Пояснювальна записка

Сучасний стан розвитку зовнішньоекономічних зв'язків потребує якісного підходу не тільки до проблем вивчення економіки взагалі, а й до мовної підготовки майбутнього економіста якого вже не мол^а уявити без належного володіння іноземною мовою.

Збірник розрахований на студентів II курсу економічних спеціальностей. В ньому зібрані тексти з різних зарубіжних джерел, що стосуються проблем економічних теорій, прикладної економіки. Тексти служать не тільки для розвитку навичок читання та перекладу фахової літератури, а й несуть у собі нову важливу інформацію, необхідну для сучасного економіста.

Збірник побудовано за принципом усного закріплення. Після прочитання: тексту студент повинен виконати усні та письмові тренувальні вправи на закріплення лексики і на розвиток навичок усного мовлення.

Мета його - розвиток навичок усного мовлення та робота з фаховою літературою.

CONTENTS

UNIT 1. THE ACCOUNTANT'S PROFESSION

Fi 69

UNIT 8. ENQUIRIES AND OFFERS
Lesson 1. Enquiries.	45
Lesson 2. Offers.	46
Lesson 3. Business talks.	48
Lesson 4. Prices and terms of delivery.	49
Lesson 5. Terms of payment.	50 4
Unit 9. MARKETS AND EXCHANGES
Lesson 1. Shares and stocks in the United Kingdom.	51
Lesson 2. Company finance.	52
Lesson 3. Securities and stock exchange.	53
Lesson 4. Organized markets.	53
Lesson 5. Financial futures exchanges.	54
UNIT 10. INSURANCE
Lesson 1. Insurance and risks.	55
Lesson 2. Life and industrial assurance.	56
Lesson 3. Insurance services of banks.	57
Lesson 4. Marine insurance.	58

Список використаної літератури

59

UNIT 1

THEME: THE ACCOUNTANTS PROFESSION

Lesson 1

BOOKKEEPERS, ACCOUNTANTS AND CONTROLLERS

Bookkeepers deal in taxes, cash flow, which include cash receipts and cash disbursements, sales, purchases and different business transactions of a company. Bookkeepers first record all the appropriate figures - in the books of original entry, or Journals. At the end of a period usually a month - the totals of each book of original entry are posted into the proper page of the Ledger. The Ledger shows all the expenditures and all the earnings of the company. On the basis of all the totals of each account in the Ledger, the bookkeeper prepares a Trial Balance. Trial Balances are usually drawn up every quarter. The accountant's responsibility is to analyze and interpret the data in the Ledger and the Trial Balance.

The accountant is to determine the ways in which the business may grow in the future. No expansion or reorganization is planned without the help of the accountant. New products and advertising campaigns are also prepared with the help of the accountant.

The work of accountants is rather sophisticated. Many accountants have special certificates after they pass examinations in Institute of Accountants. Certified accountants in England are called chartered accountants. In the U.S.A. the certified accountants are called certified public accountants. But it is not necessary to have a I certificate to practice accounting. Junior employees in large companies, for example, often practice accounting and take the examination.

bookkeeper

taxes

cash flow

receipts

disbursement

sales

purchases

transaction

appropriate

entry

to post

Ledger

expenditures

earnings

Trial Balance

responsibility

interpret

data

accountant

determine

expansion

reorganization

advertising campaigns

sophisticated

accounting

chief accounting officer

responsible

measuring

performance

executive

The chief accounting officer of a large company is the Controller; or Comptroller. Controllers are responsible for measuring the company's performance. They interpret the results of the operations, plan and recommend future action. This position is very close to the top executives of the company.

