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Impact of trade restrictions
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1. The 1980s have also been atime of complexity for economic policy makers in both developed and developing countries. Increasing unpredictability has been manifested in the unilateral adoption of trade restrictions specific to countries and products, and in the appearance of massive and often distorting flows of funds within and across international currency and commodity markets. Associated with these phenomena have been interrelated problems arising from currency misalignments, persistent payments in balances, an uneven distribution of international liquidity, and net outflows of financial resources from many developing countries.
2. Both policy-makers and entrepreneurs are being challenged by an acceleration in the pace of structural changes which are very difficult to harness. These changes can be traced to a number of underlying factors, the most important of which are the impact of scientific advance and applied technology, and government policy. These factors are affecting production, consumption and trail patterns; producing far reaching developments in the service sector, particularly financial services, and in commodity markets; significantly altering employment patterns; and leading to shifts in international competitiveness.
3. Many countries developed and developing alike, including the least developed countries are investing substantial efforts in adjusting their economies to these new realities in pursuit of their national objectives. They are also reappraising the respective roles of the public and private sectors in the economy. However, while some have made progress in recent years in reducing or eliminating growth retarding distortions and rigidities by enhancing the structural flexibility of their economies, much remains to be done.
Упражнение 2. Ответьте на вопросы.
1. What was the result of structural changes in the 1980s?
2. What factors were affecting production?
3. In what way were developed and developing countries trying to adjust their economies to new conditions?
4. What countries were reappraising their respective roles in the public and private sectors of the economy?
5. What were the main problems for economic policy makers in the 1980s?
Упражнение 3. Найдите в тексте слово funds и уточните его значение.
Упражнение 4. Вставьте подходящее по смыслу слово или словосочетание в предло-жения.
pace / consumption / objective / shift / the public sector
1. The role of... in Russian economy is diminishing.
2. The... of National development must be clearly formulated.
3. The... of production growth is being discussed at the conference.
4. The... of basic commodities is steadily increasing.
5. The recent years have seen... to market economies in many countries.
Упражнение 5. Найдите в тексте однокоренные слова для следующих слов:
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to develop, to restrict, investment, competitive, nation.
Упражнение 6. Найдите в тексте информацию о факторах, которые влияют на производство.
Упражнение 7. Озаглавьте каждый абзац текста. Составьте его план. Перескажите текст с опорой на план.
Упражнение 8. Составьте к тексту аннотацию.
TEXT 3
Упражнение 1. Прочитайте текст и приведите из него как можно больше инфор-мации на русском языке.
Why Stock Prices go up and down
1. If you didn't know better, you might think the stock market had a mind of its own. Simply watch the stock prices for a week and there may be a chance that you'll see them drop or rise sometimes by dramatic amounts. Trying to make sense of those shifts might seem difficult, but closer examination would reveal that stock prices are shaped by concrete forces. Stock analysts, in fact, make their living charting these forces and their effects on companies, industries and national and international economies. An understanding of these forces can do more than help you formulate an investment strategy it will also help you see how events and trends can shape everything from the availability of goods and services to job opportunities.
Supply and demand
2. There's an old saying in Wall Street that a stock is worth what somebody is willing to pay for it. And that's true the price of a stock is determined by buyers. As they gain new information, investors decide whether they are willing to pay more for a stock or less. Their changing perceptions continually push stock prices up or down. Simply put, the price of a stock or for any product or service, for that matter is determined by supply and demand. The supply of stocks is based on the number of shares a company has issued, or sold to the public. The demand for stocks is created by people wanting to buy those shares from the people who already own them. If people think they will make money on a stock, they will want to buy it.
3. But here's the catch: supply is limited, and not everyone who wants to own a company's stock can. The more that people desire to own a stock, the more they will be willing to pay for it. High demand for a stock pushes up its price. Similarly, as the value of a stock increases, owners are more reluctant to sell it. The rise continues until prospective buyers decide the price has gone too high. Then, fewer people are willing to buy the stock at the high price. Stock owners who are anxious to sell must lower the price at which they are willing to sell. The stock's price falls until investors believe the stock is again worth the price at which owners are willing to sell.
4. The laws of supply and demand explain why stock prices fluctuate. But how do investors and analysts arrive at their decisions as to whether a stock is worth buying or selling at a given price? Above all, they examine the financial health of the company offering the stock. Investors are not likely to put a high value on stock in a company that's going to lose money. They look for a business with a history of making strong profits and consistently paying healthy dividends.
