2) When two companies, combine to form one new company. 3) A way of assessing the value of a company for shareholders, it includes both dividend payments and the increase in value of the shares over the year. 4) Traditional way of assessing a company’s performance by dividing its profits by the number of its shares. 5) Investments, especially stocks, shares and bonds. 6) Changing the capital base of a company, i.e. the kinds of stocks and shares that comprise the company’s capital.

Reading 3. Mark these statements T (true) or F (false) according to the information in the texts. Find the part of the text that gives the correct information. 1) Most of the big mergers between Swiss companies took place before 1996. 2) The merger of Sandoz and Ciba was good news for the Swiss banks. 3) Investment banks earn a lot of money by giving advice on restructuring. 4) German companies are having to restructure because it is difficult to complete internationally with high costs at home. 5) Companies list on the New York Stock Exchange in order to increase capital at minimum cost. 6) European companies traditionally use earnings per share as a way of estimating value to investors. 7) Valuation techniques such as TSR are only used in the USA. TEXT A Plenty of Business for Banks Increasingly, big - ticket deals are being handled by foreign institutions Switzerland is one of the world’s most attractive M&A playgrounds. It has several world-class companies with plenty of cash to spend on acquisitions and a rapidly restructuring corporate finance business. 15

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Until a couple of years ago, the number of mega-deals could be counted on the fingers of one hand. But the market took off after 1996. That was the day Sandoz and Ciba, Switzerland’s second and third biggest pharmaceutical companies, announced they were joining forces to create Novartis. Until then, it had been unthinkable that two big Swiss companies, based in the same industry and city, would risk throwing thousands of people out of work by merging. The idea of one giant Swiss chemical company, or one global insurer, is no longer unimaginable. However, the Ciba/Sandoz press release sent shock waves through the Swiss banking establishment. It revealed that Morgan Stanley had served as bankers for Sandoz and J. P. Morgan had acted for Ciba. The only Swiss bank involved was UBS, and it was given the minor role of banker for the Swiss stock market. Until then, Swiss companies had relied on the Swiss bankers to manage their deals. The days when Switzerland’s most powerful bankers dominated the boards of Switzerland’s most powerful companies are over. A banker’s presence on a client’s board could prevent an investment bank from winning new advisory mandates. The restructuring of Switzerland’s pharma and chemical industries has probably led to more investment banking fees being generated over the past couple of years than had been earned in the past century. More recently, the restructuring has spread to the financial services sector and much of the lucrative advisory work has once again fallen to non-Swiss banks. (from THE FINANCIAL TIMES) M&A =Mergers and acquisitions

4. Complete the text with the words from the list: fresh, nature, remains, correspondence, allows, banks, language, banking, code. The strict ……….of business conduct and the confidential ………….. of business transactions carried out by the ….. is, of course, reflected in the …. correspondence. We may therefore expect to find a survival of the old, commercial …………. of the 19th century in their letters, and in fact, we do: this survival has indeed an advantage, viz., that through long acceptance, the phraseology is clear enough in meaning to all who have to deal with banking ……… . However, correspondence is taking on a ……… appearance; the time-honoured vocabulary ……, but the phrasing ……… a little warmth to creep into the cold words.

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TEXT B Growth’s Financial Complications A company that seeks to extend operations around the world needs new financial structures to match, says Martin Dickson When Hoechst, the Frankfurt – based chemicals and drugs group, listed its shares on the New York Stock Exchange, it was a symbolic acknowledgement that a company which aspires to be global in operations must also be global in its approach to finance. Intensifying international competition and high domestic costs are forcing German businesses – among others – into radical restructuring and a much greater reliance on global securities markets. For funding their global ambitions, multinationals increasingly accept that to achieve the lowest cost of capital, they have to tap the international markets. For many non – US companies, a vital element is an equity listing in the US, the world’s most liquid and efficient market. While most European companies still focus on traditional performance measures, US fashions are forcing them to look at new yardsticks, designed to measure the value they are creating for investors, such as total shareholder return (TSR). “If you’re a global company, new valuation techniques are just something you have to take on board,” says Nick Pasricha of Ernst & Young’s corporate finance practice, “because a proportion of your investors are subject to that influence.” (from THE FINANCIAL TIMES) 5. The split sentences below describe the changes that are taking place as a result of globalisation. Join the first of each sentence with the most appropriate second half. a. Global companies b. Corporate financial services c. Mergers and acquisitions d. If you are a global company e. Bankers are no longer f. Large corporations are less likely to 1) are taking place between large companies in the same industry. 2) want to trade on the international securities market. 3) depend on local banks to manage their deals. 4) present on the board of their client companies. 5) are increasingly international. 6) you have to accept the new valuation techniques.

