proliferate

• … of talk shows in our TV is simply the blind keeping up with western fashion.

• The number of franchise businesses … quickly nowadays.

4. Deplete

• Resources which can be used only once such as coal, oil, minerals are called … resources.

• The … of bank reserves lead bankruptcy.

5. tax

• The collection of taxes on the same income by two countries is called double … .

• Usually the accountants use all the legal options the tax code allows in order to minimize the income subject to … .

6. Depend

• Franchising does have some drawbacks and one of them is the lack of … .

• Don’t make the franchisee too … on the contract, allow innovations in the business.

• While preparing a marketing plan don’t forget that it is greatly … on the country, culture and requirements of organization.

7. Fraud

• If you are proposed a famous Swiss watch for a hundred of dollars be sure it’s a fake and the deal will be … .

• Success in doing business abroad often depends on ability to anticipate cultural differences and recognize a ….

• The … managed to use secret information and get access to the vaults of repository.

Outstanding Economists.

Exercise 4. Read the information about Nobel Prize Winners. Put the verbs in the sentences in the right form.

Kahneman’s main findings concern decision-making under uncertainty, where he has demonstrated how human decisions may systematically depart from those predicted by standard economic theory.

In his own experimental work, he has demonstrated the importance of alternative market institutions, e.g., how the revenue expected by a seller depends on the choice of auction method. Smith has also spearheaded “wind-tunnel tests”, where trials of new, alternative market designs – e.g., when deregulating electricity markets – are carried out in the lab before being implemented in practice.

Vernon l. Smith

1. Traditionally, economic theory /rely/ on the assumption of a "homo œconomicus", whose behavior is /govern/ by self-interest and who /be/ capable of rational decision-making.

2. Economics has also /regard/ as a non-experimental science, where researchers – as in astronomy or meteorology – /have/ to rely exclusively on field data, that is, direct observations of the real world.

3. During the last two decades, however, these views /undergo/ a transformation.

4. Controlled laboratory experiments /emerge/ as a vital component of economic research and, in certain instances, experimental results /show/ that basic postulates in economic theory should be modified.

5. This process /generate/ by researchers in two areas: cognitive psychologists who /study/ human judgment and decision-making and experimental economists who /test/ economic models in the laboratory.

6. The Nobel Prize of 2002 /award/ to the innovators in these two fields: Daniel Kahneman and Vernon Smith.

Exercise 5. Translate into English

1. Большинство предприятий малого бизнеса – это предприятия, взаимосвязанные с владельцем и его образом жизни, предназначенные обеспечить владельцу нормальное проживание.

2. Быстро растущие предприятия – это рисковый бизнес с амбициозными целями и задачами.

3. Люди, начавшие свой бизнес, должны обладать проницательностью, настойчивостью, преданностью, умением слушать и слышать советы и способностью быстро восстанавливать физические и душевные силы.

4. Предприятия малого бизнеса обеспечивают рабочие места, создают новые товары и услуги, обеспечивают потребности крупных корпораций и поставляют специальные товары и услуги.

5. Свой бизнес вы можете начать с нуля, купить действующий концерн или вложить деньги в франчайзинговое предприятие.

6. Для успеха в малом бизнесе необходимы деловые возможности, соответствующая структура владения, хороший план, соответствующее финансирование, современные методы ведения бизнеса.

7. Предприятия, взаимосвязанные с владельцем и его образом жизни, могут существовать за счет личных сбережений, займов у друзей и родственников, банковских займов.

8. Франчайзер имеет ряд преимуществ, как то: малый риск, широкое признание марки, массовая реклама, финансовая помощь, обучение, поддержка.

9. Однако франчайзер должен отчислять ежемесячную плату франчайзору-владельцу, сдерживать свою независимость, ограничивать сомнительные сделки, и, самое главное, иметь значительный финансовый капитал.

Exercise 6. Revise your knowledge of the lesson and speak on the following:

1. Differentiate between lifestyle businesses and high growth ventures.

2. Name four characteristics of people who succeed in operating their own business.

3. Name four important functions of small business in the economy.

4. Identify three ways of getting into business for yourself.

5. Name five factors that are critical for success of a small business.

6. List four sources of financing for lifestyle businesses.

Exercise 7. Think and comment on the following statements:

I’m contra globalization, i.e. americanization, that’s why I’m against McDonalds.