Vocabulary Study

бухгалтер*

податки

потік готівки

грошові надходження

виплата ^г ~

продаж

закупівля

угода

відповідний

бух.запис

переносити

головна бухгалтерська книга

витрати

заробіток

спробний баланс

відповідальність

тлумачити, інтерпретувати

дані

ревізор-звітності визначати розширення розподіл, реорганізація рекламні кампанії складний

бухгалтерський облік

головна посадова особа

відповідальний

оцінювання

діяльність

керівник

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

1. Complete as in the text:

   1. Bookkeepers deal in...

   2. Bookkeepers first record...

   3. The Ledger shows...

   4. Trial Balances are drawn...

   5. The accountant's responsibility is...

   6. The accountant is to determine...

   7. Certified accountants in England are called...

   8. In the U.S.A. certified accountants are called...

   9. Junior employees...

   10. The chief accounting officer of a large company is...

   11. Controllers are responsible for...

   12. They interpret...

   13. This position is very close to...

2. Sum up what the text said about: bookkeepers

accountants controllers journals ledgers trial balances

3. Answer the following questions:

   1. Whose work in this sphere do you think is the most important in a company-?

   2. Whose position (of a bookkeeper, of an accountant, of a controller) do you like better? Whom would you yourself prefer to be?

Lesson 2

THE WORK OF THE ACCOUNTANT

1. The work of the accountant is said to be diverse in nature but basically it deals with recording, summarizing, analyzing and verifying business transactions in books of accounts. The task of examining and analyzing accounts is one of great significance because it makes it possible to provide information necessary for economic management. There is usually an unlimited supply of data available in an enterprise. The key problem facing accountants is the selection for presenting to the management only meaningful information. And the accountant is effective if he supplies information promptly and in clear language.

2. Great and momentous changes are known to have taken place over recent years and the accountancy has changed and its functions have not only deepened but widened as well. The modern accountant is not like the old bookkeeper - now a legend - who was often described as a dried-up narrow-minded person ignorant of everything but tedious operations with figures. The modern accountant begins to play an increasingly important role in business activity. He is now expected to perform various duties and his tasks are wider than they were decade or two back. He acts, as an adviser to management and helps the latter in decision-making. Under modern conditions only accountants can analyze business situations and minimize the degree of uncertainty inherent in every business decision. By providing vital information to the management the accountant enables them to assess their own performance and what is more important it helps them devise ways to improve their efficiency and performance.

3. In many countries of the world accountants are also believed to make a valuable contribution towards promoting economic growth of a country. Economic thinking is considered to be moulded by proper accounting information as well.

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

1. Look through the text auicklv. Its paragraphs are numbered. Which of the paragraphs deals with:

   1. The main tasks of the accountant?

   2. The changes that have taken place in the accountant's profession?

   3. An increasingly important role of the accountant in business activity?

      2. Re-read the first paragraph to find out which of the following statements is correct

         1. According to the text the task of examining and analyzing accounts isn't important at present because economic management doesn't need that kind of information.

         2. The key problem facing accountants is recording business transactions in books of accounts.

         3. Broadly speaking economic information doesn't reflect the real state of things in an enterprise.

         4. The amount of data available in an enterprise is rather limited.

      3. Which idea in the second paragraph is illustrated bv the following statements?

         1. The accountant acts as an adviser to the management and helps the latter in decision-making.

         2. The accountant is responsible for analyzing business activity.

      4. Re-read the text to answer the following questions. Note that some of the questions have answers in the text and some haven't. Look for the answers reading only as much of the passage as it is necessary to find the answers.

         1. What is the main task of the accountants?

         2. What exactly attracts lots of young people to the field of accounting?

         3. What is the key problem facing accountants?

         4. What changes have taken place in accounting?

         5. What does the modern accountant look like?

         6. What changes should be introduced in accounting education?

         7. Why does the accountant begin to play an increasingly important role in business activity?

         8. What is the influence of accounting information on economic growth of a country and economic thinking?

Lesson 3

THEME: WHAT SHOULD MODERN ACCOUNTANT BE LIKE?

1. In all countries of the world the complexity of economic activity is gradually growing. And this, in its turn, leads to an increasingly important role of accounting as a function of economic management. At present the necessity of improving accounting through raising its operational utility and quality is regarded as one of the most important tasks.

2. The main condition for the solution of this task is improving the quality of accounting personnel. To attract able young people to the study of accounting, to raise its prestige and to demonstrate its importance is an urgent task in many countries of the world.

3. What do accountants think of the current state of accounting education? How well are students prepared for the profession? What changes are on the horizon and will these changes produce better educated accountants? To answer these questions a poll was conducted in the USA.