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5. While history is important, investors also analyze a company's future prospects.
A company with a poor profit history might have a promising future, and one with a good history might be on the way down. Therefore, careful investors also review how a company fares against its competition and whether it's being run by experienced, responsible people who keep up with current trends. If a company is viewed by potential investors as increasing efficiency or producing new, innovative products, its stock is likely to rise in price. Alternatively, trouble on the horizon damaging lawsuits, threats of a strike, more intense competition, or more stringent regulation can depress the value of a company's stock. When a major oil company announced that it was filing for bankruptcy, for instance, the value of its stock dropped 11 per cent.
6. A report that someone or some company is trying to buy a certain business usually pumps up that business' stock prices. That's because the purchaser has to buy a majority of the stock to gain control of the company. To do so, the suitor must persuade stockholders to sell their stock by offering an attractive price for their shares. Sentiment may also count. For example, when the owners of the Boston Celtics (USA) basketball team offered shares of stock in 1986, analysts suggested that the stock was overvalued. But investors most of them Celtic fans had a high regard for the team and were willing to pay the price to be associated with it. Another important factor to consider is the health of a company's whole industry.
7. A company's stock prices may go up or down depending on whether investors think its industry is about to expand (grow bigger) or contract (grow smaller). For example, a company may be doing well financially, but if its industry is declining, investors might question the company's ability to keep growing. In that case, the company's stock price may fall. Many industries expand and contract in cycles. For example, home building declines when interest rates rise.
Economic trends
8. In addition to events surrounding a specific industry or company, analysts carefully watch what they call economic indicators – general trends that signal changes in the economy. A key indicator is the change in the rate of economic growth as measured by the Gross National Product (GNP). GNP measures the total production of goods and services in our economy. If it is rising, then short-term business prospects are improving. Another important indicator is the inflation rate. Inflation occurs when prices are rising rapidly. During an inflationary period, a company's costs may rise faster than it can increase its prices; so its profits shrink.
9. Also, the inflation rate has a major influence on another key indicator, interest rates. Rising interest rates mean that the government, businesses and consumers must pay more to borrow money. As a result, the government's budget deficit increases, businesses may delay their plans for new projects, and consumers don't spend as much. That can set the stage for a recession a period of slow economic growth. Analysts also monitor the budget deficit – the gap between the money the government takes in and the money it spends. When the deficit grows, the government has to increase its borrowing of money that would otherwise be available to businesses to expand and consumers to spend.
10. Many other indicators signal changes in the economy. Among them are stock prices, unemployment rates (the percentage of workers who can't find jobs), and changes in the value of the currency of the country (the amount of foreign currencies that can be purchased for each ruble). These indicators are more than just numbers. They point to changes in the way ordinary people spend their money and, in turn, how the economy is likely to perform. If unemployment rates are falling, or if people are getting good values for their money, they are probably going to feel optimistic about the economy. They are more likely to spend money, benefiting companies and stock prices.
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World and national events
11. Nothing alters people's attitudes toward saving and investing more than their perceptions of a major news event. For example, when a nation has declared war, stock prices may go up. That's because a country at war needs armaments, supplies for troops, spare parts, and huge amounts of fuel. So companies gear up to produce and sell more goods. News of other events can push stock prices down. If fighting between Iran and Iraq, for example, flares up in the Persian Gulf, U.S. stock prices may drop. That's because fighting may decrease the supply of oil coming from that region. As a result, oil may become more expensive and the cost of all U.S. goods that rely on oil or petroleum products may increase.
12. People are reluctant to invest unless they feel confident about the future of the economy. If investors aren't sure how a major event will affect the nation's economy, they're likely to hesitate about investing in securities. For example, if investors are uncertain of a new president's attitude toward business, stock prices may drop while investors await developments. You probably have heard the terms «bull market» or «bear market» many times without really thinking what they mean. A bull market is a period during which stock prices are generally rising. A bear market is a period during which stock prices are generally falling. Each of these is fueled by investors' perceptions of where the economy and the market are going.
13. If investors believe they are in the midst of a bull market, they will feel confident that prices are going up. Their own confidence helps to keep stock prices rising. During a bear market investors believe stock prices will fall. They hesitate to invest in stocks, and their own concerns help keep stock prices down. A bull or bear market can last anywhere from several months to several years. Many forces influence people's perceptions of the future and make stock prices go up and down. For the stock market to work well, investors must perceive that not only do they have a good chance of making money on their investments, but that all investors are treated equally.