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Vocabulary/Grammar 6. Complete the sentences. Use an appropriate word from the texts to complete each of these sentences. 1. When a company makes an official statement that is published in the newspapers, this is called a p… r… 2. If a company r… o… its bank, it means that it trusted it completely and would never use another bank. 3. The directors of a company, the people elected by shareholders to carry on the management of that company, are often called the b… 4. Requests to a bank to act for a company are called m... 5. When a company offers its shares for purchase by the general public, it gets a l… on the stock exchange. 6. A l… stock market is one in which investments can be traded quickly and easily. 7. Think of the best explanation for each of these words or phrases from the texts. 1) mega-deals 2) took off 3) joining forces 4) lucrative 5) aspires to be 6) tap the international markets 7) yardsticks 8) take on board 8. Complete the sentences with an appropriate preposition. 1) Morgan Stanley served …..bankers for Sandoz. 2) J.P. Morgan acted……….Ciba. 3) UBS was given the role ……….banker for the Swiss stock market. 4) UBS was the only Swiss bank involved………..the deal. 5) Most European companies still focus……….traditional performance measures. Speaking 9. Discuss what role the banks play in corporate financing in your country. 10. Make a list of some of the problems that global companies have nowadays. (You can include both those mentioned in the texts and any others you know about.) Discuss some of the solutions that companies are finding for dealing with these problems. 18

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SECTION 4 PROFIT FROM THE PROPHETS Preview 1. Discuss these questions: a. If you want to buy or sell shares, do you read the advice given by the stock market analysts? b. Do you think it is possible for investors to trade profitably on the basis of analysts’ recommendations? Why /Why not? Reading 1. Mark these statements T (true) or F (false) according to information in the text. Find the part of the text that the correct information. a. Brokers and university professors agree that stock market analysts are useful. b. Research in the 1970s showed that it was better to buy stock not recommended by analysts. c. In Barber’s study, stock recommended by analysts brought much higher than average returns. d. The best return on investment can be made by investing in small and medium-sized firms. e. To get good returns it is best not to buy or sell stocks very frequently. f. The cost of buying and selling can greatly reduce your profit. h. Small investors can profit from analysts’ recommendations, according to Professor Lehavy. 8. The writer concludes that analysts are worth their high salaries. Daniel Bogler GLOBAL INVESTIGATOR Profit from the Prophets Do analysts add value? Stock market practice and academic theory are sharply divided on this question. Investment banks and brokerage houses spend billions of dollars a year analyzing securities, presumably because they think it helps their clients generate superior returns. Yet if you believe, as academics do, that markets are responsibly efficient, then investors cannot trade profitably on the basis of public information, 19

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such as analyst recommendation, since all such data are instantly incorporated into share prices. Several studies carried out in the late 1970s backed the academics by appearing to show that the average stock which has no analyst following it actually outperforms the average stock that does. However, new research by Brad Barber, a professor at the University of California, Reuvan Lehavy, an accounting professor at Berkeley, and two colleagues, shows a different picture. Not only is their study larger and more rigorous than any previous one, it suggests that following analysts’ share tips can be hugely profitable. The four professors studied more than 360,000 recommendations made by more than 4,000 US equity analysts between 1985 and 1996. Each stock was given a rating – from one for a “strong buy” to five for a “strong sell” – based on the average advice of all analysts following it. The professors then constructed five portfolios, grouping the highest – rated firms into one, the next best into a second and so forth. They then monitored their performance, with stocks moving between them as they fell in and out of favour. The results surprised even the authors. The first portfolio of “strong buys” earned an average annual return of 18.8 per cent over the eleven years, beating a stock market index of 14.5 per cent. The last portfolio of “strong sells” underperformed dramatically, averaging only 5.8 per cent. To give their research a practical application, the authors then proposed a trading strategy: buy the first portfolio, sell the fifth and you should generate an annual average return of 12.2 per cent. Unfortunately there are two problems. The first is that the abnormal returns are most pronounced among small and medium-sized firms, which stands to reason since these are less well followed, giving analysts more room to add value. For the few hundred largest firms, comprising 70 per cent of the US market’s capitalization, the study finds no reliable differences between “buys” and “sells”. Second, to collect splendid returns requires a very active trading strategy, turning over your entire portfolio up to four times a year. The resulting transaction costs eat up virtually all of the extra return. However, “that does not make the research worthless,” says Professor Lehavy. Big institutions probably have lower transaction costs and could thus trade profitably. Even retail investors should buy highly recommended stocks and sell those out of favour. The billions spent on analysts seem a good investment after all. (from THE FINANCIAL TIMES) 3. Put the following sentences in the right order to make a text. a. The cost of doing so simply would be too great. b. No analysis can begin with all the available options in hand. c. Still, one would hope that attractive options would not be overlooked or, if discovered, not mistakenly dismissed. 20