4. A lot of the US professionals have been asked to share their views on these issues and to comment on the value of accountancy programs. In all about 140 accountants have been interviewed. Their professions ranged from higher level management accountants to assistant controllers. The interviews revealed that the majority favoured radical reconstruction of accounting education. All agreed that there should be new programs setting the foundation for understanding all aspects of accounting. Most respondents were concerned with the fact that the majority of accounting graduates lack computer skills and oral and written communication skills. Several respondents stated that inadequate computer skills are becoming more noticeable as the demand for computer knowledge grows. Many respondents emphasized that the lack of good communication skills is the most serious deficiency of graduates. Students in accounting are sure to submit short papers to develop writing skills because as future managers they must be able to write concise reports. Other respondents dealt with personality characteristics of the graduates. Many respondents indicated that graduates lack self-motivation and enthusiasm. Some stated that graduates have a lack of common sense.

5. Many spoke in favour of strong conceptual over a practical approach to learning because understanding concepts is critical to coping with the dynamic nature of accounting problems. All academics (78%) agreed that there should be additional emphasis on conceptual knowledge. However accounting managers favoured a practical approach as did most low level participants.

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання: _%

1. Is this text intended for:

1. specialists?

2. students?

3. general readers?

What do you think the purpose of the text is: to teach accounting?

1. to interest people in accounting?

2. To provide new information about the latest developments in accounting?

   2. Read the text again to find out which of its paragraphs deals with:

      1. the questions which the poll conducted in the USA was to answer;

      2. the opinion of the majority about accounting education;

      3. the complexity of economic activity to the necessity of improving accounting education.

   3. Rearrange the seven sentences in a logical order to make a paragraph. When you have written it re-read it and give a suitable title,

      1. In addition many respondents pointed out that many accountants lack selfmotivation and

enthusiasm.

2. However accounting managers favoured practical approach as did most low-level participants.

3. It should be stressed that all academics spoke in favour of conceptual approach over theoretical one.

4. According to the results of the poll conducted in the US there is a general opinion about the necessity of

improving accounting education.

5. And then many respondents were concerned with the fact that most accounting graduates lacked computer

skills as well as oral and written communication skills.

6. For example, all agreed that there should be new programs to set the foundation for understanding

accounting.

7. Suffice it to say that the majority of the respondents spoke for radical reconstruction of accounting

education.

TV. Re-read the text to answer the following questions. Note that some of the questions have answers in the text and some haven 7.

1. What changes are taking place in economic activity at present?

2. Why is the role of accounting getting increasingly important?

3. What is the level of accounting in a country determined by?

4. WЪat's the condition for improving accounting in the system of economic management?

5. Why was a poll conducted in the US?

6. What is the typical for accounting practices in the US?

7. What exactly did the interviews reveal?

8. Why did many respondents speak in favour of conceptual approach in training accountants?

Unit 2

THEME: COMPANIES AND MONEY Lesson 1

THE PAYROLL OF A COMPANY

The list of people employed by a company is known bv the payroll. The payroll is usually divided up as follows: monthly-paid staff, weekly-paid staff, hourly-paid staff.

Office staff are either monthly or weekly paid and the money they get is called salaries, which are usually set.

Workers are either weekly or hourly paid and they get set wages. Many companies often operate a bonus system for monthly and weekly-paid staff. The bonus is usually paid against certain work done. The amount of the bonus payment is worked out from the employees job cards.

Hourly-paid staff are iisually on the clock. Under this system each worker has a clock number and a clock card. He records his hours of work on the clock card by inserting it into what is literally a clock.

A device in the clock stamps the card with the time. At the end of each week the clock cards are collected by the timekeepers. The cards are checked and then passed on to the Wages Office. In the Wages Office the wages and overtime are calculated.

When monthly and weekly paid staff work overtime they are also paid overtime. Employees are sometimes paid in cash or bv check. But direct payments into the employee's bank accounts are becoming more and more popular.

As a rule employees get pay advices for the paid period.The advice states the earnings, all the deductions and the total amount payable. The deductions usually include National Health Insurance contributions.