TEXT 4
INJECTIONS
An injection is simply an addition to the circular flow of income, which does not arise from the spending of households. It was unrealistic to assume earlier that there would be no such additions. These additions or injections will, of course, increase the size of the circular flow and thus the level of activity in the economy. There are three recognized ways in which funds can flow into an economy. They can be generated through:
§ Investment;
§ Government spending;
§ Export sales.
Fig.1 – Additions to Circular Flow of Income
Investments
Investment is expenditure on productive capital goods. That is, goods which can be used to produce other goods and services. Thus, investment is usually held to be expenditure on factories, machinery and other physical assets. It is important to realize that economists use the word investment in a different context to the layman. An economist referring to investment does not mean the purchase of paper financial assets such as stocks or shares. Clearly, if the ownership of a company's shares is transferred from one UK citizen to another there is no overall impact on the economy.
Investment can be categorized into net investment and gross investment.
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Net investment is investment, which actually increases the nation's stock of capital goods. It is such investment that enables the economy to grow. However, some investment is necessary to replace capital stock that is worn out or obsolete. This loss of value of assets is called depreciation. When this replacement is added to the net investment the total achieved is termed gross investment.
You should note that investment increases the circular flow since it comprises extra spending that has not originated in the circular flow. The main influences on the amount of investment that takes place are:
§ the rate of interest since firms often have to borrow to undertake the investment;
§ the firm's expectation about the future behavior of the economy.
If they believe the economy will boom and the level of economic activity will increase, then they are more likely to enjoy increased sales. They may well decide to invest in new machinery or in a new factory. On the other hand, if the level of investment declines then there will be less injection than previously into the economy and the rate of growth of economic activity (or the national income) will fall. Economic statistics show us that over the last few decades the level of gross investment in the UK economy has fluctuated. This will have been one of the factors affecting the level of national income and the environment in which businesses operate.
Government Expenditure
Government expenditure takes many forms and, particularly over the last 50 years or so, has been a very substantial total. This heading covers spending by both central government and local authorities. Government spending results in an injection of funds into the circular flow.
Let us take as an example a decision by the Department of Transport to build a new motorway. This will lead to a variety of spending, which would not have taken place otherwise. The authorities will have to employ surveyors, lawyers, accountants and construction workers and will have to purchase large quantities of construction materials. All of the spending generated in this way will be an addition or an injection to the circular flow.
Government spending can, of course, take many other forms. Major financial items are the provision of health and social security benefits. The latter tends to put money directly into the hands of people who need it badly and who are, therefore, likely to spend all or most of it in the near future. If it so wishes the government can use its own expenditure to rapidly affect the level of injections and thus the circular flow. Pursuing such policies, however, can have undesirable side-effects.
Exports
Exports are an injection because they result in income entering the UK's circular flow as a result of the spending decisions of foreign households, firms and governments. Notice that this spending by foreign households is a loss (or withdrawal from) their domestic circular flows.
Britain is a major trading nation and, as such, can be described as an open economy. It exports approximately one-third of all the goods and services it produces. The amount the UK imports varies but over time will be roughly the same proportion. The UK's trade is recorded in the balance of payments figures, which are published monthly and then collected into annual accounts. If you look at the UK's trade figures you will see that rarely, if ever, does the value of exports equal the value of imports.
The balance of payments accounts are split into two broad sections: the current account, which records imports and exports of goods and services; and the capital account, which records international monetary flows in and out of the UK, such as foreign loans and investment in the UK.
Exports have always been important to the UK economy and are indisputably an engine of economic growth. They provide domestic employment not only in the exporting industry but also in the industries, which supply components and raw materials to that industry. Exports bolster the circular flow and promote employment in a range of industries. They also stimulate innovation and competition and generate a satisfying standard of living. Most of the world's most prosperous economies are successful exporters, notably Japan and Germany. Few isolated economies have been economically successful.