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d. However, a sound decision framework should be able to uncover options in the course of the analysis. e. Decision makers cannot hope to identify and evaluate all possible options. Vocabulary/Grammar 4. Which of these words and phrases refer to a higher than normal return on investment? a. superior returns b. abnormal returns c. average returns d. splendid returns e. extra returns f. outperform g. underperform 5. Find a word or phrase in the text that has a similar meaning. a. Financial institutions which act as middlemen between people who want to buy or sell shares and share trades (b….. h…..). b. Gains from an investment (r…..). c. Suggestions to buy certain shares (s….. t…..). d. Value of all stock market gains over a year divided by the number of stocks involved (a… a….. r…..). e. Set of numbers that compares shanges in the values of shares with a fixed value (s….. m….. i…..). f. Policy or approach to buying and selling shares (t….. s…..). g. Total market value of all the stocks and shares issued (m….. c…..). h. Commission which you pay to dealers when you buy or sell shares (t….. c…..). 6. Choose the best explanation for each of these words and phrases from the text. a. backed the academics b. more rigorous c. fell out of favour d. stands to reason e. turning over your entire portfolio 7. Use the appropriate form of a word below to complete each sentence: (beat, earn, outperform, underperform, generate, monitor, comprise). a. The return on their share portfolio…………… the stock market index by 5 %. 21

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b. c. d. e. f. g.

The highest-rated stocks……….an average of 18.8 % over ten years. Analysts……………the performance of stocks over several years. Large companies…………………..70 % of the US market’s capitalisation. Analysts’ recommendations help investors to…………….higher returns. The lowest-rated stocks………………….dramatically. Stocks which had no analysts following then…..those that did.

Speaking 8. Summarise the main points from the article in your own words. 9. Give your own opinion about the value of stock market analysts. Writing 10. Write a short report on Professor Barber’s study in your own words. Use the following sub-headings: a. Purpose of study b. Method c. Results d. Discussion of results e. Conclusion

SECTION 5

ECONOMIC REPORTS Preview 1. Discuss these questions. a. When you assess the strength of a nation’s economy, what factors do you normally consider? b. If a nation has severe economic difficulties, what can it do? 2. Match the terms below with their definitions. 1. trade surplus 2. trade deficit 3. treasury bills 4. debt service 5. devaluation a. payment of interest on a debt b. reduction in the exchange value of a country’s currency c. instruments of government borrowing 22

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d. value of a country’s exports exceeds the value of its imports e. value of a country’s imports exceeds the value of its exports 3. How do you say the following numbers? Match the numbers with the definitions. a. $15⅓bn b. € 680,745 c. ⅔ d. $8,298 e. 5 : 4 f. 1.05km2 g. 298m3 h. ¥53-57m i) 400Gb j) 0.0012 % 1) just under 8 ⅓ 2) accurate to two decimal places 3) a fraction 4) a rough estimate/ a ballpark figure 5) a negligible proportion 6) somewhere in the region of 300 7) a six-figure sum 8) a round figure 9) in excess of 15 billion 10) expressed as a ratio Reading 4. Look quickly at the three texts given below and answer these questions. 1. Which country has a problem paying the interest on its foreign debts? 2. In which country is the trade surplus decreasing? 3. Which country has recently devalued its currency? 4. Which country is trying to keep inflation down? 5. Which country is hoping to increase its exports by 4 %? 5. Mark these statements T (true) or (false) according to the information in the texts. Find the part of the text that gives the correct information. 1. The Brazilian economy is in recession because of its high interest rates. 2. GDP in Brazil has been falling for the past six months. 3. The Brazilian economy has been in decline since 1992. 4. It is predicted that Brazilian exports will decrease. 5. The IMF has, for the present, discontinued payments to the Ukraine. 6. The Ukraine did not meet all of the terms of the IMF credit. 23

