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representatives. 8. He said, that the price of the product (to cover) not only the costs of production but also the cost of advertising by that time. 9. Key marketing decisions (to be) made within limits set by the organization.

V.Underline the infinitive and identify its form.

1.In order to conquer the general market, marketers aim to create a brand name recognition. 2. When sales are slow, business owners have a tendency to put more pressure on their sales staff. 3. To maximize the benefit of marketing research, those who use it need to understand the research process and its limitations. 4. It's not uncommon for people to confuse the difference between a marketing strategy and a marketing plan. 5. This company seems to be increasing its profits from existing brands. 6. The focus of advertising is to create a reason for purchase, the focus of promotion is to create an incentive to buy. 7. The marketing department head is reported to have presented a new product line. 8. To serve both buyers and sellers, marketing seeks 1) to discover the needs and wants of prospective customers and 2) to satisfy them. 9. For marketing to occur, at least four factors are required: 1) two or more parties with unsatisfied needs, 2) desire and ability on their part to be satisfied, 3) a way for the parties to communicate, 4) something to change.

VI. Underline verbal constructions. Translate the sentences into Russian/Belarusian.

1. A company must invest in marketing so as not to miss the opportunity of being discovered. 2. One of the critical aspects of marketing management is identifying the target market and creating market segments. 3. Promotional tools are used to encourage consumers to buy. 4. Once a firm gains a pioneering advantage, it can maintain it by improving the product. 5. It is impossible to speak about marketing without understanding what “needs” and “wants” of the market are. 6. Marketing is not believed to be the same thing as advertising or promotional selling. 7. We prefer the advertising campaign launched by our advertising department.

VII. Open the brackets, use the correct form ofthe infinitive, gerund or participle.

1. An effective marketing plan should consist of important things needed to help a company (to succeed). 2. A company has to have style and unique approaches in (to introduce) the product and (to make) it sell. 3. Businesses that have a hard time (to sell) their available product or services are more aggressive in pushing sales, pricing, and distribution. 4. The company should not just focus on promotional activities and advertising programs but must take efforts (to expand) the network. 5. Many companies have succeeded in (to attempt) to satisfy

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the needs of particular market segments. 6. Although this approach can be cost effective, the firm risks (to lose) potential customers. 7. The report made us (to review) our forecasts. 8. The government wants to forbid companies (to advertise) alcoholic products on television. 9. The marketing department is keen on (to increase) the proportion of sales on credit.

VIII. Open the brackets, use the correct form of the verbs in the conditional sentences.

1. If you order 20 units, we (to give) you a 15 % discount. 2. If I were the owner, I (to tell) the staff that in a situation like this, they should try a different marketing strategy. 3. If you (to concentrate) on your marketing strategy last month, you would have made fewer mistakes in your business plan. 4. If you (to do) what I advised, your company would not be in trouble now. 5. If we hadn’t invested money in marketing research before, we (to lose) our profits now. 6. If I were you, I (to try out) new promotional strategies long ago. 7. If we (to have) good advertising, the product will be a success.

UNIT VI

THE GLOBAL ECONOMY

Section I. WORD LIST

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Economies, like living organisms, always evolve in response to challenges and opportunities. Over the next decade or so, the New Economy – so far propelled mainly by information technology – may turn out to be only the initial stage of a muchbroader flowering of technological, business, and financial creativity.

To be sure, the path from the New Economy to the 21st Century Economy will likely be a bumpy one. But one of the grounds for a dynamic change in the world is that many countries today have to support new technologies.

That is to say, the 21st Century Economy is an economy driven by technological progress, which is a key element of the new paradigm. With the advent of the Internet, the information revolution seems to be spreading and accelerating rather than slowing down. Biotechnology is on the verge of having a major economic impact. And in labs across the world, scientists are driving toward the frontiers of nanotechnology, with the goal of creating new devices that can transform entire industries.

In fact, one of the top priorities for the governments today is to shift financial resources to innovative sectors. Venture capital, initial public offerings, and junk bonds enable new ideas to get funded relatively easily, while lagging companies are punished by being taken over or bought out. And finally, intellectual property protection is one of the central public policy pillars on which the knowledge-based industries and global markets of the 21st century rest. IP protection stimulates innovation and spurs sustainable and widespread economic growth by providing incentives that ensure a sufficient supply of new inventions and creations. Sound framework conditions for a well-constructed IPR regime, therefore, are indispensable.

A second key element of the new paradigm is green economics – the recognition that the conservation of resources and the reduction of waste have become economic necessities. The old idea that there are tradeoffs between economic growth and environmental protection is outmoded; today economic growth requires that we transit away from fossil fuels and squeeze waste out of our production processes.