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

І Answer the following questions:

1. On what time basis can different employees be paid?

2. What is the money paid to office staff and workers called?

3. On what basis is bonus paid?

4. How does on the clock system operate?

5. Do employees sometimes work overtime? How are they paid then?

6. In what ways can wages and salaries be paid?

7. What way of being paid would you prefer?

II. Sum up what the text said about:

wages and salaries bonus system on the clock system overtime

the ways wages and salaries are paid pay advice

II. Translate into Ukrainian:

payroll

hourly-paid staff monthly-paid staff

set salary set wages bonus system

to stamp a card

timekeeper

overtime

pay advice

earnings

deduction

total amount payable

to pay on the clock

Lesson 2.

TAXES IN THE U.K

Individuals, partnerships and trusts pay income tax and capital pains tax. Companies pay corporation

taxes.

Income tax and capital gains tax are charged for a tax year, sometimes called fiscal year or year of assessment. The tax year runs from 6 April to the following 5 April.

Corporation taxes are charged for a financial year which runs from 1 April to the following 31 March. Companies generally pay corporation taxes nine months after the end of the accounting period. Individuals usually pay taxes in two equal instalments on 1 January and 1 July. Usually taxpayers are given 30 days to pay from the date of issue of an assessment.

Tax assessments are normally based on returns issued by the Board of Inland Revenue, often called Inland Revenue or IR, for completion by the taxpayer. If the company or person believes the assessment is incorrect an appeal may be lodged against it. Appeals are made to either the General Commissioners or the Special Commissioners. The cpmmissioners are completely independent of the Inland Revenue.

Employees pay taxes in a different way. When an employee takes a new job he has to give his new employer his P.45. This is a document which shows the employee's tax coding and the amount of tax he has paid so far in the tax year.

If an employee has no P.45. he is put on an emergency coding. This means he has to pay tax at the single rate until his P.45. is found or until the tax office clarify his tax position. When the position is clarified the employee receives a refund of any tax overpaid.

Employees are taxed under P.A.Y.E. system which means Pay as You Earn. Every employee has the tax deducted weekly or monthly. The deductions are calculated by reference to the employee's tax coding. This information is supplied to the employer by the tax office.

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

I. Translate into Ukrainian:

capital gains tax corporation tax income tax

fiscal year/ year of assessment

accounting period

instalment

taxpayer

tax assessment

returns

board of Inland Revenue

to lodge an appeal

tax coding

tax office

tax year

tax position

to be put on an emergency coding

to refund the tax overpaid

to be taxed under P.A.Y.E. system

IL Complete as in the text:

1. • Individuals, partnerships and trusts pay...

2. Income tax and capital gains tax are charged for...

3. The tax year runs from...

4. Corporation taxes are charged for...

5. Companies generally pay corporation taxes nine...

6. Individuals usually pay taxes in two...

7. Usually taxpayers are given 30...

8. Tax assessment are normally based on returns issued by...

9. If the company or person believes the assessment is incorrect...

10. Employees pay taxes...

11. When the employee takes a new job he...

12. P.45. is a document which shows...

13. If an employee has no P.45...

14. Emergency coding means the employee has to pay...

15. When the position is clarified...

16. Employees are taxed under...

17. Every employee has the tax deducted...

18. The deductions are calculated...

19. This information is supplied... to the employer by...

ACCOUNTS AND BALANCE SHEETS

From the Trial Balance, prepared by the bookkeeper, the accountant creates a Profit and Loss statement^ and Balance Sheet.

A Profit and Loss Statement or a Profit and Loss Account, shows the income or loss of the company for the period. The Profit and Loss Statement is made only on the basis of those accounts of the Ledger which affect the profit and loss of the company. The Profit and Loss Statement may contain the following items:

Sales

• Trading profit

• Depreciation s» Rent received

• Interest paid

• Profit before tax

• Tax

• Profit after tax

• Dividends

• Profit retained

• Earnings per share

profit retained

assets

liabilities

accounts receivable accounts payable inventory

merchandise on hand fixtures

The other accounts of the Ledger which reflect the assets, liabilities and capital of the firm, make up a Balance Sheet. This shows the net worth or book value of the company.

Here is a specimen of a Balance Sheet made up for Johnson and Co.

	BALANCE SHEET
	Johnson and Co
	31 December, 1994
Assets
Cash	$ 5 500
Petty cash fund	100
Accounts receivable	750
Notes Receivable	100
Inventory
Merchandise on hand	2 080
Furniture and Fixtures	2 750
Total Assets	$ 11280
Liabilities
Accounts payable	800
Notes payable	500
Total liabilities	1 300
Capital
Johnson Capital at beginning	8 000
Profit for the period	1 980
Total capital	9 980
Total capital and Liabilities	$ 11280

The two sides of the Balance Sheet, that is Total Assets and Total Capital and Liabilities are always to be equal.

