Grammar for students to understand business English. Ч.4

Citation preview

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

ЛИПЕЦКИЙ КООПЕРАТИВНЫЙ ИНСТИТУТ (ФИЛИАЛ) ОБРАЗОВАТЕЛЬНОГО УЧРЕЖДЕНИЯ ВЫСШЕГО ПРОФЕССИОНАЛЬНОГО ОБРАЗОВАНИЯ «БЕЛГОРОДСКИЙ УНИВЕРСИТЕТ ПОТРЕБИТЕЛЬСКОЙ КООПЕРАЦИИ»

Л.Л. КУРЧЕНКО О.В. ЕРМОЛОВА

ENGLISH FOR BUSINESS COMMUNICATION Учебное пособие для экономических специальностей Часть IV

Липецк 2008 3

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

ББК 81.2 Англ.я 73 К 93

Рекомендовано к изданию кафедрой гуманитарно-социальных дисциплин Протокол № 2 от 26.10.2007

Автор: Курченко Лидия Леонидовна, старший преподаватель кафедры гуманитарно-социальных дисциплин Липецкого кооперативного института Ермолова Ольга Викторовна, к.п.н., старший преподаватель кафедры гуманитарно-социальных дисциплин Липецкого кооперативного института Рецензент: Кузовлев Владимир Петрович, к.п.н., профессор, начальник отдела АСУП издательства «Просвещение» К 93

Курченко Л.Л., Ермолова О.В., English for business communication. Учебное пособие для экономических специальностей. Часть 4. / Л.Л. Курченко, О.В.Ермолова, - Липецкий кооперативный институт (филиал) БУПК, Липецк 2008 – с.

Учебное пособие содержит тексты, упражнения в чтении и на использование языка для самостоятельной работы, ситуативные упражнения, ролевые игры. Пособие предназначено для студентов экономических специальностей.

© Издательство Липецкого кооперативного Института, 2008 4

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

CONTENTS Введение………………………….................................... ………4 Unit 4. Accounting I.Starting-up………………………………………………………….6 II.The bottom line ……………………………………………..…….9 III.Accounting ………………………………………………………10 IV.Bookkeepers, accountants, auditors and controllers …………….11 V.Assets, liabilities and the ballance sheet ………………………….13 VI.Accounts and ballance sheet …………………………………….15 VII.Government accounting ………………………………………..18 VIII.Effective government accounting …………………………….20 IX.Activity ………………………………………………………….21 Unit 5.Foreign Trade I.Starting-up …………………………………………………………28 II. Foreign Trade ……………………………………………………29 III.Types of payments in foreign trade …………………………….33 IV.Customs tariffs in Russia ………………………………………..36 V.International business …………………………………………….40 VI.Activity …………………………………………………………41 Unit 6.World organisations I.Starting-up ……………………………………………………….43 II.The World Trade Organisation ………………………………….44 III.International Monetary Fund:objectives and history …………..45 IV.The World Bank …………………………………………………46 V.Activity ………………………………………………………….47 Literature …………………………………………………….. …….49