A third key element of the new paradigm is pursuing the “high road” is the organization of work places. The old workplace, in which managers simply told employees what to do, is gone. People will most likely work in a team and share in decision making and other management tasks. Productivity in the 21st century is enhanced by empowering employees and providing them with good pay and decent benefits.

Other elements of the new paradigm include a focus on the problem of providing high quality care – health services, child care, education, and services for the elderly. These have become central economic activities and they cannot be produced on an assembly line. Maintaining a healthy private sector is crucial.

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The world needs also to rethink the role of finance in the economy – shifting from the current focus on speculation to smart finance that pursues productive investments. Many researchers believe that smart money is no more likely to earn above-average returns than funds invested by typical investors.

Similarly, a commitment to free trade and relatively open immigration is an essential part of a pro-innovation policy.

Policy, by itself, can guarantee a new age of innovation. And just as a seed grows better in the right soil, forward-looking policies create a better environment in which bright ideas can flourish.

Ex. 1. Pronounce the international words correctly.

Ex. 2. Match the words in column A with their synonyms in column B.

Ex. 3. Match the words from column A with their definitions in column B.

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Ex. 4. Match Russian and English equivalents.

Ex. 5. Insert the necessary prepositions.

1. As the result of globalization many businesses trade … the world, where is … the past they may have focused … one country, or possibly single continent. 2. Floating exchange rates have led … the removal … controls … the international movement of capital. 3. Any activity that can be conducted … a screen or … the telephone, from writing software to selling airline tickets can be carried out anywhere in the world, linked to head office by satellite and computer. 4. Even medical advice or education can now be sold … a distance of the telecoms networks.

Ex. 6. Review the following statements and mark them true (T) or false (F). Correct the statements which are false.

1. Economies always evolve in response to challenges and opportunities of the society. 2. Scientists are driving toward the frontiers of nanotechnology, with the goal of creating new devices that can transform entire industries. 3. Today economic growth doesn’t require that we transit away from fossil fuels and squeeze waste out of our production processes. 4. People will most likely work in a team and share in decision making and other management tasks. 5. A commitment to free trade and relatively open immigration isn’t an essential part of a pro-innovation policy.

Ex. 7. Complete the sentences.

1. Economies, like living organisms, always evolve… 2. The 21st Century Economy is… 3. One of the top priorities for the governments today is… 4. A

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second key element of the new paradigm is… 5. A third key element of the new paradigm is… 6. The world needs… 7. Policy, by itself, can guarantee…

Ex. 8. Answer the questions.

1. What are the basic grounds for a dynamic economic change in the world today? 2. How will you comment on the fact that the 21st Century Economy is an economy driven by technological progress? 3. What are the components of technological progress of the 21st century? 4. What are the advantages of using venture capital, initial public offerings, and junk bonds? 5. What is the second element of the new economic paradigm? 6. What is labour productivity in the 21st century characterized by? 7. What are the other elements of the 21st century economic paradigm?

Ex. 9. Make a brief summary of the text.

TEXT B. Globalization

Task: Scan the text focusing on the advantages and disadvantages of globalization.

Globalization means the integration and democratization of the world’s culture, economy, and infrastructure through transnational investments, rapid proliferation of communication and information technologies and impacts of freemarket on local, regional and national economies.

What are the causes of increasing globalization? One of the primary facilitators of the global marketplace is the technological advance of the telecommunications industry. In the days of Adam Smith the opportunity to closely coordinate the activities of several foreign operations simply did not exist. Today, communication between most parts of the world is instantaneous. A manager in Bonn can telephone a manager in Rio de Janeiro to discuss the latest news regarding the orange crop. If the Brazilian manager wants to send some contracts to the German manager, it can be done by fax. If the data demands are larger, the information can be transferred via the Internet.

Another facilitator is the technological advance of the transportation industry. Between 1500 and 1840 the best average speed of horse-drawn coaches and sailing ships was about ten miles per hour. Between 1850 and 1930, steam became a dominant technology, with trains averaging sixty-five miles per hour and ships increasing their speed to thirty-six miles per hour. In the 1950s, propeller aircraft achieved speeds of three hundred to four hundred miles per hour. These speeds later increased to over six hundred miles per hour with the advent of the jet-engine technology. These advances have greatly increased the potential for flows of goods and individuals across national borders.

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In addition to advances in transportation and communication, some scholars, speak of the convergence of consumer preferences and tastes. The tastes of teenagers, for example, around the world may be as much formed by Hollywood movies and MTV as they are by cultural heritage. This reality encourages a global-market approach to business as companies attempt to reach the largest number of consumers at the lowest price possible.

