It’s interesting to know …

• The Bank of England (formally the Governor and Company of the Bank of England) is the central bank of the United Kingdom and is the model on which most modern, large central banks have been based. It was established in 1694 to act as the English Government’s banker, and to this day it still acts as the banker for the UK Government. The Bank has a monopoly on the issue of banknotes in England and Wales, although not in Scotland or Northern Ireland. The Bank’s Monetary Policy Committee has been given devolved responsibility (sometimes called independence) for managing the monetary policy of the country. The Bank’s headquarters has been located in London’s main financial district, the City of London, since 1734.

• The Commonwealth of Nations, usually known as the Commonwealth, is an intergovernmental organisation of fifty-three independent member states. Most of them were formerly parts of the British Empire. They cooperate within a framework of common values and goals, as outlined in the Singapore Declaration. These include the promotion of democracy, human rights, good governance, rule of law, individual liberty, egalitarianism, free trade, multilateralism, and world peace. The symbol of this free association is the Head of the Commonwealth, which is a ceremonial position currently held by Queen Elizabeth II.

• The G7 (also known as the G-7 or HALEY GROUP) is the meeting of the finance ministers from a group of seven industrialized nations. It was formed in 1976, when Canada joined the Group of Six: France, Germany, Italy, Japan, the United Kingdom, and the United States. The finance ministers of these countries meet several times a year to discuss economic policies. Their work is supported by regular, functional meetings of officials, including the G7 Finance Deputies.

• The Group of Eight (G8) is a forum, created by France in 1975, for Governments of eight nations of the northern hemisphere: Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the USA; in addition, the European Union is represented within the G8, but cannot host or chair. ‘G8’ can refer to the member states or to the annual summit meeting of the G8 Heads of Governments. The former term, G6, is now frequently applied to the six most populous countries within the European Union. G8 ministers also meet throughout the year, such as the G7/8 finance ministers (who meet four times a year), G8 foreign ministers, or G8 environment ministers.

• On January 1, 1999 the Euro (€) became the official currency in the participating countries inside the European Union. France, Germany, Spain, Portugal, the Netherlands, Belgium, Luxembourg, Austria, Italia, Ireland, Finland and Greece introduced this currency as the new single currency. A few countries of the EU did not join the European Economic and Monetary Union (EMU) and have not introduced the Euro. Sweden, Denmark and Britain refused to take part in the EMU and preferred to sustain their own currencies.

Task IV. Complete the puzzle by guessing the words which correspond to the definitions below. Find a key word in the centre boxes:

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1. to make or hold private; to turn over (a public property, service, etc.) to private interests;

2. diminish or lessen in extent, quantity, strength, power, etc.; to make less;

3. having to do with the supply of money in an economy;

4. the amount by which a sum of money falls short of the required amount;

5. the percentage or number of people who are involuntarily out of work;

6. any means in or by which someone travels or something is carried or conveyed;

7. the horses, cattle, sheep, and other useful animals kept or raised on a farm or ranch;

8. a persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services;

9. to act against or provide resistance to something;

10. to transfer ownership or control of (land, resources, industries, etc.) to the national government.

Task V. Match the words in the right column with their definitions. Recall the contexts in which these combinations are used:

1. a temporary falling off of business activity during a period when such activity has been generally increasing	a. net importer
2. registered, located, conducted, or operated in a foreign country	b. recession
3. the work done or amount produced by a person, machine, production line or manufacturing plant	c. revenue
4. a country or territory whose value of imported goods is higher than its value of exported goods over a given period of time	d. currency
5. a sudden or sharp fall; a decline in business activity, prices, etc.	e. interest rate
6. the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses	f. offshore
7. business profits; gains from investments; wages	g. retail
8. the sale of goods to ultimate consumers, usually in small quantities	h. earnings
9. the percentage of a sum of money charged for its use; the monthly effective rate paid (or received if you are a creditor) on borrowed money	i. slump
10. the money in circulation in any country	j. output

Task VI. Fill in the gaps with prepositions, if necessary:

1. The UK is still the eighth largest economy in the world … purchasing power parity.

2. The British economy is one of the most globalized economies in the world, thanks … no small part … the City of London

3. By the 1970s the British economy was referred … as the ‘sick man of Europe’.

4. In 2008 the United Kingdom entered a recession brought … by the global financial crisis.

5. Britain’s land surface is minimal compared … many other nations.

6. Compared … other nations in the EU, Britain’s agricultural sector is much smaller … terms of employment and contribution … the GDP.