5

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

Введение Цель данного пособия – способствовать овладению студентами современным экономическим мышлением, представить разнообразные формы работы с оригинальной, адаптированной литературой для извлечения полной, основной и частичной информации для расширения экономического кругозора, приобщения студентов к другим культурам. Важной задачей пособия является расширение использования индивидуальных возможностей студентов как в условиях аудиторной, так и внеаудиторной самостоятельной работы. Таким образом, индивидуализация и дифференциация обучения составляет основу методики обучения студентов, так как студент предстает перед преподавателем как индивид с определенным уровнем развития способностей, как субъект учебной деятельности, характеризующийся разной степенью рациональности приемов выполнения задач, как личность со своим опытом, интересами, эмоциями и чувствами. Пособие состоит из 6 циклов (Unit). Каждый цикл включает различные формы индивидуализации и дифференциации обучения студентов: тексты для работы в аудитории с преподавателем с извлечением полной информации («Read, say and discuss»); тексты, содержащие лексико-грамматические упражнения для самостоятельной работы в аудитории с целью извлечения основной или частичной информации («Read the text and do exercises on it in writing»); тексты, содержащие упражнения переводного характера, помогающие студентам реферировать, читать, аннотировать тексты по специальности («Read and do exercises in translation»). Выполнение упражнений в переводе предусматривает наличие знаний по грамматике в рамках обозначенных программой тем, а именно знание и умение распознавать и использовать: - конструкции, выражающие субъектно-предикативные отношения (с глаголами-связками, с глаголами, выражающими принадлежность); - грамматические явления, выражающие действие (в настоящем, прошлом, будущем) и характер его протекания; - средства определенности - неопределенности (артикль, местоимение), единичности - множественности предметов; интенсивности качества, порядка и количества предметов; - средства выражения определительных и определительнообстоятельственных отношений (конструкции с инфинитивом, причастием, герундием). 6

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

Тексты имеют информационно-повествовательный характер и разработаны на основе тем, предусмотренных программой; включают упражнения, развивающие у студентов навыки работы со словарем. Данное пособие включает лексические, функциональносмысловые таблицы, которые дают возможность каждому студенту в силу своих индивидуальных способностей изъясняться на английском языке, систематизировать и обобщать информацию по различным проблемам в повседневных ситуациях общения, профессиональной коммуникации. На основе таблиц организуется как индивидуальная, так и парная работа со студентами. Ролевые игры, дискуссии, творческие задания по созданию проектов компаний организуются после работы над текстом. Для работы с мотивированными студентами в пособие включены тексты и задания повышенной сложности со значком (  ). Работа каждого цикла завершается разделом, содержащим упражнения по обогащению словарного запаса, развитию навыков самостоятельной работы у студентов, расширению культурологического и экономического кругозора.

7

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

UNIT 4. ACCOUNTING I. STARTING-UP 1. Form all possible words with the help of the following suffexes. Translate the words. account

ability

tancy

ing

able

tant

2. Fill each of the gaps below with one appropriate form. accountancy, accountable, accounting, accountant, accountability. 1) Who are you ________ to in this organization. 2) ________ of local government to Parliament is great. 3) ________ usually specialize in making the most important financial reports. 4) The_______ of our company is on the second floor. 5) _________ is said to be the main language of accountants. 3. Match the words (1-13) connected with “accounting” with their definitions (a-m). Study them. a) a written statement of money paid or owed for goods or 1) auditor services b) to give a satisfactory record of money in one’s care 2) withdraw c) required or expected to give an explanation of one’s 3) report actions, expenditure 4) communicate d) a person whose profession is to keep or check financial accounts e) money gained in business esp the differences between the 5) entity amount earned and the amount spent f) a person who officially examines the accounts of a 6) transaction company g) a spoken or written account of smth heard, seen, done, 7) accountable studied h) a person whose job is keeping records of the financial 8) account for affairs of a business smth i) to obtain gradually or gather together an increasing 9) accountant number or quantity of smth 8

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

10) bookkeeper 11) profit 12) accumulate 13) account

j) a piece of business done /cheque /credit /cash transactions k) a thing with distinct and independent existence l) to move or take sb/smth back or away m) to make smth known

4. Getting paid 1) Study these notions. A) Shipping and billing When you ask to buy something, you order it, or place an order for it. When the goods are ready, they are dispatched or shipped to you. An invoice is a document asking for payment and showing the amount to pay. The activity of producing and sending invoices is invoicing or billing. B) Trade credit Vaclav is talking about his furniture business: 'Of course, we don't expect our business customers to pay immediately. They are given trade credit, a period of time before they have to pay, usually 30 or 60 days. If a customer orders a large quantity or pays within a particular time, we give them a discount, a reduction in the amount they have to pay. But with some customers, especially ones we haven't dealt with before, we ask them to pay upfront, before they receive the goods. Like all businesses, we have a credit policy, with payment terms: rules on when and how customers should pay. This is a part of controlling cash flow, the timing of payments coming into and going out of a business.' C) Accounts Jennifer and Kathleen are businesswomen. Jennifer has her own company in Britain and Kathleen owns one in the US.

