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Текст 4.

Tourism as the Branch of Economy

The economic development of some countries is mainly based on the tourist industry. Financial flows generated by international tourism have become essential factors of the economic growth for many countries.

Let’s consider some economic trends that have affected the development of tourism as a mass industry. The first necessary component of tourism is modern means of rapid and inexpensive transportation. Tourism began with the building of railways. Steamships also increased tourism. However in more recent times, automobiles and airplanes have become the major means of transportation.

Industrialisation has produced other conditions necessary for tourism, for example, the appearance of a large number of people with the amount of disposable income (income above or beyond the basic expenses).

Another important condition is urbanization – the growth of large cities. Residents of big population centres take more holiday trips than residents of rural areas.

Economic development of the sun-and-sea areas depends much on the near tourist markets. Such countries gain a large part of their income from tourism. It should be noted that tourism benefits not only from hotels, restaurants and transport, but also from many commercial establishments and even from the producers of such products as souvenirs, sunglasses, video cameras and swimming clothes.

Another attraction of the tourist industry for economy of many countries is that it is a labour-intensive industry. It requires a large number of workers for the people who are served. Tourism generates many jobs that are not usually considered within the industry itself – jobs in construction, manufacturing and merchandising.

In conclusion, international experience shows that tourism remains a hostage to general economic trends. Meanwhile the world economy promotes the progress in the tourist industry.

Answer the Questions:

1. What are the factors of the economic growth for many countries?

2. What are the main economic trends that have affected the development of tourism as a mass industry?

3. What did tourism begin with?

4. In what way did industrialization affect the development of tourism?

  1. 5. What does the term “disposable income” mean?

  2. 6. Why is urbanisation an important condition for the development of the tourist industry?

  3. 7. In what way do the sun-and-sea areas depend on the tourist markets?

  4. 8. Why is the tourist industry defined as “labour-intensive”?

  5. 9. In what fields does tourism create working places?

10.What does international experience show?

Текст 5. - Current Market Trends

Задание 1. Ознакомьтесь с содержанием данного текстового материала и ответьте на следующие вопросы:

1. What information in the text "Current Market Trends" interested you?

2. Is this material actual and up-to-date? Give your comments.

3. Why do you think students must work individually?

Text5. Current Market Trends

The global market of the 21st century is a turbulent, dynamic and rapidly developing world. New market forces have replaced the old ones. Companies implement new technologies, forms of sale, and strategies for changing the world around us. New products, new forms of business organisation and new business regulations are emerging. To be competitive, companies invest a great deal of time and money researching new products and their targeted buyers. So, when innovative products are launched in the market, they are snapped up by buyers, rather than having to be sold at a discounted price. New forms of business organisation are multinational companies and private-public partnerships. New regulations are the ones concerning the protection of competition, deregulation of market, economic decentralisation, support of research, and support of domestic corporations. Global markets bring an opportunity for growth, not only for industry giants but for all companies if they have enough resources. National boundaries tend to be irrelevant; the corporate headquarters might be anywhere. Every company wants to be recognised as the leading provider of values for customers, employees and shareholders in its field.

To be competitive in the global market economy a company should be responsive to the customer’s needs, making the customer's satisfaction the top priority. A company must follow the demographic and technological changes, investigate new market segments and new needs appearance. In order to draw out new products a company must define how to satisfy these new needs and wants, to understand what products or services the customers need, and what the products characteristics must be.

A company must regularly evaluate existing products or services as well, improve the quality, performance and reliability, rationalise the production, and develop a perfect delivery system.

Building a brand and a positive company image gives a company a competitive advantage and a good experience in public relations. The management of the company should monitor the price and value relationship, and estimate the employees level of performance. It is necessary to gather information about the key competitors in the market place, to analyse the competitors’ advantages and weaknesses and to develop the strategy how to be better.

A company must have a well-developed ability to decide where, when and how to compete. These decisions require the knowledge of market trends and competition current affairs of the company as well as a highly qualified staff.

Answer the questions:

1. Why do we say that the market of today is a turbulent, dynamic and rapidly developing world?

2. Why do companies invest a great deal of time and money researching new products and their targeted buyers?

3. What forms of business organisation do you know?

4. What is a top priority for a company which wants to be in the global market economy?

5. What must a company investigate when it is launching a new product?

6. What must a company evaluate, improve and develop in order to be competitive?

7. What do brands and a positive company image give to the company?

8. What information should a company gain to develop the strategy of how to be better?

9. What should a company do become competitive?

10. Why must the staff of the company be highly qualified?

Текст 6. -

Задание1. Ознакомьтесь с содержанием данного текстового материала и ответьте на следующие вопросы:

1. What information in the text "Railway Systems in Market Economy" was new to you?

2. Why do you think this material is actual and up-to-date? Give your comments.

3. Where do you think students can get additional materials? Text 6.

Railway Systems in Market Economy

Nowadays railway systems play an important transport role. To do so they must be punctual, provide high-density services, and be in harmony with the environment. In order to cope with the requirements of the market economy railways introduce new methods of management, commercial activities and tariff policy. Simultaneously, they build new high speed tracks and reconstruct the old ones. Railways renovate their fleet and put it into operation. Rail managers develop logistic chains and new types of combined transport.

Awareness of environmental issues, daily highway and airport congestion suggest railways a new role within transportation systems.

In the competitive transport market, railways should use their advantages. They include high speeds, urban rail services, combined transport, and container transportation.

The share of railways in the national transport sector depends mainly on realisation of the market requirements. It can also be affected by the degree of state intervention, tariffs and subsidies.

In the past Russian railways were highly centralised and were the part of the planned economic system. As the market economy with free markets and free price system had replaced the planned one, the old practice became invalid. Taking much of the previous experience, the Ministry of Railway Transport launched a skilled gradual programme of adaptation to the market economy.

In the light of today’s market Russian railways satisfy demand for transportation and enhance efficiency and quality of their services. They also integrate into the Eurasian transport infrastructure.

In order to meet the requirements of the market environment railways must show more efficiency and flexibility of their services. They are to cut costs, introduce new technologies, and modernise rolling stock.

Answer the questions:

1. What do railways introduce to meet the requirements of the market economy?

2. What is the function of rail managers?

3. Why is a railway network a competitive means of communication?

4. What factors suggest railways a new role within transportation systems?

5. What are the main advantages of the railways today?

6. What does the share of the railways in the national transport sector depend on?

7. How were Russian railways organised in the frame of the planned economy?

8. How is the market economy guided?

9. Who is responsible for adjustment of Russian railway network to the market environment?

10. What steps must be taken for the adaptation of Russian railways to the market conditions?