Для самостійного опрацювання з цієї темн потрібно виконати наступні завдання:

I. Translate into Ukrainian:

profit and loss statement balance balance Sheet trading profit depreciation <.

rent received interest paid profit before taxProfit and loss statement Balance sheets

III. Answer the following questions:

1. Who must prepare the Trial Balance?

2. What does the accountant create from the Trial Balance?

3. What does a Profit and Loss Statement show?

4. What items may contain the Profit and Loss Statement?

AUDITORS AND THEIR REPORTS

Auditors are usually independent certified accountants who review financial records of a company. These reviews are called audits. They are usually performed at fixed intervals - quarterly, semiannually or annually. Auditors are employed either regularly or on a part-time basis. Some large companies maintain a continuous internal audit by their own accounting departments. These auditors are called internal auditors.

Not so many years ago the presence of an auditor suggested that a company was having financial difficulties or that irregularities had been discovered in the records. Currently, however, outside audits are a normal and regular part of business practice.

Auditors see that current transactions are recorded promptly and completely. Their duty is to reduce the possibility of misappropriation, to identify mistakes or detect fraudulent transactions. Then they are usually requested to propose solutions for these problems.

Thus auditors review financial records and report to the management on the current state of the company's fiscal affairs in the form of Auditor's Report or Auditor's opinion.

Here is a specimen, of Auditor's Opinion:

A UDITOR 'S OPINION

The Board of Directors Johnson and Co.

I have examined the Balance Sheet of Johnson and Co., as of SI December, 1994, as well as the related Statements of income and retained earnings and changes in the financial position for the year ending on that date. My examination way made in accordance with generally accepted standards of auditing. It included tests of the accounting records and those other procedures that I considered necessary. In my opinion, the accompanying Balance Sheet and Statement of Income and Retained Earnings present fairly the financial condition of Johnson and Co., on 31 December, 1994.

Daniel H.Peterson

Certified Public Accountant New York, N.Y.

І.

30 January, 1995

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

Translate into Ukrainian:

auditor's report , auditor's opinion mi sappropriation fraudulent transactions financial records fiscal affairs financial condition

to audit

standards of auditing audit

internal audit

outside audit auditor

internal auditor

II. Complete as in the text:

UNIT 3

THEME: PECULIARITY OF MODERN TRADE

Lesson 1

FOREIGN TRADE OF THE UNITED KINGDOM

In the 19^th century Britain dominated international trade, accounting for about one-third of world's exports. Early in the 20 century its position changed. The volume of world's exports increased but the percentage of British exports in world trade declined significantly.

But still foreign trade is vital to Britain's livelihood. With large population, small land area, and few natural resources, the country must depend on foreign trade to supply the raw materials for English factories and to provide a market for the sale of the thousands of types of manufactured goods produced by English industries.

The United Kingdom's principal exports are vehicles, machinery, manufactured goods and textiles. Its main exports are foodstuffs and most of the raw materials for industry. Britain imports half the food it needs.

There is usually an unfavourable balance of trade, that is, imports exceed exports, but this is compensated for in part by the so-called invisible trade.

The earnings from invisible trade come in the way of shipping charges, interest payments from foreign investments, interest payments from British enterprises abroad, and tourist expenditure. The earnings from foreign tourist trade make this one of Britain's important industries.

Britain has got very sound economic ties with various countries of the world, especially the Commonwealth countries. The Commonwealth, officially called The Commonwealth of Nations, has grown out of the old British Empire which came to an end with the Second World war. The Commonwealth countries are Canada, Australia, New Zealand and many other small countries and territories.

The United Kingdom has been a member of the European Free Trade Association (E.F.T.A.) since 1959, and a member of the European Economic Community (E.E.C.) since 1973.*

* During the period between 1990 and 2000 the E.E.C. is gradually growing into a European Union.