7. Opinion polls show a majority of British people oppose … joining the euro.

8. Fish and fish products are both imported … and exported … Britain.

9. Motor vehicle production became a significant part of the industrial base but was subject … severe foreign competition.

10. Trade in services accounts … a half of Britain’s overall trade.

Task VII. Use the vocabulary of the text to complete these sentences. Guess the suitable word by the first letter:

1. The UK is also the founding member of the C…, the association formed by former British Empire states.

2. In the 1980s most state-owned enterprises were p…, the British Government now owns very f… industries or businesses.

3. The UK has the world’s third largest current account d…, despite significant oil revenues.

4. The leading country’s c… are wheat, sugar beets, potatoes, barley, and rapeseed.

5. The UK has large coal, natural gas, and oil r…, but its oil and natural gas r… are declining.

6. The UK e… manufacturing industry remained the fifth largest in the world, accounting for 7% of manufacturing GVA in 2006.

7. L… is the world’s leading centre for insurance and handles 20% of the world’s insurance business.

8. V… exports, or trade in merchandise, account for only about half of Britain’s overall trade.

9. T… is a major element in the UK economy and the most important invisible source of foreign exchange earnings.

10. Britain’s major t… partners are the European Union, especially Germany, France, and Netherlands, and the United States.

Task VIII. Decide if the following statements are True or False to make sure you understand the gist of the text:

1. The economy of the United Kingdom of Great Britain includes the economies of England, Scotland, Wales and Ireland.

2. The British economy is one of the most globalized economies in the world.

3. Before 2008 the British was one of the strongest EU economies in terms of inflation, interest rates and unemployment, all of which remained relatively low.

4. Financial turmoil, as well as rising commodity prices, harms the UK more than most developed countries, as the UK obtains revenue from exporting manufactured goods, fuels, chemicals.

5. Sheep and cattle are Britain’s chief livestock.

6. Most of the area consists in Wales and north-eastern Scotland is covered with thick forests.

7. The UK became a net exporter of energy in 2005.

8. Britain is the birthplace of the Industrial Revolution.

9. British major industries are coal mining and cotton textile industries.

10. Service sector is the most highly developed sector of the economy nowadays.

Task IX. Answer the suggested questions scanning the text for essential detail:

1. Does the UK rank among the most globalized economies of the world?

2. Why have the UK economic outlooks worsened in recent years?

3. What measures did the Government implement in order to stimulate the economy and stabilize the financial markets?

4. What changes have taken place in the UK agriculture?

5. Does the country import wood and wood products? Why?

6. What raw materials form the bulk of mineral production?

7. What are the country’s major industries? What problems does the manufacturing sector face nowadays?

8. What does service sector include?

9. Where are the country’s major financial centres situated?

10. What do the British exports and imports include?

Task X. Check how well you know the economy of the United Kingdom by choosing the correct variant from the alternatives below:

1. The slogan of the British industry is … .

   1. “Import or live” c. “Live or die”

   2. “Export or die” d. “Export or import”

2. Britain set its monopoly on the world market in the … century.

   1. 16^th b. 17^th c. 19^th d. 20^th

3. At its zenith the British Empire stretched over … of the earth’s surface.

   1. one-third b. two-fifths c. one-fourth d. two-thirds

4. In the 18^th and 19^th centuries Britain didn’t make use of … as one the major sources of its profits.

   1. loans to foreign countries c. slaves

   2. investments in enterprises abroad d. freight

5. In the 19^th century Britain was not the world’s … .

   1. banker b. financier c. manufacturer d. merchant

6. Britain was … country in the world to put up large-scale factory production.

   1. the first b. the second c. the third d. the forth

7. Up to the end of the 19^th century the British Navy … .

   1. carried the manufactures of British industry

   2. brought raw materials to Britain

   3. was the world’s freighter

   4. held a supremacy over the high seas

8. Britain lost its colonial empire … .

   1. in the 19^th century c. after World War I

   2. in the 18^th century d. after World War II

9. The ‘garden of England’ is … .

   1. London b. the county of Kent

   2. the county of Yorkshire d. the southwest Peninsula

10. Which of these crops isn’t widely cultivated in Great Britain?

    1. barley b. potatoes c. wheat d. tomatoes

11. Britain’s chief livestock is … .

    1. hogs b. beef cattle c. dairy cattle d. sheep

12. Wool is produced mostly in … .

    1. Wales c. England

    2. Scotland d. Northern Ireland

13. Most British farmers practise … .

    1. livestock breeding c. sheep breeding

    2. mixed farming d. crops growing

14. The chief centre of the British clothing industry is … .

    1. London b. Manchester c. c. Leeds d. Newcastle

15. Northern Ireland has a world-wide reputation for its … .

    1. lace b. pottery c. linen goods d. knitwear

16. Britain is not self-sufficient in … .

    1. petroleum b. natural gas c. coal d. peat

17. Petroleum refining is centred in … .

    1. Aberdeen b. Glasgow c. Manchester d. Belfast

18. Great Britain is one of the world’s leading … producers.

    1. steel b. lace c. trucks d. silk

19. ‘Invisible trade’ doesn’t imply … .

