Vocabulary

entail – влечь за собой, вызывать (syn. – to cause)

adjust – приспособить, приспособиться

proficient – зд. знающий, опытный, осведомленный

dispersed – рассеянный, разбросанный, удаленный

posting – пост, назначение

QUESTIONS AND ASSIGNMENTS

1. What is a dominant feature of business in the 21st century?

2. What are the difficulties of international management?

3. Summarize the contents of the text and try to reproduce in 8-10 sentences.

36. The problem of inflation in russia

The purpose of this text is to show what has happened to the rate of inflation of Russia for the past years. After investigating the results of the last year, it can be stated with confidence that the country’s deepest economic recession of its transition to a market economy has been completely overcome. Inflation in 2005 was about 9%, its lowest level in 15 years. Moreover, from 2000 to 2005 consumer demand has grown by 12% each year which is a good sign of modern economy.

Russia possesses many valuable natural resources. However, many resources are located in remote and climatically unfavorable areas that are difficult to develop and far from Russian ports. For nearly sixty years, the Russian economy operated on the basis of centrally planned economy. Russia’s economy is difficult to be measured in comparison to other countries due to its high rate of inflation and price-fixing. Inflation refers to the rise in prices of goods and services. The rate of inflation is measured by calculating the percentage price increase in goods and services, usually over a year. Inflation means that the demand increases faster than producers can supply the goods people want to buy.

Two fundamental and interdependent goals – macroeconomic stabilization and economic restructuring – marked the transition from central planning to a market-based economy (in 1990). Opening domestic markets to foreign trade and investment, thus linking the economy with the rest of the world, was an important aid in reaching these goals. In October 1991 a program of radical economic reforms was established, which supposed a number of macroeconomic measures to achieve stabilization. It demanded sharp reductions in government spending, public investment projects, defense, and producer and consumer subsidies. All this caused further inflation.

The slowdown in inflation in the first half of 1998 was due to a strict monetary policy adopted because of the deepening financial crisis. In 2001, the reduction in inflation was mostly due to a seasonal decline in food prices. Higher inflation in 2005 than in 2004 occurred due to increases in utilities prices early in the year.

The primary source of inflationary pressures in Russia remains the huge imbalance of payments. As oil prices grow so do the potential pressures on inflation.