I support globalization.

Unit 12

International Trade

Pre-reading tasks

• Look at this pictures and describe them.

• Who is the international trade profitable for?

• Is the international trade benefit or evil?

• Can modern world exist without trade?

• How can trade influence national traditions,

habits, and self-awareness?

Whenever money is the principle object of life

with either man or nation, it is both got ill, and

spent ill, it does both harm in the getting and

spending.

John Ruskin

Comment on the above words quotation.

Vocabulary

Exercise 1.

Match English and Russian equiwalents

Read text I

_{Text I}

International trade

Without international trade we would all be much poorer. There would be some items like bananas, pineapples, coffee, cotton clothes, foreign holidays and uranium that we would simply have to go without. Then there would be other items like wine and spacecraft and space exploration that we could only produce very inefficiently.

International trade has the potential to benefit all participating countries.

Totally free trade, however, may bring problems to countries or to groups of people within those countries. Many people argue strongly for restrictions on trade. Textile workers see their jobs threatened by cheap imported cloth. Car manufacturers worry about falling sales as customers switch to Japanese models or to cheap Eastern European ones. Are people justified in fearing international competition, or are they merely trying to protect some vested interest at the expense of everyone else?

And there exists a partial form of free trade. This is where a group of countries agree to have free trade between themselves, but still impose trade restrictions on the rest of the world. Free trade may be realized under the various titles of customs unions, free trade areas and common markets.

Countries have different endowments of factors of production. They differ in population density labour skills, climate, fertility, raw materials, capital equipment, etc. These differences tend to persist because factors are relatively immobile between countries. Obviously land and climate are totally immobile, but even with labour and capital there are more restrictions on their international movement than on their movement within countries. Thus the ability to supply goods differs between countries.

What this means is that the relative costs of producing goods will vary from country to country.

When one country can produce a good with less resources than another country it is said to have an absolute advantage in that good.

A country has a comparative advantage over another in the production of a good if it can produce if at a lower opportunity cost: i.e. if it has to forgo less of other goods in order to produce it.

If countries are to gain from trade, they should export those goods in which they have a comparative advantage and import those goods in which they have a comparative disadvantage. Given this we can state a law of comparative advantage: provided oppor­tunity costs of various goods differ in two countries, both of them can gain from mutual trade if they specialize in producing (and exporting) those goods that have relatively low opportunity costs compared with the other country. Countries use various methods to restrict trade, including tariffs, quotas, exchange controls, import licensing, export taxes and legal and administrative barriers. Countries may also promote their own industries by subsidies.

Sometimes countries may have definite objectives in restricting trade such as remaining self-sufficient in certain strategic products, not trading with certain countries of which it disapproves, protecting traditional ways of life or simply retaining a non-specialized economy.

Arguments for restricting trade are often fallacious. In general, trade brings benefits to countries. And there are, as we said above, so called preferential trading arrangements.

Free trade areas is where member countries remove tariffs and quotas between themselves, but retain whatever restrictions each member chooses with non-member countries.

A customs union is like a free trade area, but in addition members must adopt common external tariffs and quotas with non-member countries.

A common market is where member countries operate as a single market. Like a customs union there are no tariffs and quotas between member countries and there are common external tariffs and quotas. But a common market goes further than this. A full common market includes a common system of taxation, governing production, employment and trade, free movement of labour, capital and materials and of goods and services.

COMPREHENSION CHECK

Exercise 1. Answer the questions.

13. Does totally free trade exist?

14. Why is free trade existence impossible?

15. What is international trade?

16. Does international trade promote progress or regress? Why?

17. What forms of international free trade do you know?

18. What factors can influence a comparative advantage?

19. What does the law of comparative advantage read?

20. What are preferential trading arrangements?

Your Opinion.

If you were a Minister for Foreign Trade:

1. What countries would you include into the list for preferential trading arrangements?

2. Why would you include these countries?

3. What goods can be included into our comparative advantage? Why?

Exercise 2. Fill in the gap with an appropriate word.

Free ¹ … consists simply in letting people ² … and ³ … as they want to buy and sell. It is trade ⁴ … that require force, for they consist in ⁵ … people from doing what they want to do. Protective ⁶ … are as much applications of force as are blockading squadrons, and their ⁷ … is the same – to prevent trade. The difference between the two is that blockading squadrons are a ⁸ … whereby ⁹ … seek to prevent their enemies from trading; ¹⁰ … are a means whereby nations ¹¹ ... to prevent their own people from ¹² … .

Exercise 3. Put the verb in brackets in the right tense.

In many respect Toyota ¹(be) a victim of its own success. Until the 1960s Toyota ²(view) as little Japanese company. In 1970 it ³(produce) 1.6 million vehicles and by 1990 the figure ⁴(increase) to 4.12 million. In the process Toyota ⁵(rise) to become the third largest automobile company and the largest automobile exporter in the world. For most of its history Toyota ⁶(export) automobiles to the world market from its plants in Japan. But by early 1980s political pressures and economic regulations in the U.S.A. and Europe ⁷(force) an initially reluctant Toyota to rethink its importing strategy. Toyota ⁸(agree) already to “voluntary” export restraints with the U.S.A. As a result the company ⁹(establish) a 50/50 joint venture with General Motors. The Toyota it ¹⁰(be) a chance to find out whether it could built quality cars abroad using American workers and suppliers. Fearing that European Union ¹¹(limit) its expansion to the European market Toyota ¹²(join) other Japanese automobile companies to keep their share under 11% until 2010. Despite its apparent commitment to expand its US and European operations, it not ¹³(be) all smooth sailing. A major problem ¹⁴(be) building an overseas supplier network that ¹⁵(be) comparable to Toyota’s Japanese network. By now 70% of Toyota cars ¹⁶(assemble) in Europe and less than 40% in the U.S.A. To achieve this Toyota ¹⁷(embark) on an aggressive education aimed at familiarizing its local suppliers with Japanese production methods.

Text II

Read the text and be ready to discuss it. Use the vocabulary given below.

How to avoid business blunders abroad

Doing business in another country may be extremely tricky. Companies run the risk of failing spectacularly if any detail is overlooked. For example, merely asking the right question is sometimes crucial. In one reported case, a paper manufacturing firm neglected to inspect some wooded land for sale in Sicily prior to its pur­chase. Only after the company had bought the land, built a plant, and hired a labour force did it realize that the trees were only knee high and not suitable for mak­ing paper. The plant had to import logs.

The importance of packaging. Numerous problems result from the failure to adapt packaging for different cultures. Sometimes only the colour of the package needs to be altered to enhance a product's sales. White, for instance, symbolizes death in Japan and much of Asia; green represents danger or disease in Malaysia. Obviously, use of these colours in these countries might produce negative reactions to products.

The language barrier. Some product names travel poorly. The American Mo­tors Corporation's Matador car might conjure up im­ages of virility and strength in America, but in Puerto Rico its name means "killer," a notably unfavourable connotation in a place with a high traffic fatality rate. When the gasoline company Esso realized that its name means "stalled car" in Japan, it understood why it had had difficulties in that market.

Of course, some company names have travelled quite well. Kodak may be the most famous example. A research team deliberately developed this name after searching for a word that was pronounceable every­where but had no specific meaning anywhere. Exxon is another name that was reportedly accepted only after a lengthy and expensive computer-assisted search.

Problems with promotions. In a U.S. promotion, one American company had effec­tively used the phrase "You can use no finer napkin at your dinner table." It decided to use the same com­mercials in England because, after all, the British do speak English. To the British, however, the word "nap­kin" or "nappy" actually means "diaper." The ad could hardly be expected to boost sales.

Local customs. Because social norms vary so greatly from country to country, it is extremely difficult for any outsider to be knowledgeable about all of them. Therefore, local input is vital. Many promotional errors could have been averted had this warning been heeded.

A marketer of eyeglasses promoted spectacles in Thailand with commercials featuring animals wearing glasses. It was an unfortunate decision, however, be­cause in Thailand animals are considered a low form of life; humans would never wear anything worn by an animal.

Translation problems. Many international advertising errors are due to faulty translations. The best translations embody the general theme and concept of the original ad campaign but do not attempt to be precise duplicates of the original slo­gan. Pepsi learned this lesson when it reportedly learned that its slogan "Come alive with Pepsi" was lit­erally translated into German as "Come alive out of the grave with Pepsi." And in Asia, it was translated as "Bring your ancestors back from the dead." General Motors encountered problems in Belgium, where "Body by Fisher" was translated as "Corpse by Fisher."

The reason for research. Proper market research may reduce or eliminate most international business blunders. Market researchers can uncover needs for product adaptations, potential name problems, promotional requirements, and proper mar­ket strategies. Good research techniques may even un­cover potential translation problems.

Many blunders have already been made by interna­tional marketers, but they need not be repeated by others. Awareness of differences, consultation with local people, and concern for host country feelings re­duce problems and save money.

Vocabulary to Text II

Role-Play

Work in pairs. One of you is a manager of a world famous company (General Motors, Toyota, McDonald’s, Wal-Mart, Marks & Spenser, etc.), the other is a journalist.

Manager

You must be ready for interview about your company, its access to foreign markets and problems with cultural differences, language barrier, translation difficulties, and promotion of the goods. Also you’ll have to substantiate the necessity to provide market research before launching your production in this or that country. Give information about the preliminary activity of the company in the country and people’s attitude to it.

Journalist

You must expect the manager to present only their achievements and positive gains. Give him possibility to do that and ask about problems, organizational difficulties, and national differences in apprehension your brand, its advertising and other aspects in the product promotion. Be a little aggressive in gaining information.

The following introductory words may be helpful for you.

Standing your ground

Well, as I said before . . .

As I've already said . . .

I see what you mean, but the point is. . .

What I'm saying is . . .

I think you've misinterpreted what I said.

You’re missing the point. No, that's not what I said. It's (not) company policy to . . . You must realize that. . .

Pushing your point

Let me come back to the point about . . .

I'm not sure you've really answered my question. Are you saying that. . ,?

To return to Ms (Mr.) . . .

I'd just like to get this clear in my mind , . .

Let me put this another way . . .

Surely, that means . . .

Perhaps you can explain how . . .

Would you say that. . .?

Some useful language for interviewer and interviewee

Giving an opinion

(strong) I'm convinced we should use an agent.

I'm sure the foreign market has big potential.

I have no doubt the new factory will make life for local people a lot easier.

(neutral) I think we need a bigger sales force.

As I see it, we must build up our middle management.

In my opinion, we should offer a bonus.

(tentative) It seems to me we should try to diversify.

I tend to think our designs are old-fashioned.

I feel our competitors are more market-orientated.

Expressing reservations

You have a point, but...

I agree to some extent, but..

I suppose you 're right, but..

Maybe that's true, but...

Disagreeing

(strong) I don't agree with you at all.

I totally disagree.

You 're quite wrong about that.

It's out of the question.

Of course not.

Rubbish!/Nonsense!/No way!

(neutral) I don't really think so.

I can't see that, I'm afraid.

I'm afraid I can't agree with you there.

(tentative) Mmm, I'm not sure.

I tend to disagree.

Do you really think so?

Is that such a good idea?

Agreeing

(strong) I totally agree.

I agree entirely with …

I quite agree.

I couldn't agree more.

Absolutely!/Precisely!/Exactly!/

(neutral) I agree with you.

I think you 're right.

That's true.

(tentative) Mmm, maybe you're right.

Perhaps.

I tend to agree.

I suppose so.

Checking comprehension/re­formulating

To put that another way, ...

If I follow you correctly, ...

So what you’re saying is...

Does that mean... ?

Are you saying... ?

Making a suggestion

(neutral) I suggest (that) we buy from …

I would suggest (doing something)

My suggestion would be to ...

(tentative) We could sell the business.

Perhaps we should make a takeover bid.

It might be worth setting up a joint venture.

What about appointing a new agent?

Why don’t you (we, they) do something?

Exercise 4. Translate from Russian into English using vocabulary from texts I and II

1. Страна, обладающая абсолютным преимуществом, может производить любой определенный данный продукт более эффективно, чем любая другая страна.

2. Страна, обладающая сравнительным преимуществом, может производить любой определенный данный продукт более эффективно, чем какой-либо другой продукт.

3. Основными формами международного бизнеса являются: импортирование; экспортирование; лицензирование; франчайзинг; совместные предприятия; предприятия, полностью принадлежащие иностранному владельцу (wholly owned facilities).

4. Чтобы защитить свою национальную промышленность, страны используют тарифы, квоты, субсидии и ограничительные стандарты.

5. Без международной торговли страны были бы гораздо беднее.

6. Зона свободной торговли обеспечивает полное отсутствие тарифов, квот и других ограничений для стран-участниц.

7. Страны общего рынка имеют общую систему законов о регулировании производства, налогов, занятости, торговли и т.д.

8. Вести бизнес в другой стране может быть крайне сложно.

9. Многочисленные проблемы возникают от незнания культуры другой страны, национальных обычаев, традиций, языка.

Exercise 5. Write a review (250 words) about doing business in one of the foreign countries. Use real data from newspapers, magazines.

Keys to unit 7

Pre-reading tasks.

2. Match.

COMPREHENSION CHECK (text I)

Exercise 1

1-F; 2-T; 3-F; 4-T; 5-F; 6-T; 7-T; 8-T; 9-T; 10-T.

COMPREHENSION CHECK (text II)

Exercise 1

1-j, 2-a, 3-n, 4-b, 5-h, 6-k, 7-l, 8-m, 9-c, 10-f, 11-g, 12-e, 13-i, 14-d.

Exercise 2.

Exercise 3.

1. swisher; 2. pile; 3. running costs; 4. habitat; 5. hunting money; 6. canny owner -occupiers; 7. thriving businesses; 8. business skills; 9. unprofitable ventures; 10. the commonest customers; 11. he is already snapped up; 12. robust challengers.

Keys to unit 8

Pre-reading tasks.

COMPREHENSION CHECK (text I)

Exercise 2.

1. People don’t refuse to pay taxes.

2. This scheme is considered to be progressive.

3. No, they don’t. Firms pay corporation tax on the profit they earn.

4. No, people pay inheritance tax to the government when they inherit the late’s assets.

5. People pay NICs.

6. In Britain VAT makes up 17.5%.

7. Government should raise levy duties on health threatening goods such as tobacco, alcohol etc.

8. Vice versa. These goods influence badly any nation’s health.

9. Nouveau riches in former countries of the Soviet Union try to evade taxes by all means.

COMPREHENSION CHECK (text II)

Exercise 1.

1-j; 2-a; 3-k; 4-b; 5-h; 6-l; 7-d; 8-m; 9-e; 10-p; 11-n; 12-g; 13-o; 14-q; 15-c; 16-f; 17-i.

Exercise 2.

1. it’s too complicated and doesn’t attract foreign investors.

2. companies especially.

3. lowering marginal tax rates, scrapping tax breaks broadening tax base and simplifying the taxation system.

4. being a structured, rational system.

5. by Germany’s federal system.

6. the Country’s Constitutional Court.

7. corporate - and income tax rates must be about the same.

8. incomes above €8,000, €16,000, €40,000 respectively.

9. may cut revenues by €24 billion in the first year.

10.proportionally higher than people with bigger incomes.

11.treats labour and capital income differently.

LEXICAL AND GRAMMAR EXERCISES

Exercise 1.

1. Taxes are usually spent for particular social benefits and state security.

2. Police, army, state medical healthcare, even government are kept due to our taxes.

3. Inheritance tax in some countries Switzerland, Holland makes up about 40% of all assets.

4. Income tax is paid from all kinds of individuals’ incomes such as wage, rent, dividends and interest.

5. Local taxes are usually used by communities for their needs.

6. Not only manufacturers but individuals too have sometimes to pay customs duties.

7. Money received from excise duties especially on tobacco, alcoholic drinks, gambling should be spent on education of children in the spirit of high morality.

8. Many riches try to ignore and evade taxes, but it is legally prosecuted.

Exercise 2.

1-got; 2-shared; 3-was published; 4-found, should commit; 5-stressed; 6-was found; 7-studied, published; 8-refuted; 9-proved.

Exercise 3.

1. has started; 2. bought; 3. was displaying; 4. slipped; 5. fell; 6. had had; 7. was broken; 8. was; 9. exceeded; 10. to do; 11. had ordered; 12. left; 13. packed; 14. put; 15. sent; 16. had written; 17. asked; 18. congratulated; 19. had made; 20got; 21. had unrapped; 22. saw.

Exercise 6.

1. A major source of revenue for government is taxation.

2. Taxation may be broken into direct and indirect.

3. Direct tax is on individuals or firms and indirect tax is on goods and services.

4. Taxation has major implication for organisations in terms of business activities, the labour market, and prices.

5. Fiscal policy is a set of measures where the government manipulates tax and expenditure to achieve particular policy objectives.

