Добавил:
Upload Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз: Предмет: Файл:
Моісєєва Ф.А. та ін.We Study Economics..doc
Скачиваний:
76
Добавлен:
13.11.2018
Размер:
26.27 Mб
Скачать

7. Market

Lead-in:

  1. demand for goods – попит на товар

  2. domestic marketвнутрішній ринок

  3. stock marketфондова біржа

  4. market shareчастка на ринку

  5. consumptionспоживання

  6. meet the demandзадовольняти попит

An area where there is a demand for certain goods is called a market. A company which sells goods locally caters for the local market. Goods sold in the same country as they are produced are sold on the home (or domestic) market. A company which sells goods abroad is an exporter. An exporter sells goods on the international (or overseas) market. An importer buys goods abroad and imports them into his own country.

There are a lot of markets: stock market, money market, labour market, etc.

Some markets, shops and stalls physically bring together the buyer and the seller. Other markets, Stock Exchanges for example, operate chiefly through intermediaries (stockbrokers) who transact business on behalf of clients. Both of them determine prices that ensure that quantity people wish to buy equals the quantity people wish to sell. Price and quantity cannot be considered separately. All trade depends on supply (having goods or services to sell) and demand (consumers, people who whant to buy). If you increase production but demand remains stable, the price will fall. Therefore many large suppliers do not produce to their maximum capacity. They put a ceiling on their output to keep the price high. A group of companies or countries producing the same sort of goods are called a cartel and when they completely control the market in those goods they are said to have a monopoly. In the USA there are antitrust laws against this sort of practice which kills competition. The percentage of the total of one kind of goods sold by one company or country is called its market share. However, suppliers usually keep stocks of theirs product so that if consumption suddenly increases, they can meet the demand. Certain goods always keep a percentage difference between their prices so if the price of one rises or falls, the others do the same. This is called maintaning the differentials. When several products are linked in this way, the price of one of them is usually taken as the reference price for all the others. If goods cannot be sold in the market, they will cease to be produced.

The market reflects any change in the economy. It is sensitive to interest rates, inflation, employment and political events in any country.

Questions for comprehension check-up and discussion:

  1. What do we call an area where there is a demand for certain goods?

  2. What is the home (or domestic) market?

  3. Where does an importer (exporter) buy and sell goods?

  4. Does all trade depend on supply and demand?

  5. What is a monopoly?

  6. Does the market reflect any change in the economy?

  7. What are the factors the market is sensitive to?

8. Company structure

Lead-in:

  1. body – орган, установа

  2. Executive Board – виконавча рада

  3. stock holder – акціонер

  4. Chief Executive Officer (CEO) – головний виконавчий керівник;

  5. power – повноваження

  6. research and development – наукове дослідження, розвиток (розширення роботи)

  7. department – відділ

  8. market research – дослідження

  9. advertising and promotion sector – сектор реклами та рекламного заохочення до купівлі товару

  10. public relations – публічний зв’язок

  11. affiliates – філіали

  12. parent company – основна компанія

  13. chain of command – ланцюг (порядок) влади

The highest executive body in a company is the Executive Board (or the Board of Directors). It is accountable to stockholders, and the Board reports to them at the annual stockholders’ meetings. The President is the nominal head of the company, and is elected at the annual stockholders’ meeting. But the President does not supervise the day-to-day running of the company. That is the duty of the Senior Vice-President, or Chief Executive Officer (called a Managing Director in Britain). He or she has the real executive power. The other members of this board are also vice-presidents.

Every Vice-President is responsible for the operation of one or more departments. Executive departments may vary, depending on the company and its activity, but some that are found most frequently are Production, Marketing, Finance, Personnel (Human Resources), and Research and Development (R&D). The Personnel Department is usually under the supervision of the Vice-President for Finance and Administration, while the R&D Department is under the Vice-President for Production. Department heads are called directors or managers. They are supervised by vice-presidents. Departments, in their turn, may be subdivided into sections or sectors. For instance, the Marketing Department may have a Market Research Sector, a Sales Sector, and an Advertising and Promotion Sector.

There are some peculiar positions in a company’s hierarchy. One of them is a Public Relations Manager who either belongs to the Marketing Department or heads a special sector. His or her responsibilities are to create and maintain the best possible image for the company in the eyes of the public.

Many companies, especially multinational corporations, are also divided geographically. There are special departments, managers, directors, or even vice-presidents responsible for operations in certain geographical territories.

Corporations often have subsidiaries (affiliates) that are more or less autonomous. An affiliate is another company owned by a parent company. An affiliate or subsidiary appears when a parent company becomes the owner (proprietor) of more than 50 % of its capital.

Thus the structure of a company is quite complicated. This structure and hierarchy is called “the chain of command” and ensures the company’s efficient functioning.

Questions for comprehension check-up and discussion:

  1. What is the highest executive body in a company?

  2. Is the Board of Directors accountable to stockholders?

  3. Who is the nominal head of the company? Is he elected?

  4. Who supervises the day-to-day running of the company?

  5. What are the departments of the company that are found most frequently?

  6. What are the responsibilities of a Public Relations Manager?

  7. What is an affiliate?

  8. When does an affiliate appear?