English for Future Economists. Учебное пособие для студентов СПО, обучающихся по специальностям 38.02.01 – «Экономика и бухгалтерский учет (по отрасля

VI. Answer the questions.

1.Who is A. Ortega?

2.When and where was he born?

3.How did his career start?

4.Why is he successful?

5.How does Inditex work?

6.Why is the company unique?

7.Is A. Ortega a typical businessman? Why?

VII. Use the words to speak about A. Ortega and his business.

Famous, the richest, the founder and boss, unknown, no interviews

28.03.36, Spain, working-class background salesman, small business, control – success/

Inditex: daily contact, manufacture, small batches, no unsold stock, no advertising stories – rumours.

Not a typical businessman, not interested in clothes, tie, discreet/

11

INFLATION

Inflation is generally defined as a persistent rise in the general price level with no corresponding rise in output, which leads to a corresponding fall in the purchasing power of money.

Inflation varies considerably in its extent and severity. Hence, the consequences for the business community differ according to circumstances. Mild inflation of a few per cent each year may pose few difficulties for business. However, hyperinflation, which entails enormously high rates of inflation, can create serious problems for the government, business, consumers and workers. Under conditions of hyperinflation people lose confidence in the currency's ability to carry out its functions. It becomes unacceptable as a medium of exchange and other commodities, such as cigarettes, are used as money. When things have become as bad as this, the only possible course of action is to withdraw the currency and issue new monetary units.

Another type of inflation is described as suppressed inflation. This refers to a situation where demand exceeds supply, but the effect on prices is minimized by the use of such devices as price controls and rationing. The excess demand still exists and it will tend to show itself in the form of waiting lists, queues, and almost inevitably, in the form of black markets. Economists argue at length about the causes of and "cures" for inflation. However, they would recognize that two general types of inflation exist: demand-pull inflation and cost-push inflation.

Demand-pull inflation. Demand-pull inflation occurs when demand for a nation's goods and services outstrips that nation's ability to supply these goods and services. This causes prices to rise generally as a means of limiting demand to the available supply. An alternative way that we can look at this type of inflation is to say that it occurs when injections exceed withdrawals and the economy is already stretched (i.e. little available labour or factory space) and there is little scope to increase further its level of activity.

Cost-push inflation. Alternatively, inflation can be of the cost-push variety. This takes place when firms face increasing costs. This could be caused by an increase in wages owing to trade union militancy, the rising costs of imported raw materials and components or companies pushing up prices in order to improve their profit margins.

12

Vocabulary notes

a persistent rise – неуклонный, постоянный подъем;

with no corresponding rise in output – не сопровождающийся подъемом производства;

extent and severity – длительность и острота; mild inflation – мягкая, низкая инфляция;

rate of inflation – показатель [уровень] инфляции; to withdraw – отказываться;

suppressed inflation – скрытая инфляция, подавленная инфляция; to exceed – превышать, превосходить;

rationing – нормирование, продажа по карточкам;

excess demand – избыточный (чрезмерный, повышенный) спрос; demand-pull inflation – инфляция спроса;

little available labour – мало рабочей силы; little scope – мало возможностей; cost-push inflation – инфляция издержек;

trade union militancy – воинственность профсоюзов; profit margins – размеры прибыли.

I. Mark the sentences true (T) or false (F). Find the information in the text to prove your answer.

1.When inflation occurs, general price level rises as well as output.

2.The purchasing power of money usually falls under inflation.

3.Hyperinflation brings a few difficulties for business.

4.It is necessary to issue new monetary units when suppressed inflation takes place.

5.There is little available labour or factory space when demand inflation occurs.