Слова и выражения к тексту:
| injection | вливание (напр., денег в экономику) |
| to arise from | проистекать, являться результатом |
| to assume | предполагать, считать |
| thus | таким образом |
| they can be generated through | это может происходить посредством... |
| assets | имущество, активы |
| layman | непрофессионал, неспециалист |
| paper financial assets | имущество, вложенное в ценные бумаги |
| stock | акция, ценная бумага; запас, ассортимент |
| there is no overall impact on the economy | большого влияния на экономику это не оказывает |
| net investment | чистые инвестиции |
| gross investment | валовые капиталовложения |
| worn out | изношенный |
| depreciation | обесценивание (денег), снашивание (в результате износа и морального устаревания) |
| total | целое, сумма, итог |
| to term (syn. to call) | называть |
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Тема по специальности УИ
Слова и выражения к тексту:
| for the sake of [seIk] | ради, в интересах |
| to organize [':gənaIz] | организовывать, осуществлять |
| to award [«'w:d] | награждать, присуждать |
| to apply [«'plaI] | внедрять |
| competitive [k«m'etItIv] | конкурентоспособный |
| to be ahead [ə 'hed] | быть впереди |
| technique [tek'ni:k] | техника |
| enterprise ['entəpraIz] | предприятие |
| on the base of [beIs] | на основе |
| demand [dI 'ma:nd] | спрос |
| proprietorship [prə'praIətəSip] | собственность |
| private ['praIvIt] | частный, личный |
| business ['bIznIs] | торговое предприятие |
| institution [ÇInstI 'tju:Sən] | учреждение |
| the lack [ðə læk] | нехватка |
| field of economics [fi:ld əv Ikə'mIks] | область экономики |
| strategical and business planning [strə'ti:dZIk(ə)l ənd 'bIznIs 'plænIN] | стратегическое бизнес-планирование |
| to realize ['rIəlaIz] | понимать ясно |
| Science City [ÛÛsaIəns'sItI] | Наукоград |
| to work out [wə:k 'aut] | разработать |
| еntrepreneurship [Çntr«pr«'n«:SIp] | предпринимательство |
Упражнение 1. Найдите соответствующие эквиваленты английским выражениям:
| 1) in almost every field of economics | a) ради |
| 2) highly qualified specialists | b) быть вовлеченным в практическую работу |
| 3) to be interested in smth… | c) быть способным поддержать и расширить |
| 4) to be able to support and extend … | d) высококвалифицированные специалисты |
| 5) to be award with … | e) быть способным поддерживать и расширять |
| 6) for the sake of … | f) оставаться конкурентоспособным |
| 7) it means to create and promote … | g) почти в каждой области экономики |
| 8) to remain competitive | h) быть удостоенным звания |
| 9) to manage investment projects | i) интересоваться чем-либо |
| 10) to be engaged in practical work | j) управлять инновационными проектами |
Упражнение 2. Прочитайте текст и устно переведите его.
INNOVATIONS MANAGEMENT
Let me introduce myself to you. My name is ….. I’m … years old. I’m a second-year student of Biysk Technological Institute of the Altai Technical University. Let me explain in some words why I have chosen this speciality.
Nowadays the lack of high quality specialists in almost every field of economics is obvious. Highly qualified specialists in marketing, strategical business planning, project management and financing control are required. As I was interested in Mathematics, Economics and Informatics at school, I decided to choose the speciality of Innovation Management because it is modern, actual and well-paid. Now I realize that my choice was right. The qualified specialists of Innovation Management are able to support and extend competitive positions of a company in the market. Since our town is awarded with a status of the Science City, an innovative development strategy has been worked out and is being realized now.
Speciality of Innovations Management was arranged at the Institute to prepare specialists of the high quality for the sake of the Science City. The teaching is organized on the base of the Innovations Management Chair. The course of studying lasts for 5 years after which graduates are awarded with the qualification of the economist-manager.
Innovations management means to create and promote new goods to the market, apply modern technologies and management ways. It is a constant search of new innovations for the business to remain competitive or even to be ahead.
Specialists of innovations management provide the practical realization of science achievements, techniques and technologies to organize the production of the competitive goods and services. The tasks being solved by the specialists are the following:
− to create and promote new goods and services to the market;
− to plan and realize technological development of the enterprise;
− to manage investment projects and financial flows;
− marketing research;
− to work out business plans and to manage innovations projects, etc.
The teaching staff includes not only research workers but also those engaged in practical work. This fact greatly increases the competitiveness of the graduates at the labour market.
The graduates will be in great demand of any enterprise and any form of the proprietorship (state or private one). They can work at different industrial enterprises, in research institutions, businesses, trade firms, etc.
