I. Vocabulary

A. Translate the following words and word combinations into Russian:

to do smth at one's peril; military clout; commercial frailties; to be measured in purchasing-power parity; current exchange rates; to shift away; to chew up; to lag behind; to outsource jobs; friction (+among/between/with); to motor along; ramifications; the rosiest predictions; to recover from crisis; to leap ahead; а zero-sum game; to raise spectres; momentum; bumptious new economic powers; asset prices; to right imbalances; an alliance of interests; a strategic partner; to mire in economic stagnation ;

B. Find in the text English equivalents for:

объем производства мировой экономики; мир бывший когда-то бедным; пытаться получить права на добычу полезных ископаемых; тогдашние экономические сверхдержавы (сверхдержавы того времени); тревожные знаки; не допускать повышения уровня инфляции и процентных ставок (препятствовать росту; снижать уровень); среднестатистический работник; «незрелые» с точки зрения военной мощи державы; обсуждать экономические проблемы общего характера; мировая политическая архитектура;

II. Answer the questions:

1. Why is it dangerous to turn a blind eye to state of economy? How can you prove it?

2. What can be said about the role of developing countries in global economy? Did their role change? How would you account for this fact?

3. Can changes proceed smoothly? What are the main reasons for controversy?

4. What countries are supposed to become the world’s greatest economies? What makes the author think so?

5. How does the situation in China and India stand?

6. Should protectionism and xenophobia be fought with? Why? How do they influence economic development?

7. How did improvement of developing economies tell on the situation in western countries?

8. What are the main challenges for the West nowadays? Speak about them.

9. Do you agree that economic power is not the same as political power?

10. Why China is called a pipsqueak? How do you understand this?

11. Why does the UNSC look outdated?

12. What does the “G7” stand for? Who does the G7 consist of?

III. Comment on the following phrases from the text:

• Economics does not determine history but it does provide the backbeat

• Globalization is not a zero-sum game

• As the bal­ance of economic power in the world changes, mustn't the balance of political power change too?

• No alliance of interests brings all these very different countries together in the way that history and culture have united America and Europe

• There is а need to fiddle with some of the global political architecture

• Celebrate the riches that globalization has brought – and be prepared to de­fend the economic liberalization that underpins it.

IV. Suggested activities for students:

1. Can or should economic potential of developing countries translate into political might? Do you consider it possible and desirable? Supplement your answer with facts and examples.

2. Several countries were mentioned in the article as potential great economies. Would you agree with such predictions? Give you arguments to support your point your point of view. Take one of the countries mentioned in the list and research its economic situation. Could you find any facts that might prove the predictions made by the author?

3. Which is better for the future of the global economy: economic cooperation or economic integration?

4. With the increases in multinational production, the rise on global flows of goods and services, advances in communications and information technology and the growth of global financial exchange, serious doubts have been raised about the ability of governments to maintain control over the economic determinants of their countries; well-being. These dilemmas are expressed by the British economist Will Hutton:

The world financial system is spinning out of control. The stock of cross-border lending now exceeds a quarter of GDP of all industrialized countries. International bank assets are double the value of world trade. The volume of business in the currency futures markets exceeds even that generated by daily trade flows. Not even the US, German or Japanese governments have the financial clout to deal with the new volume of speculative flows – while many developing countries lack enough reserves to cover the purchase of eight weeks’ imports.

How persuasive do you find Hutton’s viewpoint?

5. Since 1989 International Institute for Development publishes its annual "World Competitiveness Yearbook". Look at the table, choose one country and analyze its economic situation. Pay attention to the shift in rates (the year 2006 compared to the year 2007). What contributed to this shift, if it took place? What does the absence of change evidence? Does it prove stability or stagnation?

Country	Competitiveness %	2006	2007
The USA	100	1	1
Singapore	99.12	3	2
Hong Kong	93.54	2	3
Luxemburg	92.2	9	4
Denmark	91.92	5	5
China	79.48	18	15
Germany	78.02	25	16
Great Britain	75.45	20	20
India	63.38	27	27
Russia	47.32	46	43
Ukraine	45.48	No data	46
Venezuela	30.95	55	55

6. Write an essay on the topic: “Stop the world, I want to get off”.