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7. The Ukraine government has only foreign debts. 8. The gap between Thailand’s imports and exports is increasing. 9. The decline in Thailand’s imports is slowing down. 10. Economists are happy about Thailand’s import figures. TEXT A Brazil’s High Rates Bring Recession By Geoff Dyer in Sao Paulo Brazil formally moved into recession at the end of the previous year as the high interest rate policy aimed at preventing a currency crisis caused the economy to show its worst annual record of economic growth since 1992. Gross domestic product fell 1.89 per cent in the fourth quarter compared with the same period the year before, the second consecutive quarter of negative growth. As a result, the economy grew by just 0.15 % last year, the worst result since the 0.54 per cent decline in 1992 and down from the 3.68 per cent growth of the year before. Interest rates were kept high throughout the fourth quarter. However, the government was forced to let the currency float in January, causing an immediate devaluation of 38 % against the dollar. With interest rates currently 39 %, monetary policy is now being kept tight to reduce the inflationary impact of the devaluation. Economists are predicting a fall this year of between 3 and 6 per cent in GDP, although some believe the economy could start growing by the end of the year. The government is forecasting a trade surplus this year of $6 - $7bn, compared to a deficit of $6.4bn last year. (from THE FINANCIAL TIMES) TEXT B UKRAINE’S EXTERNAL DEBT SERVICING Worries over IMF Loan Delay Ukraine may be forced to renegotiate part of its external debt service if a loan from the International Monetary Fund continues to be delayed past March, said Igor Mitiukov, Ukraine’s finance minister. He said he was confident the Ukrainian government and the IMF would agree on continued payment of the loan next month, which has been held up since November because of Ukraine’s failure to meet a number of conditions of the $2.2bn three-year credit granted by the IMF last August. 24

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But, if continued payments could not be agreed on, “we will be simply forced to begin negotiations with our external creditors,” he said. The Ukrainian government owes $1.9bn in external debt service this year, together with 1.5bn hryvnia in payments on domestic treasury bills. (from THE FINANCIAL TIMES) TEXT C THAILAND ECONOMY Trade Surplus Narrows Thailand’s trade surplus narrowed in January, a sign that exports – a key component of the economy – may revive in the coming months. The trade surplus in January was $816m compared with a surplus in December of $1.23bn. Exports fell 4.8 per cent compared with an 8.5 per cent decline a month earlier. Imports were also down 4.8 per cent year-on-year compared with a decline of 15.8 per cent in the previous month. Economists say the bottoming-out of the crucial import figure – this is the first single-digit decline in more than a year – offers hope for exports later this year as Thailand’s exportable goods traditionally have a high import content. The central bank forecasts 4 per cent growth in exports this year. Imports must pick up and the trade deficit must narrow for that target to be reached. (from THE FINANCILA TIMES) Vocabulary/Grammar 6. Find a word or a phrase in the texts that has a similar meaning. a. recession (n…………… g………………..); b. forecasting (p……………………); c. loan (………………………….); d. held up (d……………………..). 7. Choose the best explanation for each of these phrases from the text. a. let the currency float; b. monetary policy is being kept tight; c. be forced; d. single-digit decline; e. Thailand’s exportable goods have a high import content. 8. Replace the underlined items with words or phrases from the texts that have a similar meaning. 1. The Brazilian government has a plan of action to reduce inflation. 25

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2. 3. 4. 5. 6.

Brazil’s economy is in a state of extreme danger. GDP fell over two quarters, one immediately following the other. Ukraine will have problems paying interest to the people it owes money to. Exports are an important part of the economy. The trade surplus was $816m, whereas it was $1.2bn last year.

