- •Text 1. History of economic thought
- •1Complete each sentence with a word or phrase from the box.
- •2 Now read the text again and decide whether these statements are true or false.
- •Exercises
- •1 Choose the correct answer a, b or c from the list below.
- •3. Discuss these questions with your partner.
- •Exercises
- •1.Complete each sentence with a word or phrase from the box.
- •Exercises
- •1.Match the words and phrases with the definitions.
- •2.Now read the text again and answer these questions in your own words in the space provided below.
- •3.Now listen and tick which transactions in the list are mentioned.
- •Exercises
- •1. Choose the correct answer a, b or c from the list opposite.
- •2. Now read the text again and choose the sentence which best summarises each paragraph.
- •3.Discuss this question with your partner.
- •Exercices
- •1.Match the words and phrases with the definitions.
- •2. Now read the text again and decide whether these statements are true or false. If the statement is false, correct it.
- •3.Discuss this question with your partner.
- •4. Try to complete this paragraph about autarchies by using words from the box.
- •Exercises
- •1.Match the words with the definitions.
- •2.Now read the text again and match each paragraph with the correct heading.
- •Exercises
- •Match the words and phrases with the definitions.
- •3. Discuss these questions with your partner.
- •Exercises
- •1. Answer the questions.
- •2. Choose the necessary word and put in the sentence.
- •Exercises
- •1.Choose the correct answer a, b or c from the list opposite.
- •2. Now complete each sentence with words. Then listen and check your answers.
- •4. Discuss the following with your partner.
- •Exercises
- •1.Now read the text again and answer these questions in your own words in the space provided below.
- •2 Choose the correct answer.
- •In the real economy:
- •Exercises
- •I. Match the words with the definitions.
- •II.Now read the text again and complete the sentences below in your own words in the space provided.
- •III. Discuss these questions with your partner.
- •Dialogue
- •Exercises
- •1.Choose the necessary word and put it in the sentence.
- •Answer the questions.
- •Make transformations according to the model.
- •Exercises
- •Answer the questions.
- •2. Choose the necessary word and put it in the sentence.
- •Exercises
- •1. Change the sentences according to the model.
- •Make up the conditional sentences.
- •3. Answer the questions.
- •Exercises
- •Dialogue
- •Exercises
- •Exercises
- •1.Complete each sentence with a word or phrase from the box.
- •3 Now listen and complete the summary with words or numbers.
- •5. Give a two-minute talk on price. First make notes below on the following.
- •6. Imagine that you’ve got a good idea for an Internet commerce site (an Internet site which is also a business).Tell your friend what your idea is.
- •Dialogue
- •Change the sentences according to the model.
- •2. Change the sentences according to the model.
- •3. Answer the questions.
- •4. Make sentences interrogative and negative.
- •5. Choose the necessary modal verb and put it in the sentence.
- •1. Complete each sentence with a word.
- •Exercises
- •Dialogue
- •Exercises
- •Change the sentences according to the model.
- •3. Answer the questions.
- •Exercises
- •Dialogue
- •Exercises
- •I. Transform the sentences according to the model.
- •III. Answer the questions.
- •I. Answer the questions.
- •II. Select the necessary word in the sentence.
- •Dialogue
- •Exercises.
- •Exercises
- •I. Answer the questions.
- •Dialogue
- •Exercises
- •III. Answer the questions.
- •Exercises
- •1. Answers the questions.
- •2. Choose the necessary word and put.
- •3. Put the verbs in brackets into the proper present tense
- •Dialogue
- •Exercises
- •Transform the sentences according to the model.
- •Exercises
- •Exercises
- •II. Read the text again and choose the best answer or answers for each question.
- •Informal letter
- •Iy Work in groups of three or four. Imagine you and your friends are running the country.Things are not going well! Here are some of your problems.
- •Dialogue
- •Exercises
- •Give affirmative and negative answers to the questions.
Dialogue
(Jean has just moved into a new house. Her neighbour, Liz,
has come over to welcome her.)
Jean I am very glad to see you here.
Liz How do you like the new place?
Jean It’s marvelous. 1 am sure we are going to love living here.
Liz Well, have a look, here it’s a shopping guide for the
neighbourhood and a booklet of discount coupons. New neighbours always receive them. There is one coupon for every store in the shopping guide.
Jean Oh, thank you. It’s come in time. I have a lot of shopping to do.
Liz I can imagine, having just moved in. Not far from
here there’s a very good shopping center. You can also find a huge supermarket, a drugstore, some department stores in the neighbourhood.
Jean Great. Are there any small stores nearby?