II. Fill in the chart. Use the information in a – l.

a)an increase in wages can cause an increase in costs;

b)people lose confidence in the currency's ability to carry out its functions;

c)the excess demand shows itself in the form of waiting lists, queues, and black markets;

d)prices rise as a means of limiting demand to the available supply;

e)it entails enormously high rates of inflation, it can create serious problems for the government, business, consumers and workers;

f)companies push up prices in order to improve their profit margins;

13

g)it occurs when injections exceed withdrawals;

h)the effect on prices is minimized by the use of such devices as price controls and rationing;

i)the only possible course of action is to withdraw the currency and issue new monetary units;

j)there is little available labour or factory space and little scope to increase further its level of activity;

k)the costs of imported raw materials and components rise;

l)currency becomes unacceptable as a medium of exchange and other commodities, such as cigarettes, are used as money.

V. Find the best alternative to fill in the gap.

1.Inflation is generally defined as a persistent rise in the general price level with no corresponding rise in … .

a) community; b) output;

c) confidence.

2.The consequences for the business community differ according to … .

a)circumstances;

b)extent;

c)ability.

14

3.Hyperinflation entails enormously high … of inflation. a) rates;

b) demand; c) injections.

4.… becomes unacceptable as a medium of exchange and other

commodities are used as money.

a)supply;

b)excess;

c)currency.

5.Suppressed inflation is a situation where demand … supply. a) argues;

b) exceeds; c) carries out.

6.Companies push up prices in order to … their profit margins. a) minimize;

b) become; c) improve.

7.Demand-pull inflation occurs when injections exceed … .

a)withdrawals;

b)means;

c)queues.

VI. Answer the questions.

1.What changes does inflation bring?

2.What types of inflation do economists recognize?

3.Why is it necessary to issue new monetary units under hyperinflation?

4.How is the effect on prices minimized under conditions of suppressed inflation?

5.Which type of inflation brings more economic problems, hyperinflation or suppressed inflation? Why do you think so?

6.When does demand-pull inflation take place?

7.What can cause an increase in costs and as a result cost-push inflation?

15

UNIT 3

DREAMS

When Mike Clare left college at 18 with a basic business diploma, he started working for a furniture shop in the beds department. Eventually, he became a manager, but when he was 35 and after 12 years working for someone else, he decided it was time to start his own business. He got a small loan and sold his car to raise some money and found a small shop which was in a terrible state but was cheap. He started the Sofabed Company and within two years, he had three stores. After a while, he decided to concentrate only on beds because they take up less space and you can store more of them. He also found that beds were easier to sell because people are less concerned about the look of a bed than a sofa. He changed the name of the company to Dreams and has not looked back since.

Dreams has built its business on four main selling points: Choice, Price, Delivery and Comfort. This simple formula and Mike's enthusiasm have taken the business to over 150 superstores. Distribution has been the company's biggest challenge, and they now have a fleet of over 100 vans. They have also given a lot of special attention to customer service. When a Dreams driver delivers a bed, he puts on a special pair of slippers to avoid making a mess. 'The slippers cost us virtually nothing, but after a delivery it's all the customers can talk about,' explains Clare.

Dreams has established a reputation for quality and service and has won the Retailer of the Year prize three times. In 2005, it launched an online store and has recently opened its own bed factory. The company is still growing and it has branched out into the international market through franchising. Clare is optimistic about the future. 'It's not easy, and a lot of businesses do fail' he admits. 'But it's not as complicated as a lot of people think either.'

I. Make up word combinations.

16

II. Synonyms or antonyms? Mark the pairs of synonyms with the letter

“s” and the pairs of antonyms with the letter “a”.

7)delivery, distribution ___

8)customer, shop assistant ___

IV. Answer the questions.

1.How did Mike Clare start his career?

2.Why did he concentrate only on beds?

3.What are his main selling points?

4.What was the company’s biggest challenge? How did they solve the problem?

5.Have they established a good reputation? Prove your answer.

6.Are they doing well now? Prove your answer.

V. Use the following key words to speak about Mike Clare and his company “Dreams”.

18, diploma, furniture shop,

35, own business: loan, car → small shop,

Sofabed company,

concentrate on beds (space, look) selling points,

challenge – distribution, 100 vans, reputation, prize,

2005 online store, franchising → international market, optimistic.