9. Use an appropriate verb from the texts to complete each sentence. 1. When you negotiate, you try to …………………..on terms. 2. It will be difficult to ……………the target of 4 % growth next year. 3. The IMF ………….credit to the Ukraine for a three-year period. 4. The government was unable to ……..the conditions that had been agreed. 10. Use an appropriate modal verb to translate the following sentences from Russian into English. 1. Если Украина примет антиинфляционные меры, то, возможно, через полгода она приобретет контроль над инфляцией. 2. Скорее всего из-за запоздалого введения в стране новой национальной валюты, масштабная программа государственных инвестиций, финансируемых из-за границы, потерпела крах. 3. Вряд ли свободная торговля даст положительные результаты уже на ранних стадиях реформы. 4. Очевидно, подъем экономики и ее последующий бурный рост наступили после глубокого кризиса. 5. Маловероятно, что правильное макроэкономическое управление и банковская реформа не заложили основу для роста частных инвестиций. Speaking 11. Describe the state of the economy in your country. If possible, find some recent economic figures in the form of charts or graphs and describe them. Writing 12. Write a short report on the economy of your country, or of another country that you know well. Points to remember: A report should consist of: a) an introduction which states the purpose and the content of your report, b) a main body where all information collected is presented clearly in detail (sub-headings, numbers or letters can be used to separate each piece of information) and c) a final paragraph which 26

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summarises the points mentioned before. If necessary, a recommendation can be included as well.

SECTION 6

PROFITABLE BANKS Preview 1. Discuss these questions. 1. How do banks make their profits? 2. What factors determine the profitability of a bank? Reading 2. Mark these statements T (true) or (false) according to the information in the text. Find the part of the text that gives the correct information. a. Barclays’ profits were higher than those of Lloyds TSB. b. Banks in the UK can make mire profit by charging higher interest on loans. c. The provision for bad debts for the main UK banks was much higher in 1992. d. The banks do not employ as many clerks as they did in the 1980s. e. Customers prefer to deal with machines rather than talk to bank staff. f. British banks are the most advanced in the world. g. British banks face a lot of competition from other institutions offering financial services. h. The British don’t complain very much about the service they receive from their banks. 3. Look quickly at the text and find the answers to the question. Which of the following reasons are given in the text to explain the British banks profitability? a. trading in bond markets b. reduction in the number of branches c. effective management d. reduction in the level of bad debts e. interest from loans to overseas customers f. large-scale processing of transactions g. competitive interest rates attracting more customers h. British customers preferring to stay with the same bank i. the strength of the economy 27

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Easy Money ‘Britain’s high street banks are extremely profitable – and widely criticized for their poor performance. What’s going on?’ asks George Graham Andrew Buxton, chairman of Barclays, ought to have looked a troubled man as he presented his bank’s annual results last week. In the last year, Barclays had lost a chief executive, dropped &205m on rash trading in the bond markets, another &153m on bad loans to Russian customers, and had let its operating costs run out of control. Yet Barclays somehow managed to make profits of &1.9bn. In the same year, Lloyds TSB reported a 14 per cent increase in its pre-tax profits to &3.29bn, equivalent to an after-tax return on shareholders’ equity of 33 per cent. And other British banks made similar profits. So where do these profits come from? And why have they not been lost to the competition from other institutions? The first part of the answer lies in the condition of the UK economy at large. In principle, bank profits are built for the most part on the volumes of loans they make and the deposits they collect; the margins between the interest rates for these two sides of their balance sheet gives them their profits (or losses). But in a mature market such as the UK, it is hard for a very large bank to expand loan and deposit volumes much beyond the level of the economy as a whole, and even harder to widen net interest margins. The biggest factor in bank profits has therefore been the level of bad debts. In 1992, when banks’ accounts showed the worst of the effects of the last UK recession, the seven principal banks set aside &6.45bn of bad debt provisions between them. Last year, the total for the same group is estimated to have been around &2.6bn. The other side of British banks’ profitability reflects an interplay between technology-based efficiency gains and customer inertia. Banks have become more efficient over the past decade, stripping out costs as new computer systems and telecommunications networks have enabled them to set up industrial-scale processing plants for tasks that used to be handled by clerks in the back of each branch. Branches are expensive to run, and the network has been whittled down from a peak of 21,800 branches in 1985 to around 15,000 today. Each branch, too, has fewer staff. One of the most frequent complaints is the disappearance of the human touch in the bank branch. Yet customers have reaped most of the benefits of the banks’ efficiency gains – cash dispensed at the touch of a button by machines, instant account balances, transfers and even loans available over the telephone. 28