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання: I. What words in the text prove that:

1. Britain was one of the main exporters in the world last century.

2. At the beginning of this century Britain lost its dominating position.

3. There are a few objective factors why foreign trade is very important for Britain.

4. Britain needs raw materials for its industries.

5. Britain is interested in exporting its manufactured goods.

6. Britain imports a lot of foodstuffs.

7. Britain imports more goods than exports.

8. Britain's invisible exports exceeded invisible imports.

9. Tourist industry is of big importance to Britain.

   2. Translate into Ukrainian:

      1. ' In the 19mth century Britain dominated international trade.

      2. Britain accounted for about one-third of world's trade.

      3. In the 20^th century the volume of world's exports increased.

      4. The percentage of British exports in world trade declined significantly.

      5. But still foreign trade is vital to Britain's livelihood.

      6. The country depends on foreign trade to supply raw materials for factories.

      7. The country depends on foreign trade to provide a market for their manufactured goods.

      8. Britain imports half the food it needs.

      9. Imports exceed exports.

      10. Unfavourable balance of trade is compensated for by invisible trade.

   3. Find the answers in the text:

      1. What goods does Britain export?

      2. What goods does the United Kingdom import?

      3. What services does the country export?

      4. Does the country earn a lot of money thanks to a big number of tourists coming to Britain?

      5. What is The Commonwealth?

      6. Is Britain closely connected with Commonwealth countries?

      7. Is the united Kingdom a member of the European Free Trade Association?

      8. When did Britain join the European Economic Community?

   4. Sum up what the text said about:

Britain's visible imports Its visible and invisible exports

Its ties with the Commonwealth countries

Its membership in European economic organizations

2. Say a few words about:

Our country's visible imports Its visible exports Its invisible trade

Lesson 2

THE EUROPEAN ECONOMIC COMMUNITY

The European Economic Community, or the Common Market or the E.E.C. was established in 1957. The original six member countries of the Community were France, West Germany, Belgium, Italy, Luxembourg and the Netherlands. Then a few other countries joined the Community. Britain, together with the Irish Republic and Denmark, joined the E.E.C. on 1^st of January, 1973.

Now the Community forms an enormous trading area of almost 250 million people, and accounts for two fifths of the world' s trade.

The membership allows imports to enter member countries either free of duty or at lower customs duties.

All member countries contribute to a common budget for certain purposes, based on relative total output of goods and services, or gross national product.

Under the Community regulations, people of member countries may freely enter another member state to travel or to work there.

The Community has the following institutions:

• The European Parliament

• The Council of Ministers

• The Court of Justice

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

' Answer the following questions:

1. What are fuller names for the E.E.C.?

2. When was the E.E.C. established?

3. What countries established the E.E.C.?

4. What other countries joined the E.E.C. later?

5. How many people live in the E.E.C.?

6. What is the E.E.C. share in the world's trade?

7. What privileges do E.E.C. countries have in their trade?

8. What privileges do E.E.C. citizens have, coming to those countries?

9. What institutions does E.E.C. have?*

10. Where are the E.E.C. headquarters?

11. Where does the money come from to run the E.E.C.?

    2. Translate into Ukrainian:

       1. All member countries contribute to a common budget, taking into account gross national product of each member country.

       2. The contribute to a common budget based on relative total output of goods and services.

       3. Thanks to the membership these countries trade either free of duty or at duties which are lower than for outside countries.

       4. The membership allows imports to enter member countries either free of duty or at lower customs duties.

       5. Member countries import goods and services from other member countries on favourable terms.

    3. Sum up what the text says about the E.E. C.

    4. Agree or disagree:

       1. It is a good privilege when imports to any country are free of duty.

       2. It is a very positive factor when people can freely enter any other country.

       3. It would be a very good thing if our country joined the E.E.C. or the European Union.

    5. Translate the following words and word-combinations from English into Ukrainian:

       1. free of duty 8. to contribute

       2. headquarters 9. institution

       3. council 10. common budget

       4. court 11. output

       5. to be located in 12. customs

       6. Parliament 13. regulation

       7. to establish 14. goods

VI . Make sentences of your own with the following word-combinations:

To be established, free of duty, Common Market, to be located in... .

