Обучение чтению экономической литературы на английском языке. В 4 ч. Ч. 3 (96

was chosen, which proved to be the right one. 12. He found a company he happens to like and a place where he happens to like living. 13. It can be cheaper for the company to get certain kinds of service by outsourcing. 14. Economics is likely to be less important than the influence of non-economic factors. 15. He believed himself to be more intelligent than his chief and expected everyone to think so.

2. Use Infinitive Constructions instead of subordinate clauses.

1.It is believed that the company will derive numerous benefits from the project and that the company’s image will probably increase. 2. It is expected that the close relationship with other companies will have a positive effect on strategic areas of their development. 3. It is supposed that the taxes will have increased by the end of the following year. 4. It is unlikely that the companies will get a lot of offers. 5. It appeared that after a number of expensive transfer deals small firms had failed to meet the financial goals. 6. It seems that the competitors will put their prices up.

7.The manager considered that a new operator was unfit for the job connected with the computer-aided activity. 8. Everybody expected that the sales department will get the bonus as they had already done a good deal of job. 9. Most customers in the past believed that design teams were isolated from financial and manufacturing problems and were not creative enough. 10. It is known that at last he has found a job in the Civil Service and understood that it was probably the one he was interested in.

3.Practise the following according to the model.

Model 1. Do you want to attend the conference? No, I want you to attend it.

Do you want to…

1)organize the reception? … (he)

2)make the arrangements for the negotiations? … (they)

3)introduce the speakers? … (she)

4)speak at the conference first? … (our top manager)

5)fix a date for the next meeting? … (you)

Translate the sentences using Model 2.

Model 2. See/hear/feel smb. do smth. – I saw her cross the street.

1. Вчера на собрании я слышал, как менеджер фирмы несколько раз упоминал ваше имя среди лучших сотрудников. 2. Я чувствовала,

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что кто-то стоит за моей спиной, но боялась обернуться. 3. Персонал внимательно следил, как директор фирмы представлял новый проект, который предстояло выполнить в кратчайшие сроки. 4. Проходя мимо дома моего друга, я увидела, как подъехала машина и из нее вышли двое мужчин и одна женщина. 5. Мы слышали, как кто-то громко разговаривал в соседней комнате и не слышали, как объявили наш рейс.

Model 3. It seems that he knows the staff well. He seems to know the staff well.

1. It happened that the manager was there at that time and was informed about the accident. 2. It turned out that the results of the audit were not satisfactory. 3. It seems that they have quite forgotten about their promises. 4. They say that a newcomer knows some foreign languages. 5. It’s been proven that girls tend to be better at languages than boys.

Model 4. It is important for smb. to do smth.

1.Don’t be late for work. It is important. 2. Don’t waste time. Time is money. It is recommended. 3. You should learn to set goals. It is necessary.

4.You should ask your supervisor if you need his help. It is useful. 5. You should not have a romantic relationship with a co-worker. It is advisable.

4.Translate into English, using Infinitive Constructions.

1. Несомненно, что проблема качественной упаковки товара сегодня очень важна. 2. Очевидно, что многие люди испытывают неудобство (suffer) от плохой упаковки, из-за неровной поверхности (wrap rage). 3. Вряд ли администрации приятно выслушивать критику со стороны покупателей. 4. Оказалось, что управляющий фирмой не будет принимать участия в конференции. 5. Он, похоже, пользовался устаревшими сведениями, и вопрос был слишком неожиданным, чтобы он мог на него ответить. 6. Ему ничего не оставалось делать, как передать решение вопроса заведующему отделом «Упаковочные товары». 7. Считается, что фирма отвечает за людей, работающих на нее, но по контракту с фирмой ты сам ответствен за создание своей карьеры внутри организации. 8. Журнал «Экономист» предполагает, что внутренние цены во Франции побили рекордный уровень. 9. Все ожидали, что биржи стран ослабят (loose) законодательные акты, чтобы привлечь заграничный капитал. 10. Вряд ли мы встретим нашего директора на конференции. Похоже, он еще не вернулся из командировки.

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Read and Translate the text using Essential Vocabulary and any necessary dictionary.

Text 9A. The Competitive Structure of the Industry

A major external influence on businesses is the other firms that comprise their industry and are in direct competition with them. This might be the one-person business down the road or the enormous multinational which dominates the market for particular goods or service.

There is a system of classification for market structures, broadly according to the number of firms within the market, but also influenced by other factors. The main classifications are:

•ðerfect competition,

•îligopoly,

•monopoly.

The term perfect competition is used to describe a market structure where competition is supposedly to be ‘perfectly fair’. That is, no single firm has a competitive advantage. Consider the case of vegetable producers. Vegetables are pretty similar and prices tend to ‘bunch’ around a given level. For such competition to be fair, business would all have to be quite small and unable to dominate the market by setting a price which all other firms have to follow. In such circumstances, the interaction of supply and demand sets the price and all firms set their own prices approximately equal to this. Such firs are said to be price takers.

Firms in perfectly competitive markets sell similar, if not identical, products and this further limits their freedom in setting prices.

If their product is similar to that of their rivals, then a price rise is likely to result in a very high proportion of sales being lost. Indeed, in the extreme case where the products are identical, and the customer has full knowledge of this, all sales could be lost following an independent price rise.

This type of market is supposed to have a large number of buyers of whom few, if any, purchase large quantities of the product. Most of the competing businesses are aware of one another’s prices and products, which enables them to match their rival’s products and compete on an even basis.

In some situations, many small firms might compete but by selling significantly different products. This type of market is classified as being

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monopolistically competitive. This title is rather confusing. It has nothing to do with monopoly, which entails just one producer in a market.

The monopolistically competitive market has most of the features of a competitive market, except that the product is differentiated which allows more freedom in setting prices. Examples of monopolistically competitive industries might be the fashion industry, with many small design firms producing differentiated and leisure facilities through sports centres and clubs.

Competition in these types of market can be very fierce. Firms seek to build up a group of satisfied customers who they hope will continue to patronize their business. Word of mouth and reputation play a critical competitive role in these markets. Because of this, the quality of the good or service that they provide has to be consistently good. One poor product or piece of work can ruin years of quality provision.

In many cases, the firms are aiming at just a local market and their promotional work reflects that. A small promotional budget restricts their ability to advertise and the possibilities of gaining additional customers.

Oligopoly

An oligopolistic market structure exists when there are few, relatively large suppliers within an industry. Indeed, the word ‘oligopoly’ derives from the Greek term ‘oligoi’, meaning ‘a few’. In these circumstances, they are very conscious of one another and shape their actions towards the likely resposes of their rivals. Thus, before an oligopolistic firm settles upon a price rise it will have considered carefully, amongst other factors, how its competitors may react. Will they also raise their prices or are they likely to hold their prices down and strongly advertise the price differentiation? This likely reaction will be an important factor shaping the final decision on the price rise.

This type of market structure is becoming increasingly common in developed economies as product and services become more technical and complex to research, design and produce, and require larger business to produce them and compete in the market-place.

Markets with a few large producers can be highly competitive, but are not always so. Such competitive oligopolistic markets are characterized by some or all of the following:

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•frequent price changes,

•high levels of promotion,

•substantial investment in research and development, leading to a high rate of technical innovation of products.

By looking at adverts in the media you should be able to see that industries such as tobacco, daily newspapers and household detergents fall into this category.

However, another type of oligopolistic market exists – one that is less competitive. Many oligopolistic firms fear a price war. Firms who engage in such wars cannot be sure that they will win. They do not know the exact resources that their rivals possess. Nor do they know the level of commitment of the opposing management team to winning such a war. Such uncertainty can kill competition in these markets. As a result, prices in some industries move together as competitors seek to avoid starting a price war. Prices tend to be stable with competition confined to quality and promotional issues. It is because of this that the petrol retail industry is frequently accused of lacking a competitive edge. Similar charges have, at times, been levied at the high street banks.

The trend towards oligopoly has significant implications. It can lead to intense competition, which is in the consumer’s interest since it promotes lower prices and encourages technical innovation. Such competitive firms may also succeed in international markets, offering employment and prosperity to the areas in which they are sited. However, not all firms will be successful and, inevitably, some firms in a competitive market will go to the wall.

Alternatively, a less competitive oligopolistic market offers the consumer a less attractive deal s i n c e prices may be higher and products less advanced. However, the less competitive market may protect jobs and generally provide more certainty.

Monopoly

Theoretically, a firm is a monopoly if it has no competition – that is, if it is the only firm in the industry.

There are a few examples of monopolies in the UK. Some, like British Gas, are privately owned public limited companies following privatization. Others remain in the public sector – the Post Office is an example. The law gives it the sole right to deal with certain categories of mail.

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Initially, it may appear that monopolies do not have to bother to compete since they are, in effect, the industry. However, this is not true. If we consider further the example of British Gas it has to compete against firms in other industries. Thus British Gas competes against electricity and coal in the domestic heating market. Interestingly, both of these industries are also monopolies! Consumers and producers can substitute either of these two fuels for gas and so British Gas must ensure that it remains competitive against such close rivals. Most goods and services have substitutes – these are products to which consumers switch when the price of the original product rises, its quality falls or some other similar factor reduces demand. British Gas advertises so as to attract customers away from other fuels. Imagine a builder about to construct an estate of one hundred houses. This would represent a significant market for, say, the local electricity board and oil suppliers as well as British Gas. It is the market made up of new houses, offices and factories that coal, electricity and oil provide the sharpest competition for British Gas. They all compete fiercely for this business. Existing users are unlikely to switch to new systems without major cause because of the high costs involved.

Exercises

1. Answer the questions to the text.

1. What factors influence the system of classification for market structures? List them. 2. How could you describe a market with ‘perfect competition’? 3. In what circumstances are firms known to be price-takers? 4. What will happen if the products of firms are similar? 5. What enables a business to match their products and compete on the even basis with their rivals? 6. What does the term ‘monopolistically competitive market’ mean? 7. What is the most important factor a competitive market should follow? 8. What is the word ‘oligopoly’ derived from? 9. What does an oligopolic firm do before setting upon a price rise? 10. In what economics is oligopoly mostly common? Give examples. 11. Why does the trend to oligopoly have significant applications? 12. When is a firm considered to be a monopoly? Give some examples of monopolistic firms.

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2. Choose the correct phrasal verb in an appropriate form to complete each sentence. Translate the sentences into Russian.

(to heat up; to be aware of; to build up; to be accused of; to succeed in; to work up to; to be in competition with; to have nothing to do)

1.Some oligopolistic firms may … international markets, but they are less competitive in the local ones. 2. The petrol retail industry … frequently … lacking a competitive edge (острие, накал). 3. Even the one person business which comprises its own industry can … others.

4.A small firm should … constantly … prices and products of other firms to match them. 5. Such small firms are always laying … reliable customs to patronize their business. 6. Not all firms can be successful, some of them are inevitably forced … seeking new technologies to stay on the market. 7. Every businessman knows that monopolistically competitive market … nothing … with monopoly where just one producer is in the market. 8. In some countries, notably America, France, Sweden, the property market is still building up small family firms into multinational companies.

3.Match the parts of the sentences in column A with those in column B to produce true sentences according to the text. Translate them.

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4. Give the definitions to the following expressions.

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5. Translate into English using Infinitive Constructions.

1. Честная конкурентоспособность, вероятно, возможна там, где одна фирма не устанавливает собственную цену, которой другие фирмы вынуждены следовать. 2. Чтобы небольшая фирма могла соперничать, ей необходимо продавать совершенно другой продукт. Такая фирма известна как монополистически конкурирующая. 3. Такая фирма (монополистически конкурирующая), несомненно, имеет большую свободу в установлении цен. 4. Что касается фирм-олиго- полий, они внимательно следят за своими соперниками, прежде чем повысить цену. 5. Считают, что не все олигополии успешны, некоторые из них, оказывается, разоряются из-за финансовых трудностей. 6. Случилось так, что олигополистический рынок стал привлекательным в развитых странах благодаря внедрению инноваций в оборудование и техническое обслуживание. 7. Маловероятно, что фирмы с малым бюджетом имеют большие возможности начать широкую рекламную кампанию. 8. Потребители любой продукции хотят, чтобы цены падали. 9. Для того чтобы цены падали, необходима тщательно выработанная долгосрочная стратегия увеличения продукции и усовершенствования технологии. 10. Оказалось, что фирмы-соперники стремятся устанавливать общие со своими конкурентами цены, боясь ценовых войн. 11. Кажется, что монополии не должны бояться конкуренции. 12. Теоретически считается, что монополия – это фирма, которая полностью управляет бизнес-деятельностью, и другие фирмы не могут конкурировать с ней. 13. Известно, что британская фирма British Gas конкурирует с электро-, а также угольной промышленностью, которые считаются монополиями в промышленности. 14. По-

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требители хотят, чтобы появились заменители топлива, так как цена на естественную продукцию повышается. 15. Они рассчитывают, что British Gas обеспечит их такими товарами и услугами.

Read the text and answer the questions. Guess the meanings of the following terms: over-capacity, recession, seat-only deals.

1. Why do you think that Mr. Newbold considers chasing market share to be ‘folly’? 2. Why might oligopolistic firms fear a price war? 3. What does a great holiday over-capacity mean for the holiday companies?

Text 9B. Holiday Price War

Thomson Holidays has stepped up the holiday price war with a declaration yesterday that it is prepared to sell Mediterranean packages from

£99 throughout the peak summer period.

The continuing recession and an estimated overcapacity of one million package holidays has meant that holiday companies have all had to make large price cuts in order to maintain sales.

Charles Newbold, Thomson managing director, described it as ‘an undignified scramble’ for the late-booking holidaymaker.

Thomson, Britain’s biggest operator, has been offering European packages from £99 and holidays to Florida from £199 rather than cut capacity. With a one-third share of the package holiday business, the company is anxious to maintain its lead over its rivals, Airtours and Owners Abroad.

The present over-capacity follows the collapse last year of ILG, which was the second-biggest operator. The major operators, including Thomson, increased the number of holidays they offered this year in the hope of picking up former ILG customers. To sell all the extra holidays made available, the package holiday market would this summer have to increase by 20 per cent. But at the moment it looks as if demand will remain the same as last year.

As a result tour operators are desperately cutting prices. Seat-only deals to Palma, Malaga and other Mediterranean destinations are widely available during May from Thomson and other operators from as little as £59.

Mr. Newbold said that the battle for business this summer is certain to result in casualties: ‘This is the folly of operators chasing market share. It is the return of the lemming syndrome.’

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