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However, British banks remain years behind their French rivals in electronic banking. Nor is the UK’s money transmission system the most consumer-friendly in the world. Customers in New Zealand and Canada get deposits credited instantaneously, while in the UK they must wait days. Competition in financial services has been steadily increasing since the 1980s. Yet the British consumer is more likely to swap a wife (or husband) than a bank. With such undemanding customers, leading banks could have years of fat profits ahead of them. (from THE FINANCIAL TIMES) Which of the following examples of improved banking technology are mentioned either directly or indirectly in the text? a. ATMs b. smart cards c. credit cards d. telephone banking e. electronic banking Vocabulary/Grammar 4. Match these terms with their definitions. a. net interest margin b. provisions c. return on equity d. money transmission system 1. money reserved to cover bad debts 2. profit as a percentage of shareholders’ capital 3. difference between interest income and interest payments 4. method of transferring funds from one person to another 5. Replace the underlined items with words or phrases from the text that have a similar meaning. a. Banks are affected by the state of the UK economy in general. b. The UK has a very established loan market. c. It’s difficult for a large bank to increase loan and deposit volumes. d. The UK’s seven principal banks set aside about f6.5bn of bad debt provision. e. Banks have closed thousands of branches over the last ten years. f. Many routine banking tasks are dealt with by computer. g. A bank branch is expensive to operate. h. Technologically, British banks are behind their French competitors. 29

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i. Few people change banks in Britain. j. Most UK banks still make huge profits. 6. Choose the best explanation for each of these words or phrases from the text. а. troubled b. rash trading (line 8) c. let its operating costs run out of control d. customer inertia e. stripping out costs f. reaped most of the benefits (line 73) 7. Find a word or phrase in the text that has a similar meaning. a. total amounts or quantities v………………… b. system of local offices spread around the country b………………… n……………………. c. highest level recorded over a period p……………… d. designed so as to be of maximum benefit to the consumer c………………… f…………………….. e. when the value of a deposit is added to an account balance c………………………. f. banks with the biggest share of the market l……………….b……………… 8. Match the first half of each sentence with the most appropriate second half. Notice the words that are used in each sentence to mark a contrasting idea. These words are in italics. a. Barclays Bank had a troubled year b. Banks make a profit on their net interest margin c. British banks have introduced a range of technically – advanced services d. Canadian customers get deposits credited instantaneously 1. while UK customers have to wait a few days. 2. yet it managed to make a lot of profit. 3. but it is difficult for them to widen their margins. 4. but they are still behind the French in electronic banking. 9. Complete the text with the words from the list: expenditures, accounting, formula, costs, adequate, subsystem, data, incremental, borrower, overheads, budgetary. 30

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The bank may agree to finance incremental recurrent ………. , i.e., expenditures above a particular level established at an agreed time with a ……….. . Government……………. system may not distinguish between base and …………expenditures, particularly in the case of salaries, wages and related…………… .It is therefore necessary to agree with a borrower on ……………. means of identifying both ………… provisions and accounting ………….. that can provide for and report on these expenditures. The following steps could be taken: establishing appropriate accounting for special heads of expenditure, subcodes, ………….. and special reports; agreeing on accounting for only the main heads of expenditure concerned and developing a ………. for periodic application to total expenditures under those budget heads to obtain a reasonable apportionment of incremental expenditures; and continuously revising base and incremental ………….. . Speaking 10. How do British banks differ from banks in your country in the way they make their profits? 11. Which bank would you like to work in if you had such an opportunity? Justify your choice. Writing 12. If possible, find the annual results of a bank in your country and report on its profitability.

SECTION 7

ADVANCED POINTS BUSINESS PART 1 A. Modern business technigues When john left school he was desperate for a job so he took the first one he was offered – in telesales (1). He thought telemarketing (2) sounded quite glamorous but soon found that most of the people he phoned hated cold-calling (3) and put the phone down when he tried the hard sell (4). When he realised that the 31

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company made most of its money through the rather dubious techniques of inertia selling (5) and confusion marketing (6), he decided to leave and train as a hairdresser instead. a. Selling or marketing goods and services by phone. b. See note 1. c. Phoning people who have not requested a call in order to try to sell them something. d. Attempt to sell something by being very forceful. e. When a company behaves as if you agreed to buy something because you did not actually refuse it. f. Selling products and services in a package, in a way that makes it very difficult to work out which company is cheapest. B. Buying and selling Supermarkets sometimes sell an item very cheaply just so that they attract a lot of people into the shop where they will also buy more profitable items – the item being sold very cheaply is called a loss leader. If a company finds a niche market, it finds a specialised, small group of customers with particular interests that company can meet. People sometimes make a purchasing decision based on brand loyalty. (confidence in that particular make and a tendency always to choose it). If you shop around, you try different companies or shops to see which offers best value. If you buy something on approval, you have the right to return it if it is not satisfactory. If you have first refusal on something, the seller promises that you will be asked if you would like to buy it first, and only if you do not want it will it be offered for sale to others. If an item is said to come/go under the hammer, it is sold at an auction. (sale of goods or property where people make gradually increasing bids and the item is then sold to the highest bidder0. C. А business career Sally started her own catering business and this turned out to be very lucrative (1). However, she got increasingly irritated by all the red tape (2) involved in business and when a larger company suggested merging (3), she was interested. The two companies did not agree immediately on all the details of the takeover but they managed to reach a compromise (4) and hammer out a deal (5) without 32

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too much delay. In some ways Sally was sad that her company had been swallowed up (6) but she is now quite glad to bet free of the hassles of entrepreneurship (7).She has used the money raised by the sale of her capital assets (8) to buy a large house in the south of France. 1. 2. 3. 4. 5. 6. 7. 8.

Producing a lot of money. Bureaucracy (negative). Joining together to form one new company. Come to an agreement in which both sides have to give in a little bit on what they would have otherwise liked. Talk seriously and in detail until a business agreement is made. Taken over by a larger company (slightly negative). Involvement in business and taking financial risks. Buildings and machines owned by a company. EXERCISES

1. Match the two parts of these business collocations. 1) loss selling 2) capital refusal 3) confusion leader 4) first tape 5) hard marketing 6) inertia loyalty 7) brand assets 8) niche sell 9) red market 2. Look at A and B above. Fill the gaps in these sentences. 1) A unique painting will come ________________the hammer in London tomorrow. 2) It’s a sensible idea to shop_________________a bit before buying a computer. 3) Jeremy has promised me that, if he ever decides to sell his motorbike, I can have ____________________ refusal on it. 4) I don’t mind trying a hard sell on a person who has already expressed an interest in our products, but I hate _________________ - calling. 5) I wasn’t sure whether the desk would fit into my office so I bought it _____________ approval. 6) If you want to make a __________________ for something in auction you first have to catch the auctioneer’s eye. 33

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7) If you work in telesales you spend most of your day on the _____________ . 8) They produce special clothes for people who like to do yoga and have really captured this _____________________ market. 3. Replace the underlined words with a word or phrase from C with a similar meaning. 1) As their business interests were really very similar, it did not take them very long to come to an agreement. 2) If you want to go into the import and export business, you had better be prepared for a lot of bureaucracy. 3) At the moment they are discussing the possibility of their companies becoming one. 4) Sportswear is a very profitable business to be in at the moment. 5) Only a few people have a real talent for the risk – taking of opening a new business. 6) A number of small companies have been taken over by that large multi – national in the last six months. 4. Answer these questions about the words and phrases given in A, B, C above. 1) Find three words or phrases that have negative associations – for most people at least. 2) Name two things that might count as capital assets. 3) Find three expressions that relate to ways of buying things. 4) Find three expressions that relate to ways of selling things. 5) Find three expressions that are based on a metaphor and explain what the metaphor is and why it is appropriate. PART 2 A. Here are some important words for talking about business agreements. to put in/submit a tender: to win a tender: to meet/miss a deadline: a penalty clause: an outstanding account: to default on a payment: to acknowledge receipt:

to supply a written offer to do a job for an agreed price; to be given a job, after submitting a tender; to supply / fail to supply something by the agreed time; part of a contract specifying what will happen if an agreement is broken; an account that has not yet been paid; to fail to pay something that had been agreed; to inform the sender when something is received; 34

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to ship an order: to expire:

to send out goods that have been ordered – nothing to do with boats; what is sent is the shipment; to end – of something that was agreed for a fixed period; the noun is expiry

B. Reading humorous books about work can be a fun way of learning new words on the topic. Here is an example from a popular book which makes fun of the modern workplace. Some Rules of Management (from a Handbook for Managers) 1) 2) 3) 4)

The problem is not a lack of resources, it’s a lack of meetings. If you’re talking, you’re communicating (1). Low morale (2) is caused by character flaws (3) in your employees. If 10people can complete a project in 10 days, then 1 person can complete the project in 1 day. 5) Teamwork (4) is when other people do your work for you. a) this verb suggests that listeners understand what the speaker is trying to convey b) amount of confidence felt by a person or group c) weaknesses d) working together for a common purpose C.

Here are some things that people have said about business.