The curriculum of this speciality provides students with deep knowledge in the field of innovation entrepreneurship, management of innovations processes, protection of intellectual property, investment planning etc. At the Institute we are taught various general and special subjects such as Maths, History, Informatics, Sociology, Philosophy, Foreign Language, Investments Projecting, Taxes, Contingency Plan Administration, Price Formation, System Analyzing and Decision Making, Financing and Credit, Economics Theory, Marketing, Tax Calculations, etc. The course of studying is organized in such a way, that the graduates will posses the skills in innovations implementing.
Such specialists are needed not only for scientific and technical institutions of the Science City, but also for the successful development of the whole region. That is why I can say it is a speciality of future.
Упражнение 3. Найдите в тексте абзацы, в которых содержится следующая информация:
1) various general and special subjects that are taught at the institute;
2) the tasks that the specialists of Innovation Management must solve;
3) about the city that is awarded with a status of the Science City;
4) the course of study on the specialty of Innovation Management at the institute;
5) where the graduates of the specialty can work.
Упражнение 4. Ответьте на вопросы по тексту.
1. What specialists are required in almost every field of economics?
2. What are the qualified specialists of Innovation Management able to do?
3. What chair is responsible for the teaching of the Innovation Management specialists?
4. What does Innovation Management mean?
5. What tasks do the specialists solve?
6. Where can the graduates of the speciality work?
7. What subjects do the students of the speciality study?
8. Why is it a specialty of future?
Упражнение 5. Вставьте слова по смыслу в предложения.
promote / graduates / work out / well-paid / speciality / competitive
1. I decided to choose the … of Innovation Management because it is modern, actual
and ….
2. The specialists are able to support and extend … positions of a company in the market.
3. The … are awarded with the qualification of the economist-manager.
4. The innovation management specialists are able to … business plans and innovations projects.
5. Innovation Management means to create and … new goods to the market.
Упражнение 6. Найдите в тексте эквиваленты следующим выражениям:
разрешите представиться, студент-второкурсник, стратегическое и бизнес-планирова-ние, управление проектами, современный, актуальный, стратегия инновационного развития, статус Наукограда, организовано на базе, присваивается квалификация, пути управления, поиск новых инноваций, обеспечивать практическую реализацию, произ-водство конкурентоспособных товаров, управлять инвестиционными программами, вовле-кать в практическую работу, любая форма собственности, защита интеллектуальной собственности, специальность будущего.
Упражнение 7. Прочтитеследующие диалоги и выучите их наизусть:
I
- What did the Dean speak about?
- He spoke of how to become a good student.
- Did you find the talk useful?
- Yes, very much. He said: «Every student should remember that being a student is a full-time job and like any other job it requires time, effort, concentration and appropriate techniques and habits».
- And do you agree with him?
- I think, he is right.
II
- When will your exams begin?
- Oh, they are not far off. Here is the time-table of my exams.
- You are nervous, aren’t you?
- Of course, I am. Everybody is.
- Are you reading for your exams now?
- Yes, I am. I always take notes of the lectures but I can fail in the mathematics, I’m afraid.
- Let’s hope for the best. Good luck.
III
- Hello, are you taking your exams?
- I’ve already passed my last exam.
- What did you get in mathematics?
- I got a four. You passed your exams, too, didn’t you?
- No, I didn’t. I failed in physics.
- What a pity. I am so sorry for you. How did it happen?
- It’s difficult to explain. My memory failed me and I forgot the simplest things. I think it was the result of a sleepless night.
- That’s what I always told you. Don’t put off your work to the very last. What are you going to do now?
- I’ll have to take my exam in physics for the second time. I’ve just been to the faculty office and the dean has already set the time.
- I hope you’ll get a good mark next time. Good luck.
Упражнение 8. Ответьте на вопросы, используя информацию из текста, где это возможно.
1. What year student are you?
2. What Institute do you study at?
3. What faculty do you study at?
4. What are the three forms of education at your Institute?
5. Is it difficult to study and work at one and the same time?
6. What faculty can one choose when entering the Institute?
7. Who is in charge of training students?
8. What equipment is the Institute provided with?
9. What general and special subjects do you study at the Institute?
10. What is your aim?
11. Where can you work after graduating from the Institute?
12. Where do you dream to work?
13. What is the most important criterion (factor) for you in choosing a job?
14. How many exams do you take each session?
15. Who delivers lectures to you on different subjects?
16. How long does the course of studies last?
17. When will you graduate from the Institute?
18. What is your future speciality?
Упражнение 9. Расскажите о вашей специальности, используя выражения из текста.
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