Another factor leading to a more globalized marketplace is the historical decrease in tariff and non-tariff barriers. Closely related to the liberalization of trade, technological advantages, and the convergence of consumer preferences are a set of competitive factors centered around the ideas of economies of scale (larger production volumes generating lower per-unit production costs) and location advantages.

Globalization plays an important role in fostering economic relations among nations across the world as it ensures easier movement of goods and services between countries and leads to free trade between countries along with a faster flow of information across geographical boundaries. It leads to reduction in cultural barriers which has proved to be conductive for economic co-operations among nations. Globalization has provided the movement of capital between countries and given a rise to multi-national corporations that undertake economic activity across geographical borders. Besides, it has helped to address environmental issues which are strategic to international economic relations.

Ex. 1. Comment on the following pros and cons of globalization.

Advantages of Globalization

-Increased free trade between nations.

-Increased flow of communications allows vital information to be shared between individuals and corporations around the world.

-Greater ease and speed of transportation for goods and people.

-Reduction of likelihood of war between developed nations.

-Increases in environmental protection in developed nations.

Disadvantages of Globalization

-Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor.

-Threat that control of world media by a handful of corporations will limit cultural expression.

-Greater chance of losing cultural heritage.

-Greater risk of diseases being transported unintentionally between nations.

-Decreases in environmental integrity as polluting corporations take advantage of weak regulatory rules in developing countries.

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TEXT C. International Trade

Task: use the title and headings to predict the content of the text.

International trade is exchange of capital, goods, and services across international borders or territories. Trade in goods is known as visible exports and visible imports. Trade in services such as banking, insurance, and tourism is known as invisible exports or invisible imports.

While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system.

International trade is a form of specialization. Sri Lanka, for example, specializes in tea because it has an appropriate climate and soil, and skilled growers and packers.

The principle of comparative advantage is a central concept in international trade. Economic theory distinguishes between absolute advantage and comparative advantage.

A country has an absolute advantage in the production of a product when it (a) is the only country that makes the product, or (b) can make the product at a lower costthananother country.

The theory of comparative advantage embraces two related concepts: (a) a country with absolute advantages in a number of different products should concentrate on the products which bring the greatest advantage, and (b) a country with no absolute advantages should concentrate on the products which bring the least disadvantage.

The majority of economists believe that international trade should be based on comparative advantage and free trade. Free trade is a system which allows certain countries to buy and sell goods from each other without any financial restrictions.

The effects of free trade can be determined by comparing the domestic price without trade to the world price. A low domestic price indicates that the country has a comparative advantage in producing the good and that the country will become an exporter. A high domestic price indicates that the rest of the world has a comparative advantage in producing the good and that the country will become an importer.

When a country allows trade and becomes an exporter of a good, producers of the good are better off, and consumers of the good are worse off. When a country allows trade and becomes an importer of a good, consumers are better off, and producers are worse off. In both cases, the gains from trade exceed the losses. The other economic benefits of trade are:

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Increased variety of goods: Goods produced in different countries are not exactly the same. Free trade gives consumers in all countries greater variety from which to choose.

Ex. 1. Review the following statements and mark them true (T) or false (F) Correct the statements which are false.

1. Comparative advantage is the ability of a country to produce a good using fewer resources than another country. 2. The principle of absolute advantage is a central concept in international trade. 3. A high domestic price indicates that the country has a comparative advantage in producing the good and that the country will become an exporter. 4. Opening up trade fosters competition and gives the invisible hand a better chance to work its magic. 5. Some goods can be produced at low cost only if they are produced in small quantities. 6. Free trade gives firms access to larger world markets and allows them to realize economies ofscale more fully. 7. International trade is a formof specialization.

Ex. 2. Answer the questions.

1. What is international trade? 2. How can you define free trade? 3. What are definitions of an absolute and comparative advantage? 4. What are the benefits of international trade? 5. Which of them do you find the most important?

TEXT D. Economic Cooperation

Task: Skim the text and get the general idea about the stages of economic integration.

In the era of globalization, countries have realized that economic cooperation with other nations is strategically important for the growth of the economy. Only international co-operation can shape globalization in a positive way, and make it equitable for all.

Development of economic cooperation is a long-term process. Three factors are especially important for its successful development: ownership of the process by developing countries; effective dialogue between developing and developed countries; coherent policies in developed countries in areas such as trade, investment, intellectual property rights, and agriculture, that will have a maximum positive impact on developing countries.

In the era of globalization, countries have realized that economic integration with other nations is strategically important for the growth of the economy. The degree of economic integration can be categorized into six stages:

-Preferential trading area.

-Free trade area.

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