We demand that big business give the people a square deal; in return we must insist that when any one engaged in big business honestly endeavors to do right, he shall himself be given a square deal. (Theodore Roosevelt) It is difficult but not impossible to conduct strictly honest business. What is true is that honesty is incompatible with the amassing of a large fortune. (Mahatma Gandhi) The growth of a large business is the survival of the fittest [………] The American Beauty rose can be produced in the splendour and fragrance which bring cheer to its beholder only by sacrificing the early buds which grow up around it. (John D. Rockefeller)

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The salary of the chief executive of the large corporation is not a market award for achievement. It is frequently in the nature of a warm personal gesture by the individual to himself. (Lord Justice Harman) Accountants are the witch-doctors of the modern world and willing to turn their hands to any kind of magic. (Lord Justice Harman) British management doesn’t seem to understand the importance of the human factor. (Charles, Prince of Wales) EXERCISES 1. Rewrite these sentences using the word in brackets. 1) Do you have many accounts which have yet to be paid? (outstanding) 2) Until what date is your contract valid? (expire) 3) Please let us know when you receive our payment. (acknowledge) 4) It is very important that you complete your work by the agreed time. (meet) 5) We would like to invite companies to send us proposals as to how they would do the job and what they would charge for it (submit) 6) It is company policy to take legal action against customers who fail to pay their accounts. (default) 2. Look at B above. Complete the sentences using one of the words. Employee flaw lack morale project resources 1) Joanna is working on a very interesting…at the moment. 2) Unfortunately, there’s a…in your reasoning. 3) What used to be called Personnel is now called Human… . 4) The new manager is doing his best to raise…in the office. 5. Sadly our new product has met with a total…of consumer interest. 6. We are extremely sorry to lose Matt as an… . 3. Which of the people quoted in C is making each of these points? 1) Top businessmen often award themselves bonuses regardless of their performance. 2) It is impossible to be both rich and honest. 3) Managers don’t pay enough attention to the people who work for them. 4) Large businesses succeed by destroying small businesses. 5) Companies must treat customers fairly; then government will treat companies fairly too.

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Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

4. Match the parts of the collocations from C. 1) a chief a fortune 2) a personal of the fittest 3) a square business 4) the survival factor 5) an award gesture 6) to turn executive 7) the human deal 8) to amass your hand to 9) to conduct for achievement 5. Choose one of the collocations from exercise 4 to fit each of these gaps. Jack is now the ……………………………..(1) of a large company. He managed to…………………………… (2) by designing some computer software which sold all over the world. He’s a talented man, prepared to…………………… (3) any job that needs doing. He is good to his employees, always giving them…………………… (4) because he knows how important …………………… (5) is if you want ……………….. (6) successfully. Last year he won ………………………..(7) in business. In a remarkable………………..(8), he gave his prize money away his employees.

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Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

LITERATURE 1. Evans V. Enterprise 4 : coursebook : Intermediate / Virginia Evans, Jenny Dooley. – Newbury : Express Publishing, 1997. – 198 p. 2. Jacob M. English for International Tourism : course book : Upper Intermediate / Miriam Jacob, Peter Strutt. – Harlow : Longman, 1997. – 127 p. 3. Jacob M. English for International Tourism : workbook : Upper Intermediate/ Miriam Jacob, Peter Strutt. – Harlow : Longman, 1997. – 96 p. 4. Johnson C. Marketleader. Banking and Finance. Business English / С. Johnson. – Harlow : Longman, 2006. – 96 p. 5. McCarthy M. English Vocabulary in Use: Advanced / Michael McCarthy, Felicity O’Dell. – Cambridge : Cambridge University Press, 2003. – 315 p. 6. Work Hard, Play Hard, Stay Fit: American Lifestyles Mosaic / М. Г. Лебедько [и др.] – М. : АСТ : Астрель, 2007. – 70 с. : ил. – (Изучаем Америку).

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Учебное издание

THE WORLD OF BUSINESS Учебное пособие для вузов Составитель Чичеренкова Татьяна Александровна

Подписано в печать 15.10.2009. Формат 60×84/16. Усл. печ. л. 2,3. Тираж 50 экз. Заказ 1315. Издательско-полиграфический центр Воронежского государственного университета. 394000, г. Воронеж, пл. им. Ленина, 10. Тел. 208-298, 598-026 (факс) http://www.ppc.vsu.ru; e-mail: [email protected] Отпечатано в типографии Издательско-полиграфического центра Воронежского государственного университета. 394000, г. Воронеж, ул. Пушкинская, 3. Тел. 204-133

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