17

BLACKCIRCLES.COM

Read the words.

financial, experience, spectacular, employee, reliable, franchise, identify, supply

Read the text.

MICHAEL WELCH left school at 16 and started work in a garage as a car-tyre fitter. He quickly learnt about the car-tyre business and decided to set up his own mail-order company. He advertised in motoring magazines and sold high-performance specialist tyres. He knew very little about running a business so he took a college course to study aspects like financial management. His next step was to get a job with the tyre company Kwikfit where he got some experience, and was able to study his future competition. After a year there and still only 20, he decided it was time to go it alone.

His company, Blackcircles.com, allows customers to order tyres on the Internet and get them fitted within a day at one of its affiliated garages. Its low-cost, speedy service has proved to be a spectacular success. Welch started in an office with a single desk which he rescued from a rubbish bin. At the beginning he needed to find reliable garages to fit the tyres and spent a lot of his time approaching and checking fitters across the country. After six months, he took on his first employee to help and the business began to grow, despite some problems with his investing partners.

These days, Blackcircles.com is a thriving business and the company has built up a network of 970 franchise outlets. The company has set up a central call centre which phones every single customer to get feedback on the service. This way Welch can see how garages are performing and identify problems. 'We've spent time on the basics, making sure customers are getting the right service,' he says. Growth has been slower as a result, but he thinks this is a secret of his success. As it says on the company website, 'We have supplied and fitted tyres for thousands of satisfied customers, many of whom have bought tyres from Blackcircles.com again and again.' Recently the company has launched a specific web-based service for customers with fleets of cars and has added motorbike tyres to its range of over 20,000 tyres.

I. Translate the words and make up sentences with them.

18

II. Find synonyms for these words in the text.

1)cheap;

2)successful;

3)shop, market;

4)worker.

III. Mark the sentences true (T) or false (F). Find the information in the text to prove your answer.

1.M. Welch set up his own mail-order company when he was twenty.

2.He got a job with the tyre company Kwikfit and then studied financial management.

3.Blackcircles.com is an Internet company that sells tyres.

4.M. Welch spent 6 months to find reliable garages and to approach and check fitters.

5.Blackcircles.com is not successful now.

6.A central call center helps Welch to find problems.

7.The company is successful because they don’t spend time on the basics.

8.Welch has a web-based service for customers with many cars.

IV. Use the following key words to speak about the company “Blackcircles.com”.

car-tyre fitter, mail-order company, financial management, Kwikfit, 20, Blackcircles.com: order, get fitted,

garages, fitters, employee,

970 outlets, call center, identify problems, success, web-based service, motorbike tyres.

19

UNIT 4

NINTENDO

Read the history of Nintendo below. Complete the text using the words and phrases in the box.

advertising competitor console innovation manufacture mass-produced partnership playing cards sales trade sold cost

NINTENDO is one of the best-known brands in the world and a leader in interactive video entertainment – a multi-billion dollar industry. The company has a history which dates back to the nineteenth century.

1889Fusajiro Yamauchi founds a small company to manufacture traditional

around in your pocket. The package includes Tetris – one of the most

1994 Sony releases the Playstation, which works as a CD player as well as a console. Nintendo faces a major new (g).............. and sales suffer badly. 2001 Nintendo launches a sophisticated new console, the GameCube. Sales are poor but at the same time in the USA, the 'GameBoy Advanced'

GameBoy Advanced, Nintendo decides to concentrate on the portable market and release a new handheld console – the Nintendo DS (Dual Screen). The DS is popular but has to compete against Sony's new handheld, the PSP.

2006 Things look bad for Nintendo, but once again, a brilliant (i) ..............

saves them from disaster – the 'Wii'. Its most brilliant feature is a 'wand' which allows players to physically move while they play a game of tennis on

20