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3.3. Answer the questions:

1. Who makes production decisions in a market economy (firms or a government, other planning authority)?

2. Who else Give has the power to determine what is produced?

3. How can the consumers lose their power to decide prices and strategies?

4. When firms can ignore social and environmental problems?

5. How are privately owned companies that work together with nationalized companies run by the State are called?

6. What is the role of the government especially in the cases of the utilities or healthcare?

7. Why do you think they introduced?

8. What do the former Soviet Union Countries central management place control on?

9. What are the potential advantages with this system?

10. Why are surpluses and shortages in production common?

3.4. Now match the words (1-10) with the correct meaning.

1) profit

2) free enterprise

3) efficiency

4) decentralization

5) consumer sovereignty

6) monopolies

7) safeguarding

8) innovation

9) surpluses

10) shortages

a. an economy without interference from the state;

b. situations where one owner or group of owners control all the market for a particular product or sector;

с. situations where there is a lack of products;

d. situations where there is an excessive amount of products;

e. the net sum of money made by an entrepreneur;

f. a situation where the user plays the most important role;

g. protecting;

h. development;

i. a situation where the business or management of a company is distributed, not concentrated in the head office;

j. when work is carried out without any delays, mistakes;

3.5. Translate the sentences, where the subject - in fact another part of the sentence.

  1. Goods and services are exchanged according to price mechanisms. (Обмен)

  2. The market economy contributes to a greater efficiency in production and the allocation of resources. (Благодаря)

  3. However, the market economy can create unemployment, in that jobs are sacrificed to contain prices. (Из-за)

  4. However, in recent years many Western countries have seen a growth in the private sector. (Во многих)

  5. The government also makes decisions regarding taxation that influence income and therefore the distribution of goods and services. (Благодаря налогообложению)

  6. This is the opposite of a pure market economy, and is usually criticized by Western countries. (Из-за)

  7. The system has often failed because of the amount of bureaucracy that leads to mistakes and time delays.(Частые неудачи)

  8. Innovation is practically non-existent, and the consequence is that the goods produced tend to be standardized. (Из-за отсутствия)

  9. It is also difficult to assess market trends, so surpluses and shortages in production are common. (Проблемы приводят)

4. Letters of credit

4.1. Words to remember:

letters of credit

аккредитив

block

заблокировать

invoices

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