    1. human beings trade c. insurance

    2. tourism d. banking

20. Community, social and personal services don’t include … .

    1. transportation b. healthcare c. data processing d. advertising

21. The railroads in Great Britain are owned by … .

    1. private companies c. individuals

    2. the Government d. the Queen

22. Which service doesn’t The British Post office provide?

    1. selling gun licenses c. selling dog licenses

    2. selling TV licenses d. selling insurance

23. The BBC is mainly financed by …

    1. the Government

    2. fees that people must pay to watch the BBC’s programs

    3. licenses people must buy to own a TV set

    4. advertisers

24. The British Government now owns … of Britain’s industries.

    1. very few b. the majority c. half d. none

25. Britain’s largest airline is called … .

    1. British Aerospace b. British Airlines c. British Airways d. Lufthansa

26. The financial centre of England is … .

    1. the Bank of England c. the London Stock Exchange

    2. the City d. the Lloyd’s

27. The London Stock Exchange was founded in the … century.

    1. 20^th b. 19^th c. 18^th d. 16^th

28. The most famous insurance company in Britain is called … .

    1. Barclays b. Lloyd’s c. Mark and Spencer’s d. Sheffield’s

29. Great Britain is a member of the EU which was established in … .

    1. 1995 b. 2000 c. 1993 d. 1992

30. The UK is not one of the founding members of … .

    1. the UN Security Council c. the Commonwealth

    2. NATO d. EMU

Task XI. Translate the following sentences into English using the vocabulary of the text:

1. В конце 18 в. Великобритания была первой индустриальной державой мира, а в 19 в. она произвела больше промышленных товаров, чем любая другая страна.

2. В начале 20 в. промышленная мощь британской экономики базировалась лишь на немногих отраслях.

3. Великобритания – страна со смешанной экономикой. Большинство производств и многие услуги выполняются частными предприятиями; сфера производства находится в основном в руках крупнейших фирм.

4. Великобритания обладает большими запасами ресурсов энергии, включая нефть, природный газ и уголь, чем любая из стран Европейского Сообщества.

5. Наиболее важными секторами промышленности являются машиностроение, пищевая промышленность (включая производство безалкогольных и спиртных напитков), табачная и химическая промышленность, бумажная и печатная промышленность, легкая промышленность.

6. Доля невидимой торговли (гонорары и плата за финансовые услуги, проценты по вкладам, прибыли и дивиденды) постоянно увеличивается с одной трети до половины всех внешних доходов государства.

7. Машиностроение и транспорт, промышленные товары и химикаты являются основными статьями экспорта Великобритании.

8. На сектор услуг в Великобритании приходится около 2/3 от ВВП Великобритании. В нем основную долю (около 40%) занимают деловые и финансовые услуги.

9. Великобритания располагает развитой индустрией туризма. В ней занято 2,1 млн. человек.

10. Сельское хозяйство Великобритании – одно из самых продуктивных и механизированных в мире.

C. Follow-up Activities

Task XII. Share your opinions on the following:

1. What is the difference between privatization and nationalization?

2. What advantages can you see in privatization? Are there any examples of privatized or nationalized industries in your country?

3. Which industries do you think should be controlled by the state and which by private shareholders? Give reasons for your choices.

4. If British industries continued to change at the same rate, what would you expect them to look like now?

5. Prepare to talk about the major financial institutions of the United Kingdom. Where are they located? What are their functions?

6. Summarize the changes in the British economy. Compare the situation in Britain with your own country.

Task XIII. Comment on the quotations:

1. “There can be economy only where there is efficiency.” Benjamin Disraeli 1804-1881, British Statesman, Prime Minister 

2. “We must now face the difficult task of moving forward towards a single economy, a single political entity... For the first time since the fall of the Roman Empire we have the opportunity to unite Europe.” Romano Prodi (speech to European Parliament, 13^th October 1999), an Italian Politician and Statesman, 1999-2004 – EU Commission President

D. Optional Reading