6. For instance, the government may raise taxation to reduce the disposable income of individuals.

7. This step, in its turn, reduces their spending.

8. Hence, rise in taxation could be used as a policy to cut inflation.

9. Any increase in income tax will reduce demand in the economy and reduce sales.

Keys to unit 9

2.

1. owner, ownership, to own, ownerless (бесхозный, беспризорный); 2. partnership; 3. corporation, corporatism; 4. accountable, accountancy, accountant, accounting; 5. legalise, legally, legalism; 6. employee, employer, employment, unemployed, unemployment, unemployable (нетрудоспособный); 7. establishment, established (признанный); 8. manager, management, managerial, manageress (женщина-руководитель уст.), managing; 9. contribution, contributor, contributory; 10. freeborn, freedom, freelance (свободный художник, дизайнер и т.д., не работающий постоянно на одну какую-либо компанию); 11. flexible, flexibility, flexi time (не фиксированный жесткий график работы, однако общее количество рабочих часов в неделю остается неизменным).

3.

1. partnership; 2. proprietorship; 3. sole proprietorship; 4. corporation; 5. corporations.

COMPREHENSION CHECK

Exercise 1.

Fill in the chart

Task 1.

structure – an organization or system made up of many parts that work together.

supervise – to be in charge of a person or group of people and check that they are working correctly.

responsible – someone who is in charge of people and must make sure that what they do is right.

accountable – someone in a position when people have the right to criticize you or ask you why something happened.

The definitions of the rest are in the texts of unite 9.

LEXICAL AND GRAMMAR EXERCISES

Exercise 1.

1. will start; 2. will have been looking for; 3. has just graduated; 4. got; 5. are you going to; 6. ‘ll have; 7. worked; 8. ‘ll start; 9. will you occupy; 10. will be; 11. shall be working; 12. will take; 13. Do you agree; 14. shall have been working; 15. hope; 16. will have finished; 17. will you do; 18. Don’t know.

Exercise 2.

1. competitive, competitor’s, competition; 2. successes, succeeded, successful; 3. necessity, necessary, unnecessary; 4. innovation, innovative, innovate; 5. management, managers (2); 6. employ, employer, unemployment, employees; 7. leader, leadership, led; 8. divide, division, dividing.

Exercise 3.

1. authority; 2. organization; 3. sole proprietorship; 4. supervised. 5. authority, accountable; 6.company (corporation); 7. delegate his authority; 8. accountable, supervision; 9. partnership.

Exercise 4.

1. has been working; 2. started, is; 3.did he achieve; 4. stayed, was working; 5. put; 7. was always seeking; 8. didn’t feel, had been standing; 10. was interested; 11. was; 12. were scrambling, were producing; 13. could; 14. would be able; 15. would do, would make, would become; 16. realized, became; 17. has been doing.

Keys to unit 10

2. Match the Russian and English equivalents.

6. With business plan and money as investment.

7. 1. planning; 2. written statement; 3. basic idea; 4. goals; 5. objectives; 6. thought; 7. personnel; 8. marketing; 9. facilities; 10. suppliers; 11. distribution; 12. detailed budget; 13. operating costs; 14. income; 15. expenses; 16. cash flow; 17. search; 18. sources of funds; 19. debt; 20. interest; 21. equity; 22. entitles; 23. profit.

10. 1.is; 2. exceeded; 3. started, had developed; 4. must be respected; must be given, must be pursued; 5. had been followed; 6. studies, will agree, has had; 7. had initiated; 8. had created, had generated; 9. will promote.

Keys to unit 11

McDonalds 1,4,5,6,7

Holiday Inn 2,3,8,9

2.

COMPREHENSION CHECK

Exercise 1

1F; 2T; 3T; 4F; 5T; 6F; 7T; 8F; 9F; 10T; 11T; 12T.

TEXT II

Exercise 1

1. • French people protest against American culture and globalization.

   • Break for lunch in France is rather long: from one to two hours.

   • Some problems with French unions touched upon low wages.

2. • Denis Hennequin introduced many French innovations into the menu adapted to local tastes.

   • He established a “food studio” and a “design studio” instead of drag restaurants where people can and want to stay longer and invited a French three-star chef.

   • McDonald’s. France buys 80% of its products from French farmers.