Liz Oh, yes. The map is right here in the shopping guide. There is a little drugstore a few blocks away, a little grocery store next to it, a little boutique, an ice cream parlor, a pizza place. You can find a plant store not far from here too.
Jean Are there any good discount houses nearby? We
terribly need a new toaster. Everybody in my family likes toasts for breakfasts very much. I’d like to buy it.
Liz Oh, sure. There is a good discount store in the shopping center. If you like, I’ll come with you.
Jean Oh, you needn’t. I don’t want to trouble you.
Liz No trouble at all. I’d like to do some shopping too.
If we go to the discount center I can go to that little cheese shop. I don’t want to bother you.
Jean It’s no bother at all. Make out your shopping list
and I’ll be your guide. By the way, you can use your discount coupon for the toaster.
Liz I am sure you’ll buy a good one.
Jean Well, it’ll take some time to make a shopping list. I’ll have to buy a lot at the grocer’s.
Liz This is a good idea. I should have gone shopping yesterday, so I’ll make up my list too.
Jean By the way, I like your dress very much. It’s a perfect fit. Where did you buy it, if you don’t mind my asking?
Liz Thank you for compliment. I got it at a very nice little boutique. It’s a bit expensive, but there are many interesting and original things. If you are interested we can stop there.
Jean I’m afraid I can’t. I have to cook dinner.
Liz Oh, don’t trouble yourself with the dinner. Look over the coupons I’ve given you. You can go out to dinner at a discount store.
Exercises
1. Change the sentences according to the model.
Model: My wife usually asks the children to do shopping. My wife usually makes children do shopping.
1. He’ll ask single line retailers to take part in the promotion campaign.
2. The chief usually asks his immediate subordinates to perform different functions.
3. It’s necessary to ask him to recognize his wholesaling
units.
4. It’s important to influence ultimate consumer to buy this product.
5. Ask him to buy all these things in the discount house.
2. Make responses to the sentences according to the model.
Model: I want to ask your brother to do shopping today. Let me do shopping today myself. 1.1 want my secretary to prepare the financial statement.
2. The board of directors wants the officers to plan product development.
3. He wants to speak with my friend about their possible partnership.
4. I want a lawyer to clarify this matter.
5. The executive wants this manager to start market research.
3. Answer the questions.
1. What kind of shops in this country do you know?
2. What shops are situated not far from your house?
3. What goods can be bought there?
4. What specific features do channels of distribution have in country?
5. What reforms does this country need to reorganize the channels of distribution?
Unit 6
Text. Price discrimination
The market price for a product is like a signpost for companies. It shows them more or less what people are prepared to pay. Nevertheless, companies can set their prices just above or just below the market price if they want. They can even choose to ignore the market price completely. In the real world of business, setting prices involves skill, guesswork and risk-taking. Companies have lots of pricing tricks which help to increase profits. One of these tricks is price discrimination.
Price discrimination means charging a different price for the same product to different customers. For example, you walk into a shop and buy a CD for €15. A few minutes later, I walk into the same shop and buy another copy of exactly the same CD. This time, the shopkeeper charges me €20! That’s price discrimination.
There are different types, or degrees, of price discrimination. First degree price discrimination is when almost every consumer pays a different price for the same product. How can this happen? Remember that the demand curve slopes downward. In theory, every consumer has their own point on the curve. In other words, each person values the product differently. You may think that an Elton John CD is worth €20, whereas I think it’s only worth 50 cents! We are on different points on the demand curve. With first degree discrimination, each consumer will pay what he or she thinks the product is worth, and sellers charge each person accordingly.
This all sounds great, but it is not usually practical in the real market place. Nevertheless, it is sometimes possible. An auction, for example, works in this way. In an auction, each consumer makes a bid for the product, and the highest bid wins. In this way, the product is sold at a price that the buyer thinks is right. Auctioning is becoming more and more common on the World Wide Web, and auctioning websites have become very big business.
Second degree price discrimination is more common than first degree discrimination. It involves changing price according to how much of the product is sold. For example, if a customer buys three pencils, they pay one euro per pencil. If they buy 300 pencils, they pay only 75 cents per pencil. This is a kind of reward for buying large amounts. This kind of discrimination is important for retailers. It allows shopkeepers to buy goods in bulk from wholesalers at lower prices. Shopkeepers then add a markup price when they sell the goods on to ordinary customers.
What about third degree price discrimination? This is when certain types of customer are charged different prices. For example, pensioners and students often get discounts on public transport or for arts events. These people cannot afford the normal market price. By offering discounts, companies widen their market share but still make a profit.