Lesson 3

FOREIGN TRADE FIGURES

Here is an extract from a journal article on foreign trade figures in the United Kingdom:

The recent developments in the UK's foreign trade have been essentially the following: Stabilization of the agro-food deficit at 3.5 billion thanks to an increase in domestic output; Increase in the consumer goods deficit from 4.4 billion at the beginning of the year to 5.7 billion at the end of the year.

Steep deterioration in the balance of trade in industrial raw materials and intermediates from 1.2 billion to 3.4 billion durin the year.

Part of the deterioration in the trade deficit can be attributed to the fact that the U.K. is cyclically ahead of its E.E.C. partners, whose combined GDP grew by 0.2% last year.

Trade in consumer goods contributed 1.3 billion to the 4.3 billion trade deficit last year unlike industry trade whose contribution amounted to 4.6 billion. The increase in industry's demand resulted in 12.7% growth of its imports accompanied by a 16% fall in its exports.

All that testified to the UK's poor trade performance last year.

Vocabulary Study

1.	figures	цифра, показник
2.	extract	витяг (з тексту)
3.	journal	журнал
4.	article	стаття
5.	recent	останній
6.	developments	події, положення
7.	essential	суть
8.	essentially	по суті
9.	billion	мільярд
10.	to consume	. споживати
11.	cconsumer	споживач
12.	consumer goods	товари споживача
13.	consumption	споживання
14.	steep	неймовірний, різкий
15.	to deteriorate	погіршуватися
16.	deterioration	погіршення
17.	to intermediate	посередничати
18.	intermediates	напівфабрикати
19.	to attribute	відносити
20.	to attribute to smth.	відносити на щось
21.	ahead	попереду
22.	to be ahead of smb.	бути попереду чогось
23.	unlike	на відміну від
24.	to amount	складати
25.	to accompany	супроводжувати
26.	to fall	падати, понижуватися
27.	fall in export \imports	пониження експорту \ імпорту
28.	to testify	свідчити
29.	to testify to smth	свідчити про щось
30.	performance	виконання
31.	poor trade performance	низькі показники торгівлі

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

I. Answer the questions:

1. Is this material borrowed from a newspaper, journal or magazine?

2. Is it clear what year's figures are analyzed?

3. Does this analysis testify to poor or good performance of the country the previous year?

4. What it difficult or easy for you to read that material?

II. Translate into Ukrainian:

1. . stabilization of the agro-food deficit

   2. increase in domestic output

   3. increase in the consumer goods deficit

   4. steep deterioration iiUhe balance of trade in intermediates

   5. Part of the deterioration can be attributed to a few factors.

   6. The U.K. cyclically ahead of its E.E.C. partners.

   7. Their combined Gross Domestic Product grew.

   8. Trade is consumer goods contributed to the trade deficit significantly.

   9. Their contribution amounted to a big sum.

   10. The increase in demand resulted in the growth of its imports.

2. It was accompanied by a fall in its exports.

GBP 3.5 billion		0.2%
Three point five billion pounds sterling		0 point two per cent
GBP 4.4 billion -	USD	4.4 million
GBP 5.7 billion	USD	5.7 million
GBP 1.2 billion	USD	1.2 million

12. It testifies to the poor trade performance of the country

Lesson 4

GENERAL AGREEMENT ON TARIFF AND TRADE

General Agreement on Tariff and Trade, or GATT is an international body established in 1947. There are about seventy member countries who have signed the Agreement The headquarters of GATT are in Geneva. The general aim of the Agreement is to reduce the trade restrictions, or tariffs, and to increase the volume of international trade.

Basically, member countries agreed not to show trading discrimination against each other, to consult when tariff changes are considered. They agreed to work towards a general reduction in tariff barriers. As practice shows, sometimes tariffs are reduced by around 30 per cent.

Originally, GATT was intended to be a permanent institution. But in fact it lived very long. The conferences of GATT have achieved greater success than any other trade conferences.

The greatest tariff reduction were achieved thanks to the Kennedy Round agreed in 1967. The Kennedy Round is an all round reduction of tariffs made by members of GATT on the initiative of John Fitzerald Kennedy, the U.S. President during 1961-1963. The President proposed his initiative as he had been impressed by the tariff reductions achieved by the E.E.C. and E.F.T.A. The Kennedy Round tariff reductions were greatest accomplished by GATT.

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

I. Find the answers in the text: