Business Plan PLUS Student's Book [Student's Book] 9788849467871

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Philippa Bowen Margherita Cumino

BUSINESS PLAN PLUS Student’s Book A closer look at business studies and the global economy

• AFM, RIM, SIA and Tourism • Alternanza Scuola-Lavoro • Business English and Culture Videos • Media Files: Business and Economic Press • 21st-Century Skills

Philippa Bowen Margherita Cumino

BUSINESS PLAN PLUS Student’s Book A closer look at business studies and the global economy

Ambiente educativo digitale Un sistema integrato, facile e immediato che offre nuove opportunità di interazione docente-studenti

LIBRO DI TESTO

L’AeD è il sistema digitale integrato di DeA Scuola per l’apprendimento e lo studio. Affianca e arricchisce il libro di testo cartaceo con contenuti digitali integrativi, servizi ed approfondimenti, strumenti online per la condivisione. È un ambiente gratuito e di facile accesso, grazie alla veloce procedura di registrazione su deascuola.it

Il libro di testo, al centro dell’Ambiente educativo Digitale. La sua versione multimediale e interattiva, completa di risorse e di utili strumenti per studenti con BES e DSA, amplia le lezioni del corso con un ricco corredo di contenuti digitali integrativi.

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Può essere fruito in 2 modi:

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eBook In versione web o offline dall’App My bSmart; multidevice, personalizzabile, sincronizzabile, sempre aggiornato e adatto a una didattica coinvolgente, partecipativa e personalizzata.

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Un aiuto in più per ogni tipo di esigenza.

deascuola.it

Business Plan Plus è un corso di inglese commerciale che affianca i contenuti classici della materia ai grandi temi dell’era digitale e globale.

I materiali autentici e motivanti, l’apparato audio e video d’eccellenza, la presenza sistematica di attività propedeutiche all’alternanza scuola-lavoro e all’attivazione delle 21st-century skills consentono agli studenti di lavorare in modo efficace sulla microlingua. Lo Student’s Book è articolato in tre sezioni: • Business in the 21st century è dedicata ai grandi temi legati alla globalizzazione e al business nel modo contemporaneo. • Business theory and communication si articola in 6 moduli che affrontano teoria e comunicazione in maniera integrata e sono arricchiti da inserti per il ripasso della lingua e da un focus conclusivo sulle competenze. • Cultural context offre una panoramica sui paesi di lingua inglese secondo un approccio tradizionale che, tuttavia non rinuncia a curiosità e approfondimenti culturali più ampi.

Business Plan Plus Companion Book presenta materiali ad hoc per approfondimenti mirati su: Economics and finance, Marketing and advertising, Information technology, Tourism, Work-related-learning (alternanza scuola-lavoro), nonché Word clouds riassuntive dei principali macro-argomenti dello Student’s Book. Inoltre, il Companion Book è arricchito da esercizi in stile First e dall’approccio CLIL a numerosi temi. 4

ALTERNANZA SCUOLA-LAVORO

Business Plan Plus fornisce numerose situazioni professionali realistiche (case studies) che invitano lo studente ad agire, a riflettere e a trovare soluzioni. Tutto ciò permette di attivare le Work skills ed esercitarsi in vista dell’alternanza scuola-lavoro.

VIDEO

L’apparato video è costituito da un’ampia dotazione di materiali della BBC collegati ai temi affrontati nello Student’s Book e nel Companion Book, oltre che da dieci video appositamente modellati sulle situazioni aziendali e sui temi di civiltà affrontati nel corso.

Per dare conto della continua evoluzione del mondo dell’economia, nella rubrica Media File sono proposti numerosi articoli di settore recenti, tratti da fonti autorevoli, corredati da attività e registrati. Inoltre, tutto il corso è corredato da attività che mettono in gioco le 21st-century skills. Ad arricchire il Companion Book, la sezione di Work related-learning con compiti di realtà, pagine dedicate alle Work skills con attività di Problem solving e Word clouds riassuntive dei concettichiave esposti nello Student’s Book, utili per il ripasso.

5

Contents SECTION 1

1

Business in the 21st century

2

Globalisation VIDEO What is globalisation? A digital world MEDIA FILE The Internet has redesigned the world Global trade Global companies CASE STUDY Danone ALTERNANZA SCUOLA-LAVORO

CASE STUDY

16 18 20 22

Fiat Chrysler Automobiles

Multinationals relocation MEDIA FILE Call centres

SECTION 2

12 14

Business background

2

The business world

26 27 28 29 30 32 34 35

Business theory and communication BUSINESS LANGUAGE

Production Commerce MEDIA FILE

Uncontrolled protectionism

Business structures • Sole traders / Partnerships • Limited companies VIDEO CASE STUDY Diesel CASE STUDY Lambretta • Cooperatives / Franchising CASE STUDY Crocodille

ALTERNANZA SCUOLA-LAVORO

Kung Fu Schools Business growth MEDIA FILE

CASE STUDY MEDIA FILE

Patak Indian Food Facebook buys WhatsApp

66 70 74

Requesting (1) Offering Trends: basic language

76 78 80

98 98 100 101

Company departments Company jobs Describing hierarchy Describing responsibility

110 111 112 113

102 104 106 107

3

VIDEO Marketing • Situation analysis: market research • The marketing mix • Marketing services • Digital marketing • Advertising MEDIA FILE Does the tweet increase sales?

132 134 136 138 139 140 142

The imperative Adjectives

144 146

4

Foreign trade terms • Sales contract • Incoterms • Risk assessment Methods of payment • Open account / Bank transfer • Clean bill collection • Documentary collection • Documentary letter of credit / Payment in advance

158 158 159 160 161 161 162 163 164

Requesting (2) Granting and refusing requests Questioning Word groups

166 168 170 171

Marketing

Enquiring

6

Technology and the workplace MEDIA FILE Smart working E-commerce MEDIA FILE E-commerce in Italy IT- Information Technology MEDIA FILE Amsterdam canal house Technopoles MEDIA FILE Silicon Valley

24 25

VIDEO

BUSINESS THEORY

1

Technology

3

4

Responsible business A fragile world Renewable energy MEDIA FILE A carpet on the seafloor MEDIA FILE The island of Eigg Recycling MEDIA FILE Kenyan firm turns flip-flops into art Green business CASE STUDY Whole Foods Market Fair trade MEDIA FILE The Fairtrade mark turns 15 Ethical banking MEDIA FILE Banca Etica

36 38 39 40 42 43 44

Inequalities: poverty Fighting poverty: microcredit Deindustrialisation Emerging markets CASE STUDY China ALTERNANZA SCUOLA-LAVORO CASE STUDY India ALTERNANZA SCUOLA-LAVORO

BUSINESS COMPETENCE 82 82 84 85 86

Key vocabulary Business skills

Job searching • The curriculum vitae • Europass Applying for a job • Letter plan and phraseology VIDEO Job interviews • Key language: interview strategies

114 116 117 118 119 122 123

Key vocabulary Business skills

Taking part in market research

148

Key vocabulary Business skills

CASE STUDY

CASE STUDY

CASE STUDY

Enquiries • Key language: telephone enquiries • Letter plan and phraseology Replies to enquiries • Key language: replies to enquiries • Letter plan and phraseology

50 52 54 56 58 60

46 47 48 49

BUSINESS COMMUNICATION Methods of communication • Oral communication • Key language: telephone calls • Visual communication • Written communication

Global issues

172 174 179 182 184 189

Key vocabulary Business skills Into work

Into work

Into work

Into work

ALTERNANZA SCUOLA-LAVORO

92 93 94

ALTERNANZA SCUOLA-LAVORO

126 127 128

ALTERNANZA SCUOLA-LAVORO

152 153 154

192 193 194

7

SECTION 2

Business theory and communication BUSINESS THEORY

BUSINESS LANGUAGE

5

International trade documents • Invoicing Customs procedures

198 198 200

Placing an order Replying to and modifying an order Word groups Vocabulary extension

202 204 206 208

6

Logistics

240 240 242 246 250 252

Transport modes Payment Giving extra information Complaining

254 256 258 260

Ordering

Delivering goods

CASE STUDY

DHL

ALTERNANZA SCUOLA-LAVORO

Transport MEDIA FILE

China’s new ‘Silk Road’

Insurance MEDIA FILE

Cyber attack policies

Wordlist

277

An insight into the world of economy and finance

1

The economic environment

SECTION 3

1

Types of economic systems The public sector Trade Economic indicators Inflation

286 288 290 292 294

295 296 298 300 302

Cultural context

3

English in the world today The history of English The spread of English English around the world English at work and play MEDIA FILE Welcome to Globish

2

Unemployment The British economy British foreign trade The US economy US foreign trade

314 316 318 320 322

The United Kingdom VIDEO London Milestones in British history The Industrial Revolution The Victorian Age The British Empire Late 20th century Britain 21st century Britain

Cultural identity The four nations MEDIA FILE Scottish vote ‘No’ to independence National identity Britain, a cultural kaleidoscope America, a nation of immigrants The USA, a pluralist society

324 326 328 330 332

The UK: geography and history

4

The USA: geography and history The USA New York

VIDEO

Easy eBook and eBook • Further materials are available on the Easy eBook and are also downloadable from the online eBook • Video footage, including BBC clips and dramatized scenarios showcasing business communication skills • More Media File and Case Study texts

334 336 338 339 340 341 342 344

• Interactive activities • Audio recordings of the listening activities and of the Media File and Case Study texts • Preliminary and First Practice tests • Esame di Stato

346 348

BUSINESS COMMUNICATION

BUSINESS COMPETENCE

Orders • Key language: orders on the phone • Letter plan and phraseology Speaking: replies to orders • Key language: replies to orders on the phone • Letter plan and phraseology VIDEO • Modification and cancellation of orders

210 212 217 220 222 227 232

Key vocabulary Business skills Into work

234 235 236

VIDEO Complaints and adjustments • Key language: complaints on the phone • Letter plan and phraseology

262 264 269

Key vocabulary Business skills Into work

272 273 274

2

Banking Central banks The stock exchange Stock indexes

304 306 308 310

Milestones in American history Slavery MEDIA FILE Slavery around the world The Great Depression Late 20th century USA The new millennium

350 352

The financial world

5

VIDEO Australia Milestones in Australian history The Aborigines MEDIA FILE Australian Prime Minister promises to recognise Aborigines as nation’s first people VIDEO South Africa Milestones in South African history Apartheid MEDIA FILE South Africa after Mandela

354 356 358

English-speaking countries Ireland Dublin Milestones in Irish history Ireland and Britain Canada Milestones in Canadian history Canada, a bilingual country

CONTENUTI INTEGRATIVI

LANGUAGE PLUS

INCLASSE

360 362 364 365 366 368 369

6

Contenuti integrativi sulla piattaforma My bSmart.

370 372 373

374 376 377

Political systems A parliamentary system: the UK A presidential system: the USA The main EU institutions

378 380 382

9

Business in st the 21 century

1 Globalisation • • • • • •

What is globalisation? A digital world Global trade Global companies Case study: Danone Multinationals relocation

2 Technology • • • •

Technology and the workplace E-commerce IT – Information Technology Technopoles

3 Responsible business • • • • • •

A fragile world Renewable energy Recycling Green business Fair trade Ethical banking

4 Global issues • • • • • • • •

Inequalities: poverty Fighting poverty: microcredit Deindustrialisation Newly industrialised countries Emerging markets China profile Case study: China Case study: India

DIGITAL EXPANSIONS

1

GLOBALISATION What is globalisation? Today we live in an interconnected world. We are more involved – culturally, materially and psychologically – in the lives of people in other countries than we have ever been before. The increasing level of integration is often referred to as globalisation. From a business perspective, globalisation refers to the growing economic integration of the world. There is a freer movement of capital, goods and services between countries, a massive increase in international trade and a rise in the number of multinational corporations. Economic integration has been facilitated by three main factors. Firstly the development of technology, which has made communication fast and simple. Secondly the intervention of organisations such as the World Trade Organization and the International Monetary Fund, which have encouraged trade between countries, and thirdly the availability of cheap labour and lower costs in developing countries, which have attracted investment from multinationals.

KEY FACTORS WHICH HAVE INFLUENCED ECONOMIC GLOBALISATION

The development of the Internet and mobile technology means that people can communicate quickly and easily throughout the world.

Less developed countries have lower labour costs, even though they may have high levels of skills. Multinationals often take advantage of this by transferring their production to these places.

12

Freedom of trade

Technology

Labour availability and skills

Organisations such as the World Trade Organization (WTO) and the International Monetary Fund (IMF) have encouraged trade between countries by lowering tariffs and lending money.

Business in the 21st century

ACTIVITIES WARM UP

1

Discuss the question. • To what extent do you consider yourself a ‘global teenager’? Think about: music • food • clothes • technology • culture • current affairs

COMPREHENSION

2 Globalisation is a controversial issue and has divided opinion. Supporters of the process argue that it allows poorer countries to develop economically and that it raises standards of living there. They think that it will lead to greater economic, social and cultural equality. Opponents, however, believe that globalisation is increasing the gap between the world’s richest and poorest countries. They claim that it operates in the interests of the world’s most powerful nations, which continue to dominate world trade, at the expense of developing countries.

Read these pages and answer the questions. 1 How is our involvement in each other’s lives different today than in the past? 2 What does the term ‘globalisation’ refer to in relation to business? 3 What key factors have influenced economic globalisation? 4 What do supporters of the process of globalisation claim about its effects? 5 How do the opponents’ arguments differ?

3

Find the English equivalents for these Italian terms. 1 mondo interconnesso 2 integrazione economica 3 movimento di merci 4 commercio internazionale 5 tariffe doganali 6 costo del lavoro 7 qualità della vita 8 uguaglianza sociale 9 divario 10 paese in via di sviluppo

PRODUCTION

4

Class discussion. Look at the photographs on these pages and discuss the questions. • What does each photograph illustrate? • What aspect of globalisation does it relate to? • Is this a positive or a negative effect? Why? • What is your personal opinion about globalisation? • What aspects of it do you think are positive? • What aspects are negative? 13

1

GLOBALISATION

A digital world Some experts believe that there have only been three events of revolutionary importance in the evolution of the world: the rise of agriculture, the foundation of industry and the creation of an information society. After each of these events, the world was no longer the same. The rapid development of Information Technology (IT) over the last 25 years has accelerated the pace 1, scope and scale 2 of globalisation. The Internet and the World Wide Web, in particular, have revolutionised the way in which we access and share 3 information, conduct business, carry out 4 our work and communicate with each other.

The World Wide Web The World Wide Web (WWW) was invented in the 1990s by the Londoner Tim Berners-Lee. It transformed the Internet by simplifying the process of searching for, accessing and sharing information. For the first time, the Internet became accessible to a non-technical audience. As the Web’s popularity rose, a new industry emerged to create software and content for the Web. This made it more attractive to users 5 1 2 3 4 5 6

pace: ritmo scale: portata share: condividere carry out: svolgere user: fruitore endless: infinito (agg.)

THE WORLD WIDE WEB IS A WAY OF ACCESSING INFORMATION OVER THE INTERNET.

THE INTERNET IS AN INTERCONNECTION OF COMPUTER NETWORKS.

access. In 1994, there were only 500 websites worldwide. There are over one billion today and the number continues to rise every second. The Web contains an endless 6 variety and quantity of information. Amongst other things, a navigator can buy or sell things, listen to music, watch a film, take a language course, consult an encyclopaedia or a dictionary, read the newspapers, enter a virtual chat room, write a blog or create a website.

INTERNET USERS BY DEVELOPMENT LEVEL 2003-2013

INTERNET PENETRATION 2013

NORTH AMERICA 78%

DEVELOPED 77%

EUROPE 75% OCEANIA/AUSTRALIA 68% LATIN AMERICA 43% WORLD 39%

MIDDLE EAST 40% ASIA 27%

DEVELOPING 31%

AFRICA 6%

PER 100 INHABITANTS

2003

2013

Source: ITU World Telecommunication

In 2013, 2.7 billion people were Internet users. That corresponds to 39% of the world’s population. Only ........................% (1) of the population of developing countries is online, compared to ........................% (2) of developed countries. North America has the highest Internet penetration rate in the world: ........................% (3). In Africa, only ........................% (4) of people use the Internet. 14

Business in the 21st century

The digital divide

ACTIVITIES

The term ‘digital divide ’ describes the gap between those who have access to and the ability to use the Internet and digital technologies (tablets, smart phones, etc.) and those who do not.  1

The divide can be due to: • differences between developed, developing and emerging nations in terms of the availability of the Internet • socio-economic differences between people of different races, income and education that affects 2 their ability to access the Internet • differences between rural and urban Internet access.

WARM UP

1a

b

Work in small groups. Discuss the following. The Internet is often referred to as an irreversible revolution. Do you agree? Why? Compare your ideas with the rest of the class.

COMPREHENSION

2

Read about the World Wide Web on page 14 and complete the factfile.

The graphs on page 14 illustrate the digital divide between different areas of the world.

THE WORLD WIDE WEB

You can see that whereas most people in developed countries are online, a far smaller percentage of people in developing countries has access to the Web. In Africa, for example, over half of SubSaharan African countries have an Internet penetration of less than 10% and have seen little growth 3 in recent years. Many experts predict that the divide will almost certainly increase. They argue that multinational organisations have little incentive to invest in areas where people have no money to spend. As a result these areas will be unable to update their systems of production, will become even less important in the world economic system and more isolated in 1 divide: divario terms of access to digital 2 affect: influire (su) information.

Nationality of inventor: .................... (3)

Invented in .................... (1) by .................... (2) Number of websites: • 1994 .................... (4)

• Today .................... (5)

Uses: ........................................................... (6)

3

Fill in the gaps in the paragraph at the bottom of page 14. Use data from the graphs.

4

Read this page and answer the questions. 1 What does the term ‘digital divide’ refer to? 2 What modern technologies do most digitalised people use? 3 What contexts influence digitalisation? 4 Which area of the world has the lowest number of Internet users? 5 Why does this area risk becoming even more isolated in the future?

5

Word formation. Find nouns on these pages that correspond to these verbs. 1 to create 4 to use 2 to develop 5 to penetrate 3 to inform 6 to grow

3 growth: crescita

PRODUCTION

6

Class discussion. What would your life be like without the Internet and other modern technologies? What would you be unable to do? Would any aspects of your life be better? 15

1

GLOBALISATION

MEDIA FILE

The INTERNET has redesigned the WORLD The Oxford Internet Institute has recently created a new map of the world based on the total number of Internet users in a country as well as the percentage of the population that has Internet access. It looks nothing like the world we are used to seeing! Using data from the World Bank, the researchers, Mark Graham and Stefano De Sabbata, have calculated the size of each country according to its population of Internet users. Each small hexagon shape 1 represents about a third of a million Internet users. Countries with fewer users than that number have been removed from the map. Several areas of Africa have disappeared, for example, particularly the SubSaharan countries. The colours on the map represent the percentage of Internet penetration in each country. Darker colours indicate higher levels of Internet usage in the population. The distortion of the map tells us a lot about human activity on the Internet. In the ‘Internet’ world, China

is the largest country and has a far greater land mass 2 than Russia. It has the highest number of Internet users in the world, more than half a billion. In terms of continents, 42% of the world’s Internet users live in Asia. The number of users in China, Japan and India alone is higher than the combined total of Europe and the USA. It is also interesting to note that, while the Internet population in Asia is high, the percentage of Internet penetration is still quite low. Less than 20% of Indian people have access to the Web, for example. Throughout Asia there is still potential for growth, whereas in other areas, such as Europe, many countries have already reached an 80% penetration of the Web. In a few years’ time, when the map is redrawn, Asia will 1 hexagon shape: dominate the world. forma esagonale (Source: La Stampa / Oxford Internet Institute)

2 land mass: superficie terrestre

ACTIVITIES WARM UP

1

Look at the map of the world. Are the countries easily recognisable? Which countries differ the most to their traditional representation in an atlas?

COMPREHENSION

16

2

Listen to and read the article. Find the following: 1 the organisation that has drawn the map 5 the number of Internet users that each hexagon shape represents 2 what the map is based on 6 the reason why some countries have been 3 the source for the data removed from the map 4 the researchers who drew the map 7 what the colours on the map represent.

3

Look at the map and find out how Italy is represented. What does this indicate in relation to its population of Internet users and its potential for growth?

4

Correct these statements. The map shows the percentage of the world population using mobile broadband. All countries of Africa are represented on the map. Russia is the largest country on the map. The largest number of Internet users live in the Americas. Internet penetration in Asian countries is very high. European countries still have a large potential for growth in relation to Internet penetration.

1 2 3 4 5 6

PRODUCTION

5

Imagine that you see a picture of the Internet map of the world and want to know: • what it represents • why some countries do not appear on the map • what the shapes and colours indicate • why some countries have increased their size. Write a list of questions you would ask the researchers. Then find the answers on these pages and write a complete interview. 17

1

GLOBALISATION

Global trade Companion Book, p. 26

Three key institutions have helped increase the pace and scope of recent globalisation: the International Monetary Fund (IMF), the World Bank and the World Trade Organization (WTO). They all originated from agreements made between countries at the end of World War II in an attempt to create global financial stability. Representatives from the USA, the UK and 42 other allied countries met at the Bretton Woods Conference in New Hampshire, USA, in 1944. At the conference they created the IMF to help stabilise currency markets and established an organisation called the International Bank for Reconstruction and Development (IBRD), which is now part of the World Bank. They also proposed the creation of an international trade organisation to establish r ules and regulat ions for international trade.

Mark Carney, governor of the Bank of England, left, and Christine Lagarde, Managing Director of the IMF, World Economic Forum, 2014.

The World Bank

The International Monetary Fund (IMF)

 Based in: Washington, DC

 Based in: Washington, DC

 Membership: 189 member countries

 Membership: 189 member countries

The World Bank is not privately owned. It functions as a cooperative between its 189 member countries or shareholders.

The IMF is an organisation which aims to maintain financial stability in the world. Like the World Bank, it has 189 member countries. Each country pays a quota of money into the fund. As for the World Bank, the amount of money they pay depends on the size of their economy. In return members can borrow money from the IMF when they have serious financial difficulties, for example when they are unable to repay foreign debt. Recently, for example, the IMF gave a three-year 30 billion euro loan to Greece to help with its financial crisis. The IMF also monitors economic and financial systems around the world and provides technical assistance and training.

The shareholders deposit money into the bank. The amount they pay depends on the size of their economy. The money is used to help governments in developing countries reduce poverty by lending them money for a wide range of purposes – such as health, education, infrastruc ture, communication and government reform.

18

Business in the 21st century

ACTIVITIES WARM UP

1

Read the introductory paragraph on page 18 and make notes. Institutions that have facilitated global trade: ................... (1) ................... (2) ................... (3)

South Korea activists hold posters during a protest against the World Trade Organization meeting, Indonesia.

The World Bank, the IMF and the WTO have often been criticised by non-governmental organisations. The criticism is usually directed at the richest and most powerful member countries. Critics argue that their interests dominate the work of the organisations, at the expense of the less powerful, developing countries.

The World Trade Organization (WTO)

(4)

Why: .................................................................

(5)

Who met at Bretton Woods Conference in 1944: ................................................................

(6)

Decisions/Proposals made there: ................................................................................. ............................................................................ (7)

COMPREHENSION

2

Read about the three institutions presented on these pages and answer the questions. 1 What are the aims of each institution? 2 How many member countries does each organisation have? 3 Where do the World Bank and the IMF get their money from? What do they use it for? 4 What organisation did the WTO replace? 5 What criticisms have been made against the three institutions? By whom?

3

Find the English equivalents for these Italian terms: 1 accordi con l’estero 5 debito 2 stabilità finanziaria 6 prestito 3 mercati monetari 7 addestramento 4 regolamenti 8 attuazione.

 Based in: Geneva, Switzerland  Membership: 164 member countries The World Trade Organization was established in 1995, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The WTO deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and easily as possible. In particular it provides a forum for WTO trade negotiations and agreements, controls and monitors their implementation around the world, deals with trade disputes and provides technical assistance and training for developing countries.

When they originated: ...................................

PRODUCTION

4

Use your answers to ex. 1 and 2 to write a paragraph about the role of the World Bank, the IMF and the WTO in global trade.

5

Class discussion. a Find out more about the institutions on these pages on the Internet. Make notes about their positive and negative aspects and consider your personal opinion about them. b Discuss your ideas with the class. What is your opinion about these institutions? What do you think are their positive and negative features? 19

1

GLOBALISATION

Global companies Since the end of the Second World War there has been a sharp 1 rise in the number and growth of multinational companies. Multinationals are large corporations which operate in many countries. They have played an important role in the development and spread of globalisation. Multinationals usually have their headquarters  2 in a single country but assembly and production facilities in other countries. The parent company 3 of a multinational may operate as a holding company, which has subsidiaries in other countries. A holding company is a company which holds a controlling interest by having 51% or more of voting shares 4. Examples of holding companies include the Coca Cola Company, Barilla and Danone. A subsidiary is a small company controlled by a big company that owns it entirely or has more than 50% of its voting share. These are the reasons why companies become multinationals: • they have access to raw materials and cheap labour • they can avoid trade barriers 5, foreign exchange 6 fluctuations and transport costs • they can increase their knowledge of foreign markets • they may receive governments subsidies and can reduce the amount of tax that they have to pay.

1 2 3

4

5

6

TOP TEN GLOBAL COMPANIES

1 2 3 4 5 6 7 8 9 10

APPLE (USA): Technology PETROCHINA (China): Oil & Gas CHINA LIFE INSURANCE (China): Financials BANK OF CHINA (China): Financials ACTAVIS (USA): Health Care ICBC (China): Financials CHINA MOBILE (China): Telecommunications BERKSHIRE HATHAWAY (USA): Financials AGRICULTURAL BANK OF CHINA (China): Financials PING AN INSURANCE (China): Financials

20

10

9

8

7

1 sharp: forte 2 headquarter: sede centrale 3 parent company: società madre 4 voting share: azione con diritto di voto 5 trade barriers: barriere doganali 6 foreign exchange: valuta estera

Business in the 21st century Manufacturing usually takes place within developing countries. The presence of a multinational can have advantages and disadvantages for the host 1 country.

ACTIVITIES WARM UP

1

Advantages • Multinationals invest money in a host country. • They provide employment and training opportunities.

COMPREHENSION

2

Read these pages and answer the questions. 1 What are multinationals? 2 Why are they considered to be global companies? 3 How many countries is the parent company of a multinational usually based in? 4 What percentage of the subsidiary voting shares is controlled by the holding company? 5 Where do multinationals usually manufacture products? What advantages does that have for them? 6 What benefits do multinationals bring to the host country?

3

Correct these statements. 1 The number of multinational companies has been decreasing over the past 70 years. 2 Multinationals haven’t had any influence on the spread of globalisation. 3 The holding company is usually a small company. 4 The top ten multinationals are all European companies. 5 Multinationals only invest money in the country where the headquarters are based.

• They bring their experience and working methods to the country. • Profits can be a source of taxation revenue 2 for the host country.

Disadvantages • Jobs created by multinationals are often unskilled 3 and low paid and the working conditions can be poor. • Multinationals can ruin local development and destroy small businesses. • They can cause environmental problems in the host country. • They can exert 4 a strong influence on governments. • The profits of a multinational benefit the company shareholders rather than the host countries. • Some multinationals have been accused of selling sub-standard products to Third World countries.

1 host: ospitante 2 taxation revenue: entrata fiscale

3 unskilled: non specializzato 4 exert: esercitare

Read the Top Ten Global Companies on page 20. Find out where most of the companies are from and what sector of industry they belong to.

PRODUCTION

4

Class work. Work in groups. 1 Make a list of five multinationals that operate in Italy. 2 Discuss your list with the class. 3 Discuss the benefits and disadvantages for a country such as Italy in allowing overseas multinationals to set up in business. 4 Present your results to the class.

5

Write a report summarising the ideas discussed in ex. 4.

21

1

GLOBALISATION

Danone

CASE STUDY 1-03

ALTERNANZA SCUOLA-LAVORO

Groupe Danone is a French multinational corporation and it is a world leader in the food industry. It operates in over 140 different countries and it has an annual turnover 1 of €22 billion, 60% of which comes from outside of Europe. In 2015, the USA was the group’s leading 2 market. Recently Danone has chosen to focus its business development on six priority countries: Mexico, Indonesia, China, Russia, the United States and Brazil. It plans to target 3 India and Africa in the next decade. Russia

The USA

Workforce: 15,000 Production plants: 22

Workforce: 2,000 Production plants: 9

China Workforce: 9,000 Production plants: 18

Mexico

Indonesia

Workforce: 14,000 Production plants: 33

Workforce: 14,000 Production plants: 19

Brazil Workforce: 4,000 Production plants: 3

History and development The original company was founded in 1919 by Isaac Carasso, in Barcelona, Spain. Carasso had a small factory that produced yogurt. He named the yogurt Danone, after his son, Daniel Carasso, whose nickname in Catalan was ‘Danon’. Ten years later, Daniel himself introduced the brand 4 to France and the first French factory was built. Later, during World War II, Daniel emigrated to the USA where he founded Dannon in 1942. All three companies – Danone Spain, Danone France and Dannon (USA) – grew rapidly during the 1950s, and in 1967 Danone France merged 5 with a company called Fromageries Gervais to become France’s leading dairy food 6 company, Gervais Danone.

22

COMPANY PROFILE Type

multinational corporation

Sector of industry

food processing

Founded

Barcelona, Spain (1919)

Headquarters

Paris, France

Products

dairy products, water, baby food, medical nutrition

Growth

has grown through a series of mergers, acquisitions and joint venture operations, expanding initially from Europe to the USA and later, in the 1970s, to Asia and Eastern Europe

Workforce

99,781

Business in the 21st century

ACTIVITIES In 1972, Gervais Danone merged with BSN, France’s leading beverage business and the company accelerated its expansion in the food business, acquiring many European food companies and expanding into Asia and Eastern Europe.

1 turnover: fatturato 2 leading: preminente 3 target: mirare 4 brand: marchio 5 merge: fondersi 6 dairy food: latticini

In recent years, Danone has adopted a strategy of growth through joint ventures, particularly in fastgrowing emerging markets. It signed joint ventures with companies such as Al Safi in Saudi Arabia (2001), Yakult in India (2005) and Vietnam (2006), Mengniu in China (2006) and Alquería in Colombia (2007). By 2012 over 50% of Danone’s sales were generated in emerging countries. They continue to remain target areas for the company, which invested a further €486 million in the Chinese dairy company Mengniu in 2014, increasing its share of the business.

WARM UP

1

COMPREHENSION

2

Read the Case Study and find the following information about Groupe Danone: 1 the number of countries Danone operates in 2 the annual turnover and the part of the world where it is mostly generated 3 two places Danone plans to target in the near future 4 the number of production facilities in the USA 5 the country where the head office is based.

3

Read about the history of Danone and complete the timeline.

Social and environmental enterprises In 2006, Danone entered into a partnership with Grameen Bank, the community development bank which specialises in offering small loans, known as micro-credit, to poor people. They founded Grameen Danone, a social business designed to produce nutrient-fortified yogurt at prices that poor rural populations can afford. In 2009, Danone started the Danone Ecosystem Fund, with an initial contribution of €100 million. Today 43 projects are active in about 20 countries. Focus areas include dairy farming, local distribution systems and packaging recycling networks.

Activia, Actimel, Danio

Water

Evian, Volvic, Badoit

Baby foods

Aptamil, Cow&Gate, Milupa

Medical nutrition

Ketocal, Neocate, Alicalm

Date

Event

1919

...........................................................

1942

...........................................................

1950s

...........................................................

1967

...........................................................

1972

...........................................................

2001

...........................................................

2005

...........................................................

2006

...........................................................

2007

...........................................................

PRODUCTION

4

Choose one of the tasks below. a Barilla is an example of an important Italian multinational company. Look at their website and write a factfile. Use the Danone factfile as an example. b Select one of the multinationals that you listed in ex. 4 on page 21. Look at their website and write a factfile. Use the Danone factfile as an example.

5

Present Barilla/your multinational company to the class. Use the information from the factfile in ex. 4.

FAMOUS DANONE BRANDS Dairy products

Can you name any Danone products? Do you ever buy any of these products?

23

1 VIDEO

GLOBALISATION

Multinationals relocation Offshoring Offshoring is an umbrella term. It means getting work done in a different country. Multinationals often transfer aspects of their production or services to other countries, so that they can take advantage of lower costs or be closer to their markets. India, Indonesia, China, Bulgaria and the Philippines are among the most popular offshore destinations. There are two types of offshoring: production offshoring and service offshoring. Production offshoring involves the relocation 1 of manufacturing processes to a lowercost destination. Examples of this include the manufacture of electronic components in Taiwan and the production of toys, clothes and consumer goods in China. Service offshoring involves the relocation of support processes 2, such as accounting 3, Information Technology and customer service processes, such as call centres. These services are often outsourced to external companies.

1 relocation: trasferimento 2 support process: attività di supporto 3 accounting: ufficio contabilità 4 set up: aprire 5 graduate: laureato 6 highly skilled: altamente specializzato

Over the last 20 years, a lot of call centres have been set up 4 in India. This is because India has an enormous English-speaking population and an education system that produces more than a million graduates   5 every year. In addition, compared to LOWER COSTS Europe or the USA, Indian ACCESS TO workers are cheap. EXPERTISE SAVES TIMES Recently, however, there have been signs that British companies are starting to transfer their services to Eastern CLOSER COMPANIES CAN Europe, where call TO MARKETS FOCUS ON CORE PROCESSES centres attract a young workforce of highly REASONS FOR OFFSHORING skilled 6 people.

Outsourcing Outsourcing is a more specific term. It means contracting work out to an external organisation. This may or may not be in a different country. An outsourcing company is a company which tries to attract outsourced work from other companies. The company may or may not be in an offshore location.

ACTIVITIES

MEDIA FILE

Forget India... call centres are moving to Bulgaria

WARM UP

1

British firms outsource closer to home

Discuss the following. 1 What is the difference between offshoring and outsourcing? 2 What are they called in Italy?

COMPREHENSION

The next time you pick up a phone to pay a bill 1, book a holiday or reserve some tickets, it’s possible that you won’t be speaking to an office in Cardiff or London or even Bangalore – but to someone at one of the increasing number of call centres in Bulgaria. British companies, such as Thomas Cook, Sky and e-commerce company Seatwave have all transferred aspects of their customer service to Bulgaria. Some people think that these moves 2 suggest that India may be losing its crown as the call centre capital of the world. British businessman, Jonathan Gladwish is the owner of 60K, an outsourcing company that he set up in Sofia, the capital of Bulgaria. The staff in his call centre speak to more than 3,000 British customers a day. ‘When we first started in 2008, Bulgaria was virgin territory with an ageing  3 telecom infrastructure and practically no outsourcing,’ said Mr Gladwish, who employs 650 staff speaking 27 different languages. ‘That’s all changed. I’ve come to realise how well educated the young people are here. 93% of my staff are graduates or postgraduates who want to work for me for a few years before moving on.’ The businessman, whose customers include Sky Broadband, saves 40-50% by basing his company in Eastern Europe. (Source: The Independent) 1 bill: bolletta, fattura 2 move: trasferimento

3 ageing: che invecchia

2

Read page 24 and answer the questions. 1 Why do multinationals relocate aspects of their business to other countries? 2 What types of offshoring are there? 3 What does production offshoring involve? 4 What types of services are often relocated? 5 Why has India become the top offshoring destination? 6 Which area of Europe is becoming popular as an offshore destination?

3

Listen and read the article on this page and find out: 1 three British companies that have offshored their customer service to Bulgaria 2 the name of an outsourcing company in Bulgaria and its owner 3 the number of staff who work for 60K 4 their general level of education 5 the percentage that the businessman saves by basing his company in Eastern Europe.

4

Listen and complete the factfile about Lidiya Hadzhieva. Name of worker: Lidiya Hadzhieva Age: .........................................................

(1)

Nationality: ..............................................

(2)

Job: .........................................................

(3)

Education: degree in ................................

(4)

From: .......................................................

(5)

Languages spoken: .................................

(6)

PRODUCTION

5

You work for a British telephone company that is considering offshoring its call centre. You have been asked to research which countries are popular offshore destinations and the advantages your company could have from offshoring the service. Write a short report (about 15 lines) to illustrate the result of your research. Use information from this page. 25

2

TECHNOLOGY Technology and the workplace Thirty years ago, the world of work was very different to today. There were few technological devices. Computers were not commonly used in the office, so there was a lot of paperwork and everything had to be organised and filed 1 manually. Documents had to be sent by post, which was both slow and expensive. And, of course, nobody had a mobile phone so they were effectively out of contact with their colleagues and clients every time they left their work desk. Now we have mobiles, tablets, social networks and web-conferencing. Communication is instantaneous, simple and cheap. We can transmit documents, videos and images anywhere in the world, instantly and at no cost. Computers allow businesses to continue 24 hours a day and remote access means thousands of people can work from a home office instead of commuting.

Efficiency

Communication

Technology means the office works more efficiently. Computers, digital filing systems 2, electronic mail and the Internet all help save time and money.

Mobility Technology eliminates space and time. Video conferencing allows people to work together without the need to be in the same room. ‘Cloud computing’ enables colleagues to store and share data collectively from anywhere in the world.

1 filed: schedato 2 filing system: sistema di archiviazione

26

Technology improves business communication. Information can be passed through multiple channels almost instantly.

TECHNOLOGY

Human capital Technology improves the efficiency of screening, recruiting and hiring potential candidates. Businesses can use the Internet to advertise vacancies, target potential candidates and check on the suitability of job applicants.

Technology will continue to change rapidly over the next few years. Hologram technology is already being used in the entertainment business and this will probably spread into office life. If that happens we will be able to send replicas of ourselves into virtual business meetings. In the future you may communicate daily with virtual colleagues that you never actually meet. It’s also probable that we will soon have wearable devices. Smart glasses will enable us to consume information and work on the move. As a result we will be able to do more in less time. Workforces will become more dispersed and workers will probably work on several different projects and have diverse careers in locations around the world.

ACTIVITIES ACTIVITIES

MEDIA FILE

Smart working Will the office soon become out-dated? Clocking in 1 and out every time you enter or leave the office could soon become a thing of the past. ‘Smart working’ has the potential to change the way we work completely. The idea of ‘smart working’ is that employees should be able to carry out their work at any time and in any location, from the bar to the doctor’s waiting room. Physical office space and face-to-face communication would become less important, as would the need for fixed office work hours. Mariano Corso, manager of the ‘Osservatorio Smart Working’ at Milan Polytechnic explains: ‘Today a lot of people work in chaotic open spaces, where they can’t even make a telephone call without interruption. This has a negative effect on the well-being of the employee, who is usually unable to choose to work from home.’ There would also be advantages for the companies themselves. A study carried out by Milan Polytechnic claims that the adoption of this model would enable Italian companies to increase their profits by €27 million in a year. And that’s not all. There would also be an enormous saving in terms of costs. Companies would need less office space and there would be less need for employees to travel to different locations – most meetings could be carried out via video conferences. Research carried out by Milan Polytechnic, however, has demonstrated that at present Italian employers are slow to adopt the new way of working. It’s difficult to convince Italian managers that people who work outside the office are as productive as those who pass their day in front of a desk. (Source: La Stampa )

1 clock in: timbrare il cartellino

WARM UP

1

How has technology changed the workplace over the last 30 years? Brainstorm ideas and then read the text on page 26 and check your list.

COMPREHENSION

2

Listen to and read the article on this page and answer the questions. 1 How was paperwork dealt with in the past? 2 Why was sending documents by post problematic? 3 Why was it difficult for people to leave the office 30 years ago? 4 What four aspects of the workplace have benefited in particular from the new technologies? 5 How may hologram technology effect the workplace in the future? 6 How may careers change in the future?

3

Which words do these definitions refer to? 1 Access a technological device from a distance. 2 To travel regularly between your place of work and your home. 3 To test or examine somebody to check if he or she is suitable for a job. 4 A special photographic representation that gives a 3-D image when lit in a suitable way.

4

Complete these sentences. 1 ‘Smart working’ means that employees ................................................................... . 2 Mariano Corso is ....................................... . 3 According to a study carried out at Milan Polytechnic ................................................ . 4 Italian employers are slow to adopt the new way of working because ............................ .

PRODUCTION

5

Prepare an oral presentation about one of the following technological devices: • computers • mobile phones • tablets Give information about: • the history and development • the common applications of the device • the advantages for business. 27

2

TECHNOLOGY

E-commerce E-commerce (also referred to as EC or Electronic Commerce) is the name used for the process of buying or selling products or services via the Internet. E-commerce is divided into four main areas: • direct sales from the producer to the final consumer, called ‘business to consumer’, or B2C in Net language. Examples include the sale of food, flowers, books, flight tickets, banking services, etc. • sales between companies, called ‘business to business’ or B2B. For example the sales of raw materials 1 and equipment • sales between consumers, usually through virtual auction sites 2 like eBay. This is called ‘consumer to consumer’ or C2C in Net language

1 raw material: materia prima 2 auction site: sito di aste

• sales of goods and services through mobile devices such as smartphones and tablets, called mobile commerce or m-commerce in Net language. Asia/Pacific and North America have a leading role in e-commerce, followed by Western Europe. E-commerce sales in Eastern Europe, South America, the Middle East and Africa are still very low.

Why is e-commerce successful? It’s quick and easy.

Online shops are always open.

The range of products is enormous.

It’s up to-to-date and fashionable.

Products can be bought and sold from all over the world.

SHARE OF B2C E-COMMERCE SALES BY REGION (2015)

NORTH AMERICA 28.3% EUROPE 22.2%

LATIN AMERICA 1.5% THE MIDDLE EAST AND AFRICA 1.1% OTHERS 0.4%

ASIA/PACIFIC 46.5%

An employee collects merchandise ordered by customers for shipment from the Amazon.com distribution center in Phoenix, Arizona, USA.

28

ACTIVITIES

MEDIA FILE

E-commerce in Italy

WARM UP

1

Despite Italy’s economic problems, e-commerce in the country has started to gain momentum  1. Business-to-consumer sales via digital channels rose 18% in 2013, bringing online spending to €11.3 billion according to a report by Milan Polytechnic in association with Netcomm, an e-commerce consortium. In the same year the number of digital buyers rose by 2 million to around 14 million. In 2016 these figures revealed €19,3 billion in online spending by 18 million online customers. Travel remained the largest single category of Italian e-commerce purchases, at 43% of the total. That share is shrinking 2, though, as more shoppers buy items such as clothing and electronics online. In a country where visits to a fresh-food market are daily habit for many, digital grocery sales are still very small, just 1% of B2C e-commerce spending in 2013.

COMPREHENSION

2

12% 11% 10%

3

Listen to and read the article on this page and tick (✓) the correct alternative. 1 E-commerce in Italy is a very unpopular. c very popular. b becoming more popular. 2 The two most popular categories of online shopping in Italy are a insurance and electronics. b groceries and books. c travel and clothes. 3 M-commerce in Italy is a increasing. c stable. b decreasing.

4

Read the article again. What do these figures refer to? 1 €11.3 billion 3 11% 2 18 million 4 €510 million

5

Listen to two people talking about their online shopping and complete the table.

TRAVEL

CLOTHING TECH AND CONSUMER ELECTRONICS

INSURANCE

3% BOOKS, MUSIC AND MOVIES/TV 1% GROCERY 20% OTHER* *includes online auctions, ticket events, etc.

(Source: Osservatorio ICT & School of Management del Politecnico di Milano and Netcomm – Italy)

The most important trend is the growing role of mobile devices. According to the report, Italian m-commerce sales saw a remarkable 255% leap in 2013, to €510 million. Smartphones were responsible for more than one-fifth of all e-commerce sales growth that year, though transactions on tablets were also on the rise. Italian e-commerce still remains a small portion of total retail sales, at around 5% in 2016 – low compared to most other Western European nations, but statistics indicate that the percentage will continue to grow. (Source: emarketer)

1 momentum: slancio, impulso 2 shrinking: in calo

Read page 28 and find: 1 definitions of: • EC • B2C • B2B • C2C • m-commerce 2 five reasons for the success of e-commerce 3 the two areas of the world which account for more than 60% of e-commerce transactions 4 the areas of the world where e-commerce sales are still very low.

B2C ECOMMERCE SALES SHARE IN ITALY, BY CATEGORY, 2013 % OF TOTAL 43%

Work in pairs. Discuss the questions. 1 Do you or your family buy anything online? What? 2 How do you pay? 3 Why do you buy these things online?

Mr Davies

Ms Burton

Items bought Why online? Method of payment

PRODUCTION

6

Go online and find information about Groupon.com, a popular e-commerce retailer. Write a short report about it. Include information about: • the company (headquarters, launch date, etc.) • the products it sells • its revenue for last year. 29

2

TECHNOLOGY

IT – Information Technology IT (Information Technology) refers to the use of computers and telecommunications equipment to store, retrieve, transmit and manipulate data. We often associate IT in business with the widespread use of the Internet and the WWW. Information technologies, however, have also had a major impact on other sectors of business, including manufacturing and distribution.

IT in manufacturing Today computers and computer software help companies design and manufacture products quickly and accurately reducing problems related to human error. As a result the quality of products has improved.

CAD (computer-aided design) Instead of making sketches and expensive models of a new product, designers now use CAD to create three-dimensional models on a computer screen, view the models from all angles and make instant changes to the design.

CAM (computer-aided manufacturing) CAM enables a computer to control production equipment. The computer-controlled machines can cut out individual components of a product with great accuracy.

3-D printing 3-D printing is a recent technology that has taken both CAD and CAM to a higher level. A 3-D printer is a type of industrial robot that can make a three-dimensional solid object of any shape from a digital model. The technology can be used to design prototypes and manufacture products. It has applications in many fields of industry including architecture, industrial design, construction, medical, aerospace, military engineering and fashion.

30

Business in the 21st century

IT in distribution The impact of IT in the distribution of goods has also been dramatic. The most recent development has been the creation of RFID (Radio Frequency Identification) tags. Tags are portable devices incorporating microchips which make it possible for manufacturers to identify and track goods as they move from one place to another. This means that companies can control the product at each stage in the chain of distribution. RFID uses a numbering scheme called EPC (Electronic Product Code) which can provide an ID for any physical object in the world. Each product is given a unique EPC number. The number is transmitted by a radio frequency ID tag (RFID) on the product. The tags are very small, about the size of a grain of sand, and they can be built directly into a product or added to the product label during the manufacturing process.

ACTIVITIES WARM UP

1

COMPREHENSION

2

Read page 30 and answer the questions. 1 What does IT refer to? 2 What do we normally associate IT in business with? 3 What other sectors of business has IT affected?

3

Correct the following statements. 1 Information Technology has increased the chance of human error. 2 CAM and CAD affect distribution. 3 CAD enables a computer to control production equipment. 4 CAM is used to design products. 5 3-D printing has been used for a long time in manufacturing processes. 6 A 3-D printer is a normal laser printer.

4

Read this page and fill in the gaps.

Reader devices can then be used to pick up the signal transmitted by the RFID tag. This allows the identification and tracking of goods as they move from one place to another, enabling companies to identify the location of their products at all times. In particular RFID helps: • provide identification and security for goods from the point of manufacture to the point of sales

RFID are radio frequency identification ....................... (1). They can be built directly into the ....................... (2) or can be added to the product ....................... (3). Tags incorporate ....................... (4) which allow companies to control the movement of the ....................... (5) at each stage of the distribution.

• keep a second-by-second check on the remaining stock of goods in each store • order replacement stock automatically • have stock delivered just-in-time (just before it runs out).

Go through these pages very quickly and find what these acronyms mean. 1 IT 2 CAM 3 CAD 4 3-D 5 RFID

5

Find the English equivalents for these verbs: 1 ricuperare 4 seguire le tracce 2 osservare 5 captare 3 tagliare/sezionare 6 esaurirsi.

PRODUCTION

6

Write a short paragraph listing the advantages of RFID for manufacturers. Add your personal opinion of RFID tags from the point of view of a consumer. Start like this: The use of RFID tags has several advantages for manufacturers. It enables them to… 31

2

TECHNOLOGY

MEDIA FILE

Dutch architects build Amsterdam canal house with 3-D printer Hundreds of years after rich merchants began building the tall, narrow brick 1 houses that define Amsterdam’s skyline, Dutch architects are updating the process for the 21st century. They are using a giant 3-D printer to make huge plastic pieces of a canal house 2, which will then be put together like Lego. Hedwig Heinsman, an architect at the company DUS, says that the aim of the project is not to print a completely functioning house, but to discover and share the potential uses of 3-D printing in construction. They intend to try out designs and test building techniques to see what works. ‘There’s only one way to find out,’ says Heinsman, ‘By doing it.’ She envisions a future in which personalised architecture may be custom-crafted 3 on the spot, or selected from an online store of designs, downloaded and adapted.

At the centre of the project is a six metre tall 3-D printer nicknamed the KamerMaker, or ‘roombuilder’. The KamerMaker takes computer-drawn plans and uses them to create the individual parts of the building. Each part is printed layer by layer 4 until a solid object is formed. At the moment the KamerMaker is creating the exterior walls. The first block, which will form one corner of the house, weighed about 180 kg. It will be filled with a foam material  5 and will 1 brick: in mattoni become as hard as 2 canal house: casa  6 concrete . Once the walls su un canale have been constructed, 3 custom-crafted: DUS plans to use the costruito su misura KamerMaker to make the 4 layer by layer: strato su strato house ceilings, the room 5 foam material: components and, finally, schiuma the furniture!

6 concrete: cemento

ACTIVITIES WARM UP

1

Read the title of the article and look at the photo. Find out: 1 where the house is 2 who is building it 3 what is special about it

COMPREHENSION

2

Listen to and read the article and answer the questions. 5 How tall is the 3-D printer that is being used to create the house? What is it called? 6 What sort of people are collaborating on the project? 7 How long will it take to complete the house?

1 What are the old houses in Amsterdam made of? 2 What are they like? 3 What will the 3-D house be made of? 4 What is the aim of this project?

3

32

List words from the article for each of these categories. 1 jobs: ............................................................................................................................................ 2 materials: ..................................................................................................................................... 3 parts of a house: .........................................................................................................................

A computer representation of the 3-D printed canal house in Amsterdam.

The company has formed a collective that includes designers and computer scientists who are sharing their expertise to help build the house. It is now possible to visit the construction site and by buying a ticket the visitors sponsor the project.

4

At the moment it may all seem like science fiction, but 3-D printing has the potential to revolutionise the construction industry and to change the look of our towns and cities. (Source: The Associated Press / BBC World Service)

Fill in the gaps in the different steps needed to create the house. Use these words. ceilings • solid • computer • printer • components • printed • building • furniture • foam • concrete Architects draw the plans of the house on a ...................... (1) and take them to the 3D ...................... (2) to create the individual parts of the ...................... (3). Each part is ...................... (4) layer by layer till it forms a ...................... (5) object, e.g. a wall. The blocks for the walls are filled with a ...................... (6) material that becomes as hard as ...................... (7). The 3-D printer is also used to create other parts of the house, for example the ...................... (8), the room ...................... (9) and the ...................... (10).

PRODUCTION

5

Work in pairs. Discuss the following. What effect do you think 3-D printing could have on the construction industry? Why? Think about construction time, price, workforce, durability, variety.

6

Write a short description of the 3-D house project in Amsterdam. Include information about: • the location • the effect it may have on the construction industry • the style of the house • your opinion of the project. • the importance of the project 33

2

TECHNOLOGY

Technopoles What is a technopolis? The term technopolis is composed of two parts: ‘techno’, from technology, and ‘polis’ which is the Greek word for city. In theory then, a technopolis is a new form of city centered around the high-tech industry. In reality, technopoles are planned developments which attempt to establish a cluster 1 of innovative high-technology industries and related production companies. They are promoted by governments in association with universities and private companies. They are sometimes called Science and Technology Parks or Bioparks. Technopoles are usually located near to a university. Governments attract companies to the area by offering incentives, such as subsidies or lower tax rates, and facilities including accommodation, power supplies  2, telecommunication services, security, restaurants, parking and entertainment. The intention is to create environments that enhance the development, transfer and commercialisation of technology.

Technopoles around the world Silicon Valley in California (USA) was one of the world’s first technopoles. It was originally called the Stanford University Science Park and it dates back to the early 1950s. It is home to some of the world’s largest high-tech companies, including Apple, Google and Facebook, as well as thousands of small startup companies. A startup is a small company that is designed to expand very quickly. In the 1990s the most common type of startups were web-based. 1 cluster: gruppo, enclave 2 power supply: fornitura di energia

Yahoo headquarters, Silicon Valley.

34

Today there are over 400 technopoles around the world. Over 170 of them are found in the USA where they provide employment for about 380,000 people. Other famous hightech centres are Cambridge Science Park (UK), Sophia Antipolis (France) and Tsukuba Science City (Japan).

ACTIVITIES

MEDIA FILE

A tour of Silicon Valley’s most over-the-top headquarters It’s 7pm in a building in AT&T Park. In a big open space a group of 20-somethings are playing computer games in front of an enormous screen on the wall. Not far away, four people are dancing to music at full volume. Around the corner, more young people are sitting around tables, as chefs prepare a variety of free dishes for them. These are just scenes from an ordinary day at the headquarters of Dropbox, the company that makes it easy to collect and share files over the Internet. Just a few streets away from the Dropbox office, the same atmosphere fills the headquarters of Twitter, the social media giant. And, at Google HQ, there are volleyball courts, ping pong tables, organic gardens, seating areas with pianos and bikes for everyone to use. There are even washing machines so employees can bring their washing to work! Thanks to a shortage 1 of highly-trained talent, digital companies in Silicon Valley do everything that they can to attract and keep their superqualified employees. The best places to work in America have become amusement parks, with spaces to relax, dream, eat, drink and have fun. And that’s not all – with an entry salary of about $125,000, medical insurance, free access to workout gyms, shuttle buses with Wi-Fi on board for the commuters  2 to work, as well as an unlimited range of the latest high-tech gadgets, Silicon valley has become a paradise for the world’s young super brains 3! (Source: La Stampa)

1 shortage: carenza 2 commuter: pendolare 3 super brain: cervellone

WARM UP

1

Look at the title and photo on page 34. What do you think a technopolis is? a a high-tech university b a group of high-tech industries c a modern city

COMPREHENSION

2

Read page 34 and find: 1 the origin of the word technopolis 2 its definition

3

3 two synonyms 4 four examples.

Complete the factfile about Silicon Valley. Location: • country ...............

• state: ..............

(2)

Original name: .........................................

(3)

Established in: .........................................

(4)

Home to: .................................................

(5)

Companies with headquarters there: .................................................................

(6)

(1)

PRODUCTION

4

Class discussion. Listen to and read the article on this page. Discuss the peculiarities of working conditions for people who work in the Silicon Valley with regards to: • the place of work • entry salary • the equipment offered • bonuses. • amenities and entertainment

5

Write a report illustrating the reasons why young people are attracted by companies based in the Silicon Valley. Use information from ex. 4.

3

RESPONSIBLE BUSINESS A fragile world Global warming The temperature of the Earth’s atmosphere is gradually rising. This phenomenon is known as global warming. Scientists are now almost certain that global warming is caused by increasing concentrations of greenhouse gases in the atmosphere. Most of the increase is produced by human activities. The 2013 report of the International Panel on Climate Change (IPCC) states that ‘human influence has been detected in the warming of the atmosphere and the ocean, in changes in the global water cycle, in reductions in snow and ice, in global mean  1 sea level rise, and in changes in some climate extremes’. Most scientists agree that if global warming continues, it will eventually become impossible to support life on Earth. To save our future we need to recreate the ideal balance between climate, air, water and land.

The greenhouse effect

1 mean: medio 2 greenhouse effect: effetto serra

The Earth produces gases that protect our world. These are called greenhouse gases and they surround the planet kilometres above surface. As the Sun warms the land and sea, the Earth’s heat is reflected back towards space. The greenhouse gases absorb and trap this heat so the Earth doesn’t become cold. That’s where the term ‘greenhouse effect’ 2 comes from. The entire planet is surrounded by a ‘virtual’ greenhouse which keeps the atmosphere warm. Essentially then, greenhouse gases are good for the planet. At the moment, however, we are producing too many of these gases and the greenhouse effect is increasing. In 2014, there were over 398 parts per million of carbon dioxide in the atmosphere, which exceeds the natural range of the past 650,000 years. In November 2013 at the Warsaw Climate Change Conference all countries agreed that global greenhouse gas emissions need to reach zero emissions by the second half of this century.

CO2 EMISSIONS BY COUNTRY CHINA 28.6% USA 16% INDIA 5.8% RUSSIA 5.4% JAPAN 3.7% GERMANY 2.4% SOUTH KOREA 1.7% CANADA 1.6% SAUDI ARABIA 1.4% INDONESIA 1.4%

36

(Source: Netherlands Environment Assessment Agency)

Business in the 21st century

ACTIVITIES

Six factors which increase the greenhouse effect Electricity

03

Most household rubbish is buried in landfill dumps 3. Methane is released into the air as it rots 4 . Methane absorbs twenty times as much heat as carbon dioxide.

The sea

05

The sea absorbs vast quantities of carbon dioxide, which is good. To do this it needs to be salt water. The ice in the polar ice caps does not contain salt. If it melts 5 into the sea, the sea will become less effective at absorbing CO2.

1 fossil fuel: combustibile fossile 2 nitrogen oxide: biossido di azoto

1

01

Most of the electricity that we use is produced by burning fossil fuels 1 – coal, oil and gas – which give off carbon dioxide.

Rubbish

WARM UP

02

Cars

Make a list of activities that could damage the environment. Compare your list with the rest of the class.

COMPREHENSION

2

Read ‘Global warming’ on page 36 and write a list of the five main effects of human influence on the environment.

Farming

3

Cows and other farm animals produce methane. Methane is also produced when vegetation rots underwater. That’s what happens in rice fields all over the world. As the world’s population increases, more animals and rice will be needed, releasing more methane into the atmosphere.

Read ‘The greenhouse effect’ on page 36 and answer the questions. 1 What function do greenhouse gases have? 2 How do they achieve this function? 3 What would the Earth be like without greenhouse gases? 4 What did countries agree at the Warsaw Climate Change Conference in 2013? 5 What two countries produce the highest CO2 emissions?

4

Read the article on this page and correct the statements. 1 Most of the electricity produced in the world comes from renewable sources. 2 Carbon dioxide is released as household rubbish rots. 3 Growing wheat increases the greenhouse effect. 4 Ice in polar ice caps is made from salty water from the sea. 5 Trees release CO2 to the atmosphere.

Cars give off carbon dioxide and nitrogen oxide 2.

04

06

Destruction of rainforest

Destroying rainforests adds to the greenhouse effect because trees absorb CO2 from the atmosphere. In addition, when wood is burnt it gives off CO2.

3 landfill dump: discarica 4 rot: decomporsi 5 melt: sciogliersi

PRODUCTION

5

Class discussion. Discuss the following. • Are you concerned about the environment? • Has your country or region experienced any climate change due to global warming? What sort of changes? What future effects could this change have on your area?

6

Write a paragraph commenting on the table on page 36. Say which countries have the highest levels of CO2 emissions and explain why they are dangerous for the environment. Start like this: CO2 emissions are dangerous for the environment. The country with the highest level of CO2 emissions at present is… 37

3

RESPONSIBLE BUSINESS

Renewable energy Renewable energy comes from natural resources, such as sunlight, wind, tides 1 and geothermal heat. At present, only about 16% of global energy comes from renewables, though the percentage is rising every day. The incentive to use 100% renewable energy comes from two factors. The first is the fact that our reserves of fossil fuels, such as coal and gas, are running out 2. The second is the concern about the environmental effects of global warming.

1 tide: marea 2 run out: esaurirsi 3 electricity power grid: rete elettrica 4 gravitational pull: forza di attrazione gravitazionale

In 2009, 75 countries around the world joined the International Renewable Energy Agency (IRENA), an intergovernmental organisation that promotes the adoption of renewable energy. Today the organisation has 130 members and 35 other countries have applied to join.

Forms of renewable energy SOLAR ENERGY

WIND ENERGY

BIOENERGY

GEOTHERMAL ENERGY

Most forms of renewable energy

The Sun’s heat drives the winds,

Sunlight also causes plants

Not all renewable energy

come either directly or indirectly

whose energy is captured with

to grow. The organic matter

comes from the sun.

from sunlight. Solar energy can be

wind turbines. Wind turbines

that makes up those plants

used to generate electricity, heat

are now a common sight in

is called biomass. Biomass

and light homes and for a variety of

European countries and the

can be used to produce

commercial and industrial uses. At

USA. They have the advantage

electricity, transportation

present, solar power systems are

that they take up little space

fuels or chemicals, but

still

and

and the land below can be used

production rates are slow.

photovoltaic cells are not very

for other purposes. They can

Bioenergy production has

efficient at converting solar power

also be used in remote areas

potential but many people

to electricity. If these cells could be

that are not connected to the

doubt that it can be

made more efficient, experts

electricity

predict that 4% of the Earth’s desert

Obviously, however, when there

enough scale to substitute

areas could supply all of the world’s

is no wind, no electricity can be

fossil fuels.

energy requirements.

generated.

quite

expensive

Solar panels on residential roofs in the UK.

power

grid

3

.

produced

on

a

large

Geothermal energy exploits the Earth’s internal heat for a variety of uses including electric power production and

the

heating

and

cooling of buildings. In addition, the energy of the ocean’s tides comes from the gravitational pull 4 of both the Moon and the Sun upon the Earth.

Geothermal power station.

ACTIVITIES

MEDIA FILE A carpet on the seafloor will catch the energy created by waves A group of scientists at the University of California have proposed an innovative method of harnessing 1 ocean energy. They have designed a type of hydraulic ‘carpet’ that will be placed 30 cm above the sea floor. The carpet will be made of rubber and will be connected to a series of hydraulic pumps. It will be flexible and it will move when waves travel over it. Its movement will activate the hydraulic pumps and the pressure that is created will be converted into energy. In theory the carpet should be able to absorb about 90% of wave energy.  2

The carpet isn’t the first attempt to harness wave power, but the research team thinks that it has several advantages over competing technologies. Because of its position on the ocean floor, it should be more durable and need less maintenance than surface systems. Being underwater, it will have no visual impact and the physical impact on boats and sea life will be minimal. In addition, it should be able to produce a high amount of energy. The scientists estimate that just ten square metres of carpet should produce the same quantity of energy as a football pitch completely covered in solar panels. And that’s not all. Because the sea carpet won’t have to rely on the Sun or wind as its energy sources, it should be able to function 1 harness: for 24 hours a day, every day. (Source: World News)

imbrigliare 2 rubber: gomma

WARM UP

1

Which of these sources of energy are renewable? coal natural gas wind organic plants sunlight nuclear power petroleum ocean tides

COMPREHENSION

2

Read page 38 and correct the statements. 1 The reserves of fossil fuels are still very rich. 2 Sunlight is the only existing form of renewable energy. 3 Solar power systems are very cheap. 4 Wind turbines can operate without wind. 5 Biomass is produced from animals. 6 Ocean tides cannot be used to generate any form of energy.

3

Listen to and read the article on this page and answer the questions. 1 What kind of renewable energy is the article about? 2 What device has been designed to produce this energy? 3 How will it work? 4 What percentage of wave energy should it be able to absorb? 5 What advantages does this device have?

4

Write a definition of renewable energies and list the sources of energy mentioned on these pages.

PRODUCTION

5

Nuclear power is another form of energy production which has become important over recent years, although there is a great debate about its safety. Think about the topic and prepare a short oral report. Include information about: • the advantages and disadvantages • the situation in Europe and your country with regards to the production of nuclear energy • your personal opinion about nuclear power.

39

3

RESPONSIBLE BUSINESS

MEDIA FILE

The island of Eigg The greenest island in the world The tiny island of Eigg, off Scotland’s north-west coast, has a slow and languid pace of life. Wild birds fly over the fields, an occasional car moves along the few kilometres of road and a sporadic ferry service provides the only connection with the outside world. Even so, the island is proving that a relaxed approach is no barrier to making big changes. Eigg is on its way to becoming the first island that is entirely self-sufficient in renewable power. Solar panels, wind turbines and hydroelectric generators provide almost all of the residents’ energy needs 1. Working together, the 86 residents on the island have created a renewable energy scheme with a local electricity grid called Eigg Electric. Every house on the island is connected to the grid, which gets its energy from renewable sources. ‘It varies from year to year, depending on the weather conditions’ explains islander Maggie Fyffe ‘but the grid provides between 85 and 90 per cent of our energy’. In the past the islanders had to use diesel generators that were noisy, expensive and polluting 2. They only had electricity for certain hours of the day. Now life is easier, but, to ensure that there is enough energy for everybody, individuals cannot use more than five kilowatts at

LOCATION

the Scottish Hebrides, off Scotland’s north-west coast

SIZE

30.49 km2

POPULATION

86 residents

ACTIVITIES WARM UP

1

Look at the title and read the datafile. Then choose the correct alternative. 1 The island of Eigg lies off the north-east / north-west / south coast of Wales / Scotland / England. 2 It is a very big / large / small island with a large / small / medium-sized population. 3 It is considered to be the most polluted / dirtiest / greenest island in the world / Europe / Britain.

COMPREHENSION

2

40

Listen to and read the article and answer the questions. 6 What energy restrictions are there today? 1 What is the pace of life like on Eigg? 2 How is the island connected to the mainland? 7 Why is bad weather good for Eigg Electric? 3 What is the island almost self-sufficient in? 8 What do they use the excess energy for? 4 What is Eigg Electric? Who created it? 9 What is the residents’ committee working on? 5 How did the islanders get their energy in the 10 What is the main goal of Eigg’s residents? past?

a time – that’s equivalent to using a washing machine and boiling a pan of water simultaneously. The residents are used to rationing their power, however, and there haven’t been any problems so far. Bordered 3 by the Atlantic Ocean, Eigg gets a lot of extreme weather, which is good news for renewable energy. ‘It gives you a completely different attitude to rain’ says Eddie Scott, part of Eigg Electric’s maintenance 4 team. Rainfall helps power hydroelectric generators set up 5 along streams and rivers on the island. And, on days that are really wet or windy, Eigg Electric has a useful way of dealing with excess energy. ‘We have heaters in all the public spaces on the island – the two churches, the community centre, the shop and café – and we put free heating into these buildings to keep them dry and to keep the island’s costs low’ says Scott. Everyone who lives on Eigg for more than six months automatically becomes a member of the residents’ committee. The committee meets every month and discusses issues relating to the island. The idea of a renewable energy scheme was first proposed at their meetings and they are also working on other ideas to make 1 need: fabbisogno Eigg environmentally friendly. From 2 polluting: recycling to biological methods of inquinante cultivation and the use of electric cars, 3 bordered: every idea helps the 86 residents move circondato 4 maintenance: a step closer to their goal: to live in manutenzione their island paradise without polluting 5 set up: installato the environment and without needing 6 rely on: fare to rely on 6 the mainland to survive. affidamento su (Source: Al Jazeera / The Guardian)

3

Find words and phrases on these pages that mean: 3 the policy of limiting the amount of something that people are allowed to have 4 a machine used to make air warmer 5 not harming the environment.

1 a natural resource that can be used without the risk of finishing it all 2 a system of electric wires for sending power over a large area

PRODUCTION

4

Work in pairs. Imagine you could interview a member of the residents’ committee. Decide on a list of questions you would like to ask about the renewable energy scheme. Write the interview. Then act it out in front of the class.

5

Look at the photos of Eigg Island. Imagine you are spending a few days on the island on holiday. Write an e-mail to a friend in London. Say where you are, what the island is like and describe what is special about it. 41

3

RESPONSIBLE BUSINESS

Recycling Recycling is the process of reusing old, waste materials. They can either be recycled for exactly the same function, for example glass bottles and aluminum cans 1, or can be used to create a new product. Plastic bottles can be recycled into carpet, clothing and car components, for example, and steel cans can be used in construction materials. Recycling helps to save energy, natural resources, money, time and landfill space. It also creates less pollution, because fewer waste products are incinerated or put into landfill sites 2, and reduces the quantity of greenhouse gas emissions. Materials which can be recycled include: glass, plastic, metal, water, paper, textiles, organic products, electronics. 1 can: lattina 2 landfilll site: discarica 3 waste: rifiuto 4 circle: circumnavigare 5 light bulb: lampadina 6 curbside collection: raccolta porta a porta

Recycling e-waste Electronic waste  3 refers to discarded electrical or electronic devices. It includes old computers, monitors, TVs and mobile phones. An estimated 50 million tons of e-waste are produced each year and the amount is predicted to rise to 65 million tons by 2017. It is becoming a growing problem because many recyclers do not recycle e-waste or do not do so responsibly. In the USA, the Environmental Protection Agency estimates that only 15-20% of e-waste is recycled, the rest goes directly into landfills and incinerators.

Recycling facts and figures

D EH HO

D

US

OL

FA PR CTO OC RI ES NG SI NG

G

IN AT

R PA

SE

HOW DOES RECYCLING WORK?

SORTING AT THE RECYCLING CENTER

„ Glass can last for thousands of years. It does not decompose.

The energy used to produce all the plastic bags that a typical household goes through in a year is enough to light that same house for six months.

EH

OL

US

„ Enough plastic bottles are thrown away in the United States each year to circle 4 the Earth four times! Plastic can take up to 500 years to decompose.

„ It takes 24 trees to make one ton of newspaper.

HO

„ On average, 16% of the money you spend on a product pays for the packaging, which ultimately ends up as rubbish.

RECYCLABLES’ CURBSIDE COLLECTION 6

ALUMINIUM

PLASTIC

GLASS

PAPER

MAY BE RECYCLED

MAY BE RECYCLED

MAY BE RECYCLED

INFINITELY

MANY TIMES

INFINITELY

MAY BE RECYCLED UP TO 6 TIMES

„ Leaving a tap on for five minutes uses up enough energy to run a light bulb 5 for 14 hours!

42

(Source: European Environment Agency)

ACTIVITIES

MEDIA FILE

Kenyan firm turns flip-flops into art What do you do with a pair of old flip-flops 1? Not a silly question as the planet produces billions of pairs of non-biodegradable flip-flops every year. But now a Kenyan biologist, Julie Church, has a partial solution. She has started a company that recycles discarded flip-flops. Last year the company, Ocean Sole, turned about 50 tonnes of dirty, old flip-flops into animal ornaments and jewellery. In Kenya beaches are littered with flip-flops from all over the world. Some of them are left on the beaches by the local population but others arrive from countries thousands of miles away. They are transported to Kenya from the Middle East, South Asia and Australasia via the Indian Ocean. The UN estimates that every square mile of ocean contains nearly 50,000 pieces of plastic.

WARM UP

1

COMPREHENSION

2

2 What are the benefits of recycling? 3 What materials can you recycle? 4 What is e-waste? Why is it becoming a growing problem? 5 What percentage of the final price of a product is spent on packaging? Why is it a waste of money? 6 How long would it take for a plastic bottle to decompose?

3

Listen to and read the article on this page and complete the factfile. Company profile

Ocean Sole is Church’s attempt to educate both consumers and producers. Sales have tripled in the last year and the company now has a global market, including 1 flip-flop: some of the world’s infradito most famous zoos and 2 to be littered with: aquariums. essere invaso da

Read page 42 and answer the questions. 1 What is recycling?

 2

(Source: The Guardian)

Is the division of waste products into recycling categories compulsory in your area? If so, does the system work? Are there any problems?

4

Name of company: ...................................

(1)

Owner: .....................................................

(2)

Location: ..................................................

(3)

What they produce: ..................................

(4)

Market: .....................................................

(5)

Write a list of words and expressions from these pages related to recycling. For each word write the Italian equivalent.

PRODUCTION

Courtesy of Ocean Sole Ltd.

5

Waste disposal and recycling has become a profitable business in some European countries. Is this the situation in Italy? Give reasons to support your opinion.

6

Prepare a short oral report about waste disposal and recycling in your region. Use your answers from ex. 1 and 5 to help you.

43

3

RESPONSIBLE BUSINESS

Green business Companion Book, p. 24

A green, or sustainable business is a business that tries to reduce its impact on the environment while maintaining a profit. Before the start of the 21st century, it was quite rare for big businesses to consider the impact of their practices on the environment and to incorporate eco-friendly policies 1 into their ways of working. Today, however, green has gone mainstream 2. Most companies consider green practices to be an important factor in remaining competitive and many also state that they contribute to company profits. Some of the reasons given for going green include: • Reduced environmental risk. A lot of companies are beginning to consider the effect they have on the environment. For example, they are abandoning investment in dirty energy sources and investing in renewable energy. • Green product demand. The demand for environmentally-friendly services and products has grown enormously over the last few years. • Consumer engagement 3. Community involvement is important for many companies and green practices enhance public image and community relations.

Ikea store with solar panels, Emerville, California.

Green Internet Almost every day new businesses are being created that use the Internet as their foundation. The trend is expected to continue as the global online population rises and more and more of our daily activities are carried out online. The rapid growth and use of the Internet is creating a dramatically increased demand for electricity. According to Greenpeace the collective electricity demand would rate as the sixth largest consumer if compared alongside countries in the world. COMPANY SCORECARD

Apple’s solar energy plant in North Carolina.

CLEAN ENERGY

NATURAL GAS

COAL

NUCLEAR INDEX

Apple

100%

0%

0%

0%

Yahoo

73%

6%

11%

8%

Facebook

49%

10%

25%

14%

Google

46%

15%

21%

13%

Microsoft

39%

19%

30%

10%

Rackspace

25%

21%

33%

21%

(Source: Clicking Clean, Greenpeace, 2015) 44

In a recent report, however, Greenpeace states that some of the leading technology companies have taken steps towards building a green Internet and are moving towards renewable energy sources. This is partly for environmental reasons and partly for business. While the cost of fossil fuel-based electricity is rising sharply, the cost of renewable energy is falling. In addition, companies are starting to change as they realise that their customers, appreciate sustainability.

Business in the 21st century • Attracting talent. Environmentally-conscious 4 business practices help attract and retain the best employees by increasing employee satisfaction and pride in the workplace. • Attracting investors. There is a growing interest in sustainability among investors, which can benefit companies that are committed 5 to the environment and the local community.

ACTIVITIES WARM UP

1

COMPREHENSION

2

Read ‘Green business’ on page 44 and correct the statements. 1 A green business is a business that is involved in agriculture. 2 Today most companies consider green practices irrelevant in terms of profit making. 3 At present few companies are investing in renewable energies. 4 The demand for green products has decreased over the past few years. 5 Few companies involve the local community. 6 Investors have shown very little interest in sustainability. 7 Green business practices will increase costs.

3

Read the article ‘Green Internet’ and answer the questions. 1 What has the rapid growth of Internet caused? 2 How does ‘cloud computing’ rate in terms of electricity demand? 3 What is the attitude of the largest technological companies towards renewable energies? 4 What are the reasons for this change of attitude?

4

Read ‘Green Internet’ again and find: 1 the name of the organisation that has examined the energy choices of IT companies 2 the number of IT companies examined 3 six major technological brands 4 the greenest IT company in 2015 5 the percentage of energy used by Google that is produced from coal 6 the four renewable energies used by Apple to power its data centres.

• Saving money. Green business practices can make the company more efficient and reduce costs.

1 eco-friendly policy: comportamento rispettoso dell’ambiente 2 go mainstream: assumere un ruolo principale

3 engagement: impegno 4 conscious: consapevole 5 committed: impegnato a favore di qualcosa

In 2015, Greenpeace examined the energy choices of 17 global IT companies. The results showed that several major brands had committed to a goal of using 100% renewable energy in their data centres. Of these Apple had improved the most. Apple are investing in onsite energy production, for example the development of a solar energy plant in North Carolina. They are also establishing relationships with suppliers to purchase renewable energy off the grid and are looking at ways to reduce their energy needs. Today, Apple’s data centres are 100% powered by energy from renewable sources – solar, wind, hydro and geothermal.

ELECTRICITY DEMAND: ONLINE COMPUTING VERSUS COUNTRIES (ELECTRICITY IN BILLION KW) 1 China 3862

4 India 774

2 USA 3790

5 Russia 729

3 Japan 939

6 Cloud computing 684

What do you think ‘green business’ means? Discuss with the class.

PRODUCTION

5

Write a list of Do’s and Don’ts for companies who want to be environmentally friendly. Refer to the list of reasons that companies have given for going green on these pages. 45

3

RESPONSIBLE BUSINESS

Fair trade Companion Book, p. 24

1 fair: equo 2 smallholder: piccolo produttore 3 wage: salario 4 trade union: sindacato 5 terms of trade: condizioni contrattuali

The Fairtrade mark Fairtrade Labelling Organisations International (FLO) is a group of 24 separate organisations around the world that are trying to help producers in developing countries. Their aim is to connect consumers and producers via a label, the Fairtrade mark, which promotes fairer  1 trading conditions. Through this label, producers who are disadvantaged by conventional trade can combat poverty, strengthen their position and take more control of their lives. When a product carries the Fairtrade mark it means that the producers and traders have met standards. The label is awarded to smallholders 2 that work together in co-operatives or other organisations with a democratic structure and to companies who pay their workers decent wages 3, guarantee them the right to join trade unions 4, ensure health and safety standards and, if necessary, provide adequate housing. Fairtrade standards also cover terms of trade 5. Most products have a Fairtrade price, which is the minimum that must be paid to the producers. The price ensures that producers can cover the average costs of sustainable production. When the market price is higher than the Fairtrade minimum, the buyer must pay the higher price. In addition to the Fairtrade price, producers are also given an extra payment called Fairtrade premium. This money goes into a communal fund for workers and farmers, who can use it to improve their social, economic and environmental conditions. There are now thousands of products that carry the Fairtrade mark. These include food products, such as tea, coffee, fruit and nuts, as well as non-food products, such as flowers, plants and cotton. (Source: FLO)

Thousands of cardboard characters outside the Houses of Parliament in London, during a demonstration organised by the Fairtrade Foundation.

46

ACTIVITIES

MEDIA FILE

The Fairtrade mark turns 15 Over the last 15 years, the Fairtrade mark has become a common sight on British supermarket shelves. The number of licensed Fairtrade products has grown from 80 to more than 4,500, enabling about 7 million farmers and workers, as well as their families, across the world to benefit. The foundation wants people, through their work, to maintain a dignified livelihood 1, and be able to develop to their full potential. And it wants a world in which justice and sustainable development are at the heart of trade structures and practices. It’s a big demand but it’s one which we should all support, and the evidence suggests that we are. Last year the estimated retail value 2 of Fairtrade in the UK was about £700 million. And it’s not just consumers and retailers that have embraced the Fairtrade ethos, its value has been recognised by the UK government, too. As part of the Department for International Development’s (DFID) UK aid programme, the Secretary of State has announced a quadrupling of funding to promote fair and ethical trade. Fairtrade’s task now is to take their successful model and run with it 3. As well as making sure the majority of our purchases are Fairtrade in at least three of their major product categories (bananas being one), it wants to open the market up to poor producers not yet working with Fairtrade, as well as adapting their model to include a wider range of business sectors, plus create 1 livehood: tenore new opportunities for di vita producers to sell their 2 retail value: valore products. al consumo There’s no going back – 3 run with something: far the future is Fairtrade. (Source: The Guardian)

WARM UP

1

Work in small groups. Discuss these questions. 1 What do you think the term ‘fair trade’ means? 2 What sort of products do you associate with the Fairtrade mark? What areas of the world do they come from?

COMPREHENSION

2

Read page 46 and answer the questions. What is FLO? What is its aim? What standards do producers have to meet? How are Fairtrade prices calculated? How do producers in developing countries benefit from the Fairtrade initiative?

1 2 3 4

3

Write a list of products that carry the Fairtrade mark.

4

Complete the table with appropriate nouns.

Action

People

Action

People

to produce

..................

to work

..................

to consume

..................

to buy

..................

to trade

..................

to farm

..................

5

Listen to and read the article on this page and find out what these figures refer to. 1 15 years 4 £700 million 2 80 5 four times as much 3 7 million

PRODUCTION

6

Work in pairs. Discuss these questions. 1 Are any products with the Fairtrade label sold in your area? 2 If so, have you ever bought any of them? What have you bought? 3 If not, do you think the Fairtrade initiative is a good idea? Why? Why not?

7

Write a paragraph explaining how producers in developing countries can combat poverty and take more control of their lives via the Fairtrade initiative. Start like this: Small producers in developing countries...

funzionare qualcosa

47

3

RESPONSIBLE BUSINESS

Ethical banking In the past banks rarely considered the social and environmental impacts of their financial transactions. As financial institutions, they were rarely associated with the actions taken by the businesses they lent 1 money to. Today, however, people know more about the effects that banks can have with their lending policies and there is a growing demand for ethically orientated banks. An ethical bank is a bank that is concerned with the social and environmental impacts of its investments and loans 2. Although there is no universal code of conduct, ethical banks usually have an ethical policy and they use it help them to check the status of potential investors and partners. If the nature of the investor’s business compromises the bank’s ethical policy, then it will refuse to accept the investment. Similarly, the policy helps banks decide where to invest their money. Many ethical banks, for example, refuse to invest in companies involved in the arms trade 3 or companies that contribute to climate change.

1 lend: dare in prestito 2 loan: prestito 3 arms trade: traffico di armi 4 charity: associazione benefica 5 organic farm: fattoria biologica

Ethical banks also look for investment opp or t u n it ie s t h at e nc ou ra ge environmental or social enterprises. Triodos, a bank based in the Netherlands with branches throughout Europe, for example, only lends money to businesses or charities  4 judged to be of social or ecological benefit. The bank lends to hundreds of organisations including fair trade initiatives, organic farms 5, cultural and arts initiatives, renewable energy projects and social enterprises.

SOME ETHICAL BANKS AROUND THE WORLD

48

ACTIVITIES

MEDIA FILE

Banca Etica, a bank that takes its name seriously A different side of Italy was on display this month at Florence’s 16th-century Fortezza da Basso, where Banca Etica, an ethical bank, held its annual meeting. Outside, stands were selling all sorts of bio foods. Inside, casually dressed shareholders discussed subjects such as social responsibility and the economic crisis. Ethical banks are nothing new, but Banca Etica takes its name seriously. Its annual report calls for a citizens’ revolt against casino finance 1, the use of tax havens   2 and speculation in commodities 3. It does not want to get involved in anything connected to pornography, oil or arms, and executive pay  4 is not allowed to exceed six times the lowest wage at the bank. The firm provides mainly credit to the non-profit sector and green businesses. It was, for instance, the first Italian bank to lend to co-operatives of young people who farm land confiscated from the mafia. Founded in 1998 in Padova, Banca Etica is still quite small: it has only 17 branches and around 230 staff. Even so, it has attracted a broad range of shareholders. They number approximately 39,200 of which 6,000 are firms, including 83 financial institutions. In 2015, the bank granted loans of about €864,8 million. By some measures, it is among Italy’s best-run banks: only 0.4% of loans are in default 5 and only 4.9% of loans are classified as ‘problematic’. Can Banca Etica grow beyond its niche? That probably depends less on the firm itself than on Italy’s established 1 casino finance: banks. If there are finanziamento di more scandals such as case da gioco the one surrounding 2 tax haven: Monte dei Paschi di paradiso fiscale 3 commodity: merce, Siena, which lost derrata alimentare billions in dubious 4 executive pay: deals   6, Banca Etica compenso dei may attract more dirigenti business than it can 5 be in default: non onorare (un prestito) deal with. (Source: The Economist)

6 deal: affare

WARM UP

1

Work in pairs and discuss the following. Which of these policies do you think an ethical bank will follow? Choose the correct alternative. 1 Support local business / multinationals. 2 Check / Do not check the nature of its investors’ business. 3 Support / Do not support companies involved in the arms trade. 4 Invest back into / Do not invest back into community development. 5 Invest in / Do not invest in countries guilty of human rights abuses.

COMPREHENSION

2

Read page 48 and answer the questions. 1 How is the present attitude of potential clients towards banks different to the past? 2 What are ethical banks? 3 When will ethical banks refuse investments? 4 What sort of organisations do they support? 5 What is Triodos? 6 Can you name any ethical bank in Italy?

3

Listen to and read the article on this page and complete the factfile about Banca Etica. Name of bank: Banca Etica Based in: .................................................. (1) Number of branches: ................................ (2) Staff: ............................................. (3) people Loans granted (2015): € ............................ (4) Loans in defaults: ................................. % (5) Ethical policies: ......................................... (6)

4

Read these pages again and find the opposite of the following words: 1 often 4 to accept 2 less 5 to discourage 3 decreasing 6 highest.

PRODUCTION

5

Work in pairs. Compare your answers to ex. 3. Ask and answer questions about Banca Etica. Ex.: What country is Banca Etica based in?

6

Choose one of the banks listed on page 48 and look for information in the Web. Write a factfile similar to the one in ex. 3. Then write a short article about the bank. 49

4

GLOBAL ISSUES Inequalities: poverty More than one billion people around the world live on less than $1 a day. And, according to the United Nations, another 2.7 billion have to survive on less than $2 per day. Extreme poverty is common in underdeveloped countries in Sub-Saharan Africa, Southeast Asia, and Central America. The problems related to poverty in developing countries, however, go far beyond the low levels of income. Poverty is related to many wider issues such as health, education, crime, gender equality 1, legal rights and environmental sustainability.

Millennium development goals (MDGs) 1 gender equality: parità di genere 2 bottom: livello minimo 3 tackle: contrastare 4 inequality: disuguaglianza 5 literacy: alfabetizzazione

To reduce the levels of poverty, the United Nations member states set eight international development goals in 2000. They are known as the Millennium Development Goals (MDGs). To accelerate progress towards the MDGs, the G-8 Finance Ministers met in June 2005 and reached an agreement to cancel debts owed by poor countries. The aim was to allow these countries to re-direct their saved resources into social programs for improving health and education and reducing poverty. In April 2013, the World Bank Group set two new goals: to eradicate extreme poverty within a generation and to promote shared prosperity in every country. The second goal is measured by the growth in income among the bottom 2 40% of the income distribution in each country. It includes a strong emphasis on tackling  3 persistent inequalities  4 that keep people in poverty from generation to generation.

NORWAY 0.944 AUSTRALIA 0.935 HIGHEST HDI

SWITZERLAND 0.930 DENMARK 0.923 THE NETHERLANDS 0.922 NIGER 0.348 CENTRAL AFRICAN REPUBLIC

LOWEST HDI

0.350

ERITREA 0.391 CHAD 0.392 BURUNDI 0.400

50

UN Human Development Index (HDI) The wealth of a country is not only measured by the average income of the people, but also by their standard of living. The Human Development Index (HDI), published annually by the UN, ranks nations according to their citizens’ quality of life. The criteria for calculating rankings include life expectancy, literacy 5 and income. Most of the countries with a high HDI are located in the north of the hemisphere, whereas the countries with a low HDI are located in the south. The difference is known as the ‘development gap’.

Business in the 21st century

Stand Up, Take Action ‘Stand Up, Take Action’ is an annual event aimed at encouraging people to take action against poverty. To show their support for the cause, people all over the world take part in a coordinated performance in which they stand up at a pre-arranged date and time. A variety of other activities are also organised to publicise the event. Churches ring their bells at the same time in cities and countries, for example, and musicians around the world play their musical instruments. In 2009, more than 170 million people worldwide took part in the ‘Stand Up, Take Action’ event. It was certified by the Guinness World Records as the largest coordinated movement by citizens. The demonstrations are organised by the United Nations Millennium Campaign (UNMC). The Millennium Campaign was set up in 2002 as a response to the failing efforts of governments in keeping their promises and commitments to achieve the MDGs.

ACTIVITIES WARM UP

1

Class discussion. Which of these factors should be considered when measuring the wealth of a country? Compare your ideas with the rest of the class. climate • life expectancy • level of literacy • level of education • health and nutrition • level of unemployment • access to Internet • population • happiness • income

COMPREHENSION

2

Read page 50 and answer the questions. 1 How many people around the world live on less than $2 a day? 2 In which areas of the world is extreme poverty common? 3 What are the Millennium Development Goals? Who set them? When? 4 What is the HDI? 5 How many English-speaking countries have one of the five highest HDIs? 6 In which part of the world are the five countries with a low HDI located?

3 16

Listen to the advert for the ‘Stand Up Take Action’ campaign. Complete the sentences with the missing numbers. 1 ............... % of the world’s population lives on less than $ ............... a day. 2 ............... children die every day due to poverty. 3 ............... billion people have inadequate access to water. 4 ............... billion people lack basic sanitation. 5 ............... % of people in the world account for just ............... % of global income. 6 The International Day for the Eradication of Poverty is on ...............th October.

PRODUCTION

4

Read the text about the ‘Stand Up, Take Action’ event, then work in groups. Imagine that your group wants to organise an event for the campaign. Think of the following then report to the class. • Where you will organise the event. • Who you will invite. • How you will advertise the event.

5

Write a short news article about the event you are organising (see ex. 4). 51

4

GLOBAL ISSUES

Fighting poverty: microcredit Microcredit is the extension of small loans (microloans) to unemployed people and others living in poverty. These people would normally find it impossible to obtain a loan because they don’t meet any of the traditional requirements for credit, such as collateral 1 or employment. Microcredit originated with the Grameen Bank, which was founded in Bangladesh in 1983. The bank has successfully helped many extremely poor people to start up selfemployment projects that have enabled them to make money and, in some cases, exit poverty. Today microcredit is widely used in developing countries and is gaining credibility in the finance industry. Nobel Peace laureate Muhammad Yunus gives a speech during an award ceremony at Oslo Town Hall 10 December 2006.

1 collateral: garanzia 2 poor repayment risk: alto tasso di rischio per il rimborso 3 borrower: chi prende a prestito 4 housing loan: prestito per l’abitazione

52

In Europe microloans are granted to small entreprises and people who want to go into self-employment but do not have access to traditional banking services. 99% of start-ups in Europe are micro or small enterprises and one third of these are launched by people who are unemployed.

The Grameen Bank In the 1970s, Muhammad Yunus, a professor of economics from Bangladesh, realised that very small loans could make a significant difference in a poor person’s ability to survive. At the time traditional banks were not interested in making tiny loans to people who were considered poor repayment risks 2. Yunus founded the Grameen Bank (‘grameen’ means ‘village’ in Bengali) with the objective of directing credit towards the poor of Bangladesh. Since then the Grameen Bank has issued more than $8 billion in loans to several million borrowers 3. Nearly 96% of Grameen loans have been given to women, who have been found to be more reliable than men with regards to the repayment of loans. As it has grown, the Grameen Bank has also developed other systems of credit that serve the poor. It runs several development-oriented businesses including fabric, telephone and energy companies. In addition, it offers housing loans  4 and financing for activities such as irrigation projects, as well as other banking services such as savings. In 2006, Yunus and the Grameen Bank were awarded the Nobel Peace Prize. Today the bank has over 2,500 branches, and continues to expand across the nation. The success of the Grameen model has inspired similar efforts throughout the developing world and in some industrialised nations, including the USA. The Grameen Foundation, based in Washington, DC, was developed to share the Grameen philosophy and expand the benefits of microfinance for the world’s poorest people. The Foundation provides microloans in different areas of the world, including the USA, and supports microfinance institutions worldwide with loan guarantees, training, and technology transfer.

Business in the 21st century

PERSONAL STORIES Mrs. Yusnaini, Indonesia

Elsa, The Philippines Elsa Ligua, a mother of four, saves money for her children’s future through Grameen Foundation’s microsavings program in the Philippines. Elsa’s husband has a shoe repair stall and Elsa adds to the family income by selling food. All four of their children go to school but the family finds it difficult to pay the school fees. When Elsa learned about a microsavings programme through CARD Bank, a microfinance institution and long-time Grameen Foundation partner, she enrolled immediately. Every day, a savings officer visits her home and collects about 50 cents. On good days, Elsa deposits even more money. Her goal is to save about $200 so that she will be ready whenever tuition fees are due for her children.

Fifteen years ago, Mrs. Yusnaini moved to Aceh, Indonesia with her husband to search for better business opportunities. She opened a small stand in front of her house where she made and sold traditional Indonesian meals. But, despite her hard work, she and her husband found it difficult to provide for their five children. When Mrs. Yusnaini learned that she could access small loans through YAMIDA, a microfinance institution and Grameen Foundation partner, she took out a loan of $100. With her loan, she purchased equipment for her food stand, such as larger pots and plates. She can now produce and sell more food in a shorter period of time and, since she took out the loan, her daily profit has increased 33%. Mrs. Yusnaini says she doesn’t only want to run a food stand. She hopes to take out other loans and fulfill her dream of someday owning a restaurant. (Source: The Grameen Foundation)

ACTIVITIES WARM UP

1

Work in pairs. Discuss these questions. • What do you think the term ‘microcredit’ means? • Why do unemployed or poor people find it difficult to obtain credit? • If you were a bank manager, would you consider offering credit to people in these socio-economic groups? If so, why and under what conditions?

COMPREHENSION

2

Read the first paragraph on page 52. What do these figures refers to? 1 25,000 2 91 3 99

3

Read about the Grameen Bank on page 52 and fill in the factfile. Founded: in ...............

4

by ......................

(2)

Aims: ........................................................

(3)

Money lent since its foundation: ................

(4)

Profile of borrowers: .................................

(5)

How repayment is ensured: ......................

(6)

(1)

Types of services offered: ......................... (7) Number of branches: ................................

Read the personal stories on this page and answer the questions. 1 Where does Elsa live? 2 What does she do? 3 How big is her family? 4 How much does she save each day? 5 What target does she want to reach? Why? 6 Where does Mrs. Yusnaini live? 7 What does she do for a living? 8 How much money did she borrow? 9 What did she do with her loan? 10 What results did the loan have?

(8)

PRODUCTION

5

Use the information from the factfile in ex. 3 to write a paragraph about the Grameen Bank. 53

4

GLOBAL ISSUES

Deindustrialisation The term ‘deindustrialisation’ refers to a decrease in the importance of industry and manufacturing in the economy and an increase in the importance of the tertiary sector of production. In the developed countries of the western world, deindustrialisation occurs for many reasons.

Reason for deindustrialisation the exhaustion of raw materials competition from other countries which can produce goods more cheaply the relocation of production facilities to low-cost locations in other countries the fact that technology has streamlined 1 the process of manufacturing and eliminated a lot of manufacturing jobs a higher amount of investment in the service sector Abandoned plant in Detroit, USA.

Developing countries such as those in many parts of Africa are not yet at the stage of deindustrialisation. On the contrary many are currently experiencing a movement from primary to secondary production with the consequent increase in industrialisation.

Deindustrialisation in the UK 1 streamline: modernizzare 2 shipbiulding: industria navale

In the 18th century during the Industrial Revolution British people migrated from the countryside to industrial towns and the British economy moved from primary to secondary production. In recent years deindustrialisation has led to the decline of traditional manufacturing industries, such as shipbuilding  2, textile and steel and a movement of people away from industrial towns. The tertiary sector has grown rapidly, particularly in the areas of finance and technology where the UK is now a leader.

The relative importance of each sector of production in Britain since 1950

1950

54

1990

2010

PRIMARY PRODUCTION

22%

7%

1%

SECONDARY PRODUCTION

42%

21%

18%

TERTIARY PRODUCTION

36%

72%

81%

Business in the 21st century

Deindustrialisation in the USA The USA is a good example of the process of deindustrialisation. The move away from industrialisation started in the 1960s. At this time, other countries, such as Japan, had begun to develop more efficient industrial sites and were manufacturing goods like steel cheaper than it was possible in the USA. At the same time in the USA, investments in the service industry were starting to give higher returns than the manufacturing industry, so investors started to concentrate on these more profitable service industries instead. The immediate effect was on industrial jobs. Lower pay, lost jobs and worker strikes were common. Industrial concentrations, such as Detroit in Michigan which had an economy dominated by the car manufacturing industry, were particularly badly affected. With the process of deindustrialisation there was less reason to live near the industrial centres in the north-east and midwest of the USA. The population migrated away from the manufacturing centres in those areas to the south east and west. As a result of this migration the population of many former small cities has grown sharply over recent years. For example, since 2005 Phoenix in Arizona has increased its population more than any other city in the USA and is now the sixth largest city in the USA, with a population of more than 1.5 million people in the city and 4.5 million in the Phoenix Metropolitan Area. Ford Motor assembly plant, Detroit, 1963.

ACTIVITIES WARM UP

1

Look at the title and photograph on page 56. What do you think the term ‘deindustrialisation’ means?

COMPREHENSION

2

Read the first paragraph on page 56 and answer the questions. 1 What is the process of deindustrialisation? 2 Which parts of the world have been most effected by deindustrialisation? 3 Why does deindustrialisation occur? 4 What areas of the world are experiencing an increase in industrialisation?

3

Read about ‘Deindustrialisation in the UK’ on page 56 and correct the statements. 1 During the Industrial Revolution most of the people worked in the tertiary sector. 2 The UK is now a leader in manufacturing industries. 3 Most of the people in the UK now live and work in industrial towns. 4 In the 1990s the majority of people in the UK were employed in the primary sector. 5 Between the 1950s and 2010s the percentage of UK people employed in services has decreased.

4

Read this page and list the effects of deindustrialisation in the USA on: • population distribution • the decline and growth of towns and cities.

PRODUCTION

5

Explain in your own words the difference between ‘industrialisation’ and ‘deindustrialisation’.

6

Has deindustrialisation happened in Italy? Look for more information on the Internet and write a short article.

55

4

GLOBAL ISSUES

Emerging markets Newly industrialised countries (NICs) ‘Newly industrialised country’ (NIC) is a term used to describe an emerging market which has an economy that is growing at a faster rate than markets in other areas of the world. NICs are characterised by very high levels of exportation and rapid industrialisation. At present ten emerging markets are considered by experts to be NICs. They are South Africa, Mexico, Brazil, China, India, Indonesia, Malaysia, The Philippines, Thailand and Turkey. Five of these countries (Brazil, China, India, Mexico and South Africa) meet the G8 countries every year to discuss financial topics and climate change. This reflects their importance in today’s global market. Many experts predict that, by 2050, the largest economies in the world will be China, the USA, India, Brazil and Mexico. Asia’s largest solar power station, the Gujarat Solar Park, in Gujarat, India. CHINA

TURKEY

THAILAND MEXICO THE PHILIPPINES

INDIA

MALAYSIA SOUTH AFRICA

BRAZIL INDONESIA

The ‘Four Asian Tigers’ The term NIC was first used in the 1970s to describe the fast economic development of Hong Kong, Singapore, South Korea and Taiwan. These countries, often referred to as the ‘Four Asian Tigers’, had exceptionally high growth rates and rapid industrialisation between the 1960s and the 1990s. Today they have surpassed the levels of many developed countries and have advanced and high-income economies. Hong Kong and Singapore are leading international financial centres, whereas South Korea and Taiwan are world leaders in information technology and manufacturing. 56

Business in the 21st century

Chindia The term Chindia has become popu la r w it h economists over recent years. It refers to the simultaneous rise of both China and India and its impact on Asia and the rest of the world.

ACTIVITIES WARM UP

1

Together, the two countries contain over one-third of the world’s population (2.6 billion people) and they are both among the fastest growing major economies in the world. Citigroup, a global financial services company, predicts that the economy of China will surpass the USA within the next few years and India’s economy will do the same by 2050.

COMPREHENSION

2

Read page 58 and correct the statements. 1 The term NIC has been used for about a century. 2 It describes the growth in population of some emerging markets. 3 NICs are characterised by high levels of importation and rapid deindustrialisation. 4 The ‘Four Asian Tigers’ include China and India. 5 Hong Kong and Singapore are well known as important manufacturing centres.

3

Read this page and answer the questions. 1 What does the term Chindia refer to? 2 What have the two countries got in common? 3 How do the economies of China and India complement each other?

What makes the two countries especially powerful is that they complement each other’s strengths. China is strong in manufacturing, while India excels in services and information technology. China is stronger in hardware, while India is stronger in software. And China is stronger in physical markets compared to India’s strength in financial markets. All this raises a provocative question: what if the two nations merged to form one giant ‘Chindia’? At the moment this seems very unlikely because of rival economic and political ambitions, but if the countries collaborated more, they could completely transform the global economy in the 21st century.

Tick (✓) the correct definition for ‘emerging markets’. a Developed countries going through a period of economic growth. b Developing countries in the process of rapid growth and industrialisation. c Under-developed countries with the potential for growth and industrialisation.

PRODUCTION

Women cutting loose threads after the embroidery process, India.

4

Use the prompts to discuss the differences between developed and developing countries. industrialisation • sectors of production • GDP (Gross Domestic Product) per capita • HDI (Human Development Index) • birth and death rates • transport networks

5

Prepare a short oral report about NICs. Include information about: • emerging markets and NICs • how and when the term originated • the features of NIC countries • the Four Asian Tigers • Chindia. 57

4

GLOBAL ISSUES

CASE STUDY

China

ALTERNANZA SCUOLA-LAVORO

China is the most populated nation in the world and the second-largest country by land area. It borders 14 nations and is home to over 1.35 billion citizens. More than 160 cities have a population of over one million, including seven megacities with at least 10 million inhabitants. China is one of the world’s fastest-growing economies – its economic growth rate is equivalent to the combined rate all of the G7 countries – and it is currently undergoing what has been described as a second industrial revolution. Although the country was fairly isolated from the rest of the world during the strict Communist regime of Mao Zedong, it has a culture stretching back nearly 4,000 years. Many of the elements that make up the foundation of the modern world originated there, including paper, gunpowder, credit banking, the compass and paper money. Industrialisation in China started in the 1950s. Under its planned economy, however, the aim was to make the country ‘self-reliant’ and there was very little economic interaction with other countries. When new market-based reforms were introduced in 1978, China ranked 27th in the world for external trade. Since then the Chinese economy has been radically transformed. The country is now a member of the World Trade FACTFILE Organization and it is the world’s largest exporter Full name the People’s Republic of China and the second largest importer of goods. Its high productivity, low labor costs and relatively good Population 1.37 billion infrastructure have made China a global leader in Capital Beijing manufacturing. Largest city Shanghai Over the last few years China’s economic growth has slowed slightly, but even so, many experts Mandarin Chinese, Cantonese, predict that the country will become a new world English (Hong Kong), Portuguese Major languages superpower and will play a prominent global role (Macau), Tibetan and Mongolian plus in the 21st century. over 250 indigenous languages Main exports

electrical goods and other machinery, clothes and textiles, iron and steel, optical and medical equipment

Labour force by occupation

agriculture: 33.6% industry: 30.3% services: 36.1%

Currency

Renminbi yuan (RMB)

Bags factory in Shenzhen.

58

Business in the 21st century

ACTIVITIES Shanghai, a global city Shanghai, or ‘the Pearl of the Orient’, is located at the mouth of the Yangtze River on China’s east coast. It has grown rapidly since China opened up its markets in the 1980s and it is now the largest city in the world with a population of almost 24 million people. The city is the commercial and financial centre of mainland China and one of the most important industrial centres in the country. It is also a transport hub with the world’s busiest container port. The Shanghai region accounts for 30% of China’s foreign exports and attracts 25% of all foreign investment into the country. More than 500 multinational companies, ranging from General Motors to Volkswagen, have their regional headquarters in the city. Shanghai also has an important financial centre, Pudong, which has attracted many major western banks.

WARM UP

1

COMPREHENSION

2

Read these pages and find the following: 1 the population of China 2 the largest city in China and in the world 3 five Chinese inventions 4 the sector of production with most workers 5 three reasons why China is a leader in manufacturing 6 an event hosted in Shangai in 2010.

3

Answer the questions. 1 What kind of economy did China have in the mid 20th century? 2 What were the aims of the government during this period? 3 How has the Chinese economy changed since the end of the 20th century? 4 What do experts predict for China? 5 What role does Shanghai have in the Chinese economy?

4

Read these pages again and find the English equivalents for the following: 1 tasso di sviluppo 4 rallentare economico 5 superpotenza 2 autosufficiente 6 centro nodale per 3 commercio estero il trasporto

In 2010, Shanghai hosted the Shanghai World Expo, a world fair showing off the latest in architecture and technology. The theme of the exposition was ‘Better City Better Life’ which signified Shanghai’s new status as an important global city. By the end of the Expo, over 73 million people had visited and 246 countries and international organisations had participated. By 2020, Shanghai is expected to be the richest economic region in the world.

Write a list of things/products you associate with China.

China Pavilion, Shanghai World Expo Park.

PRODUCTION

5

Chinese communities have been established in almost all Italian cities. Discuss the questions. 1 What kinds of jobs do most Chinese people who live in Italy do? 2 What products do they sell? 3 How well have they integrated into the life of the country? 4 How have they influenced the Italian lifestyle?

6

Prepare a short oral report about China. Use your answers from ex. 2, 3 and 5 to help you. 59

4

GLOBAL ISSUES

CASE STUDY

India

ALTERNANZA SCUOLA-LAVORO

India is located in south Asia and it borders six other Asian countries. It is the seventh largest and the second most populated country in the world and is home to more than one billion people. It has a multilingual and multiethnic society. India has a long and important history which goes back to the Indus Valley Civilisation from about 2500 BC. Over the centuries it has been an important centre for trade and commerce and its culture and religions have spread to other areas of Asia. In recent history India was under British rule 1 from the mid-18th century. It didn’t gain independence until 1947, after a long struggle for freedom led by Mahatma Gandhi. Following market-based reforms in 1991, India has become one of the fastest growing economies in the world. The country has capitalised on its large, educated English-speaking population to become a major exporter of information technology services, business outsourcing services, and software workers. It is now the world’s tenth largest economy by GDP and the third largest by purchasing power 2 parity (PPP). India continues, however, to face many challenges, including poverty and illiteracy 3. It has the largest population of street children in the world. At least 18 million children live or work on the streets of urban India and 50% of Indian children between the ages of 6-18 do not go to school.

FACTFILE

Other problems include a lack of infrastructure, corruption, violence – particularly towards women, inadequate public healthcare 4 and terrorism.

1 2 3 4

rule: dominio purchasing power: potere d’acquisto illiteracy: analfabetismo public healthcare: sanità pubblica

Full name

Republic of India

Population

1.26 billion

Capital

New Delhi

Most populated city

Mumbai

Major languages

Hindi, English and at least 16 other official languages

Main exports

agricultural products, textiles, jewellery, software services and technology, engineering, goods, chemicals, leather products

Labour force by occupation

agriculture: 49% industry: 20% services: 31%

Currency

Indian rupee

Business in the 21st century

ACTIVITIES WARM UP

India’s digital divide India has a population of 1.2 billion, according to the last Indian census. More than 800 million Indians live in rural areas and just under 400 million live in urban areas. Internet penetration of the entire population is low, below 10%, and there is a deep digital divide in the country. While 20% of urban Indians are connected to the Internet, only 3% of rural Indians are online, according to the Internet and Mobile Association of India (IAMAI). The paradox of modern India is that while the middle classes have enjoyed prosperity as a result of India’s fast growing economy, the majority of the population has been left out. IAMAI has carried out a survey to investigate why most people in rural India do not have access to the Internet. These are some of their findings: 59% have no Internet connection, 35% have inadequate electricity supplies, 39% have no computer at home, 37% think they don’t need the Internet, 42% are not aware of the Internet. Many people from rural areas do not speak English and there is limited content online in Indian languages, IAMAI has found. However, attempts are being made to bridge the digital divide. The Digital Empowerment Foundation in Delhi is installing wireless networks in remote regions of India and teaching local people how to connect. And the Internet Society in Bangalore (India’s Silicon Valley) is also training rural artisans to promote their products on Facebook and Twitter. The aim of these initiatives is to increase availability of Internet access in India and address the lack of online content, products and services originating from rural areas.

1

Tick (✓) these facts about India true (T) or false (F), then check your answers on page 62. 1 India borders six different countries. T F 2 It is the most populated country T F in the world. 3 The capital is Mumbai. T F 4 India was a British colony till the T F 18th century. 5 English is one of the official T F languages in India.

COMPREHENSION

2

Read page 60 and find: 1 the official currency in India 2 the influence that India had on other Asian areas 3 the role of Mahatma Gandhi in India’s struggle for independence 4 the reason why India is a major exporter of technological services and workers 5 how India ranks in the world’s economy 6 seven big challenges India has to face.

3

Read this page and answer the questions. 1 What percentage of the Indian population live in rural areas? 2 What is the average rate of Internet penetration in the country? 3 What is the paradox of modern India? 4 What does IAMAI stand for? What survey have they carried out? 5 What have they found? 6 What is being done to bridge the digital divide?

(Source: CNN)

PRODUCTION

4

Prepare an oral report about India. Include information about the following. Conclude your report with a personal opinion about the country. • its economy • its main problems • its digital divide 61

Business theory & communication

BUSINESS BASICS

1 Business background 2 The business world 3 Marketing

BUSINESS TRANSACTIONS

4 Enquiring 5 Ordering 6 Delivering goods

An insight into the world of economy and finance DIGITAL EXPANSIONS

COMPANION BOOK: THEMATIC LINKS AND EXPANSIONS

Module 1 • Protectionism (SB p. 72)

Adam Smith, the father of Economics (CB p. 6)

• E-mail: the pros and cons (SB p. 88)

To reduce e-mail, start at the top (CB p. 67)

• Business e-mail netiquette (SB p. 89)

Netiquette (CB p. 66)

Module 2 • Business growth (SB p. 106)

The EU key competition principles (CB p. 32)

• Job searching (SB p. 114)

Getting a job in business administration (CB p. 38) Getting a job in marketing (CB p. 60) Getting a job in IT (CB p. 82) Careers in tourism (CB p. 96)

Module 3 • The marketing mix (SB p. 136)

The evolution of the marketing mix (CB p. 42)

• Digital marketing (SB p. 139)

Web marketing (CB p. 52)

Module 4 • Written replies to enquiries (SB p. 186)

Netiquette (CB p. 66)

Module 5 • International trade statistics (SB p. 200)

The main sources of statistical and economical information (CB p. 26)

Module 6 • Cyber-attack policies (SB p. 252)

Privacy and security: cyber-attacks (CB p. 28) Data protection (CB p. 72)

Business background

1

BU S I N E SS C

EORY

M MU

NICATIO

B U SI N

S

TH

O

ES

2 Production 2 Commerce

BU

UA

GE

N

BUILD YOUR COMPETENCE

S IN

ESS LA

NG

2 Requesting (1) 2 Offering 2 Describing trends

2 Oral communication 2 Visual communication 2 Written communication

BUSINESS THEORY

Production Goods and services A business is any organisation that makes goods or provides services. • Goods are physical products such as food, clothes and cars. They can be divided into two categories: non-durable goods, which do not last very long, for example flowers and bread; and durable goods, such as books and computers, which last a long time. • Services are non-physical products. They are actions that people perform to assist others. Education and healthcare are examples of services that we use on a regular basis. Goods and services are produced to meet the needs and wants of consumers. • A need is something that you have to have. It is essential for survival. Food is a good example. If you don’t eat, you won’t survive for long. Other basic needs include safe water, housing and clothes. • A want is something that you would like to have, but which is not essential. You could live without it. Examples include a larger home, a smart phone, luxury cars or a holiday abroad. Our idea of needs and wants is always changing. In the past, for example, when cars were first invented, they were considered a luxury. A lot of people wanted a car, but they didn’t really need one. Today cars have become a part of modern life and many people consider them to be an essential need.

Economic resources: factors of production Resources are used to produce the goods and services demanded by consumers to satisfy their needs and wants. These resources are known as factors of production. There are four factors of production: capital, labour, enterprise and land. Because there is a limited supply of resources, it is important to use them efficiently to maximise the amount that can be produced.

PRODUCTION

capital

66

labour

enterprise

land

Business background

1

ACTIVITIES 1

Read ‘Goods and services’ on page 66 and complete the definitions. 1 .............................. are things we cannot do without. Basic .............................. include food, water, housing and clothes. 2 .............................. are things which are not really needed, but make people’s life much easier. 3 .............................. are physical objects that we can use or consume. 4 .............................. are non-physical items. They are helpful, professional activities.

2

Answer the questions. 1 What does a business organisation make or provide? 2 Why are goods and services produced?

3

3 What is used to produce them? 4 How many factors of production are there? 5 Why is it important to use them efficiently?

Match the factors of production to their definitions. Definitions a The number of people who can and want to work. 1 capital 2 labour b The earth and oceans and the plants, animals and raw materials which come from them. 3 enterprise c The money available to buy natural resources and land as well as 4 land the physical assets – buildings, production facilities and equipment – used to produce goods and services. d The people who set up businesses. Factors of production

4

Which factors of production do these newspaper headlines refer to? 1

Government to accept 3% minimum wage rise

2

Global oil supplies estimated at 188.8 million tonnes

3

New figures reveal entrepreneurial hotspots in the UK

4

Growth in business bank loans – a positive sign for the economy

5a b

How do you spend your money? Make a list of all the things you have bought or paid for in the last week. Work in pairs. Compare your lists. Answer the questions. 1 Which of the things are goods and which are services? 2 What proportion of your money did you spend on needs? And wants?

Lettuce intensive growing.

67

BUSINESS THEORY

The three sectors of production Businesses operate in three different sectors of production.

Primary production consists of industries which acquire the raw materials to make other products. These include industries which extract or produce materials from the land and sea, for example mining, fishing, farming and forestry.

Secondary production converts these raw materials into finished goods. Industries in this sector are involved in manufacturing, construction, processing 1 and production. Examples of products include plastic, cars, furniture, houses, etc.

1 processing: trasformazione 2 national income: reddito nazionale

Tertiary production provides services which assist and give commercial, personal and financial support to producers and consumers. Over the last few decades this sector has become very important in the world economy both for employment and for the production of national income 2. In developed countries more than 70% of the workforce work in this sector.

The supply chain The three sectors form a chain of production from the extraction of raw materials to the supply of finished goods or services to the customer. This is known as the supply chain. The supply chain includes all of the organisations, people, activities, information and resources involved in moving a product or service from a supplier to a customer. A typical supply chain would involve raw material/component suppliers, manufacturers, transport and storage companies, advertisers, retailers and customers. The sectors of production are interdependent because companies from one sector rely on the other sectors for various aspects of their business. A manufacturer needs components and raw materials, for example, and a distribution company relies on the need for manufacturers to transport their products. 68

SUPPLIER

MANUFACTURER

STORAGE

ADVERTISER

TRANSPORT

RETAILER

CUSTOMER

Business background

1

ACTIVITIES 1

Read ‘The three sectors of production’ on page 68 and tick (✓) the statements T (true) or F (false). Correct any false statements. 1 Primary production uses raw materials to make finished products. T 2 The raw materials are extracted from the land only. T 3 The construction industry is an example of primary production. T 4 The secondary sector concentrates on processing raw materials into finished goods. T 5 Manufacturing industries form part of the secondary sector of production. T 6 Farming is a good example of secondary production. T 7 The tertiary sector provides services such as transport and storage. T 8 The tertiary sector is uncommon in developed countries. T

2

Read page 68 and find the English equivalents of the following: 1 materie prime 4 catena di approvigionamento 2 industria estrattiva 5 fornitore 3 prodotti finiti 6 azienda di stoccaggio delle merci.

3

What sectors of production do these people work in? Ex. miner ➝ primary sector 1 carpenter 5 cheese producer 2 builder 6 assembly line worker 3 coffee grower 7 market research assistant 4 website designer 8 shop assistant

4

Work in pairs. Match companies and products/services. Decide which branch of production the companies belong to.

5

a

b

c

d

e

f

g

h

1

clothing

5

technology

2

transport

6

pasta

3

oil

7

electronics

4

communication

8

finance and banking

F F F F F F F F

Read ‘The supply chain’ again and answer the questions. 1 What is the supply chain? 2 What type of people and organisations are involved in a typical supply chain? 3 Why are the three sectors of production interdependent? 69

BUSINESS THEORY

Commerce Commerce refers to the distribution and sale of goods. It can be divided into two areas: • Trade, which is the activity of buying and selling goods for money. Trade within a single country is known as home trade; trade between different countries is called international trade. • Services to trade, such as warehousing, transport, banking, insurance, technological support, communication and marketing. These services make the exchange of goods possible.

Home trade Home trade relates to the sale and distribution of products from the producer to the consumers in the same country. Wholesalers 2 and retailers 3 are an important link in the chain of distribution.  1

1 home trade: commercio interno 2 wholesaler: grossista 3 retailer: dettagliante 4 in bulk: all’ingrosso

Wholesalers

Retailers

Wholesalers buy goods in bulk 4 at cost price from manufacturers, and sell them in smaller quantities at wholesale price to retailers.

Retailers buy products from wholesalers or manufacturers and sell them in small quantities at retail price to consumers. Many different sorts of retailers exist. These include small independent retailers often specialised in one product; chain stores which have at least ten shops throughout the country; supermarkets and hypermarkets; designer outlets which sell surplus designer products at reduced prices; and even ‘pop-up shops’ which usually only remain open for a month or two. In Italy Lindt opens temporary pop-up chocolate shops for Christmas and Easter because these are the periods when it sells the most chocolate products.

ACTIVITIES 1

Read the first paragraph on this page and complete the chart. wholesale home trade ......................... (3) ......................... (1) import ......................... (2) export COMMERCE warehousing transport SERVICES TO ......................... (4)

......................... (5) insurance technological support ......................... (6) ......................... (7)

70

Business background

1

E-commerce – cutting out the ‘middle man’ The traditional supply chain has been changing over recent years. The growth of online shopping is creating a change in the way producers think about distributing their products. Many of them are trying to cut out the ‘middle man’ (the wholesaler or retailer) and sell their products directly to the consumer via the Internet. Producers state that selling directly gives them more autonomy and enables them to understand their target market better. In addition they can lower their prices and increase their profit margins. Even so, they still face a number of problems. The first of these is that a lot of shoppers want the convenience of being able to do all their shopping in one place, as in a supermarket, instead of having to visit a lot of different suppliers online to place their orders. In addition they want all the products they order to arrive together at a convenient time. At the moment some producers are working closely with e-business sites such as Amazon to try to overcome these problems. If they do, then the ‘middle man’ may eventually become an endangered species!

ACTIVITIES 2

Read page 70 and answer the questions. 1 What does the term commerce refer to? 2 What is trade? 3 What is the difference between home and international trade? 4 What is the difference between a wholesaler and a retailer? 5 What are the most common types of retailer today? 6 How is e-commerce effecting the supply chain? 7 What do producers like about e-commerce? 8 What problems do they still face?

3

Fill in the gaps in the diagram below. PRODUCER/MANUFACTURER

WHOLESALER

RETAILER

Sells in large quantities at

Sells in .................... (2)

Sells individually

.................... (1)

quantities at .................... (3)

at .................... (4) price,

price, say €5 each.

price, say €5,50 each.

say €6 each.

CONSUMER

4

Work in small groups. Compare independent retailers with hypermarkets. Make a list of the advantages and disadvantages of each for consumers. Then discuss your list with the class. 71

BUSINESS THEORY Companion Book, p. 26

Companion Book, p. 26

International trade The exchange of goods and services across international boundaries or territories is called international trade. In most countries, it represents a significant share of the Gross Domestic Product (GDP), that is the total value of goods and services produced in a country. International trade takes place for three reasons. • Some products can only be produced in particular places. Oil, for example, can only be extracted from certain places in the world. • Some products are cheaper to produce in certain countries than others. For example, shoes produced in China are much cheaper than shoes produced in the UK or Italy. • Foreign firms may produce higher quality products at more competitive prices, so customers choose to buy them from abroad. Depending on what a country produces or needs, it can either export (sell goods or services abroad) or import (buy goods and services from other countries).

Companion Book, p. 6

PROTECTIONISM Governments sometimes restrict the amount of imports into a country. This action is known as protectionism. These are the most common types of protective measures:  Tariffs  1 are taxes on imports which make foreign goods more expensive and less competitive than home-produced products. Revenues from the taxes are collected by the home government.  Quotas 2 put a legal limit on the amount of a product that can be imported. This creates shortages which causes prices to rise. Quotas benefit home producers in the same way as tariffs do, but the additional money spent on foreign goods goes to the foreign producers, not the home government.

1 tariff: tariffa doganale 2 quota: quota, contingente 3 subsidy: sussidio 4 embargo: embargo

 Subsidies 3 are payments made by governments to the home producers to enable them to lower their prices and be more competitive when compared with the prices of imported goods. Taxpayers bear the costs of subsidies.  Embargoes  4 are total or partial trade bans that governments impose on certain countries or on the export of specific goods at certain times. They are imposed for political or military reasons.

Artisan shoe production in Italy.

Mass production of shoes in a Chinese factory.

Business background

ACTIVITIES 1

Read ‘International trade’ on page 72 and answer the questions. 1 What is international trade? 2 Why is it important? 3 What is the GDP? 4 Why do countries import goods from other countries?

2

Read page 72 and write definitions for the following: 1 imports 2 exports

3a

3 protectionism.

Listen to a news report about international trade figures and complete the bar chart with the missing numbers. INTERNATIONAL EXPORT AND IMPORT OF GOODS BY REGION (in trillion dollars) 8.81 ............ (1)

Europe

............ (2) 7.09

Asia

3.18

North America Central & South America Africa

b

............ (3) 0.968 ............ (4) 0.69 ............ (5)

Export Import

Look at the bar chart and answer the questions. 1 Which areas of the world import less than they export? 2 Which areas of the world import more than they export?

4

Read ‘Protectionism’ on page 72 and correct the statements. 1 Importers are always free to buy products from other countries. 2 When tariffs are applied, home-produced goods are more expensive. 3 Quotas are applied to reduce exports. 4 Subsidies are given to foreign industries to improve their competitive position. 5 Embargoes are imposed by traders.

5

Give reasons why a government may decide to restrict imports into its country. List the problems it may face if it decides to do this.

6

Work in groups. Discuss and make a list of: • goods and services for which Italy is a leading exporter • goods and services which can be produced at a reasonable cost in Italy because of the climate • goods and services that Italy cannot produce and has to import.

1

BUSINESS THEORY

MEDIA FILE

Europe fears ‘uncontrolled protectionism’ as emerging markets turn against free trade The European Commission has warned of uncontrolled protectionism across the world as emerging markets defend their economies. According to the Commission, abuses by Russia, Brazil, India, Argentina and other key states pose a growing threat to global recovery  1. Over the last year 154 new tariffs and restrictive measures have been introduced around the world, while virtually none has been abolished. This violates a promise by the G20 bloc of leading powers to remove barriers before they become embedded 2 in the global system.

1 recovery: ripresa 2 embedded: incorporato 3 offender: trasgressore

‘It is a striking phenomenon. Protectionism is now a significant threat to global growth,’ said trade EU commissioner Karel de Gucht. The Commission’s report listed Argentina, Brazil, India, Indonesia, Russia and South Africa as top offenders 3. Brazil raised tariffs on 100 sectors last October to defend its declining industrial base, with fees of up to 25% on machinery, iron and steel, plastics, chemicals, paper and wood products. The country also offered tax concessions and other incentives for home producers. Argentina imposed tariffs of up to 35% at the start of the year to lessen a financial crisis, and Indonesia’s food law prohibits food imports unless absolutely necessary.

ACTIVITIES 1

Read the title and the first paragraph of the article and answer the questions. 1 What is the European Commission worried about? 2 Why are emerging markets posing a threat to global recovery? 3 How many new tariffs were introduced last year? 4 What did the G20 bloc of leading powers promise?

2

74

Listen to and read the article and find the following: 1 six countries that introduced tariffs and restrictive measures over the past year 2 two measures taken by Brazil last October 3 the reason why Argentina imposed tariffs 4 a law related to imports in Indonesia 5 the reasons why some experts think the G20 group is not effective in controlling protectionist measures.

TARIFFS AND RESTRICTIVE MEASURES AROUND THE WORLD 140

TOTAL MEASURES PER COUNTRY (OCT. 2008-JUNE 2013)

120

TOTAL NEW MEASURES PER COUNTRY (MAY 2012-JUNE 2013)

100 80 60 40 20 0 Vietnam

USA

Ukraine

Turkey

Thailand

Taiwan

Switzerland

South Korea

South Africa

Saudi Arabia

Russia

Philippines

Paraguay

Pakistan

Nigeria

Mexico

Malaysia

Kazakhstan

Japan

Indonesia

India

Hong Kong

Egypt

Ecuador

China

Canada

Brazil

Belarus

Australia

Argentina

Algeria

The Commission said the phenomenon was alarming. Countries are doing everything they can to keep goods and services out and the protectionist measures are often applied without pre-warning for businesses. Consignments of imports often end up blocked in customs entry points and warehouses and non-durable goods can lose their entire market value when this happens. Some economic experts think that the G20 is unlikely to be effective in controlling protectionist measures. Although the trade bloc controls 85% of the global GDP, it has no permanent staff and a lot of conflicting views and opinions. ‘The group is too large and disparate to function as an effective decision-making body, and it has no means of enforcing any decisions which it does make,’ said Neil Sharing from Capital Economics. (Source: The Telegraph)

3

Translate these sentences from the article into Italian. 1 Protectionism is now a significant threat to global growth. 2 Argentina imposed tariffs of up to 35% at the start of the year to lessen a financial crisis. 3 Some economic experts think that the G20 is unlikely to be effective in controlling protectionist measures.

4

Look at the graph and answer the questions. 1 What countries apply the most trade restrictions? 2 What countries increased their trade restrictions the most between 2012 and 2013?

5

Prepare a speech summarising the text. Include information about the following points: • reasons why Europe is worried about protectionist measures by emerging countries • protectionist measures adopted by some emerging countries • reasons why the G20 isn’t effective in controlling protectionist measures. 75

BUSINESS LANGUAGE

Requesting (1) You can ask for things in different ways. It is possible to use: • an order • a direct question • a polite request

(Please) let us know your arrival time. Do you know your arrival time? Would you please let us know your arrival time?

In business, polite requests are the most commonly used method of asking for things. They are simply questions which start with a polite phrase such as Could you possibly…? or Would you please…? which introduces the request. Requests can be made for information or action. Each has a slightly different grammatical structure.

Requests for information: form In the request part of the question remember to use the statement word order, i.e. subject + verb. YES: Could you tell me when you can come? NO: Could you tell me when can you come?

1 When a yes/no answer is required: polite introduction + if/whether + request Could you tell me/us if you can host the meeting? Would you let us know whether this date is possible? 2 When specific information is required: polite introduction + question word (who, where, which, when, what, why, how) + request Could you tell me when you can visit our plant? Would you let us know which date is possible?

Requests for action: form The verb tell can be replaced by a verb or phrase with a similar meaning, e.g. let us know. Can you let us know what time Mrs Jones is arriving?

polite introduction + request Would you (please) reply as soon as possible? Could you (possibly) confirm your reservation by fax?

The polite introduction The phrases below can all be used to introduce a request. They are listed in order from informal (Can you…?) to formal.

76

Requesting information

Requesting action

Can you tell me/us…? Will you tell me/us…? Could/Would you (please) tell me/us…? We would like to know…

Can you…? Will you…? Could/Would you (please)…? We would like you to…

Business background

1

ACTIVITIES 1

2

Which of the requests below are requesting information (I) and which action (A)? 1 Could you let us know your opinion regarding the merits of this proposal? 2 Would you please complete this evaluation questionnaire? 3 Can you tell Mr Brown that I’ll be late? 4 Will you please tell us how you would like us to proceed? 5 We would like to know when it would be convenient for our Sales Representative to visit you. 6 Could you please tell Mr Grant I’m ready now? Rewrite these questions and orders as polite requests. Start with the words given.

a

b

3

4

Ex. You want a colleague to photocopy a fax for you. Will you photocopy this fax for me? 1 You want to know the price of a return train ticket from London to Manchester. 2 You want your secretary to go to reception to meet a client (Mr Reed). 3 You want to know if a company has a website. 4 You want a computer technician to come and repair your computer. 5 You want a friend to pass you a pen.

5

TRANSLATION Translate the requests in ex. 2 into Italian.

Underline the mistakes in these requests. Then rewrite the sentences correctly. Ex. Can you tell me when are you next in the office? Can you tell me when you are next in the office?

Requesting information Ex. What’s the time? Can you tell me what the time is? 1 Is the 19th a suitable date for delivery? Would you ........................................ ? 2 Is this offer acceptable? Could you let us know ...................... ? 3 Tell me what progress you’ve made this month. Will ................................................... ? 4 Tell us the best way to arrive by car. We’d like to know ............................... . Requesting action Ex. Pass me the report. Will you pass me the report? 1 Send us a copy of this month’s work schedule. Could ............................................... ? 2 Spell your surname, please. Can you ............................................ ? 3 Please sign the document here. Would you please ............................. ? 4 Give this message to Sheila. I’d like ................................................ .

What would you say or write in these situations?

1 Would you please to tell Ms Harper I’m busy? ................................................................. 2 Could you let us know when is the conference? ................................................................. 3 Can you tell me what is the date? ................................................................. 4 Could you please to reserve three double rooms? ................................................................. 5 Would you let us to know your arrival date? .................................................................

6

TRANSLATION Translate these requests into English. 1 Mi può dire in quale data sarà l’esame? 2 Può portare questa lettera al Signor White? 3 Mi dici dov’è la stampante? 4 Puoi scrivere una e-mail in risposta a questo fax? 5 Sarebbe così gentile da fissarmi un appuntamento con il Dott. Rossi? 77

BUSINESS LANGUAGE

Offering When you make an offer you can • Would you like...? is more polite than Do you want…? • Although offers are questions, the indefinite adjective/pronoun some is used instead of any. YES: Would you like some water? NO: Would you like any water?

In English the correct affirmative response to an offer is Yes, please (NOT Yes, thank you).

Could is the most formal of the four modals.

• offer something, for example: – a coffee: Would you like a cup of coffee? – a copy of a report Do you want a copy?

• offer to do something, for example: – type a letter Do you want me to type this letter? – call a taxi Shall I call you a taxi?

Offering things: form offers

replies

Do you want Would you like

+ a/some

+ noun?

Do you want Would you like

a some

cup of coffee? coffee/water?

Negative No, thank you.

Offering to do things: form offers 1 Can I/we Shall I/we Should I/we Could I/we

replies

+ offer

Can I help you? Shall I phone the office (for you)? Should I call the airport for you? Could we forward details of our special offers? 2 Do you want me to Would you like me to

+ offer

Do you want me to take the minutes of the meeting? Would you like us to send you an estimate? 3 I’ll/We’ll

+ offer

I’ll pick you up from the station. We’ll send you a copy of our catalogue.

Can I help you?

78

Positive Yes, please.

Positive Yes, please. Thank you, that’s (very) kind of you. Negative No, I’m/it’s ok, thanks. Thank you, but + excuse That’s very kind of you, but + excuse

Positive That’s (very) kind of you. Negative That’s ok, don’t worry.

Business background

1

ACTIVITIES 1

2

3

Which of the sentences below are offers (✓) and which are not (✗)? 1 Should we organise the insurance cover for you? 2 Would you like to travel overseas more? 3 Do you want some tea? 4 Shall we go to the presentation? 5 Would you like us to contact the shipping company for you? 6 Can I help you prepare the report? 7 Could I speak to Ms Wright, please? 8 We’ll provide coffee and sandwiches during the meeting. Offering things. Use the prompts to write short dialogues. Use an appropriate level of formality. Ex. (Two colleagues) cup of tea? / No A: Do you want a cup of tea? B: No, thanks. 1 (secretary to manager) a photocopy of the letter? / No Secretary: ................................................ Manager: .................................................. 2 (bank manager to customer) a monthly statement? / Yes Bank Manager: ........................................ Customer: ................................................ 3 (two friends) coffee? / Yes A: ............................................................... B: ............................................................... 4 (waiter to customer) a dessert? / No Waiter: ...................................................... Customer: ................................................ Offer to do the things listed below. Start with the words given. Ex. type the minutes of the meeting Do you want me to type the minutes of the meeting? 1 go to the bank for you I’ll .............................................................. . 2 reply to the letter from Mr Thompson Would ....................................................... . 3 make some coffee Shall ......................................................... . 4 help you carry those boxes Could ....................................................... .

5 check the flight times Should ...................................................... . 6 book a table at the usual restaurant Do ............................................................ . 7 do the photocopying for you Can .......................................................... .

4

TRANSLATION Translate the offers in ex. 3 into Italian.

5

Complete the conversations with the missing words and phrases. Sometimes more than one word may be possible. 1 (in a meeting) A: Fine. I think that’s everything. Would ..................................... call you a taxi? B: ............................... of you, but I came by car. 2 (at a train station) A: ................................. carry your case for you? B: No, ......................................... . I can manage. 3 (at reception) A: ............................ like ........................... coffee? B: Yes, ................................ . That’s very kind of you. 4 (on the phone) A: ....................................... give Mrs Harding the message? B: Thank you. That’s .......................................... . 5 (in an office) A: I can see you’re busy, Kate. Do ........................................ do the post for you? B: No, .................................. . I’ll do it tomorrow.

6

TRANSLATION Translate these offers into English. 1 Desidera che mandi una e-mail al Signor White? 2 Vuoi una copia del nuovo catalogo? 3 Vado io a comperare il giornale. 4 Vuole che chiami la sua segretaria, Sig. Ross? 5 Desidera che l’accompagni all’aeroporto, Signora? 6 Posso esserle di aiuto? 7 Faccio io le fotocopie per tutto il gruppo. 8 Veniamo noi a prendervi alla stazione. 9 Devo spedire questo pacco per lei, Sig. Flynn? 10 Vuole che le prenoti una singola all’Hotel Palace? 79

BUSINESS LANGUAGE

Trends: basic language Describing the direction of a trend

Trends can be:

upward

horizontal

downward

The direction of a trend over a period of time can be described using a variety of verbs and nouns. upward Verb

Noun

to increase to rise to go/be up to boom 1 to improve

an increase a rise ✗ a boom 1 an improvement

downward

horizontal Verb to remain to stable

Noun stability

Verb

Noun

to decrease

a decrease

to fall to go/be down to slump 2 to decline

a fall ✗ a slump 2 a decline

1 To boom/a boom is used to refer to a very rapid upward movement. 2 To slump/a slump is used to refer to a very rapid downward movement.

ACTIVITIES 1

Complete the description of each trend by ticking (✓) the most appropriate word or phrase from the alternatives given.

1 Exports There was a

€m

slump boom decline in exports in 2014.

2 Market share The market share has

2011 2012 2013 2014

%

fallen. remained stable. risen.

80

3 Unemployment rate The rate of unemployment went up fell slumped by 4% between 2011 and 2014. 4 Stock price So far this year, there has been a decline a slump a rise of the price of FIAT/ HSBC shares.

% 8 4

2011 2012 2013 2014

$ 40 30 20 I

II

Business background

1

Describing the extension of a trend We can talk about the extent of a trend by: 1 describing the difference between two points verb + by + number Productivity has risen by 5% this year. noun + of + number There has been a rise of 5% in productivity this year. 2 describing the end point verb + to + number noun + to + number

Our profit fell to £50 million last year. There was a fall in profit to £50 million last year.

ACTIVITIES 1

Complete the description of each trend with the appropriate preposition. 1 Manufacturing operating costs

3 Imports (%) $m

$m

8

6

7.9

7 6

4

5

5.4

4 2

2011 2012 2013 2014

2013 2014

Manufacturing operating costs rose ................................... $5 m in 2014.

There was a fall ................................... 2.5% in imports in 2014.

2 Productivity (% change)

4 % of teenagers who play online games

%

%

10

82 66 53

5

0

2002 2009 2014

2011 2012 2013 2014

Productivity went down ................................... 5% in 2014.

2

The percentage of teenagers who play online games rose ................................... 82% in 2014.

Describe the direction and extent of the trends illustrated in the graph below. Turnover mill. €

Between 2010 and 2014 the turnover ...................................

30

.............................................................................................. ..............................................................................................

20

..............................................................................................

10

.............................................................................................. ............................................................................................ . 2010 2011 2012 2013 2014

81

BUSINESS COMMUNICATION

Methods of communication Good communication is vital for all companies both for internal procedures and external contacts. There are three main methods of communication: oral, visual and written.

Oral communication 1

2

Listen to the recordings and number the methods of oral communication in the order that you hear them. Use the blank boxes below.

Meeting

Presentation

Phone conversation

Interview

Read the text about telephone conversations and complete it with the missing headings. Confidentiality • Interaction • Speed of response • Effective communication TELEPHONE CONVERSATIONS Although a lot of business communication today is carried out digitally – via e-mails, texting and social media – telephoning is still an important business component. A telephone call connects the caller with a human voice, which can be very beneficial in an increasingly impersonal environment. Some of the benefits include: ........................................ (1) On the telephone, the tone of a person’s voice gives dimension and emotion to the words spoken, increasing the effectiveness of communication. Written communication, such as texting and e-mails don’t have this extra dimension and can be more easily misinterpreted. ........................................ (2) Telephone calls are the best way to deal with sensitive or confidential issues. Without the opportunity of two-way communication, sensitive issues may be misinterpreted. In addition the fact that you take the time to make a call, can have more of an effect than sending an impersonal e-mail or text message. ........................................ (3) If you need a quick answer a telephone call is often better than an e-mail. As long as the person you called is available, you can often take care of business immediately. ........................................ (4) Conference calls enable several people from different areas to take part in a single phone conversation. They can be used in conjunction with video conferencing to view business presentations and hold meetings.

82

Business background

3

1

Listen and complete the telephone conversations with the words and phrases given. of course • Can I help you? • through • goodbye • leave a message • in the office • call back • speaking • I’d like • My name’s • Could you

1

Receiver: Good afternoon. Abbott Estate Agency. ........................... (1) Caller: Hello. It’s Kevin Winston here. Could I speak to Gemma Fawkes, please? Receiver: I’m sorry, Gemma isn’t ........................... (2) at the moment. Would you like to ........................... (3)? Caller: Yes, please. Could you tell her that I won’t be able to meet her at 3pm tomorrow. I’m afraid I have another appointment. Receiver: Yes, ........................... (4). I’ll do that. Caller: That’s great. Thank you. Receiver: Ok, goodbye then. Caller: Thank you. ........................... (5) 2

Receiver: Hello. GBS Electricals. Caller: Hello. ........................... (6) Jan Wilson. Can I speak to Harry Smith, please? Receiver: Yes, ........................... (7). How can I help you? Caller: I’m calling because I’ve got an electrical problem in my shop. It’s quite urgent. ........................... (8) possibly come and look at it today? Receiver: Yes, this afternoon should be possible. I’ll need some details. One moment while I get a pen… 3

Receiver: Good morning. Micromax Ltd. Caller: Hello. ........................... (9) the Customer Service Department, please. Receiver: Certainly. I’ll put you ........................... busy at the moment.

(10).

Um… I’m afraid the line’s

Caller: That’s no problem. I’ll ........................... (11) later. Receiver: Ok, thank you. Goodbye. Caller: Goodbye.

4

Read the dialogues in ex. 3 and find the appropriate phrases for the functions below. 1 offer to help someone: ............................................................................................. 2 ask to speak to someone: ....................................................................................... 3 confirm that you are the person the caller wants to speak to: ................................... 4 say you will transfer a call: ....................................................................................... 5 ask if someone wants to leave a message: .............................................................. 6 say that you will call again in the day: ....................................................................... 83

BUSINESS COMMUNICATION

Key language: starting and ending telephone calls STARTING A PHONE CALL Receiver: Good (afternoon). Can I help you?

Caller: Hello. It’s / My name’s (Jan Reed).

ASKING TO SPEAK TO SOMEONE C: Can / Could I speak to (John Watson), please?

R: Yes, speaking. R: I’m sorry he / she isn’t in the office at the moment.

C: I’d like (the Accounts Department), please.

R: Certainly. I’ll put you through.

LEAVING A MESSAGE R: Would you like to leave a message?

C: Yes, please. Could you tell...? C: No, thanks. I’ll call back later.

SAYING GOODBYE R: Goodbye then. Thank you for calling.

1

C: Thank you. Goodbye.

Work in pairs. Write dialogues following the guidelines. Use the phrases from the box above. Add any missing information. 1 Richard Blake, a Sales Manager for Dyson Ltd, telephones the Head Office of a company in Wiltshire and asks for the Human Resources Department. The operator puts him through. ......................................................................................................................... Operator: Richard Blake: ......................................................................................................................... Operator: ......................................................................................................................... Richard Blake: ......................................................................................................................... 2 Ellie Carter telephones Endsleigh Insurance and asks to speak to Ralph Whittaker. Mr Whittaker has gone out to lunch and won’t be back until 3pm. Ellie Carter says that she will call him back later and then ends the call. ......................................................................................................................... Ellie Carter: Endsleigh Ins.: ......................................................................................................................... Ellie Carter: ......................................................................................................................... Endsleigh Ins.: ......................................................................................................................... Ellie Carter: ......................................................................................................................... 3 Kyle Watson, a university administrator, phones a student, Liam Lewis. Liam isn’t at home and his mother answers the phone and takes a message. Kyle wants Liam to call him back as soon as possible. ......................................................................................................................... Mrs Lewis: Kyle Watson: ......................................................................................................................... Mrs Lewis: ......................................................................................................................... Kyle Watson: ......................................................................................................................... Mrs Lewis: ......................................................................................................................... Kyle Watson: .........................................................................................................................

84

Business background

1

Visual communication Visual communication uses pictures and graphs to convey ideas and information in a simple and immediate format. Visual aids are often used in business presentations to help the audience understand the topic being presented. Statistical facts are usually illustrated on tables and graphs. Here are some of the most common types. ITALY: SOCIAL MEDIA USE – JAN. 2014

WARS IN THE WORLD 50

Number of conflicts

44 41

Any social network

92% 61%

Facebook

83% 49% 53%

40 Google+

32

Twitter

30

26

20 1996

Linkedin Instagram

2000

2005

2014

1 ............................................................. SHARE OF ENERGY DEMAND BY FUEL TYPE

16% 41% 15% 24% 9% 17% 8%

Own an account Used in the past month

2 ............................................................. WASTE COLLECTION IN ITALY Percentage of separate collection on total urban solid waste

Renewables 14%

Glass

Petroleum 32% Total

Nuclear 9%

Separate collection

874.9

1,700.0

Paper

Coal 20% Natural gas 25%

3 ............................................................. FINDING THE RIGHT SOLUTION FOR YOUR PURCHASING NEEDS Discussing need

Finding product

Finding suppliers

Requesting quotations

Purchasing decision

Arranging shipping + customs

5 .............................................................

1

Label each graph with the appropriate heading. Choose from: bar chart • pie chart • pictogram • table • graph • flowchart

2

Which graph(s) would you use to: 1 illustrate the trend in sales over a number of years 2 illustrate the percentage of the population with Internet access 3 illustrate the main steps in an automated assembly line.

1,567.8

3,068.9

4 ............................................................. DAILY INTERNET ACTIVITIES (AMERICAN ADULTS) Send or read e-mails

45%

Use a search engine

40%

Get news

30%

Bank online

18%

Watch a video

15%

Buy a product

5%

6 .............................................................

3

Work in pairs. Carry out a short survey in your class. Find out: • the reasons why students go online • the number of hours they spend online every day • the device (phone, laptop, etc.) they usually use to connect to the Internet. Illustrate the results with graphs of your choice. Compare and discuss your representation with the rest of the class. 85

BUSINESS COMMUNICATION

Written communication

Companion Book, p. 78

In today’s global market, companies need to transfer information quickly and accurately to all parts of the world and receive immediate feedback. In the past they relied on the fax machine to do this, but new technologies and the Internet have revolutionised methods of business communication. Text messages and electronic mail (e-mail) have almost substituted faxes and traditional business letters sent by post. A lot of companies also use social networks, such as Facebook, Twitter and Linkedin, to carry out market research, promote and sell their products, build up networks of contacts and recruit staff. TEXT MESSAGES (SMS)

ARRVL = arrival ASAP = as soon as possible CFM = confirm CU = see you! EST = estimated FYI = for your information LMK = let me know PLS = please RU = Are you...? TBC = to be confirmed TM = time TXS = thanks W8 = wait 2NITE = tonight 4 = for

1

Text messages are a quick way of informally transmitting a short and simple message. The term ‘texting’ is used in North America and the UK, while most other countries prefer the term ‘SMS’ (Short Message Service). Today most business texts are sent via a smartphone app called WhatsApp. WhatsApp is a mobile messaging app that allows you to exchange messages without having to pay. The name comes from the English expression ‘What’s up?’. In addition to text messaging, users can send pictures, video and audio messages. The company, WhatsApp Inc, is a fairly new startup company based in Silicon Valley. It was founded in 2009 and it has grown phenomenally over the last few years. In April 2014 WhatsApp had over 500 million active users and handled over 10 billion messages every day. People often abbreviate words when writing text messages. Here on the left are a few of the most popular abbreviations in English.

Read this page and answer the questions. How have methods of communication changed in business over recent years? What social networks do companies use? What for? What is the Italian equivalent of the term ‘texting’? What is WhatsApp? What sort of company is it?

1 2 3 4

2 3

Write these text messages out in full. 1 PLS CFM YOUR EST ARRVL TM TXS

2 ARRVL 2NITE AT 2 CAN U W8 4 ME? LMK

Work in pairs. Ask and answer these questions. • How many text messages do you send or receive every day? • Do you ever send e-mails? What for? • How many social networks do you use regularly?

86

Business background

1

E-MAIL

E-mail (electronic mail) has become an almost indispensable tool for business. It is a simple, fast and inexpensive way to communicate. It saves paper and also reduces administrative tasks, such as filing. Although e-mails can be printed, they often stay as soft copies because it is easy to store and retrieve them on the computer. Everyone who is connected to the Internet has an e-mail address. This identifies where the messages will be sent. Here is an imaginary e-mail address: at

country code

chiara.carpegna @ ilmelograno.it name of Internet user

Internet domain name (an organisation’s unique name on the Internet)

New Message

Heading

From

[email protected]

• the e-mail address of the sender

To

[email protected]

Opening salutation

Cc

[email protected]

• the e-mail address of the receiver

Here are some possible opening salutations.

Date

Wednesday, 6 December 20.. 9:44

• date and time of posting

Subject

Your letter

• summary of message contents

• courtesy copy

• Dear Mr/Ms Barker (formal)

Dear Marta,

• Dear Tom (friendly, but businesslike)

Thanks for your e-mail. I’ve checked the flight times and can confirm our arrival tomorrow at 2pm. Thank you for offering to meet us at the airport.

• Hello/Hi Tom (informal and friendly)

All the best

Closing salutation

John

Here are some common closing salutations.

1

2

Body

• Sincerely (formal)

Look quickly at the e-mail and find: 1 the names of 3 Internet servers 4 the subject of the e-mail 2 the full name of the person who 5 the closing salutation sent the message 6 the reason for writing the e-mail. 3 the country code of the receiver

• Regards/Best regards (friendly, but businesslike) • All the best (informal and friendly) • Talk to you later (informal and friendly)

Read the advert and write an e-mail asking for a printed brochure about the hotel.

K west

★★★★

An award winning fabulous spa

HOTEL & SPA

New York For info contact: [email protected]

87

BUSINESS COMMUNICATION Companion Book, p. 67

E-mail has a lot of advantages compared to regular business letters. It also has a number of disadvantages, however, which need to be carefully considered when choosing an appropriate method of communication.

PROS

CONS

• E-mail is fast and easy. The message can reach any part of the world quickly.

• Messages cannot reach people who do not have an e-mail address.

• Documents, photographs and data files can be attached.

• Some people change their e-mail addresses often and you may not have an up to date address.

• The message can be sent at any time of the day and from any place using different technological devices.

• You can get a lot of junk mail/spam that you haven’t asked to receive.

• E-mail is cheap and the same message can be sent to a lot of people all over the world.

• You never know who may read the message. Your e-mails may be intercepted without you knowing.

• The message can be dealt with when it is convenient for the receiver.

• Unless you specifically ask for confirmation of receipt, you don’t know if the receiver gets the message until he or she writes back.

• E-mail messages are easily stored.

• E-mails can be infected by viruses.

1

88

Read about e-mail pros and cons and answer the questions. 1 What can be enclosed with e-mails? 2 Why are e-mails faster than business letters? 3 What is junk mail? 4 Why don’t e-mails offer the same privacy as business letters? 5 Why is it sometimes difficult to reach people by e-mail? 6 How do you know if the receiver has received your e-mail? 7 What sort of dangers are connected to the use of e-mails? 8 What is in your opinion the biggest advantage for e-mails? And the biggest disadvantage?

Business background

Business e-mail netiquette Netiquette is the network etiquette which keeps e-mail communication both effective and efficient. Here are some helpful tips and practices.

DOS • Be aware of what you write and how you write it. Make sure that sentences are complete, and include proper grammar and punctuation. This goes for Twitter and Facebook too. • Include a proper greeting and a closing which includes your name. • Send messages which are precise and to the point. • Include a subject heading that reflects the content of the message. • Include your e-mail address within any file you send. It’s a courtesy and serves the same function as the return address at the top of a business letter. • Check and read your work mail at least twice a day, in the morning and in the evening.

1

Companion Book, p. 66

DON’TS • Type your note entirely in capital letters. It is considered to be rude. Capitals may be used in moderation to emphasise a point. • Send useless e-mail messages. In other words, don’t waste other people’s time. • Attach a file when a simple note would do. Saving and opening files takes time. • Just assume that your correspondent is being lazy if he or she doesn’t reply to your e-mail. Check whether your message arrived. • Be too informal in your business e-mail. if you are very informal when you e-mail a new customer, your inquiry may not be taken as seriously.

• Respond to your business communications promptly, as quickly as possible.

1

Read the e-mail message below and correct the mistakes according to the netiquette rules above.

2

Rewrite the e-mail following the netiquette rules. New Message From

[email protected]

To

[email protected]

Cc Date

Tuesday, 15 June 20.. 10:20

Subject Hi! WHY AREN’T YOU ANSWERING MY E-MAILS? I’ve written to you several times, but I got no answer back. What’s wrong? Write back soon. Bye, Ben

89

BUSINESS COMMUNICATION BUSINESS LETTERS

Traditional formal letters are still used sometimes in business, particularly when the message is personal and private; companies wish to establish a first contact with prospective customers or when original documents, not copies must be sent. The body of a business letter is similar to the body of an e-mail or fax, but the layout is different.

Letterhead/Heading

London Cycle Ltd

References

Your Ref: AR/nh – 29 May 20.. Our Ref: JB/vp

Date

2nd June 20..

Inside address

CT Bycicles 31, George Street Edinburgh EH2 2PH

Attention line

Att: Mr Alex Rose

Opening salutation

Dear Mr Rose,

Subject line

Colour Brochure

35, Lavender Gardens, Battersea, London, SW11 1DJ Tel: 0871 999 2000-1 – Fax: 0871 999 202 www.londoncycle.co.uk [email protected] – VAT 455 987154 Registered No. 978629 VAT Reg. No: GB471 52511

Many thanks for your enquiry of 29th May. Body of the letter

Please find enclosed our latest colour brochure and price list. We are sure you will find something to suit your needs among our wide range of models. You will also note that our prices are the most competitive on the market. Please do not hesitate to contact us, should you need any further information about our articles and conditions of sale.

Closing salutation

Yours sincerely, Opening and closing salutations:

90

Signature

John Bates Sales Manager

Dear Sirs/Dear Sir Dear Sir/Madam

• Yours faithfully (UK) • Yours truly (USA)

Enclosure

Enc.: 2

Dear Mr Brown Dear Ms Lee

• Yours sincerely (UK) • Yours cordially (USA)

Gentlemen: (USA)

• Yours (very) truly

Dear Mark

1

• Regards The body of the letter below has been mixed Dear Jane up. Number the parts correctly. Please confirm receipt of this letter giving an outline of your suggested arrangements. This is to inform you that I will be flying to Milan on flight BA 543 scheduled to arrive at Linate on Monday 23rd April at 9.25am. Would you please meet me at the airport and make arrangements for me to visit your stand at the Trade Fair and to meet some of the most important retail dealers in your area.

2

Use the body of the letter in ex. 1 to write a complete business letter. Invent the missing data and add appropriate opening and closing salutations.

Business background

1

FAXES

A fax (short for ‘facsimile’, from the Latin fac simile, which means to make a copy) is a telecommunications technology used to transfer copies of documents over the telephone network using a fax machine. The fax technology has faced increasing competition from the Internet over recent years, however faxing has not disappeared completely. One of the reasons for this is because electronic signatures on contracts are not always recognised by law while faxed contracts with copies of signatures are. In addition, small suppliers and vendors sometimes prefer to continue to communicate via fax, rather than invest money in computerisation. Even so, today it is possible to send a fax to a remote fax machine via the Internet.

Toys & Toys 12 Colmore Row, Birmingham 3SD E-mail: info@t&t.co.uk

Tel: +44 0121 323 6200 Fax: +44 0121 323 6210

FAX MESSAGE DATE:

2nd December 20..

FROM:

Philip Wislet, Marketing Manager

TO:

Fiona Jessen, General Manager Toys&Toys Stodmarsh Rd, Canterbury, Kent CT2 2AP

FAX No.:

+44 01227 468759

SUBJECT:

Product publicity

NUMBER OF PAGES: 2 (including this page) Dear Fiona, Please find a copy of the article on our new wooden toys which appeared in the June edition of Toys magazine. Best regards, Philip Wislet

Fax 2nd 12 20..

Fax 16.24

Fax +44 0121 323 6210

Fax No. of pages 2

Fax

1

Before you read. Work in pairs and discuss the following. Then read the first paragraph and check your answers. Today business communication is usually carried out digitally and the use of fax machines is declining rapidly. • Why do you think fax machines are rarely used nowadays? • Why are fax machines still used sometimes in business?

2

Read the fax and answer the questions. 1 What is the name of the company sending the fax? 2 Where is the company based? 3 What does the company produce?

4 What’s the sender’s role in the company? 5 Who is he writing to? 6 How many pages is he sending?

91

BUSINESS COMPETENCE

Key vocabulary Production 1

Match terms and definitions. a physical objects that we can see and touch 1 basic needs b any goods or services 2 wants c non-physical products ranging from education to transport, 3 goods etc. 4 services d things which are essential for existence: food, water, shelter 5 products and clothes e things which are not really needed

Factors of production 2 • • • •

land enterprise labour capital

Complete the definitions with the terms given. 1 ................................... : the number of people available and willing to work. 2 ................................... : a resource which can be used for agriculture, the extraction of raw materials, housing development and leisure. 3 ................................... : the people who will take the risk of setting up in business. 4 ................................... : the money available for investment in new companies, machines and the assets (buildings, production facilities and equipment) that a company owns.

Sectors of production 3 • • • • • • • • • •

manufacturing financial services mining fishing commercial services construction personal services forestry farming processing

Complete the table with the missing types of industry. Sectors of production Primary production

Secondary production

Tertiary production

Type of product: raw materials

Type of product: finished goods

Type of product: services

Trade 4 • • • • •

home trade trade international trade exports imports 92

Complete the text with the terms given. ................................... (1) is the activity of buying and selling goods for money. ................................... (2) refers to trade within a single country, whereas ................................... (3) is the term used to define trade between different countries. A country’s ................................... (4) are the goods and services bought from foreign countries. The goods or services that are sold to other countries are called ................................... (5).

Business background

1

Business skills REPORT WRITING / DESCRIBING GRAPHS

1

Look at the graphs and write a paragraph about the GDP (Gross Domestic Product) in the UK. • describe the trend from 2012 to 2014 • describe what primary, secondary and tertiary industries contribute to the GDP • describe the labour force by occupation UK GDP (£ trillion) 1.398

2012

1.399

2013

1.425

2014

GDP by sector Services 78.9%

Labour force by occupation

Agriculture 0.6%

Industry 20.5%

Services 80.4%

Agriculture 1.4%

Industry 18.2%

(Source: UK Office for National Statistics / CIA World Fact Book)

2

Look for similar data relating to Italy and write a paragraph comparing the two countries.

TELEPHONING AND WRITING MESSAGES SPEAKING • Mr Stiller calls Barivex Ltd at 2.15pm to ask for an updated catalogue and price list. He wants to talk to the Sales Manager (Mr Paul Johnson). The operator says the Sales Manager is in a meeting and offers to take a message. Mr Stiller leaves a message with his phone number (01823 485001) and asks the Sales Manager to call him back as soon as possible. Write the phone call. WRITING • You are the phone operator. Complete the memo below with information for Mr Johnson.

INTERNAL MEMO Phone call: ........................................................................ Time: ................................................................................. For: .................................................................................... From: ................................................................................. Reason for call: ................................................................ Message: ..........................................................................

93

BUSINESS COMPETENCE

CASE STUDY

Into work

ALTERNANZA SCUOLA-LAVORO

5

The profits of a British oil company have fallen steadily in the last five years, as shown by the bar chart on the right. The newly-appointed CEO (Chief Executive Officer) is examining the performances of the different departments. The reports of the corresponding directors highlight the following points.

4

Profit ($ million)

Work situation

3 2 1 0

• Exploration/extraction of oil and gas Oil exploration: the costs of exploration for oil have remained steady, while the costs of gas extraction in the North Sea increased by 15% in 2013 due to stormy weather which put some drilling platforms out of action. The damage was repaired in 2013/2014, but wasn’t completed soon enough to avoid an increase in the costs of extraction for a second year running. • Refinery The costs of separation of crude oil into different components for general use, such as petrol, oil and lubricants rose slightly (5%) in 2013/2014. • Manufacturing The company started to manufacture a new range of plastic products and chemicals in 2013. Manufacturing costs went up by 20% in 2014. • Sales Sales of petrol remained stationary in 2012/2014, but sales of derivative products have gone down by 25%.

94

2010

2011

2012

2013

2014

• Marketing The budget for marketing and advertising has been increased only slightly since 2012. • Distribution The costs of transportation of crude oil by tankers and pipelines have not greatly changed, but the costs of insurance and distribution to petrol stations have risen by over 20%. • Research and development 5% of the total turnover was spent by this department in 2011 and in 2014 that percentage was less than 6%. • Finance The finance department has appointed 15 new members of staff over the last three years. More money has been invested in people than in office automation. • Personnel The workforce is now 2,540 employees, 150 more than in 2010. The costs of recruitment, selection and training of staff have only risen by 10%, but the total expenses of paying wages and pensions are 25% higher.

Business background

1

COMPREHENSION CHECK

1

Answer the questions. 1 How much did the profits fall between 2010 and 2014? 2 Complete the table to show the departments involved in the branches of production listed. Branch of production

Departments

primary secondary tertiary

3 What problems did the company have in relation to primary production? 4 What problems did the company have in relation to secondary production? 5 What weak areas exist in relation to tertiary production? PROBLEM SOLVING

2

Work in groups. The CEO wants to have a clear idea of the weak points of the company and needs to plan a strategy to make up the lost profit.

a

Discuss your answers to ex. 1 and prepare a list of the company’s main problems.

b

Discuss ways to improve the overall performance of the company by cutting costs and improving sales. The following points are worth discussing. • Allocation of budgets. Should some departments have their budgets increased/decreased? • Saleable products. What products are produced by the company? Are they all profitable? Should the production of certain products be cancelled? • Sales promotion. Is this effective? How could it be improved? • Administration. How can this be made more efficient? Is it worth investing in office automation? What effects will it have on staff/training? • Workforce. The personnel department has high costs. Can these be reduced?

c

Prepare a report for the CEO outlining a strategy to revamp the company with precise suggestions for cost reduction and the promotion of sales.

COMPETENCE • Presentation • Report preparation

3

Each group present their ideas to the other groups. Discuss which ideas are the best and prepare a final report to be presented to the CEO.

95

DIGITAL EXPANSIONS

DIGITAL EXPANSIONS

Module 1 • Business letters (SB p. 90)

Opening and closing business letters

• Protectionism (SB p. 72)

Economic integration

• ESAME DI STATO

The business world

2

BU S I N E SS C

EORY

M MU

NICATIO

B U SI N

S

TH

O

ES

2 Business structures 2 Business growth

BU

UA

GE

N

BUILD YOUR COMPETENCE

S IN

ESS LA

NG

2 Company departments 2 Company jobs 2 Describing hierarchy

2 Job searching 2 Applying for a job 2 Job interviews

BUSINESS THEORY

Business structures There are many ways in which a business in the private sector can be structured.

Sole traders The simplest and most common type of business. A sole trader operates the business alone or with the help of family members and is responsible for everything that the company does. The sole trader has unlimited liability 1, which means that he or she is personally responsible for all the company’s debts. Artisans and skilled workers 2, such as carpenters, plumbers, decorators and electricians, often operate as sole traders. The same model is usually used by people who run shops, for example hairdressers, butchers and greengrocers.

Advantages • • • • •

profits don’t have to be shared decisions can be made quickly less capital is needed can offer personalised service easy to set up in business

Disadvantages • • • • •

unlimited liability no help in decision making a limited amount of capital higher prices than larger businesses difficult to take time off and holidays

Partnerships Partnerships are formed by a minimum of two and a maximum of 20 people. The partners share the responsibility of running the business. Each partner makes a capital investment in the company and the profits and losses 3 are shared. There are two main types of partnership: • unlimited or ordinary partnership All of the partners take an active role in the running of the business. They are also all liable for company debts. • limited partnerships Some of the partners only invest capital in the company. They do not take an active part in running the business and are liable only for the amount of money they initially invested. They are known as ‘sleeping partners’, or ‘limited partners’. In each limited partnership, however, at least one partner must have unlimited liability. The unlimited partner is responsible for the company’s debts. 1 liability: responsabilità 2 skilled worker: operaio specializzato 3 loss: perdita

98

Advantages • there is more capital • expansion is easier • partners can specialise in different areas

Disadvantages • profits and control must be shared • decision making may take longer • there may be disagreements between partners

The business world

2

ACTIVITIES 1

Read the list of professions below. Which professions do you associate with sole traders (S) and which with partnerships (P)? plumber financial consultant accountant hairdresser baker lawyer architect grocer

2

Read about the advantages and disadvantages of sole trading on page 98 and correct the statements. 1 Sole traders receive a percentage of the profit. 2 Because less capital is needed prices can be lower. 3 Sole traders aren’t personally accountable for debts. 4 Sole traders need to consult with family and employees when making decisions.

3

Hannah Craig is a successful sole trader. Listen to the description of her company and complete the factfile. Owner: Hannah Craig Nationality: .......................................................................

(1)

Type of business: ..............................................................

(2)

Company name: ...............................................................

(3)

Products sold: ..................................................................

(4)

Sole trader Disadvantages: ................................................................. Advantages: .....................................................................

(5) (6)

4

Read ‘Partnerships’ on page 98 and answer the questions. 1 What is a partnership? 2 How many partners are needed to form a partnership? 3 What benefits could a sole trader gain by taking on a partner? 4 What is the difference between an ordinary partnership and a limited partnership? 5 What is the difference between ordinary partners and sleeping partners? 6 What are the advantages and disadvantages of a partnership?

5

Find the English equivalents of the following: 1 società in nome collettivo (snc) 4 ditta individuale 2 responsabilità ilimitata 5 società commerciale 3 società in accomandita semplice (sas) 6 soci accomandanti.

6

Explain in your own words the advantages and disadvantages of sole trading compared to a partnership.

99

BUSINESS THEORY

Limited companies Limited companies (joint-stock or corporations in the USA) differ from sole traders and partnerships in two important ways. • There is limited liability. The liability of company members is limited to the amount of money they have invested in it. • The company has a separate legal identity. The company can own property, enter into legal contracts, sue 1 and be sued 2 in its own name. The capital invested in limited companies is divided into shares and the people who invest the money are called shareholders. The company profits are divided in proportion to the number of shares held. These payments are called dividends. Shareholders own the company but do not control it. They elect a number of directors, the Board of Directors, who run the business for them. Policies 3 are decided by the Board of Directors and are carried out by the Managing Director or Chief Executive Officer (CEO). There are two types of limited company. PRIVATE LIMITED COMPANIES (LTD)

1 sue: fare causa 2 to be sued: essere chiamato in giudizio 3 policy: politica, linea di condotta

Private limited companies must have at least two shareholders, but there is no upper limit and companies can expand by selling more shares. The shares are not sold on the Stock Exchange and they cannot be advertised publicly for sale. The share capital must not exceed £50,000. PUBLIC LIMITED COMPANIES (PLC)

Public limited companies must have a minimum of £50,000 share capital. They can sell their shares to the public and may be quoted on the Stock Exchange. Only two people are needed to form a PLC and there is no stated maximum number of shareholders.

• • • • •

Advantages

Disadvantages

limited liability easier to raise capital (PLCs) obtain finance from banks specialise can operate on a large scale

• formation is complicated and expensive • decision making can be slow • employees and shareholders are distanced from one another • the annual accounts are open to public inspection

ACTIVITIES

100

1

Read this page and answer the questions. 1 What are limited companies called in the USA? 2 Why are limited companies less risky than ordinary partnerships? 3 How is the capital in limited companies divided? And the profits? 4 What big advantage does a PLC have over a Ltd company?

2

Write the English equivalents of the following: 1 responsabilità limitata 5 consiglio di amministrazione 2 Spa (UK)/(USA) 6 amministratore delegato 3 azione 7 personalità giuridica 4 azionista 8 dividendo.

The business world

CASE STUDY

Diesel

2

ALTERNANZA SCUOLA-LAVORO

Diesel is a global clothing and lifestyle company. It was founded in 1978 by Renzo Rosso and Adriano Goldschmied, the owner of an Italian clothing manufacturer, Moltex. Rosso, who worked for Moltex at the time, bought 40% of the company, which then changed its name to Diesel. In 1985 Rosso bought Goldschmied’s share in Diesel and became the sole owner. The Diesel brand of clothing soon became very popular, helped by clever marketing and advertising campaigns. The brand had a reputation for being trendy, young and cool. In the 1990s, Diesel opened flagship stores in New York, Rome and London and increased its range of products from jeans to include sportswear, sunglasses, fragrances and shoes. Today Diesel’s products are sold in over 80 countries and are available in more than 5,000 retail outlets, including 400 company-owned stores. Diesel employs about 2,200 people globally and has an annual revenue of approximately €1.8 billion.

COMPANY PROFILE

Type

private limited company

Sector of industry

fashion

Founders

......................... / ......................... (1)

Headquarters

Molvena, Italy

Founded

in .......................... (2)

Key people

Renzo Rosso, founder and CEO

Products

clothing and accessories

Revenue

€ ......................... (3)

Renzo Rosso, founder and president of Diesel.

ACTIVITIES 3

Read the Case Study and complete the ‘company profile’ with the missing information.

4

Read the Case Study again and answer the questions. 1 What type of business structure does Diesel have? 2 When and how did the company start? 3 How did Renzo Rosso know Adriano Goldschmied? 4 When did Rosso become Diesel’s sole owner? 5 What helped Diesel become popular? 6 What happened in the 1990s?

5

What do these figures refer to? 1 5,000 2 400

3 2,200

4 1.8 billion 101

BUSINESS THEORY

Cooperatives Cooperatives are voluntary organisations that are owned and run by their members. They usually operate as limited companies. In cooperatives, members contribute the capital and share the profits. In general, the societies are run in a democratic way and each member has one vote. However, in some cases, people are employed as specialist workers, such as managers and accountants. In the UK, there are over 6,000 cooperatives. Most are fairly small but in the retail industry the Co-operative Group has a 6.4% share of the British grocery market and more than 3,300 retail outlets.

Franchising The concept of franchising comes from the USA, where over 30% of all retail businesses operate on a franchise agreement. A franchise agreement means that a large, well-known company – the franchisor – licences a smaller business – the franchisee – to use its trademark and sell its products. The franchisee pays the franchisor an initial sum of money – the franchise fee – and a percentage of the annual turnover – the management service fee.

THE FRANCHISOR

THE FRANCHISEE

• employs

• works

• supplies

• sells

• shares profits

• shares profits

Franchising is popular with small businesses because they are supported by the success of the franchisor and therefore have less risk of failure. Franchisors also benefit from the agreement because they don’t have to invest a lot of capital in distribution outlets 1. 1 outlet: punto vendita

Large companies, such as Subway and Pizza Hut have established international chains of franchise shops for the exclusive sale of their articles. Almost all of Subway’s over 42,500 outlets are franchised. Left: A sign above a Co-operative branch in central Manchester. There are various parts to the Co-op group, including its food retail, travel and bank sections. Right: Fred De Luca, president and founder of sandwich maker Subway.

The business world

2

ACTIVITIES 1

Read ‘Cooperatives’ on page 102 and answer the questions. 1 What are cooperatives? 2 How do they usually operate? 3 What role do cooperative members have ? 4 How many cooperatives are there in the UK? 5 What is the most important? 6 In what field of business does it operate?

2

Class discussion. Can you name any cooperative organisations in Italy? How do they differ from those in the UK?

3

Read about ‘Franchising’ on page 102 and complete the statements with ‘franchisor’ or ‘franchisee’. 1 The ................................................... is usually a large company. 2 The ................................................... gives permission to use its trademark. 3 The ................................................... pays the franchise fee. 4 The ................................................... sells the products to the public. 5 The ................................................... supplies the product. 6 The ................................................... pays an annual management service fee. 7 The ................................................... has less risk of business failure. 8 The ................................................... invests less in distribution outlets.

4

Correct the statements. 1 Franchise organisations originated in the UK. 2 In the USA franchising is common in wholesale business. 3 Large companies benefit from the success of franchisors. 4 Small companies own chains of franchise shops.

5

Look again at page 102. What do these figures refer to? 3 3,300 2 6.4% 4 over 30% 1 6,000

6

7

Find the English equivalents of the following: 1 punto vendita al dettaglio 2 accordo commerciale 3 marchio commerciale 4 volume d’affari 5 fallimento 6 vendita in esclusiva. Work in pairs. Compare a sole trader and a franchisee. • Who takes the greatest risk? • Why?

Discuss your opinions with the class.

103

BUSINESS THEORY

MEDIA FILE

British singer Peter Andre joins Kung Fu Schools franchise to help build children’s confidence Kung Fu Schools, which teaches children from 4-12, has been launched by Paul Hawkes and Alan Paterson with the support of the British singer and TV celebrity Peter Andre, who owns part of the business. Over the past seven years Kung Fu Schools has run five full-time schools training hundreds of adults and children. They now want to expand their business by offering franchise licences to people who would like to set up a school using the Kung Fu Schools’ name and formula. Explaining the school’s aims, Hawkes offers reassurance to franchise candidates. ‘Contrary to popular belief kung fu is not about fighting and aggression,’ he says. ‘There is a strict code of ethics that means it should only be used for self-defence and this is something we emphasise in all our classes.

ACTIVITIES WARM UP

1

Read the title of the article and find out: 1 what British singer is the article about 2 why he supports Kung Fu Schools.

COMPREHENSION

2

104

Listen to and read the article and find out: 1 the name of the franchising activity 2 who it was launched by 3 who it is supported by 4 what franchisees will receive 5 the franchise fee.

3

Read the article again and answer the questions. 1 How long have Kung Fu Schools been in business? 2 Why are they now offering franchise licenses? 3 What benefits can children gain from learning kung fu? 4 How long has Peter Andre trained with Kung Fu Schools? 5 How will he support the initiative?

Celebrity endorsement Andre and his children have trained with Kung Fu Schools over the past two years. ‘I have seen at first hand how it has benefited us as a family,’ he reports. ‘I am a real kung fu fan and have seen my children grow in confidence and self-esteem since beginning training. They absolutely love it and look forward to their sessions. It will be great to take the passion that Paul and Alan have for training and coaching children to a wider audience.’ Franchisees will receive everything they need to set up and run their own Kung Fu School. This includes expert tuition 1 in kung fu from the school’s expert team of instructors, operations manuals, equipment kit, marketing/advertising materials and business development support. The school’s unique software package is also included for maintaining the member database and taking bookings. In addition Andre will be helping franchisees by promoting the brand nationally through social and traditional media, as well as videos and personal appearances. Finally a team of external experts will offer help and support in franchising, finance, marketing, and business development. Franchise fees start at £10,995 according to the territory, plus the working capital that will be required to grow and develop the business. (Source: Franchise World Magazine)

4

Write the English equivalents of the following: 3 sostegno 2 auto difesa 4 autostima 1 personaggio televisivo

1 tuition: insegnamento

5 manuale operativo 6 prenotazioni.

PRODUCTION

5

Write an advert publicising the Kung Fu Schools franchise offer. Use information from exs. 2 and 3.

TURN YOUR PASSION FOR SPORT INTO A PROFITABLE BUSINESS! Kung Fu Schools is offering ................................................................. ............................................................................................................. ............................................................................................................. ............................................................................................................. 105

BUSINESS THEORY

Business growth A business can grow by internal or external expansion. In the case of internal expansion a company grows over time, gradually acquiring new assets 1 or establishing new lines of products. With external expansion a business grows very rapidly through a process of integration with other organisations. Companies can integrate in a number of ways. Companion Book, p. 32 1 assets: disponibilità finanziarie 2 acquisition or takeover: acquisizione 3 merger: fusione

• Acquisition or takeover 2 This occurs when one company has enough shares in another company (the target company) to take over the control and ownership. The hi-tech industry provides many examples of takeovers. • Merger 3 This takes place when two or more companies decide to combine their assets and form one company. A merger may occur for many reasons, for example to increase market share and to cut costs in areas such as research and development. • Joint venture A joint venture is when two companies agree to collaborate and jointly invest in a separate business or project.

HI-TECH ACQUISITIONS WhatsApp in 2014 for $19 billion broadcast.com in1999 for $5.7 billion

Instagram in 2012 for $1 billion

flickr in 2005 for $40 million

YOU TUBE in 2006 for $1.65 billion

tumblr in 2013 for $1.1 billion

NEST in 2014 for $3.2 billion

SKYPE in 2011 for $8.5 billion

Zappos in 2009 for $1.2 billion

ACTIVITIES 1

106

Read ‘Business growth’ on this page and correct the statements. 1 Integration is a method of internal expansion. 2 An acquisition occurs when two companies form one company by combing their assets. 3 Acquisitions are not common in the hi-tech industry. 4 Only two companies can enter a merger agreement. 5 The companies in a merger agreement jointly invest in a separate project. 6 A joint venture agreement is the same as a merger.

1-26

2

Look at ‘Hi-tech acquisitions’ on this page and answer the questions. 1 How many of the companies do you know? 2 How many of their services do you use regularly? 3 Which of the acquisitions were the most expensive? 4 Why do you think the companies paid so much?

3

Listen to some short radio news headlines. Circle the correct form of integration for each. 1 acquisition / merger 2 merger / joint venture 3 acquisition / merger 4 merger / takeover 5 merger / joint venture

MEDIA FILE Facebook buys WhatsApp for $19 billion Facebook has bought messaging app WhatsApp in a deal worth a total of $19 billion in cash and shares. It is the social networking giant’s biggest acquisition so far. WhatsApp allows users to send messages over Internet connections, avoiding text messaging fees. The company claims it is currently registering one million new users a day. Cathy Boyle, a senior analyst at research firm eMarketer, said WhatsApp was valuable to Facebook for several reasons apart from advertising, including its younger user base and its popularity overseas. ‘WhatsApp actually has greater penetration than Facebook in a lot of international markets,’ Ms Boyle told the BBC. Ben Bajarin, from California-based technology consultants Creative Strategies, said the deal would allow Facebook to tap into 1 a rapidly growing market. ‘WhatsApp is on a path towards a billion users,’ he said. ‘They’re growing much, much faster than Facebook. This is a way that Facebook can get the next billion smartphone consumers into their ecosystem... to touch them and engage with them in other ways than just via the Facebook platform.’ Prior to this acquisition, Facebook’s biggest purchase had been Instagram for $1bn in 2012.

The business world

2

ACTIVITIES WARM UP

1

Discuss the questions. 1 Have you got a Facebook profile? How many friends have you got? 2 Do you ever use WhatsApp? What for?

COMPREHENSION

2

Listen to and read the article and answer the questions. 1 How much has Facebook paid for WhatsApp? How have they paid? 2 How many new users does WhatsApp register every day? 3 Why is this acquisition important for Facebook? 4 How many total users will WhatsApp have in the near future? 5 What other big hi-tech company has Facebook recently acquired?

3

Read the article again and find the following: 1 the reason why it’s cheap to send messages through WhatsApp 2 Cathy Boyle’s job 3 where Creative Strategies is based 4 the number of smartphone users that Facebook can attract 5 when Instagram was acquired and how much was paid.

1 tap into: inserirsi

(Source: BBC online)

PRODUCTION

4

Find more information about Facebook on the net and complete the company profile. Then write a paragraph about the company.

COMPANY PROFILE

Mark Zuckerberg (on the right) Chairman and CEO of Facebook held a conference at the Mobile World Congress 2014 after announcing he will buy WhatsApp.

Type: ........................................................

(1)

Sector of industry: ....................................

(2)

Founded in: ..............................................

(3)

Founder(s): ...............................................

(4)

Headquarters: ..........................................

(5)

Key people: ..............................................

(6)

Revenue: .................................................. (7) Employees: ...............................................

(8)

Users: .......................................................

(9)

107

BUSINESS THEORY

Co-branding Co-branding is an arrangement that associates a single product or service with more than one brand name or organisation. In a co-branding agreement, two or more companies work together to associate various logos, brand names and colour schemes to a specific product. The concept is being used increasingly by companies to raise awareness, increase customer loyalty, save money and generate sales. At the most basic level businesses The Trident-Hilton Towers hotel in Mumbai. have used co-branding to suggest an improvement in their current products and, on a more sophisticated level, they have combined technologies to create an entirely new co-branded product. Different types of co-branding include: JOINT VENTURE CO-BRANDING

Two or more companies form a joint venture to produce and sell a new product that will include the branding of all participants. An example is a recent joint venture between East India Hotels (EIH) and Hilton, which opened a number of hotels under the brand name ‘Trident Hilton’. MULTIPLE SPONSOR CO-BRANDING

More than two companies work together to form a strategic alliance. This can be in relation to promotion, technology or sales of a product. This is common practice in relation to credit cards. For example Citibank, British airways and Visa formed a multiple sponsor alliance for a credit card where the card owner automatically becomes a member of the British Airways Executive Club.

ACTIVITIES

108

1

Look at these pages. What brands are mentioned?

2

Read about co-branding on this page and answer the questions. 1 What is co-branding? 2 What does a co-branding agreement consist of? 3 What advantages do companies have in co-branding? 4 How has co-branding been used at the most basic level? And at a sophisticated level? 5 What types of co-branding are there? 6 What is the difference between them?

The business world

2

Co-branding Best Western runs an exclusive rewards program for Harley Davidson enthusiasts. Riders who participate

get

special

treatment at the hotel, including a cleaning towel for their motorbikes at check-in.

Nike and Apple brought music and exercise together when they developed the Sports Kit, a wireless system that enables shoes to talk to an ipod.

Food manufacturers Betty Crocker and Hershey have co-branded many easy-to-make food products.

Adidas and Polar Electro worked together to create Project Fusion, which

integrates

heart rate and speed and

distance

monitoring equipment into sports clothes.

ACTIVITIES 3

4

Listen to and read this page. Then complete the table. Brands

Name/Type of product

Description of product

Adidas & .................................

...................................................

sports clothes monitoring .................

...................................................

Sports Kit

.................................................................

....................... & .......................

rewards program

.................................................................

...................................................

food products

easy-to-make products

Look for other examples of co-branding. Find information on the Net. Choose a product, then prepare an oral presentation for the class.

109

BUSINESS LANGUAGE

Company departments 1

The pictures below represent different departments within a company. Match each with the appropriate department name. Finance • Sales • Human Resource (HR) • Marketing • Production

1 ........................................................ 2 ........................................................ 3 ........................................................

4 .......................................................................................

2

110

5 .......................................................................................

Read the sentences which describe the main functions of each department in a company. Complete them by adding the department name. Use the words from ex. 1. 1 The ................................................................. Department focuses on issues related to the employees. These include recruitment, training, wages and salaries. 2 The ................................................................. Department examines the market, investigates product demand and organises publicity for the company’s products. 3 The ................................................................. Department purchases raw materials and product components, manufactures the goods, checks that the products are well made, packs the products appropriately and maintains the production schedule. 4 The ................................................................. Department collects, analyses and records the company’s financial data. 5 The ................................................................. Department distributes and sells products to customers, deals with customers’ problems and queries.

The business world

2

Company jobs 3

Listen to these people describing their jobs and write the appropriate work title under each picture. Choose from: • Chief Executive Officer (CEO) • Personal Assistant • Receptionist • Sales Representative • Computer Programmer • Human Resource Manager • Accountant • Electrician • Machine Operator. 1

Oliver Miles

Nicholas Bloom

Shaozu Yang

...................................

...................................

...................................

4

6

5

Nicole Jeffrey

Emily Herrera

Alice Hodge

...................................

...................................

...................................

7

4

3

2

8

9

Kevin Randall

Sarah Jenkins

John Campbell

...................................

...................................

...................................

Ask and answer questions about the people in the photos. Ex. A: What does Nicole Jeffrey do? B: She’s a Chief Executive Officer (CEO).

111

BUSINESS LANGUAGE

Describing hierarchy 1a

b

2

Read the examples. They show you different ways of describing hierarchy. • The Finance Division is headed by James Anderson. • He is assisted by Lucy Carter, William Hudson and Rebecca Trevor. • The Financial Services staff report to Lucy Carter. Now match the underlined phrases in the example sentences to the Italian equivalents. 1 è assistito da ......................................................................... 2 rispondono a ......................................................................... 3 è diretto da .........................................................................

Look at the organisational chart and complete the sentences.

Marketing Sean Burt

Sales and Marketing

Keith Moore

Advertising Amy Reeve

Sales Mike Simms

Customer Services Sam Owen

1 The Sales and Marketing Division ........................................ Keith Moore. 2 He ........................................ four department managers. 3 The Marketing and Advertising staff ........................................ Sean Burt and Amy Reeve. 4 The Sales Department ........................................ Mike Simms. 5 The Customer Services staff ........................................ Sam Owen.

3

112

TRANSLATION Translate these dialogues and sentences into English. 1 L’Ufficio Risorse Umane è diretto dal Signor Wheeler, che è coadiuvato da due segretarie. 2 Rachel Brown lavora all’Ufficio Pubblicità è risponde al direttore della Divisione Marketing. 3 A: Da chi è diretto l’Ufficio Acquisti? B: Dalla Signora Greenway, che è assistita dal Signor Dawson.

The business world

2

Describing responsibility The meaning of the adjective responsible changes according to the preposition which follows it. 1 to be responsible FOR = to have control and authority over someone or something the Purchasing Division. Mark Spruce is responsible for

the decisions taken. the Purchasing staff.

2 to be responsible TO = to be controlled by and have to report to someone William Hudson is responsible to the CEO James Anderson. Look at the position of the preposition when asking questions about responsibility. Statements

Questions

He is responsible for Purchasing.

What is he responsible for?

He is responsible to James Anderson.

Who is he responsible to?

ACTIVITIES 1

Complete these job adverts with the missing prepositions.

2

Complete the conversation. A: I don’t know that woman. Who is she?

WANTED!

B: She’s Megan Green.

Senior Personal Assistant for busy Manager

A: What ............................................................... (1) ?

You will be responsible ..............................  (1) organising the manager’s timetable and supervising the administrative and clerical work in the department. You will be responsible .............................. (2) the Sales Manager.

B: She’s responsible for the Financial Services Department. They deal with investment and tax issues.

WANTED!

A: Has she got a lot of staff? How many people ........................................................................  (3) ?

A: Who ...............................................................  (2) ? B: She’s responsible to the Finance Director, like all the other Finance managers.

Customer services assistant You will be responsible .............................. (3) the Customer Services Manager, but will have a large amount of autonomy in organsing your work. You will be responsible ..............................  (4) analysing customer queries. WANTED!

Hotel receptionist You will be responsible .............................. (5) the hotel manager. You will be responsible .............................. (6) checking in / checking out procedures and dealing with customer queries.

B: Um… I think she’s got about 10 members of staff. It’s not a very big department.

3

TRANSLATION Translate the dialogues. 1 – Chi è il responsabile del reparto acquisti alla Gecks Ltd? – È il signor Dixon. 2 – A chi risponde il Signor Hobson? – Risponde al capo dell’Ufficio Produzione, la Signora Davies.

113

BUSINESS COMMUNICATION Companion Book, pp. 38, 60, 88, 96

Job searching

Jobs for Students

Graduate jobs

Part-time jobs

a

CONFERENCE ORGANISER

We are looking for a young graduate with a degree in a business related subject. You must have strong research skills, excellent communication skills and, ideally, some commercial experience. JOB DESCRIPTION You will work as part of a team to plan and organise conferences and product launches for an important media company based in London. You will also be responsible for providing post conference feedback and market reports. Location: London Hours: Full time

Contract: Permanent Level: Graduate

Industry: Marketing & PR Salary: £20,000 - 26,000 + benefits

b

WEB DESIGNER An ideal opportunity for someone who wants to increase their experience in web design. An elite grammar school in Manchester is looking for a temporary web and graphic designer. RESPONSIBILITIES You will be responsible for: – the web and graphic design of the school Intranet – the production of posters and other publicity materials related to the Intranet

– video recording and video editing – continuing the digitalisation programme – the administration of online testing.

Qualifications Ideally educated to degree standard. Some experience of web design in SharePoint 2010 or above. Knowledge of current digital video, audio and photo software such as Photoshop, Illustrator, InDesign, Adobe Premiere, etc. Contract: Temporary (a one year contract to cover maternity leave) Hours: Full time Salary: £18,638 - £20,400

1

Look quickly at the job adverts on these pages and find out which jobs are being offered. Advert 1: ................................................................................................................................. Advert 2: ................................................................................................................................. Advert 3: ................................................................................................................................ Advert 4: .................................................................................................................................

2

114

Which advert is offering: 1 seasonal work 2 temporary work

3

part-time work

4

permanent full-time work

The business world

Summer / Temp jobs

Internships

2

Placements

TECH CAMP TUTOR Want to spend the summer developing your CV and earning a competitive wage? Then apply for a position as a tutor on a Technology Summer Camp for children. Education level: A-Level / BTEC or NVQ equivalent Skills required: Strong programming skills Good communication abilities Contract: Seasonal work Locations available: London, Coventry, Oxford

Hours: 40 per week Salary: £400 / week c

d

DIGITAL MARKETER

A London based start-up company requires a part-time digital marketer to help them promote their products via digital marketing and expand their services to include Amazon and eBay shops. JOB DESCRIPTION – Set up the eBay and Amazon shops for business – Run social media campaigns to drive traffic to the website – Develop a digital marketing plan Candidates The post would be ideal for university students with some free time. The preferred areas of study would be Advertising, Marketing, Computer Science, Media Studies, PR. Preferably someone with a numerate background who can use Excel spreadsheets. Location: London

3

Hours: 10 hours per week

Contract: Part-time

Rates: £7.50 / hour

Fill in the table with the information available in the adverts. advert 1

advert 2

advert 3

advert 4

position role place of work qualifications skills needed salary

115

BUSINESS COMMUNICATION

The curriculum vitae A curriculum vitae (CV) should give a prospective employer a clear idea of who you are and what you can do. Your CV should contain your personal details as well as information about your education and training, previous work experience and skills and competences.

1 template: modello

Today Europeans can live and work anywhere in the EU and people often have to prepare a curriculum vitae (CV) to send to an employer in a different country. To help them do this in a clear and standard format, the European Parliament and Council have created a standardised CV template 1 with advice on how to complete each part. It includes sections relating to:

Personal information

Surname / First name / Address / Telephone / E-mail / Nationality / Date of birth / Gender (M or F)

Desired employment / Job applied for

The type of job you are looking for or the tile of a specific job you are applying for.

Work experience

Your work experience, with most recent or current experience first. Part-time and temporary work should be included.

Education and training

Places of education where you have studied with the most recent first. Acquired during your life and career, but not necessarily covered by formal certificates and diplomas • linguistic competences • communication skills • organisational skills and competences

Personal skills

• computer skills and competences • job-related skills (not listed elsewhere) • other skills and competences • driving licence Other relevant information, e.g. contacts and references (include the names and addresses of two people who have known you for some time. If possible, one should be from a place of study and the other from work).

Additional information

(Source: Cedefop)

Useful terms

1

Read this page and answer the questions. 1 What is the abbreviated form of curriculum vitae? 2 Why do people write curricula vitae? 3 What information should it contain? 4 Why have European Parliament and Council created a standardised CV template?

2

Write your curriculum vitae. Use the information above and the CV model on page 117 to help you. Visit http://europass.cedefop.europa.eu for help.

High school University degree in: • Book-keeping and accounting • Tourism • Foreign Languages • Secretarial duties • Politics • Law • Business and economics 116

The business world

Curriculum Vitae

PERSONAL INFORMATION

2

Wilson, Megan

Wilson, Megan 12 Gloucester Road, Malmesbury, Wiltshire, SN16 83T, UK (01666) 628459

086 2412900

[email protected]

Sex Female | Date of birth 30/08/1992 | Nationality English JOB APPLIED FOR POSITION PREFERRED JOB STUDIES APPLIED FOR

Primary School teacher

WORK EXPERIENCE September 2014 to present

Assistant teacher Malemsbury Primary School, Tetbury Hill, Malmesbury, Wiltshire, SN16 9JR Taught Years 1 and 2, participated in organising extra-curricular activities Education Sector

EDUCATION AND TRAINING 2009-2012 2012-2013

BA degree Drama and English Post Graduate Certificate of Education Oxford Brookes University

PERSONAL SKILLS Mother tongue(s) Other language(s)

English UNDERSTANDING Listening

French

Reading

SPEAKING

WRITING

Spoken interaction Spoken production

B1 independent B2 Independent B1 independent B1 independent B1 independent user user user user user Replace with name of language certificate. Enter level if known. Levels: A1/2: Basic user - B1/2: Independent user - C1/2 Proficient user Common European Framework of Reference for Languages

Organisational / managerial skills Computer skills Other skills Driving licence

While working as an assistant school teacher I have organised and supervised extra curricular activities such as drama classes. Completed an ECDL course Certificate in first aid I have a British drivers licence

ADDITIONAL INFORMATION References

References available upon request © European Union, 2002-2013 | http://europass.cedefop.europa.eu

117

BUSINESS COMMUNICATION

Applying for a job Letters of application When applying for a job, you should include a letter of application with your CV. The letter can be in the form of an e-mail, particularly if you are applying for work online. The letter should state the job you are interested in and outline the reasons why you are applying. More

Subject: Position of Assistant Editor To:

Inbox

[email protected]

Dear Sir / Madam, In response to your advertisement in the online edition of the Guardian newspaper, I am writing to apply for the position of Assistant Editor at your publishing company. I feel that I am a strong candidate for the position as I have recently graduated from the University of Bristol with a first class degree in English. In addition, I have just completed a three month internship with Cosmopolitan magazine in London. During this time I gained valuable experience in writing, editing and office administration. I am interested in this position because I am looking for challenging work that would enable me use and build on my skills and experience. I would love to begin my career with your company and I am confident that I would be a beneficial addition to your staff. I attach my CV and references from my internship supervisor and one of my university professors. I hope my application will be considered favourably and I look forward to an interview. Yours faithfully, Sarah Wilton

1

Read the e-mail application and answer the questions. 1 What job is the applicant applying for? 2 Where did she see the job advert? 3 What qualifications and experience does she have? 4 Why is she interested in the job? 5 What does she attach to her e-mail?

The business world

2

Writing: job applications – Letter plan and phraseology 1

Read the following phrases and complete the letter plan with appropriate headings. Request for interview • Qualifications • Reference to enclosures • Future expectations and reason for applying Paragraph 1 Reference to source .......................................................... • In response to your (online) advertisement in... on..., I am writing to apply for the post / position of... • I would like to apply for the post / position of... which you advertised in..., on... • I am writing to enquire about...

Paragraph 2 .......................................................... • I feel that I am a strong candidate for the position as... • I graduated from..., with a degree in... • I left school with a diploma in... • I have a degree / diploma in..., from... • In addition, I have just completed...

Paragraph 3 .......................................................... • I am interested in this post because... • I am seeking challenging work which would enable me to use and build on my skills and experience. • I am extremely interested in...

Paragraph 4 .......................................................... • I attach / enclose my CV and references from... • My CV, which I enclose, contains additional information about... • Please find enclosed a copy of my CV and...

Paragraph 5 .......................................................... • I hope my application will be considered favourably and I look forward to an interview. • Thank you for your time and consideration. I look forward to speaking with you... • I am confident that I have the necessary qualifications for this post and welcome the opportunity for an interview. • I would welcome the chance to give you further details, should you decide to interview me. 119

BUSINESS COMMUNICATION

Writing: letters of application 1

Fill in the blanks in the body of this e-mail using words and phrases from the table on page 119. More

Subject position of personal assistant From To

[email protected] [email protected]

Inbox

Date  Friday, 25th June 20.. 10:32

Dear Sir/Madam, In .................................................. (1) in The Independent newspaper ..................................... (2) 24th June, I .................................................. (3) for the post of bi-lingual personal assistant in your office. I feel that I would be a strong .................................................. (4) because I speak three languages fluently. I am a bi-lingual English/French speaker and I recently .................................................. (5) Birmingham University with .................................................. (6) in Spanish. In addition, .................................................. (7) an intensive course in computing and I can now use Excel spreadsheets and all Microsoft Office applications. I .................................................. (8) because I am looking for challenging work which would enable me to use my language skills and gain experience. .................................................. (9) a copy of my CV and two references. I am confident .................................................. (10) and .................................................. (11) for an .................................................. (12). Yours faithfully, Julia Williams

2

TRANSLATION Translate this letter into English. Viale Aldo Moro 221 07026 Olbia Tel.: 338 35642815 E-mail: [email protected] Thomson Tour Operator 25 Park Street SE1 9EQ London Olbia 5 Marzo 20.. Egregi Signori, In risposta al Vostro annuncio sul sito jobsite.co.uk, vorrei fare domanda per il posto di guida turistica presso la Vostra organizzazione. Ho 24 anni e una laurea in lingue straniere conseguita presso l’Università di Roma. Sto cercando un lavoro stimolante che mi permetta di usare e migliorare le mie capacità linguistiche e conseguire una valida esperienza in campo turistico. Allego copia del mio CV unitamente alle referenze fornitemi da un mio professore universitario. Grazie per il tempo che dedicherete alla mia richiesta. Spero che la mia domanda verrà da Voi considerata positivamente e mi auguro di poter ottenere un’intervista. Cordiali saluti, Anna Marras

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The business world

3

2

Read the online job advertisement and the candidate profile below. Imagine you are the candidate and write a letter of application for the job.

Find a job

★★★★★

 JOB TITLE

Financial Assistant

 LOCATION

London

 EMPLOYER

Tricorn Leisure Ltd

 DESCRIPTION

– You will be responsible for the supervision and control of a wide range of accounting functions. – You will work with the Financial Controller. You should be an experienced, well organised administrator with a can-do attitude.



– Excellent IT skills and some Book-Keeping experience essential.  SALARY

Negotiable according to experience.

 WRITE TO

The Financial Controller, Tricorn Leisure Ltd, 12 Charing Cross Road, Leicester Square, London WC2H 0JG

 DEADLINE

20th October

 JOB REF

Job4u

CANDIDATE PROFILE ◗ Qualifications: – Diploma in Book-Keeping and Accountancy obtained in Italy with top marks. – An Advanced level ECDL (European Computer Driving Licence) qualification. ◗ Skills and personality: Fluent English; has spent the year since leaving school in the UK and intends to develop a career there. Positive and enthusiastic attitude. ◗ Work experience: Some experience of Book-Keeping for a London Estate Agency.

4

Write a letter of application for one of the advertisements on pages 114-115. Use your own personal details, but invent all the other data. Follow the guidelines. • Refer to source. • Give personal details and qualifications. • Say why you are interested in the post and state future work hopes and expectations.

121

BUSINESS COMMUNICATION

Job interviews 1a

Work in pairs. Read the list of tips on how to handle job interviews and decide which tips are the most important. Discuss your ideas with the class.

HOW TO HANDLE JOB INTERVIEWS

b 2a

Interview preparation

The interview

• Find out about the company.

• Be positive.

• Find out about the job.

• Be on time.

• Prepare answers to standard questions.

• Don’t smoke.

• Prepare questions to ask the interviewer.

• Make sure you understand what the interviewer is asking.

• Practise with a friend or teacher.

• Watch your body language.

• Sell yourself but tell the truth. • Give full answers, not just ‘yes’ or ‘no’. • Wear the right clothes.

Listen to an expert talking about how to succeed at job interviews. Tick (✓) the tips in ex. 1a which she mentions. Read the job advert and listen to two candidates being interviewed for the position. Complete the candidate profiles.

Executive Assistant Renowned fashion designer offers an amazing opportunity for an Executive Assistant who thrives in a fast-paced environment. The successful candidate will handle all administrative responsibilities. Good organiser with proficient computer skills. Some experience necessary. Travel opportunities. Product discounts.

122

Ref: 1538/284

CANDIDATE 1: PROFILE

CANDIDATE 2: PROFILE

Name: Fiona Parker

Name: Karen Rogers

Qualifications: diploma in ........................

(1)

Qualifications: ‘A’ levels in .......................

(1)

Work experience: ....................................

(2)

Work experience: ....................................

(2)

Relevant skills: ........................................

(3)

Relevant skills: ........................................

(3)

Interests and hobbies: ............................

(4)

Interests and hobbies: ............................

(4)

b

Work in pairs. Discuss the candidate profiles. Which candidate is the most qualified for the job?

c

Listen to the interviews again. Which candidate handled the interview more successfully? Why? Discuss your ideas with the class.

The business world

2

Key language: interview strategies I’m sorry, I don’t understand the question. TO SAY THAT YOU DON’T UNDERSTAND

I’m not sure I quite understood your question. I’m sorry, I didn’t get the last bit of that question. I’m sorry, could you repeat the question, please?

TO ASK FOR REPETITION

Could you say that again, please? Can you repeat the last bit again, please? Could you explain what you mean by…?

TO ASK FOR CLARIFICATION

Do you mean…? Is that…? I need to think about my answer for a second, if that’s OK.

TO GIVE YOURSELF TIME TO THINK

Um… Let me see… Let me think about that one. Well…

3

Use sentences from the box above to fill in the gaps. Then listen and check. 1

Interviewer: What experience have you got in cloud computing? Candidate: I’m sorry, could you ..............................., please? Interviewer: Yes, certainly. What experience have you got in cloud computing?

2

Interviewer: Can you program in Java? Candidate: Could you .............................................................. by Java? Interviewer: Yes, certainly. Java is a very common programming language.

3

Interviewer: What would you say are your best qualities? Candidate: I need to .............................................................. for a ................................................................, if that’s ok. Interviewer: Yes, of course. Take your time.

4

Interviewer: What’s your opinion of automated production processes? Candidate: I’m sorry. I don’t ................................................................ . Interviewer: That’s ok, I’ll try to rephrase it.

5

Interviewer: Can you use the common office applications? Candidate: .............................................................. Word and Excel? Interviewer: Yes, that’s right.

123

BUSINESS COMMUNICATION

LOOKING FOR THE IDEAL SEASONAL JOB? You have just found it! Oakwood Theme Park is located in the beautiful setting of Pembrokeshire in west Wales. It is an exciting theme park with over 30 different rides from small family attractions to giant rollercoasters, such as the Hydra water rollercoaster! Due soon to open its doors for the new summer season, we need to fill the following seasonal positions:  Admissions host

 Catering assistant

seasonal positions from March to November

seasonal positions from March to November

Areas of responsibility: to provide a fast and efficient entry into the park, to handle cash and operate cash tills 1, to maintain the cleanliness and presentation of the admissions area, to work as part of the Oakwood Team promoting all aspects of the park.

Areas of responsibility: to serve food and drink to the guests, to ensure a high standard of service, to maintain a clean and safe environment, to comply with hygiene rules and legislation, to work as part of the Oakwood Team promoting all aspects of the park.

Salary: £6.31 / hour

Salary: £6.31 / hour

All positions are full time seasonal roles and include bank holiday and weekend work. You must have a good knowledge of English and enjoy team work. 1 cash till: registratore di cassa

124

The business world

1

2

ROLE PLAY Work in pairs. Read the advert on page 124 then look at the role play cards and at the checklists. When you are ready, role-play the interviews.

Student A • You have an interview for a summer job as an admissions host at the theme park. Look at the role play information on the right and use the candidate’s checklist below to help you prepare for the interview.

• You are 18 years old and are a student. You can speak English very well. You are very dynamic and have a friendly personality. You have some experience as a ticket sales assistant at a major sporting event in your city.

Student B • You are going to interview Student A for a summer job as an admissions host at the theme park. Look at the interviewer’s checklist below and prepare the questions you want to ask.

Student B • You have an interview for a summer job as a catering assistant at the theme park. Look at the role play information on the right and use the candidate’s checklist below to help you prepare for the interview.

• You are 18 years old and are a student. You can speak English very well. You are very dynamic and have a friendly personality. You have some experience serving food in a fast food restaurant.

Student A • You are going to interview Student B for a summer job as a catering assistant at the theme park. Look at the interviewer’s checklist below and prepare the questions you want to ask.

CANDIDATE’S CHECKLIST The job

✓ What will I have to do? ✓ What qualifications and experience does the company want?

INTERVIEWER’S CHECKLIST The job

✓ What qualifications and experience are needed for this position? The candidate

What I have to offer

✓ Work experience, education and training, personal skills and competences. Questions

✓ What work experience, education and training, personal skills and competences does the candidate have?

✓ When could the candidate start work? ✓ What other questions could I ask?

✓ What will they ask me? ✓ What can I ask them?

125

BUSINESS COMPETENCE

Key vocabulary 1 • • • • • • •

Complete the tables with the words on the left.

sole trader merger joint venture franchise takeover unlimited multinational

BUSINESS ORGANISATIONS Business units

Integration

Liability

• ................................

• acquisition /.............

• partnership

• ................................

• ................... liability / limited liability

• limited company

• ................................

• ................................ • ................................

2

Choose the correct alternatives in the descriptions.

1 Sole traders

2 Limited companies

Most small / large businesses have one owner: the sole trader. Sole traders have limited / unlimited liability. This means that they are responsible for all / some of the company’s debts.

There are two types of limited companies: private / small limited companies and large / public limited companies. Both types of company can be formed by a minimum of two / twenty shareholders who have unlimited / limited liability. The capital invested in limited companies is divided into shares / debentures.

3 Partnerships

4 Franchises

Partnerships are formed by a minimum of two partners. They share the responsibility of running the business. There are two types of partnership: 1 ordinary partnerships, where some / all the partners are liable for company debts 2 limited partnerships where some of the partners / all the partners do not take an active role in running the business and are liable only for the company debts / the amount of money they initially invested.

Franchising means trading under the premises / brand name of another firm, usually a wellknown business. The two parties involved in this transaction are the franchisor / franchisee, a firm which allows another person to use its trademark / capital and trade under its name free of charge / for a fee and the franchisee, a person who pays an initial fee and a percentage of their annual / first year’s turnover to trade under another firm’s name.

3

Match terms and definitions. 1 multinationals 4 2 holding company 5 3 subsidiary 6 a b c d e f g

126

takeover merger joint-venture

7

offshoring

A small company controlled by a large company which owns 50% + of its voting shares. It occurs when two companies agree to join together. Large corporations that operate in many countries. It takes place when two companies jointly invest in a separate business or project. A large company that controls a small company holding over 50% of the voting shares. This occurs when a company relocates a business process from one country to another. It takes place when one company buys enough of another company’s voting shares to allow it to take control.

The business world

2

Business skills DESCRIBING COMPANY STRUCTURE

1

Imagine you work in the Sales Promotion Department of ABC Advertising Ltd. You report to Carol Jenkins, the Sales Promotion Manager. Write a paragraph describing the company structure. Talk about: 1 the CEO 2 the various departments and department managers 3 the structure within your department.

ABC ADVERTISING LTD CEO Ralph Simmons

Creative Services Department

Client Services Department

Marketing Department

Administrative and Finance Department

Manager Christine White

Manager Pat Wilson

Manager Clive Bradley

Manager Andrew Morgan

Media Manager Ron Jones

Research Manager Giorgio Gianet

Sales Promotion Manager Carol Jenkins

• • • • •

is headed by… is assisted by… is responsible for… is in charge of… reports to…

APPLYING FOR A JOB

2

The Research Manager at ABC would like to recruit a new research assistant. Look at the advert for the post and write a letter applying for the job.

MARKET RESEARCH ASSISTANT The company: ABC Advertising is a successful and rapidly growing advertising agency. We produce printed material for advertising and promotion, using the highest quality software available.

The job:

You will be part of the market research team. You will be responsible for collating and presenting market research data. You will be accountable to the Research Manager.

You:

You can work efficiently on your own, but also enjoy team work. You have ‘A’ levels or a high school diploma. You are outgoing and ambitious.

Send a full CV and a covering letter by 10th September to: Clare Hughues, Human Resource Manager, the Human Resource Department, Job Advertising Ltd, 258 Borough High Street, Borough, London, SE1 9DE E-mail: [email protected]

127

BUSINESS COMPETENCE

CASE STUDY

Into work

ALTERNANZA SCUOLA-LAVORO

Work situation Alex Leigh has been running Offtours, a travel agency in Tewkesbury, a small town in Gloucestershire, for five years. He has a lot of experience but business in the town is slow. After paying taxes and wages for a personal assistant who takes care of accounting and administration, his profits are low. One day he sees the following advert online.

FOR SALE  SPACIOUS PREMISES IN CHELTENHAM’S PEDESTRIAN SHOPPING AREA.  IDEAL FOR A RETAIL SHOP. £250,000  PHONE: 01242 673 422

Cheltenham is a large, prosperous town in Gloucestershire. It attracts people from many of the small towns in the county and the pedestrian shopping centre is in the centre of town. Alex is very interested in the prospect. He discusses the matter with his family and goes to visit the premises. Here are his notes.

FAMILY MEMBERS INTERESTED PREMISES Area Portland Street, between a bank and supermarket. Near to post office, car park, city Information Office and town hall. Competition two nearby travel agencies. The nearest only 500 m. away. Premises 120 m2. Renovation and furnishing expenses probably £100.000. Cost expensive but should be worthwhile due to the excellent location.

128

Me five years, as Travel/Estate Agent group of established, loyal customers Kate (sister) experienced accountant, at present living in Paris Dad retired - willing to contribute capital

FINANCES Sales of premises in Tewkesbury £150,000 (approximately) Family savings (Dad) £100,000 Contribution from Kate £50,000 Total £300,000 Total needed: £350,000 Short of £50,000 bank loan??

The business world

2

COMPREHENSION CHECK

1

Answer the questions. 1 Why doesn’t Alex Leigh make much profit in his present business? 2 What does he see advertised online? 3 Why do you think he is interested in the advert? 4 What problems does Alex face in relation to the purchase and operation of the business? 5 How many members of his family are interested in the business venture? 6 How do they propose to raise the money needed to buy, renovate and furnish the premises?

PROBLEM SOLVING

2

Work in groups and do the following: a Look at the information of all types of business organisations on pages 98-100 and decide which type would be most appropriate for this case study. b List the possible problems Alex and his family may face in their first two years of operating and discuss ways of avoiding or coping with these problems. c Decide whether Alex and his family should go ahead with the business venture. List reasons for your decision. d Share your ideas with the rest of the class.

COMPETENCE

3a b

Alex and his family make the decision to go ahead with the venture. They decide to form a partnership and Alex and his father go to a solicitor to ask for advice. ROLE PLAY Work in groups of three. Look at the role play cards below, decide on your roles, then build up a dialogue using the information given.

Card 1

c

Card 2

Alex Leigh

Solicitor

You go to ask for advice about partnerships.

You provide Alex Leigh with advice about partnerships.

• Explain about the proposed business venture. • Ask for advice about the different forms of partnerships. • Give information about the number of partners and the amount of capital/ labour each will invest. • Accept any advice and ask about the procedure and documents required. • Thank the solicitor and say that you’ll make a decision as soon as possible.

• Explain that two forms of partnerships are possible: an unlimited and a limited partnership. • Ask for information about the partners involved. • Give details of the advantages and disadvantages of each form of partnership. • Give advice about the form suitable for them. • Explain that your office will take care of all bureaucratic formalities.

Act out your conversation for the rest of the class. 129

DIGITAL EXPANSIONS

DIGITAL EXPANSIONS

Module 2 • Sole traders (SB p. 98)

Ann Herbert: Photoart

• Applying for a job (SB p. 118)

E-application form

• Case study: Diesel (SB p. 101)

Case study: Lambretta

• Franchising (SB p. 102)

Case study: Crocodille

• Business growth (SB p. 106)

Case study: Patak Indian Food

• VIDEO: A job interview

• VIDEO: Diesel Jeans

• ESAME DI STATO

Marketing

3

BU S I N E SS C

EORY

M MU

NICATIO

B U SI N

S

TH

O

ES

2 Marketing

BU

UA

GE

N

BUILD YOUR COMPETENCE

S IN

ESS LA

2 The imperative 2 Adjectives

NG

2 Listening: Market research: consumer panels 2 Speaking: Market research: focus group 2 Reading: Analysing adverts 2 Writing: Writing adverts

BUSINESS THEORY

Marketing Business today is highly competitive because a lot of companies produce similar things and all of them want the consumer to buy their goods. In order to be successful, a producer has to develop a product that meets the needs and wants of consumers better than other products. That’s why marketing is so important. Marketing is a planning process that identifies, anticipates and satisfies customers’ requirements profitably.

The marketing concept The marketing concept is the philosophy that companies must meet the needs of their customers to achieve success. The potential customer becomes the centre of all the activities of an organisation. Companies try to find out exactly what the customer needs or wants through market research. They analyse their findings and then attempt to create and develop a product that fulfills the requirements.

1 RESEARCH THE MARKET • collect market data • record market data • analyse market data

THE MARKETING CONCEPT

2 PLAN AND DEVELOP

6 PRICE THE PRODUCT

5 PLACE THE PRODUCT

• identify customer requirements

• channels of distribution

THE CUSTOMER

3 PRODUCE THE PRODUCT

4 PROMOTE THE PRODUCT

• incorporate customer requirements

• advertising • sales promotion • personal selling

The marketing process Marketing can be broken down into four main steps:

Situation analysis The situation is analysed to understand and anticipate customers’ needs and desires and to identify business opportunities.

132

Marketing strategy A marketing strategy is developed.

Marketing mix decisions Tactical decisions are made regarding the marketing mix (product, price, place and promotion).

Implementation and control The plan is implemented and the results are monitored.

Marketing

3

ACTIVITIES 1

What do these definitions refer to? Read page 132 and write the correct terms. 1 ......................................................... is a strategic planning process that identifies, anticipates and satisfies customers’ needs and wants in a profitable way. 2 ......................................................... is a marketing philosophy which sees the customer as the central focus of all the activities of a company. The company must find a way to discover unfulfilled customer needs and wants and then produce and market products that satisfy them.

2

Answer the questions. 1 Why is marketing important for producers? 2 What must companies do in order to achieve success? 3 How do companies find out customers’ needs and wants? 4 What four steps make up the marketing process? 5 How many components are there in a marketing mix? What are they?

3

Read ‘The marketing process’ again and fill in the gaps with the words given. Then listen and check. information • analysed • offered • market • pricing • monitoring • customer • plan • implemented • decisions • campaign • process • products • sequence The marketing process is a ............................ (1) of four steps. First of all, the situation is ............................ (2) to identify opportunities to satisfy ............................ (3) needs and wants. If the situation reveals gaps between what consumers want and what currently is ............................ (4) to them, then there may be opportunities to introduce new ............................ (5) which satisfy those consumers better. At this stage a strategic ............................ (6) for pursuing the opportunity can be developed. Market research will provide specific market ............................ (7) that will permit the firm to select the target ............................ (8) segment. Detailed tactical ............................ (9) then are made regarding the marketing mix. These relate to product development, ............................ (10) decisions, distribution contracts and the development of a promotional ............................ (11). At this point in the process, the marketing plan has been developed and ............................ (12) and the product is launched. But the marketing ............................ (13) does not end with implementation – continual ............................ (14) and adaptation is needed to fulfill customers’ needs over the long-term.

4

Listen to an interview with a marketing expert. Choose the correct alternative. 1 In the past companies were product/market orientated. 2 Marketing was more concerned with identifying consumer needs/selling a product. 3 Today’s markets are more/less competitive. 4 Nowadays companies research the market before/after they start to develop a product. 5 Today marketing starts/starts and ends with the consumer. 6 The use of the Internet and other forms of classical/digital marketing media is very popular.

133

BUSINESS THEORY

Situation analysis: market research Market research is the study of market characteristics (e.g. age, income 1, attitudes, etc.) to obtain clear information about what consumers want or need. The analysis of market research data influences the production, the price, the distribution and the promotion of a product or service. METHODS OF MARKET RESEARCH

• Primary or field research is carried out directly with consumers. It is an useful way of collecting up-to-date and relevant information about consumers’ needs, wants, attitudes and opinions, but it can be expensive and time consuming. The research methods include the Internet, telephone or mail surveys, product testing and face-toface discussions with consumer groups.

1 income: reddito 2 figure: dato

• Secondary or desk research uses existing information such as sales figures 2, statistics from official publications and market research reports. It is a useful way of examining the entire market and analysing future market trends. This type of research is cheaper than field research but the available data is not always relevant to a specific product and is sometimes out of date.

ACTIVITIES 1

Read this page and complete the definition. Tick (✓) the correct ending. Market research is the study of 1 the system of buying and selling 2 what people want or need. goods in a certain market. 3 a business cycle.

2

Complete the tables. Primary / field research Source of information: Research methods: Advantages: Disadvantages: Secondary / desk research Source of information: Research methods: Advantages: Disadvantages:

3

134

Work in small groups. Discuss the best methods of market research for the following: 1 to find out customers’ reactions to new product packaging 2 to analyse the sales of competing products over the last year 3 to find out how much of their free time teenagers spend online 4 to evaluate the level of customer satisfaction with a product.

Marketing

3

Marketing strategy: STP An important aspect of the marketing strategy is the STP process. STP stands for Segmentation, Targeting and Positioning. The STP process enables companies to examine the market as a ........................................ (1) and decide on who they are going to ........................................ (2) within the market and what position their ........................................ (3) or service will have in relation to other similar offers. The goal is to help the company develop and ........................................ (4) an appropriate marketing mix. The first step in the process, market segmentation, can be defined as the division of the overall market into smaller groups with similar ........................................ (5), needs and wants. The market may be divided by factors such as age or gender, for example, or other indicators, such as ........................................ (6) or income. This helps a company evaluate the potential of each ........................................ (7) and select one of them for its marketing program. This segment is known as the target market. After a target market has been selected, a company has to consider how it wants the ........................................ (8) in that market to perceive their products or services in relation to their competitors’ offers. For example, do they want consumers to think that their products are of high

MARKETING MIX

........................................ (9) or are basic compared to other similar ........................................ (10) in the shops? This stage is called positioning. Once a company has a clear strategy in relation to the market it wants to target and the positioning of its product or service, it can start to think about specific aspects of marketing (for example ........................................ (11) , placing and promotion) and develop an appropriate ........................................ (12) mix.

S

SEGMENTATION

T

TARGETING

P

POSITIONING

ACTIVITIES 1

Read the article and complete the gaps with the words given. implement • marketing • product • quality • price • target • consumers • location • items • whole • segment • characteristics

2

Listen and check your answers.

3

Answer the questions. 1 What do the letters STP stand for? 2 Why do market researchers divide the overall market up into segments? 3 On what basis does a company select a target market? 4 What do companies consider when they think about positioning their products? 5 How does the STP process help companies develop an appropriate marketing mix? 135

BUSINESS THEORY

The marketing mix Companion Book, p. 42

To market its products profitably, a business has to develop an appropriate marketing mix. Traditionally the marketing mix consisted of four main factors, known as the 4Ps. In the perfect marketing mix: • the design and quality of the product compares well with competitors’ products • the price is attractive and competitive • the product is distributed to the right selling place at the time when it is wanted • the product is well promoted.

 PRODUCT The product is the most important factor in the marketing mix. Each product has elements that distinguish it from similar products, for example its design, shape, colour and size. Manufacturers use these features to differentiate the goods they produce from their rivals’ products. Branding goods is another traditional and successful method of differentiation. A brand name is a trade name that can only be used by the firm that has registered it. People are very brand conscious so the brand name often helps sell a product, particularly when the name is well known, for example Coca Cola or Microsoft.

 PRICE The price of a product can depend on internal factors, such as the cost of production, and external factors, such as the price of competing products on the market. External factors are often more important than internal factors. Prices are set using market-led pricing strategies which consider factors like supply and demand, the state of the economy and the amount of competition. The price is the most direct way a business can convey  1 the quality of its products. It can be used to reinforce the marketing campaign and to attract the selected target market.

 PLACE (distribution) Place relates to how a business distributes its products. It involves providing the product at a place which is convenient for consumers to access. In order to do this, companies need to consider how and where the target market prefers to shop, whether that be in a traditional outlet, over the phone, via a catalogue or online.  PROMOTION Promotion is the way in which a business draws attention to itself and its products. It includes elements such as advertising, public relations and sales promotion. 1 convey: trasmettere

Marketing

3

• list price • discounts

• design

• sales promotion

• quality • branding

PRODUCT

• payment methods

PRICE

• payment period

• packaging

• locations • advertising • public relations

PLACE PROMOTION

• logistics • transport

ACTIVITIES 1

Read ‘The marketing mix’ on page 136 and explain why it is also known as the 4Ps.

2

Read page 136 and answer the questions. 1 How is an appropriate marketing mix good for business? 2 What elements should manufacturers consider when developing a product? 3 What is branding? 4 Why are brands important? 5 How are prices set? 6 What message can businesses convey by the price they select? 7 What does place relate to? 8 What is promotion? What elements does it include?

3

Find the following: 1 two adjectives for a perfect price 2 two well-known brands 3 an example of an internal factor that may influence the price of a product 4 an example of an external factor that may influence the price 5 the factors considered by market-led pricing strategies 6 four ways of shopping.

4

Prepare an oral report about the marketing mix. Follow these guidelines: • explain what the marketing mix is • say what the perfect marketing mix is composed of • give more information about each element.

5

Work in pairs. Discuss with a partner. • What branded items are you wearing at the moment? • Are brands important to you? Why? 137

BUSINESS THEORY

Marketing services The traditional marketing mix with the 4Ps – Product, Price, Place and Promotion, is most widely used for marketing physical products. When the relevant product is a service, three other factors are usually taken into consideration. Companion Book, p. 42

 PHYSICAL EVIDENCE Physical evidence relates to the environment in which the service is delivered. For example in the hotel industry, the design, furnishing, lighting, layout and decoration of the hotel will influence customer perceptions of the service quality.  PEOPLE This includes all of the people that are involved in executing the service. They directly contribute to service quality by creating a favourable image for the company.

1 query: richiesta

 PROCESS This factor relates to the processes and systems within the organisation that affect the execution of the service. For example the length of time that people have to wait for a service and the way in which customer queries 1 are handled. Creating effective service processes are essential tasks for service companies.

ACTIVITIES 1

2

Read this page and correct the statements. 1 The traditional 4Ps marketing mix is most widely used for marketing services. 2 Physical evidence relates to how a service is executed. 3 Design and furnishing are not considered by customers when choosing a hotel. 4 The people operating in a company are not important for the image of the company itself. What factors do each of the statements below refer to? 1 Employees who are in contact with customers should be properly trained. 2 After sales, support and service is an important element in a company. 3 Clean, tidy and well decorated reception areas are essential facilities for a company.

138

Marketing

Digital marketing Digital marketing is the promotion of products or services via electronic devices such as personal computers, smartphones, tablets and games consoles. The Internet is the channel most closely associated with digital marketing, but other channels include text messaging, mobile apps, electronic billboards and digital television. Most experts believe that ‘digital’ marketing differs widely to classical marketing and requires a new approach and a new understanding of customer behaviour.

3

Companion Book, p. 52

SIX DIFFERENCES Classical marketing UNIFORM, STRUCTURED, CLEAR advertising campaigns, service phonelines UNDIRECTIONAL (ONE TO MANY) information distributed by company (active), consumers only listen (passive) LONG-RANGING ad campaigns are planned both over and for a long period of time WELL CONSIDERED & REVIEWED communication only between company and consumer (via e-mail, phone or letter) point of discussion is kept secret DURING WORKING HOURS no direct support beyond regular working hours SPECIFIC optimised for certain target audience and markets

Digital marketing

Type of marketing

..........…...................................... (1) status updates, ad campaigns, blog articles, community posts, Twitter messages, etc.

Direction of communication

..........…...................................... (2) both company and consumers talk and listen (both active)

Scheduling

..........…...................................... (3) ad campaigns not planned in detail but reactions to comments and requests

Communication with consumers

..........…...................................... (4) reactions to comments are immediate and public, anyone can read and join a discussion

Availability

..........…...................................... (5) constant readiness to react to (negative) comments and consumer requests, replies expected within max. 24 hours

Scope

..........…...................................... (6) available for anybody, anywhere (optimised for the public)

ACTIVITIES 1

Read the first paragraph and answer the questions. 1 What is digital marketing? 2 What electronic devices can be used for digital marketing? 3 What channels are usually associated with digital marketing?

2

Look at the document listing the differences between classical and digital marketing. Insert the missing headings for digital marketing. Choose from: general • fast, public • divided, varied, unclear • permanent (24/7) • multidirectional (many to many) • spontaneous

3

With the help of a dictionary translate the document into Italian. 139

BUSINESS THEORY

Companion Book, p. 48

Advertising Advertising is part of the marketing mix and is one of the main methods of promotion. It is used to promote existing products, introduce new products onto the market, attract new customers, improve the company image and increase the market share. ADVERTISING MEDIA

Advertisements can be seen or heard in a wide range of media. Some of the most popular include newspapers and magazines, television, the radio, the cinema, computer screens, the phone, forms of transport and billboards in public places. Television, radio and the Internet are popular advertising media because they can reach millions of potential customers. TV advertising can be very effective, but the adverts are expensive to make and broadcast. Adverts transmitted by commercial radio are less expensive but they reach fewer people. Web advertising (e-mails, banners, etc.) has the advantage that it can be linked directly to the purchase of a product. There are a lot of online adverts, however, and many people ignore or don’t notice them. A lot of companies choose to advertise in national or local newspapers or magazines. If they are trying to reach a specific target group, they may choose to advertise in a special-interest magazine, for example a magazine for women or children. This form of advertising is more permanent and the advert can include a reply slip. It is less expensive than TV advertising but the advert is static, silent and sometimes doesn’t have any colour. The choice of advertising media depends on many factors:

the amount of money a company can invest in advertising

the product and the product price

140

the size and nature of the target market

the proportion of the target market that can be reached through a particular medium

Marketing

3

ACTIVITIES 1

Read page 140 and answer the questions. 1 What are the main functions of advertising? 2 What are the most popular advertising media?

2

Look at the adverts and complete the table.

1

2

3

4

Advert

Advertising medium

Product advertised

1 2 3 4

3

Read ‘The choice of advertising media’ on page 140 again and list the advantages and disadvantages of the following media: • television ads • online adverts • radio ads • adverts in the press.

4

Think of your favourite advert. Make notes about it, then present it to the class. Focus on the following: • product or service advertised • advertising message • advertising medium • factors that make it a good advert. • target market 141

BUSINESS THEORY

MEDIA FILE

A packet of crisps and a tweet, but does the tweet increase sales? Everyday goods can build massive social media followings. Great for reputation, but the impact on sales is hard to quantify. Companies that produce fast-moving consumer goods (FMCG), such as food, drink, personal care and cleaning products, have found imaginative ways of increasing their interaction with fans and followers on social media. Kettle Chips, a famous brand of crisps, has collected 170,000 Facebook likes and Twitter followers by allowing the public to influence its product development strategy. Senior brand manager Sam Garnham says: ‘We have used social media to help our new product development, for example for our Smoked Paprika with Porcini flavoured chips. This makes consumers feel involved as they can have an impact on our decision-making.’

Even relatively unglamorous FMCG products have managed to find social media success – Procter & Gamble’s electrostatic duster  1 the Swiffer has built up a following of over a million fans on Facebook, while the Reckitt Benckiser air freshener Air Wick has 1.25 million. People actually want to talk about these products if given a good reason. But does online interaction with brands translate into sales? A study last year by the Internet Advertising Bureau showed that social media is effective at boosting brand loyalty and re c o m m e n d a t i o n . Four out of five consumers told

ACTIVITIES WARM UP

1

4 How many fans do they have? 5 What results did the research by the Internet Advertising Bureau show? 6 How do consumers react to social media marketing? 7 How may brands get better marketing results? 8 What is the negative aspect of pricecutting activities on a brand’s reputation?

Read the first paragraph of the article and find: 1 what FMCG stands for 2 four categories of FMCG.

COMPREHENSION

2

142

Read the article and answer the questions. 1 What forms of social media has Kettle Chips used to market its products? 2 What new product have they launched using social media? 3 What other FMCG products have built up a following on social media?

3

Now list: 1 the number of Facebook fans that Red Bull and Coca Cola have 2 three popular FMCG brands in Britain 3 a blogging site 4 two photo images sites.

researchers that they would be more inclined to buy a brand after being exposed to its social media presence. However, while products that can be bought online – clothes, electronic goods, financial products or holidays – can directly attribute a sale to digital activity, it is harder to find a direct link between someone becoming a Facebook fan of a crisp brand and then going out and buying the product. Some evidence suggests that brands can have better results through shopper marketing activity, such as on-shelf discounts, offers and competitions, than by investing similar sums in social media activity. The advantage of social media, however, is that it adds to the brand’s reputation while price-cutting activities can weaken the brand’s image and make it look desperate. There are a number of FMCG brands which have made great use of social media and have become some of

4

5

the most talked about brands on the web. Globally, Red Bull has over 42 million Facebook fans, while Coca Cola has nearly 80 million. In the UK, brands such as Cadbury’s Chocolate Creme Egg, Ben & Jerry’s ice cream and Pringles crisps are amongst the most popular FMCG brands on Facebook with around two million fans. These brands, however, were already top sellers before the rise of social media, so it is hard to tell how far their sales have been increased by their digital activity. FMCG brands are experimenting more and more with different social media. Blogging sites such as Tumblr and photo image sites such as Instagram and Pinterest offer brands the chance to experiment with different packaging designs and get feedback from consumers, for example. People are surprisingly eager to talk about mundane 2 products such as crisps, chocolate bars and cleaning implements 3 on social media. FMCG brands need to find clever ways to build on 1 duster: straccio this enthusiasm. The immediate per la polvere impact on sales, though, is hard 2 mundane: di uso to quantify. comune (Source: The Guardian)

3 implement: strumento

Complete these statements. 1 FMCG brands are using different social media to experiment ..................................................... 2 Through social media FMCG brands can get .............................................................................. 3 Consumers are keen to .............................................................................................................. 4 It isn’t easy to quantify ................................................................................................................

. . . .

What do these words mean? Tick (✓) the correct answer. massive a exceptionally large b exceptionally heavy unglamorous a cheap b dull evidence a notice b indications desperate a in great need b dangerous eager a full of desire b full of anger

1 2 3 4 5

PRODUCTION

6

Write a short paragraph explaining why companies are interested in marketing their products via social networks. Add a few lines describing your reaction as a consumer when you receive promotional messages via Facebook or Twitter.

143

BUSINESS LANGUAGE

The imperative Form Affirmative

Go! Relax!

Enjoy yourself!

Buy now!

Negative

Don’t stop!

Don’t worry!

Don’t go!

1 The second person imperative has only one form which is used to address one or more people. It corresponds to tu, Lei or voi in Italian. 2 The pronoun you is not used. The affirmative has the same form as the base form of the verb. For the negative you put do not (don’t) in front of the verb.

Uses Orders or commands

Be quiet!

Do not turn over the page!

Instructions or directions Write on the dotted line.

Don’t take the long road.

Suggestions

Relax! Have fun!

Don’t worry!

Invitations

Come and see for yourself!

Don’t hesitate to visit us!

Offers

Have a coffee.

All five uses of the imperative can be found in advertisements.

144

Marketing

3

ACTIVITIES 1

Complete the advert slogans with the affirmative or negative imperative of the verbs given. go • stretch • get • make • paint • let • miss • leave 1 ........................................ somewhere you’ve never been before! 2 ........................................ home without it! 3 ........................................ the body you’ve always wanted! 4 ........................................ the most of the sun! 5 Stress? ........................................ it hold you back! 6 ........................................ the town red! 7 ........................................ our special offers! 8 ........................................ to the limit with Lycra!

2

Complete the adverts with the imperative of the verbs given. walk • party • come • let • sit • watch A

New York New York

cut out • let (x2) • take • try B

SPECIAL OFFER! 20% discount

.......................... (1) your hair do the talking with our beautiful range of hair products. Available in most department stores. .......................... (2) this advert and .......................... (3) it to the store for a 20% discount! .......................... (4) it today and ............................. (5) your hair shine!

.............................. (1) to the city that never sleeps! .............................. (2) the streets of Manhattan, .............................. (3) and relax in Central Park, .............................. (4) a musical in Broadway or .............................. (5) all night in Times Square! .............................. (6) New York into your heart!

3

TRANSLATION Translate these advert slogans. 1 Chiama di più... paga di meno! (risparmia fino al 70%) FASTLINE 2 Tuffati in un sito fatto per te, www.foxkidsitalia.it 3 Porta l’inglese a casa. Compra Inglese facile! 4 Esprimi il tuo stile. Usa American Express! 5 Lavora meglio, lavora più velocemente e finisci prima! Microsoft. 6 Non perdere l’occasione! Aumenta la competitività, diminuisci i costi 145

BUSINESS LANGUAGE

Adjectives Adjectives are very important in advertising. They are used to describe products, services or companies. The description can be: Factual

Based on opinion

A hand-made necklace.

A luxurious hotel.

A waterproof watch.

A stylish car.

A digital camera.

A superior wine.

ACTIVITIES 1a

Work in pairs. Divide the adjectives below into two categories. List them in the table. waterproof • stylish • small • perfect • luxurious • precious • hand-made • compact • innovative • unique • smooth • contemporary • accurate • precise • leading • outstanding • modern • high-quality • superior • classical

FACTUAL DESCRIPTION

b 2a

OPINION

Compare your lists with those of the class. Do you disagree about any of the adjectives? Look at the adverts and underline the most appropriate adjective for each alternative given.

A contemporary/classical (1) range of furniture made from expensive/high quality (2) walnut, cherry and oak woods. The furniture will last a lifetime and is (3)

value for money. A perfect/leading (4) choice for an efficient/elegant (5) house.

These innovative/accurate (1) sports shoes are made from high-tech/hand-made (2) materials. Comfortable/Waterproof (3) even on the rainiest days! Each model comes in a variety of different/unique (4) colours.

Keep evolving with

EVO! A

B

b 146

Discuss your choice of adjectives with the class.

Marketing

3

ACTIVITIES 3a

Descriptive nouns are also very important in advertising. Complete the tables with the noun forms. Adjective

b

4

Noun

Adjective

convenient

luxurious

decorative

perfect

excellent

precise

innovative

revolutionary

leading

strong

Noun

Rewrite the sentences using the words given and nouns from the table in ex. 3a. 1 Do you want perfect products? Are you looking for ........................................? 2 Our excellent performance is our strong point. Our ........................................ is our No. 1 ........................................ . 3 Leading the world for innovative ideas. World ....................................... for ....................................... . 4 The new range of watches are both luxurious and precise. The new range of watches. ........................................ and ........................................ combined.

Look at the adverts and choose the most appropriate noun to complete each slogan. strength • luxury • style A

...................... (1)

size • precision • detail

difference • cost • convenience B

C

...................... (3)

...................... (2)

147

BUSINESS COMMUNICATION

Taking part in market research Consumer panels Sometimes research companies and businesses carry out their market research via consumer panels. A consumer panel is made up of a group of consumers in a specific market sector who have agreed to provide market research information at regular intervals over a period of time. Consumer panels can provide valuable insight into product acceptance before a product is launched or can be used to evaluate the effects of a change in packaging at a later stage. One of the most common uses of consumer panels is in product testing.

1a

Listen to five people talking about and giving their personal opinions of the products illustrated. Match opinions and products. Opinions Products 1 a A 2 b 3 c 4 d B 5 e

C

E D

b

Listen again and tick (✓) the correct box for each opinion on product tested. Positive Speaker 1 Speaker 2 Speaker 3 Speaker 4 Speaker 5

148

Neutral

Negative

Marketing

3

Focus groups Market researchers use focus groups when they need detailed information about a product or an idea. A group of people from a particular market segment is brought together and asked to discuss a series of questions set by the researchers. Participants in focus groups have to give opinions and to agree or disagree with other opinions. Here are a number of standard phrases that can be used to do this.

Key language What do you think about... (this aspect)? What’s your opinion of... (the advert)? ASKING FOR AND GIVING AN OPINION

I don’t think it’s / that’s a good idea. In my opinion, it’s... (a good project). Personally, I feel it’s... (very offensive). I agree with you.

AGREEING

That’s true. I disagree with you.

DISAGREEING

1a

b

Actually, I think...

Look at the photos below. Choose one of the products and answer the questions with personal answers. 1 What do you think of the product design? 2 Who should the product be marketed at? 3 Would you buy this product? 4 How much would you be prepared to pay for it? 5 Where do you think it should be sold? Discuss your answers in a group. Express your opinion.

149

BUSINESS COMMUNICATION

Reading adverts

1

2

1

Look at the adverts, then discuss these questions with the class. 1 What products are the adverts promoting? 2 Who do you think the adverts are targeted at? 3 What are the main messages of the adverts? 4 What are the main colours in the adverts? Why do you think they were chosen? 5 What atmosphere do the photographs create? 6 What are your opinions of the adverts? Are they effective or not?

2

Read the adverts and complete the table with all the nouns and adjectives used. Nouns

150

Adjectives

Marketing

3

Writing adverts

Google Glass Product information

▶ calling with AT&T or Verizon (American telecommunication companies) ▶ Google search built-in ▶ Google + integration ▶ Google translate support ▶ 4G connectivity + Wifi

▶ ▶ ▶ ▶ ▶ ▶

1080p camera GPS full App support self-updating voice command price: $1,500

▶ target market: short term: digital natives innovators long term: mass market

1a

Work in small groups. Look at the product above and read the information. Write a short advert following the guidelines. Then discuss the product. • What is it? • What is the short term target group? • What features of the product would appeal to this target group?

b

Make a list of the adjectives and nouns which you could use to: 1 give factual information about the product 2 express opinions about the product.

c

Invent a slogan. Using the information you have collected, try to invent a slogan for the advert. Remember: • a slogan should be short and attract the reader’s attention • it should relate to the image • it should highlight one of the key features of the product.

2

Write a paragraph describing the product. Use these guidelines. • State what the product is and describe it. • Highlight its special features. • Compare the product with its competitors. • Tell the target audience to act now.

3

Present your adverts to the class. Vote on the best advert and discuss why. 151

BUSINESS COMPETENCE

Key vocabulary Marketing 1 • market research • STP process • secondary research • primary research • marketing concept • marketing

Complete the definitions with the words given. 1 ..................................... is a complex planning process that identifies the needs and wants of potential customers and creates a product or service to meet their requirements. 2 The ..................................... is the philosophy that sees the potential customer as the centre of all the activities of a company. 3 ..................................... is a method of obtaining information about consumers by studying reports and collecting new data. 4 ..................................... obtains information directly from market research surveys of the consumers. 5 ...................................... collates information which already exists due to other people’s research. 6 The ..................................... is an important aspect of the marketing strategy which enables companies to examine the market.

The marketing mix 2 1

Complete the diagram with the missing headings. 2

THE MARKETING MIX = THE FOUR Ps 3

152

4

3

For each of these elements write the correct ‘P’ of the marketing mix. 1 payment methods and periods 5 public relations 2 advertising 6 list price 3 logistics 7 design 4 branding 8 locations

4

Choose the correct alternative. 1 The four steps of marketing are known as the a marketing concept. b marketing process. 2 The division of the overall market into smaller groups with similar characteristics, needs and wants is known as a segmentation. b targeting. 3 A trade name that can only be used by the company that has registered it is called a brand b target. 4 The way in which a business draws attention to itself and its products is called a coverage. b promotion. 5 The promotion of products or services via electronic devices is known as a digital marketing. b classic marketing.

Marketing

3

Business skills DISCUSSING PRODUCTS

1a

Think of two similar brands of product that compete in the same market. Choose from one of the categories below: soft drinks • pasta • snacks • bread and cereals

b

Compare the products. Use the questions below to help you. 1 What target market are they for? 2 Which product has better design and quality? 3 Which product has a more attractive price? 4 Which product has better packaging? 5 Where are the products placed? Are they always easy to find and purchase? 6 How are the products promoted? What forms of media are used for promotion? How memorable are their adverts?

c

Now decide which of the two products has the better marketing mix. Explain your choice to the class and give reasons.

ANALYSING ADVERTS

2

Choose an advert that you like in a newspaper or magazine. Write a paragraph describing it. Answer these questions in your description. 1 What product is the advert promoting? 2 Who is the advert targeted at? 3 How does the picture appeal to the target market? (Think about images, colour, atmosphere.) 4 How persuasive is the language used in the advert? 5 Why do you like the advert? 6 Would you buy the product?

PROMOTING A SERVICE

3

Write a short text about how tourism is promoted in the town where you live. Follow the guidelines. • Explain where the town is. • Describe the geographical features of the area. • Talk about any aspects of the area that attract tourists. • Say what is done to promote tourism in your town. • Give your opinion about whether or not you think better marketing techniques could increase tourism in your area. • Give some ideas about what could be done.

153

BUSINESS COMPETENCE

CASE STUDY

Into work

ALTERNANZA SCUOLA-LAVORO

Problem solving: marketing strategies In a survey carried out in 2013 by Retailing Magazine, Ronzoni pasta was rated the fourth best selling brand within the highly competitive grocery market in the USA. The following year, however, saw Ronzoni’s net profits fall by 34%, which led to the appointment of a new marketing director and the development of a tough marketing strategy.

 Sales

2012-2013 $1,634 million

 Performance

Ronzoni is the dominant pasta in the USA with a 35% share of all pasta sales. They also have new and growing markets in Canada, Mexico and Brazil.

 Marketing support

Ronzoni claims to be the only pasta brand in the USA which continues to invest ‘vast amounts’ to support the brand.

 Brand history

The Ronzoni family established the company in Chicago in 1902 and remains in control of the entire production process. Ronzoni products are considered to be of a high quality.

Food

Pasta is strained The USA’s pasta makers are suffering from a price-cutting war and a rise in the cost of wheat –

pasta’s main ingredient. Net profits at the Chicago based Ronzoni empire, one of the world’s biggest pasta producers, fell by 34% last year. The familyowned company, which recently employed Charles Wilson, the former chief of

154

Marketing COMPREHENSION CHECK

1

Read these pages and answer the questions. 1 What was Ronzoni’s turnover in 2012-2013? 2 What percentage share did they have of pasta sales in the USA? 3 Where were their new markets growing? 4 Why did they suffer a sharp fall in profits in 2013-2014? 5 Why was Charles Wilson appointed? 6 What new policy was implemented in 2014?

PROBLEM SOLVING

2

Work in groups.

a

Price is one of the 4Ps in the marketing mix (Price, Product, Place and Promotion). Discuss the possible positive and negative effects for Ronzoni of a ‘tough cutprice policy’.

b

Discuss other marketing strategies that Ronzoni could employ in order to increase sales on the home and foreign markets.

COMPETENCE

3

Debating. As a class discuss whether you agree or disagree with the following statements. • Ronzoni’s policy of price reduction may have negative effects on the public perception of their products as ‘high quality’. • Ronzoni could consider a policy of selective price reduction, focusing particularly on new foreign markets. • Ronzoni could use a range of other effective marketing strategies to compete against their rivals and promote sales.

Saracen & Wyatt, to ‘make Ronzoni pasta more flexible to market needs’, began a tough cut-price policy this year. ‘We need another six months to see the results of the cut-price strategy,’ the company said. Ronzoni produces 35% of the pasta eaten by Americans, who consume about 20kg per person each year.

3

DIGITAL EXPANSIONS

DIGITAL EXPANSIONS

Module 3 • Marketing (SB p. 132)

Marketing basics

• Situation analysis: market research (SB p. 134)

Online questionnaire School students used for market research

• The marketing mix (SB p. 136)

Channels of distribution

• Advertising (SB p. 140)

Control over advertising

• VIDEO: A marketing meeting

• VIDEO: Case Study – Psychology of an Apple fanatic

• VIDEO: Case Study – Heinz and packaging

• VIDEO: Scent marketing

• ESAME DI STATO

Enquiring

4

BU S I N E SS C

EORY

M MU

NICATIO

B U SI N

S

TH

O

ES

2 Foreign trade terms 2 Methods of payment

BU

2 2 2 2

UA

GE

N

BUILD YOUR COMPETENCE

S IN

ESS LA

NG

Requesting (2) Granting/refusing requests Easily-confused words: questioning Word groups

2 Enquiries 2 Replies to enquiries

BUSINESS THEORY

Foreign trade terms Sales contract A sales contract is an agreement between two parties, the seller and the buyer, relating to the purchase and sale of goods. Before the contract is signed both parties are free to negotiate the specific terms of their contract. These terms include a number of issues regarding: • the goods ordered • their delivery • the methods of payment.

TERMS REFERRING TO THE GOODS QUALITY by description

the goods must correspond closely to the description given by the seller

by sample

the goods must correspond to the sample submitted by the seller

on approval

the buyer has the right to examine the goods before accepting them QUANTITY

by number

the quantity of goods must correspond to the exact number ordered by the buyer

by weight

the weight of the goods must correspond to the weight ordered PRICE

unit price

the individual price of each item ordered

total price

the total amount that the buyer is expected to pay

ACTIVITIES

158

1

Read this page and answer the questions. 1 How many parties are there in a contract of sale? 2 What is the object of the contract? 3 What do trade terms refer to? 4 What does the term ‘goods on approval’ mean? 5 What type of goods do you think are usually ordered by weight? 6 What does the unit price refer to?

2

Find the English equivalents for the following: 1 contratto di vendita 5 condizioni contrattuali 2 venditore 6 consegna 3 compratore 7 metodo di pagamento 4 acquisto 8 campione.

Enquiring

4

Delivery In international transactions the quotation 1 is made according to a set of international trade terms called Incoterms (INternational COmmercial TERMS) established by the International Chamber of Commerce (ICC) in Paris and first published in 1936. Incoterms are used all over the world and are regularly updated to reflect the changing methods of transport and document delivery. They are recognised as the international standard by customs authorities and courts and clearly define the costs, risks and obligations of buyers and sellers in relation to the delivery of goods. In the most updated version, Incoterms 2010, there are 11 Incoterms grouped into four categories: Group E, Group F, Group C, Group D.

ANY TRANSPORT MODE

1 quotation: preventivo

ANY TRANSPORT MODE

SEA/INLAND WATERWAY TRANSPORT

INCOTERMS CHART OF RESPONSIBILI TY

CHARGES/FEES

EXW F CA FAS F OB CFR CIF Ex Works

Free Carrier

Free Free AlongShip on Board

Cost & Freight

C PT CIP

Cost Carriage insurance Paid & To Freight

DAT DAP D DP

Carriage Delivered Delivered Delivered insurance at at Duty Paid Paid Terminal Place To

B/S

S

S

S

S

S

S

S

S

S

S

Loading Charges

B

S

S

S

S

S

S

S

S

S

S

Delivery to Port/Place

B

S

S

S

S

S

S

S

S

S

S

Export Duty & Taxes

B

S

S

S

S

S

S

S

S

S

S

Origin Terminal Charges

B

B

S

S

S

S

S

S

S

S

S

Loading on Carriage

B

B

B

S

S

S

S

S

S

S

S

Carriage Charges

B

B

B

B

S

S

S

S

S

S

S

Packaging

S

Insurance

S

Destination Terminal Charges

B

B

B

B

B

B

S

S

S

S

S

Delivery to Destination

B

B

B

B

B

B

B

B

B

S

S

Import Duty & Taxes

B

B

B

B

B

B

B

B

B

B

S

B = buyer S = seller

E = Ex works F = Free

C = Carriage D = Delivered

ACTIVITIES 3

Read this page and answer the questions. 1 What are Incoterms? 2 What do they define? 3 How many Incoterms exist? How many categories are they grouped into? 4 Which Incoterm represents the minimum obligation for the seller? And the maximum? 5 Which Incoterms are used for sea transport only? 6 Does the seller have more responsibilities under FAS or FOB terms? 7 What expenses are paid by the buyer under CIF terms? 8 What is the difference between DAP and DDP terms? 159

BUSINESS THEORY

Risk assessment

1 importer’s credit standing: credito di cui gode l’importatore 2 rated: valutato

When choosing payment methods exporters have to take into account a number of factors because more risks are involved in international trade than in home trade. These include the importer’s credit standing 1, the country in which he operates and the degree of trust the seller has in him. If the buyer is rated 2 negatively for any of these factors, the exporter will select a method of payment which makes the transaction safer for him, such as payment in advance. If the buyer is rated positively, the exporter will usually grant a more favourable form of payment, such as an open account.

EXPORTER

IMPORTER

Highest risk

Lowest risk • Open account • Bank transfer • Clean bill collection • Documentary collection • Letter of credit • Payment in advance

Lowest risk

Highest risk

ACTIVITIES 1

160

Read this page and answer the questions. 1 Who decides the payment method in international trade? 2 What factors does he have to take into account when selecting a specific method of payment? 3 What are the basic methods of payment in international trade? 4 Which method of payment has the lowest amount of risk for the exporter? Why? 5 Which method of payment has the highest risk for the exporter? Why? 6 Under what circumstances would an exporter: – grant an importer open account terms? – insist on payment in advance?

Enquiring

4

Methods of payment Various methods of payment are used in international trade. Here are the most common.

Open account Open account 1 terms are the least secure form of payment for the exporter. They are only granted to regular, reliable customers who have agreed to pay within a specified time. This is usually 30, 60 or 90 days after the invoice date. When goods are delivered at regular intervals, a customer may be granted monthly or quarterly credit terms. He will then receive a statement of account (S/A) 2, a document which contains a list of all the transactions that have taken place during a fixed period of time and shows the amount owed by the buyer.

Bank transfer A bank transfer is the most common and the fastest system for international payments. The importer instructs his bank to transfer an amount of money to the exporter’s bank. If the payment is urgent, swift transfers can be arranged. SWIFT (Society for Worldwide Interbank Financial Telecommunications), a fast telematic system for inter-bank transfers, allows same day transfers between banks linked to the system.  3

1 open account: conto aperto 2 statement of account (S/A): estratto conto 3 bank transfer: bonifico bancario

ACTIVITIES 1

Read this page and tick (✓) the statements T (true) or F (false). Correct any false statements. 1 Open account terms are usually granted to well-known customers. T F 2 A S/A is sent by the buyer to the seller. T F 3 It is sent every time goods are delivered to the customer. T F 4 The exporter orders a bank transfer. T F 5 SWIFT transfer is a fast way of making international payments. T F

2

Read the document and complete the description with the missing facts. LOG NO: 001 826 SWIFT PAYMENT: 650 STATUS: COMPLETED DEBIT: 003 THJP FUX USD LAST UPDATED BY: TP CUSTOMER PAYMENT AMOUNT: 70,000 PAYMENT CURRENCY: EURO CHARGES: DEDUCT FROM DEBIT ACCOUNT VALUE DATE: 15 MAY 20.. ISSUING BANK: BANK OF AMERICA – DETROIT – BK 127 AD BENEFICIARY BANK: INTESA-SANPAOLO – MONZA – INT SA 127 4S2 BENEFICIARY ACCOUNT NUMBER: 675319 NAME: GEDI ELETTRONICA Srl ADDRESS: V.LE LIBERTÀ 44 – 20052 MONZA (MI) REASON FOR PAYMENT: INVOICE 5731 ORDERING CUSTOMER: LIGHT SYSTEM INC. – PHILADELPHIA

1 The ordering customer is ......................... . 2 The company has made an urgent transfer of € ......................... . 3 The money has been transferred to ......................... . 4 It was paid into the account of ......................... Srl on ......................... . 5 It was sent in payment of invoice ......................... . 6 The address of the beneficiary company is ......................... .

161

BUSINESS THEORY

Clean bill collection In this method, payment is made through a Bill of Exchange (B/E) or draft 1. A Bill of Exchange is a document that orders a bank (the importer’s bank) to pay a sum of money to another bank (the exporter’s bank). The B/E also specifies when the payment must be made. This can be at sight 2 or at a fixed future date. It is a very common method of payment in international trade because it is a relatively simple procedure and doesn’t require the attachment of any shipping documents. It can also be used as a form of credit for the importer because he can receive the goods but pay for them at a later date.

1 Bill of Exchange (B/E), draft: tratta 2 at sight: a vista 3 drawer: traente 4 drawee: trattario 5 term: a scadenza

Finally, it is a secure form of payment for the exporter because he doesn’t have to send the goods until after the B/E has been signed, at which point it becomes a legal document.

PROCEDURE

Who

What

1

Exporter

Before supplying goods an exporter (known as the drawer 3 in this transaction) draws a B/E and sends it to an importer.

2

Importer

The importer (referred to as the drawee 4) accepts the B/E by signing and dating it.

3

Exporter

When the exporter receives the signed B/E he dispatches the goods. He then passes the bill to his bank.

4

Exporter’s bank

The exporter’s bank forwards the B/E to the importer’s bank.

5

Importer’s bank

The importer’s bank presents the bill for payment. If it is a sight draft, it is paid immediately. If it is a term 5 draft, it is paid at a fixed future time.

ACTIVITIES 1

162

Read this page and answer the questions. 1 What is a B/E? What is it also called? 2 Why is it a common form of payment? 3 Who draws a B/E? Who does he send it to? 4 Who accepts the B/E? What does he agree to do? 5 Why is the acceptance important? 6 What happens when the exporter receives the signed B/E? 7 Who presents the signed B/E for payment?

2

Who does what? 1 ........................ draws a B/E. 2 ........................ accepts the B/E. 3 ...................... sends the B/E to the importer’s bank. 4 ....................... presents the B/E for payment or acceptance.

Enquiring

4

Documentary collection When shipping documents are required in an international transaction, the method of payment is known as documentary collection 1. For this payment method, the exporter still draws a B/E, which has to be signed and accepted by the importer before any goods are sent. Once the goods have been dispatched, the exporter sends the B/E plus all the relevant shipping documents – the invoice 2, the Bill of Lading (B/L) 3 and the insurance policy – to his bank. The exporter’s bank forwards the shipping documents to the importer’s bank when the B/E has been paid (Documents against Payment – D/P) or payment has been guaranteed at a later stage (Documents against Acceptance – D/A).

1 documentary collection: rimessa documentaria 2 invoice: fattura 3 Bill of Lading (B/L): polizza di carico

Documents against Payment (D/P): The exporter sends the shipping documents to his bank with an order to forward them to the buyer’s bank only when the B/E has been paid. Documents against Acceptance (D/A): The exporter’s bank sends the B/L and the other shipping documents to the importer’s bank when the B/E has been signed for acceptance and the goods dispatched. The importer’s bank then gives the documents to the buyer who becomes the official owner of the goods.

ACTIVITIES 1

Read about documentary collection and answer the questions. 1 What is documentary collection? 2 What is the difference between documentary collection and clean bill collection? 3 What shipping documents does the exporter send the importer when payment is made by documentary collection? 4 What is the difference between D/P and D/A? 5 Is documentary collection more advantageous for the exporter or the importer? Why?

2

Who does what? In payment by documentary collection who carries out these actions? Tick (✓) the right box. 1 draws a B/E: exporter importer exporter’s bank importer’s bank 2 signs and accepts a B/E: exporter importer exporter’s bank importer’s bank 3 ships the goods and gives documents to his bank: exporter importer exporter’s bank importer’s bank 4 forward documents to the importer’s bank: exporter importer exporter’s bank importer’s bank 5 pays the B/E: exporter importer exporter’s bank importer’s bank 163

BUSINESS THEORY

Documentary letter of credit (L/C) CT Bank Ltd 14 Union Park Road, Union Park 400050 Mumbai India IRREVOCABLE DOCUMENTARY CREDIT

Tel. 022 34005693 Fax 022 34005699 Web site: [email protected] E-mail: [email protected]

If the buyer is then unable to pay for the purchase, the bank has to cover the payment.

Number NCAD1IU00197-17-22

Date of issue 18 June 2014

Date of expiry 18 June 2014

This credit is issued by S.W.I.F.T.

A letter of credit 1 is a letter from a bank guaranteeing that a buyer’s payment will be received on time and for the correct amount.

(for negotiation in the country of beneficiary)

Applicant Bahbah Company Ltd Office n° 980 37 Guru Nanak Road 400011 Mumbai India

Beneficiary Carlo Aloisi Via Maratta 36 60121 Ancona Italy

Advising Bank Banca Caripe Spa Piazza Cavour 2 60121 Ancona Italy

Amount USD 13,870.00 Partial shipment / Not allowed Transhipment / Allowed

Loading/Dispatch from Genoa For transportation to Mumbai Latest date of shipment 30 May 20.. Dear Sir, We hereby issue in your favour this irrevocable Documentary letter of credit as per details stated above available by negotiation of your drafts at 90 days after the shipment date for full invoice value showing original DC number. Goods: 1x20 container of chemicals as per invoice No. 13375 dated 12 May 2014 FOB Genoa Documents required: • signed commercial invoice in six copies • packing list in three copies • full set of original on board marine Bills of Lading • insurance certificate in two copies Documents must be presented within 15 days after date of shipment. Authorised signature Asita Chandra

The letter of credit specifies all the terms of trade involved in the transaction: a detailed description of the goods, the time and place of delivery, the documentation required, etc. When these sales terms have been met and the documents have been submitted to the importer’s bank, the credit is released and the supplier is paid. This method of payment is secure for both the importer and the exporter because the banks involved have to check the documents carefully and then make payments in accordance with the terms specified in the L/C. A confirmed irrevocable letter of credit gives the maximum protection. This is because the buyer cannot cancel it without the exporter’s permission. It is especially useful in high risk markets where payments might be restricted by events such as economic crisis or military action. A basic L/C transaction involves four parties: • the importer • the importer’s bank (the issuing bank) • the exporter • the exporter’s bank (the advising bank).

Payment in advance

1 letter of credit: lettera di credito 2 dam: diga 3 Cash with order: pagamento all’ordine 4 Cash on delivery: contrassegno 5 parcel post: pacco postale

164

This form of payment is generally used with contracts which require large investments, such as the construction of dams  2, pipelines or motorways. It isn’t used very much in international trade because it is particularly unfavourable to the buyer. For small orders or for orders from new customers, two methods can be used: • CWO (Cash with order  3) – the order is accepted only if the buyer pays when the order is placed. • COD (Cash on delivery 4) – the goods are sent by parcel post 5 or carrier and are released to the buyer only after payment of the invoice and the postal and delivery charges.

Enquiring

4

ACTIVITIES 1

Read the ‘Documentary letter of credit’ on page 164 and answer the questions. 1 What is a letter of credit? 2 What information does it contain? 3 Why is it a common method of payment in international trade? 4 Why does a confirmed irrevocable L/C give the maximum protection to the seller? 5 When is it especially useful? 6 How many parties does a basic L/C transaction involve?

2

3

4

The sentences below refer to letters of credit. Decide if they are advantages (A) or disadvantages (D). 1 The importer doesn’t have to check the trade documents. The bank does this for him.

A

D

2 Issuing a L/C is a complicated procedure.

A

D

3 The exporter receives payment as soon as the shipping documents have been dispatched.

A

D

4 The L/C protects the exporter against the risk of non payment.

A

D

5 Issuing a L/C is expensive.

A

D

6 Letters of credit facilitate trade between unknown business partners.

A

D

7 Requesting payment by L/C indicates that the exporter doesn’t trust the importer.

A

D

Read the L/C on page 164 and find out the following items. Parties involved

Details of the transaction

1 the exporter’s name

5 the number of the L/C

2 the importer’s name

6 the types of goods bought

3 the issuing bank

7 the port the goods will be shipped to

4 the advising bank

8 the documents required

Read ‘Payment in advance’ on page 164 and underline the correct alternatives in the sentences below. 1 Payment in advance is a widely used / an uncommon method of payment in foreign trade. 2 Payment in advance is unfavourable to the exporter / importer. 3 CWO means that the payment is made before / after receiving the goods. 4 If a buyer pays COD he is responsible / not responsible for delivery charges.

5

Class discussion. Answer the questions. 1 Have you ever paid for goods in advance? 2 What did you order? 3 How was the consignment delivered?

165

BUSINESS LANGUAGE

Requesting (2) Enquiries are the first stage of a business transaction. They are made to request information or action and the language used is normally formal. This is particularly the case for letters of enquiry. Common structures include polite orders and formal requests.

Polite orders Form Please + order (2nd person imperative) Please indicate your prices. Please let us know the estimated delivery time.

Formal requests In the request remember to use the statement word order, i.e. subject + verb, not the question word order. YES: Would you mind telling us when you could process our order? NO: …when could you process our order?

Requesting information: form 1 When yes/no answers are required: Polite introduction + if/whether + request Could you please let us know if you accept payment by letter of credit? We would be grateful if you would let us know whether this payment method is acceptable. 2 When specific information is required: Polite introduction + question word + request Would you mind letting us know what your normal terms of delivery are? Would you be so kind as to let us know when you could process our order?

Requesting action: form Polite introduction + request Could you possibly add our name and address to your mailing list? Would you be so kind as to send us all relevant publicity material? We would be grateful if you could arrange for a sales representative to visit us.

The polite introduction Requesting information • Let (someone) know can be replaced by a verb with a similar meaning, e.g. tell, inform… • Note that I would be grateful if... is not a question.

166

Could/Would you (please) let me/us know…? Could/Would you (possibly) let me/us know…? Would you mind letting me/us know…? I would/We would be grateful if you could/would let me/us know... Requesting action Could/Would you (please)…? Could/Would you (possibly)…? Would you mind + -ing…? Would you be so kind as to…? I/We would be grateful if you could/would...

Enquiring

4

ACTIVITIES 1

2

Which of the sentences below are polite orders (PO), informal requests (IR), or formal requests (FR)? 1 Can you send me a quotation? 2 Please send us your latest catalogue. 3 Could you possibly send us any advertising material you have? 4 Would you be so kind as to send me an up-to-date price list? 5 Please indicate your prices. 6 Would you mind organising the transport? 7 We would be grateful if you could let us know your preferred method of payment. 8 Will you write the enquiry for me? Write a formal request for each of the needs or desires expressed below. Use the words given.

a

Requesting information Ex. I want to know where the nearest sales outlet is. Could you possibly let me know where the nearest sales outlet is? 1 We need to know who we can contact for information. ............................................................. .................................... letting us know ............................................................. ........................................................... . 2 We want to pay by open account. Do you accept this method of payment? Would you be ...................................... ...........................................................? 3 I need to know your normal terms of sale. .............................................. grateful if ........................................................... .

2 I need a quotation for this order. I would be ................................................ ............................................................... . 3 We’d like you to send us a sample of your products. Would you mind ....................................... ...............................................................? 4 I want you grant us a 5% discount. Would you be .......................................... ...............................................................?

3

TRANSLATION Translate the requests in ex. 2 into Italian.

4

TRANSLATION Rewrite the e-mail below. Complete the translation into English. More

Subject

Your catalogue and price list

From Margherita Crosetto To [email protected]

Scrivo in risposta (1) to your advertisement for glassware, which appeared in April’s edition of “House and Garden”. I am the owner of a shop which specialises in quality glass and china products and I would be extremely interested to learn more about your range. Desidererei ricevere copia del Vostro ultimo catalogo. Vi pregherei di indicare i prezzi franco fabbrica. Vi sarei inoltre grata se poteste aggiungere il mio nome e indirizzo al Vostro indirizzario clienti. Resto in attesa di un cortese cenno di risposta. Cordiali saluti (2), Margherita Crosetto

4 We want you to deliver the goods to our manufacturing plant. Can you do this? Would you mind ................................... ...........................................................?

b

Requesting action 1 We want your latest catalogue. ............................................. kind as to ........................................................... . 167

BUSINESS LANGUAGE

Granting and refusing requests On receiving an enquiry, a company normally sends a written reply, granting or refusing any requests made. There are many ways in which they can do this, but common structures include the following.

Granting a request: form 1 For information We are pleased to inform you that + reference to the request We are pleased to inform you that we can accept payment by letter of credit. We are pleased to inform you that the proposed method of payment is acceptable.

2 For action We are pleased/We would be pleased to + reference to the request We are pleased to send you the relevant publicity material. We would be pleased to arrange for a sales representative to visit you.

Refusing a request: form 1 For information We regret to inform you that + refusal We regret to inform you that we cannot accept payment by letter of credit. We regret to inform you that the proposed method of payment is not acceptable.

2 For action I’m afraid we/We regret that + refusal I’m afraid we cannot send the requested material at the moment. We regret that we are not able to arrange a visit in this period.

Expressing ability/inability to grant a request: form ability

inability

can + base form of verb be able to + base form of verb

cannot/can’t + base form of verb not be able to/be unable to + base form of verb

• All forms can be used in the present tense. Be able to is more formal than can. We are pleased to inform you that we can/are able to supply the goods you require. We regret that we cannot/are unable to supply the goods you require. • Be able to replaces can for other tenses. When granting or refusing requests, the most common tenses, other than the present simple, are:

168

infinitive

We are pleased to be able to grant your request.

future

We are pleased to inform you that we will be able to supply the goods within the time period you state. We regret to inform you that we will not be able to supply the goods within the time period you state.

Enquiring

4

ACTIVITIES 1

Complete the sentences with the missing words. 1 We ........................................................... inform you ............................................... the goods you need are all in stock. 2 We ........................................................... inform you ............................................... we will not be able to carry out the order. 3 I ............................................................... are not able to grant your request at this time. 4 We ........................................................... enclose our new price list. 5 We ........................................................... we will not be able to send you details of our special offers until the new year. 6 We ........................................................... arrange for a visit at a time which is convenient for you.

3

Complete the sentences with the appropriate forms of can or to be able to. Sometimes both forms may be possible. 1 We regret to inform you that we ................................................................. carry out the order until 10th August. 2 We are pleased ....................................... accept the payment terms you propose. 3 I’m afraid we ............................................ send you the material you requested. 4 We are pleased to inform you that we ........................................................... offer a 20% discount, if you accept CWO payment terms. 5 We regret that we .................................... deliver the goods last week. 6 I’m afraid we ............................................ accept DAF delivery terms.

2

Write replies granting (G) or refusing (R) these requests.

4

TRANSLATION Rewrite the e-mail below. Complete the translation into English.

Information Ex. Would you be so kind as to let us know if you can grant a discount on last year’s stock? (G) We are pleased to inform you that we can grant a discount on last year’s stock. 1 Could you possibly inform us if you grant credit terms for large orders? (R) 2 Would you mind letting us know as soon as possible if these terms are convenient for you? (G) Action 3 I would be grateful if you could send me your new brochure for 18-30 holidays. (G) 4 Could you please send us samples of all your products? (R) 5 Would you be so kind as to arrange the insurance cover for these products? (G)

More

Subject

Re: Our catalogue and price list

From [email protected] To Margherita Crosetto

Dear Ms Crosetto, Grazie per la Sua e-mail del 12 maggio (1) and for the interest you show in our products. Siamo lieti di allegare alla presente il nostro catalogo e listino prezzi aggiornato. Siamo inoltre lieti di informarLa che i Suoi dati sono stati inseriti nel nostro indirizzario clienti (2), which will enable you to receive details of our special offers during the year. We look forward to receiving your initial order and hope that you will be entirely satisfied with our service. Yours sincerely Harold Harper Sales Manager

169

BUSINESS LANGUAGE

Questioning To enquire / enquiry 1 To enquire (about) (verb) = chiedere informazioni (su, a proposito di) I am writing to enquire about the post you advertised on your website. Scrivo per chiedere informazioni sul posto pubblicizzato sul Vostro sito.

2 Enquiry (noun) = richiesta di informazioni to make to send

about…/into… an enquiry/(some) enquiries

to receive

to… from…

I am making a few enquiries about office equipment. Sto richiedendo informazioni su attrezzature per l’ufficio.

Please send an enquiry to Next Ltd asking them for their catalogue. La prego di inviare una richiesta di informazioni a Next Ltd chiedendo il loro catalogo.

We have just received an enquiry from an important Italian company. Abbiamo appena ricevuto una richiesta di informazioni da un’importante ditta italiana.

To query / query 1 To query (verb) = richiedere spiegazioni, indagare We queried the estimate as the total seemed very high. Abbiamo chiesto spiegazioni sul preventivo perché l’importo totale sembrava troppo alto.

2 Query (noun) = quesito, richiesta di spiegazioni to have

a query some/any queries

to deal with

a query the query/queries

about…/relating to…

from…

If you have any queries about this offer, please contact us. Se avete dei quesiti riguardanti questa offerta, Vi preghiamo di contattarci.

Can you deal with the query from ABC Inc? Può occuparsi della richiesta di spiegazioni da parte della ABC Inc?

ACTIVITIES 1

170

Fill in the blanks in these sentences. Use words from the tables above. 1 For any ................................... about our products, please contact our Customer Sales Department. 2 I am writing to ................................... about the price of your new range of deck chairs. 3 Many thanks for your ................................... dated 4th April. 4 Do not hesitate to contact us if you have any further ................................... . 5 Following our campaign we received a lot of ................................... about our garments. 6 The information office will be open till 8 o’clock in the evening to answer your ................................... .

Enquiring

4

Word groups Sample sample/specimen campione

set of samples campionario completo

swatch campione di tessuto

pattern book campionario a loose-fitting blouse

Clothes • clothes, garments, clothing vestiti • style stile baggy informe close-fitting aderente long lungo loose ampio short corto tight stretto

range gamma

a close-fitting blouse short, tight trousers long, baggy trousers

• pattern disegno, motivo

striped

pin-striped

dotted

spotted

flowered

checked

plain

• type/kind of material tipo di tessuto corduroy velluto a coste

leather pelle

suede scamosciato

cotton cotone

linen lino

velvet velluto liscio

denim tessuto jeans

silk seta

wool/woollen lana/di lana

ORDER OF ADJECTIVES: stile + disegno + tipo di tessuto + capo di abbigliamento The model is wearing a loose, flowered, cotton blouse.

ACTIVITIES 1

TRANSLATION Translate the sentences into English. 1 Grazie per la Vostra richiesta di informazioni circa la nostra gamma autunnale di abbigliamento in velluto liscio a coste. 2 I vestiti a fiori in seta della nuova collezione sono piaciuti molto. 3 Invii per favore una richiesta di informazioni a Gap chiedendo il loro nuovo catalogo e un campionario completo. 4 Mi sono comperata un paio di jeans larghi, una camicetta di seta aderente e una giacca marrone scamosciata.

2

Find a fashion photograph in a magazine and describe the clothes the model is wearing in detail. Give information about the style, the pattern and type of material. 171

BUSINESS COMMUNICATION

Enquiries Telephone enquiries 1

Listen to the telephone enquiry and complete the conversation with the words and phrases given. check • consultants • details • owner • website • on-site • availability • products

AJP Salon Supplies: Good morning. AJP Salon Supplies. Ellie Marsh: Hello. My name’s Ellie Marsh. I’m the ......................... (1) of a hair and beauty salon in Southampton. I’m phoning about your ......................... (2). AJP Salon Supplies: Yes, certainly. How can I help you? Ellie Marsh: Well, I’m planning on restyling the salon and I’ve been looking at your ......................... (3). I noticed that you have a number of design ......................... (4) and I’d like to know if they are able to visit salons to give ......................... (5) advice. AJP Salon Supplies: Yes, certainly. That’s part of their job. Ellie Marsh: Oh, great. Could you arrange for one of them to visit my salon, then? AJP Salon Supplies: Yes, of course. I just need a few ......................... (6). Can you repeat your name, please? Ellie Marsh: Yes, it’s Ellie – that’s E, double L, I, E – Marsh. AJP Salon Supplies: Ok, and your salon is? Ellie Marsh: It’s called ‘Head to toe’ and the address is 65 Portland Street, Southampton. AJP Salon Supplies: Ok, fine. I’ll need to check the ......................... (7) of our consultants. Can I call you back later? Ellie Marsh: Yes, of course. My number is 023 5188 6740. AJP Salon Supplies: Ok, thank you. I’ll ......................... (8) that now and call you back as soon as possible. Ellie Marsh: Thank you very much. Goodbye.

2

172

Now answer the questions. 1 What type of business organisation has Ellie Marsh got? 2 What is she planning for her workplace? 3 Why is she calling AJP Salon Supplies? 4 What information does she give to the receiver of her call? 5 What does the receiver promise to do?

Enquiring

3

Complete the message which is sent to one of AJP’s consultants.

Are you available to visit a prospective client in .................................. (1) next week? She wants advice about .................................. (2) her salon. The .................................... (3) is 65 Portland Street. Call me if you’re free and I’ll give you all the ............................. (4).

4

Read the dialogue on page 172 again and find the appropriate phrases for the functions below. What does Ellie Marsh say to: What does the receiver at AJP Salon Supplies say to: 1 give the reason for phoning 4 offer help 2 ask for information 5 promise to do something. 3 make a specific request.

5

Complete the missing parts of this telephone enquiry. Then listen and check. The language in ex. 4 will help you. Receiver: Hello. Knee-high Fashions Ltd ......................... (1)? Caller:

Yes, please. My name’s Ron Whittaker. I’m the owner of a children’s clothes shop. I’m ......................... (2) your products.

Receiver: Ok, and what would you like to know? Caller:

I’d ......................... (3) you have a printed catalogue that you can send me.

Receiver: Yes, we can send you a printed catalogue, but we also have a complete catalogue online. Caller:

Oh, that’s fine, then. ...................... (4) give me the website address, please?

Receiver: Yes, of course. It’s www.kneehigh.com. Caller:

And, ......................... (5) also add me to your mailing list? My e-mail address is [email protected].

Receiver: Yes, I ......................... (6) that straight away. Caller:

Thanks very much.

Receiver: You’re welcome, Mr Whittaker. Goodbye for now.

6

Listen to the telephone enquiry and complete the memo below.

Barclay’s Bank Caller: ............................... (1) Smith Company: ................................................................... (2) Ltd Enquiry: Have we received a ............................... (3) on their behalf from ............................................................ (4)? Amount of credit: £ ......................................................... (5) Issuing date: ....................................................... (6) Caller’s telephone number: .............................................(7) Action to be taken: Call ......................................... (8) when ................................................................... (9).

4

BUSINESS COMMUNICATION

Key language: telephone enquiries I’m phoning (to ask) about… GIVING A REASON FOR PHONING I’m calling to check if… I’d like to know if… ASKING FOR INFORMATION I just need a few details, please. MAKING A SPECIFIC REQUEST

Could / Can / Will you ........................, please? I’ll do that straight away / as soon as possible.

PROMISING TO DO SOMETHING

I’ll check that and call you back. I’ll call you back as soon as possible.

1a

Read the information and complete your part of the telephone call. Use phrases from the box above. You work in the Purchasing Department of Home Ltd. Phone Pilkingtons Glass to ask about their estimated delivery times. You’d like to know if they will be able to deliver a large order for glassware in time for the Christmas sales. Receiver: Hello. Pilkingtons Glass. You:

............................................................................................................................

(1)

Receiver: Good morning. How can I help you? You:

............................................................................................................................ (2)

Receiver: Delivery times? What would you like to know exactly? You:

............................................................................................................................ (3)

Receiver: Well, we usually guarantee delivery within 20 days of receipt of order, but we may be able to improve on that. It depends on the size of your order. Could you send me an e-mail outlining the details of the order that you are considering? You:

............................................................................................................................ (4)

Receiver: Yes, certainly. It’s [email protected]. You:

............................................................................................................................ (5)

Receiver: Thank you. As soon as I receive your e-mail, I’ll call you back to discuss the method and time of delivery. You:

............................................................................................................................ (6)

Receiver: Goodbye.

b Now listen to the telephone conversation and compare it with your version. 174

Enquiring

2a

4

Work in pairs. Build up the following telephone conversation. Then act it out. Receiver: Good morning. Fashion Passion Customer Service. Caller:

.................................................................................................... ............................................................................................... (1) Di’ il tuo nome (Melissa Hopkins) e di’ che chiami per l’annuncio pubblicitario che hai visto su Vanity Fair.

Receiver: ............................................................................................. (2) Chiedi come puoi essere di aiuto.

Caller:

PASSION

........................................................................................... (3) Di’ che vorresti ricevere il loro catalogo.

Receiver: ......................................................................................... (4) Di’ che il nuovo catalogo è appena stato pubblicato. Chiedi nome e indirizzo a cui deve essere inviato.

Caller:

...................................................................................... (5)

WANT TO SPRING/SUMMRECEIVE OUR ER CATALOGUE ? CALL: 0972 88 7 239

Di’ il tuo nome e indirizzo (Melissa Hopkins, 18 Lansdown Road, Stroud GL5 1BG).

Receiver: ................................................................................................................................ (6) Chiedi di sillabare il nome della via e della città.

Caller:

................................................................................................................................ (7) Fornisci le informazioni richieste.

Receiver: ................................................................................................................................ (8) Di’ che invierai immediatamente copia del nuovo catalogo. Dovrebbe riceverlo entro il fine settimana al più tardi.

Caller:

................................................................................................................................ (9) Ringrazia e saluta.

Receiver: .............................................................................................................................. (10) Rispondi al saluto.

b

3

Now listen to the telephone conversation and compare it with your partner.

ROLE PLAY Work in pairs. Read the role cards and practise making the phone call. Exchange roles.

Student A

Student B

• You are the General Manager of the Plaza Hotel in Brighton, which is now under restoration. You are looking for new furniture for the main hall.

• You work for Hospitality Designs and you respond to the call of the General Manager of the Plaza Hotel in Brighton.

• Call Hospitality Designs and ask for a catalogue and price list. Say that you need the furniture by the end of the month, so you would like to know which articles from the catalogue are promptly available.

• Promise to send a catalogue and price list immediately. Say that all the articles in the catalogue are ready for consignment. Delivery can be made within 10 days of the order.

175

BUSINESS COMMUNICATION

E-mail enquiries Enquiry 1 More

Subject Enquiry – security systems

Inbox

From Jacob Watson ([email protected]) To Bryants Security Systems

Date 12/02/20.. 10.47 a.m.

Dear Sir/Madam, We visited your stand at the IFSEC International trade show in London last month and we are writing to ask for more information about your security systems. Our company is an independent advertising agency and we specialise in web design and development. We have recently relocated to offices in the Redbridge Centre in Essex and we are planning to install a new security alarm system complete with CCTV in the near future. We were very interested in your products at the trade show and we would be grateful if you could send us a complete catalogue with an up-to-date price list. We would also like to know if your company offers a maintenance service for the alarm systems. We look forward to a prompt reply, so that we can improve the security of our business premises as soon as possible. Yours faithfully Jacob Watson HG Advertising

Enquiry 2 More

Subject Enquiry – food products From To

Carolyn Taylor ([email protected]) Antico Frantoio Ferrando

Inbox

Date 04/18/20.. 13.20 a.m.

Gentlemen: Your company was recommended to us by one of our Italian suppliers, Salumeria Busani, who spoke highly of the quality of your olive oil. I am now writing to ask for more information. My company, Manicaretti, is one of the USA’s leading importers and distributors of Italian food. We work directly with the best food producers in Italy to guarantee the tradition and quality of our product ranges. We are currently looking for a new supplier of olive oil and we would be interested in receiving a full price list of your produce together with information about your usual sales terms. We would also like to know if it would be possible to visit your oil mill to sample your oils. If we find your terms competitive and your samples up to our expectations, we will place regular orders with you in the future. I look forward to hearing from you. Yours truly, Carolyn Taylor Purchasing Manager 176

Enquiring

1

Look quickly at the e-mail enquiries on page 176 and find out (✓) which enquiry: Enquiry 1 Enquiry 2 1 comes from an American company 2 comes from a British company 3 is from an importer 4 is from an advertising agency 5 requests a catalogue 6 requests a price list 7 asks for information about sales terms 8 asks if it would be possible to sample the products

2

Read enquiry 1 and answer the questions. 1 What company does Jacob Watson work for? 2 How did they first learn about Bryants Security Systems? 3 Where is his company based? 4 What do they specialise in? 5 Why are they writing to the company now? 6 What would they like to receive? 7 What other request do they make? 8 Why do they ask for a prompt reply?

3

Read enquiry 2 and complete the sentences. 1 Carolyn Taylor is the .............................................................................................................. at ...................................................................................................................................................... . 2 It is one of .................................................................................................................................. . 3 They are currently looking for ................................................................................................ . 4 Carolyn is writing to ................................................................................................ to enquire about their ................................................................................................................................. . 5 The company was recommended by .................................................................................. . 6 Manicaretti would like to receive ........................................................................................... . 7 They would also like to know ................................................................................................. . 8 Carolyn promises the company that if ................................................................................. .

4

Now make an oral report of the enquiries. Use your answers in ex. 2 and 3 to help you.

4

177

BUSINESS COMMUNICATION

E-enquiries Most companies have their own websites. The websites often include standard e-enquiry forms. Potential customers can make an enquiry by completing the forms online. It is a quick and simple method of enquiry and it also enables companies to collect information about potential customers (e-mail address, telephone number, etc.) which they can use to promote their products efficiently.

THE BRITISH CARD AND GIFT COMPANY (BCG) Wholesale Enquiry Form Please fill in this form to make an e-enquiry about our products. Title:

Mr

First name:

Jonathan

Surname:

Hutchinson

Company:

Hutchinson’s News (newsagent’s)

Address:

143 Slockley Road

City:

Heddington

Postcode:

SN11 OPS

Country:

United Kingdom

Phone number:

01380 852 766

e-mail:

[email protected]

Can we send you publicity material via e-mail?

✓ Yes

✓ No

Are you an existing client of BCG?

✓ Yes

✓ Not yet

Your enquiry: I would like the name and telephone number of a sales representative in my area. I am also interested in receiving samples of your new range of Christmas cards. SEND THIS FORM NOW

1

178

CLEAR FORM TO START AGAIN

Read the e-enquiry form and tick (✓) the statements true (T) or false (F). Correct any false statements. 1 Jonathan Hutchinson owns a shop. T F 2 He is making a wholesale enquiry. T F 3 His company provides a service. T F 4 It is based in Australia. T F 5 He has already bought products from BCG. T F 6 He is happy to receive promotional material from BCG. T F 7 Jonathan requests a visit from a sales representative. T F 8 Jonathan would like to receive samples of new products. T F

Enquiring

4

Written enquiries – letter plan and phraseology 1

Read the standard phrases below and complete the letter plan with appropriate headings. Information about the writer’s company • Reason for writing • Specific details of request • Reference to reply / future business Paragraph 1 Source of address .......................................................... Reference to previous contact .......................................................... • Your name and address were given to us by… • Your company was recommended to us by… • I am writing in response to your advertisement in… • We are writing to enquire about / ask for more information about… • We have visited your website and would like to have some information about... • Further to our meeting / telephone conversation last week / your promotional e-mail, I am writing to enquire about… • During a visit to… I was given… and I am now writing to ask for further information about…

Paragraph 2 .......................................................... • We are leading / the largest importers of… • Our company specialises in… and we supply stores and individual shops across the country. • We are a large manufacturing firm, based in… • I am the (Purchasing) Manager / owner of… • As you know, we have a reputation for… • We have been operating in the / this market since…

Paragraph 3 .......................................................... • We are interested in receiving…

• Could you please send us / let us know if…

• We would (also) be grateful if you could send us…

• Please let us know… • We would also like to know…

Paragraph 4 .......................................................... • We hope that this letter will form the start of a mutually advantageous business relationship. • If you can guarantee prompt delivery and regular supplies, we will place regular orders with you. • If we find your terms competitive and your samples up to our expectations, we will place regular orders with you in the future. • I look forward to a prompt / an early reply, so that we can… • I look forward to receiving… as soon as possible. 179

BUSINESS COMMUNICATION

Writing: letters of enquiry 1

Complete the e-mail enquiry with the words given. hand-made • grateful • delivery • brochure • terms truly • further • Gentlemen • catalogue • details • specialise • market • owner .............................. (1) During a visit to the Total Home and Craft Fair in Dallas, I was given a .............................. (2) about your company and I am now writing to ask for .............................. (3) information. I am the .............................. (4) of two large furniture and gift stores in Austin, Texas. I have been operating in the .............................. (5) for the last ten years and I .............................. (6) in unique and high quality .............................. (7) products. I was impressed by some of the designs that I saw in your brochure and I would be .............................. (8) if you could send me your .............................. (9) and price list, along with .............................. (10) of your .............................. (11) and payment .............................. (12). I look forward to hearing from you soon, Very .............................. (13) yours, Olivia Symmonds Send

2

Complete the e-mail using words and phrases from page 179. Dear Ms Wilson, .............................. (1) our telephone conversation last week, I .............................. (2) about the cost of placing an advert in the classified section of your magazine. As you know, I am the Marketing Manager of Party Planner Ltd. Our company ............................. (3) organising themed parties and wedding celebrations. We have been ............................. (4) the last fifteen years and we have a .............................. (5) quality and reliability. .............................. (6) us know your prices for an advert size 6cmx6cm, including a picture and a short text. We would also .............................. (7) you offer a discount for a fixed-term advert which would appear in several consecutive issues of the magazine. I look .............................. (8) prompt reply, so that we can organise our publicity campaign in good time for the summer. Yours sincerely, Ellie McDonald Send

3

180

TRANSLATION Translate the sentences into English. Then reorder them and write an enquiry. 4 Mi auguro che questo primo contatto possa 1 Sarei interessato a ricevere il Vostro catalogo con il listino prezzi aggiornato e le essere l’inizio di una relazione d’affari condizioni di consegna e pagamento. proficua per entrambi. 2 Resto in attesa di ricevere quanto richiesto. 5 Ho ricevuto la Vostra e-mail di promozione e Cordiali saluti. ho visitato il Vostro nuovo sito. Vi scrivo per avere maggiori informazioni sui Vostri 3 Sono il direttore di una catena di negozi di prodotti. ferramenta (hardware shop) nel nord Italia.

Enquiring

4

4

TRANSLATION Translate the e-mail into English. Egregi Signori, durante la visita del Chelsea Garden Show a Londra ho visitato il Vostro stand e ho parlato con il Vostro Direttore Marketing. Sono titolare di una ditta specializzata in arredi per il giardino (garden furniture). Forniamo questi articoli ai più importanti distributori del nostro paese. Di recente abbiamo deciso di allargare la nostra gamma di articoli. Vi saremmo perciò grati se poteste spedirci un Vostro catalogo aggiornato insieme al Vostro ultimo listino prezzi. Vi preghiamo inoltre di specificare le condizioni di consegna e di pagamento da Voi richieste. In attesa di una Vostra risposta, Vi porgiamo distinti saluti. Angela Girardi Send

5

Leggi la pubblicità di una nuova linea di scarpe da donna e scrivi una e-mail per conto della tua ditta (In Fashion Ltd). Segui queste indicazioni. • Di’ che hai visto la pubblicità su The Times Magazine del mese di aprile. • Di’ che scrivi per avere maggiori informazioni sui prodotti pubblicizzati. • Dai informazioni sulla ditta per cui lavori. • Richiedi un catalogo e un listino prezzi aggiornati. • Chiedi una risposta sollecita.

6

Sei il titolare di una piccola ditta che produce arredi per ufficio (office furniture) (J&K, j&k@j&k.com). Vuoi inserirti nel mercato internazionale e ti occorrono informazioni circa gli Incoterms. Scrivi una e-mail a The International Chamber of Commerce ([email protected]). • Chiedi la lista delle pubblicazioni che la ICC produce. • Chiedi un listino prezzi aggiornato.

7

Sei il titolare del negozio di elettrodomestici Dixon Ltd. Hai visto pubblicizzato sul web il nuovo robot lavavetri Compact-go 2 che è particolarmente adatto per il tuo mercato. Scrivi una e-mail alla ditta che lo produce (N&G, [email protected]). • Chiedi una scheda del prodotto e informazioni sul prezzo e sui termini di consegna nella tua città. • Chiedi che ti venga inviato anche un catalogo con l’intera gamma della produzione. • Concludi dicendo che attendi una risposta sollecita.

8

Sei il titolare di Il Viaggiatore, una piccola casa editrice italiana specializzata in libri di viaggio. Desideri partecipare alla fiera del libro di Londra (London Book Fair, lbf. [email protected]) che si terrà nel prossimo mese di aprile. Scrivi una e-mail. • Chiedi informazioni sul costo di affitto di uno stand per tutta la durata della fiera. • Chiedi di inviarti informazioni circa le sistemazioni alberghiere previste per i partecipanti.

181

BUSINESS COMMUNICATION

Replies to enquiries Telephone replies 1

Listen to the telephone reply to an enquiry and underline the correct options.

Ellie Marsh: Good afternoon. Head to Toe Salon. How can I help you? AJP Salon Supplies: Hello. It’s Tom Lewis from AJP Salon Supplies. I’m phoning about your question/enquiry (1) regarding our design consultants. Ellie Marsh: Oh, yes. Is everything ok? AJP Salon Supplies: Yes, everything’s fine/good (2). I’ve spoken to Jack Winston, the consultant who covers your area and he will be getting in touch with you tomorrow/ in the near future (3). Ellie Marsh: Oh good. Thanks very much. AJP Salon Supplies: There’s just one small problem/thing (4). Ellie Marsh: Oh, dear, what’s that? AJP Salon Supplies: Don’t worry. It’s nothing major. It’s just that all of our consultants are very busy/occupied (5) at the moment. They’re taking part in a business fair in Bournemouth this week, so I’m sorry/I’m afraid (6) that Jack Winston won’t be able to visit for the next ten days or so. Ellie Marsh: Oh, I see. That’s a bit of a problem. I was hoping to talk to someone before then. AJP Salon Supplies: Can I suggest/say (7) you go to the business fair? You’ll be able to look at the whole/entire (8) range of our products and talk to the consultant there. Ellie Marsh: Oh yes, that’s an idea. Where did you say the fair was? AJP Salon Supplies: It’s in Bournemouth. It’s at the Holiday Inn just off/on (9) the A31 as you drive into the town. Ellie Marsh: Oh, right. That sounds easy enough. I/I’ll (10) think about it. AJP Salon Supplies: Ok, I’ll tell Mr Winston to see/expect (11) you there. If you don’t make it then I’m sure he’ll contact you/be in touch with you (12) next week sometime. Ellie Marsh: Ok, thank you for your help. AJP Salon Supplies: You’re very welcome. Goodbye for now, then. Ellie Marsh: Goodbye.

2

182

Now answer the questions. 1 What is AJP Salon Supplies phoning about? 2 What has Tom Lewis done for Ellie Marsh? 3 Why can’t a consultant visit Ellie immediately? 4 What does Tom Lewis suggest Ellie to do? 5 How does Ellie reply to the suggestion? 6 What does Tom Lewis promise to do?

Enquiring

3

Complete the note that Tom Lewes leaves his colleague Jack Winston.

Rewrite the sentences so that they sound less formal. Use sentences from the dialogue on page 182. 1 I have called you with reference to your query.

Hi Jack, I phoned .............................. (1) this morning and explained .............................. ..................... (2). I also suggested that she ........................................................... (3). She seemed quite interested. Why don’t you call her and arrange to meet at the fair? Tom

5

4

2 There are no problems. 3 I regret to have to tell you that it will be impossible for Jack Winston to visit for approximately the next ten days. 4 Could I possibly make the suggestion that you travel to the fair? 5 I will inform Mr Winston that he can expect to see you there.

Complete the missing parts of this telephone call. Then listen and check. The language in ex. 4 will help you. Receiver: Hello. BRT Ltd Purchasing Department. Caller:

Good afternoon. I’m ................................... (1) phone enquiry regarding our stock levels.

Receiver: Oh, yes, is everything ok? Caller:

Well, with regards to product T22, ................................... (2) fine. We have a large quantity of that item in stock, so we will be able to deliver it immediately if you place an order.

Receiver: Oh, that’s good. What about item number T35? Caller:

Unfortunately, I’m ................................... (3) we won’t ................................... (4) deliver that in the near future because we’re completely out of stock.

Receiver: Oh dear, that’s a problem. Caller:

................................... (5) you consider item T80 as an alternative? It’s very similar to item T35 and the price is the same.

Receiver: Um... ok, I’ll think about it and we’ll get back to you if we decide to place an order. Caller:

Ok, that’s fine. Thank you very much. I look forward to hearing from you. Goodbye for now.

Receiver: Goodbye.

6

Listen to the telephone call and fill in the note below.

Phone call Caller: Company: Time: 10.45am Reasons for calling: Specific request: Response and suggestion made:

4

BUSINESS COMMUNICATION

Key language: replies to enquiries I’m phoning about your enquiry / e-mail about… REFERRING TO AN ENQUIRY It’s about your enquiry regarding… Just to let you know, everything’s fine. POSITIVE RESPONSE

I’d just like to confirm that… I’m just phoning to let you know that… I’m sorry but…

NEGATIVE RESPONSE I’m afraid (that) we can’t / won’t be able to… Can I suggest (that) you consider…? COUNTEROFFER

Have you thought of (trying)…? Why don’t you…?

1

Write two short telephone conversations following the guidelines. Use the phrases in the table above. Than act out the phone conversations with a partner. 1 A potential customer who owns a card and gift shop (Janet Reed, AJ Greetings) has telephoned to ask if she can pay cash on arrival for a small trial order of your products. After checking with a Sales Manager at your company (Cute Gifts Ltd) you phone her back with a positive response. She says that she will place the order immediately. Janet Reed: ..............................................

Janet Reed: ..............................................

You: ...........................................................

You: ...........................................................

Janet Reed: ..............................................

Janet Reed: ..............................................

You: ........................................................... 2 Your company (Grant Building Supplies Ltd) offers a 10% discount for orders worth over £500. A builder (Ron Dawson) phoned you yesterday and asked you to find out if he could have the discount for a smaller order (total £400). You phone him back today with a negative response and suggest he places a slightly larger order. He says that he’ll think about it. Ron Dawson: ............................................................................................................................ You: ........................................................................................................................................... Ron Dawson: ............................................................................................................................ You: ........................................................................................................................................... Ron Dawson: ............................................................................................................................ You: ........................................................................................................................................... Ron Dawson: ............................................................................................................................

184

Enquiring

2

4

Work in pairs. Build up the telephone conversation then act it out. Receiver: Good morning. MGT Ltd. Caller:

................................................................................................................................

(1)

Di’ il tuo nome e chiedi di parlare con il responsabile alle vendite.

Receiver:

................................................................................................................................

(2)

Di’ che sei il responsabile alle vendite. Chiedi come puoi essere di aiuto.

Caller:

................................................................................................................................

(3)

Chiedi se hanno ricevuto la tua e-mail del 3 dicembre scorso in cui chiedevi se era possibile effettuare il pagamento degli ordini a 120 giorni.

Receiver:

................................................................................................................................

(4)

Di’ che avete ricevuto la e-mail, ma non hai ancora potuto rispondere perché il direttore finanziario è all’estero fino alla prossima settimana ed è la sola persona che può prendere questo tipo di decisioni.

Caller:

................................................................................................................................

(5)

Chiedi quando ti potrà essere data una risposta alla tua richiesta.

Receiver:

................................................................................................................................

(6)

Prometti di richiamare entro la fine della prossima settimana.

Caller:

................................................................................................................................

(7)

Ringrazia e di’ che attendi una telefonata.

Receiver:

................................................................................................................................

(8)

Ringrazia e congedati.

3

ROLE PLAY Work in pairs. Read the role cards and practise making the phone call. Exchange roles.

Student A

Student B

• Ti chiami Matt Rogers e lavori per la ditta Bric Electrical Supplies Ltd. Hai appena ricevuto una e-mail dalla Sig.ra Emily Hunter, responsabile del reparto acquisti della ditta Grant Electrics Ltd, in cui ti si richiede il vostro ultimo catalogo e un listino prezzi aggiornato.

• Ti chiami Emily Hunter e sei la responsabile del reparto acquisti della Grant Electrics Ltd. Hai scritto una e-mail al Sig. Matt Rogers della ditta Bric Electrical Supplies Ltd per richiedere un catalogo e un listino prezzi aggiornati.

• Telefona alla Sig.ra Hunter per confermare che il catalogo e il listino prezzi sono consultabili sul vostro sito www.bricelectrics.com. Informa inoltre che è in corso una vendita a prezzi speciali per i prossimi 30 giorni. In aggiunta a questo le spese di spedizione per gli articoli ordinati via web saranno a carico del venditore.

• Ricevi una telefonata dal Sig. Rogers che ti fornisce le informazioni richieste. • Di’ che scaricherai immediatamente il catalogo e il listino prezzi. Informa il Sig. Rogers che sei molto interessata a passare un ordine al più presto.

185

BUSINESS COMMUNICATION

Written replies to enquiries Written replies to enquiries should be direct and complete, with an honest and positive approach even when you cannot meet your customer’s request. They should be sent as quickly as possible, so that the potential customer feels that your company is interested in him/her. In many cases a reply to an enquiry is actually an offer. It may give information about prices and terms of sale, be sent with a catalogue or a quotation, or inform the customer that some samples are being dispatched by separate post.

1

Read the text and answer the questions. 1 Do reply to enquiries always have to meet customers’ requests? 2 If not, what is the right approach to address the customer? 3 Why should enquiries be acknowledged as soon as possible? 4 When is a reply to an enquiry an offer?

2

Look quickly at the documents on page 187 and answer the questions. 1 Which reply is a positive response to an enquiry? 2 Which reply is a negative response to an enquiry?

3

Read document 1 on page 187 and answer the questions. 1 What company does Mr Pilkington work for?

5 How long have they been in business?

2 What is his enquiry about?

6 What is Ms Crompton’s position in the company?

3 When was it sent? 4 What does Work Safety Supplies specialise in?

4

7 What does she enclose with the letter? 8 What does she say about their website?

Read document 2 on page 187 and fill in the blanks in this summary. Mark Wright of the Leather Factory replies to an ............................... (1) sent by ........................... (2). She asked for a full range of ................................. (3). Unfortunately the samples requested cannot be sent because of the ........................ (4) of some of the high quality ........................ (5). Mark Wright has passed Ms Jones’s details to a ................................. (6) who will visit her with ................................... (7) of the leathers they use.

5

186

Read the documents on page 187 again. Find the Italian equivalents for these terms. Document 1

Document 2

1 enquiry

5 full range of samples

2 family-owned company

6 high quality leathers

3 work safety products

7 up to your expectations

4 to place orders

8 competitive

Enquiring

4

Document 1 WORK SAFETY SUPPLIES Kings Industrial Estate Barrow-in-Furness Cumbria LA13 OLP

Tel: 01229 614230 Email: [email protected]

12th September 20.. Mr John Pilkington JP Construction 54 Aigburth Road, Liverpool L17 8BP Dear Mr Pilkington, Re: Your enquiry Thank you for your enquiry of 8th September asking for the latest edition of our catalogue. Our family-owned company has specialised in the supply of quality work safety products for the last 45 years. We are pleased to enclose our catalogue. We would also like to inform you that it is possible to review products and place orders online at our website www.wss.com. We look forward to welcoming you as a customer. Yours sincerely, Jackie Crompton Sales Manager

Document 2 More

Subject Your enquiry From To

Inbox

[email protected] [email protected]

Dear Ms Jones, Many thanks for your recent enquiry. We are pleased to hear that you are interested in our products. Unfortunately we are not able to send you a full range of samples. This is due to the cost of some of the high quality leathers. We have passed on your details, however, to a sales representative in your area and he will be pleased to visit you with samples of the materials we use. We are certain that you will find our samples up to your expectations and our sales terms competitive. We look forward to doing business with you in the near future. Yours sincerely, Mark Wright

187

BUSINESS COMMUNICATION

Quotations When replies to enquiries include specific details of sales terms, they are often called quotations. More

Subject Your enquiry From To

Inbox

kmowbray@kids&co.com [email protected]

Dear Ms Rossi, In reply to your enquiry of 16th February, we would like to thank you for your interest in our range of clothes. Kids&Co has been producing children’s clothing for the last 30 years and we have a reputation for high quality, practical and stylish garments. We have just sent you a copy of our spring/summer catalogue along with a range of samples of our most popular fabrics. With regards to our sales terms, we are pleased to quote as follows: • all prices are CIF Genoa • 5% discount for trial orders • documents against payment (DP) • delivery within 30 days. Please do not hesitate to contact us if you require any further details. We hope that our products meet your requirements and look forward to receiving your trial order in the near future. Yours sincerely, Karen Mowbray

1

Read the e-mail and correct the statements. 1 The subject of the e-mail is an order passed by Katia Rossi on February 16th. 2 Kids&Co produces children’s shoes. 3 Ms Rossi will soon receive Kids&Co winter catalogue. 4 Karen Mowbray will send details of prices and sales terms in a separate e-mail. 5 Ms Rossi has already placed orders with Kids&Co.

2

188

Work in pairs. Ask and answer questions about the following points: • subject of the enquiry of February 16th • Ms Mowbray’s company • the sales terms quoted (price, discount, terms of payment, delivery) • material sent to customer.

Enquiring

4

Replies to enquiries – letter plan and phraseology 1

Read the standard phrases in the tables below and complete the letter plan with appropriate headings. Information about business activity/products • Reason for refusal • Reference to enclosures • Counteroffer • Invitation to place an order • Refusal of request • Sales terms POSITIVE REPLY

NEGATIVE REPLY Paragraph 1 Reference to enquiry .........................................

• Many thanks / Thank you for your recent enquiry about… • In reply to your enquiry of… about…, we… • With reference to your letter / e-mail of…, regarding… Paragraph 2 .........................................

Paragraph 3 ......................................... Paragraph 4 .........................................

• Our family-owned company has specialised… for… • We have been producing… for… years. • We have a reputation for… • We enclose our… / We are pleased to enclose our… • Please find enclosed our… • With regards to our sales terms, we are pleased to quote as follows: … • Our prices are quoted… and we accept payment by… • For quantities in excess of… we can offer a trade discount / special discount of… • We require payment at… days from receipt of order. • All orders are subject to our usual trade terms.

• I’m afraid / Unfortunately we cannot / are not able to… • We regret that… / We regret to inform you that… • This is due to: – the cost – the fact that our latest catalogue is being reprinted – the fact that the line has been discontinued – the fact that we are currently out of stock.

Paragraph 2 ......................................... Paragraph 3 .........................................

• The reason for this is that the prices are already low. • May we suggest… as an alternative?

Paragraph 4

• As we feel that…, we invite you to reconsider your decision.

.........................................

Paragraph 5 ......................................... • Please let us know if you are therefore prepared to… • We hope that our offer will meet your requirements and look forward to serving you in the near future. • We look forward to receiving your initial order and are confident that… • Please do not hesitate to contact us if you require any further details.

189

BUSINESS COMMUNICATION

Writing: replies to enquiries 1

Fill in the blanks. Use the words given. enquiry • sincerely • requested • equipment • products • inform • requirements • catalogue Dear Mr Newman, Thank you very much for your .............................. (1) of May 21st in which you .............................. (2) our latest .............................. (3) and a price list of our office supplies and .............................. (4). I am writing to ............................. (5) you that they have been sent this morning, by courier service. The catalogue gives complete details of our ............................. (6). I am sure you will find them suitable to your ............................. (7), as usual. I am looking forward to hearing from you soon. Yours ............................. (8), Steve Morgan Send

2

Complete the e-mail. Use the phrases given. extremely competitive • CIF Dublin • discount • for your enquiry • your requirements • We are pleased • contact us • delivery within • range • latest catalogue and price list Dear Mr Lee, Thank you ..................................................... (1) of June 4th regarding our new .................................................... (2) of fire extinguishers. We have just sent you our ..................................................... (3). You will see from the catalogue that the range has been extended to include some highly efficient portable extinguishers for use on construction sites. The prices we quote are ............................................................. (4) considering the high quality of all our products. ............................................................................... (5) to quote our usual terms of business: • all prices are ............................................................................... (6) • documents against payment (D/P) • .......................................................................... (7) 30 days for orders up to 250 items. In addition, we are offering our existing customers an exceptional 15% .................... (8) on orders of extinguishers from this new range. Please feel free to ................................................ (9) if you need any further information. We hope that our offer will meet .................................................... (10) and we will look forward to receiving an order soon. Yours sincerely, Mark Sullivan Send

190

Enquiring

3

4

TRANSLATION Translate the e-mail into English. Dear Ms Wong, Grazie per la Sua richiesta di informazioni del 20 ottobre (1) and for the interest you show in our products. Sono lieto di allegare alla presente il nostro catalogo e listino prezzi aggiornato. La nostra ditta produce questo tipo di articoli dal 1970. Tutti i nostri prodotti rispondono agli standard europei e hanno tre anni di garanzia. (2) Please do not hesitate to contact us if you require further details. Restiamo in attesa di un Vostro primo ordine (3) and look forward to serving you in the near future. Yours sincerely, Paul Dennison Send

4

Translate the sentences into English. Then reorder them and write a reply to an enquiry. Add the missing data. 1 Non esiti a contattarci se desidera ulteriori informazioni. 2 Possiamo suggerirVi di considerare l’articolo N765Y come possibile alternativa al prodotto richiesto? 3 Con riferimento alla Vostra richiesta di informazioni del 14 gennaio scorso, ci spiace informarVi che la produzione del modello N764Y è cessata da tre mesi. 4 Cordiali saluti.

5

Outdoor Furniture Ltd, manufacturers of garden furniture and accessories, received an initial enquiry about their products on 7th March from Mr Wilson (Green Gardens Ltd). Write a reply following the guidelines. • Thank the enquirer for his interest in your products. • Give information about your company (how long you have been manufacturing garden furniture and what sort of reputation you have). • Refer to the material you are enclosing (catalogue and price list). • Tell the enquirer to contact you if he requires more information and state that you look forward to receiving an order.

6

La ditta presso la quale lavori (Belmondo srl), ha ricevuto una e-mail da Ronald Brown, Direttore Acquisti della Brown&Hargreaves Inc, in cui si chiede uno sconto del 15% relativo a occhiali da sole che la tua azienda produce. Scrivi una risposta negativa sulla base delle seguenti note. • Fai riferimento alla loro e-mail (With reference to…). • Di’ che non puoi accettare la loro richiesta (We regret to inform you that…). • Offri una spiegazione (Our prices are already the lowest on the market…). • Invita la ditta a ordinare la merce al prezzo indicato nell’ultimo listino prezzi (As we feel that… we invite you to…). • Di’ che speri di ricevere presto una risposta positiva con un loro ordine.

191

BUSINESS COMPETENCE

Key vocabulary Foreign trade terms 1

Match terms and definitions. a The individual price of each item ordered. 1 sales contract b An agreement between two parties, the buyer and the 2 sales terms seller, relating to the purchase of goods. 3 Incoterms c The total amount the buyer is expected to pay. 4 unit price d Specific terms that the buyers and the sellers negotiate 5 total price before a contract is signed. e A set of international rules that define the responsibilities of the buyer and the seller in an international sales contract.

2

Complete the table. Use the words given on the left.

SALES CONTRACT

• • • • • • • •

transfer weight seller collection sample advance total draft

Parties

Quantity

Payment methods

• buyer

• by number

• open account

• ......................... (1)

• by .................... (2)

• bank .................................. (3) • B/E .................................... (4) • documentary ..................... (5) • letter of credit

SALES TERMS

• payment in ........................ (6)

Quality • by description

Price

• by .................... (7)

• unit price

• by approval

• .................... (8) price

Payment in foreign trade 3 • drawee • statement of account • bank transfer • SWIFT • drawer • sight draft

192

Complete the sentences. Use the words given on the left. 1 When an importer asks his bank to transfer an amount of money to the exporter’s bank, he pays by .............................. . 2 .............................. is a fast telematic system for interbank transfers. 3 The .............................. in a draft transaction is the person who sells the goods and draws a B/E. 4 A .............................. is a B/E that is immediately payable on demand. 5 The list of all the transactions during a fixed period of time is called the .............................. . 6 The .............................. in a draft transaction is the person who buys the goods and agrees to pay on a specified date by accepting a B/E.

Enquiring

4

Business skills INCOTERMS

1

You work for an Italian export company and you have been asked to quote prices for a sales transaction based on a variety of different Incoterms. Here is the list of expenses involved. Cost of goods Transport to Genoa + loading charges Freight Insurance

€ 30,000 € 520 € 350 € 480

Complete the table and specify the total price for each of the terms listed. EXW

FOB Genoa

CFR Plymouth

CIF Plymouth

PROCESSING A DOCUMENTARY CREDIT TRANSACTION

2

An Italian manufacturer, EMMETI S.p.A., via Genova 5, 52037, Sansepolcro (AR), has received an enquiry for the supply of 2,000 multi-purpose chairs from World Import Co. Ltd, Lagos, Nigeria. The two companies have agreed on the following sales terms: • delivery of pro-forma invoice showing a total cost of $156,900 • payment by confirmed irrevocable documentary credit at 60 days from receipt of order • CIF Lagos, port of departure Marghera • all risks insurance policy covering 110% of CIF value • delivery end of June. Fill in the importer’s documentary letter of credit. The exporter’s advising bank is Cassa di Risparmio di Firenze, via del Forno 25, 52037, Sansepolcro (AR).

Bank of credit and commerce international 5 Murtala Mohammed way, Ebute Netta, Lagos, Nigeria

Date of issue

IRREVOCABLE DOCUMENTARY CREDIT

number

date of expiry (for negotiation in the country of beneficiary)

this credit is sent to the advising bank by airmail

this credit confirms the cabled advice of date

Apllicant

Beneficiary

Advising Bank

Amount Partial Shipments allowed/not allowed Transhipments allowed/not allowed

Shipment from

to

not later than

Dear Sir(s) We hereby issue in your favour this irrevocable Documentary Credit as per details stated above, available by negotiation of your drafts at ... ... ... for full invoice value of shipment purporting to be [ ... ]

193

BUSINESS COMPETENCE

Into work Problem solving: Incoterms An Italian exporter has received an enquiry for the supply of 100 metric tons of extra virgin olive oil to San Francisco in the USA. He sends four different quotations based on EXW, FOB, CFR and CIF terms, taking into consideration the following elements: • • • • •

cost of a metric ton in the warehouse: $2,900 transport from warehouse to ship, including loading charges: $150 per metric ton freight: $400 per metric ton marine insurance: $50 per metric ton profit: the exporter would like to make a 20% profit on the FOB quotation.

1

Revise the Incoterms on page 159 and complete the table to show the obligations for both the exporter (E) and the importer (I) for each of the Incoterms listed. Incoterms

Transport from warehouse to port of departure

Loading

Freight

Insurance

EXW FOB CFR CIF

2

Fill in the table below to show the exporter’s costs for each Incoterm, the prices to be quoted per metric ton and the total amount to be quoted. Exporter’s costs per short ton

EXW

FOB

CFR

CIF

cost of a metric ton transport to port (incl. loading) freight insurance total cost per metric ton profit to be added (if any) price to be quoted per metric ton total amount for 100 metric tons

3

194

Write a reply to the enquiry specifying the quotations and terms of sale. Delivery end of September, payment by confirmed irrevocable L/C at 30 days. Invent any missing data.

Enquiring

4

Work simulation 1 TITLE:

OBJECTIVE:

First steps of a business transaction.

To write a letter of enquiry requesting information about products and to write a reply enclosing publicity material and quoting sales terms.

METHODS OF WORK:

BACKGROUND INFORMATION:

Small group work.

You work in the Sales Department of two European companies.

WORK STEPS Organisation Divide into two groups. Each group represents one of the following companies: COMPANY A: (SCV, via Cesare Battisti 7, 37135 Verona) – an Italian manufacturer of office furniture

COMPANY B: (PC Electronics, 23 Prince Street, B463NU, Birmingham) – a UK discount chain store of electronic equipment

Facts

Facts

• Established in Verona, 1987.

• Established in Birmingham, 1995.

• Specialises in office furniture.

• A large outlet with five branches in the UK.

• Exports worldwide and sells via traditional mail order.

• Specialises in electronic equipment such as computers, computer accessories, printers, etc.

• Has recently launched a new range of self-assembly office furniture kits.

• Has recently set up a mail order service at competitive prices.

• Strengths: reputation for innovative design, quality and low price.

• Aims to increase its foreign market. • Strengths: supply ‘quality goods at discount prices’.

Writing an enquiry COMPANY A:

COMPANY B:

You are in the process of updating and replacing your electronic equipment. Write a letter to company B asking for information about their range of computers, printers and scanners. In addition, request information about their trade terms and discounts.

You are planning to refurbish your head office in Manchester. Write a letter of enquiry to company A asking for information about their new range of self-assembly office furniture kits. In addition, request information about their trade terms and discounts.

Writing a reply to an enquiry • Discuss and decide on a small range of products related to the enquiry above (about 10-15 products). • Search for examples and photographs of these products. You can use the Internet, magazines, existing catalogues, etc. • Prepare a simple price list illustrating your company’s products. Add a short description for each product. • Write a reply to the enquiry you received. Enclose the price list and quote your usual sales terms.

195

DIGITAL EXPANSIONS

DIGITAL EXPANSIONS

Module 4 • Delivery (SB p. 159)

Incoterms categories

• E-mail enquiries (SB p. 176)

Quotation

• Writing: letters of enquiry (SB p. 180)

More enquiries

• ESAME DI STATO

Ordering

5

BU S I N E SS C

EORY

M MU

NICATIO

B U SI N

S

TH

O

ES

2 International trade documents 2 Custom procedures

BU

UA

GE

N

BUILD YOUR COMPETENCE

S IN

ESS LA

NG

2 Placing an order

2 Listening: telephone orders and replies 2 Speaking: placing and replying to orders on the phone 2 Reading and writing: written orders, replies and modifications/ cancellations

BUSINESS THEORY

International trade documents A number of documents must be completed in international trade transactions. This involves both the importer and the exporter. • The exporter normally provides the commercial invoice and the packing list. Some importing countries also require certain goods to be accompanied by special certificates, which the exporter will have to obtain and complete. • The importer normally completes the documents required to license imports and clear them inwards through customs. • Either the exporter or the importer arranges insurance and provides the appropriate documents.

Invoicing The invoice is an essential legal document in both home and international trade. It is sent by the seller/exporter to the buyer/importer and it is a bill for the goods and services sold. There are different types of invoices. PRO-FORMA INVOICE

If an invoice is sent before an official order has been placed, it is called a pro-forma invoice. Pro-forma invoices are not legal documents. They act as a quotation, and enable the customer to apply for an import licence or arrange a method of payment for the goods. Proforma invoices are also often used to declare the value of goods for customs. They look the same as commercial invoices but are not numbered.

ACTIVITIES 1

Read the introductory paragraph and answer the questions. 1 Who completes the main documents related to international trade transactions? 2 What documents does the exporter normally provide? 3 What must the importer do? 4 Who arranges for insurance and provides the appropriate documents?

2

Read these pages and complete the definitions of invoice and packing list. 1 An invoice is a ........................... (1) document sent by the ............................ / ............................. (2) to the ............................... / ........................... (3). It is used both in home and ........................... (4) trade. It represents a .............................. (5) for the goods or services sold. 2 A packing list is a ........................... (6) that usually accompanies the ........................... (7) when a consignment is made up of several ........................... (8). It contains information about the ............................ (9) of the goods.

198

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5

COMMERCIAL INVOICE

The commercial invoice is produced by the seller/exporter and includes: • the names and addresses of the seller/exporter and the buyer/importer • a detailed description of the goods with relevant prices, quantities and weights • details of VAT taxation, discounts and total cost • specification of the terms of payment and transport details. The invoice helps identify the shipment and it must be completed, even when the goods are being sent free of charge (for example trial samples). E-INVOICE

Today a lot of invoices are transmitted electronically over the Internet. They are called e-invoices or electronic invoices. Although e-invoices are not printed, many companies still print copies of them to maintain filed records. In the European Union legislation was passed in 2010 to encourage businesses to adopt electronic invoicing practices across all its member states. PACKING LIST

When there are several packages in one consignment, the invoice is usually accompanied by a packing list. The packing list contains information about the shipment. In particular the number and type of packages, the contents, the gross weight and dimensions, and any particular markings on the packages. It has several functions: • it helps in the carriage and handling of goods, especially in larger shipments of mixed items • it allows customs authorities to work faster when they need to call for the physical examination of certain specific items • if part of the shipment gets lost or damaged, the packing list helps to identify quickly and accurately which goods are affected.

ACTIVITIES 3

Read the sentences below. For each sentence write the name of the document it refers to. 1 It is an electronic document sent via the Internet. ................................................................................................................................. 2 It helps customs authorities in examining the goods. ................................................................................................................................. 3 It contains details of VAT taxation. ................................................................................................................................. 4 It is a quotation, but not a legal document. .................................................................................................................................

4

Explain in your own words the difference between a commercial invoice and a pro-forma invoice.

199

BUSINESS THEORY

Customs procedures Customs monitor the passage of goods across international borders. They do this to control payment of any duties or taxes, such as VAT, check on licensable, prohibited or restricted goods, make sure that requirements for transit documentation have been met and compile national and international trade statistics.

Trade within the EU Commercial exchanges within the EU differ from transactions outside the EU in that they are not subject to customs controls and there are no import tariffs. The seller’s invoice is an extremely important fiscal document for these transactions as it includes VAT, which is deducted by the buyer from his tax amount in his own country. The invoice must include special identification numbers for both parties involved in the transaction. The identification numbers are usually comprised of the relevant VAT numbers, preceded by ISO codes to identify the different EU countries (e.g. IT for Italy, GB for Great Britain).

Companion Book, p. 26

The VAT Information Exchange System (VIES) is a system of administrative co-operation between EU member states based on the computerised exchange of VAT registration data and data collected from VAT registered exporters in each of the member states. Traders within the EU who export to other EU member states must complete a quarterly or monthly VIES statement. This shows the total amount of exports in euros and it allows the authorities within the member states to check that the correct amount of VAT has been paid. International Trade Statistics (INTRASTAT) is an EU-wide system for the collection of statistics relating to intracommunity trade. It has been effective since 1993. In the past the statistics related specifically to goods and not services. Since 2010, however, INTRASTAT reporting also applies to services in many countries, including Italy. Both exporters and importers are required to complete a monthly INTRASTAT return form if the value of their exports or imports exceeds certain limits.

ACTIVITIES 1

200

Read ‘Trade within the EU’ on this page and correct the statements. 1 Trade within the EU is subject to customs controls. 2 The invoice is the only document that an importer needs to complete when selling his goods to another EU member state. 3 VIES is a system of administrative co-operation used to collect trade statistics. 4 Both exporters and importers have to complete VIES statements. 5 Only exporters may be required to complete INTRASTAT returns. 6 In Italy INTRASTAT reporting only applies to goods.

Ordering

5

CATEGORY OF TRADER Traders who export to member states

Traders who import from EU member states

complete VIES statement (quarterly or monthly)

do not complete VIES statement

if value of exports exceeds € 635,000 annually, complete a monthly INTRASTAT return form

if value of imports exceeds € 191,000 annually, complete a monthly INTRASTAT return form

International trade outside the EU Goods manufactured outside the EU are subjected to customs controls when they first enter the EU. After that they can circulate freely within EU countries. During transportation the goods must be accompanied by a number of documents. • The ................................................................. (1) (also known as the C88 in the UK) is the main document used for trade with non-EU countries and for the movement of non-EU goods within the EU. It is completed by the exporter and contains all the information required by customs in order to export, import or transit goods. • The ................................................................. (2) is required by some countries to certify where the goods have been produced. In Italy it is issued by the Chamber of Commerce. It is needed by the importing country in order to identify the rate of any relevant tariffs, or to apply any embargoes that are in operation. It is completed by the exporter. • ................................................................. (3) is issued by the government. This document may be needed by a firm before it is allowed to export its products (e.g. armaments, works of art, plants and animals) or may be issued to control the number of imports of a particular product (through quotas).

ACTIVITIES 2a b

Read ‘International trade outside the EU’ on this page and fill in the blanks in the text above with the missing document names. Choose from: Export/Import Licence • Certificate of Origin • Single administrative document (SAD) Complete the table.

Document name

Completed/Issued by

Reason(s)

Single administrative document (SAD)

(1)

(2)

Certificate of Origin

(3)

(4)

Export/Import Licence

(5)

(6)

201

BUSINESS LANGUAGE

Placing an order When placing orders, customers usually specify the requirements they have and state the conditions on which the order is made.

Specifying requirements The following structures are common: 1 polite orders Please

+

Please

imperative arrange for delivery by air freight.

2 the modal verb must Subject

+

You

must/must not

+

must/must not

base form of verb pack the goods in a single box.

Must expresses the necessity or obligation to do something. Must not expresses prohibition or the necessity not to do something. 3 the modal verb should Subject

+

The articles

should/shouldn’t should/shouldn’t

+

base form of verb be packed in cardboard boxes.

Should/shouldn’t is used to give advice about appropriate/inappropriate actions. • The order of the sentence can be reversed and the consequence can be expressed before the condition, e.g. We will have to cancel the order if you do not send us confirmation by 10th February. • Will is a modal verb and it can be replaced by other modal verbs, such as shall, may, can and must, e.g. If you are not able to deliver by 10th February, we may have to cancel the order.

202

Outlining the conditions on which the order is made Sometimes the customer places a conditional order with specific requests. First conditional sentences can be used to express the condition on which the order is based. Condition

result

If Provided that On the condition that

will/will not may/may not can/cannot

+ simple present

+ base form of verb

If you do not send us confirmation by 10th February, we will have to cancel the order. Provided that we are satisfied with your service, we will place further orders with you. We can accept your sales terms, on the condition that the goods are delivered by June. If the customer wants to give the seller instructions relating to the ability or inability to meet a condition, a slightly different structure can be used. If In the event that

+ simple present,

please + imperative

If you are unable to meet these conditions, please inform us immediately. In the event that you are unable to meet these conditions, please inform us immediately.

Ordering

5

ACTIVITIES 1

Complete the sentences specifying the requirements illustrated in the pictures. Use must/mustn’t.

3

Use the prompts and the words given to write conditional sentences. 1 • We/pay 50% on receipt of invoice • you/extend your credit terms to 90 days – .............................................. on the condition that ..................................................................... . 2 • You/not be able to accept these conditions • ignore this order – In the event that .............................................. . 3 • We/be happy with your service • we/place larger orders in the near future – Provided that ................................................... . 4 • You/have any queries • not hesitate to contact us – If ............................................................, please ............................................................................. . 5 • We/be compelled to cancel the order • you/not able to guarantee order delivery by 31st – ............................................................................ if ............................................................................. .

4

TRANSLATION Rewrite the letter. Complete the translation into English.

✗

✓ 1

✗

2

✓

3 4

Must have delivery of all components by this date

1 The box ................................................ with care. 2 The products ......................................... together. They .................................................... individually. 3 The consignment ............................................. by train. It ..................................................... by truck. 4 You .................................................. by 11th march at the latest.

2

Dear Sir/Madam, With reference to our telephone call of this morning, we are pleased to send you the attached order No. 43. Vi confermiamo che il tessuto deve essere spedito a mezzo ferrovia e deve essere avvolto in materiale resistente all’umidità (waterproof) per evitare danni durante il trasporto.

Write first conditional sentences linking these conditions and results. CONDITION 1 You/not deliver the goods within one month 2 We/cancel our order 3 We/have to purchase the goods from a competitor 4 We/not place further orders with you

We await your confirmation by return.

RESULT

Cordiali saluti (2)

a We/cancel our order

Rod Jones

b We/be forced to buy more expensive items from a competitor c We/not place further orders with you

La consegna dovrà avvenire entro e non oltre la fine del mese corrente. Nel caso in cui non siate in grado di rispettare i termini di consegna, Vi preghiamo di avvisarci immediatamente a mezzo fax (1).

Purchasing Manager

d You/lose a valuable customer 203

BUSINESS LANGUAGE

Replying to and modifying an order Promising action When a company receives an order, they send a letter of acknowledgement. If they are able to carry out the order and accept the conditions specified by the buyer, a positive reply is sent, promising to execute the order as requested. The modal verb will is used to promise action. Subject We

+

will/will not will

+

base form of verb execute your order carefully.

Expressing the future in subordinate clauses In replies to orders, the seller always specifies when or under what conditions the order will be executed. The time and conditions are expressed in subordinate clauses. Note that the condition expressed in first conditional sentences forms part of a subordinate clause.

In English unless is always followed by an affirmative form, e.g. Unless we receive… ).

Subordinate clause When… As soon as… Before… After If… … as long as… … unless…

Main clause

+ simple present,

will/will not + base form of the verb

When we receive your confirmation, we will organise the shipment of the goods. We will dispatch the goods as soon as we receive confirmation from our bank that you have opened a credit in our favour. Unless we receive payment by Monday 10th, we will be forced to cancel your order. • The future is always expressed with the simple present tense in the subordinate clause. • Will is a modal verb and can be replaced by other modal verbs such as must and can in the main clause.

Modifying or cancelling orders It is sometimes necessary for a customer to modify or cancel an order. The following structures are common: Owing to + reason request Owing to the present slump in trade, we would like to request that our order be reduced by 25%. result Owing to the present slump in trade, we are sorry to inform you that we are obliged to cancel our order. As + reason request As the goods are urgently needed, we would like you to send us the consignment by air freight instead of goods train. result As the goods are urgently needed, we have arranged for supply from another firm. 204

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5

ACTIVITIES 1

Which of these sentences promise action? Mark them with a P. 1 We will be very busy in July. 2 We will give this order our immediate attention. 3 We will provide you with details of our bank account with our next statement. 4 I think we will expand our product range next year. 5 We will not pack the goods until we receive your instructions. 6 I’m sure there won’t be any problems.

2

Read the sentences and underline the correct alternative. 1 We will process the order as soon as/before we receive your confirmation. 2 If/Unless you are able to grant us a 5% discount, we will be forced to obtain the goods from another supplier. 3 I will phone you as long as/when the goods arrive. 4 If/Unless you can guarantee delivery by 10th December, we will place an order worth £25,000. 5 When/As long as the goods are insured, there will be no problems at customs. 6 We will contact you regarding your packing requirements before/as long as the order is processed.

3

Complete the sentences with the missing words. Sometimes there may be more than one possibility. 1 We will contact you ........................................ the goods leave our warehouse. 2 We can extend the credit terms ........................................ you agree to pay 30% on receipt of the goods. 3 ........................................ you accept the sales terms outlined in our last letter, we regret that we will not be able to supply the goods. 4 We will send the relevant documents to your bank ........................................ the goods have been dispatched. 5 We will not process this order ........................................ we receive further instructions from you.

4

TRANSLATION Translate the sentences into English. 1 Riceverete comunicazione non appena la merce sarà pronta per la spedizione. 2 A causa di uno sciopero dei trasporti siamo costretti a sospendere tutte le esportazioni per un mese. 3 Vi assicuriamo che i Vostri ordini saranno sempre eseguiti con la massima cura. 4 Consegneremo le merci allo spedizioniere quando riceveremo il pagamento della fattura allegata alla presente. 5 Se non riceveremo il pagamento entro la fine della settimana saremo costretti a sospendere l’invio della merce.

5

Complete the sentences with owing to or as. 1 ................................... the lack of snow this year, sales of skis have been poor. 2 ................................... we are still interested in doing business with you, please keep us on your mailing list. 3 ................................... you cannot grant us a further discount, we are not prepared to confirm our order. 4 ................................... a general transport strike, there may be some delay in the delivery of your order. 5 ................................... the demand for these products is increasing rapidly, please dispatch the order as soon as possible.

6

TRANSLATION Rewrite the letter. Complete the translation into English. Dear Sir/Madam, Thank you for your order No. 543 dated March 30th which we confirm. We enclose a pro-forma invoice for the amount of $12,000. Please arrange for the issue of a L/C as soon as possible. Le merci saranno spedite non appena riceveremo conferma dell’operazione dalla nostra banca. Vi avviseremo quando le merci saranno presso lo spedizioniere. (1) You may always rely on us for the careful execution of your orders. Cordiali saluti (2)

205

BUSINESS LANGUAGE

Word groups Orders and packaging Types of order trial order ............................................... (1)

mail order ............................................... (5)

initial order ........................................... (2) conditional order ................................... (3)

telephone/e-mail/ fax order ................................................ (6)

written order .......................................... (4)

online order .......................................... (7)

Order content goods merci

item/article/piece articolo

product prodotto

Size and measurement

Noun

Adjective

area

area

length

lunghezza

long

lungo

volume

volume

width

larghezza

wide

largo

mass

massa

depth

profondità

deep

profondo

inch (")

pollice

height

altezza

high

alto

pound (lb)

libbra

weight

peso

heavy

pesante

weight 20,582 kilos

A: How big is the container? height 2.591 m

B: The container is 2.591 metres high, 8.675 metres long and 2.438 metres wide. A: How heavy is it?

width 2.438 m

length 8.675 m

B: It weighs 20,582 kilos. It is very heavy!

ACTIVITIES 1

TRANSLATION Match the types of order in the blank spaces in the first table above with their Italian equivalents. a ordine sottoposto a condizione b ordine telefonico/via e-mail/via fax c ordine di prova d ordine per corrispondenza e ordine online f primo ordine g ordine scritto

2

Look at the picture. It illustrates the dimensions of a tablet. Write a description of its main features. weight 0.6 kilos

height 17.8 cm

depth 2 cm 206

width 28.7 cm

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5

ACTIVITIES 3a

Match the words and phrases listed below to the two categories in the boxes. Add each to the appropriate category. handle with care • barrel • drum • fragile • box • sack • crate • urgent • case • this way up Packaging

b

Shipping marks/labelling

TRANSLATION Now match the English words for packaging with the Italian translations, then label the forms of packaging illustrated below. 1 sacco 4 scatola/scatolone 2 bidone 5 cassetta 3 barile

b ......................................... c .........................................

a .........................................

d .........................................

c

e .........................................

For each form of packaging write examples of the goods they may be used for. Ex. sack rice, flour, etc.

207

BUSINESS LANGUAGE

Vocabulary extension Verb sets: ordering STEP 1 Buyer

• place • send

Seller fare, piazzare inviare

• receive • acknowledge • confirm

ricevere accusare ricevuta confermare

• We are pleased to inform you that we have decided to place a trial order.

• Thank you for your order, which we received on 10th February.

• We are sending you an initial order, which you will find on the enclosed order form.

• I am writing to acknowledge your order for sportswear from our latest catalogue. • With reference to your letter of May 9th, I am writing to confirm your order No. 554.

STEP 2 Seller

• accept • refuse/reject

Buyer accettare rifutare

• Unfortunately, due to problems in our production department, we are not able to accept your order at present. • As you have not yet settled payment for previous purchases we are obliged to refuse your latest order.

STEP 3 Seller

• • • •

carry out process execute fulfil

eseguire soddisfare dar corso eseguire

• We carry out orders within three working days. • Your order is currently being processed. • As soon as we receive confirmation of payment from our bank, we will execute your order. • Due to high demand, it took us two months to fulfil the order. 208

• cancel • modify

cancellare modificare

• We regret to inform you that we are obliged to cancel our order. • We would be grateful if you would modify the quantity of our order from 100 to 60 items.

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5

ACTIVITIES 1

2

Underline the correct alternative to complete the sentences. 1 Many thanks for your order No. 82 of March 12th, which we are pleased to process/accept. 2 Owing to a present slump in trade, we are sorry to inform you that we have to execute/ modify our order. 3 We will contact you regarding shipment of the goods as soon as we start to receive/carry out your order. 4 If we are satisfied with the quality of the samples, we will place/process an order soon. 5 Unless you agree to a substantial discount, we are not willing to confirm/acknowledge our order. 6 We are pleased to accept/send an order as outlined in the enclosed order form. 7 If you cannot meet our request we will cancel/ confirm our order immediately. 8 We would be grateful if you could acknowledge/carry out receipt of our order via e-mail. Fill in the blanks in the sentences with appropriate verbs. Sometimes more than one verb may be possible. 1 With reference to your offer of 14th June, we are pleased to .............................. an initial order as outlined on the enclosed order form. 2 As you are unable to deliver the goods by the end of this month, we regret to inform you that we are obliged to .............................. our order. 3 As we are working to full capacity at the moment, it will take us some weeks to .............................. your order. 4 We regret to tell you that we have no alternative but to .............................. your order for 50 plasma television sets. 5 We are writing to .............................. the receipt of your order No. 163. 6 If we are satisfied with the way in which the order is .............................., we will .............................. larger orders in the future. 7 We thank you and .............................. receipt of your order No. 67 which unfortunately we are unable to .............................. . 8 We assure you that your order will be .............................. with the usual punctuality.

3

TRANSLATION Read the verb sets on page 208 and translate the examples in Steps 1, 2 and 3 into Italian.

4

TRANSLATION Translate the sentences into Italian. 1 Daremo corso all’ordine non appena riceveremo la Vostra conferma. ...................................................................... ...................................................................... 2 Grazie per il Vostro ordine n. 456 del 23 maggio che Vi confermiamo immediatamente. ...................................................................... ...................................................................... 3 Vi assicuriamo che i nostri ordini saranno sempre eseguiti con la massima cura. ...................................................................... ...................................................................... 4 Se non ci garantite la consegna delle merci entro il 25 di questo mese saremo costretti a cancellare l’ordine. ...................................................................... ...................................................................... ...................................................................... 5 Non vi passeremo altri ordini se non ci garantite maggior cura nell’imballaggio delle merci. ...................................................................... ...................................................................... ...................................................................... 6 Se saremo soddisfatti dei Vostri servizi Vi passeremo altri ordini al più presto. ...................................................................... ...................................................................... ...................................................................... 7 Saremo in grado di soddisfare il Vostro ordine entro la settimana prossima. ...................................................................... ...................................................................... 8 Se le Vostre condizioni saranno soddisfacenti Vi invieremo un ordine di prova. ...................................................................... ......................................................................

209

BUSINESS COMMUNICATION

Orders Telephone orders 1

Read and listen to the telephone order and complete the order form on page 211.

Janet Freeman: Good morning. Betterware Ltd. Janet Freeman speaking. Marco Siviero: Hello, it’s Marco Siviero here, from Cose di Casa in Turin. Janet Freeman: Oh yes, hello Mr Siviero. How can I help you? Marco Siviero: I’m phoning to order some items from your latest catalogue. Can you take the order? Janet Freeman: Yes, certainly. What would you like to order? Marco Siviero: Well, I’d like 15 blue ceramic woks. Janet Freeman: Sorry, did you say 15 or 50? Marco Siviero: Fifteen, that’s 1-5. Janet Freeman: Thank you. What’s the catalogue number for that item? Marco Siviero: It’s K85 and the price is £32.99. Janet Freeman: Fine. Anything else? Marco Siviero: Yes, I’d also like 20 whistling kettles. Janet Freeman: Is that item K10 in the catalogue? Marco Siviero: Yes, that’s right. Janet Freeman: Ok, the unit price is £16.99. Is that all? Marco Siviero: Yes, that’s all for now. Janet Freeman: Ok. Can I read the order back to you? Marco Siviero: Yes, go ahead. Janet Freeman: I’ve got 15 items of catalogue number K85 and 20 items of K10. Is that correct? Marco Siviero: Yes, that’s right. Janet Freeman: Ok. We’ve got your company details on file, but have you got a mobile phone number that you can give me? Marco Siviero: Yes, certainly. 0039 333 1724498. Janet Freeman: Sorry, I didn’t catch the end of that. Could you repeat it, please? Marco Siviero: Yes, it’s 0039 333 1724498. Janet Freeman: Thank you. We’ll need payment by bank transfer. Do you want delivery DDP to your business premises, as usual? Marco Siviero: Yes, please. Janet Freeman: Right. I’ll e-mail you the invoice today. Marco Siviero: Thank you very much. Goodbye for now. Janet Freeman: Goodbye and thank you. 210

Ordering

5

Betterware Ltd Telephone order Date: 9/10

Time: 3.40pm

Client name: .......................................................

Order number 270G Order taken by: ............................................ Company: .....................................................

Telephone/address: ........................................... Order details: Qty Description

Catalogue number

Unit price

.......

...................................................................

.......................................

.........................

.......

...................................................................

.......................................

.........................

.......

...................................................................

.......................................

.........................

.......

...................................................................

.......................................

.........................

Payment method: .............................................

Delivery: ....................................................

2

Read the dialogue in ex. 1 on page 210 again. What does Janet Freeman say to: 1 offer help? 5 ask for a phone number? 2 ask for clarification? 6 say she didn’t hear something? 3 ask if the order is complete? 7 ask for repetition? 4 ask to check the order she has taken? 8 promise to do something?

3

Complete the dialogue with words and phrases from ex. 2. Then listen and check. A: Good morning. Wright Ltd. How .......................................................................... (1)? B: It’s Kevin Goodwin, here from Goodwin’s furniture. I’d like to place a telephone order, please. A: Yes, certainly. Go ahead, Mr Goodwin. B: Ok, I’d like to order 14 vases, catalogue number 320/6. A: Sorry, ......................................................................................... (2) or 40? B: 14, 1-4. A: Ok, thanks. Is .............................................. (3)? B: No, I’d also like 6 tea sets. Catalogue number 324/B. A: Sorry, I didn’t ......................................................................................................................... (4)? B: Yes, 324/B. A: Ok, .......................................... (5) else? B: No, that’s all thanks. A: Fine, Can I .................................................................................................................................................... (6)? B: Yes, of course. A: Ok. 14 vases catalogue number 320/6 and 6 tea sets 324/B. Is that correct? B: Yes, that’s right. Can you check if the goods are available for immediate delivery? I need them quite urgently. A: Yes, ...................... (7) do that straight away. Have you got ................................................................... (8)? B: Yes, it’s 339 7922400. A: Thank you. I ........................................................... (9) that now and call you back as soon as possible. B: Thank you. Goodbye. 211

BUSINESS COMMUNICATION

Key language: orders on the phone I’m phoning to order some items from your latest catalogue. ORDERING GOODS

I’m phoning to place an order. Can you take my order? / Can you take it down?

SPECIFYING THE ORDER

I’d/We’d like... / I’d/We’d also like...

GIVING DETAILS

That’s catalogue number L/30.

Sorry, did you say 30 or 40? CHECKING DETAILS

Sorry, I didn’t catch the number. Can you repeat it, please? Can I read it back to you, please?

Yes, it’s thirty, 3-0. CONFIRMING DETAILS Yes, that’s right / that’s correct.

Is that all? / Anything else? ENDING THE ORDER No, that’s all, thanks.

1

Work in pairs. Read the order form and write a short phone conversation, placing the order. Use phrases from the box above.

Beta Electrical Appliances Telephone order

Client name: Alessandro Cipriani

Date: 12/8 Time: 10.45am Order taken by: Sam Watson

Company: U.F.O. Elettrodomestici Via XX Settembre 18, 46100 Mantova Telephone number: 0376.370238

Order number: 651 Order details: Qty

Description

Catalogue number

Unit price

5

Perfect care steam iron

GC127/55

£79.99

5

Vintage 4-slice toaster

CTOV 400/2

£59.99

Cordless black kettle

HG659/88

£29.99

10

Payment method: L/C 30 days

212

Delivery: CIF Genoa

Ordering

2a

5

Work in pairs. Build up a telephone conversation following the guidelines. Then act it out. Receiver:

Good afternoon. Home Design Ltd. How can I help you?

Caller:

.................................................................................................................................................... (1) Di’ il tuo nome (Jane Smith from Country Home Ltd) e spiega che vorresti fare un ordine.

Receiver:

.................................................................................................................................................... (2) Chiedi che cosa desidera ordinare.

Caller:

.................................................................................................................................................... (3) Ordina le seguenti merci: 50 sedie modello TY in colore nero, 10 tavoli da cucina modello FDT.

Receiver:

.................................................................................................................................................... (4) Prendi nota dell’ordinazione. Ripeti la quantità e il tipo degli oggetti ordinati.

Caller:

.................................................................................................................................................... (5) Conferma quanto ti viene detto e correggi eventuali errori.

Receiver:

.................................................................................................................................................... (6) Chiedi di mandare una e-mail o un fax a conferma dell’ordine.

Caller:

.................................................................................................................................................... (7) Di’ che manderai immediatamente una e-mail. Poi ringrazia e saluta.

Receiver:

.................................................................................................................................................... (8) Rispondi al saluto.

b 3

Now listen to the telephone conversation and compare it with your version.

ROLE PLAY Work in pairs. Read the role cards and practise making the phone call. Exchange roles.

Student A

Student B

• You work at the Sales Department of Sweater & Cardis. You respond to a call from a customer who wants to place an order.

• You are the owner of Pull Mania a clothes shop in Newark. You phone the Sales Department of Sweater & Cardis to place an order.

• Take the order. • Check you have written the order correctly. • Inform your customer that the sales terms are as normal. • Ask your customer to send an e-mail to confirm the order. • Thank the customer and promise to process the order immediately.

Code No. Description

• Give your company name and say you want to place an order. Select items from the catalogue below. • Confirm that the order is correct. • Thank the receiver and say goodbye.

Unit price

P987

V-neck T-shirt red/blue/grey

T654

Stretch fit T-shirt white/mint green

D225

Cotton sweater olive green/black

size 10-20

$21.30

H221

Open cardigan pink/white/cream

size 10-18

$34.90

size 12-16 size 10-18

$7.50 $15.70

213

BUSINESS COMMUNICATION

Written orders More

Subject: trial order From: To:

Inbox

Date: 8th March 12.20pm

[email protected] [email protected]

Dear Ms Sheen, Thank you for your reply to our enquiry of 28th February. I have considered your sales terms carefully and am now pleased to place a trial order as follows: Qty 10 10 15 15 10

Item description Black leather clutch bag Cream leather clutch bag Black retro sunglasses Brown retro sunglasses Panama trilby hat

Cat no. A/143 A/144 S/801 S/803 C/433

Unit price £15.00 £15.00 £12.50 £12.50 £19.99

I understand that you require payment in advance for this order and will organise a bank transfer on receipt of the invoice. I would be grateful, however, if you would consider open account terms for future orders. With regard to delivery, the goods should be packed in strong cardboard boxes and the packages should be clearly marked ʽStyle Stop’. As I need these products in time for the summer sales, I would like to request delivery within 30 days. I look forward to receiving a favourable reply together with confirmation that the order will be executed promptly. Yours sincerely, Mark Reardon

214

1

Read the e-mail and find out the following: 1 the name of the company Mr Reardon works for 2 the date of Ms Sheen’s reply to his enquiry 3 the kind of order placed 4 the date of the order 5 the type of merchandise ordered 6 the terms of payment requested 7 the instructions about packing 8 the terms of delivery

2

Read the e-mail again and complete the sentences. 1 Mr ......................................... sends an order to Ms ......................................... . 2 The buyer is a ......................................... customer. 3 Payment will be made by ......................................... on ......................................... . 4 The buyer requests ......................................... for future orders. 5 Dispatch should be effected ......................................... .

Ordering

5

Oxford Lawn Equipment 31 Gloucester St – Oxford, MS 38655 Tel.: 1865 736355

STIHL Vertriebszentrale AG & Co. KG Robert-Bosch-Str. 13 64807 Dieburg Germany 14th January 20.. Dear Mr Eichmann, Re: order No. 514/08 Thank you for sending us your latest catalogue and price list with details of your sales terms. We are pleased to send you an order which you will find outlined on the enclosed order form. We understand that payment should be by documentary credit in your favour and we have already instructed our bank to issue the letter of credit. The terms should be CIP Oxford. With regards to delivery, the equipment should be packed in wooden crates and marked ‘Oxford Lawn Equipment’. We expect delivery by 15th March at the latest and reserve the right to cancel the order if you are unable to guarantee that date. We look forward to a prompt reply. Yours sincerely, Ralph McGuinness Purchasing Manager Encl. 1

Oxford Lawn Equipment 31 Gloucester St – Oxford, MS 38655 – Tel.: 1865 736355 ORDER FORM

Supplier:

Order number: 514/08

STIHL Vertriebszentrale AG & Co. KG Robert-Bosch-Str. 13 – 64807 Dieburg Germany

Date: 14 January 20.. th

Item no.

Description

Unit price

KG 550

Lawn mower

€ 206.00

Quantity 5

Total € ..................... (1)

KG770

Superior lawn mower

€ 450.00

3

€ ..................... (2)

Payment terms: ................................................................................................................. (3) Delivery date: .................................................................................................................... (4) Packing terms: .................................................................................................................. (5)

1

Read the letter and complete the order form.

2

Complete the summary with information from the letter and order form. Mr .............................................. (1), the Purchasing Manager of ............................................. (2) has sent an ............................................................. (3) to ............................................................. (4). The buyer encloses an .......................................................................................... (5) with detailed information of the goods ordered. The total price of the goods comes to € ....................................... (6) and the customer agrees to pay by ................................. (7). Specific ................................. (8) and ................................. (9) instructions are given. 215

BUSINESS COMMUNICATION

Online orders When goods are bought via the Internet, buyers usually complete an e-order form. The document is forwarded directly to the seller, which saves both time and money.

1

You work for a stationery and gift shop, in London (Dreamscape). You want to increase your range of souvenirs. Look at this page from an online catalogue, choose four products, decide on the quantity you want and complete the e-order form below.

gbsouvenirs.com

GB SOUVENIRS

That perfect holiday gift!

12-588 London snowball

12-176 Union Jack mug

12-622 London key ring

12-175 London fridge magnet

12-339 Union Jack tea towel

12-511 Union Jack T-shirt

£18.50

£3.99

£2.50

£1.50

£4.50

£12.99

dreamscape.com

GB SOUVENIRS

216

That perfect holiday gift!

Company name:

................................................................................................................

Address:

................................................................................................................

E-mail:

................................................................................................................

Telephone number:

................................................................................................................

Item code

Description

Unit price

Total

.................

..................................................

............................

............................

.................

..................................................

............................

............................

.................

..................................................

............................

............................

.................

..................................................

............................

............................

Payment terms and methods

Click here for information

Submit order

Reset order

Ordering

5

Orders: letter plan and phraseology 1

Read the standard phrases below and complete the letter plan with appropriate headings. Sales terms / Specific request • Request for confirmation • Reference to previous contact • Conditions of delivery • Details of order / Reference to order form Paragraph 1 .......................................................... • With reference to your offer of 10th December, … • Thank you for sending us… • Thank you for your reply to our enquiry of… • Further to our meeting at…, on…, we are writing to…

Paragraph 2 .......................................................... • We are pleased to place an (initial / trial) order as follows: … • We would like to place an order for… • We have decided to place an order as outlined on your attached e-order form. • We are pleased to send you an order which you will find outlined on the enclosed order form.

Paragraph 3 .......................................................... • We understand that your sales terms are… and confirm payment by… on receipt of the invoice. • We accept your sales terms. Payment will be effected by…, at… days. • As regards your sales terms, we are prepared to…, but would be grateful if… • With reference to…, we would like to request (that) …

Paragraph 4 .......................................................... • With regards to delivery, the goods should be packed in… and should be marked… • Delivery must be effected within 30 days of receipt of order. • We expect delivery by… and reserve the right to cancel if you are unable to guarantee that date. • We would like to request immediate delivery as the goods are urgently required. • Please have the goods shipped by the first available vessel to…

Paragraph 5 .......................................................... • We look forward to an early / a prompt reply. • I look forward to receiving your reply by return. • Please fax us / send us an e-mail to confirm that… • We look forward to a favourable reply together with confirmation that the order will be promptly executed. 217

BUSINESS COMMUNICATION

Writing: orders 1

Complete the e-mail using words and phrases from page 217. More

Subject: order No. 432 From: To:

Inbox

Date: 15th June 10.30am

[email protected] [email protected]

Dear Mr Rizzo, With .............................. (1) to your offer of 30th May, we would like to .......................... (2) an order as follows: Qty 30 10 10 10

Item description condiment balsamic vinegar balsamic cream vinegar duetto olive oil & vinegar gold balsamic vinegar

Cat no. G/09 G/10 H/214 J/290

Unit price £15.70 £ 5.00 £16.80 £25.00

We accept your sales .................... (3). .................... (4) will be effected by bank transfer on ..................... (5) of the invoice. Delivery must be .................... (6) within 30 days of .................... (7) of the order. We .................... (8) to a prompt reply. Yours sincerely, Albert Flynn General Manager

2

TRANSLATION Complete the translation of the letter. Egregi Signori, With reference to you offer of October 21st, siamo lieti di passarvi un ordine come indicato nell’allegato modulo d’ordine. La consegna delle merci deve essere effettuata entro e non oltre la fine del prossimo mese (1). We understand that your sales terms are FOB Livorno e accettiamo di pagare con lettera di credito a 30 giorni. Per quanto riguarda l’imballaggio, (2) the goods should be packed with care con la scritta ‘Fragile’ sulle singole casse (3). We look forward to una risposta favorevole accompagnata dalla conferma che l’ordine sarà eseguito prontamente. Cordiali saluti (4) Paolo Formica Direttore Acquisti (5)

3

218

TRANSLATION Translate the sentences into English. Then reorder them to write an e-mail order. Add the missing data. 1 Per quanto riguarda la consegna, vogliate assicurarvi che le merci siano imballate in scatole di cartone con il nostro nome e indirizzo. 2 Accettiamo le condizioni di vendita indicate nella Vostra offerta. 3 Grazie per la Vostra pronta risposta alla nostra e-mail del 12 febbraio. 4 Restiamo in attesa di una pronta conferma. 5 Siamo lieti di inviarVi un ordine di prova per le merci elencate nell’allegato modulo d’ordine.

Ordering

4

5

You work for Cuisinart, Chicago. Write a letter placing a trial order for coffee makers to The Perfect Coffee Ltd, Los Angeles CA 90020. Use the guidelines and the information below. • Refer to the offer sent by e-mail on 13th May (Thank you for…). • Place your order and give details (We are pleased to… as follows). Qty 15 10 10

Item One-Cup Mini Brewer (silver) Single-Serve Brewer (black) Single-Serve Coffeemaker (stainless steel)

Cat. No. B312 K46 SS45

Unit price $ 99.70 $118.90 $199.50

• Say that you accept to pay by draft at 30 days, but request that the company grant you a 5% discount (As regards your sales terms, …). • Request delivery by mid June (Delivery should be effected by…). • State that your order is a trial order and that, if you are satisfied with the products and execution of the order, you will place larger regular orders in the future (Please note that… / If we…). • Request a prompt reply (We look forward to…).

5

Write to Papyrus (22 Old Compton St, London W1D 4TY) to place an order for the items illustrated below. Follow these guidelines. • Request delivery as soon as possible by • Refer to the catalogue you saw online. courier. • Give details of your order. • State that you hope the order will form the • Refer to and accept the payment terms start of a profitable business relationship. (payment by bank transfer on confirmation • Request confirmation. of the order).

50 erasers

£1.20

6

100 colour pencils

£1.30

30 post-it notes

£2.30

50 red notebooks

£3.20

Sei il titolare di un negozio di articoli per il campeggio e il tempo libero a Cardiff, Outdoor Academy e vuoi acquistare da un produttore cinese, la Ditta Fu Wang, le seguenti merci: • 50 amache in stoffa (cloth hammocks), $400 • 20 amache in corda (rope hammocks), $120 • 50 sedie pieghevoli da esterno (folding lawn chairs), $250 • 50 sedie da spiaggia in alluminio (aluminium beach chairs), $300. La consegna delle merci dovrà avvenire entro e non oltre il 30 aprile e le merci dovranno essere spedite via aerea. Proponi il pagamento tramite lettera di credito.

219

BUSINESS COMMUNICATION

Speaking: replies to orders 1

Read and listen to the reply to a telephone order. Choose the correct options.

Marco: Buongiorno. Cose di Casa. Janet: Good morning. Could I speak to Marco Siviero, please? Marco: Yes, speaking. Janet: Oh, hello Mr Siviero. It’s Janet Freeman here from Betterware Ltd. I’m phoning about your recent telephone order for kitchen products / items (1). Marco: Oh, yes. How can I help you? Janet: Well, I’m afraid we’ve had a slight problem. Unfortunately one of the items you ordered is out of stock / has been discontinued (2). Marco: Oh dear. Which item is it? Janet: It’s item A85 / K85 (3), the red ceramic wok. Marco: Oh, that’s a shame. Two of my regular customers have already expressed an interest in that product. Janet: Well, we still have five of the woks in stock, actually. And we’d be able to offer a 30% / 13% (4) discount on those if you were still interested in them. Would that be acceptable? Marco: Um, yes, I think I can accept that. Thanks. Janet: Great. And can I suggest that you look at the catalogue again? We have two very popular woks on page 45. The unit price for both is slightly higher / lower (5) than the item you ordered. Marco: Ok, I’ll do that. Can you give me the catalogue numbers, please? Janet: Yes, they’re numbers K19 / K90 (6) and K121. Marco: Ok, I’ve got that. I’ll think about it and get back to you as soon as possible. Janet: Fine. In the meantime, I’ll start to process the rest of your order. Marco: Ok, thank you for that. I’ll be in touch again soon. Janet: That’s great. Thank you very much. Goodbye for now, then. Marco: Thank you. Goodbye.

2

220

Now answer the questions. 1 What is Janet Freeman phoning Marco Siviero about? 2 What problem has Betterware Ltd got in relation to the order? 3 What counteroffer does Janet Freeman make? 4 How does Marco Siviero respond to the counteroffer? 5 What suggestion does Janet Freeman also make? 6 How does Marco Siviero respond to the suggestion?

Ordering

3

Read the dialogue in ex. 1 again. Find sentences with similar meanings to those below. 1 I’d like to talk to Marco Siviero, please. 2 We don’t produce one of the items you ordered anymore. 3 There are still five of the woks in our warehouse. 4 We could offer a 30% discount on those. 5 They’re both a little cheaper than the item you ordered. 6 I’ll consider it and call you again as soon as I can.

4

Complete the dialogues with the words and phrases given. Then listen and check. Dialogue 1 goods • an order • being processed • Let us know • in stock • order number A: Good morning. Halbright’s Electronics. B: Hello. It’s Barry Wilson from HGG Ltd. I’m phoning about .............................. (1) you placed with us on 15th September. A: Could you give me the .............................. (2), please? B: Yes, it’s order number H92. A: Fine. I’ve got that. How can I help you? B: I’d just like to confirm that we have everything ......................... (3) and the order is ......................... (4) at the moment. The ......................... (5) should be with you in the next ten days or so. A: That’s great. Thank you very much for the information. B: You’re welcome. .............................. (6) when the order arrives. A: I will. Thank you. Goodbye for now. B: Goodbye. Dialogue 2 stock levels • I’m afraid • delayed • delivery • speak to • to execute A: Hello. Lyle’s workwear. B: Good morning. Could I .............................. (1) Mr Williams, please? A: Yes, speaking. B: Hello Mr Williams. It’s Karen Fielding here from Walton’s Fabric Ltd. A: Oh, yes. How can I help you? B: Well, I’m phoning about your recent order for cotton cloth. A: I see. Is there a problem? B: Yes, .............................. (2) there is. We’ve had some problems with a machine in the Manufacturing Department and, unfortunately, that’s .............................. (3) production. As a result we won’t be able .............................. (4) your order this month as we agreed. A: Oh dear. When do you think you’ll be able to do it?

B: Well, we’re working as hard as we can to get back to normal and we hope to be able to process your order and arrange for .............................. (5) by the 15th of next month. Would that be ok? A: Um… well I’m not sure. I’ll need to check my .............................. (6) to see how urgently we need the material. I’ll do that straight away and call you back to confirm as soon as possible. B: Ok, thank you very much Mr Williams and I apologise once again for the problem. A: Not to worry. I’ll be in touch again this afternoon. Goodbye for now. B: Goodbye.

5

BUSINESS COMMUNICATION

Key language: replies to orders on the phone REFERRING TO THE ORDER

I’m phoning about / in relation to your order of 2nd of April.

ASKING FOR DETAILS

Could you give me the order number, please?

CONFIRMING DETAILS

I’d just like to confirm that...

I’m afraid we’ve got a slight problem. OUTLINING PROBLEMS

I’m afraid we can’t / won’t be able to execute the order. I’m sorry, but we’re going to have to refuse the order.

Can I suggest that you... MAKING A SUGGESTION / COUNTEROFFER

We would be able to offer a (10)% discount on that. Would that be acceptable / ok?

1

Complete the dialogue with words and phrases from the box above. A: Hello. Picton Ltd. B: Hello. It’s James Watson here. I’m ............................................................ (1) of 2nd May. A: Could you ............................................................ (2), please? B: Yes, certainly. It’s HJ76. A: Thank you. How can I help you? B: I’d ............................................................ (3) the order has been processed and the items are ready for delivery. A: Oh, good. Thank you very much. B: You’re welcome. Goodbye for now.

2

222

What would you say in these situations? 1 You want to reassure a customer that you have received his order and that it is being processed. ..................................................................................................................................................... 2 You have to inform a client that you can’t accept an order at the moment because your factory has recently been damaged by fire. ..................................................................................................................................................... 3 You want to inform a customer of a slight delay with regards to delivery. The goods will be delivered on the 20th instead of the 10th of the month. ..................................................................................................................................................... 4 You want to suggest that a customer considers an alternative item (item G90) to the item ordered. It is of a similar quality but cheaper than the item previously ordered. ..................................................................................................................................................... 5 You want to inform a customer that you could offer a 15% discount if he accepts a counteroffer in relation to alternative goods. .....................................................................................................................................................

Ordering

3a

5

Work in pairs. Build up a telephone conversation following the guidelines. Then act it out. Receiver:

............................................................................................................................

(1)

Rispondi al telefono della ditta Wyatt Homes Ltd.

Caller:

............................................................................................................................

(2)

Di’ il tuo nome (John Harvey) e la ditta per cui lavori (Crick Furnishing Ltd) e chiedi di parlare con Kelly Moore.

Receiver:

............................................................................................................................

(3)

Di’ che sei tu Kelly Moore.

Caller:

............................................................................................................................

(4)

Di’ che stai chiamando circa il vostro ordine di mobili del 10 settembre.

Receiver:

............................................................................................................................

(5)

Chiedi il numero dell’ordine.

Caller:

............................................................................................................................

(6)

L’ordine è il numero L102.

Receiver:

............................................................................................................................

(7)

Prendi nota del numero e chiedi se c’è un problema.

Caller:

............................................................................................................................

(8)

Di’ che l’articolo G225 è esaurito. Proponi l’articolo G226 in sostituzione dato che che è molto simile al G225.

Receiver:

............................................................................................................................

(9)

Di’ che devi controllare con il Direttore del reparto acquisti.

Caller:

..........................................................................................................................

(10)

Proponi di richiamare domani.

Receiver:

........................................................................................................................... (11) Accetta la proposta.

Caller:

..........................................................................................................................

(12)

Scusati per l’inconveniente e congedati.

Receiver:

..........................................................................................................................

(13)

Accetta le scuse e saluta.

b

4

Now listen to the telephone conversation and compare it with your version.

ROLE PLAY Read the role cards and practise making the phone call.

Student A • You are Kelly Moore and you work for Wyatt Homes Ltd. Jan Harvey from Crick Furnishing Ltd calls you back. Accept the suggested replacement item for item G225. Ask that your new order be confirmed in writing.

Student B • You are Jan Harvey from Crick Furnishing Ltd. Call Kelly Moore at Wyatt Homes Ltd to find out the company’s response to your proposal. React accordingly.

223

BUSINESS COMMUNICATION

Written replies to orders Document 1 More

Subject: Order No. 87/GH From: To:

Inbox

Date: 22nd June 20..

[email protected] [email protected]

Dear Ms Clark, With reference to your order No. 87/GH of 18 th June for laser printers, we are pleased to inform you that all the goods are in stock and ready for delivery. They will be dispatched by courier as soon as our bank confirms the receipt of your bank transfer in payment of invoice No. 8802. We can assure you that your instructions regarding packing will be followed closely and we look forward to receiving a new order in the near future. Yours sincerely, Kevin Brown Sales Manager

Document 2

North Atlantic Books PO Box 12327, Berkeley California, USA You ref: BD/lk Our ref: MT/sm February 10th 20.. Blackwell’s Book Shop 100 Charing Cross Road Leicester Square WC2H 0JG Attention: Bridget Dawley Dear Ms Dawley, Re: Your order No. 791 of January 20th Thank you for your order of January 20th for the supply of academic books. We are writing to confirm that the order is currently being processed and is due to be shipped from the port of Oakland on February 18th. Once the goods have been dispatched the B/E and all other shipping documents will be forwarded to your bank. We can assure you that our usual care and attention will be given to your order and we look forward to doing business with you again in the near future. Yours cordially, Mark Tranter Sales Manager

224

Ordering

1

5

Warm up. Number the sequence of steps in the correct order. The seller invites the buyer to reconfirm the order. When a company receives an order, it is normal policy to acknowledge it and then to execute it, provided that the seller agrees to any particular conditions requested by the buyer. If the seller is unable or unwilling to accept the conditions of the order, a negative reply is sent to the buyer. At this point a counteroffer is often made.

2

3

Look at the documents on page 224 and find out which: document 1 1 give(s) a date of dispatch 2 specify(ies) payment methods 3 refer(s) to packing 4 specify(ies) method of transport 5 refer(s) to an international sales transaction

document 2

Read document 1 and choose the correct options. 1 Kevin Brown works for Compuprint / Computerlab. 2 He is writing with reference to an order placed on the 18th / 22nd June. 3 He confirms that he has received the order / the goods are ready for delivery. 4 They will be sent by road / rail. 5 Mr Clark must pay by B/E / bank transfer. 6 Packing instructions have / have not been given.

4

Read document 2 and answer the questions. 1 What order does the letter refer to?

6 How will transport be effected?

2 What was it for? When was it placed?

7 What will happen as soon as the goods have been dispatched?

3 Why is Mr Tranter writing the letter? 4 When will the goods be dispatched? 5 Where will the goods be dispatched from?

5

8 What does Mr Tranter promise about the execution of the order?

Number the sentences in the correct order. Then copy the order. We assure you that our utmost care and attention will be given to your order. We are pleased to inform you that all the goods are in stock and your order is currently being processed. Thank you for your order of 10th September. Please confirm your acceptance of the payment terms by e-mail or phone as soon as possible. As this is a trial order, we will require a cash payment on delivery of the goods.

225

BUSINESS COMMUNICATION More

Subject: Order No. 95/B From: To:

[email protected] [email protected]

Inbox

Date: 20th October 20..

Dear Mr Keaton, Thank you for your order of 15th October for handmade leather bags and accessories. Unfortunately, we have to inform you that we cannot confirm delivery by the 15 th November, as requested. This is because the recent transport workers’ strike has had a severe effect on our delivery services. We are currently processing the orders that were placed before and during the strike. As we do understand that you need the goods for the Christmas sales period, however, we are prepared to guarantee delivery by 30 th November. In addition, we would like to offer you a 5% discount on the total price. Please let us know if you are willing to accept the new sales terms. Should you decide to proceed we can assure you that your order will be given out utmost care and attention. We look forward to receiving your reply. Yours sincerely, Lara Wilson

1

Read the e-mail and find the following information: 1 the name of the sender 2 the name of the recipient 3 the date and number of the order 4 the types of goods ordered 5 the delivery requested by 6 the new delivery date proposed.

2

Answer the questions. 1 Why can’t Lara Wilson confirm delivery of the order by 15th November? 2 Why is her company prepared to guarantee delivery by 30th November? 3 What additional offer does she make? 4 What does she ask Mr Keaton to do?

3

Now complete the summary. In her e-mail Ms Wilson is informing Mr ............................................................................. (1) that they will not be able to ............................................................................. (2) the delivery date requested because of a recent transport workers’ ............................................................................. (3). They will be able to ........... .................................................................. (4) the goods by ............................................................................. (5) and they offer a ............................................................................. (6) on the total price.

226

Ordering

5

Replies to orders – letter plan and phraseology 1

Read the standard phrases in the tables below and complete the letter plan with appropriate headings. Refusal / Reason for inability to execute the order • Confirmation of execution of order • Reference to sales terms • Request for confirmation • Counteroffer / Suggestion • Reference to future business POSITIVE REPLY

NEGATIVE REPLY Paragraph 1 Reference to order .........................................

• Thank you / Many thanks for your order of 15th January... • With reference to your order of 8th May, I am / we are writing to… Paragraph 2 .........................................

Paragraph 3 .........................................

• We are writing to confirm that… • We are pleased to confirm that all the goods are in stock and… • We would like to confirm that your order for… is currently being processed. • As we explained…, payment should be made by… • The goods will be dispatched as soon as… • We can guarantee delivery by… • We can confirm / assure you that your instructions regarding… will be followed closely.

• Unfortunately we have to inform you that we cannot confirm your order. • Unfortunately, due to…, we regret to inform you that we cannot meet your request for…

Paragraph 2 .........................................

• This is due to the fact that: – item F546 is out of stock / has been discontinued. – a strike has slowed down our production. – the demand for… has exceeded all our expectations. • As we do understand your requirements, however, we are prepared to offer you… • May we propose that you… for this initial order. • May we suggest / We would like to suggest that you consider item… as a replacement. • We would be grateful if you could let us know your decision as soon as possible, to enable us to process the order without further delay. • Please let us know if you are willing to accept…

Paragraph 3 .........................................

Paragraph 4 .........................................

Paragraph 5 ......................................... • We assure you that our utmost / usual care and attention will be given to your order and we look forward to doing further business with you. • We look forward to receiving your reply. • We sincerely regret not being able to meet your requirements for this order, but look forward to doing business with you in the (near) future. • Please do not hesitate to contact us if you require any further details.

227

BUSINESS COMMUNICATION

Writing: replies to orders 1

Complete the e-mail using words and phrases from page 227. Dear Mr Ryan, ........................................ (1) your order of February 7th for 100 beach chairs, model Copa Steel 432. We are afraid that we are unable to process this order. This ........................................ (2) we have exhausted our stock and the Korean manufacturing company has discontinued production of that model. As we do understand your requirements, however, we ........................................ (3) model Copa Steel 532 at the same price. Please let us know if you ........................................ (4) to accept our counteroffer. We look forward ........................................ (5) an early reply. Yours sincerely, Harvey Jones Send

2

Rewrite the letter below. Complete the translation into English. Dear Sir / Madam, Vi ringraziamo per il Vostro ordine N. 256 del 14 marzo. Siamo lieti di confermarvi che le merci da Voi ordinate sono disponibili (1) and that your order will be processed immediately. Vi possiamo assicurare che presteremo al Vostro ordine la cura e l’attenzione abituali (2) and we look forward to doing further business with you in the near future. Cordiali saluti (3), Massimo Donati

228

3

What would you write in these situations? Write appropriate sentences. 1 Un cliente abituale vi ha passato un ordine per 200 tablets modello LG54. Comunicategli che le merci sono disponibili e che l’ordine è stato eseguito. 2 Un nuovo cliente vi ha inviato un ordine a condizione che gli sia concesso uno sconto del 15% sui prezzi di listino e che la consegna avvenga entro la fine del mese corrente. Rispondete che non ci sono problemi per la consegna della merce, ma non potete concedere lo sconto richiesto. 3 Un cliente vi ha richiesto 70 pezzi dell’articolo 6D facendo riferimento al catalogo dello scorso anno. Rispondete che l’articolo non è più in produzione. Proponete l’articolo 7B in sostituzione.

4

Translate these sentences into English. Then reorder them to write a counteroffer. Add the missing data. 1 Uno sciopero nei trasporti ha interrotto la consegna delle merci, quindi siamo nell’impossibilità di fornirvi la merce entro la data di consegna stabilita. Le merci potranno essere consegnate non prima del 10 febbraio. 2 Confermateci, per favore, se potete accettare questa offerta alternativa. Nell’attesa di una Vostra risposta, Vi preghiamo gradire i nostri migliori saluti. 3 Con riferimento al Vostro ordine n° 323, ci spiace informarVi che non siamo in grado di soddisfare la Vostra richiesta per la fornitura di 50 lavatrici modello T67 entro il 15 gennaio. 4 Poiché siamo consapevoli delle Vostre esigenze, siamo disposti a offrirVi uno sconto del 10% sul prezzo di listino se accettate la nuova data di consegna.

Ordering

5

You work in the Sales Department of Appliance Ltd, Boston. You have received an order (No. U654) for 70 professional blenders model Y65 and 50 food processors model P/74 from Pamela Hudson at The Kitchen Store, Los Angeles. Write a positive reply following the guidelines. • Thank Ms Hudson for the order (Many thanks for your order…). • Confirm that you can execute the order (We are pleased to…). • Confirm the sales terms: CIF Los Angeles, 30 days from date of invoice (With reference to sales terms we confirm that…). • Assure Ms Hudson that the order will be processed immediately and that her instructions regarding packing will be followed closely (We can assure you that the order…). • Refer to future business (As promised, our usual care and attention will be given to the order and we look forward to…).

6

You work for a hammock manufacturer, ACD, Taiwan. You have received a trial order for 150 rope hammocks from Jason Ford at Academy Outdoor, New York. The customer has asked for a prompt delivery and a 10% discount. Write a negative reply. Follow the guidelines. • Thank the customer for the order (Thank you for your order of…). • Say that you are unable to grant a 10% discount because the profit margin on these items is very low and the prices are already at the minimum level (Unfortunately, we have to inform you that…). • Inform the customer that the items are all in stock and could be dispatched immediately, should he wish to reconfirm the order without discount (Should you wish to reconfirm the order at the catalogue prices, I am pleased to inform you that…). • State that you look forward to his reply (We look forward to…).

7

Lavori nell’ufficio vendite di Pelletterie Toscane di Firenze. Hai ricevuto una e-mail da un nuovo cliente, Shoes & Bags Ltd di Liverpool, con un ordine di prova per 50 cinture da uomo in pelle nera modello CM765 e 50 portafogli da donna in pelle gialla modello GT54. L’ordine dovrà essere eseguito entro la fine di marzo. Scrivi una lettera di risposta sulla base delle seguenti note. • Fai riferimento all’ordine. • Conferma che le merci sono in produzione, ma informa che non siete in grado di effettuare la consegna entro la data richiesta in quanto gli ordini degli ultimi due mesi sono stati superiori alle aspettative. • Proponi la consegna entro metà aprile. • Chiedi di essere informato sulla loro decisione in proposito. • Concludi dicendo che resti in attesa di una risposta.

8

Sei il titolare di una piccola ditta artigianale (La dolce idea di Amalfi). Un grande emporio gastronomico di Londra (The Food Store) ti ha inviato un ordine per 100 bottiglie di limoncello e 50 vasetti di marmellata di limoni. Scrivi una lettera di risposta sulla base delle seguenti note. • Ringrazi il mittente (Mr Wilson) per l’ordine inviato. • Confermi che la merce richiesta è disponibile e che l’ordine verrà eseguito prontamente. • Dai indicazioni sul pagamento: 75% al ricevimento della fattura e 25% al ricevimento della merce. • Assicuri che l’ordine sarà eseguito con cura.

5

BUSINESS COMMUNICATION

Modification and cancellation of orders When there are problems connected with the execution of an order the buyer may request a modification, accept or refuse a seller’s counter-proposal, or even cancel the order.

Document 1 More

Subject: Order No. 785/A From: To:

Inbox

[email protected] [email protected]

Date: 13th May 20..

Dear Mr White, Thank you for your e-mail of 12th May regarding our order No. 785/A for outdoor camping equipment. We understand that item TT/123, the 3-room family tent, has been discontinued. We are not prepared to accept your suggestion of item TT/391 as a replacement, however, as the new product is considerably more expensive and we feel that it would be difficult to sell to our customers. We would be grateful, therefore, if you could process our original order, without item TT/123. Please e-mail us to confirm that you have received these instructions and are now able to execute the order. Yours sincerely, Jacob Mann

1

2

Warm up. Look at the documents on these pages and decide which is: 1 the cancellation of an order 2 the refusal of a seller’s counter-proposal and subsequent request to process the original order. Read document 1 and answer the questions. 1 Who is the e-mail from? 2 What order does it refer to? 3 When was the order sent? 4 Can the order be executed? Why? 5 What counter-offer was made? 6 Has it been accepted? Why?

230

Ordering

5

Document 2

Arthur Schuman Inc 40 New Dutch Lane Fairfield NJ 07004 – USA

SV Esse.Vi corso Vittorio Emanuele II 55 70122 Bari Italy Dear Ms Lussiana, We are writing in response to your letter of 20th October in which you informed us that you were unable to confirm our order No. H85 for Italian food products because you have recently imposed a price increase of 15% on all catalogue prices. Unfortunately, however, we are now obliged to cancel the order and look for another supplier for these products. This is because we are certain that our market cannot stand such high prices. We apologise for the inconvenience that this will cause you. Sincerely yours, Kate Halliwell

3

4

Read document 2 and complete the sentences with the missing information. 1 Document 2 is a ........................................................................................................................ . 2 It was written by ............................................................................................... in response to ............................................................................................... . 3 In that letter the supplier informed the customer that she was unable to .............................................................................................................................. because of a .............................................................................................................. on all catalogue prices. 4 Therefore the customer asks the seller to ............................................................................. the order. Which key words and phrases have been used in the documents to: 1 cancel an order? ...................................................................................................... 2 ask that the original order be processed? ................................................................. 3 refuse a suggestion? ................................................................................................ 4 ask for confirmation? ................................................................................................ 5 apologise?................................................................................................................ 231

BUSINESS COMMUNICATION

Modification and cancellation of orders – letter plan and phraseology 1

Read the standard phrases in the tables below and complete the letter plan with appropriate headings. Request for confirmation • Apology and reference to future business • Modification of order with reason • Cancellation of order with reason

MODIFICATION

CANCELLATION Paragraph 1 Reference to previous correspondence / order ............................................................................................

• Thank you for your e-mail / letter of… relating to our order No. … • I'm writing in response / with reference to your letter of… regarding… • Thank you for your reply to our order No. … in which you inform us that… Paragraph 2 .........................................

• As: – the new product is slightly more expensive, … – the demand for… is increasing rapidly, … – our sales of… have been rather poor lately, … we would be grateful if you would increase / reduce / modify our order for… from… to… items. • Owing to: – a present slump / boom in trade, – the urgent demand for this product, • we would like to request that: – our order be increased / reduced to… – the consignment be sent by… • Unfortunately, our sales of… have been rather poor recently, due to… and we would therefore like to reduce our order.

Paragraph 3 .........................................

• Please (fax us) to confirm that you have received these instructions and that you are now able to execute the order. • I / We look forward to receiving your reply as soon as possible.

• As: – you are unable to deliver the goods within the time specified, – we are unable to accept your proposal, – the consignment is urgently required,

Paragraph 2 .........................................

• we regret to inform you that we are obliged to cancel this order. • Unfortunately (due to unforeseen circumstances / circumstances beyond our control ), we are now obliged to cancel this order. This is because: – of a slump in trade for this product. – our company has been taken over by… – our market cannot stand such high prices. • Regrettably, we must now ask you to cancel the order. • We apologise for the inconvenience that this will cause you. • We are still interested in doing business with you in the future and look forward to receiving your next catalogue and price list.

232

Paragraph 3 .........................................

Ordering

5

Writing: letters of modification / cancellation of orders 1

2

3

Complete the sentences with words and phrases from page 232. Then number the paragraphs in order to form the body of a letter. Write the letter. Add the missing data. 1

We hope that you will be able to agree to this request and look forward ................................................. your reply ................................................. .

2

I’m writing ................................................. to your letter of 16th June ................................................. our order No. BT/353.

3

Unfortunately our ................................................. beach towels ................................................. recently due to a prolonged period of bad weather. We ................................................. therefore ................................................. reduce our order to 50 items.

TRANSLATION Translate these sentences into English. Then reorder them and write a letter of cancellation. Add the missing data. 1

In questo momento di recessione economica la nostra clientela non è in grado di affrontare prezzi così alti.

2

Rispondo alla Vostra lettera del 20 ottobre relativa al nostro ordine n° 352 di 100 frigoriferi modello MH74.

3

Ci scusiamo per gli inconvenienti che Vi causiamo, ma speriamo che possiate comprendere le nostre motivazioni.

4

Siamo costretti a cancellare il nostro ordine a causa di un notevole rallentamento nelle vendite.

You are the owner of a smart children clothes shop in London (Junior Style). You have recently started to sell a lot of Italian clothes. Write to the export manager of Moda Giovane, Modena, to ask for your previous order to be increased as follows: Item

Code number

Size

Quantity

Baby jeans

6253

Skirt and top sets

3225

2-3 years 4-5 years 2-3 years 4-5 years

100 50 50 50

Request that the consignment be sent by air freight. You are willing to pay the extra costs.

4

Your New York company (Aston Bros. Ltd) has received a letter from the Export Manager of KJY Inc, Chicago, explaining that delivery of your order No. 875 will be delayed by at least a month because of a production breakdown. Write a reply stating that you are obliged to cancel your order as the items are urgently needed for the summer sales.

5

In data 9 gennaio avete passato un ordine a una ditta coreana (Chong Kun Dang) per 300 condizionatori, modello HV56, che dovevano essere consegnati entro il 30 aprile. È ormai passato un mese dalla data di consegna richiesta e la merce non vi è ancora pervenuta. Poiché avete urgente necessità dei condizionatori ordinati, scrivete una lettera di cancellazione dell’ordine al Direttore Vendite, Mr Dang.

233

BUSINESS COMPETENCE

Key vocabulary The invoice 1 • • • • • • • • • • • • • • • •

weights amount buyer customers seller goods invoice VAT sales packing list pro-forma invoice prices number discount carriage ordered

Complete the paragraph below. Use the words and phrases given on the left. The commercial .................................... (1) is the most important document in any .................................... (2) transaction. It shows the invoice .................................... (3), the total .................................... (4) charged and the sales details. These include: • the names and addresses of the .................................... (5) and the .................................... (6) • the order number which can be used to check the goods delivered against those .................................... (7) • a detailed description of the .................................... (8) ordered together with unit .................................... (9), quantities and .................................... (10) • the payment terms which outline the period of time buyers have to pay for the goods and the cash .................................... (11) that will be given to the buyer if he pays quickly • .................................... (12) terms, giving details of how transport will be paid for • trade discount granted to regular .................................... (13) and deducted from the price of goods • .................................... (14), that is, the tax added to the amount appearing on the invoice. If the seller has not done business with the buyer before, he might send him a .................................... (15). When there are several packages in one consignment, a .................................... (16) is usually required.

Customs procedures 2

Match terms and definitions. 1 VIES 2 INTRASTAT 3 Import licence

4

Export licence

5

Certificate of origin

6

Single administrative document (SAD)

a A formal document issued by the government to give an importer permission to bring a certain quantity of a particular product into the country. b A formal document used for trade with non-EU countries and for the movement of non-EU goods within the EU. c A computerised form of exchange of VAT data between EU member states. d A formal document issued by the government and needed by an exporter before he is allowed to sell his goods abroad. e An EU-wide system for the collection of statistics relating to Intra-community trade. f A document required by some countries to certify the country where the goods have been produced. 234

Ordering

5

Business skills TELEPHONE ORDERS

1

You work for Omega Office, a leading office supplies company. You receive a telephone order. Read the information below then write the telephone conversation. • Ronda Grey from Meyers Solicitors, a law firm in Manchester, phones you. She explains that the company has never done business with you before but they have received your catalogue in the mail. They would like to place a trial order of: – 30 lawyers’ notebooks – product code 921719 – 50 legal wallets – product code 081252 – 10 sets headed writing paper – product code 665824 – 10 sets pre-printed envelopes – product code 666769 – 20 reams of A4 paper for laser printers – product code 019537. • Take the order. Explain that you cannot provide headed writing paper and pre-printed envelopes immediately, because you need the firm’s logo and details. Ask Ms Grey to e-mail the information to you at [email protected]. Promise that you will then send a sample within a week. Ms Grey agrees. • Ask Ms Grey for the company address and a contact telephone number (Meyers Solicitors, 20 Central St, Manchester, M2 SWR, Tel. No. 161 7655239). • Ms Grey enquires about payment terms. Explain that the payment requirements are cash on delivery, given that this is a trial order. Ask Ms Grey if the company wants to be added to your mailing list. She agrees.

THE ORDER FORM

2

Look at the information about product prices and then complete the order form for the order taken in ex. 1. Product code 921719 €2.80

-

665824 €10.50

OMEGA OFFICE TELEPHONE ORDER

-

019537 €3.00

-

081252 €5.20

26 Stanley Grove, Manchester M18 7DA

-

666769 €8.50

Tel. 161-8326500 Fax. 161-832650 E-mail: [email protected]

No. 432

Order taken by: ............................................................................................................................. Caller’s name: ........................................................................................ Date: ....................................... Company name and address: ............................................................. Telephone ................................ Order details Qty .................... .................... .................... .................... ....................

Article description ....................................... ....................................... ....................................... ....................................... .......................................

Product number ............................... ............................... ............................... ............................... ...............................

Unit price € ..................... € ..................... € ..................... € ..................... € .....................

Total € ........................... € ........................... € ........................... € ........................... € ...........................

Total Amount Due € ........................... Payment terms: ........................................................................................................................... Delivery: By road after approval of sample material.

235

BUSINESS COMPETENCE

Into work Problem solving: the invoice Gordon Abbott is an independent retailer. He has had a small shop in London for over 20 years (Abbott’s Groceries). He regularly deals with Morgan & King Ltd, a large wholesale firm nearby. One transaction took place as follows: Mr Abbott ordered food worth £1,227.10 on January 12th and the goods were delivered by road on January 15th. He paid by quarterly statement of account. The food consisted of: – 100kg of butter at £4.79 a kilo – 50 packets of assorted cereals at £2.85 a packet – 100 tins of fruit salad at £1.40 a tin – 80 tins of tinned meat at £5.82 a tin

1

Complete the invoice (No. 1365) sent by Morgan & King Ltd on January 14th for order No. 3288.

MORGAN & KING Ltd Head Office, Dalwich Road, London SE24 OPA Tel. 020.72613085 Fax 020.72613086 e-mail: info@m&k.co.uk www.m&k.com

Date: ........................................... Your order number: ..................... INVOICE Invoice No.: ................................. To: ................................................ Terms: Delivery: ................................................................................................ Payment: .............................................................................................. Quantity

Description

Cost

Total cost

......................

........................................

..........................

...............................

......................

........................................

..........................

...............................

......................

........................................

..........................

...............................

......................

........................................

..........................

...............................

Total ............................................ E&OE 236

Ordering

Work simulation 2 TITLE:

OBJECTIVE:

Placing an order.

To examine a price list and place an order for a series of products. To accept or refuse an order.

METHODS OF WORK:

YOU WILL NEED:

Small group work.

Copies of the letters that you wrote in work simulation 1.

BACKGROUND INFORMATION: You work in the Purchasing Department of the company your group represented in work simulation 1. You recently sent an enquiry to another company asking for information about their range of products. You have received a reply with a price list and details of sales terms.

WORK STEPS Organisation Divide into your groups from work simulation 1. Each group represents one of the following companies:

COMPANY A:

COMPANY B:

LGT – Viale dell’Industria 9, 37135 Verona – an Italian manufacturer of office furniture

ABC Electronics – Upper Brook Street 150, Manchester, Lancashire MI OHR – a UK discount chain store of electronic equipment

Writing an order • Read the reply to your enquiry and look at the enclosed information. Discuss the price list and sales terms and decide: – the items you would like to order and the quantities – whether or not the sales terms are acceptable – any modifications you would like to request or specific information you would like to give in relation to the order. • Write a letter to company A / B outlining your order.

Writing a reply to an order • You receive an order from company A / B. Discuss the order and decide: – if you can accept it or not – if you would like to suggest any modifications. • Write a positive or negative letter of reply.

5

DIGITAL EXPANSIONS

DIGITAL EXPANSIONS

Module 5 • International trade documents (SB p. 198)

The invoice

• Written orders (SB p. 214)

Conditional orders

• Writing: orders (SB p. 218)

More written orders

• Written replies to orders (SB p. 224)

More written replies to orders

• Modification and cancellation of orders (SB p. 230)

More on modification and cancellation of orders

• VIDEO: A telephone conversation – modification of orders

• ESAME DI STATO

Delivering goods

6

BU S I N E SS C

EORY

M MU

NICATIO

B U SI N

S

TH

O

ES

2 Logistics 2 Transport 2 Insurance

BU

UA

GE

N

BUILD YOUR COMPETENCE

S IN

ESS LA

NG

2 Giving extra information 2 Complaining

2 Listening: complaints on the phone 2 Speaking: telephone complaints 2 Reading: written complaints and adjustments 2 Writing: complaints

BUSINESS THEORY

Logistics Logistics is the process of planning, implementing and controlling the flow of goods and services from the point of origin to the point of consumption. It refers to the practical issues surrounding transportation, warehousing and stock management. A major benefit of an efficient distribution industry is that manufacturers and retailers no longer hold large stocks of raw materials, components or finished products, but can instead rely on their suppliers’ ability to meet their needs when required. This has contributed to reduced physical wastage  1 and a reduction in the amount of capital tied up 2 in stock. Over the last few years the effects of globalisation have led to the creation of large logistics companies with worldwide operations. As 1 wastage: spreco a result, transport time and 2 tie up: impegnare cost have also been reduced.

CASE STUDY

DHL

ALTERNANZA SCUOLA-LAVORO

COMPANY PROFILE

Type

a division of the multinational German logistics company Deutsche Post DHL

Sector of industry

express logistics

Founded

California, USA (1969)

Founders

Adrian Dalsey, Larry Hillblom, Robert Lynn (DHL)

Headquarters

Bonn, Germany

Key people

Ken Allen (CEO)

Workforce

270,000

Revenue

Deutsche Post DHL €55 billion (2013)

DHL Express is a division of the giant German logistics company Deutsche Post DHL. It provides express mail services and is a market leader in sea and air mail. Its services include freight transportation, customs advice, security and insurance, warehousing and distribution and supply chain management. DHL was founded at the end of the 1960s by three friends. They combined the initials of their surnames to create the company name.

Delivering goods

ACTIVITIES

LOGISTIC PROCESSES Efficient logistics processes result in getting:

1

Read about ‘Logistics’ on page 240 and correct the statements. 1 Logistics is entirely a planning process. 2 It considers the distribution from the point of sale to the consumers’ homes. 3 It only involves transportation. 4 It enables manufacturers and retailers to hold large stocks of raw materials, components and finished products. 5 Logistics processes have led to an increase in physical wastage and the amount of capital tied up in stock. 6 Large logistics companies have increased transport time and costs recently.

2

Find the English equivalents of these Italian terms: 1 attuazione 2 flusso 3 ricezione 4 magazzinaggio 5 scorte 6 grezzo 7 componentistica 8 immobilizzato.

3

Look quickly at the Case Study and find out: 1 the name of the multinational company that owns DHL 2 the type of industry that DHL is involved in 3 what the letters DHL in the brand name refer to 4 where the company was founded. 5 where its headquarters are located today.

4

Read the Case Study and answer the questions. 1 What services does DHL offer? 2 What type of documents were delivered from San Francisco to Hawaii by DHL at the end of the 1960s? 3 Why did this save valuable time? 4 Where did DHL expand its services to in the 1970s? 5 What happened to DHL in 2002?

the right item in the right quantity at the right time to the right place at the right price in the right condition to the right customer

Their idea was to transport Bills of Lading from San Francisco to Hawaii. The documents were delivered via air, which meant that they arrived in Hawaii and could be processed before the cargo ships arrived, saving valuable time. The company expanded their services to the Philippines in the early 1970s, followed by Japan, Hong Kong, Singapore and Australia. By the end of the 70s, DHL was an important international delivery company and the only company that offered overnight service. The German multinational Deutsche Post began to buy shares in DHL in 1998 and became the majority shareholder in 2001. In 2002, DHL became part of its Express division and the use of the DHL brand was expanded to other divisions and subsidiaries. Today DHL Express shares its brand name with DHL Global Forwarding, DHL Freight, DHL Supply Chain and DHL Global Mail.

6

241

BUSINESS THEORY

Transport Modern economic systems are dependent on the efficient movement of goods, services, and people. Fast, safe and costefficient transport systems are extremely important for international trade and are a major factor in the choice of business location. Large companies normally have their own distribution departments and transport to deal with the distribution of their goods. Medium-sized and smaller firms may use shipping or forwarding agents who take care of all the operations involved in packing, insuring and importing/exporting goods.

Choice of transport Many factors need to be considered before choosing an appropriate mode of transport. These include: • the size, weight and quality of the goods • how urgently the goods are required • the distance they have to travel • the cost involved. Other factors also play a part. Goods require different forms of packaging depending on whether they are sent by land, air or water; insurance costs also differ depending on the amount of risk involved. In recent years the introduction of standardised packing units, such as the container, has enabled more integration between the different modes of transport reducing transport time and costs. Goods packed into containers can be transferred easily from trucks or trains to planes and ships. This form of transport is known as intermodal carriage.

ACTIVITIES 1

Read this page and correct the statements. 1 Large companies always use shipping or forwarding agents to distribute their goods. 2 There are just a few factors to be considered in order to choose an appropriate means of transport. 3 Goods are always packed in the same way when they are sent by land, by air or by sea. 4 Intermodal carriage involves the use of transport by road.

2

Complete this paragraph about transport. Use the words and phrases given. size • modes of transport • media • distance • water • movement Transport is the ............................. (1) of people and goods from one place to another. It is an important element in sales transactions. According to the type of ............................. (2) used, transport can be classified into transport by land, by ............................. (3) and by air. The choice of a particular mode of transport is influenced by the ............................. (4), weight and quality of the goods, how urgently they are required, the ............................. (5) they have to travel and the cost involved. Recently the introduction of standardised packing units has enabled more integration between ............................. (6).

242

Delivering goods

6

Transport in figures Most freight moved within Italy and the UK or moved from one EU country to another is delivered by road. Railways and inland waterways, once very important for the transport of goods, now account for a much smaller percentage of the total. The growth of road transport, however, has also led to increasing congestion and fuel consumption, which in turn have increased the level of pollution. The EU, in an attempt to improve the environment, is encouraging more people to travel by public transport and urging transport firms to move freight onto trains, barges 1 and ships. Just over one fifth of the goods loaded and unloaded worldwide are handled in the EU28 ports. The port of Rotterdam, in the Netherlands is the largest port in Europe and one of the busiest ports in the world, handling over 400 million metric tons of 1 barge: chiatta cargo per year.

Road

Rail

Water

Pipelines

Air

ITALIAN DOMESTIC FREIGHT

45.2%

5.7%

44.4%

4.6%

0.1%

UK DOMESTIC FREIGHT

67.8%

8.7%

18.5%

4.5%

0.5%

EU-28

44.9%

10.8%

41.2%

3%

0.1%

ACTIVITIES 1

Read this page and answer the questions. 1 How are most goods moved in the EU? 2 What negative effects does this type of transport have? 3 What is the EU encouraging in order to improve the environment? 4 How important is sea transport in the EU28? 5 What is the most important commercial port in Europe? Where is it?

2

Write a few lines comparing the data for Italy and the UK in the table on this page. 243

BUSINESS THEORY

Transport by land ROAD

The most frequent form of land transport is transport by road. Its main advantage is flexibility because it is not subject to a timetable and it can offer a door-to-door service. It is usually cheaper and faster than rail transport and can reach places which other forms of transport may find inaccessible. In addition, modern technology has improved the efficiency of road transport. Computers and cellular phones can be used to map trips and multi-drop routes which will prevent lorries returning to base without a load. A negative aspect of road transport, however, is that roads are often very congested due to heavy traffic. PIPELINES

Pipelines are an important recent development in transport. They are used for transporting oil, gas, petrochemicals and even some solids, but they are very expensive to build. In the UK about 2,500 km of pipelines under the sea bring oil and natural gas from the North Sea oilfields to the terminals in the north of England and in Scotland. RAILWAYS

1 bulk freight: merci alla rinfusa

They are less important than they used to be, but are still useful for moving bulk freight 1 over long distances, such as land travel between the East and West Coast ports in the USA and Canada. Today rail freight is quite common in intermodal carriage and railways are often used to transport urgently required or dangerous items such as nuclear waste.

ACTIVITIES 1

2

Read this page and answer the questions. 1 What is the most common form of land transport? Why? 2 What other forms of land transport are also used? 3 What are pipelines used for? 4 Why are pipelines used in the North Sea? 5 In what areas of North America is rail transport commonly used? 6 What sort of goods are often moved by rail? Complete these sentences. Use them to write a summary of this page. 1 The advantages of road transport are ......................................................................................................... . 2 Modern technologies such as ................................................................................... make road transport .............................................................................. because .............................................................................. . 3 Pipelines are used for ...................................................................................................................................... . Their disadvantage is ....................................................................................................................................... . 4 Today rail transport is mainly used for ......................................................................................................... .

3 244

Class discussion. TAV (the high-speed railway network connecting northern EU countries and Italy) is often in the news in Italy. Why? Are you in favour of or against the proposed network? Why?

Delivering goods

6

Documents of carriage: the consignment note The main document used in transport by road or rail is the consignment note or waybill. The consignment note acts as a receipt for the goods and also as proof that there is a contract of carriage. The carrier makes three copies: one for himself, one for the consignor and the third for the consignee to be handed over on delivery of the goods. It is not negotiable.

ACTIVITIES 1

Analyse the consignment note below. Which section(s) give(s) information about: 3 the goods 5 the place of delivery 2 the transporter(s) 4 the seller 6 payment instructions. 1 the buyer

2

Now listen to the conversation between the seller and the carrier and complete the missing information about the goods.

N. 6

J.B.F. Ltd 34 St. Marys Street Brecon, Powys LD3 7AA – UK LuxElettrica srl via Manin 65 33170 Pordenone – Italy

EG Transport Ltd First Way, Avormouth Bristol, Avon BS11 9EF - UK

............................................................ (1)

................ (2) ................ (3) ................ (4) Portable ventilators

.............. (5)

J.B.F. Ltd LN13456 LN16230

245

BUSINESS THEORY

MEDIA FILE

China’s new ‘Silk Road’ will pass through the Middle East China’s Foreign Minister, Wang Yi, has revealed his strategy for ‘West Asia’ – the term he uses to refer to the Middle East. His use of the term is not an accident – it emphasises the size of the economic link with China rather than the troubled geopolitics of the region. ‘West Asia is a region of strategic importance for China,’ notes Robert Lawrence Kuhn, an international banker with extensive experience in Beijing. ‘It allows the country to import energy from the Gulf, while trading with Europe and Africa at the same time.’ Wang Yi said that the strategy at present is to invest in the infrastructure that will provide the basis for enormous economic development in the future: from the creation of an Israeli technology park in Nanxun, to the reconstruction of ports in the area. Now, there are also plans for an Egyptian highspeed railway that will link Hurgada, Luxor, Cairo and Alexandria. The new ports and the high-speed

rail will create an alternative transport route that could continue to operate in the event of a crisis that blocks transport in either the Suez Canal or the Strait of Hormuz. China’s strategy also includes the development of high-speed rail lines across China and an agreement between Beijing and Teheran for an intended rail route through Central Asia that should make it possible to travel from the Chinese capital to the English Channel in just two nights. This railway will pass through at least 28 countries in Asia and Europe, extending along 81,000 kilometers at more than 350 kilometers per hour, connecting China to the commercial hub of West Asia. ‘For China, this means that within just a few years there will be an alternative land route to the Suez Canal,’ says former Israeli diplomat, Oded Eran at the Center for Strategic Studies in Tel Aviv. (Source: La Stampa in English)

ACTIVITIES WARM UP

1

Read the title of the article and look at the map. Answer the questions. 1 What does the map illustrate? 2 What means of transport are involved in the new ‘Silk Road’? 3 Why do you think it is called ‘Silk Road’?

COMPREHENSION

2

246

Listen to and read the article and find the following information: 1 what ‘West Asia’ refers to

2 two reasons why ‘West Asia’ is of strategic importance for China 3 two infrastructures China is investing in at present 4 the four cities in Egypt that will be connected by a high-speed railway 5 two strategic points for transport between Europe and Asia 6 the number of countries that the proposed high-speed rail link between China and Europe will pass through 7 the length of time that it will take to travel from China to the English Channel 8 the speed that the trains will travel at.

Europe

Iran Egypt

Saudi Arabia

China India

Somalia Indian Ocean

Java

China’s proposed new trading route (red = road transport / blue = transport by sea).

PRODUCTION

5

Read the factfile. Write a paragraph explaining what the silk road was and how important it was. Compare the ancient silk road to the new trading routes mentioned in the article. FACTFILE

The silk road

◗ A group of trade routes that went across Asia to the Mediterranean Sea. ◗ Important for the growth of ancient cultures in China, Egypt, Mesopotamia, Persia, India and Rome. ◗ Silk and other goods, such as pottery, food, paper, wine and spices, were traded. ◗ The route went west from China, around the Tibetan plateau, through north Iran, Syria, Israel and Palestine. From there trading ships travelled to Italy and land routes went north to Anatolia (Turkey) or south to North Africa.

247

BUSINESS THEORY

Transport by water MAIN TYPES

• Inland waterways: canal and river transport is slow and isn’t used much nowadays. It has lost most of its traffic to land transport. • Sea transport is the most important form of transport in international trade. It is a very effective method of moving large quantities of non-perishable goods. It is used for a variety of unpackaged raw materials including chemicals, petroleum products, and bulk cargo such as coal, iron ore 1 and cereals. PACKAGING

Containerisation, with the standardisation of ISO containers on all vehicles and at all ports, has revolutionised trade, offering a huge reduction in transport costs. Containers are large metal ‘boxes’ which have a standard size of 20 or 40 feet. Once placed into a container, the goods do not undergo any other handling prior to reaching the destination. As a result there is less damage and breakage, less loss and theft and cheaper handling due to easier loading/unloading. SEA TRANSPORT DOCUMENTS: THE BILL OF LADING (B/L)

The Bill of Lading (B/L), or Waybill in American English, is the main document relating to transport by sea. It serves three purposes. First, it is a receipt for the goods carried, stating their condition at the moment they are loaded on board ship. Second, it serves as a contract of carriage by which the ship owner agrees to deliver the goods to the consignee in the same condition as he receives them. He does this in exchange for a specific sum of money, called freight, payable either in advance or on arrival. Finally, it is a document of title. The person who is named as the consignee becomes the legal owner of the goods. As it is a negotiable document, it can be endorsed to a new consignee on the conditions fixed by the endorser.

1 ore: minerale grezzo

248

Four copies of the B/L are usually sent by the exporter to the shipping company to be checked together with the corresponding goods. One copy is kept by the ship’s captain, while the other three signed copies are given back to the supplier. They are then handed to the supplier’s bank, who surrenders a copy to the consignee on payment or acceptance of the agreed form of payment.

Delivering goods

Transport by air The use of air transport has increased in recent years. Most international airlines can rely on a wide network of cargo airports and employ a large staff of specialists experienced in shipping and documentation. They can provide a fast, reliable, door-to-door service. Air transport is expensive but it can be quite competitive if you consider that there are fewer packaging and insurance expenses and that a lot of time is saved. Air transport is particularly suitable for urgently needed and nondurable goods and for transporting low-volume, high-value goods, such as jewellery and precious stones, electronics and designer clothing.

ACTIVITIES 1

Read page 248 and answer the questions. 1 Why aren’t many goods transported by inland waterways today? 2 How important is sea transport in international trade? 3 What is sea transport an effective method of transport for? 4 What are containers and how have they revolutionised sea transport? 5 Why is transport in containers a safer method of transport for the producer?

2

Read about the B/L and complete.

DOCUMENTS OF CARRIAGE: THE AIR WAYBILL (AWB)

The B/L is the main document for transport by ......................... (1). It has three functions: it is a ......................... (2) for the goods carried, a contract of ......................... (3) and a document of ......................... (4). The ......................... (5) sends four copies of the B/L to the ......................... (6). The ship’s ......................... (7) keeps one copy and gives the other three back to the ......................... (8). These are then handed to the ......................... (9). One copy is surrendered to ......................... (10) on payment or acceptance of payment.

The document representing the air transport contract is the Air Waybill (AWB) or Air Consignment Note. The AWB serves as a receipt for the goods and as evidence of the contract of carriage, but it is not a document of title to the goods. It is non-negotiable. The AWB is usually issued in a set of 12 copies. Copies 1, 2 and 3 of the AWB are originals and have the same validity.

Advantages of air transport

3

• HIGHER LEVEL OF SECURITY: air freight has a tighter level of control over its cargo, this reduces the risk of theft and damage.

• LOWER INSURANCE: the speed and high level of security involved in air freight transport means that the insurance premium rate is generally lower. • SHORTER COLLECTION TIME IN AN OPEN ACCOUNT TRADE ARRANGEMENT: the time to collect payment in an open account trade arrangement usually runs from the time the customer receives the goods and not from the time the goods are dispatched. Air delivery is fast, thus the collection time is shorter.

Correct these statements. 1 The use of air transport has decreased in recent years. 2 International airlines have a small network of cargo airports to rely on. 3 Air transport is slow and unreliable. 4 It cannot compete with other forms of transport for goods. 5 It is frequently used for low-value, highvolume cargo. 6 The main document used in air transport is the consignment note or waybill.

• FASTER DELIVERY: delivery by land or sea to certain areas may take several weeks. Perishable goods, such as fresh seafood and flowers, often rely on air freight.

• LESS PACKAGING: air freight requires less packaging due to faster delivery and better security. This may save freight, packaging and labour costs.

6

4

Complete the table with information about air and land transport. Air

Land

Mode of transport Used for Documents of carriage Advantages Disadvantages

249

BUSINESS THEORY

Insurance The role of insurance companies Businesses are subject to many risks. They range from fire or theft to the nonpayment of debts. Companies can protect themselves by taking out insurance policies which entitle them to financial compensation, known as indemnity, in the case of accidents or other loss. Insurance policies cover a company against a stated risk, in return for a premium, or a fixed amount of money. The premium increases in relation to the amount of risk and the value of the item being insured.

Types of business insurance There are two kinds of insurance that businesses must have by law. They are: • motor vehicle insurance, required for delivery vans, staff cars and other vehicles owned by a firm • employers’ liability insurance 1, which provides cover against accidents to employees at work, for which the employer is responsible.

1 liability insurance: responsabilità civile 2 premises: locali, strutture 3 slip: scivolare

Other common kinds of business insurance are: • fire and other risks insurance that covers companies against natural disasters • theft insurance that covers firms against property being stolen from their premises 2 • public liability insurance that provides cover for any injury or damage to third parties caused by negligence of the owner or any employees, e.g. if a customer slips 3 in a shop and the court finds the owner is responsible. This type of insurance is very important. • product liability insurance that provides cover against defects in products that cause injury or damage to customers • goods in transit insurance that provides cover against the loss or damage of goods which are being transported • bad debts insurance that provides cover against the risk of customers failing to pay for the goods they have bought on credit from the company.

ACTIVITIES 1 2

Can you name any large insurance companies operating in Italy? Read the first paragraph and write definitions for these terms. 2 indemnity 3 premium

1 insurance

3

250

What types of insurance would cover these risks? 1 Customers not paying their invoices. 2 A factory building burning down. 3 Employees badly injured at work. 4 Stock of goods lost while being transported. 5 A customer who has an accident while on the business premises.

Delivering goods

6

Marine insurance In marine insurance there are various types of policy. • Valued policy 1 which states the value of the shipment. • Unvalued policy 2 which specifies the total sum insured, but not the value of the individual items listed in the invoice. The amount to be given in compensation is ascertained by inspection if and when the claim is made. • Time policy 3 which covers all the shipments during a fixed period of time, from one month to one year. • Voyage policy 4 which covers a shipment during a specific voyage. • Floating or open policy 5 which states the total sum insured. This is gradually reduced as each declared cargo is delivered to its destination, until the total sum is used up. Special clauses may be included in marine insurance. • Free of Particular Average (FPA) 6 covers the total loss of the goods due to an accident involving the ship. If there is only partial loss of cargo, the compensation is not paid. • With Particular Average (WPA) 7 covers total or partial loss of the cargo. • All Risks covers losses caused by specified risks (e.g. theft, breakage, sea water, etc.).

1 valued policy: polizza valutata 2 unvalued policy: polizza non valutata 3 time policy: polizza a tempo 4 voyage policy: polizza a viaggio 5 floating or open policy: polizza flottante 6 Free of Particular Average (FPA): franco d’avaria particolare 7 With Particular Average (WPA): con avaria particolare

ACTIVITIES 1

Read this page and complete the table. Marine insurance policies Amount covered 1

Duration of risk

Valued policy

2 3 4 5 6 7

2

Correct the statements. 1 Policies in marine insurance are always based on the value of the shipment. 2 In a valued policy the value of the shipment is not determined. 3 A time policy covers a cargo for a single voyage. 4 A voyage policy covers a number of shipments up to a stated sum of money. 5 The clause FPA covers only the total or partial loss of the cargo. 251

BUSINESS THEORY

MEDIA FILE

Cyber-attack policies are a challenge for the insurance industry The fastest-growing niche 1 in the insurance industry today is cyber insurance. Specialised policies to protect against online attacks are offered by many different insurance companies. As data breaches 2 have become a reality of the business world, more companies are buying policies. Companies claim, however, that it is difficult to get as much coverage as they need, leaving them vulnerable. The main problem is quantifying losses from cyber-attacks, because they are often intangible – lost sales or damage to a brand name, like the public relations disaster Target suffered after the breach of its pointof-sale systems in 2013. Insurance underwriters 3 lack the data they need to calculate how probable it is that an attack will occur and what it will cost. This is because a lot of cyberattacks are not noticed or are never reported. Information on past attacks is not particularly helpful because attackers are always getting more advanced, and the risk is increasing as companies put their most valuable data online. The problems companies face in getting adequate insurance are illustrated by the situation faced by Target. At the time of its data

breach, the retailer had been able to get about $100 million in cyber insurance coverage. The coverage, which came from multiple insurers, will not compensate much for the $1 billion in losses some analysts are forecasting 4.

Target is the second largest discount retailer in the USA. In late 2013 the company was the victim of a cyber-attack. A hacker gained access to personal data relating to 110 million online customers. The data included names, credit card numbers as well as the card expiration dates and the CVV security codes.

ACTIVITIES WARM UP

1

Read the title of the article and discuss the questions. 1 What kind of insurance do you think cyber-attack policies offer? 2 Why do you think they are a challenge for the insurance industry?

2

Now read the first paragraph of the article and check your answers.

COMPREHENSION

3

Listen to and read the article then complete the definition below. Use the words given. theft • network • employees • use • coverage • virus • electronic • policies Cyber liability coverage is insurance ......................... (1) for liability that arises out of unauthorised ......................... (2) of, or unauthorised access to, ......................... (3) data or software within a ......................... (4) or business. Cyber liability ......................... (5) also provide coverage for liability claims for spreading a ......................... (6) or malicious code, computer ......................... (7), extortion, or any unintentional act, mistake, error, or omission made by ......................... (8) while performing their job.

252

Companion Book, pp. 28, 72

Cyber insurance policies vary widely. The most comprehensive ones reimburse for immediate costs like hiring a forensic  5 firm, notifying customers, setting up call centers and paying for free credit monitoring. Some also cover legal fees and the cost of hiring a crisis management firm. But those costs can be only the tip of the iceberg, experts say. For example, after the breach at Target, its profit was cut almost by half – down 46% over the same period the year before – due to a loss of customers. The loss to the brand is essentially unmeasurable. ‘Most companies think their policy will cover them European Commission press conference on the European from all cyber events, but in reality it only Cybercrime Centre first report, 2014 compensates for a small number of breach events,’ said Jacob Olcott, a cyber security expert at Good Harbor Security Risk Management, which advises companies on the risk. ‘There are too many unknown factors to calculate risk accurately.’ 1 niche: nicchia Another related problem in the market is the uncertainty over how to assess the risk 2 data breach: of cloud computing services, which are enormous repositories 6 for all sorts of data violazione dei dati 3 underwriter: maintained by businesses. A big question is whether the aggregation of data from assicuratore many companies in a cloud service like Amazon’s is safer or more vulnerable. One 4 forecast: breach could mean catastrophic loss for many companies. prevedere Whatever the complexities, cyber insurance is now big business and, somehow, 5 forensic: forense insurers have to face the challenge. They simply can’t afford to stay away from it. 6 repository: (Source: The New York Times)

4

deposito

Answer the questions. 1 Why is cyber insurance increasingly popular? 2 What are the main problems related to cyber insurance for companies? 3 What problems do underwriters face regarding cyber-attacks? 4 What kind of coverage do the most comprehensive cyber insurance policies offer? 5 What security risks can arise from cloud computing?

5

Read about Target and find out the following information: 1 what Target is and where it operates 2 what happened to Target in 2013 3 what consequence the event had 4 how much did the company got from insurance 5 the total amount of damage forecast by analysts 6 the cut in profit that Target suffered because of the event. 253

BUSINESS LANGUAGE

Transport modes ACTIVITIES 1

passenger train

bicycle

hot air balloon

ferry

goods train

oil tanker

container ship

barge

motorbike

plane

car

lorry/truck

boat

van

glider

hovercraft

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

2 254

Match the pictures to the words below. Then listen and check.

Class discussion. Have you ever travelled by any of the more unusual modes of transport? Tell the class about your experience.

Delivering goods

6

ACTIVITIES 3

Now complete the table with forms of transport from ex. 1. Transport by air

4

by road

by rail

by sea

Which form of transport would you select for the transport of: 1 urgent medicines and medical instruments? 3 chemical waste from one part of the country to another? 2 the contents of a house from one city to 4 computers from Tokyo to London? another?

5a

Read the text and underline: 1 the names of people involved in the dispatch of goods 2 the means of transport which may be selected 3 the names of the documents involved. Four parties are involved in the movement of goods: the consignor, who sends the goods, the carrier, who transports them, the consignee, who receives the goods at their destination, and the insurer, who insures them. Goods are usually sent by road, rail, air or sea. The form of transport selected depends on many factors, such as the type of goods to be carried, the distance to be covered and the required speed of delivery. A number of documents are required to cover the transport of goods. The most important are the contract of carriage and the insurance policy. The contract of carriage has three different forms: • if transport is by road or rail, it is known as the Consignment Note • if transport is by sea it is called the Bill of Lading • if transport is by air it is called the Air Waybill. The insurance policy is drawn up between either the consignor or the consignee and the insurance company.

b

Now complete the diagram with the words you have underlined in the text. MEANS OF TRANSPORT

.................. (1) .................. (2)

PEOPLE

DISPATCH OF GOODS

.................. (6)

.................. (3) .................. (4)

.................. (7)

................. (10) .................. (5)

DOCUMENTS

.................. (8)

................. (11)

.................. (9)

................. (12)

CONTRACT OF CARRIAGE 255

BUSINESS LANGUAGE

Payment There are many nouns and verbs related to payment. Complete the table with the missing nouns. Use a dictionary if necessary. Verb

Noun Action

Person

to pay

payment

payee (1) payer (2)

to remit

....................................................... (1)

remitter

to settle

....................................................... (2)

....................................................... (3)

to purchase

purchase

....................................................... (4)

to draw

draft

....................................................... (5) ....................................................... (6)

to finance

finance

....................................................... (7)

to credit

credit

creditor

to sell

....................................................... (8)

....................................................... (9)

to debit

..................................................... (10)

debtor

(1) The ending -ee refers to the person receiving the action. (2) The ending -er refers to the person carrying out the action.

ACTIVITIES

256

1

For each sentence underline the correct alternative. 1 You can draw/pay a draft on us at 60 days. 2 L/C is a common method of purchase/payment in international trade. 3 How are you going to settle/finance this project? 4 Could you please settle/sell the invoice amount in cash on delivery of the goods? 5 We have borrowed some money from them and so we are one of their debtors/creditors. 6 As you are one of our regular customers, we can grant you quarterly remittance/settlement. 7 The drawer/drawee accepts a B/E by signing and dating it. 8 You must settle/remit your account by the end of this month.

2

Fill in the blanks with for when necessary. If no word is necessary, put ✗. 1 How much did you pay ........................ the consignment? 2 AVT paid us £1,800 ........................ our services. 3 We will pay ........................ the invoice on receipt of the documents. 4 Are you paying ........................ cash or by credit card? 5 Do we have to pay ........................ the transport in advance? 6 We pay ........................ our workforce on the 27th of the month. 7 I paid €600 ........................ the new software. 8 Have we paid ........................ the insurance yet?

Delivering goods

6

To pay/To pay for 1 To pay + (who?) + (how much?) + for + goods or services bought They have agreed to pay us £210,000 for the apartment. You should pay for the consignment on receipt. 2 To pay + (who?) + (what?) I am happy to say that I paid them the last instalment on my account last month. We will pay the invoice immediately.

Stating when payment will be effected 1 By / within + time Payment will be effected +

by + exact time or date (= before). within + period of time (= during).

They must pay us by June 10th. The account must be settled within the next 15 days. 2 At + number of days Payment D/A at 30 days. Payment by L/C at 90 days from the receipt of goods. 3 On + exact date The account was credited on 6th April.

ACTIVITIES 3

Complete the sentences with by or within. 1 The financial manager should have arrived at London airport .............................. now. 2 The money will be in your account .............................. the 12th. 3 The pro-forma invoice should be sent .............................. 10 days of request. 4 Mrs Thompson will be back .............................. 15 minutes. 5 The goods will be sent .............................. the end of this week. 6 We will pass the account to our solicitors, unless we receive payment .............................. five working days. 7 The goods ordered cannot be delivered .............................. the next four weeks. 8 The first consignment should reach you .............................. June 1st.

4

TRANSLATION Translate the sentences into English. 1 Il pagamento deve essere effettuato entro 60 giorni dalla data della fattura. 2 La Ditta RCT ha saldato il suo debito tramite bonifico bancario. 3 I documenti relativi alla merce Vi saranno spediti entro il 20 febbraio. 4 La nostra banca effettuerà il pagamento di €50.000 tramite lettera di credito. 5 Il 15 giugno abbiamo ordinato un bonifico sul Vostro conto a saldo della fattura No. 326. 6 I documenti devono essere spediti entro il 15 di questo mese.

257

BUSINESS LANGUAGE

Giving extra information In financial transactions sellers and buyers often have to give extra information, for example to explain a problem or the involvement of third parties. This is particularly so when payment is delayed for some reason. Defining and non-defining relative clauses are often used for this.

Relative clauses Relative clauses provide extra information about a noun or noun phrase. Compare these sentences: 1 The invoice which has not been settled is No. 375. 2 I am writing with reference to invoice No. 375, which was due for settlement last month. • That can replace the relative pronouns who or which. It is more informal. • That can be omitted in relative clauses which define the object of a sentence. • That is usually preferred with superlatives.

• The relative pronouns cannot be omitted in non-defining relative clauses. • That is not used in non-defining relative clauses. • Whom can be used instead of who to define the object in formal written speech. • When the relative clause contains a preposition, it is possible to place it before the relative pronoun. This is very formal.

258

In sentence 1 the relative clause is defining. It tells us which invoice has not been settled. The relative clause cannot be omitted. In sentence 2 the relative clause is non-defining. It adds extra information about invoice No. 375. It is not vital to the sentence and could be omitted. Non-defining relative clauses are separated from the rest of the sentence by commas.

Defining relative clauses Defining relative clauses are introduced by the following pronouns. Subject Object

person/company who/that (that)

thing which/that (that)

The man who is in Mr Smith’s office is a new customer. A bill of exchange is a method of payment which is used in international transactions. The L/C is the most common method of payment that is used in international transactions. The company (that) we investigated appear to have large financial reserves. Have you received the bank transfer (that) we ordered?

Non-defining relative clauses Non-defining relative clauses are introduced by the following pronouns. Subject Object

person/company , who…, , who…, , whom…,

thing , which…, , which…,

We passed your enquiry on to the Financial Investigation Bureau, who have prepared this report. They paid for the consignment by letter of credit, which is a common form of payment in business. Mr Richards, to whom the letter was addressed, is away on business. The cheque, which we received this morning, was dated 12th May.

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6

ACTIVITIES 1

Read the sentences and decide if the relative clauses are defining (D) or nondefining (ND). 1 The Shoe Company, who is based in Los Angeles, has asked us to supply the goods on open account terms. 2 The letter is from the company who would like to open account terms. 3 We do not accept responsibility for this information, which is intended for your sole and exclusive use. 4 Payment in advance is generally used with contracts which require large investments. 5 We are enclosing the documents concerning the consignment, which will be forwarded as soon as you open a L/C in our favour.

2

Make five sentences by combining the three sections below. 1 A quotation is a document 2 We were sorry to hear about the fire 3 Ms Franklin is the woman 4 The man 5 Payment in advance is a method of payment who which • damaged your factory. • is quite rare in international trade. • specifies the total amount a buyer has to pay for an order. • deals with the accounts.

3

Complete the sentences with the missing relative pronouns. Put the pronoun in brackets if it can be omitted. 1 Here are the documents ......................... relate to the shipment. 2 This letter is from the company ......................... we wrote to last month. 3 Jenny Little, ......................... works for Hardcraft Ltd, wants to speak to you. 4 The man ......................... I spoke to was the Accounts Manager. 5 The company, ......................... is based in Rome, has a very good reputation. 6 The people ......................... are at the reception are the new sales representatives. 7 Jake Green, ......................... we employed last summer, is one of the top recruits. 8 This method of payment, ......................... we often use, is very convenient for us. 9 The companies ......................... I contacted were all interested in the products. 10 Mr Clark, to ......................... the complaints were directed, was unavailable for comment.

4

Rewrite the sentences using relative clauses. 1 Ms Topping personally wrote the letter. She is the Chief Accountant. ...................................................................... 2 The company has not sent the overdue payment yet. It is usually very reliable. ...................................................................... ......................................................................

1 ......................................................................

3 Maarouf Brothers have suggested we contact you for a reference. They have placed a first order for $30,000.

......................................................................

......................................................................

2 ......................................................................

......................................................................

......................................................................

4 We look forward to receiving your reply. It will be regarded as strictly confidential.

• deals with this matter is not at work today.

3 ...................................................................... ......................................................................

......................................................................

4 ......................................................................

5 Brown & Peters unexpectedly went bankrupt a few weeks ago. They are one of our best customers.

...................................................................... 5 ...................................................................... ......................................................................

...................................................................... ......................................................................

259

BUSINESS LANGUAGE

Complaining Business transactions do not always run smoothly. If the conditions stated in an order are not met, the customer may find it necessary to complain about the unsatisfactory execution of his order. In a letter of complaint, the facts must be stated clearly. Subordinating conjunctions and linking adverbs can be very useful to express contrast and to link ideas together.

Expressing contrast • Subordinate clauses can come before or after the main clause. • Even though is more emphatic than although and though.

• However and neverthless can go in the middle position of the clause. For instance, the second example on the right could change to: We feel, nevertheless, that you should have checked the consignment more carefully. • All the same is less formal than nevertheless and even so.

260

1 Subordinating conjunctions Clauses of contrast are subordinate clauses which contain information that contrasts with the information in the main clause. They are introduced by subordinating conjunctions. The main subordinating conjunctions are: although/though

Although/Though we stated that the items should be carefully packed, some of the articles were damaged due to insufficient padding.

even though

Even though we stated that the items should be carefully packed, some of the articles were damaged.

while

While there is no discrepancy regarding the sacks of olives, you forwarded 1,300 cases of lemons instead of 1,900. Item number M357 has been charged twice, while we received only one model.

whereas

You sent 2,700 cases of ‘Regina’ table grapes, whereas our order was for only 2,100.

2 Linking adverbs Sentences which are in contrast with each other can be linked by adverbs such as: however

I am writing to confirm the arrival of order No. 684/01. We regret to inform you, however, that in one of the cartons we found items we had not ordered.

neverthless/ even so/ all the same

We understand that you were not directly responsible for packing. Nevertheless/Even so/All the same, we feel that you should have checked the consignment more carefully.

Adding further similar information If a customer has more than one reason to complain, he can introduce his second and subsequent complaints and link them to the first using linking adverbs like: moreover/ furthermore/ in addition

We regret to inform you that the consignment contained 10 executive briefcases model M40372, instead of M40362. Moreover/ Furthermore/In addition, we noted that these items cost £15 more than the ones we ordered.

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6

ACTIVITIES 1

2

Combine the pairs of sentences using the conjunctions given in brackets. Ex. The order was requested urgently. We have still not received the items. (although) Although the order was requested urgently, we have still not received the items. 1 I apologise for the inconvenience caused. I cannot accept full responsibility. (even though) ...................................................................... 2 We noted that the woollen jumpers, KD438, had been charged at £35.99. The original price was only £25.99. (while) ...................................................................... 3 On checking the cartons we found only 20 items of model WT451. We ordered 25 items. (whereas) ...................................................................... 4 We stated that the cotton bales should be completely covered by heavy duty plastic. We found the plastic to be of low quality and several of the bales were damaged by sea water. (though) ...................................................................... Complete the gaps in the sentences with an appropriate linking adverb. 1 Our order of crystalware reached us yesterday. I regret to inform you, .............................., that some of the articles were found to be damaged. 2 We understand that you had difficulty interpreting our faxed order. .............................., we think you should have contacted us to check the details before shipping the fruit. 3 The samples we examined were 90% wool and 10% nylon. .............................., after examining the rugs you delivered, we are convinced the wool percentage is much lower. 4 I cannot understand how the items were broken as they were packed with great care. .............................., I am willing to send you replacement items. 5 We are sorry to hear that the goods have not yet arrived. .............................., we must inform you that they were dispatched on May 5th.

3

TRANSLATION Translate the sentences into English. 1 Sebbene non abbiate ordinato il minimo della merce richiesta, siamo disposti a effettuare la spedizione via corriere. 2 Siamo certi che avete fatto del Vostro meglio; tuttavia se la partita non arrivasse in tempo ci troveremmo in gravi difficoltà. 3 La merce che ci avete consegnato non era della qualità del campione da Voi inviato. Inoltre il colore di alcuni capi era sbagliato. 4 Abbiamo notato che ci avete inviato solo cinque scatole dell’articolo X223, mentre nel nostro ordine del 12 giugno ve ne avevamo richieste sette. 5 Sappiamo che non siete responsabili del disguido. Ciò nonostante, pensiamo che avreste dovuto verificare la spedizione con maggiore attenzione.

4

Complete this letter by adding the missing words. Dear Mr Richards, I am writing to inform you of the arrival of order No. 654/02. I regret to inform you, .............................. (1), that in one of the cartons we found items that we had not ordered. This carton contained executive briefcases, model No. M34, .............................. (2) we had ordered model No. M35. .............................. (3), we noted that these items were 15% more than the ones we ordered. .............................. (4) this error will cause us some difficulties, we are prepared to keep them if you grant us a 25% discount. We feel that this would be less expensive for you than the return of the consignment. .............................. (5) we would in any case be obliged to cancel the original order, as it would now be too late for the Christmas sales. Please let us have your instructions by return. Yours sincerely, Kate Manning Chief Buyer

261

BUSINESS COMMUNICATION

Complaints and adjustments Telephone complaints 1

Read and listen to the telephone complaint and complete the complaint form on page 263 with the missing information. Add today’s date and time.

Julia Hinde: Hello. Paperstar Ltd. Paul Moore: Hello, is that the Customer Service Department? Julia Hinde: Yes, it is. Julia Hinde speaking. How can I help you? Paul Moore: My name’s Paul Moore. I work at the Community Care Centre in Barford. I’m afraid I’ve got a problem with an order I recently placed with you. Julia Hinde: Oh dear! Could you give me the order number, please? Paul Moore: Yes, it’s PP/122. Julia Hinde: PP/122… Ok, I’ve got that. You ordered 15 packs of A4 multipurpose paper. What’s the problem exactly? Paul Moore: Well, the packages arrived this morning, but the paper in them isn’t the type that we ordered. It appears to be photograph paper of various sizes. Julia Hinde: Oh, I’m sorry about that! Um… I’ll check with the Packing Department and try to find out what’s happened. Can I call you back in a few minutes? Paul Moore: Yes, certainly. Talk to you later, then. Julia Hinde: Yes, goodbye for now. 10 minutes later… Paul Moore: Hello. Barford Community Centre. Julia Hinde: Hello. Is that Paul Moore? Paul Moore: Yes, it is. Julia Hinde: Hello again, Mr Moore. It’s Julia Hinde here from Paperstar Ltd. I’ve spoken to the Packing Department and it seems that they confused your order with another similar order and the packages were wrongly addressed. Paul Moore: Oh, I see. So what should I do now? Julia Hinde: Oh, you don’t have to do anything. I’ll arrange for your order to be delivered tomorrow. The courier will also collect the incorrect consignment that you received today. Paul Moore: Ok, that’s fine. Thank you for your help. Julia Hinde: That’s no problem, Mr Moore. And I do apologise for the inconvenience. Let me know if you have any further problems. Paul Moore: I will, thank you. Goodbye for now, then. Julia Hinde: Goodbye. 262

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PAPERSTAR Ltd

6

TELEPHONE COMPLAINTS

Date: ...........................................................................

Time: ..........................................................................

Name: ........................................................................

Company: ................................................................

Order number: .......................................................

for (products): ........................................................

Details of complaint: ................................................................................................................................................ Reason for error: ........................................................................................................................................................ Action taken: ...............................................................................................................................................................

2

Read the dialogue on page 262 again and find the appropriate phrases for the functions below. • What Paul Moore says to: 1 make the complaint ................................................................................................................. 2 ask for instructions about what he should do with the incorrect packages ............................... • What Julia Hinde says to: 3 ask for the order number .......................................................................................................... 4 ask what the complaint is about ............................................................................................... 5 apologise a ........................................................................................................................... b ........................................................................................................................... 6 promise to do something a .................................................................................................... b ...................................................................................................

3

Complete the dialogue with words and phrases from ex. 2. Then listen and check your version. A: Good morning. White’s Kitchens Ltd. B: Hello. My name’s John Williamson. I’m ............................................................ (1) that I recently ............................................................ (2). A: Oh dear! ........................................................................................................................... (3)? B: It’s KK/990. A: KK/190. And ..................................................................................................... (4)? B: Well, the order arrived this morning, but some of the glass items are broken in one of the packages. A: Oh, ............................................................ (5)! If you send me an e-mail with a list of the broken items, I ..................................................... (6) to be replaced. B: Ok, fine. But what ............................................................ (7) with the broken items? A: Um… just keep them for now. The courier will collect them when he delivers the replacement items. B: Ok, thank you. I’ll send an e-mail today, then. A: Thank you. Goodbye for now.

4

Listen to the telephone conversation and answer the questions. 1 Where does Ken Dawson work? 3 What exactly is the problem? 2 Why does he phone Kingsley’s Fine Wines? 4 What does he agree to do? 263

BUSINESS COMMUNICATION

Key language: complaints on the phone I’m afraid I’ve got / there’s a problem with... MAKING A COMPLAINT Actually, I’m phoning to complain about...

INITIAL REACTION / ASKING FOR CLARIFICATION

Oh dear. I’m sorry to hear that. What’s the problem exactly?

I’ll just take some details. Could you describe... TAKING DETAILS Let me see if I can help. I just need a few details.

I do apologise for the mistake. APOLOGISING I’m very sorry about the mistake.

ASKING FOR INSTRUCTIONS

What should I do with…?

I’ll check with / look into the matter immediately. PROMISING ACTION I’ll arrange for / organise...

1a

Read the information below then complete your part of the telephone call. Use phrases from the box above. You are the owner of Cut and Style, a hairdressing salon. You recently received an order (No. A/89) for hair products. On opening the pack you discovered that some of the products had been damaged in transit (x15 professional care shampoos). You phone the supplier to complain. Supplier: Good morning. Wilkinson’s beauty care products.

Supplier: I see. I’ll arrange for replacements to be sent immediately.

You: I'm ........................................ (1) the owner of ........................................ (2).

You: ........................................ (6) the damaged products?

Supplier: How can I help you?

Supplier: Um… can you keep them until tomorrow? We’d like to see them to try to understand how they were damaged.

You: ....................................................................... ........................................................................... (3). Supplier: Oh, dear. I’m sorry to hear that. What’s the order number, please?

b 264

You: Ok, I .............................. (7) that.

You: ....................................................................... ........................................................................... (4).

Supplier: Thank you very much. I’ll arrange for a local sales representative to call tomorrow to collect the products.

Supplier: And what’s the problem exactly?

You: Ok, thank you. Goodbye for now.

You: ....................................................................... ........................................................................... (5).

Supplier: Goodbye.

Now listen to the telephone conversation and compare it with your version.

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2a

ROLE PLAY Work in pairs. Read the role cards and practise making the phone call. Exchange roles. Student A

Student B

You are the Sales Manager of Fine China Ltd (UK). Your company sent a consignment of bone china tea sets in Lienz, Austria. The customer telephones to complain about the execution of the order.

You work for Eigenheim, in Lienz, Austria. Telephone to the Sales Manager of Fine China Ltd in the UK to complain about the fact that your order of bone china tea sets arrived damaged.

• Answer the phone. Say who you are. • Greet the customer and offer your help. • Apologise and promise to look into the matter. State that replacements will be sent free of charge if their packing instructions have been overlooked. Ask your customer to send you a list of the damaged articles. • Apologise again and promise better service in the future.

b 3

6

• Give your personal details and company name. • Complain about the execution of the order. State that the goods were packed inappropriately (in cardboard boxes instead of wooden crates). The items in one of the boxes were broken. • Agree. Express disappointment with the service.

Now listen to the telephone conversation and compare it with your version.

ROLE PLAY Work in pairs. Read the role cards and practise making the phone call. Exchange roles. Student A

Student B

• Sei il direttore di 20/20 Vision, un negozio di occhiali di Cardiff.

• Sei il direttore vendite di GRS SpA, una ditta produttrice di occhiali da sole di Bologna.

• Telefona al direttore vendite di GRS SpA, una ditta produttrice di occhiali da sole di Bologna. • Devi inoltrare un reclamo relativo all’ordine n° 132/F L’ordine è stato eseguito regolarmente, ma l’articolo n° 542 è stato fatturato £199, anziché al prezzo di catalogo di £150.

• Ricevi una telefonata di reclamo dal direttore di 20/20 Vision un negozio di occhiali di Cardiff, vostro cliente da lungo tempo. Il reclamo riguarda l’errata fatturazione di uno degli articoli nell’ordine 132/F. • Scusati per l’inconveniente occorso e proponi una soluzione per risolvere il problema. Se il cliente accetta, prometti di provvedere al più presto.

265

BUSINESS COMMUNICATION

Written complaints Letters/e-mails of complaint should be concise and factual. The reason for complaint should be outlined clearly with all the relevant details, dates and requirements. They should also have a considerate and cooperative tone. A well written, constructive and polite complaint will result in action more quickly than a confrontational and aggressive letter. More

Subject: Order number AB/090 From: To:

[email protected] [email protected]

Inbox

Date: 2nd June 20..

Dear Sir/Madam, We are writing to confirm the arrival of a consignment of glass mirrors, order number AB/090. We regret to have to inform you, however, that some of the mirrors arrived cracked. The damaged items were all packed in a single crate. On closer inspection, the padding appeared to be sufficient, so we imagine that the damage was due to mishandling during transport. We are attaching a list with full details of the damaged items. We are also attaching a photocopy of the carriage note with the carrier’s report on damage for insurance purposes. We would be grateful if you could send us replacement items as soon as possible, as the goods are now urgently needed. We look forward to hearing from you. Yours faithfully, John Peterson

1

Read the introductory paragraph and list the three main requisites for a good letter of complaint. ..................................................................................................................................... ..................................................................................................................................... .....................................................................................................................................

2

Read the e-mail and answer the questions. 1 What order does the e-mail refer to? 2 What type of goods were forwarded in the consignment? 3 What does Mr Peterson complain about? 4 Why does he think that the damage occurred? 5 What documents are enclosed with the e-mail of complaint? 6 What does Mr Peterson ask the supplier to do?

266

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6

BRYANT SOLICITORS Greenwich House, 188 Compton Street, London EC2V 7AR

The Letter Press Winton Business Centre 122 Hackney Road London E2 9AQ 12th May 20.. Attention: Caroline Hawkings Dear Ms Hawkings, Re: Order number 865 I’m writing to inform you that I have not yet received the consignment for my order (No. 865) for headed notepaper and invoice forms. I placed the order on 30th March and, at the time, you assured me that the items would be delivered within 20 days. As the delay is causing us considerable inconvenience, I regret to have to inform you that we will be obliged to cancel the order unless you can confirm delivery within the week. I look forward to a prompt reply, Yours sincerely, Tina Kershaw

1

2

Read the letter and tick (✓) the correct statements. 1 The complaint relates to a items not ordered.

b

inferior quality.

2 The buyer requests a delivery in a week.

b

an immediate rebate.

c

late delivery. c

immediate delivery.

Complete the sentences summarising the complaint. 1 Bryant Solicitors sent an order to ...................................................................... for ...................................................................... . 2 The order was placed on ...................................................................... . 3 The goods should have been delivered within ...................................................................... . 4 The buyer makes a complaint because ...................................................................................................... . 5 They ask the supplier to ...................................................................... unless they can deliver the goods .......................................................... .

267

BUSINESS COMMUNICATION

Written adjustments Document 1 More

Subject: Order number AB/090 From: To:

Inbox

Date: 3rd June 20..

[email protected] [email protected]

Dear Mr Peterson, Thank you for your e-mail of 2nd June relating to the consignment of your order No. AB/090. We were extremely sorry to hear that some of the items had been damaged in transit. We have already sent the replacement items by express carrier and they should arrive within a few days. We have also filed a claim for compensation with the insurers and we would be grateful if you could keep the damaged items until further notice, in case the insurance company needs to inspect them. Despite the care we take in packing goods there have recently been several reports of damage and we have taken the matter up with our regular shipping company. Please accept our sincere apologies for this regrettable inconvenience. Yours sincerely, Gillian McEwan

Document 2 More

Subject: Order number 865 From: To:

Inbox

[email protected] [email protected]

Date: 15th May 20..

Dear Ms Kershaw, With reference to your letter of 12 th May, I was surprised to hear that you had not yet received the consignment of your order number 865. I immediately checked the matter with the Printing Department and they assured me that the order had been processed and that the stationery was ready for delivery. The delay appears to be related to an oversight in the Packing Department. I have now arranged for express delivery by DHL and the items should arrive within the next 24 hours. We sincerely apologise for this problem and assure you that more attention will be given to your future orders. Yours sincerely, Caroline Hawkings

1

Read the e-mails and answer the questions. Document 1 1 When did Ms McEwan receive the complaint? 2 What has she already done? 3 When should Mr Peterson receive the replacement items? 4 What is the supplier asking the buyer to do regarding the damaged items? Why? 5 Who is Ms McEwan blaming for the damage? 6 What action is she taking?

268

Document 2 1 What did Ms Hawkings do when she received the complaint? 2 What did the Printing Department assure her of? 3 Who is to be blamed for the mistake? 4 What action has Ms Hawkings taken? 5 When are the goods due to arrive?

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6

Complaints and adjustments: letter plan and phraseology 1

Read the standard phrases below and complete the letter plan with appropriate headings. Apologies / Assurance of better service • Adjustment • Request for response / confirmation • Reason for complaint • Suggested adjustment • Explanation COMPLAINTS Paragraph 1

Reference to execution of order .........................................

Paragraph 2 .........................................

Paragraph 3 .........................................

• I am writing to confirm… – the arrival of order No. … on… – that our order arrived on… • I’m writing to inform you that I have not yet received order No. …, due to arrive on… • On checking the consignment / invoice, however, we noticed / found that… • I regret to have to inform you that… • On closer inspection, … • We would be grateful if you could send us replacement items… • We are prepared to keep the items if you can grant us… • You should be prepared to accept a rebate of… • As this is not the first time I have had to complain about…, I suggest that you…

Paragraph 4 .........................................

• Please let us have your instructions by return / reply as soon as possible… • I look forward to receiving a prompt reply.

ADJUSTMENTS Paragraph 1 Acknowledgement of complaint ......................................... Paragraph 2 .........................................

• With reference to your fax / letter of…, I regret the problems relating to the execution of your order / the inaccuracies relating to your order. • Thank you for your letter of… relating to… • With reference to your letter / e-mail of… I was surprised to hear that… • The error was / seems to have been made because your order was sent by fax… • We immediately checked our copy of the invoice and saw that… • I checked the matter with the… Department and they assured me that…

Paragraph 3 .........................................

• Replacements have immediately been sent by express carrier. I have also filed a claim for compensation with the insurers… • Please let me know the price you have obtained so that… • We enclose a credit note for the figure you paid in excess. • A member of staff will visit you to compare the quality of the articles with the samples you saw.

Paragraph 4 .........................................

• I apologise for this regrettable inconvenience and promise that more attention will be given to your future orders. • We sincerely apologise for this problem and…

269

BUSINESS COMMUNICATION

Writing: complaints and adjustments 1

Number the paragraphs below in the correct order. Then rewrite the complaint. I look forward to receiving a prompt reply. As the invoice has already been settled by the bank, we would be grateful if you could let us have a credit note for the amount paid in excess. On checking the invoice, however, we noticed that jumpers model YG had been charged at $17.00 whereas the catalogue price was $16.50. I am writing to confirm the arrival of our order No. B/86 for sports clothes.

2

Fill in the blanks in the sentences below. Then number the paragraphs and rewrite the letter responding to the complaint in ex. 1. ......................................... (1) for your letter of 18th July in which you ......................................... (2) an error in the entries of your invoice No. 876. We enclose a credit note for the amount you ......................................... (3). May I ask you to credit your next invoice with that amount? I ......................................... (4) hearing from you. We apologise for ......................................... (5) and promise that ......................................... (6) to your future orders. We immediately ......................................... (7) of the invoice and saw that jumpers model YG were mistakenly charged at $17.00 instead of $16.50.

3

Complete the e-mail using words and phrases from page 269. Dear Mr Di Giacomo, I am ................ (1) to confirm that our .................... (2) No. 456/YB arrived yesterday. On .................................... (3) the invoice, however, we noticed that the number of cases sent does not correspond to the items we ordered. You forwarded 500 cases of tomatoes instead of the 450 cases we ordered. This error is causing us a great deal of inconvenience, but we are prepared to .............. (4) the cases in excess if you can ....................... (5) us a 20% discount. I look forward to .............................................................. (6). Yours sincerely, Steve Allen Chief Buyer Send

4

TRANSLATION Rewrite the letter below. Complete the translation into English. Dear Sir/Madam, Vi ringraziamo per la vostra lettera del 20 maggio in cui ci segnalate che (1) some of the items in your order No. 54T were damaged during transit. Ho controllato immediatamente (2) with the Packing Department and it appears that le Vostre istruzioni circa l’imballaggio delle merci non sono state seguite (3) accurately. I have today forwarded replacements via express carrier; la consegna dovrebbe arrivarVi entro i prossimi due giorni. Ci scusiamo per lo spiacevole inconveniente e promettiamo di prestare maggiore attenzione in futuro. Distinti saluti (4), Henry Boots

270

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5

6

You work for The Yoga Center, Atlanta. You recently sent an order for yoga wear and mats to Shanghai Comfort Sportswear Co., Ltd, Shanghai. Unfortunately, on checking the consignment, you found a number of errors. Write a complaint to the supplier and ask for an adjustment. • Refer to the execution of the order (I am writing to confirm...). • Give the reasons for the complaint: – articles missing but charged for on the invoice: 15 items JH/45, 10 items JK/5 – item JT/4 charged at $8.50 instead of $8.00 (On checking...). • Suggest an adjustment: missing items to be sent, credit note for excess amount paid (Please send us... as soon as possible. We would be grateful if you could...). • Request a prompt reply (I look forward to...).

6

Write a reply to The Yoga Center. Follow the guidelines. • Acknowledge the complaint (With reference to your letter of... I regret...). • Give reason for error: both the Packing Department and the Accounts Department have confirmed that mistakes were made (I have checked with the... and they have confirmed that... In addition...). • Refer to adjustment: missing items forwarded by express carrier; credit note against next order (The missing items have been... . In relation to the amount paid in excess for... I am...). • Apologise and refer to future business (I sincerely apologise for...).

7

You work for Tom White Garden Centres, London. You recently received a consignment of bulbs from Flora Holland, Amsterdam. Unfortunately, 100 cases of bulbs arrived damaged, as the cases had been broken. Write a complaint to the supplier. • Say that you feel that the bulbs were inadequately packed. • Add that it will be impossible for you to sell the damaged item. • Ask for a new consignment as soon as possible.

8

Write a reply to Tom White Garden Centres. Follow the guidelines. • Say that you were extremely surprised to receive their complaint. • Explain that you cannot accept responsibility for the damage, as the goods were packed correctly and the problem has never occurred before. • Add that you feel the damage must have occurred during transport and that you have taken the matter up with the carriers. In the meantime, a new delivery of bulbs has already been sent. • Apologise for the inconvenience and assure the customer that you will continue to do your best to meet his future requirements.

9

In data 2 settembre hai ordinato 500 borse da viaggio modello LC 93634 in vari colori per il tuo negozio Valigeria De Bartoli di Milano. La merce doveva essere consegnata entro il 15 di ottobre, ma oggi (20 ottobre) non è ancora arrivata. Scrivi al fornitore TVC Ltd di Taipei. Usa queste note: • Segnala il ritardo nella consegna della merce. • Fa’ notare che hai assoluta necessità delle borse entro la fine di ottobre. • Chiedi che ti vengano inviate immediatamente, altrimenti sarai costretto a cancellare l’ordine.

271

BUSINESS COMPETENCE

Key vocabulary Transport and insurance 1

Complete the sentences. 1 Transport is carried out via three main modes: a ........................................................................................ b ........................................................................................ c ........................................................................................ 2 The factors to be considered when choosing the appropriate means of transport are: a ........................................................................................ b ........................................................................................ c ........................................................................................ d ........................................................................................ 3 The main types of transport by land are: .............................. transport, .............................. for transporting oil, gas and petrochemicals and .............................. for moving bulk freight over long distances. The document used in land transport is called the .............................. . 4 Transport by water is mainly effected by .............................. . The document used in this type of transport is called the ............................................................ . 5 The document used in transport by air is called the .............................. .

2

Match terms and definitions. 1 logistics 2 containers

3

intermodal carriage

4

forwarding agents

a Transport using different means, such as trains, ships, planes, trucks, etc. b People who take care of all the operations involved in packing, insurance and import/export procedures. c The process of planning, implementing, and controlling the effective and efficient flow of goods and services from the point of origin to the point of consumption d Standardised packing units consisting of large boxes in which goods are packed enabling them to be easily lifted onto ships or trains.

3

272

Underline the correct alternatives in each definition. 1 An insurance policy is a written / oral contract between the insurance company and the insurer / insured. 2 The indemnity is the initial / final compensation obtained by the insured / insurance company in the case of an accident. 3 The premium is the amount of money to be paid to the insurance company for the policy / requested by the insured in the case of an accident.

Delivering goods

6

Business skills MAKING A TELEPHONE REQUEST

1

You work for a British electronics company (Tecnoglobe Electronics Ltd). You are arranging the delivery of a consignment of electronic goods on CIF terms. The goods are going to be sent by ship from the port of Southampton in the UK to the US port of New Orleans, Louisiana. The total cost of the consignment is €42,500 and you would like to insure them for the voyage. Phone Brit Insurance Ltd. Follow the guidelines. • Ask for a quote for a Voyage policy FPA. • Give the departure date (4th April) and the estimated date of arrival (12th April). • Ask the insurance clerk to fax or e-mail you a quote as soon as possible. • Give your e-mail address.

GIVING AN ORAL REPORT

2

Use the titles below to make notes about transport. Then use your notes to prepare an oral report. • the four main modes of transport • the main types of transport for each mode • the advantages and disadvantages of each mode of transport • the factors you need to consider when choosing an appropriate means of transport • the documents you need to complete for each mode of transport

WRITING AN E-MAIL RESPONDING TO A COMPLAINT

3

You work for J. Revie & Sons, a clothing manufacturer in Manchester. You have just received a telephone call from a regular customer (Mr Marley, Mill Bros, Edinburgh) complaining that a recent order he made has not been delivered. You have promised to look into the complaint and get back to him by e-mail as soon as possible. Read the background information and write an e-mail to the customer. Complaint from: Mill Bros, Edinburgh Regarding: Delivery of order number AC 255 • The order was lost and hasn’t been processed. • The goods ordered are not available at the moment. • You can send similar alternative articles immediately but they are more expensive. • Given that Mill Bros is a regular customer, you are willing to sell the replacement articles at the same price as the goods in the original order. • You need confirmation and acceptance of the offer before you can start processing the order. • If the proposal is acceptable, you will deliver the goods within five working days. 273

BUSINESS COMPETENCE

Into work Problem solving: sea transport – the Bill of Lading Mancini, Fabbrica italiana macchine per cucire, SPA – 10137 Torino, has sent 200 sewing machines to Messrs. Ervell and Sons, Austin, Texas, USA, on CIF terms. The cartons containing the sewing machines have been put into a 10m3 container marked Ervell and Sons, Austin, A306, 200 and delivered by truck to the port of Genova. The container will be loaded on board the vessel Seagull of Sea land Container Line, USA, due to sail to Philadelphia on March 26th, 2015.

1

274

Complete the Bill of Lading, prepared by Agenzia Marittima Italiana SPA, Genova, as agents for the Sea Land Container Line, on receipt of the freight payment. • The gross weight of the goods is 3,000 kg. • The exporter’s reference is 125/A306/200. • The forwarder’s reference is 125/A306/SG.

Delivering goods

6

Work simulation 3 TITLE:

OBJECTIVE:

Complaining.

To make and respond to a complaint.

METHODS OF WORK:

YOU WILL NEED:

Small group work.

Copies of the letters you wrote in work simulations 1 and 2.

BACKGROUND INFORMATION: You work in the Purchasing Department of the company your group represented in work simulations 1 and 2. You have recently received the consignment of goods that you ordered in work simulation 2. There are some problems relating to the consignment.

WORK STEPS Organisation Divide into your groups from work simulations 1 and 2. Each group represents one of the following companies: COMPANY A:

COMPANY B:

LGT – Viale dell’Industria 9, 37135 Verona – an Italian manufacturer of office furniture

ABC Electronics – 150 Upper Brook Street, Manchester, Lancashire MI OHR – a UK discount chain store of electronic equipment

Writing an enquiry COMPANY A:

COMPANY B:

Some of the items that you ordered are missing from the consignment. Write a letter to company B, referring to the execution of the order and outlining your complaint. List the missing items and request urgent delivery.

Some of the items that you ordered have been damaged during transit. Write a letter to company A, referring to the execution of the order and outlining your complaint. List the damaged items and ask for replacements to be sent as soon as possible.

Writing a reply to an enquiry You receive a letter of complaint from a customer. Read the letter and discuss how to react to the complaint. Write a letter to your customer apologising for the problem. Outline your proposals with regard to the order.

275

DIGITAL EXPANSIONS

DIGITAL EXPANSIONS

Module 6 • Insurance (SB p. 250)

Lloyd’s of London

• VIDEO: A telephone conversation about a problem

• ESAME DI STATO

Keywords in Business The meanings of the terms listed are limited to the context in which they are used.

English – Italian A acceptance accettazione account conto – account for essere responsabile di – open account conto aperto – statement of account estratto conto accountant contabile acquisition acquisizione adjustment accomodamento, rettifica advance anticipo – in advance anticipatamente advert, advertisement inserzione, annuncio pubblicitario advertising pubblicità – advertising media mezzi pubblicitari agent agente – forwarding/shipping agent spedizioniere agreement accordo air freight/transport trasporto aereo air waybill/consignment note lettera di trasporto aereo All Risks polizza contro tutti i rischi application domanda di lavoro apply for presentare domanda di lavoro approval approvazione – on approval su approvazione ATM (automatic teller machine) bancomat

B balance saldo – check a balance controllare il saldo balance of trade bilancia commerciale balance of payments bilancia dei pagamenti bank/banker’s transfer bonifico bancario bankgiro credit giroconto bancario bankrupt bancarotta – go bankrupt andare in bancarotta beneficiary beneficiario bill cambiale, conto, fattura; banconota (USA) bill of exchange (B/E) tratta bill of lading (B/L) polizza di carico billboard cartellone pubblicitario board of directors consiglio d’amministrazione

book-keeping ragioneria, contabilità branch filiale brand marchio – brand loyalty fedeltà al marchio branded goods prodotti firmati brochure depliant bulk gran quantità – buy/sell in bulk comprare/vendere all’ingrosso business affare – family business azienda a conduzione familiare – business letter lettera commerciale – set up a business avviare un’azienda buyer compratore

C CAD (cash against documents) documenti contro pagamento C-terms clausole con trasporto principale pagato capital capitale – capital goods beni durevoli carriage trasporto – carriage forward porto assegnato – carriage paid porto franco carrier vettore, corriere cash contanti – cash flow liquidità certificate of origin certificato d’origine CFR (cost and freight) costo e nolo channel of distribution canale di distribuzione charge(s) spese – delivery charges spese di spedizione cheque, check (USA) assegno Chief Executive Officer (CEO) amministratore delegato CIF (cost, insurance and freight) costo, assicurazione e nolo CIP (carriage and insurance paid to) trasporto e assicurazione pagati fino a COD (cash on delivery) pagamento alla consegna, contrassegno collect incassare collection incasso – clean bill collection incasso semplice commodity merce compensation indennizzo competition concorrenza

competitor concorrente complaint reclamo consignment partita di merce – consignment note lettera di vettura consumer consumatore – consumer goods beni di consumo corporation società per azioni counteroffer controfferta CPT (carriage paid to) trasporto pagato fino a credit credito, fare credito – arrange credit concordare un limite di credito – credit card carta di credito – credit facilities facilitazioni di credito – credit limit limite di credito – credit note nota di accredito – credit terms condizioni di credito – credit transfer trasferimento di fondi – deny somebody credit negare credito a qualcuno – extend credit concedere un’estensione di credito – get/obtain credit ottenere credito – give credit dare credito – grant (somebody) credit concedere credito a qualcuno – in credit a credito – long-term credit credito a lungo termine – on credit a credito – offer credit offrire credito – refuse somebody credit rifiutare credito a qualcuno – short-term credit credito a breve termine creditor creditore creditworthy degno di credito, affidabile current account conto corrente currency valuta, divisa customer cliente – customer service servizio clienti – regular customer cliente abituale CWO (cash with order) pagamento all’ordine

D D/A (documents against acceptance) documenti contro accettazione D/P (documents against payment) documenti contro pagamento D-terms clausole con consegna all’arrivo

277

Keywords in Business DAP (delivered at place) reso non sdoganato DAT (delivered at terminal) reso terminal damage danno DDP (delivered duty paid) reso sdoganato debenture obbligazione debit debito; addebitare – debit note nota di addebito debitor debitore decline diminuire; declinare decrease diminuire deindustrialisation terziarizzazione delay ritardo delivery consegna – delivery note bolla di consegna demand domanda – aggregate demand domanda globale – on demand a richiesta department reparto department store grande magazzino departure partenza deposit account conto deposito dispatch spedizione – advice of dispatch avviso di spedizione direct debit addebito diretto discharge scarico – port of discharge porto di scarico discount sconto; scontare dividend dividendo documentary collection rimessa documentaria documentary letter of credit lettera di credito draft tratta – accept a draft accettare una tratta – dishounor a draft non pagare una tratta – dishonoured draft tratta non pagata alla scadenza – endorse a draft girare una tratta – protest a draft protestare una tratta – protested draft tratta protestata – sight draft tratta a vista – term draft tratta a scadenza draw (a draft) on spiccare tratta su drawback inconveniente drawee trattario drawer traente drop crollare drum tanica due (to) dovuto (a) durable goods beni durevoli

278

E

G

e-banking banca telematica e-commerce commercio telematico E-terms clausole con consegna in partenza economy economia – free market economy economia di libero mercato – mixed economy economia mista – planned economy economia pianificata employee dipendente, impiegato employer datore di lavoro employment impiego – employment rate tasso d’occupazione enclosure allegato endorse girare enquire (about) chiedere informazioni (su) enquiry richiesta di informazioni – make an enquiry richiedere informazioni enterprise impresa, azienda EX works franco fabbrica expiration date data di scadenza expire scadere export esportazione; esportare exporter esportatore

goods merce, beni – manufactured goods manufatti grant concedere gross lordo – Gross Domestic Product (GDP) prodotto interno lordo (PIL) grow crescere growth crescita

F F-terms clausole con trasporto principale non pagato factoring cessione di crediti da recuperare fall cadere; scendere; caduta farming agricoltura FAS (free alongside ship) franco sotto bordo FCA (free carrier) franco vettore fee tassa, onorario finance finanziare; finanziamento finished goods prodotti finiti FOB (free on board) franco bordo foreign currency account conto estero form modulo FPA (free of particular average) franco d’avaria particolare franchise agreement contratto di franchising franchisee il concessionario del franchising franchisor chi concede il franchising fraud frode freight nolo, carico

H head guidare – head office/headquarter sede centrale headed guidato, condotto – to be headed by essere sotto la direzione di holding company società finanziaria di controllo household nucleo familiare Human Resource Manager responsabile dell’ufficio personale

I import importare; importazione importer importatore income reddito increase aumentare; aumento indemnity indennizzo inflation inflazione insurance assicurazione – insurance company compagnia d’assicurazione – insurance policy polizza d’assicurazione insure stipulare un’assicurazione integration integrazione interest rate tasso d’interesse invisible trade partite invisibili invoice fattura – e-invoice fattura elettronica – pro-forma invoice fattura proforma IT (Information Technology) informatizzazione

J job lavoro, occupazione – job interview colloquio di lavoro – job title qualifica – summer job lavoro estivo joint-stock company/corporation società per azioni (USA)

L labour lavoro L/C (documentary letter of credit) lettera di credito

Keywords in Business land terreno launch lancio law legge lawyer avvocato leaflet volantino legal identity personalità giuridica length lunghezza letterhead intestazione liability responsabilità – limited liability responsabilità limitata – unlimited liability responsabilità illimitata limited company società per azioni (UK) – private limited company società per azioni a capitale privato – public limited company società per azioni quotata in borsa literature materiale informativo loading carico loan prestito lorry camion, autocarro loss perdita

M maintenance manutenzione manager dirigente Managing Director direttore generale, amministratore delegato manufacturer produttore manufacturing produzione market mercato – market economy economia di mercato – market research ricerca di mercato – market segment fetta di mercato – market share quota di mercato maturity scadenza, maturità merchandise merce merger fusione mining industria estrattiva mortgage mutuo motor vessel motonave multinational multinazionale

N need bisogno non-durable goods

beni di consumo

O office supervisor capoufficio office worker impiegato offshoring delocalizzazione oil pipeline oleodotto oil tanker petroliera

open account conto aperto order ordinare; ordine – acknowledge an order accusare ricevuta di un ordine – cancel an order cancellare un ordine – carry out an order eseguire un ordine – conditional order ordine sottoposto a condizione – confirm an order confermare un ordine – execute/fulfill an order eseguire un ordine – initial order primo ordine – modify an order modificare un ordine – order form modulo d’ordine – place an order passare un ordine – process an order eseguire un ordine – standing order ordine permanente – trial order ordine di prova outstanding non pagato overdraft scoperto (di conto corrente), fido – call in the overdraft richiamare dal fido overdue scaduto, in ritardo owe dovere, essere debitore

P packaging imballaggi packing imballaggio packing list lista di accompagnamento merci padding imbottitura, ovatta panel tavola rotonda, dibattito parcel pacco partner socio – sleeping partner socio accomandante partnership società (di persone) – deed of partnership statuto societario – limited partnership società in accomandita semplice – unlimited/ordinary partnership società in nome collettivo party soggetto pattern campione, disegno – pattern book campionario per carta e tessuto pay (for) pagare payee beneficiario payer debitore payment pagamento

– accept payment accettare il pagamento – advance payment pagamento in anticipo – arrange for payment predisporre il pagamento – defer/delay payment ritardare il pagamento – deferred payment pagamento ritardato – demand payment richiedere il pagamento – effect payment effettuare il pagamento – get/receive payment ricevere il pagamento – immediate/prompt payment pagamento immediato – late payment pagamento in ritardo – methods of payment metodi di pagamento – payment by instalments pagamento a rate – payment in advance pagamento in anticipo – payment in full/full payment pagamento totale – payment in part/part payment pagamento parziale – refuse payment rifiutare il pagamento – stop/suspend/withold payment sospendere il pagamento – terms of payment condizioni di pagamento personal assistant segretario plant stabilimento, impianto premium premio assicurativo premises locali price prezzo – price-list listino prezzi – total price prezzo totale – unit price prezzo unitario processing lavorazione producer produttore production produzione – factor of production fattore di produzione productivity produttività purchase acquisto, acquistare purchaser compratore Purchasing Department reparto acquisti

Q quarterly trimestrale quay molo, banchina query quesito, richiesta di spiegazioni; richiedere spiegazioni, indagare

279

Keywords in Business quotation preventivo – ask for a quotation preventivo

richiedere un

R range gamma raw material materia prima receipt ricevuta – acknowledge receipt accusare ricevuta refusal rifiuto refuse rifiutare release concedere reliability affidabilità remind ricordare, far ricordare remit rimettere/inviare una somma di denaro remittance rimessa remitter chi invia una somma di denaro reply rispondere; risposta report relazione report to rispondere, rendere conto a request richiedere; richiesta responsible responsabile – (to) be responsible for rispondere di – (to) be responsible to rispondere a result from essere il risultato di result in dare come risultato retail al minuto retailer dettagliante revenue fatturato rise crescere; rialzo

S S/A (statement of account) estratto conto salary stipendio sale vendita – sales representative rappresentante – sales terms condizioni/clausole di vendita sample campione – free sample campione gratuito – set of samples campionario

280

– up to sample conforme al campione sell vendere seller venditore service servizio settle pagare, saldare settler chi paga settlement saldo, pagamento signature firma shape forma share azione shareholder azionista ship nave – container ship nave portacontainer shipment spedizione via mare shipping document documento di spedizione shipping line spedizioniere marittimo short-term contract contratto a tempo determinato sight vista – at sight a vista slump crollo sole trader ditta individuale specimen campione stock partita di merce stockbroker agente di borsa stock exchange borsa valori strike sciopero subsidiary company società controllata, consociata supplier fornitore supply fornire surplus eccedenza survey indagine, inchiesta swatch campione di stoffa

T tanker petroliera takeover acquisizione telephone operator centralinista terms clausole, condizioni, termini – sales terms/trade terms clausole di vendita

– terms of payment condizioni di pagamento – terms of trade clausole commerciali tertiary terziario text message messaggio di testo theft furto trade commercio; commerciare – foreign/international trade commercio estero – home trade commercio interno train treno – goods train treno merci transaction operazione, transazione transport/transportation trasporto truck (USA) camion turnover volume d’affari

U unemployment disoccupazione – unemployment rate tasso di disoccupazione unloading scarico

V value valore van camioncino, furgone VAT (valued added tax) IVA

W want desiderio wage salario warehouse magazzino warehousing immagazzinaggio weight peso withdraw prelevare – cash withdrawal prelievo di contanti wholesale all’ingrosso wholesaler grossista work lavoro – at work al lavoro – fixed-term work contract lavoro a tempo determinato – temporary work lavoro interinale workforce forza lavoro workplace posto di lavoro

Keywords in Business

Italiano – Inglese A a bordo di on board a causa di owing to, due to accettare accept accettazione acceptance accomodamento adjustment accordo agreement accusare ricevuta acknowledge receipt acquisizione acquisition, takeover acquistare purchase, buy acquisto purchase addebitare debit addebito diretto direct debit – nota di addebito debit note addestramento training addetto alle macchine machine operator aereo cargo air freighter affare/i business – fare affari do business – per affari on business – volume d’affari turnover affidabile creditworthy affidabilità reliability agente agent agenzia pubblicitaria advertising agency agricoltura farming allegare attach, enclose allegato enclosure amministratore delegato Chief Executive Officer (CEO), Managing Director annuncio pubblicitario ad, advert, advertisement anticipo advance – in anticipo, anticipatamente in advance articolo article, item assegno cheque assicurazione insurance – stipulare un’assicurazione insure assicuratore insurer, underwriter assicurarsi insure assistito da assisted by assortimento range assumere employ, recruit aumentare increase, go up, raise, rise aumento increase, rise azienda company, enterprise – azienda a conduzione familiare family business azione share azionista shareholder

B banca bank bancarotta bankrupt – andare in bancarotta go bankrupt bancomat ATM (automatic teller machine) banchina quay barile barrel beneficiario payee beni goods – beni di consumo consumer goods – beni durevoli capital goods, durable goods bilancio balance sheet bisogno need bolla di consegna delivery note bonifico bancario bank/banker’s transfer borsa valori stock exchange

C caduta, calo fall cambiale bill camion lorry, (USA) truck camioncino van campionario set of samples campione pattern, sample, specimen – campione di stoffa swatch – campione gratuito free sample – conforme al campione up to sample canale di distribuzione distribution channel candidato candidate capitale capital carenza shortage caricare load carico loading carta di credito credit card cassa case, crate catalogo catalogue cause di forza maggiore circumstances beyond control centralinista telephone operator certificato d’origine certificate of origin cessione di crediti da recuperare factoring chiedere require, request – chiedere informazioni enquire – chiedere spiegazioni query clausola term – clausole commerciali terms of trade – clausole con consegna all’arrivo D-terms – clausole con consegna in partenza E-terms

– clausole con trasporto principale non pagato F-terms – clausole con trasporto principale pagato C-terms – clausole di pagamento terms of payment – clausole di vendita sales terms cliente customer, client – cliente abituale regular customer colloquio di lavoro job interview commerciare trade commercio commerce, trade – commercio telematico e-commerce comprare buy – comprare all’ingrosso buy in bulk compratore buyer, purchaser concedere grant concorrente competitor concorrenza competition condizioni terms – condizioni di credito credit terms – condizioni di vendita sales terms confermare confirm consegna delivery consegnare deliver consiglio d’amministrazione board of directors consumatore consumer contabile accountant contabilità book-keeping contanti cash – contanti all’ordine cash with order – pagare in contanti pay cash conto account, bill – conto aperto open account – conto corrente current account – conto deposito deposit account – conto estero foreign currency account contrassegnare mark, label contrassegno cash on delivery contratto contract – contratto di franchising franchise agreement – contratto di trasporto contract of carriage – contratto di vendita contract of sale controfferta counteroffer controllare check copertura assicurativa insurance cover corriere carrier, courier costante steady costo cost – costo, assicurazione e nolo cost, insurance and freight (CIF)

281

Keywords in Business – costo e nolo cost and freight (CFR) credito credit – a credito on credit/in credit – credito a breve termine short term credit – credito a lungo termine long-term credit – concedere credito a qualcuno grant somebody credit – concedere un’estensione di credito extend credit – concordare un limite di credito arrange credit – dare credito give credit – fare credito credit – negare credito a qualcuno deny somebody credit – offrire credito offer credit – ottenere credito get, obtain credit – rifiutare credito a qualcuno refuse somebody credit creditore creditor crescere grow, rise crescita growth crollare drop, slump crollo slump

D danno damage data date – data di scadenza expiration date datore di lavoro employer debito debit – a debito in debt – nota di debito debit note debitore debitor, payer – essere debitore owe declino decline delocalizzazione offshoring depliant brochure desiderio want destinatario (della merce) consignee dettagliante retailer – al dettaglio retail dibattito debate difettoso defective, faulty diminuire decline, to decrease, to diminish dipendente employee diretto da headed by direttore manager, company director disegno pattern disoccupazione unemployment dispiacersi regret, (to) be sorry disponibile available distribuzione distribution

282

ditta individuale sole trader dividendo dividend documento document – documenti contro accettazione documents against acceptance (D/A) – documenti contro pagamento cash against documents (CAD) – documenti contro pagamento documents against payment (D/P) domanda demand – domanda globale aggregate demand – domanda di lavoro application – presentare domanda di lavoro apply essere dovuto a to be due to

E eccedenza surplus – in eccesso in surplus economia economics – economia (libera) di mercato market economy – economia mista mixed economy – economia pianificata planned economy entro by, within errore error, mistake esaurire le scorte run out of stock esaurito sold out – essere esaurito to be out of stock esigenza requirement – soddisfare le vostre esigenze meet your requirements espandersi boom espansione boom esportare export esportatore exporter esportazione export estensione di credito credit extension estratto conto statement of account (S/A) etichetta label

F fabbricante manufacturer facilitazioni di credito credit facilities fattore di produzione factor of production fattura invoice – fattura commerciale commercial invoice – fattura elettronica e-invoice – fattura proforma pro-forma invoice fetta di mercato market segment fido overdraft, credit limit filiale branch

finanziamento finance finanziare finance finanziatore financer firma signature forma shape fornire supply fornitore supplier forza lavoro workforce franco d’avaria particolare free of particular average (FPA) franco bordo free on board (FOB) franco sotto bordo free alongside ship (FAS) franco fabbrica EX works franco vettore free carrier (FCA) frontiera border furgoncino van furto theft fusione merger

G gamma range, selection, line garantire assure garanzia warrant girare endorse girata endorsement giroconto bancario bankgiro credit grande magazzino department store gratis free of charge grossista wholesaler guidare head essere guidato da to be headed by

I in conformità con according to imballaggio packaging, packing immagazzinaggio warehousing impiegato employee impiego employment importare import importatore importer importazione import importo amount impresa enterprise, business incassare collect incasso collection – incasso semplice clean bill collection includere include inconveniente drawback, inconvenience indagare query indagine survey indennizzo compensation, indemnity

Keywords in Business inflazione inflation informatizzazione IT (Information Technology) all’ingrosso wholesale – comprare/vendere all’ingrosso buy/sell in bulk inserzione ad, advert, advertisement interesse interest IVA VAT (valued added tax)

L lavorazione processing lavoro job, labour, work – datore di lavoro employer – domanda di lavoro application – lavoro interinale temporary work – lavoro a tempo determinato fixed-term contract – posto di lavoro workplace – presentare domanda di lavoro apply – sul lavoro at work lettera commerciale business letter lettera di credito L/C (documentary letter of credit) lettera di trasporto aereo air waybill lettera di vettura consignment note limite di credito credit limit liquidità cash flow lista di accompagnamento merci packing list listino prezzi price-list lordo gross lunghezza length

M magazzino warehouse – essere in magazzino to be in stock mancante missing – essere mancante to be missing manutenzione maintenance marcare mark, label marchio brand, mark – fedeltà al marchio brand loyalty margine di profitto profit mark-up materia prima raw material mercato market – quota di mercato market share – ricerca di mercato market research merce goods, commodity – partita di merce in magazzino stock – partita di merce pronta per la spedizione consignment mittente consignor modulo form

– modulo d’ordine order form molo quay moneta currency motonave motor vessel multinazionale multinational mutuo mortgage

N nave ship, vessel – nave cisterna tanker – nave portacontainer container ship nolo freight nomina appointment nota di credito credit note nucleo familiare household

O obbligato a obliged to occupazione job, employment oleodotto oil pipeline operazione commerciale transaction opuscolo pieghevole leaflet opuscolo pubblicitario brochure ordinare order ordine order – accusare ricevuta di un ordine acknowledge an order – cancellare un ordine cancel an order – eseguire un ordine execute an order – modificare un ordine modify an order – ordine di prova trial order – ordine permanente standing order – ordine sottoposto a condizione conditional order – passare, trasmettere un ordine place an order – primo ordine initial order

P pacco parcel pagamento payment, settlement, balance – pagamento all’ordine cash with order (CWO) – pagamento alla consegna cash on delivery (COD) – pagamento anticipato payment in advance, advance payment – pagamento in contanti cash – pagamento in ritardo late payment pagare pay (for) partenza departure partita di merce consignment perdita loss

– in perdita at a loss – perdita parziale/totale partial/total loss personalità giuridica legal identity peso weight petroliera oil tanker in plico separato under separate cover politica dei prezzi pricing polizza policy polizza di carico bill of lading (B/L) porto affrancato carriage paid porto assegnato carriage forward a stretto giro di posta by return prelevare withdraw premio assicurativo premium presidente chairman prestito loan preventivo estimate, quotation, pro-forma invoice prezzo price – prezzo totale total price – prezzo unitario unit price prodotto product – prodotti finiti finished goods – prodotti firmati branded goods – prodotto interno lordo (PIL) Gross Domestic Product (GDP) produttività productivity produttore producer produzione production profitto profit promozione promotion promozionale promotional pronto available pubblicità advertising

Q qualità quality quantità quantity quesito query quotazione quotation

R ragioneria book-keeping ragioniere accountant rappresentante sales representative reclamare complain, claim reclamo complaint reddito income relazione report reparto department – reparto acquisti Purchasing Department – reparto vendite Sales Department

283

Keywords in Business reso non sdoganato delivered at place (DAP) reso sdoganato delivery duty paid (DDP) reso terminal delivered at terminal (DAT) responsabile responsible – responsabile dell’ufficio personale Human Resource Manager – responsabile finanziario Finance Manager responsabilità liability restare in attesa di look forward to rialzo rise ribasso decrease, fall ricavo revenue ricchezza wealth richiedere request – richiedere informazioni enquire – richiedere spiegazioni query richiedente applicant richiesta request – a richiesta/su richiesta on demand, on request – far fronte alla richiesta meet the demand – richiesta di informazioni enquiry – richiesta di spiegazioni query ricordare, far ricordare remind ricordarsi remember rifiutare decline, refuse, reject rifiuto refusal rifornire supply, provide, furnish, stock riguardante concerning rimborsare reimburse, refund rimessa remittance – rimessa documentaria documentary collection rimettere una somma di denaro remit risarcimento danni claim risarcire refund, reimburse rispondere a (to) be responsible to, report to rispondere di (to) be responsible for ritardo delay – in ritardo late, overdue

S sacco sack salario wage saldare balance, settle saldo balance, settlement – controllare il saldo check a balance – saldo parziale partial settlement – saldo totale full settlement scadenza maturity, deadline

284

– data di scadenza expiry date scadere expire – essere scaduto (to) be overdue scaricare unload scarico unloading, discharge – porto di scarico port of discharge scarsità shortage scatola di cartone cardboard box scendere fall sciopero strike scontare discount sconto discount – sconto commerciale trade discount – concedere uno sconto grant a discount scoperto (di conto corrente) overdraft sede centrale head office segretario personal assistant servizio clienti customer service società (di persone) partnership socio accomandante sleeping partner – società controllata, consociata subsidiary company – società a responsabilità limitata private limited company – società finanziaria di controllo holding company – società in accomandita semplice limited partnership – società in nome collettivo unlimited partnership – società per azioni corporation, joint-stock company, public limited company socio partner soggetto party somma amount sospendere la produzione discontinue sostenere bear sostituzione replacement spedire dispatch, send, ship spedizione dispatch – avviso di spedizione advice of dispatch – spedizione via mare shipment spedizioniere shipping agent, forwarding agent spese charges – spese di spedizione delivery charges – spese postali postal charges stabilimento plant stipendio salary svista oversight

T tanica drum tasso rate – tasso di disoccupazione unemployment rate – tasso di sconto rate of discount tavola rotonda panel terreno land terziarizzazione deindustrialisation terziario tertiary traente drawer trasferimento di fondi credit transfer trasporto carriage, transport, transportation trasporto aereo air freight/transport trasporto e assicurazione pagati fino a carriage and insurance paid to (CIP) trasporto pagato fino a carriage paid to (CPT) tratta draft, bill of exchange (B/E) – accettare una tratta accept a draft – girare una tratta endorse a draft – non pagare una tratta dishonour a draft – protestare una tratta protest a draft – spiccare tratta su draw (a draft) on – tratta non pagata alla scadenza dishonoured draft – tratta protestata protested draft – tratta a scadenza term draft – tratta a vista sight draft trattario drawee treno train – treno merci goods train trimestrale quarterly

U ufficio del personale Human Resource Department ulteriore further ultimo (più recente) latest ultimo (scorso) last

V valore value – valore nominale face value valuta currency vendere sell vendita sale – vendita al dettaglio retail trade – vendita all’ingrosso wholesale trade venditore seller vettore carrier volume d’affari turnover

An insight into the world of economy and finance 1 The economic environment 2 The financial world

1

THE ECONOMIC ENVIRONMENT

Types of economic systems Companion Book, pp. 18-19

Economies differ in the way that they divide up and use their economic resources and in the amount of influence the government has on the production and distribution of goods and services. There are three major economic systems.

A free-market economy Also called the capitalist or laissez-faire system. With this system, resources are privately owned and the state plays no part in the control of the economy. Production decisions are made by entrepreneurs and private individuals. The price mechanism is its main feature; prices are determined by demands made by consumers for particular goods or services and by the willingness of producers to supply them. The private sector contains all the businesses owned by private individuals. The public sector includes everything that is owned by the government.

Customers wait in tents outside an Apple Store in London to be the first to buy the iPhone 6. Page 287: China Mobile, the world’s largest mobile operator by subscribers, is an example of mixed economy.

286

No country in the world has a completely free economy. The USA comes the closest with a large private sector but the government has some influence in deciding how the economy is managed.

The USA has a largely free-market economy. Private individuals and business firms make most of the economic decisions about what the economy produces. The US government, however, has the market cannot provide effectively, such as national defence and assistance programs for low-income families. It also makes policy decisions that affect the economy as a whole and sets general guidelines for business. US firms enjoy greater flexibility than firms in Western Europe in relation to decisions to expand, lay off surplus workers, and develop new products. At the same time, they have more difficulty entering their rivals’ home markets than foreign firms have in entering US markets.

An insight into the world of economy and finance

A command economy Also called the planned economy. This system relies exclusively on the public sector. The government is in complete command of the economy and makes all the decisions related to production and distribution. Price levels are not determined by the forces of supply and demand, but are fixed by the government. Planned economies can be successful when there is a single agreed aim, for example, during a war. The system, however, is not so successful when consumer desires and wants are great, as they are in the world today. Since 1992, many countries with planned economies have switched towards greater use of the price mechanism; examples include Russia and China.

ACTIVITIES 1

Read these pages and match terms and definitions. Terms 1 mixed economy 2 command economy 3 free market economy Definitions a The economy is governed by supply and demand without any interference by the state. b Some resources are controlled by the state and some by private firms and individuals. c The state plans and controls the whole economy.

2

Answer the questions. 1 Who owns resources in a free-market system? 2 How are prices determined in a free-market system? 3 What role does the private sector have in the US economy? 4 What’s the difference between firms in the USA and in Western Europe? 5 Who makes decisions in a planned system? 6 When are planned economies successful? 7 What is the public sector in a mixed economy? 8 What is the private sector governed by?

3

Work in pairs. Which of the following products in Italy are produced mainly by: 1 the private sector: ........................................ ..................................................................... 2 the public sector: ......................................... ..................................................................... 3 both sectors: ............................................... ..................................................................... electricity • cinema & entertainment • energy • military services • banking services • the police service • health services • airline services • teaching services

4

Write a short report about the economic system in Italy. Include information about: • the type of economic system • the role of the public sector • the role of the private sector.

A mixed economy Most economies include features from both the free-market and the command systems. The government operates and controls the public sector, which typically consists of a range of public services such as health and education, as well as some local government services. The private sector is largely governed by the price mechanism and market forces. Italy and Britain have mixed economies.

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1 THE ECONOMIC ENVIRONMENT

The public sector The public sector of the economy is made up of public corporations set up by the central or local government to provide goods and services for the public good. Some of these organisations are involved in areas for which the government has direct responsibility, such as education, defence and health. They are paid for through the taxation system and their purpose is to provide services for the whole population. The second type of public sector organisation provides important services of national interest, such as electricity, water, transport and communication. They often compete with companies in the private sector. In the UK, public corporations were created in 1945 when certain companies were bought by the government and joined together to form nationalised corporations. British Coal, British Steel, the Electricity Board, the Bank of England, the Post Office, the BBC and public transport are some of the enterprises which were taken over by the Labour government at the end of World War II.

The BBC (British Broadcasting Corporation) is a British public service broadcaster. Its responsibility is to provide impartial public service broadcasting in the UK.

ACTIVITIES 1

2

288

Read these pages and complete the table summarising the differences between the private and the public sectors of the economy. Sector of the economy

Ownership

Sources of finance

Reasons for existence

private sector

private individuals

individuals and firms

profit motive

sole traders

one person

sole trader

profit for owner

partnerships

two or more individuals

partners

profit for partners

limited companies

two or more shareholders

shareholders

profit for shareholders

public sector

central or .....................

public funds

service motive

public ....................... (1)

................................... (2)

..................... (3) system

to provide ................... ................................... (4)

Look at the table in ex. 1 and answer the questions. How do the private and public sectors differ in relation to: 1 ownership? 2 sources of finance? 3 reasons for existence?

An insight into the world of economy and finance During the 1980s, many nationalised industries and services were once more privatised on the grounds that it would make them more profitable and efficient. The privatised companies lost their status as public corporations and became PLCs (Public Limited Companies) quoted on the London Stock Exchange.

Companion Book, p. 20

Other public corporations, which are still in the public sector, have also been affected by privatisation in two ways: • by using ‘private sector services’ where these services are cheaper. Examples are the private sector cleaning firms or catering firms used by hospitals. • through ‘deregulation’, that is removing regulations to allow greater competition to take place. Examples include transport services and broadcasting.

Protestors attend a demonstration against privatisation of the National Health Service, London.

ACTIVITIES 3

Read the list of arguments for and against public ownership. Decide if each argument is for (F) or against (A). 1 Public ownership ensures that unprofitable but essential services are provided. 2 There may be no competition and little incentive to improve efficiency. 3 Losses have to be met out of taxation. 4 Industries and jobs can be protected. 5 Private sector monopolies can be controlled. 6 There may be political interference in public organisations.

4

Write a short essay. Follow this plan. • Paragraph 1: introduction – a definition of privatisation • Paragraph 2: the main reasons for privatisation • Paragraph 3: a brief description of privatisation in Italy • Paragraph 4: the advantages and disadvantages of privatisation • Paragraph 5: conclusion – your opinion on privatisation

289

1 THE ECONOMIC ENVIRONMENT

Trade Companion Book, p. 26

Companion Book, pp. 22-23

International trade is the exchange of goods and services between different countries. It is of vital importance for most open economies and represents a significant part of GDP (Gross Domestic Product).

Visible and invisible trade • Visible trade refers to the exchange of physical products between countries, for example cars, clothing, electronic equipment, machinery, raw materials and food. These are known as visible imports if the goods are brought into the country and visible exports if they are sold to another country. • Invisible trade refers to the exchange of services between countries. Examples include the insurance, banking, tourism and education services. They can be invisible imports or invisible exports.

The balance of trade The balance of trade (BOT) is the difference between the monetary value of visible exports and imports over a certain period of time. It is measured in the currency of the economy it refers to. If visible exports are greater than visible imports, there is a positive balance with a trade surplus. If visible imports are larger than visible exports, there is a negative balance referred to as a trade deficit or trade gap. Since the mid-1980s, the United States has had a growing trade deficit with Asian nations (especially China and Japan) but has a trade surplus with some other nations, for example Australia. Right: If UK citizens travel to Italy for a holiday, it will be invisible import for UK and invisible export for Italy, as Italy is earning foreign exchange by selling tourist services. Below: If an Italian student goes to UK to study, it will be invisible import for Italy and invisible export for UK, as UK is earning foreign exchange by providing educational services.

An insight into the world of economy and finance

The balance of payments The balance of payments (BOP) is the difference between the money coming into a country and the money going out over a specific period of time. It provides a record of all the economic transactions of the country, including foreign investment, the transfer of money and both visible and invisible trade. If a country has received money, this is known as a credit, and if the country has paid or given money, this is referred to as a debit. Theoretically the BOP should be zero. That means that the country’s assets (credits) and liabilities (debits) should balance.

ACTIVITIES 1

Read these pages and match terms and definitions. Terms 1 The difference between the total amount of money entering and leaving a country. 2 Trade between countries in goods. 3 The difference in value between all the goods a country exports and imports. 4 Trade between countries in services. 5 The exchange of goods and services between different countries. Definitions a invisible trade

d visible trade

b the balance of payments

e the balance of trade

c international trade

2

Correct the statements. 1 International trade has little influence on a country’s GDP. 2 Goods bought from foreign countries are called visible exports. 3 Services sold to foreign countries form visible exports. 4 A surplus is a negative balance in the Balance of Trade. 5 There is a trade gap when visible exports are more valuable than visible imports. 6 The balance of payments only includes invisible trade.

3

Complete the table with the missing information. The balance of trade

The balance of payments

Includes money received or paid on account of ......................... (1) and ......................... (2) of ......................... (3).

Includes all economic ......................... (7) including ......................... (8), money transfers and both ......................... (9) and trade. The balance ......................... (10) thus forms part of the balance of ......................... (11).

It can be favourable or unfavourable. If visible In theory, a country’s......................... (12) and imports are greater than visible exports, there ......................... (13) should always balance and is a ......................... (4). If visible ......................... (5) the BOT shoul always be ......................... (14). are greater than visible ......................... (6) there is a trade surplus.

291

1 THE ECONOMIC ENVIRONMENT

Economic indicators Economic indicators are used to assess the economic development of a country. The two main indicators are Gross Domestic Product (GDP) and Gross National Product (GNP).

Gross National Product (GNP) is the total economic output of a country. It includes the GDP plus earnings from foreign investments. Gross Domestic Product (GDP) is the total value of goods and services produced by a country in a year. GNP per capita is a country’s GNP divided by its population (per capita means per person).

Economic growth is the annual percentage change in GDP. That is the increase in the market value of the goods and services produced by a country in a year. Economic growth leads to an improved standard of living for the population and reflects an increase in business activity and in the amount of investment within the economy. In order to improve the GDP and achieve a faster rate of economic growth, the government must ensure that: • natural resources are used efficiently • there is significant investment in new machinery and the improvement of production techniques • the workforce is adequately educated and trained to perform their jobs effectively.

Lehman Brothers put their artworks up for auction at Christie’s after the firm’s bankruptcy in 2008. Page 293: The Fiat 500, a symbol of the Italian economic boom of the 1960s.

292

An insight into the world of economy and finance

The business cycle Economic growth moves in a regular pattern. It grows, declines and grows again. This pattern is known as the business cycle or economic cycle.

ACTIVITIES 1

Read these pages and complete the definitions. 1 .................................... is the total market value of finished goods and services produced in a country in one year. 2 .................................... is a measure of a country’s total economic output. It includes earnings from foreign investments. 3 .................................... is the value of the GNP of a country divided by the number of people who live there. 4 .................................... is the annual percentage change in GDP. 5 .................................... refers to the regular pattern of economic growth.

2

Write the English equivalents of the following: 1 PIL (Prodotto Interno Lordo) ..................................................................... 2 PNL (Prodotto Nazionale Lordo) ..................................................................... 3 sviluppo economico ..................................................................... 4 ciclo economico ..................................................................... 5 recessione ..................................................................... 6 disoccupazione .....................................................................

Periods of high growth are called booms. During these periods consumer spending tends to be high and economic growth is positive. The GDP increases and unemployment levels tend to be low. Levels of inflation are usually higher than the established government target and high levels of investment occur facilitating expansion or replacement of key assets within a business. Times of negative growth are called recessions. During a recession consumer spending tends to decrease and economic growth declines. The GDP falls and unemployment levels rise. Levels of inflation usually decrease relative to the established government target and reductions in the level of investment tend to occur.

3

Answer the questions. 1 What is the difference between the economic indicators GDP and GNP? 2 How does economic growth benefit a country? 3 What can a government do to improve the GDP? 4 What are periods of high economic growth known as? 5 What happens to the GDP and levels of unemployment, inflation and investment during a period of economic growth? 6 What happens to the GDP and levels of unemployment, inflation and investment during an economic recession?

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1 THE ECONOMIC ENVIRONMENT

Inflation and services over a period of time. When price levels rise, the purchasing power of money falls. For example, if prices rise by 5%, then a certain amount of money will buy 5% fewer goods and services than the previous year. There are a number of different measures of inflation. The most common are the Consumer Prices Index (CPI) and, in the UK, the Retail Prices Index (RPI). Both of these indexes examine hundreds of items that consumers spend their money on, including things like cinema tickets, coffee and wine, and measure the increase in price over time. They then calculate the average price increase to obtain the inflation rate. This is always expressed as a percentage. There are several methods that a government can use to reduce the rate of inflation in an economy. These include: • reducing the level of customer spending by raising interest rates, raising taxes and reducing the amount of credit that is available to consumers • limiting wage increases, particularly for people who work in the public sector • printing less money or withdrawing some money from circulation. Today, most economists favour a low and steady rate of inflation. The task of keeping the rate of inflation stable is usually given to central banks, such as the Bank of England in the UK. They do this mainly through the control of interest rates.

Problems related to high levels of inflation • People, particularly those on fixed incomes such as students and pensioners, may buy fewer goods. As a result the economy may suffer. • Workers may ask for pay increases to match price rises. This can lead to industrial disputes. • The costs to business may increase and this may lead to a fall in production. • If domestic prices increase too much, the importation of cheaper products may increase, which will cause major economic problems.

ACTIVITIES 1

Read this page and tick (✓) the correct answer. 1 The rate at which the prices of goods and services are increasing each year is called: a deflation. b cost. c increase. d inflation. 2

The inflation rate is the annual percentage change in a a general price index.

3

c the pay rise.

d public spending.

Which of the following is a factor taken into consideration when measuring inflation? a The GNP.

294

b the production costs. b The RPI.

c The GDP.

d The HDI.

An insight into the world of economy and finance

Unemployment Unemployment refers to the number of people in the workforce of a country who are able to work but unable to find a job. It is measured by the unemployment rate, which is calculated by dividing the number of unemployed individuals by the total number of people in the workforce. Governments aim for low levels of unemployment, but during periods of recession there are usually high and steadily rising unemployment levels. This can be very damaging to an economy because it can lead to increasing levels of government spending for welfare payments, less consumer demand for products and a fall in production. There are several methods that a government can use to try to reduce the amount of unemployment in an economy. They include: • policies to increase demand such as reducing taxation or reducing interest rates • retraining incentives offered to unemployed people • helping new businesses to set-up, and offering incentives to existing businesses to relocate to areas of high unemployment. In the euro area of the EU unemployment levels have risen in the last few years, due to the effects of the economic recession.

UNEMPLOYMENT IN THE EURO AREA 1971-80

4.0%

1981-90

9.3%

1991-00

9.8%

2001-05

8.8%

2006-10

8.7%

2010-12

10.5%

2013-14

11.7%

Teenage girl looking at job adverts in a UK careers shop.

ACTIVITIES 1

Read this page and answer the questions. 1 How is the unemployment rate calculated? 2 How do high levels of unemployment damage an economy? 3 What can a government do to try and reduce the level of unemployment in the country? 4 What has happened to unemployment rates in the euro area of the EU over the last few years? 5 What was the unemployment rate in the euro area of the EU in 2013-14?

295

1 THE ECONOMIC ENVIRONMENT

The British economy  The United Kingdom is one of the world’s most

globalised countries and its capital city, London, is a major financial centre and has the largest city GDP in Europe. Together with New York, Paris and Tokyo, it is one of four ‘command centres’ of the global economy.

slowdown pushed the economy into recession. After a period of generally disappointing growth in 2011 and 2012, the UK economy showed signs of recovery during 2013 and 2014. All major industry sectors now have positive growth trends and the UK is one of the fastest growing developed economies.

 The UK has a mixed economy, although the private

sector accounts for over 80% of output and employment. Over the past two decades, the government has reduced public ownership and limited the growth of social welfare programmes. It now owns very few businesses.  The British economy is the sixth largest economy in

the world (and the third largest in Europe, after Germany and France). The service sector dominates the UK economy, contributing around 78% of the GDP. Banking, insurance, and business services are particularly important.  Before 2008, Britain had a high GDP and relatively

low levels of inflation, unemployment and interest rates. The 2008 global financial crisis had a very severe effect on the UK economy, due to the importance of its financial sector. Falling house prices, high public debt, and the global economic

Help to Buy is the name of a government programme launched in 2013 in the United Kingdom that aims to help first time buyers, and those looking to move home, purchase residential property.

ACTIVITIES 1

2

3

Read the article and tick (✓) the correct options. 1 The UK has a 2 a free market economic system. b command economic system. c mixed economy.

The UK economy is a the largest in Europe. b the third largest in Europe. c the tenth largest in Europe.

Read the article again and answer the questions. 4 What affected the economy in Britain in 1 What importance does London have for the British economy? 2008? 2 How important is the private sector in the 5 What is the economic situation like at UK? present? 3 How has the public sector changed in the 6 What are the negative aspects of the past two decades? British economy? Look at the factfile and graphs on page 297 and complete the sentences. 1 In 2015, GDP growth amounted to ........................ points below the growth in ........................ . 2 The ........................ sector is the most important in the British economy. It contributes ........................% of the GDP. 3 The UK ........................ rate fell to 0.1% in 2015.

296

An insight into the world of economy and finance

Experts have predicted that it will become the second largest EU economy and the world’s fifthlargest before 2020.

GDP composition by sector (2015) Services 79.6%

 Despite the productivity growth, however, the British

economy still has several problems. Although the unemployment rate has fallen to 5.4%, 2million people are still without jobs. Before 2015, inflation was higher in Britain than in most rich countries, property prices went up rapidly and exports still remain weak. The UK also has one of the highest levels of income inequality in Europe, as well as a high rate of poverty. FACTFILE – THE MAIN ECONOMIC INDICATORS GDP

$ 2,679 trillion (2015)

GDP growth

0.1 % (2012), 1.7% (2013), 3.2% (2014), 2.2% (2015)

Inflation rate

2.7% (2012), 2% (2013), 1.5% (2014), 0.1% (2015)

Labour force

30.64m (2014), 32.94m (2015)

Unemployment rate

6.5% (2014), 5.4% (2015)

Poverty rate

16% (2014)

Agriculture 0.6%

Industry 19.7%

Labour force by occupation (2015) Services 83.5%

Agriculture 1.3%

Industry 15.2%

(Source: CIA World Fact Book/The Economist)

ACTIVITIES 4 Most people in the UK work in the ........................ sector. They represent ........................% of the labour force. 5 ........................ is relatively high and totalled 5.4% in 2015. 6 The UK has a high ........................ . In 2014 the percentage of British people below the official poverty line was ........................ .

4

Complete the definitions below. Choose from the following: GDP • growth • inflation • public sector • private sector • unemployment rate 1 The ........................ is the part of the economy controlled by private forces and individuals. 2 The ........................ is the percentage of the total labour force that cannot find a job, but are willing and able to work. 3 The ........................ is the total value of all the products and services a country produces. 4 ........................ represents an increase in the capacity of an economy to produce goods and services. 5 By ........................ economists mean a persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money. 6 The ........................ is the part of economy controlled by the government, local authorities and public corporations.

5

Use your answers to ex. 1, 2 and 3 to prepare an oral report on the UK economy. 297

1 THE ECONOMIC ENVIRONMENT

British foreign trade Since the 19th century, trade has been of vital importance to the British economy. Although Britain is a small country with only 1% of the world’s population, it is the sixth largest trading nation in the world behind the USA, China, Germany, Japan and France. About 25% of jobs in Britain are linked to business overseas. The UK is the sixth largest importer in the world and the seventh largest exporter. It is particularly strong in the export of services. In relation to the trade of goods, it is strong in many innovative, high growth goods sectors, such as pharmaceuticals and high tech machinery, and in luxury goods. Other major goods exports are manufactures such as machinery, electrical goods and vehicles, plus mineral fuels and related products.

Flagship store of luxury brand Burberry in central Beijing, China.

UK TRADE IN GOODS (£million, 2013) Major goods exports, 2013

% of total

Major goods imports, 2013

• Machinery & transport equipment

35.0

• Machinery & transport equipment

33.8

• Chemicals & related products

16.0 13.1

• Mineral fuels, lubricants & related materials

13.4

• Mineral fuels, lubricants & related materials

• Chemicals & related products

11.7

Total exports £304.8bn

Total imports £412.6bn

trade deficit of £107.8bn 298

% of total

Source: The Economist

An insight into the world of economy and finance

Britain’s major trading partners As a member of the EU, the world’s largest trading group, a large part of the UK’s trade in goods and services is with other EU members. In 2015, four out of six of the UK’s top export markets were EU countries (the USA and China were the other top export markets) and the proportion of export trade with them was 38.8%. In the same year, imports from the EU made up over 68.7% of total imports. The EU countries accounted for four of the six leading suppliers of goods to the UK; the other two places were taken by China and the USA. Britain’s biggest overseas market in the EU is Germany, which is also its largest supplier.

Leading export markets

Leading suppliers

(%, 2015)

(%, 2015)

Netherlands France China Switzerland Germany

Belgium

5.8

5

France

5.9

5.8

Netherlands

6

7.5

the USA 7

the USA

9.2

China 10.1

9.8

Germany

14.8

14.6

Source: CIA World Factbook

ACTIVITIES 1

Write a list of British products you commonly find in Italy. ......................................................................................................................................................... .........................................................................................................................................................

2

Read about UK trade and look at the graphs, then answer the questions. 1 How important is trade in the British economy? 2 How does the amount of British trade compare to other countries in the world? 3 Is the value of total exports higher or lower than the value of total imports?

3

Read these pages again and find the following: 1 Britain’s world position for trade 2 the percentage of UK jobs linked to trade 3 the major UK goods exports 4 the major UK goods imports 5 the biggest overseas market 6 the biggest overseas supplier 7 the top three export markets in the EU 8 the top three suppliers in the EU.

4

Find information about Italy’s trade performance on the Net. Compare the British situation to that in Italy and write a report. Include some graphs in your report.

Aston Martin, a British luxury sports car exported all over the world.

299

1 THE ECONOMIC ENVIRONMENT

The US economy  The USA has a market-oriented economy and is the largest and most technologically powerful economy in the world, with a per capita GDP of $55,800. In 2015, the GDP was $17.95 trillion, the largest of any single country in the world and approximately a fifth of the global total. The USA is home to 29.6 million small businesses. Of the world’s 500 largest companies, 132 have their headquarters in the USA.  The US dollar is the most used currency in international transactions and is the world’s primary reserve currency. Several countries use it as their official currency.

the collapse of stock markets, the September 11 attacks in 2001, wars in Afghanistan and Iraq, and a devastating hurricane along the Gulf Coast near New Orleans in 2005. The US economy is currently involved in the economic recession which followed the financial crisis of 2008. As a result of the recession, the GDP fell by 5.0% from the spring of 2008 to the spring of 2009. In mid-2008 house prices fell and major banks suffered huge losses and faced bankruptcy. To help stabilise financial markets, the US Congress established relief programs and provided about $1,500 billion dollars to create jobs and to help

 In general, the US government only plays a small direct role in running the nation’s economic enterprises. Businesses are free to hire or fire employees and open or close operations. Unlike the situation in many other countries, new products and innovative practices can be introduced very quickly. The government does, however, regulate various aspects of all US industries. These include worker safety and work conditions, air and water pollution, food and prescription drug safety, transportation safety, and automotive fuel economy. There are still some government-owned companies. These include the US Postal Service, the Nuclear Regulatory Commission and the National Railroad Passenger Corporation (Amtrak).  The US economy is resilient and flexible. In the first decade of the 21st century, the economy was able to cope with a number of major setbacks. These included

Activists in New York demonstrate for health care rights.

ACTIVITIES 1

300

Read this page and answer the questions. 1 How does the American economy compare with the rest of the world? 2 What kind of economy has the USA got? 3 How many of the world’s big companies are from the USA? 4 How important is the US dollar in the world? 5 When did the US economy enter into a recession? 6 What were the results of the recession? 7 What measures were taken to help economy recover? 8 What long term problems still have to be solved?

An insight into the world of economy and finance

FACTFILE – THE MAIN ECONOMIC INDICATORS GDP

$ 17,95 trillion (2015)

GDP growth

2.8% (2011), 1.6% (2013), 1.7% (2014), 2.4% (2015)

Inflation rate

2.1% (2012), 1.5% (2013), 2.1% (2014)

Labour force

156,8m (2014), 156.4m (2015)

Unemployment rate

8.1% (2012), 7.3% (2013), 6.1% (2014), 5.2% (2015

Poverty rate

15% (2013)

the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2013, the federal government reduced the growth of spending and the deficit shrank to 4.1% of GDP.  The US government has recently passed a number of Acts to protect its citizens and maintain financial stability. These include the Patient Protection and Affordable Care Act, a health insurance reform that is designed to extend health insurance to an additional 32 million American citizens by 2016. In July 2010, the President also signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses and improving accountability and transparency in the financial system. In December 2012, the Federal Reserve Board (Fed) announced plans to try to keep long-term interest rates low, and short-term rates near zero until unemployment drops below 6.5% or inflation rises above 2.5%.

GDP composition by sector (2015) Services 77.6%

Agriculture 1.6%

Industry 20.8%

Labour force by occupation Services 79.0%

Agriculture 0,7%

Industry 20.3%

 Long-term problems include the stagnation of wages for lower-income families, inadequate investment in the deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and budget deficits. The country also faces a chronic trade deficit; imports have a far higher value than exports. (Source: CIA World Fact Book/The Economist)

ACTIVITIES 2

Look at the factfile and graphs on this page and complete the sentences. 1 The USA has a high GDP. In 2015 it 2014, 0.6 % ........................ than in 2013. amounted to ........................ . In 2015, 4 Very few people in the USA work in the the growth rate was ........................, ........................ sector. They represent ........................ than in 2011. ........................% of the labour force. 2 The service sector is the ........................ 5 In 2015, the ........................ totalled 5.2%. important in the US economy. It accounts 6 In 2013 the percentage of US people below for more than 79% of the ........................ . the official poverty line was ........................ . 3 The US inflation rate was ........................% in

3

Use your answers to ex. 1 and 2 to prepare an oral report on the US economy.

4

Write a short paragraph comparing the main US economic indicators with the data relating to the UK (see page 297). 301

1 THE ECONOMIC ENVIRONMENT

US foreign trade International trade is very important to the US national economy, with the combined value of imports and exports equivalent to about one-sixth of the gross national product (GNP). The United States is the world’s second largest trading nation behind China. The USA faces a chronic trade deficit; imports have a far greater value than goods and services exported to other countries. In 2015, US exports of goods and services amounted to $1.51 trillion and imports of goods and services amounted to $2.27 trillion, with the trade deficit at $531,5 billion.

Billion $ 3,000

2,745.2 2,343.8

2,500

2,000

1,961.8 1,944.5

1,112.8

2,210.6

2,743.9 2,272.3

2,009.7

1,678.2

1,500

1,000

0,500

2009

2010

2011

2012

2013 Trade Balance -471.5

ACTIVITIES 1

302

Read these pages and answer the questions. 1 What percentage of the US GNP is accounted for by international trade? 2 What position does the USA occupy among the trading nations? 3 Does the USA have a trade surplus or a trade deficit? 4 What were the values of imports and exports in 2015?

2013

Export Import

An insight into the world of economy and finance

The USA’s major trading partners In the 20th century, the USA received about 55% of its imports from Europe, which also accounted for 70% of its export market. This pattern has changed in recent years and Canada, Mexico, Japan, China, and the United Kingdom are now the USA’s principal trading partners. Leading exports are manufactured products and include electrical and office machinery, chemical products, motor vehicles, aeroplanes and aviation parts, and scientific equipment. Major imports include manufactured goods, petroleum and fuel products, and machinery and transportation equipment.

Main exports 2013 (% of total)

Main imports 2013 (% of total)

Agricultural products

9.2

4.9

(soya beans, fruit, corn, cotton, etc.)

Industrial supplies

26.8

32.9

(e.g. chemicals)

Capital goods (e.g. transistors, aircraft, motor vehicle

49

30.4

parts, computers, telecommunication equipment)

Consumer goods

15

31.8

(e.g. cars, medicines)

The leading trading partners Main export partners (2015) UK Japan China

Main import partners (2015) Germany

3.7%

Japan

4.2%

5.9%

Mexico

7.7%

Mexico Canada

5.5%

13.2%

Canada 15.7%

13.2%

China

21.5%

18.6%

ACTIVITIES 2

Find the mistakes in these sentences and rewrite them correctly. 1 European countries are the USA’s main trading partners. 2 The USA is a major importer of aeroplanes and aviation parts. 3 The USA exports petroleum and fuel products. 4 China is the USA’s top export partner. 5 The UK is the only important European supplier to the USA. 303

2

THE FINANCIAL WORLD

Banking Globalisation in the banking industry Thanks to advances in telecommunications and other financial technologies, banks no longer have to be near customers to manage their finances. The growth in cross-border activities has also increased the demand for banks that can provide various services to different nationalities. Even so, the banking industry isn’t as globalised as many other industries. In the majority of countries, the market share for foreign owned banks accounts for less than 10% of the market. One of the reasons why banking has not been fully globalised is that it is more convenient to have local banks which provide loans to small businesses and individuals. Whereas for large multinational corporations the location of the bank is not important, since the company’s financial information is available around the globe.

Modern banking Over the last 30 years methods of banking have changed dramatically. In the past customers had to visit their banks to access their accounts. Today, technological developments, such as the widespread use of ATM machines and the availability of telephone and online banking services have had a major impact on the industry. As a result, banking has become more flexible and less personalised. Customers can do their banking anywhere and at any time.

Online banking in the UK According to recent figures from the Office for National Statistics, 50% of all UK adults and 75% of 25-34 year olds manage their money online. Mobile banking is also on the rise. About one in five adults has made a payment using their phone and about 25% use their mobiles to check bank balances. Most of the major banks now provide free, secure apps that offer the same functions as online banking. Experts predict that mobile phone transactions in Britain will rise from the current 356 million per year to 1.5 billion by the year 2022.

GoBank was the first mobile-only bank with no physical branches. It offers mobile bank accounts and over 40,000 free ATMs. Customers create an account directly via their mobile devices. In 2015, about 26% of Italian adults accessed online banking sites, either via a computer or mobile phone and 90% of Italian banks offer some form of online banking. Major online banks include ING Direct, CheBanca, WeBank and Hello Bank!

304

An insight into the world of economy and finance

Online banking (e-banking) and mobile banking (or m-banking) are convenient because they enable customers to do their banking from home or on the move. E-banking is the fastest growing Internet activity. 81% of the people who use Internet carry out their banking activities online.

Companion Book, p. 76

Today banking via mobile phone (m-banking) is becoming increasingly popular. Customers can use their smartphones to check balances, pay bills and access services. Thanks to mobile payment apps, they can also use the phones to purchase items in a shop. The user’s credit card or debit card details are loaded into the app. When shopping, the consumer selects a card to use from the menu on their smartphone and then touches the phone to an in-store reader. The payment is processed like a regular credit/debit card transaction. In the USA, the mobile payment app Google Wallet, is becoming more and more popular.

ACTIVITIES 1

Discuss these questions. • Have you got a bank account? • When did you open it? • How do you access and manage your money?

2

Read page 304 and correct the statements. 1 Because of telecommunication and financial technologies, banks have to be near to their customers. 2 An increase in cross-border activities has led to a fall in demand for cross-border banking. 3 Banking is one of the most globalised industries in the world. 4 In most countries the market share for foreign owned banks is high. 5 A few banks provide online banking.

3

Read these pages and answer the questions. 1 What technological developments have revolutionised methods of banking over the last 30 years? 2 What is the fastest growing Internet activity? 3 What four banking functions can customers perform on a smartphone? 4 What is Google Wallet?

4

Find out what these numbers refer to: 1 50% 2 356 million 3 40,000 4 1.5 billion 5 81%

305

2 THE FINANCIAL WORLD

Central banks A central bank is a financial institution that regulates the size of a state’s money supply, the availability and cost of credit and the foreign-exchange value of its currency. The aim of the bank is to keep monetary and credit conditions conducive to a high level of employment and production, a stable level of domestic prices and an adequate level of international reserves.

European Central Bank, Frankfurt.

Specific functions • Issues, controls and regulates the supply of money in the country. • Designs and enforces policies related to interest rates and money supply to control the economy • Manages public debt (money borrowed by the government). • Gives the government financial advice. • Manages foreign exchange reserves. • Controls the activities of commercial banks. • In extreme circumstances, lends money to commercial banks. Examples of central banks include the European Central Bank (ECB) and the Federal Reserve of the United States.

The European Central Bank (ECB) The European Central Bank (ECB) is one of the world’s most important central banks. It is the central bank for ............................... (1) and administers the monetary policy of the ............................... (2) EU member states of the Eurozone. The bank was established by the Treaty of Amsterdam in ............................... (3). The ECB is governed directly by European law, but its organisation resembles that of a corporation in the sense that it has ............................... (4) and stock capital. Its capital is five billion euro which is held by its shareholders – the central banks of the ............................... (5) member states of the EU. FACTFILE The main objective of the ECB is to maintain ............................... (6) stability within the Eurozone. Other tasks include conducting foreign exchange operations and taking care of the ............................... (7) reserves of the European System of Central Banks. The ECB has the exclusive right to authorise the issue of euro ............................... (8). Member states can issue euro coins, but the amount must be authorised by the ECB. 306

Headquarters

Frankfurt (Germany)

Established

1st June 1998

Present President

Mario Draghi

Currency

euro

Website

www.ecb.europa.eu

An insight into the world of economy and finance

The Federal Reserve System The Federal Reserve System, sometimes called the Fed, is the central bank of the United States. It is responsible for regulating the US monetary and financial system. Its functions can be divided into four main areas: • conducting the US monetary policy • regulating banking institutions and protecting the credit rights of consumers • maintaining the stability of the financial system • providing financial services to the US government. The Fed also issues US coin and paper currency, though it doesn’t create it. The currency is made by the United States Department of the Treasury.

Structure The Federal Reserve System is composed of: • the Federal Reserve Board of Governors – a central governmental agency in Washington, DC. • 12 regional Federal Reserve Banks, located in major cities throughout the USA • the Federal Open Market Committee (a 12 member committee with representatives from the Board of Governors and the Federal Reserve Banks), which sets credit and interest rate policies • numerous national and state member banks.

Bank Presidents Boards of Directors Advisory Councils Functions

Board of Governors Federal open market committe

Federal Reserve Bank Member Banks

Other Depository Institutions

American People

FACTFILE Headquarters

Eccles Building, Washington, DC

Established

December 23th, 1913

Currency

United States dollar

Website

www.federalreserve.org

The 12 regional Federal Reserve Banks represent the US central banking authority. They, in turn, are controlled by the powerful Federal Reserve Board in Washington. All national banks and most state banks deposit a certain amount of reserves with their local Federal Reserve Bank which acts as a banker’s bank, issues currency, makes loans and advises on government financial policy.

ACTIVITIES 1

Read ‘Central Banks’ on page 306 and answer the questions. 1 What is a central bank? 2 What is the aim of this type of bank? 3 What are the names of the central banks in Europe and the USA?

2

Listen to and read the text about the European Central Bank on page 306. Complete the missing information.

3

Read this page and complete the sentences. 1 The Federal Reserve System is ......................................................................................... 2 It is responsible for ........................................................................................................... 3 It also issues ..................................................................................................................... 4 The Board of Governors is a ..................................................... based in .......................... 5 The 12 regional Federal Reserve Banks represent ............................................................

. . . . . 307

2 THE FINANCIAL WORLD

The stock exchange Companion Book, p. 36

The stock exchange is a financial marketplace where stockbrokers can buy and sell securities, often referred to as stocks. The securities are issued by companies (shares and debentures of PLCs) and by public bodies (government bonds, treasury bonds and local authority bonds). A stock may be bought or sold only if it is listed on an exchange, and it is not listed unless it meets certain requirements set by the exchange’s Board of Governors. Shares are separate equal parts into which the capital of a company is divided. Their holders, the shareholders (stockholders in American English) thus own part of a company. A public limited company (PLC) can sell its shares to the general public through a prospectus; once the newly issued shares have been acquired by the investors, they are quoted on the stock exchange where they can be traded. Debentures are documents given to the lenders of long-term capital to a company. The debenture holders, unlike shareholders, are creditors of the company and not owners. They receive a fixed rate of interest and will have their loan capital paid back at an agreed date. Bonds are fixed interest financial assets issued by governments, banks, public utilities and other large entities. Bonds pay the bearer a fixed amount at a specified end date.

London Stock Exchange.

Stock exchanges were originally open to all, but now only experts called stockbrokers can buy and sell directly for themselves or for others, charging commissions for their services. Nowadays most trading at the exchanges is done electronically.

The role of stock exchanges

1

Raising capital for business

2

Indicating trends in the economy

Facilitating company growth

3

Government capital-raising via bonds Creating investment opportunities for small investors 308

4 5

An insight into the world of economy and finance

ACTIVITIES

MAJOR STOCK EXCHANGES NYSE Euronext

1

Read page 308 and choose the correct options. 1 The stock exchange is a a multinational. c a central bank. b a financial marketplace. 2 In a stock exchange traders buy and sell documents called a securities. c exchanges. b interests. 3 The people who operate in a stock exchange are called a shareholders. c stockbrokers. b holders. 4 Shares are equal parts of the a structure. c capital. b plan of a company. 5 Debentures are documents given to long-term a creditors. c debtors. b owners of a company. 6 Bonds are usually issued by a private companies c public bodies b individuals.

2

Read these pages and answer the questions. 1 What is the stock exchange? 2 Who can operate directly on the stock exchange? 3 What are securities often called? 4 How is trading done nowadays? 5 How can stock exchanges help raise money for the government? 6 What can stock exchanges tell people about the economy? 7 What are the most important stock exchanges in the world? 8 What do experts predict will happen to stock exchanges around the world in the near future?

3

Find find the English equivalents of the following: 1 borsa valori 5 obbligazionisti 2 titoli 6 operatore di borsa 3 azionista 7 titoli di stato 4 obbligazioni 8 investitore.

NASDAQ OMX Tokyo Stock Exchange London Stock Exchange Group Shanghai Stock Exchange

Experts predict that, in the near future, the world’s 100-plus stock exchanges will converge into a few global networks. This is partly due to the fact that, in today’s global world, multinational companies need a unified trading system. The move should also help stock exchanges to make big savings in relation to technology and order processing. In 2007, the New York Stock Exchange (NYSE) won control of the European operator Euronext becoming the first transatlantic stock market operator. It brought together major marketplaces across Europe and the United States. It is the largest combination of its kind and the first to create a truly global marketplace group. NYSE Euronext now manages Stock Exchanges in New York, Chicago, San Francisco, Paris, Brussels, Amsterdam, Lisbon, London and Belfast.

309

Stock indexes A stock index or stock market index is a way of measuring the value of a section of the stock market. It is calculated from the prices of selected stocks. Stock indexes are used by investors and financial managers to describe and compare the market. The main stock indexes in the USA are the Dow Jones, the Nasdaq Composite Index and the S&P 500. In Europe the main stock index is the FTSE 100 Index.

ACTIVITIES 1

2

310

Read this page and answer the questions. 1 What is a stock index? 2 How is it calculated?

3 Who uses stock indexes and why?

Match the stock indexes to the stock markets they monitor. Stock index Stock markets a New York Stock Exchange 1 FTSE 100 2 The SSE Composite Index b Tokyo Stock Exchange 3 The S&P 500 c London Stock Exchange 4 The Nasdaq Composite Index d Shanghai Stock Exchange 5 The Dow Jones Industrial Average e Nasdaq Stock Exchange 6 The Nikkei 225 f NYSE and the Nasdaq Stock Exchange

ACTIVITIES 3

Read the sentences and identify the stock index. 1 It is published every day in the Financial Times newspaper. 2 It was started in 1896. 3 II tracks the performance of a large number of technology stocks. 4 It is the name of a Japanese financial newspaper. 5 It is named after a bank in Hong Kong. 6 It was started by the founders of the Wall Street Journal.

4

Choose one of the stock indexes below and find out more information about it. Write a short paragraph. Include information about: • its history • the number of companies the index monitors. • what the index measures 311

Cultural context

1 English in the world today • • • •

The history of English The spread of English English around the world English at work and play

2 Cultural identity • • • • •

The four nations National identity Britain, a cultural kaleidoscope America, a nation of immigrants The USA, a pluralist society

3 The UK: geography and history • The United Kingdom • London • Milestones in British history

4 The USA: geography and history

• The USA • New York • Milestones in American history

5 English-speaking countries • • • •

Ireland Canada Australia South Africa

6 Political systems

• A parliamentary system: the UK • A presidential system: the USA • The main EU institutions

DIGITAL EXPANSIONS

1

ENGLISH IN THE WORLD TODAY The history of English English is a Germanic language that originated from the dialects brought to Britain by invaders from northwest Germany and Denmark in the 5th century. One of these tribes was the Angles. Their dialect was called ‘Englisc’ from which the word ‘English’ comes. The development of English can be divided into three periods: Old English (or Anglo-Saxon; to 1066), Middle English (to about 1500), and Modern English.

Old English (400 AD-1066) The early inhabitants of Britain spoke a Celtic language. In 43 BC Britain was invaded by the Romans who occupied the land until 410 AD. The Romans influenced the country greatly, but had little permanent impact on the language. In the 5th century AD, Angles, Saxons and Jutes crossed the North Sea from Denmark and Northern Germany. The invaders dominated the original Celtic-speaking inhabitants, who were pushed into Wales, Cornwall and Scotland and the Brittany coast of France. The dialects spoken by the Germanic settlers formed what is now called Old English. Hundreds of Latin words entered Old English in 597 AD. A hundred and fifty years later, the language was influenced by the Vikings, who arrived from Scandinavia. Their language, Norse, was similar to modern Swedish. Nearly 2,000 Scandinavian words were added to English. These include words such as ‘sky’, ‘leg’ and ‘cake’.

Celtic bronze belt buckle.

ACTIVITIES COMPREHENSION

1

Read these pages and tick (✓) the statements true (T) or false (F). Correct any false statements. 1 The Roman dialect formed the basis of Old English. T F 2 The Vikings had little impact on Old English. T F 3 In the 12th century, English was the language of the nobility. T F 4 Chaucer wrote in Middle English. T F 5 English has only incorporated words from European languages. T F 6 Thousands of new words are added every year. T F

2a

Match the English words to their language of origin. 1 rendezvous 3 vigilante 2 bungalow 4 graffiti a German

b 314

b French

c Latin

Now listen and check your answers.

d Hindi

5 6 e Italian

magnanimous waltz f Spanish

Cultural context

Middle English (1066-1500s) The Old English period ended with the Norman conquest in 1066. The Norman duke William beat the English king Harold at the Battle of Hastings. The Normans ruled in England for about 300 years and the language changed again. The Norman kings and the high nobility spoke a variety of French. English continued to be the language of the common people. Most literature from this period was in Old French or Latin, but a large number of Norman words were assimilated into Old English. By the end of the 14th century, the dialect of London was what we now call Middle English. In the early 1340s, the first great English writer, Geoffrey Chaucer, was born. His most famous book, The Canterbury Tales, is written in Middle English.

The Canterbury Tales.

Modern English (1500s-2000s) The language evolved once more into Modern English from around the time of William Shakespeare in the 16th century. At that time England started an era of exploration and colonisation. As a result many new words entered the language. Shakespeare himself used over 1,600 new words in his plays including ‘champion’ and ‘gossip’. Over the centuries English has incorporated words from about 350 languages including Latin, Greek, French, German, Arabic, Hindi, Italian, Dutch, Portuguese, Spanish and African languages. Today English has the largest vocabulary in the world. The Oxford English Dictionary contains over 600,000 definitions and it is estimated that about 25,000 words are added to the language each year. The Global Language Monitor in Texas estimates that a new word is added every 98 minutes. William Shakespeare.

ACTIVITIES PRODUCTION

3

Work in pairs. Take turns to ask and answer questions. • Who / invade Britain / in the 5th century? • How / their dialect / influence English? • What other events / change Old English? • What / happen in 1066? Why / be it important? • Why / be Geoffrey Chaucer important? • When / the language evolve into Modern English?

4

Use your answers to the questions in ex. 3 to write a summary of the history of English. Begin like this: In the 5th century AD... 315

1

ENGLISH IN THE WORLD TODAY

The spread of English Explorations During the reign of Elizabeth I (1558-1603) England became a strong and prosperous country. The Queen encouraged important sailors such as Sir Francis Drake and Sir Walter Raleigh to explore trading routes to the New World (north, central and south America) and the Caribbean. A new age of travel, trade and settlement started. This was the first step in the spread of English across the world.

Early American colonies In 1620, a group of Puritans, known as the Pilgrim Fathers, left England to escape religious persecution. They settled in an area which they named New England. Over the next 30 years more than 250,000 British people followed them. North America was a British colony until the War of Independence in 1776. After that date America became an independent country, but kept English as its mother tongue.

ACTIVITIES WARM UP

1

Class discussion. Discuss the following. • Why do you think English is spoken in so many countries? • What are the historical reasons for this spread?

COMPREHENSION

316

2

Why were these people important for the spread of English? Read these pages and find out. • Queen Elizabeth I • the Pilgrim Fathers • Queen Victoria • Sir Francis Drake / Sir Walter Raleigh • James Cook

3

Work in pairs. Ask and answer questions to complete the timeline. Dates

Events

...................

Reign of Elizabeth I.

1620

............................................................. left England to escape persecution.

1776

............................................................. started.

...................

James Cook claimed Australia for Britain.

1788-1830

............................................................ were sent to Australia.

1837-1901

Reign of ......................................................... .

Australia English was exported to the other side of the world in 1770 when the British At first Australia was considered as a place to send convicts. This was because there was a lot of crime in Britain at the time and the prisons were all full. Thousands of criminals were sent to Australia between 1788 and 1830 and the area where they first settled later became the city of Sydney. After 1830, British people began to emigrate to Australia in large numbers and English became Australia’s mother tongue.

Emigrants on the ship Monrovian leave Essex, bound for Australia.

The British Empire Throughout the 19 th century English became an important language on every continent thanks to the enlargement of the British Empire. The Empire was founded under the reign of Queen Victoria (1837-1901) and, at its peak, it covered a quarter of the earth’s surface including the countries of Canada, India, Nigeria, South Africa, Australia and New Zealand. In the 20 th century these countries gained their independence, but became part of the British Commonwealth. Most also maintained English as their first language.

ACTIVITIES 4

Listen to the recording about Queen Victoria and complete the factfile. QUEEN VICTORIA Born in ............................... .

Reigned from ............................... to ............................... .

Main events during her reign: 1 ........................................................................................................................................... ........................................................................................................................................... 2 ........................................................................................................................................... ........................................................................................................................................... 3 ........................................................................................................................................... ........................................................................................................................................... Died in ............................... .

PRODUCTION

5

Write a short biography of Queen Victoria. Use the factfile in ex. 4.

6

Find out more about one of these famous people and write a short biography. • Queen Elizabeth I • Walter Raleigh • Francis Drake • James Cook 317

1

ENGLISH IN THE WORLD TODAY

English around the world Although most people agree that Mandarin Chinese is the most spoken language in the world, many people believe that English is the most influential. One of these, George Weber, a Swiss businessman and language expert, has compiled a list of the 10 most influential languages in the world. To do this he considered six different factors: THE 10 MOST INFLUENTIAL LANGUAGES IN THE WORLD (George Weber) 1 English

6 Chinese

2 French

7 German

3 Spanish

8 Japanese

4 Russian

9 Portuguese

5 Arabic

10 Hindi/Urdu

1  the number of primary speakers 2  the number of secondary speakers 3  the number and population of the countries where the language is used

4  the economic power of the countries using the language 5  the number of major fields (science, diplomacy, etc.) 6

using the language internationally  the socio-literary prestige of the language.

ACTIVITIES WARM UP

1

Work in pairs. Answer the questions. • What is the most spoken language in the world? And the most widespread?

COMPREHENSION

2

Listen to the speaker and complete the table with the missing information. Countries with the highest populations of first and second language English-speakers

318

Country

The USA

............................

The UK

............................

Germany

No. of speakers

291,524,091

125,226,449

............................

52,292,884

51,584,000

population %

............................

............................

98%

57%

............................

Cultural context

English – lingua franca ◗ English is the first language in 36 countries including the USA, the UK, Canada, Australia, Ireland, South Africa and New Zealand. ◗ It is an official language in 34 countries. ◗ More than 1 billion people speak English as a second or foreign language.

◗ About 180 million students are currently learning English in China. Some experts estimate that, by the year 2025, nearly all Chinese people under the age of 25 will speak English. ◗ A lot of English dialects and English-based languages have developed around the world. These are often referred to as pidgins and creole languages.

Where are you from?

I am from Madrid.

◗ English words have also started to become part of other languages. Some experts think that 5% of the day-to-day French vocabulary now comes from English creating an interlanguage called ‘Franglais’. Examples of Franglais words include ‘le sandwich’, ‘le jean’ et ‘le weekend’.

Pidgin is a simple form of English with simplified grammar and a limited number of words used together with words from the local language. Creole is a pidgin language which has become the mother tongue of a community. It is more complex than a pidgin.

ACTIVITIES 3

Read the article and answer the questions. 1 How many countries use English as the first or as an official language? 2 How many people speak English as a second or foreign language? 3 What are pidgin and creole forms of English? 4 What is ‘Franglais’?

PRODUCTION

4

Class discussion. Discuss the following. • Is English a compulsory school subject in your country? How many years do schoolchildren have to study it? • Do you think that by the year 2025, everybody under the age of 25 will speak English in your country? Why? Why not?

5

Imagine that you are planning a round-the-world trip to improve your English. • Select five countries that you would like to visit. Explain where you are going to go and why.

6

Explain in your own words why English, rather than any other European language, is the most likely to become a world language. 319

1

ENGLISH IN THE WORLD TODAY

English at work and play The emergence of the United States as a superpower at the end of World War II greatly accelerated the adoption of English across the planet. Today English has become the world’s first global language. It is the dominant international language in communication, science and technology, business, travel, entertainment, politics and diplomacy. English is everywhere – at work and play.

FILMS and TV English is the dominant language of film. This is due to the importance of the USA in the film industry. A lot of commercially successful films are produced in Hollywood, Los Angeles. These include E.T. (1982), Star Wars (1999), Avatar (2009), The Avengers (2012), Jurassic Park 3D (2013) and many more. English is also the language of global TV. Most of the largest broadcasting companies in the world transmit in English and satellite TV means that these channels can be viewed all over the world.

Business

&

Travel

Approximately 80% of business communication around the world takes place in English. English is the official language of many international organisations such as the United Nations and the EU. It is also the official language for air and sea communication.

❖ 95% of scientific articles are written in English, even though only half of them come from authors in English-speaking countries.

❖ English is the medium for 80% of the information stored in the world’s computers.

❖ English is the most common language on the Internet. In 2011 about 565 million users spoke English.

❖ More than 56% of home pages on the Web are in English, compared to 6% in Russian and German and 5% in Japanese.

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Cultural context

ACTIVITIES WARM UP

1

MUSIC Modern music started with rock ’n’ roll in America in the 1950s. American superstars, such as Elvis Presley, influenced British bands like the Beatles who became famous in the 60s. Over the next few decades English-speaking bands and singers such as Pink Floyd, Elton John, Queen and U2 were all important. Today a lot of pop stars, including Beyoncé and Lady Gaga come from the USA. In other parts of the world, non-native English speakers such as Shakira and Enrique Iglesias often sing in English to break into the huge English-speaking market.

Work in pairs. Discuss how and if you use English when you do these things: • listen to music • watch TV or films • write e-mails/text messages • surf the Internet • chat with friends.

COMPREHENSION

2

All these statements are incorrect. Rewrite them correctly. 1 Rock ’n’ roll started in the UK. 2 The USA had no influence in the spread of English. 3 Italian is the most common language in films. 4 English isn’t an official EU language. 5 95% of scientific articles are written by native English speakers. 6 German is the most common language on the Web.

3

English is the language of tourism. Where would you hear the following? Listen and number the places. at an airport in a train station in a hotel on a cruise in a restaurant on a tourist bus

PRODUCTION

4

Work in pairs. Discuss your favourite: • pop / rock songs • TV programmes • films. How many of the songs, TV programmes and films are in English or were originally made in English?

5

Write a short text about how you use English in your free time. Use ideas from ex. 1, 2, 3 and 4. Start like this: I use English for...

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ENGLISH IN THE WORLD TODAY

MEDIA FILE

Welcome to Globish, a new language of global business English may be the global language of business, but that doesn’t mean communication is always easy. According to a study released recently by the Economist’s Global Intelligence Unit, nearly half of executives at global companies believe language barriers, leading to ineffective communication or inadequate collaboration, have resulted in them losing money. 90% of them also think that an improvement in crossborder communication would improve their profits and market share. Communication between native and non-native speakers of the language can be problematic even when both parties speak English. JeanPaul Nerrière is a native French speaker, and was for many years a global marketing vicepresident at IBM. He’s fairly fluent in English, but has an accent and at times his language is simplistic. Nerrière’s English is indicative of that spoken by many business people around

the world. ‘When I travelled to places like Japan and Korea, people seemed happy to do their English business with me, because my English was as limited as theirs,’ he says. ‘If we all had the same communication levels, we had no limitations at all.’ That changed when native English speakers entered the conversation. Their phrases were more complex, full of multiple meanings and subtlety. No one could follow them, but it was obvious they spoke much better English. So everyone stopped talking, ashamed and unsure in their ability to communicate. Nerrière’s solution to this problem is a tool he has developed (‘not a language,’ he insists) called Globish. Globish is a simplified version of English containing a subset of standard English grammar and just 1,500 words. Nerrière created

ACTIVITIES WARM UP

1

Read the title of the article and answer the questions. • What do you think Globish is? What language is it based on? Who do you think speaks it?

COMPREHENSION

2

Read the article and answer the questions. 1 What consequence can language barriers have in conducting business? 2 How different is the English spoken by native speakers to that of most non-native speakers? 3 What problems can this cause? 4 What solution does Jean-Paul Nerrière propose? 5 How many words does Globish have? 6 What advantages does Globish have over English?

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it by observing the English patterns that nonnative speakers of English use to communicate with each other. He developed the rules for Globish in two books and now has a business training people to use the language tool. Nerrière is convinced that you can use Globish to communicate anything. ‘When people can talk together without worrying about their English,

they enjoy communicating and it saves a lot of time and money’ he says. Will Globish catch on? The world market for communication will make or break the future of Globish, but many experts think that it will never be more than a stepping stone for some people. One of them describes his experience listening to representatives from several international telecom companies speak: ‘Their vocabulary is bigger than 1,500 words and they communicate with native English speakers with confidence. The discussions were fast and freeflowing with frequent questions from the audience... You can only appreciate how impressive this is if you have attempted to master a foreign language yourself. These elite performers actually do better than many native English speakers.’ The need for a global language is a big part of globalisation, and the dominance of English looks inevitable for a long time to come. Those with a gift for learning languages will have a big advantage. For everyone else, why not start with Globish? (Source: Forbes / Leading Company)

3

Find words or phrases in the article that correspond to the following: 1 people working in management in a business organisation 2 something that stops you making progress 3 involving movement or action across a border 4 something you use that helps you perform an operation or necessary in the practice of a profession 5 something that allows you to make progress or to begin to achieve a goal 6 people who do something exceptionally well.

PRODUCTION

4

Write a summary of the article. Use your answers to ex. 2 to help you. Give your personal opinion regarding the future of Globish. 323

2

CULTURAL IDENTITY The four nations The British Isles consist of two large islands, Great Britain (England, Scotland and Wales) and Ireland, and hundreds of smaller ones. Most of Ireland is an independent state called the Republic of Ireland or Eire. The north-eastern part of Ireland, however, forms part of the United Kingdom of Great Britain and Northern Ireland. This state is often referred to as the United Kingdom, the UK or Britain. The people who live there are British.

The United Kingdom A lot of people who don’t live in the UK call the state ‘England’ and refer to its people as ‘English’. This is incorrect as the UK is made up of four nations: England, Wales, Scotland and Northern Ireland. A long time ago these nations were very different from each other. They spoke different languages and had different ways of life. Today there are fewer differences. Nearly all UK residents speak English and the four nations are all part of one state. Even so, the people in each of the nations still feel their separate identity very strongly.

1 devolution: federalismo

Over recent years the UK has given the people of Scotland, Wales and Northern Ireland more control over their domestic affairs by setting up a Scottish Parliament in Edinburgh, the National Assembly for Wales in Cardiff and a Northern Ireland Assembly in Belfast. In September 2014, a national referendum was held in Scotland to decide if Scotland should become an independent country. The votes rejected independence with 55% of the population voting to stay part of the UK. Even so, the British Prime Minister acknowledged that Scotland, Wales and Northern Ireland must have greater independence in the future. The possibility of devolution  1 for regions of England has also been discussed.

The Union Jack The proper name of the national flag of the UK is the Union Flag, although almost everybody calls it the Union Jack. It is a combination of the flags representing England (St George’s Cross), Scotland (St Andrew’s Cross) and Ireland (St Patrick’s Cross). Wales is not represented because, when the flag was designed in 1606, it was considered to be a principality of England. 324

■ NORTHERN IRELAND or ULSTER Emblem: the shamrock (trifoglio) Patron Saint: St Patrick National day: March 17th (St Patrick’s Day) Language: English and Irish Gaelic (spoken by less than 9% of the population)

■ WALES Emblem: the leek (porro) and the daffodil (giunchiglia) Patron Saint: St David National day: March 1st (St David’s Day) Language: English and Welsh (spoken by about 20% of the population and the first language in much of rural north and west Wales) NORTHERN ■ ENGLAND IRELAND Emblem: the red rose Patron Saint: St George National day: April 23rd (St George’s Day) Language: English

SCOTLAND

Edinburgh

Belfast

■ SCOTLAND Emblem: the thistle (cardo) Patron Saint: St Andrew National day: November 30th (St Andrew’s Day) Language: English and Scottish Gaelic (spoken by about 17% of the population, many of whom live in the Hebrides)

ENGLAND WALES Cardiff

London

ACTIVITIES WARM UP

1

Which countries make up the British Isles? The United Kingdom? Great Britain?

PRODUCTION

4

Discuss your country’s national flag. If you, your parents or your grandparents were immigrants from another country, tell the others about the flag of that country. • Describe the flag and its colours. • Say when it was adopted and give your opinion of what the colours represent. • Say why you like/don’t like it and how you would change it.

5

Write a paragraph about devolution. • Describe what devolution is and how it has changed the United Kingdom. • Say if devolution is an issue in your country. • Give your opinion about devolution.

COMPREHENSION

2

3

Read these pages and find the following: 1 the countries that form the UK and their capital cities 2 the name of an Irish saint 3 the countries whose national days are in March 4 the language spoken by a minority of Scottish people 5 the country whose emblem is a yellow flower 6 the name of the British flag. Read these pages again and write a list of words/phrases related to: • geography • politics

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National identity Christine and her family I was born and grew up in the south-west of England. My mum’s English but my dad’s Welsh. He lived in Cardiff until he was 20. He still feels his identity very strongly and he’s passed that on to me and my family. He grew up feeling Welsh. I could sing the Welsh national anthem when I was 4 years old and I always wore a daffodil on St David’s Day. Our holidays were usually spent in Wales and we frequently visited our family in Cardiff. Mum occasionally stuck up for the English, but there wasn’t much she could do. She’s an only child and her parents lived abroad when I was young so the Welsh side of my family was obviously more influential. Above all, my dad loves rugby. He played rugby for Cardiff when he was a teenager. Over the years I’ve grown to love rugby – particularly Welsh rugby! I still often go to the Millennium Stadium in Cardiff to watch Wales play! Today I live in Matlock, a town in the north of England. My husband Simon is Scottish, which has added a new dimension to the family! We now celebrate Hogmanay on New Year’s Eve and Burns Night on 25th January. Simon wears his kilt on these occasions and we always have haggis for dinner.

ACTIVITIES WARM UP

1

What is your ‘national identity’? Is it the same or different to the people in the country where you live?

COMPREHENSION

2

326

Read about Christine and her family and answer the questions. 1 Where did Christine grow up? 2 What nationality are her parents? 3 What national identity did she identify with most during her early years? Why? 4 What sport did she grow to love? What team does she support? 5 What other culture influences her life today? 6 What Scottish events does she celebrate with her family?

3

Read page 327 and find the following: 1 the name of a traditional Scottish song 2 what its title means 3 a sign of good luck for the new year in Scotland 4 the name of a Scottish tradition 5 the date of birth of Robert Burns 6 a traditional Scottish dish 7 the name of a man’s skirt made of tartan material 8 what the Six Nations competition is.

Rugby Rugby is the national sport in Wales but some people believe that it was invented in England. They claim that the game started in an English school called Rugby. Students at the school wrote the first set of rules for rugby in 1845. Every year the Welsh Rugby team compete in an important Rugby Union competition called the Six Nations. The competition is between England, Wales, Scotland, Ireland, France and Italy.

Hogmanay and Burns Night Hogmanay is the Scottish name for the celebrations that take place on New Year’s Eve. At midnight, Scottish people join hands and sing a traditional song called Auld Lang Syne. The words of the song were written by the Scottish poet Robert Burns in 1788 and the title means ‘Long, long ago’. Another tradition is ‘First footing’. Scottish people believe that their new year will be prosperous if a ‘dark stranger’ carrying a piece of coal is the first person to enter their house after midnight. Some people think that the tradition started in the times of Viking raids, when the arrival of a blond stranger at your doorstep would have indicated trouble. Burns Night on 25th January is a celebration of the birth of the famous Scottish poet Robert Burns (1759-1796). A traditional Burns Night supper always includes haggis – a meat dish cooked in a sheep’s stomach – which is usually served with mashed potatoes and swede 1. Scottish people often wear traditional clothes to these celebrations. In particular, Scottish men wear a man’s skirt called a ‘kilt’, which is made of tartan material. 1 swede: tipo di cavolo

ACTIVITIES 4

5

Find words and phrases that mean: 1 the official song of a nation 2 a child without brothers and sisters 3 the last day of the year 4 a yellow spring flower 5 a person that you don’t know.

PRODUCTION

6

Work in pairs. Discuss the questions. • How do you usually celebrate New Year’s Eve? • How do you usually dress? What do you usually eat? • What other feast days are celebrated in your country? What happens on those days?

7

Write an e-mail to a British friend about your last New Year’s Eve. Say where you were and what you did.

Listen and fill in the blanks. The Millennium Stadium in Cardiff is the home of the Welsh national .............................. (1) union team and the Welsh national .............................. (2) team. In 2012, it was one of the venues for the .............................. (3). It also hosts many other large .............................. (4) and .............................. (5). Performers have included Tina Turner, Madonna and the Rolling Stones. The Stadium opened in .............................. (6) and can accommodate .............................. (7) spectators. It is the largest stadium in the world with a fully retractable .............................. (8).

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CULTURAL IDENTITY

Britain, a cultural kaleidoscope As a result of invasion, expansion and the creation of an Empire and a Commonwealth, the UK has a multicultural population. 14% of the total population, about 8 million people, come from the BME (black and minority ethnic) groups. The majority of them live in three very large cities, London, Birmingham and Manchester, that account for over 50% of the UK’s entire ethnic minority population. The BME population has doubled in the past decade and now accounts for 80% of growth in Britain. It is predicted that by 2050 up to a third of the UK population will be black or from another ethnic minority. Information leaflets and questions for the 2011 Population Census have been translated into 24 languages. These include the language of the newest UK immigrants: citizens of the new EU member states who have entered Britain in large numbers since 2004. The 5 largest minority communities are (in order of size):

 Indian (1,412,958)  Pakistani (1,124,511)  Black African (989,628)  Black Caribbean (594,825)  Bangladeshi (447,201)

FOREIGN LANGUAGES SPOKEN IN THE UK

European languages: Albanian, Croatian, French, German, Greek, Italian, Polish, Portuguese, Russian, Serbian, Spanish, Turkish Asian languages: Bengali, Chinese, Gujarati, Hindi, Japanese, Punjabi, Urdu, Vietnamese Middle Eastern and African languages: Arabic, Farsi, Somali, Swahili

ACTIVITIES WARM UP

1

A performer at the Caribbean Carnival in Notting Hill, London.

Class discussion. Discuss the following. 1 What does the expression ‘cultural kaleidoscope’ mean? 2 Can your country be considered a ‘cultural kaleidoscope’? Why? Why not? 3 What are the advantages and disadvantages of a multicultural society?

COMPREHENSION

2

328

Read this page and tick (✓) the statements T (true) or F (false). Correct any false statements. 1 Britain has a multicultural population. T F 2 Three of the largest minority communities are from Asia. T F 3 Birmingham has a minority white population. T F 4 At least 25 different languages are commonly spoken in the UK. T F 5 Large numbers of non-EU citizens have entered the UK to live since 2004. T F

Cultural context

What makes you British? The increasing ethnic diversity of British society means that it is difficult to define what makes someone British. However, the majority of UK residents, of all ethnic backgrounds, support the idea of one national identity. 78% of people – including a majority across all ethnic groups – think that anyone living in the UK who is not familiar with the British way of life should have to attend citizenship classes. Here are some personal opinions of what it means to be British.

Michelle Wong When people ask me where I am from I say I am British. Even though I am of .............................. (1) origin, I have always thought of myself as British. Being British is more than just having a British .............................. (2). It’s about being .............................. (3) of and caring about the country. Anybody who cares about Britain and what happens in it is British in some way.

Leon Lammy I see myself as British and .............................. (4) and proud of it. I get really .............................. (5) if anyone refers to me as being West Indian or .............................. (6) because I was born here not elsewhere.

Amir Qalzai I was born in Afghanistan and came to Britain .............................. (7). I am a BritishAfghan. I am proud to be a British citizen. Being British is about making a positive contribution to society and .............................. (8) in harmony with others. We Brits .............................. (9) too much, instead of appreciating the good things we have!

ACTIVITIES 3

Listen and fill in the blanks in the quotes above.

PRODUCTION

4

Class discussion. Discuss the following. • Do the majority of residents in your country support the idea of one national identity? • How strong is regional identity in your country? • Do the various regions in your country differ in relation to lifestyle and culture?

5

Write a paragraph about immigration to your country. Answer these questions. • What are the main ethnic minority groups? • To what extent have they adopted the cultural identity of your country? • To what extent have aspects of their lifestyle and traditions enriched your culture? 329

2

CULTURAL IDENTITY

America, a nation of immigrants Photos of immigrants, Ellis Island, National Museum of the History of Immigration.

Historic reasons for migration In 1862, the Homestead Act offered free land in western areas of the USA. Immigration increased and reached its peak in 1907 with the arrival of 1,285,000 immigrants. The Ellis Island Immigration Station was the main entry point for immigrants. All new arrivals were interviewed on the island and given a medical examination. About 2% were denied admission and sent back to their own countries because of disease, a criminal background or insanity. For this reason the island was known as the ‘The Isle of Hope and Tears’. Almost 50% of Americans can trace their family history to at least one person who passed through the port of New York at Ellis Island.

 GERMANS left their country (1815-1914) to escape poverty or persecution.  ITALIANS migrated to escape problems such as poverty, overpopulation and high taxation.  The discovery of gold in California in 1848 attracted great numbers of CHINESE people.  Large numbers of IRISH people fled from hunger and famine in the mid 19th century. Between 1844 and 1854 about 25% of the population migrated to the USA.

 Jewish people from POLAND, FINLAND and LITHUANIA escaped unfair laws imposed by the Russian government.  In Greece working conditions were so bad that one out of every four GREEK men of working age moved to the USA.  From the 1890s the JAPANESE also featured among the immigrants. They settled on farms in California.

ACTIVITIES WARM UP

1

Write a list of the reasons why people migrate to other countries. Discuss your ideas with the class.

COMPREHENSION

2 330

Read this page and write down the reasons for migrating to the USA from: China • Eastern Europe • Germany • Greece • Ireland • Italy • Japan

Cultural context

Immigration today In 1921, the American Congress decided to pass a law to slow down the pace of immigration to the USA. Immigration laws have become stricter and it is now more difficult to settle in America. Even so, the USA accept more legal immigrants as permanent members than any other country in the world. Nearly 14 million immigrants entered the USA from 2000 to 2010. Most of these came from Mexico, China, the Philippines, India, Cuba, Colombia, the Dominican Republic, El Salvador, Vietnam, Jamaica, South Korea and Guatemala.

The ‘American Dream’ In the past immigrants to the USA arrived in the country hoping to build a better life and to become richer than in their countries of origin. The Statue of Liberty, the first thing they saw on arrival, became the symbol of their ‘American Dream’. The ‘American Dream’ is the dream of a land where it is possible to achieve success as a result of individual talent and energy rather than family status and connections. In the ‘American Dream’ people can make choices without restrictions of class, religion, race or ethnic group and everyone receives equal opportunities. It is still important to American people today.

‘Because what binds us together, what makes us one American family, is that we have to stand up and fight for each other’s dreams. It’s time to reaffirm that fundamental belief – I am my brother’s keeper, I am my sister’s keeper – through our politics, our policies and in our daily lives. It’s time to reclaim the American Dream.’ Barack Obama, President of the USA (2009-2016)

ACTIVITIES 3

Read these pages and answer the questions. 1 What is the Homestead Act? 2 How many immigrants arrived in the USA in 1907? 3 Where is Ellis Island? What was its nickname? 4 What happened there?

4

5 Where do most of the immigrants come from today? 6 What is the ‘American Dream’? 7 Why did the Statue of Liberty become a symbol of the ‘American Dream’?

Listen to an immigrant at Ellis Island and tick (✓) the questions asked. Do you smoke? Can you drive a car? Can you read or write? Have you ever been in prison? Do you have a ticket to your destination? Are you a polygamist? How much money do you have with you? How many foreign languages can you speak?

PRODUCTION

5 6

Work in pairs. Imagine that you are immigrants who meet at Ellis Island. Ask and answer questions about: • name and age • job • nationality • reasons for immigration. Write a paragraph outlining why people migrate to other countries. Start like this: People migrate to other countries for many reasons. For example... 331

2

CULTURAL IDENTITY

FAST FACT German Americans form the largest self-reported ancestry group in the USA, outnumbering the Irish and the English.

The USA, a pluralist society As a result of immigration and slavery, modern American society is composed of many different ethnic, racial and religious groups. ANCESTRY WITH THE LARGEST POPULATION African American Aleuth/Inuit American Native American

Dutch English Finnish French

German Hispanic/Spanish Irish Italian

Mexican Norwegian Puerto Rican Other

ACTIVITIES WARM UP

1

Look at the map and locate the areas of the USA where these people settled. African • Irish • French • Mexican • German • Native American • Italian • Norwegian

COMPREHENSION

332

2

Read these pages and answer the questions. 1 What terms have been used to describe American society? How do they differ? 2 What is the American motto? What does it mean?

3

Listen and tick (✓) the statements T (true) or F (false). Correct any false statements. 1 Katja has lived in the USA all her life. T F 2 She couldn’t speak fluent English when she arrived in the USA. T F 3 There were a lot of foreigners in her primary school in Germany. T F 4 Most of her friends today were born in the USA. T F 5 She still has some German customs. T F

Cultural context

The USA: a melting pot or a mosaic? The USA has often been described as a ‘melting pot’ where people of different cultures, races and religions have blended together to form a new American identity. Some people criticise the metaphor, however, because they feel that it ignores the rich and varied multicultural aspects of the USA. Today the term ‘mosaic’ is becoming a more popular way to describe American society. The separate parts of a mosaic mix together to form something different but, at the same time, maintain their individual characteristics. In the same way immigrant populations within the United States are transforming the society into a multicultural mosaic.

Naturalisation ceremony, immigrants become American citizens.

E Pluribus Unum E Pluribus Unum is the motto of the United States. It appears on the official US seal as well as on the nation’s money and on many of its public monuments. The phrase means ‘From many, one’. It was first used when America declared its independence from Britain in 1776, to suggest that out of many colonies or states a single nation had emerged. Over the centuries it has acquired a new meaning. It now refers to the fact that the many different immigrants to the USA have joined together to create a single society with its own identity, constitution and laws.

ACTIVITIES PRODUCTION

4a b 5

Work in small groups. Discuss the following. • What is a pluralist society? • What are the advantages and disadvantages of living in a pluralist society? Compare your ideas with the other groups.

Write a paragraph explaining why the USA is considered to be a pluralist society. Start like this: The USA is a pluralist society because... 333

3

THE UK: GEOGRAPHY AND HISTORY The United Kingdom The United Kingdom of Great Britain and Northern Ireland is located off the northwestern coast of continental Europe. It consists of the island of Great Britain (England, Wales and Scotland), the north-eastern part of the island of Ireland and several smaller islands. The British landscape is a patchwork of different elements. Two main regions can be distinguished: areas of high land in the north and west and a vast area of low land in the south and east. The main mountain ranges include the Scottish Highlands and Grampians, the Pennines and Cumbrian mountains in north-west England and the Cambrian mountain range in Wales. The .............................. (1) do not reach great heights and the highest peak in Britain, Ben Nevis in the Grampian mountain range, is only 1,347 m. Northern and western areas of the UK are also rich in lakes and rivers. The largest .............................. (2) is Lough Neagh, in Northern Ireland, and major .............................. (3) include the rivers Severn and Wye in Wales and the rivers Forth and Clyde in Scotland. The most famous river in Britain, however, is the river Thames, which flows through important English .............................. (4) in the south of England, including Oxford, Windsor and .............................. (5). The UK coastline ranges from the wild, rocky .............................. (6) of Scotland and Northern Ireland to the huge, peaceful areas of fenland 1 along the East Anglian coasts. There are sandy .............................. (7) with rocks and pools, secret coves 2 and small fishing .............................. (8). 1 fenland: area paludosa 2 cove: insenatura

ACTIVITIES WARM UP

1

What do you know about the geography of the UK? Name: 1 the countries in the UK and their capital cities 3 the highest mountain 2 the seas which surround the UK 4 an important river and a major lake.

COMPREHENSION

2 334

Listen and fill in the blanks in the text about the United Kingdom above.

FACTFILE ◗ Area: 244,820 sq km ◗ Population total: 64,430,428; 260.4 people per sq km ◗ Urban population: 82.6% (2015) ◗ Form of government: constitutional monarchy Head of State: Queen Elizabeth II ◗ Capital and largest city: London ◗ Longest river: the Severn (Wales and England), 354 km ◗ Highest mountain: Ben Nevis (Scotland), 1,347 m ◗ Largest lake: Lough Neagh (lɒk ˈnei) (Northern Ireland), 385 sq km ◗ Climate: temperate with relatively limited variation in temperatures over the year ◗ Currency: pound sterling (GBP); 1 £ = 100 pence

Ben Nevis

North Sea

Lough Neagh

River Severn

ATLANTIC OCEAN

English Channel

ACTIVITIES 3

Read these pages and correct the statements. 1 The main mountain ranges are in the south and east of Britain. 2 Ben Nevis is a very high mountain. 3 The largest UK lake is situated in Scotland. 4 The most famous river in Britain is the Severn. 5 The UK coastline is very flat.

PRODUCTION

4

Write a paragraph about the geography of your country. Use the paragraph about the UK as a model. Start like this: I live in... It is located...

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When a man is tired of London, he is tired of life; for there is in London all that life can afford. Dr Samuel Johnson (1709-1784)

London

VIDEO

London is one of the greatest cities in the world. It has an unrivalled cultural and artistic heritage and is a vibrant and dynamic place. It is home to over 8 million people of many different nationalities and cultures. Over 36% of the capital’s inhabitants are ethnic minority members and over 300 different languages are spoken in the city! London is also one of the few global centres for international business and has a resident workforce of more than 3.4 million people. London ranks as one of the most expensive cities in the world, alongside Tokyo and Moscow, and has a larger number of billionaires than any other country. The city also continues to be one of the most popular tourist destinations in the world with more than 27 million visitors a year!

The London Eye

London Old and New Top tourist attractions 1 TheLondonEye 2 BuckinghamPalaceandWhitehall 3 TheTowerofLondon andTowerBridge 4 BigBenandtheHousesofParliament 5 MuseumsandArtgalleriese.g. theBritishMuseum,theNational Gallery,theTateModern

The London Eye is one of the most popular tourist attractions in the city. Built on the south bank of the river Thames, across the river from the Houses of Parliament, the Eye is one of the world’s tallest observation wheels. The capsules of the wheel rise to a height of over 135 metres, giving passengers a spectacular view of the city. More than 3.5 million people take a ride on the wheel every year.

Speakers’ Corner, Hyde Park For over 150 years, Speakers’ Corner has been one of London’s most unique and eccentric attractions. On Sunday mornings, anyone who has an opinion to express and anyone who wants to listen can meet at the corner of Oxford Street and Hyde Park. Famous speakers in the past include Karl Marx, Vladimir Lenin and George Orwell.

ACTIVITIES WARM UP

336

1

Write a list of things you associate with London.

2

Work in pairs. Ask and answer questions. • Have you ever been to London? – If so, what did you like about it? What didn’t you like? – If not, what places in London would you like to visit? Why?

COMPREHENSION

3

Read these pages and find the following: 1 the population of London 2 the number of languages spoken 3 the number of tourists each year 4 the number of skyscrapers in London 5 an important sports event held in London 6 seven groups or singers associated with London 7 two fashion designers who live in London.

City skyline

Big Ben

London has now more than 570 skyscrapers. Notable modern buildings include 30, St Mary Axe, also known as ‘The Gherkin’ (a small pickled cucumber 1) because of its shape and the O2 Arena, formerly the Millennium Dome. The tallest structure in 1 picked cucumber: London, the Shard 2 at 310m, cetriolo sottaceto is the tallest habitable 2 shard: scheggia building in Western Europe.

The clock tower of the Houses of Parliament is one of the most recognised symbols of London, but few people realise that Big Ben isn’t the name of the tower. It’s the name of the largest bell inside the tower, the bell that rings the hour. Big Ben is about 2.4 metres wide and weighs 13.5 tons. It was first rung in July 1859.

Fashion London is home to several important designers, including Vivienne Westwood and Stella McCartney. Its renowned art and fashion schools make it an international centre for fashion.

Music London is at the cutting edge of the music scene. Famous singers and groups include Elton John, David Bowie, Phil Collins, the Clash, the Rolling Stones and, more recently, Coldplay and Jessy J. The city played a prominent role in the international charity concerts Live Aid (1985) and Live 8 (2005).

Sport The 2012 Olympic Games were held in London. The city has a vast range of sporting facilities, including the top class venues in the Olympic Park.

ACTIVITIES 4

Listen to a tourist guide on a boat trip on the Thames. Underline the correct alternatives. 1 The correct name for the British Parliament building is Big Ben / the Palace of Westminster. 2 It’s got 1,100 rooms / 1,100 staircases. 3 There are 30 / 32 capsules on the London Eye. 4 The London Eye opened in 2000 / 2002. 5 You can visit the London Eye / Globe Theatre in the area of Bankside.

PRODUCTION

5

Choose one of the places listed in the ‘Top tourist attractions’ on page 336 and find more information about it on the Net. Then write a paragraph describing it. Start like this: ... is one of the top tourist attractions in London. It is located in... and it has been open to the public since...

337

3

THE UK: GEOGRAPHY AND HISTORY

Milestones in British history Britain has played a dominant role in world history. In the 19th century it was the richest nation in the world and it had an enormous empire with colonies on every continent. Two world wars and a failure to keep pace with industrial advances have reduced Britain’s position on the world stage, although it still remains an influential country.

HISTORY TIMELINE

43AD-410

18th century

20th century

The Romans invaded and conquered most of England and Wales.

Britain expanded its Empire. Increased trade and technical innovations led to the Industrial Revolution (1760-1830).

Britain lost part of its economic power. The Empire gradually collapsed and became the Commonwealth. Northern Ireland was created in 1920, leading to tension and conflict there. Britain became part of the European Community (1973).

410-1066 Anglo-Saxon tribes from north-western Europe invaded and settled in England and southern Scotland. This was followed by the Viking conquest in the 9th century.

1066-1485

700 BC Celtic people arrived from continental Europe.

The Normans invaded Britain from France. William the Conqueror became King William I of England.

16th century Henry VIII separated from the Roman Catholic Church and became the head of the ‘Church of England’. Wales was joined to England under one administration. During the reign of Elizabeth I, Britain increased world exploration and became a rich and powerful country. 17th century James I of Scotland became king. Parliament established its supremacy over the monarchy in Britain. The Protestant Church became stronger.

19th century With the Act of Union in 1801, Ireland becames part of the United Kingdom of Great Britain. The UK, under Queen Victoria, controlled the largest Empire in the world and had enormous economic power.

21th century Peace and political stability has been restored in Northern Ireland. Scotland, Wales and Northern Ireland have taken over control of their domestic affairs.

ACTIVITIES WARM UP

1

Can you name any British monarchs? What do you know about them?

COMPREHENSION

2

338

Read the history timeline and correct the statements. 1 The Romans never conquered Wales. 2 The Vikings invaded Britain before the Romans arrived.

3 King William I was a Celtic king. 4 Henry VIII was the head of the Roman Catholic Church. 5 During the reign of Elizabeth I, Britain was a weak and poor country. 6 In the 18th century the British Empire was quite small. 7 Queen Victoria reigned over Britain in the 20th century. 8 Britain has never joined the European Community.

The Industrial Revolution Industrialisation took place earlier and more rapidly in Britain than anywhere else in the world. This was partly because of the existing conditions in England. A system of internal waterways and the absence of physical barriers, such as mountains, made the transport of goods less difficult than in other nations. Coalfields 1 and forests, located close to large deposits of metal ores 2, provided fuel to power the factories that produced iron ore and successful commercial banks provided financing for investments in industrial plants and machinery. Another important factor in the process of industrialisation was the invention of new technologies. Britain pioneered the development of new steam-powered machines  3 such as the

Spinning Jenny  4 and the power loom  5, which enabled production processes to become largescale. At the same time, advances in agriculture meant that farms were able to produce food with fewer workers. Unemployed workers migrated to the new industrial areas in the Midlands and the north and many large towns and cities, such as Birmingham, Manchester and Sheffield were established. London became a centre of banking and a mercantile and professional class grew up. 1 coalfield: miniera di carbone 2 metal ore: minerale grezzo 3 steam-powered machine: macchina a vapore

4 Spinning Jenny: filatoio multiplo 5 power loom: telaio per tessitura

ACTIVITIES 3

Read ‘The Industrial Revolution’ on this page and answer the questions. 1 How did the Industrial Revolution change Britain? 2 What were the main inventions? Why were they important? 3 Where were the main industrial towns located? 4 Why did people migrate from the country to these towns?

4

Find and write the following: 1 two reasons why the transport of goods was easy in Britain 2 two steam-powered machines 3 three British cities that were established during the Industrial Revolution.

PRODUCTION

5

Class discussion. Discuss the following. • Why did industrialisation start in Britain? • What were the positive and negative effects? • Has industrialisation taken place in your country? If so, when? Which towns/cities were most involved? 339

3

THE UK: GEOGRAPHY AND HISTORY

The Victorian Age 1 sanitation: servizi igienici 2 pave: lastricare 3 drainage: fognatura

Queen Victoria (1819-1901) reigned for 64 years, starting in 1837. This period of history is known as the Victorian Age and has a unique place in British history. The successful exploitation of three new communication technologies (the steamship, the railway and the electric telegraph) and the expansion of the economy and international trade gave Britain an unrivalled position as a global industrial and trading power and made it the world’s most powerful country. When Queen Victoria died the British Empire was the largest the world had ever seen.

Life in Victorian times The Victorian Age started at the height of the Industrial Revolution, a period of significant social, economic and technological progress in the UK. Industrial towns grew at a rapid rate and the population increased sharply. Life in the towns was very hard for a lot of people. Many people lived in slums with poor sanitation 1 and no open spaces. Children in poor families had to work, even at the age of 4 or 5. In the second half of the Victorian Age, living conditions in town gradually improved. Streets were paved 2 and drainage 3 laid. Supplies of pure water were provided and gas lighting was installed in the streets. Later, electricity and trams were introduced in big towns and the standards of housing, food and everyday life rose. Towards the end of the century, children were guaranteed education from the ages of 5-13. In 1851 a Great Exhibition of the world’s goods and manufacturers marked the peak of British economic dominance. It opened in Crystal Palace in Hyde Park, London. More than 6 million people visited it. Over half of the 14,000 exhibitors represented the UK and its Empire. Victorian London engraving by Gustave Doré, 1872.

ACTIVITIES WARM UP

1

Answer the questions. 1 What or who do you think the Victorian Age was named after? 2 Do you think it was an eventful period for Britain? Why?

COMPREHENSION

2

340

Read these pages and correct the statements. 1 Queen Victoria reigned for a short time. 2 During the Victorian Age, the British economy experienced a period of recession. 3 Life in the new towns was very comfortable. 4 In 1850 all children went to school.

3

Complete the fact file about the Great Exhibition. Held: in ............... (1) in ................... (2), London. Total No. of visitors: ....................................... (3) Total No. of exhibitors: .................................. (4) Exhibits: ........................................................... (5)

Cultural context

The British Empire The British Empire was one of the biggest empires in the world. At its peak, in the 1920s, around 25% of the world’s population lived under the British rule and over a quarter of the land in the world belonged to Britain.

The development During the 16th century Elizabeth I encouraged British sailors to explore trading routes with the Americas and the Caribbean. At the beginning of the 17th century the first British colonies were created in North America by groups of colonists who settled there to escape from religious persecution. During the following two centuries continuing strength at sea enlarged the British presence in the world. The loss of American colonies, which declared their independence in 1776, was compensated by the acquisition of Canada, India and Ceylon, Gibraltar, Malta and other territories in Africa and Central America. At the same time Captain Cook explored Australia and New Zealand which also became British territories.

The decline and the British Commonwealth In the mid 20th century, the Age of the Empire gradually came to an end. Weakened by World War II, Britain could no longer afford to keep armies abroad. Public opinion was also changing; it was no longer acceptable for one country to rule another. In 1947, India gained independence, followed by all African countries, except Rhodesia. They gained their independence between 1957 and 1968. Rhodesia finally became independent as Zimbabwe in 1980 and Hong Kong returned to China in 1997. Britain now holds only a few small territories like Gibraltar and the Falkland Islands. The Empire evolved into a more informal, voluntary confederation of independent states, called the Commonwealth. It was set up in 1931 and is formed by 52 countries including the UK. It helps keep cultural contacts alive among Britain and the ex colonies. The British Monarch is the Head of the Commonwealth.

Captain Cook.

ACTIVITIES 4

Read this page and complete the timeline with dates or events. Dates 16th century ................................ 18-19th century ................................ 1957-1980 ................................

Events .................................................................................................................................... First British colonies were created in North America. .................................................................................................................................... India gained independence. .................................................................................................................................... Hong Kong returned to China.

PRODUCTION

5

Write a paragraph about the growth and decline of the British Empire. Use the information from this page and your answers to ex. 4 to help you. 341

3

THE UK: GEOGRAPHY AND HISTORY

Late 20th century Britain In the 20th century Britain had to redefine its place in the world. The British Empire was dismantled and the UK rebuilt itself into a modern and prosperous European nation.

The 1970s: Britain in Europe In 1973, Britain entered the European Community and strengthened its links with the other European countries in trade. Decimalisation was introduced for the monetary system. The 1970s were also characterised by labour tensions and an imploding economy. After the Arab-Israeli war in 1973, oil prices rose sharply and British industries were forced to use more coal. At the time miners were dissatisfied because of the government’s policy of wage controls and the closure of many unprofitable mines. They went on strike. In response emergency legislation that limited the working week to three days was introduced. The Labour Party won the 1974 general election after promising not to interfere with the unions. With legal limits removed, the unions won wage increases. Workers now had more money to spend, while the amount of available goods on the market remained the same. As a result, prices for products began to rise, and inflation went up. Food prices rose 20% in 1973 alone. In 1979 an agreement between the Labour Party and the unions to keep wage demands moderate collapsed, and another round of strikes started.

A group of miners demanding higher wages, 1974.

ACTIVITIES WARM UP

1

5 What happened in the early 1980s? 6 What was the economic situation like in Britain in 1983?

Why do you think Britain was nicknamed ‘Cool Britannia’ in the 1990s?

7 Why did Margaret Thatcher resign in 1990? 8 Who was the leader of the Labour Party in 1997? What measures did the government take to re-launch Britain?

COMPREHENSION

2

Read these pages and answer the questions. 1 When did Britain enter the European Community? 2 What effect did this event have? 3 What were the 1970s in Britain characterised by? 4 Who won the elections in 1974? What economic effects followed?

342

3

Find the following: 1 the monetary system used in Britain since 1973. 2 Britain’s first female Prime Minister 3 her nickname 4 a group of islands off the coast of Argentina.

The 1980s: Thatcherism In 1979, the Conservatives capitalised on the situation to win the election. The ‘Iron Lady’, Margaret Thatcher, became Britain’s first female Prime Minister. The government began a policy of privatisation, closing unprofitable industries and reducing the amount of government spending. By 1981, both interest rates and unemployment had reached post-war highs, and a growing number of British firms faced bankruptcy. Despite pressure and criticism, Thatcher refused to abandon her policies. A political crisis was averted only after war broke out when Argentina invaded the Falkland Islands. The Falkland War led to a mood of defiance in Britain and the Conservatives were elected for a second term in 1983. By 1983 unemployment was over 3 million. A deep social division between the north and south had also been created. The industrial centres of Scotland, Wales, and northern England were in ruins, and entire generations of workers were unemployed. The new wealth that some people enjoyed, particularly in the south-east, contrasted sharply with the poverty of many inner-city residents and unemployed people. Conservative support slipped in the polls, and members of the party revolted against Thatcher, who resigned in 1990. The Conservatives kept control of the government until 1997 when the Labour Party came to power with a landslide  1 victory under the leadership of Tony Blair. The new government focused on improving education, fighting crime and reducing the level of unemployment, especially for young people. Britain was re1 landslide: launched as a modern dynamic nation, ‘Cool schiacciante Britannia’, as it approached the new Millennium.

Top left: Memorial to the Falkland War. Top right: Margaret Thatcher.

ACTIVITIES 4

Write a list the major events and the most influential people in Britain in the late 20 th century.

PRODUCTION

4

Explain in your own words why: • the 1970s were characterised by an imploding economy • there was a deep social division between the north and the south during the 1980s 343

21st century Britain Home

About us

History

2001

Geography

Contact

A few months after the terrorist attacks of 11 September 2001, the British government supported the USA and participated in the campaign against the Taliban in Afghanistan.

2003 Britain approved military intervention in Iraq and the war started in March 2003.

2005 Four British Muslim men carried out suicide bomb attacks on London’s public transport system as a protest to Britain’s involvement in the Iraq war. 56 people died (including the four bomBers) and 700 were injured. 2007 Peace and political stability was finally restored in Northern Ireland when Unionists and Republicans agreed to govern together.

Terrorist attacks in London, July 2005. Queen Elizabeth II’s Diamond Jubilee.

2008 A financial crisis hit the British economy together with the economy of most of the developed countries in the world. To face the crisis the government partly nationalised three leading UK banks and invested billions into the UK financial system. 2009 In April the British military mission in Iraq officially ended. 2010 General election: the Conservative Party won the most seats but failed to gain an absolute majority. The Conservative leader David Cameron became Prime Minister at the head of a coalition with the third-placed Liberal Democrats. 2011 Britain played a prominent role in the international intervention in the conflict in Lybia. 2012 London hosted two important events: the celebration of the Diamond Jubilee (50 years as monarch) of Queen Elizabeth II and the Olympic Games. 2013 Prince George, the royal baby and heir to the throne was born in July. He is the son of Prince William and Kate Middleton. 2016 Brexit: In June, a referendum took place and 52% voted in favour of leaving the European Union.

ACTIVITIES WARM UP

1

Class discussion. What has happened in the UK since the start of this century? Can you name any important events? What do you know about them?

COMPREHENSION

2

344

Read this page and answer the questions. 1 How long did Britain’s involvement in the military intervention in Iraq last? 2 What was the reason given for the suicide bombing in London in 2005? 3 How many people were killed? 4 How did the British government react to the financial economic crisis which started in 2008? 5 Which political party won the most seats in 2010 general election? 6 What took place in June 2016?

Cultural context

Northern Ireland – a troubled past Northern Ireland has had a history dominated by sectarian conflict. The conflict increased in the late 1960s and the tension turned into violence, which continued until the late 1990s. This period of time is known as ‘The Troubles’. Northern Ireland was created in 1920 by the Government of Ireland Act. The Act granted home rule 1 to Ireland, apart from six counties in the north-east. The population there included many Protestant descendants of Scottish and English settlers and these people opposed the idea of home rule. When the Northern Irish parliament opened in the capital, Belfast, in 1921, it was dominated by Unionists (mostly Protestant) who supported the union with Britain. In the decades that followed, the Catholic community faced a lot of social discrimination and tension between the two communities built up.

In the late 1960s, the Catholic community started to campaign strongly for equal rights and Protestant loyalists (loyal to the British Crown) responded with counter protests. The tension turned into violence and, in 1969, the British Government sent soldiers into the country. In 1972, Northern Ireland’s Parliament was suspended and direct rule was imposed from London.

1 home rule: governo diretto 2 ceasefire: cessate il fuoco

During the 1970s, 1980s and early 1990s paramilitary groups carried out violent campaigns. The IRA (Irish Republican Army) was responsible for bomb and gun attacks in Britain and Northern Ireland that targeted police, soldiers, politicians and civilians. Loyalist paramilitary groups responded with a campaign of violence against the Catholic community. During ‘The Troubles’ over 3,600 people died, most of them civilians.

In the early 1990s, negotiations took place between political parties and the governments of the UK and Ireland. After several years of talks, the IRA and loyalist paramilitary groups agreed on a ceasefire 2 and in 1998 the Good Friday Agreement was signed. This was the first step in the long road towards peace. In March 2007, elections to the Northern Irish Assembly took place. British telephone box with the Republic of Ireland flag painted on, Northern Ireland, 1977.

ACTIVITIES 3

Read this page and match each paragraph with an appropriate title. Choose from: a The difficult road to peace d The Troubles b Direct rule imposed by Britain e Sectarian conflict in Northern Ireland. c The creation of Northern Ireland

4

Read about the history of Northern Ireland and draw a timeline with key dates and events.

5

Find words or phrases on this page that correspond to these definitions: government of a country by its own citizens people who come to live in a new country permanently groups organised like military forces, but not part of the official armed force agreement to stop fighting people not serving in the military or police forces.

1 2 3 4 5

PRODUCTION

6

What does the term ‘The Troubles’ refer to? Explain in your own words when and why ‘The Troubles’ occurred. 345

4

THE USA: GEOGRAPHY AND HISTORY The USA The United States of America is part of the North American continent. It is one of the largest countries in the world and it has four different time zones. When it is 9am in New York, it is only 6am in Los Angeles.

1 edge: sponda 2 livestock: bestiame

There are five main geographical areas in the USA: • The Atlantic and Gulf Coastal Plain runs north to south along the Atlantic coast from New York to Mexico. The inner edge 1 of this plain is known as the ‘Fall Line’ because of the waterfalls that have formed in the places where rivers fall from a higher to a lower level. • The Appalachian Highlands are a line of low mountain ranges which separate the east coast from the Great Lakes and the Mississippi Basin. • The Great Plains lie west of the Mississippi River. They form the USA’s most important agricultural area, producing most of the country’s grain, soya beans and livestock 2. • West of the Great Plains are the Cordilleran Highlands. They include the Rocky Mountains and the Sierra Nevada and cascade mountain ranges and contain some of the highest mountains in the country. Between the two mountain ranges there is a large area of arid desert with spectacular geographical features, such as the Grand Canyon in north-western Arizona. • The Pacific Slope includes the fertile valleys of California, Oregon and Washington. The crests of the Rocky Mountains are known as the ‘Continental Divide’. This is because all rivers east of the Rockies flow into the Atlantic, while all the waters to the west flow into the Pacific. The Mississippi is the longest river in the USA. It flows for about 3,900 km from Minnesota south to the Gulf of Mexico.

ACTIVITIES WARM UP

1

346

What do you know about the geography of the USA? Answer the questions. 1 What countries border the USA? 2 Which two states are not part of mainland USA? 3 What is the capital of the USA? 4 What is the climate of most areas of the USA?

COMPREHENSION

2

Read this page and answer the questions. 1 What is the ‘Fall Line’? Why does it have that name? 2 Where is most US grain produced? 3 In which area are the most spectacular mountains and canyons of the USA situated? 4 What kind of area is the Pacific Slope? 5 What is the ‘Continental Divide’?

FACTFILE ◗ Area: 9,826,630 sq km ◗ Population total: 323,995,528; 32.4 people per sq km ◗ Urban population: 82% ◗ Administrative divisions: 50 states and the District of Columbia. Two states, Alaska and Hawaii, are separate from mainland USA ◗ Form of government: federal constitutional republic; President: Donald Trump ◗ Capital and largest city: Washington, DC ◗ Longest river: the Mississippi, 3,900 km ◗ Highest mountain: Mount McKinley, 6,198 m ◗ Largest lake: Lake Superior, 83,300 sq km ◗ Climate: mostly temperate, but tropical in Hawaii and Florida, arctic in Alaska, semiarid in the Great Plains west of the Mississippi River, and arid in the Great Basin of the south-west ◗ Official language: English ◗ Second language: Spanish ◗ Currency: US dollar (USD)

ACTIVITIES 3

Find the English equivalents for these Italian geographical terms: 1 pianura costiera 4 area agricola 2 cascata 5 altopiano 3 catena montuosa 6 deserto arido.

PRODUCTION

4

Work in pairs. Read the factfile and ask and answer questions. Ex.: Student A: What’s the total area covered by the USA? Student B: It’s 9,826,630 sq km.

5

Find information on the web about Italy to complete a factfile similar to the one above. 347

4

THE USA: GEOGRAPHY AND HISTORY

New York was given its first official name by Native American Indians who settled on an island on the Hudson River and called it Manhattan (meaning ‘large island’). The name changed to New Amsterdam in 1624 when Dutch settlers bought the island for the equivalent of $26! Finally, when the English took control in 1664 they changed the name to New York in honour of the Duke of York. The city also has many nicknames. One of these is ‘The Big Apple’. In the 1930s, jazz musicians adopted the phrase to refer to New York as the jazz capital of the world. ‘There are many apples on the tree of success’ they said ‘but when you pick 1 neighbourhood: New York, you pick the big apple’. quartiere Other nicknames include 2 homeland: patria ‘Gotham’ – which was later used

as the name of the fictional city in the Batman stories – and ‘The city that never sleeps’. The population of New York has grown from only 270 people in 1642 to over 8.4 million today! It is now the most populated city in the USA. 36% of the population was born outside of the United States and 49% speak a language other than English at home. Almost 25% of the residents are native Spanish speakers. Some of the city neighbourhoods 1, such as Chinatown, Little Italy and Spanish Harlem, reflect the rich ethnic background of the residents’ original homelands 2 .

ACTIVITIES WARM UP

1

2-37

Which of these are nicknames for New York City? The Big Smoke • The Big Apple • Gotham City • The Big City • The city that never sleeps

3

348

Listen to the interview and tick (✓) the statements true (T) or false (F). 1 Ana is Italian.

T

F

2 She’s been in New York for a week.

T

F

3 She’s traveling with friends.

T

F

4 She’s staying at New York University.

T

F

Read these pages and make notes about New York: location • first settlers • population • languages spoken • boroughs

5 She’s visited the Metropolitan Museum.

T

F

6 She particularly likes Chinatown.

T

F

7 She thinks New York is exciting.

T

F

What do these figures refer to? 1 $ 26 2 36% 3 150 4 37 5 18,000

8 She doesn’t like the air conditioning.

T

F

COMPREHENSION

2

4

Cultural context

Welcome to The Big Apple! NEW YORK TOURIST INFORMATION New York, the city that never sleeps! With 150 museums, 37 Broadway theaters, thousands of restaurants and clubs and an unbelievable number of shops, there is something to interest visitors 24 hours a day! Welcome to New York, where the only limit is your imagination!

MAJOR SIGHTS If this is your first visit to New York, why not take a tour on a doubledecker bus or a famous yellow taxi? Visit Central Park, Wall Street, Times Square and the Empire State Building. If you are interested in art, don’t miss the Metropolitan Museum of Art and the Guggenheim Museum. Take a boat ride to visit Ellis Island and the Statue of Liberty, or take a trip on the famous Staten Island ferry.

SPORT If you are a sports fan, New York is the place for you! Watch the New York Yankees play baseball or the New York Knicks, our favourite basketball team. And, if you are feeling energetic, why not try iceskating in Central Park? Go for it!

SHOPPING New York is a shopper’s paradise. It has everything from designer labels to flea market  1 bargains, all at the best prices! Why not visit Macy’s, the largest store in the world? Try Madison Avenue for exclusive stores, or go to the Meatpacking District to experience the city’s most fashionable neighbourhood. And don’t forget Soho or Greenwich Village. 1 flea market: mercato delle pulci

ENTERTAINMENT For evening entertainment how about opera or ballet at the Lincoln Center, a concert at Carnegie Hall, or one of the many shows playing on Broadway? And to eat out choose from one of NY’s 18,000 restaurants! Try Japanese sushi, Middle Eastern falafels or spicy Thai food. The choice is yours!

ACTIVITIES 5a b

Read this page and make notes about places and events in New York. Use these headings. • major sights • shopping • entertainment • sports Work in pairs. Read the role play cards. Choose your role and act out a dialogue. Exchange roles. Student A You are a NY tourist information officer. A tourist asks for information. Answer the questions.

Student B You are a tourist in NY. Choose a category in ex. 5a and ask for information about places you can visit and things you can do.

PRODUCTION

6

Write a postcard from NY to an English-speaking friend. Write about what you have done during your stay. Start like this: Greetings from New York! I’m here on holiday and... 349

4

THE USA: GEOGRAPHY AND HISTORY

Milestones in American history America is both a very old and a very new nation. The first settlers reached Northern America around 40,000 BC, but the USA wasn’t formed until the mid 18th century. Its history is the story of making a one nation out of many different people and the creation of a powerful country that plays a dominant role on the world stage today.

Unemployed men queuing for food during the Great Depression.

HISTORY TIMELINE

18th century

20th century

The colonial settlers rebelled against British rule on the east coast. After the War of Independence, 13 colonies signed the Declaration of Independence and formed the United States of America (1776). During the 18th and 19th centuries the nation was affected by the Industrial Revolution taking place in Europe.

The stock market crash of October 1929 led to a period of severe hardship 1 known as the Great Depression. Black people fought for and obtained equal rights in the mid-20th century. The USA was involved in a number of major wars. Towards the end of the century the USA became the world’s sole superpower.

Early 21st century

1492 Christopher Columbus claimed the ‘New World’ for Spain.

40,000 B.C.11,000 B.C. The first settlers crossed from Siberia to Alaska, across what is today the Bering Strait.

17th century

19th century

In 1607 an English settlement was founded in Jamestown, Virginia. 12 years later the first African slaves were brought to the area. In 1620, English pilgrims settled in Massachusetts.

The discovery of gold in California attracted more than 80,000 people to the area. Differences between the north and south of the country led to the American Civil War (1861-1865). During the 19th and 20th centuries, the nation expanded and 37 new states were added.

On Sept. 11th, 2001, the USA suffered terrorist attacks in New York and Washington, which killed nearly 3,000 people. In 2003, US-led forces invaded Iraq. On November 4, 2008, Barack Obama was elected president. He was the first African-American President. In 2012 Barack Obama was re-elected for a second term. On 18th November 2016, Republican Donald Trump was elected president, defeating the Democratic challenger Hillary Clinton.

1 hardship: stenti

350

Cultural context

America’s Industrial Revolution During the 18th and 19th centuries America was influenced by the Industrial Revolution in Britain. New inventions led to the creation of new industries and the spread of economic growth. The discovery of coal and iron led to a dramatic increase in industrial production. Canals and the completion of the transcontinental railroad provided the base for modern industrialisation and helped the development of new industrial centres such as Pittsburgh and Chicago.

ACTIVITIES WARM UP

1

COMPREHENSION

2

Between the 1860s and the 1870s the number of industrial cities developed. The cities provided a

3

new market for manufactured goods and a supply larger and attracted more factories. More jobs In 1860, 16% of the population lived in urban areas and a third of the nation’s income came from manufacturing. In 1900, there were 38 cities in the USA that had more than 100,000 people: the United States was becoming an urban nation. At the beginning of the 20 th century, the USA was already one of the most powerful nations in the

development

4

of

the nation. Large American factories, like the Ford car factories, were able to produce goods

production’. 1 assembly line: catena di montaggio

English pilgrims settle in Massachusetts.

1776

...................................................

1861-1865

...................................................

Oct. 1929

...................................................

Nov. 2016

...................................................

Read ‘Urbanisation and economy’ on this page and complete the summary.

Find and write the following: 1 a definition for mass production 2 a noun and an adjective derived from the word ‘industry’.

5

Class discussion. Discuss the following. • Which of the events in the timeline on page 350 had an effect on the life, economy and politics of the world?

6

Write a paragraph of about 150 words about the process of industrialisation in your country. Explain: • when and in which areas it took place • its effects • how it changed society.

using a system of

known as ‘mass

...................................................

.................

PRODUCTION

quickly and cheaply assembly line 1 manufacturing

1607

The new factories attracted ....................... (2) and towns developed into ....................... (3). This meant that there was an increasing market for ....................... (4) and enough ....................... (5) to work in the factories. These factors led to further ....................... (6) . At the start of the 20th century, ....................... (7) had more than ....................... (8) people.

were available, which led to further growth.

automobile contributed greatly to the economic

Events

At the end of the 19th century the number of ....................... (1) in the USA continued to grow.

of people to work in the factories. They grew

world. The discovery of oil and the invention of the

Read the history timeline on page 350 and complete with dates or events. Dates

Urbanisation and economy factories in the USA continued to grow and new

Which European explorer discovered America? When? What do you know about him?

351

4

THE USA: GEOGRAPHY AND HISTORY

Slavery 1 guns: armi 2 at auction: all’asta 3 molasses: melassa

A group of African Americans aboard the USS Vermont (ca. 1861-1865). The United States Navy employed thousands of freed slaves during the Civil War.

Between 1620 and 1820, millions of Africans were transported across the Atlantic and sold into slavery in the Americas. Most of them worked on plantations or large farms, especially in the south of the USA. The British slave trade was known as ‘the triangular trade’ because of the route it took. Ships departed from British ports with goods such as guns 1 and cloth. These goods were exchanged with African chiefs for slaves. The slave ships then carried their cargo across the Atlantic to the Americas and the Caribbean. Here the traders sold the slaves at auctions 2 and, with the money, they bought sugar, tobacco, rum and molasses 3. Finally, the ships returned to Britain carrying this cargo, which was sold at huge profits. At the time of the Industrial Revolution, the profits of the slave trade amounted to 5% of the British economy. An estimated 12 million Africans were shipped to America from the 16th to the 19th centuries. Of these, about 645,000 were brought to what is now the USA. Slavery was legal in all of the 13 colonies. Today African Americans are the descendants of these slaves.

EUROPE NORTH AMERICA

WEST AFRICA

BRAZIL

ACTIVITIES WARM UP

1

Look at the map and answer the questions. 1 What areas of the world did the slave trade 3 Where did the slaves come from? involve? 4 How were they transported to the USA? 2 Why was it called ‘the triangular trade’?

COMPREHENSION

2

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Read this page and complete the steps of the slave trade. 1 Ships sailed from .............................. full of .............................. . 2 They arrived in .............................. where the goods were exchanged for .............................. . 3 The slave ships sailed onto .............................. where the slaves .............................. . 4 The traders then bought .............................. and filled the ships.

The slave trade The voyage from Africa to the New World was a terrible experience for the captured Africans and many died during the ocean crossing. After they arrived in America, slaves were sold in public auctions. Families were often divided up and small children were sometimes taken from their mothers and sold separately. Slaves belonged to their owners and had no legal rights. They could not meet together in public and could not travel without permission. It was also illegal to teach a slave how to read or write. In 1808, the Congress outlawed the slave trade with Africa, however, the system of slavery continued for more than 50 years. In 1863, Lincoln issued the Emancipation Proclamation, which freed slaves held in the Confederate States in the South and, two years later, the 13th Amendment to the US Constitution prohibited slavery throughout the country. Even so, many states, especially in the South, continued to discriminate against black Americans. The Civil Rights movement in the 1960s helped eliminate segregation, strengthened Black Americans’ voting rights and made job discrimination illegal. In 2008, the US House of Representatives passed a resolution apologising for American slavery and subsequent discriminatory laws.

The Selma march, Alabama, 1965. A group of civil rights demonstrators march from Selma to Montgomery to fight for black suffrage.

Slave life

The life of a slave was terribly hard and many slaves died within a few years of arriving in America. Most worked on large cotton plantations. They planted and picked the crops and did other work on the farm. They worked without pay from early morning to sunset, watched by a boss called an ‘overseer’ 1. House slaves looked after the master’s house and family. In many households, the treatment of slaves varied according to the colour of the slave’s skin. Darker-skinned slaves worked in the fields, while lighter-skinned house servants had comparatively better clothing, food and housing. 1 overseer: soprintendente

ACTIVITIES 3

Read this page and say why these dates are important in the history of Black Americans. 1 1808 2 1863 3 1865 4 1960s 5 2008

4

Describe the living and working conditions of slaves.

PRODUCTION

5 6

Class discussion. Do you think any forms of slavery exist in developed countries today? Who are the slave owners? And the slaves? Write a short text about slavery. Follow the guidelines: • define slavery • give a brief history of slavery in America • give examples of any forms of slavery that exist today. 353

4

THE USA: GEOGRAPHY AND HISTORY

The Bread Line sculpture, by G. Segal, depicting the Great Depression, Washington DC.

The Great Depression The Great Depression was a period of worldwide economic crisis. It started in America in 1929 and then spread to Europe and the rest of the world. The depression had devastating effects in almost every country, both rich and poor. Today it is often quoted as an example of how far the world’s economy can fall.

The Wall Street Crash In the 1920s, a lot of American people invested their money in stocks and shares, pushing the prices up beyond their real value. Share prices reached a peak in August 1929, then started to fall. Investors panicked and started to sell recklessly 1. Things came to a tragic end on ‘Black Tuesday’, 29th October 1929. On that day, prices dropped suddenly and billions of dollars were lost. Wall Street, the New York Stock Exchange, crashed and 1 recklessly: avventatamente 2 go bankrupt: fallire 3 shanty town: bidonville 4 tin: latta 5 cardboard: cartone

this started a severe economic crisis as many banks and companies closed down. The period that followed was one of the darkest in American history. Many companies went bankrupt 2 as people stopped spending. Millions of people lost their jobs and by 1933 unemployment was at 13 million. The unemployed lost their homes and were reduced to living in shanty towns 3 of tin 4 and cardboard 5.

John Steinbeck (1902-68) was one of the leading American novelists of the 20th century. He set many of his stories among the poor migrant workers at the time of the Great Depression. The Grapes of Wrath (1939), his most famous novel, tells the story of a poor family who have to leave their home during the Depression. They set out for California along with thousands of others in search of land, jobs and dignity. Unfortunately, on arrival, they find little hope of realising their dream. The film version of The Grapes of Wrath was made in 1940.

ACTIVITIES WARM UP

1

What do you know about the Wall Street Crash and the New Deal?

COMPREHENSION

2

354

Read these pages and answer the questions. 1 What happened on 29th October 1929? 2 What happened to the world economies immediately after that day? 3 What was the New Deal? 4 Who introduced it? What were its results?

3

Listen to an interview with a woman who lived through the Great Depression. Tick (✓) the statements T (true) or F (false). Correct any false statements. 1 Norma was born in 1929. T F 2 Her father lost his job. T F 3 She had to look after her younger brothers and sisters. T F 4 She was one of three children. T F 5 A lot of things were rationed. T F 6 She had no change of clothes. T F

Cultural context

The depression in Europe The economic crisis in the USA soon spread across the world. By 1932 world exports of raw materials had fallen by over 70%, ruining the economies of many countries which depended on the export of food and raw materials for their income. Severe economic problems also occurred in Europe, which had already suffered devastating losses of property and finances during World War I. By 1933 three million British people were unemployed. The government paid a weekly amount of money, called ‘dole’ 6, to the unemployed people, but poverty and despair was common. Unemployment was a lasting problem. In 1938 there were still about 1.8 million people without work.

The New Deal In 1933, a new American government led by Franklin D. Roosevelt introduced a package of economic programmes known as the New Deal. Its goal was to help the unemployed, reform business and financial practices and promote recovery 7. Banks were able to reopen, but were more closely regulated and savings better protected. Currency and foreign exchange were controlled and loans were made to support farmers. Many of the measures proposed in the New Deal were controversial, but they provided employment for five million people and so restored confidence. 6 dole: sussidio di disoccupazione

7 recovery: ripresa

Above: Unemployed protest, London. Left: The Work Program Administration (WPA) was the largest and most ambitious New Deal Agency, employing millions of unemployed people to carry out public work projects.

ACTIVITIES 4

Find words that mean: 1 a period when there is little economic activity and many people are poor and jobless 2 a place where shares are bought and sold 3 people without a job 4 money paid by the state to people without a job in Britain 5 the money that a country earns from work or investments.

PRODUCTION

5

Class discussion. Discuss the following. • Where and why did the world economic crisis that began in 2008 start? • What effects has it had across the world? • How has your country been affected?

6

Write a paragraph about the recent world economic crisis. Use your ideas from ex. 5. Start like this: In 2008, the world entered a period of economic crisis. The crisis started in... 355

Late 20th century USA The 1960s: the Youth Culture As a result of the ‘baby boom’ after World War II, America had a young population in the 1960’s. Many people began to question basic American values, rejecting the uniformity of the previous decade. They promoted their own youth culture which valued peace, love and freedom. In 1963, President John F. Kennedy, who had governed the country since 1960, was assassinated and Lyndon Johnson became President. In 1964, the USA increased its military intervention in the Vietnam War and by 1969 there were more than 500,000 American soldiers in Vietnam. Throughout the decade public opposition to the war grew and there were many protests and demonstrations. During the 1960s the Civil Rights movement also became important. It was a non-violent protest movement aimed at eliminating segregation, making job discrimination illegal and strengthening voting rights. The movement peaked in 1963 with Martin Luther King Jr’s ‘I have a dream’ speech in Washington DC followed by the 1964 Civil Rights Act and 1965 Voting Rights Act. America suffered a great shock when Martin Luther King was assassinated in Memphis in 1968. During the decade, great advances were made in science and medicine. Space travel became a reality and, in 1969, Neil Armstrong became the first person to walk on the Moon. Top left: John Lennon, a member of the Beatles, and his wife Yoko Ono, protest against the Vietnam War. Left: Martin Luther King’s ‘I have a dream’ speech, 1963.

ACTIVITIES WARM UP

1

In which decade towards the end of the 20 th century did these events occur? • The USA and the USSR met to discuss arms control. • The floppy disc was invented. • The World Wide Web was invented • A coalition force invaded Iraq.

COMPREHENSION

2

356

Read these pages and answer the questions. 1 What was the Civil Rights movement in the 1960s? 2 What inventions and discoveries characterised the technological age of the 1970s? 3 Which two leaders had historic talks in the 1980s? What were they about? 4 What happened to the USSR in 1991? 5 What conflicts was the USA involved in during the 1990s? 6 What technological invention has changed people’s lives in the last two decades?

The 1970s: the technological age The 1970s was a period of technological advancement. The floppy disc appeared in 1970 and Intel introduced the microprocessor; jumbo jets revolutionised commercial flight, doubling passenger capacity and increasing flight range to 6,000 miles; the neutron bomb was developed and the sites of DNA production on genes were discovered. The Vietnam War continued to divide the country even after the Paris Peace Accords in 1974 put an end to US military participation.

The 1980s: the age of conservatism The 1980s was a period of conservatism, symbolised by the election and two-term presidency of actor Ronald Reagan. The USA increased its military strength and was deeply involved in foreign crises. Steps forward in international politics were taken; in 1987, President Reagan met the Soviet leader Gorbachev to discuss issues such as human rights and to agree on a programme of nuclear arms control.

The 1990s: a superpower in the electronic age The collapse of the Soviet Bloc in 1991 made the USA the world’s sole superpower. In 1992, George Bush led a coalition claiming to represent a ‘new world order’ into the battle against Iraq in ‘The Gulf War’. During this decade the USA played the role of world policeman sending troops to Somalia in 1993, to Haiti in 1994 and to Bosnia in 1996. Violence in the USA hit the news headlines often with rioting in Los Angeles in 1992; a terrorist bomb in the World Trade Center in 1993; the bombing of the Federal Building in Oklahoma City in 1995. In relation to technology, the 1990s was truly the electronic age. The World Wide Web changed people’s lives. By 1998, 100 million people were online.

3

Find the following information: 1 the phenomenon that resulted in a young population in America in the 1960s 2 the name of the US President who was assassinated in 1963 3 the number of American soldiers fighting in Vietnam in 1969 4 the city where Martin Luther King was assassinated 5 the first person to walk on the Moon 6 the number of terms that President Reagan was elected 7 what the war against Iraq in 1992 was called 8 what happened at Oklahoma City in 1995.

PRODUCTION

4

Write a list of three pieces of technology which you wouldn’t be without. Explain why.

5

Choose one of the events mentioned on these pages. Look for more information on the Web and write a short article about it. Follow these guidelines: • say when and where the event happened • explained what effects it had.

357

The new millennium THE EARLY 2000s: the age of terrorism and war The new millennium presidential election in 2000 made history by being the most highly contested election in the country’s history. After five weeks George W. Bush was declared the 43rd US President. On September 11th 2001, four passenger aircraft were hijacked and crashed into the World Trade Center in New York, the US Defence Department at the Pentagon and a field in Pennsylvania. A month later, the USA led a series of air strikes against Afghanistan and then sent special forces to help opposition forces defeat the Taliban regime and find Osama Bin Laden, the man accused of organising the September 11th attacks. Soon after the attention turned to Baghdad and Iraq was accused of hiding weapons of mass destruction. This finally led to the Iraq war in 2003. In November 2004 George Bush was re-elected President with a record majority. His popularity fell in 2005, largely due to the ongoing conflict in Iraq. In the US mid-term elections in November 2006, the Democrats became the majority party in the Senate and the House of Representatives.

Barack Obama

Barack Hussein Obama was the .............................. (1) President of the United States and was the first .............................. (2) to hold the office. He was first elected President in November 2008 and was inaugurated on January 20th, 2009. Obama took over at a time of economic .............................. (3) and he, introduced measures aimed at helping 358

the economy .............................. (4) . He also directed the US military to develop plans to withdraw .............................. (5) from Iraq, issued orders to close the Guantanamo detention camp and reduced the amount of secrecy given to .............................. (6) . In June 2009, he delivered a speech at Cairo University in Egypt calling for a ‘new beginning’ in relations between the .............................. (7) world and the USA and promoting peace in the Middle East. He was awarded the .............................. (8) in October 2009. During his first term, Obama pushed for health care reform and signed the Patient Protection and Affordable Care Act in 2010. This reform is often called ‘ObamaCare’ and it is intended to help .............................. (9) be able to afford health insurance.

In foreign policy, Obama dramatically increased the number of US soldiers in Afghanistan, with the aim of training Afghan Security Forces and helping to create the conditions for the USA to transfer responsibility to the Afghans. He also controlled the ..............................  (10) that resulted in the death of Osama Bin Laden in 2011. Obama was re-elected president in November

2012.

During

his

.............................. (11) he continued the process of ending US involvement in Afghanistan. In 2014, he announced a timetable to withdraw all US soldiers from the country by the end of 2016. He also promoted domestic policies related to gun control and called for equality for all Americans, regardless of sexual preference.

Cultural context

ACTIVITIES WARM UP

1

Look at the picture on the top left of page 358 and answer the questions. • What does it represent? What impact have these events had on the USA and the world?

COMPREHENSION

2

Read page 358 and take turns to ask and answer questions about the 21st century in the USA. Use the prompts. • What / happen / 11th September 2001? • Who / be accused of / organising the September 11th attacks? • When / war in Iraq / start? • Why / George Bush’s popularity / fall? • When / Barack Obama / become President for the first time? • What / do during his first term? • What happen / in November 2012? • When / the US soldiers / withdraw from Afghanistan?

3

Listen to and complete the text about Barack Obama on page 358.

4

Read these pages and match dates and events. 1 2000 5 2006 2 2001 6 2008 3 2003 7 2009 4 2004 8 2012

>> The war in Iraq