3. • To adopt to local tastes

   • To add a healthier items to staple of burgers and fries

   • To fight with obesity by changing the menu

Exercise 2

head office

core business

fast food

combative union

dwarf rivals

tree star chef

do well

fast casual

chief executive

top job

Exercise 3

1. investing, investment

2. franchise, franchisee, franchising, franchisor

3. proliferation, proliferate

4. depletable, depletion

5. taxation, taxes

6. independence, dependent, depends

7. fraudulent, fraud, fraudster.

Exercise 4

1. has relied, is governed, is; 2. has been regarded, have had; 3. have undergone; 4. have emerged, have shown, should be modified; 5. has been generated, have studied, have tested; 6. was awarded.

Exercise 5

1. Most small businesses are lifestyle businesses, intended to provide the owner with a comfortable living.

2. High-growth ventures are businesses with ambitious goals and ob­jectives.

3. People who go into business for themselves should have vision and persistence, dedication, ability to listen and hear advices and resilence.

4. Small businesses provide jobs, bring out new goods and services, supply the needs of large corpora­tions, and provide specialized goods and services.

5. You can start a new company from scratch, buy a going concern, or invest in a franchise.

6. Success in small business requires a promising busi­ness opportunity, an appropriate ownership structure, a good plan, adequate financing, and modern business methods.

7. Lifestyle businesses may be fi­nanced through personal savings, loans from friends and relatives, commercial bank loans.

8. A franchisee has the advantages of low risk, wide name recognition and mass advertising, financial help, and training and support.

9. However, franchisee should make monthly payments to the franchisor, constrain his independence and limit questionable deals and, what is the most important, to own startup capital.

Keys to unit 12

Exercise 1. Vocabulary

Exercise 3.

1. has been; 2. was viewed; 3. was producing; 4. had increased; 5. rose; 6. has exported; 7. were forcing; 8. had already agreed; 9. established; 10. was; 11. would limit; 12. joined; 13. has not all been; 14. has been; 15.is; 16.have been assembled; 17. embarked.

Exercise 4.

1. A country with an absolute advantage can produce a given product more efficiently than any other nation.

2. A country with comparative advantage can produce a given product more efficiently than any other product.

3. The main forms of international business activity are importing, exporting, licensing, franchising, joint ventures, wholly owned facilities.

4. To protect their domestic industries countries use tariffs, quotas, subsidies and restrictive standards.

5. Without international trade countries would be much poorer.

6. Free trade area provides complete removal of tariffs, quotas and other restrictions for member countries.

7. Countries of the common market have common systems of laws, regulating production, taxation, employment, trade etc.

8. Doing business in another country may be extremely tricky.

9. Numerous problems appear from ignorance the culture of another country, national habits and traditions, language.

Список литературы

1. Goodman S.F. “Economics” Macmillan Business Masters, 1998.

2. Rachman David J. and others “Business Today” Random House< New York, 1997.

3. Rutherford Donald “Routledge Dictionary of Economics” Padstow Cornwall, 1995.

4. Sloman John “Economics Prentice Hall, 1994.

5. “Small Business Management” Hodder & Stoughton, 2005

6. David Held “ Political Theory Today” 1995, T.J. Padstow, Cornwell.

7. Carls W.L. Hill “International Business” Mc Graw Hill, 1999.

8. “Macmillan English Dictionary for advanced learners” Macmillan Education, 2002.

9. “Webster’s New Collegiate Dictionary” A Merriam- Webster, Springfield, Massachusetts, U.S.A., 1999.

10. “The Sunday Times” (newspapers, 2006).

11. “The Economics” (magazines, 2006).

Content

1. UNIT 7 ……………………………………………………………………3

2. UNIT 8 ……………………………………………………………………22

3. UNIT 9 ……………………………………………………………………37

4. UNIT 10 …………………………………………………………………..55

5. UNIT 11 …………………………………………………………………..66

6. UNIT 12 …………………………………………………………………..83

7. KEYS ……………………………………………………………………..97

   • UNIT 7 …………………………………………………………….97

   • UNIT 8 …………………………………………………………….99

   • UNIT 9 …………………………………………………………….103

   • UNIT 10 …………………………………………………………...106

   • UNIT 11 …………………………………………………………...108

   • UNIT 12 …………………………………………………………...112

8. СПИСОК ЛИТЕРАТУРЫ ………………………………………………114