9

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

The people and organizations we sell to are our customers or accounts. The most important ones are key accounts. I'm waiting to be paid by by one of my customers. These are my debtors. They owe me money.

The customers that I'm waiting to be paid by are my accounts receivable or receivables.

The suppliers and other organizations that I owe money to are my creditors. I must remember to pay tax to the Inland Revenue on time!

Jennifer

There are some companies that owe me money, but I get the feeling I'm never going to get paid: they're bad debts and I've written them off.

Kathleen

2. A) Put these events in the correct order 1. Messco dispatched the goods to Superinc. 2. Superinc ordered goods from Messco. 3. Superinc eventually settled the invoice. 4. Superinc did not pay the invoice on time. 5. Two weeks later, Superinc had still not received an invoice, making them think. Messco's invoicing was not very efficient. 6. Someone in accounts at Messco chased the invoice by phoning the accounts department at Superinc. 7. When the goods arrived, Superinc noticed there was no invoice and asked Messco to issue one. 8. Messco's accounts department raised an invoice and sent it to Superinc. B) Complete these sentences using expressions from В opposite. 1. ................ is a constant problem. I get materials from suppliers on a 30-day payment basis, bur I'm supplying large companies who pay me on a 60-day payment term. 2. With some types of new wine, you can pay a special price ........and wait for it to be delivered in about ten months’ time. 3. Small businesses complain that larger companies abuse………….by paying invoices too slowly. 4. We offer a two per cent .......................for payment within ten days. 5. We have a very strict……………: our .... are that everyone pays within 30 days. 10

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

C) Replace the underlined words with expressions from С opposite, using British English. My name's Saleem and I own a clothing company. Our (1) most important customers are department stores. Getting paid on time is very important and we have an employee whose job is to chase (2) people who owe us money. Of course, we pay (3) suppliers and other people we owe money ro as late as possible, except the (4) tax authorities, who we pay right on time! Luckily, I haven't had much of a problem with (5) people who don't pay at all, so we haven't had to (6) decide not to chase them any more. II. THE BOTTOM LINE 1. Study these notions. A) Accounts Hi, I’m Fiona and I’m an accountant. I work in Edinburgh for one of the big accountancy firms. We look at the financial records or accounts of a lot of companies. We work with the accountants of those companies, and the people who work under them: the bookkeepers. I like my profession: accountancy. Sometimes we act as auditors: specialist outside accountants who audit a company’s accounts, that is, we check them at the end of a particular period to see if they give a true and fair view (an accurate and complete picture). An audit can take several days, even for a fairly small company. When a company’s results are presented in a way that makes them look better than they really are, even if it follows the rules, it may be accused of creative accounting or window dressing. Of course, I never do this! The profession is called accountancy (BrE) or accounting (AmE). The activity is called accounting (BrE and AmE). B) Results ‘A firm reports its perfomance in a particluar period in its results. Results for a particular year are shown in the company’s annual report. This contains, among other things, a profit and loss account. In theory, if a company makes more money than it spends, it makes a profit. If not, it makes a loss. But it’s possible for a company to show a profit for a particular period because of the way it presents its activities under the rules of another. My firm operates in many countries and we are very aware of this! 11

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

A pre-tax profit or pre-tax loss is one before tax is calculated. An exceptional profit or loss is for something that is not normally repeated, for example the sale of a subsidiary company or the costs of restructing. A company’s gross profit is before charges like these are taken away; its net profit is afterwards. The final figure for profit or loss is what people call informally the bottom line. This is what they really worry about! If a company is making a loss, commentators may say that it is in the red. They may also use expressions with red ink, saying, for example, that a company is bleeding red ink or haemorrhaving red ink. BrE: profit and loss account AmE: income statement III. ACCOUNTING 1. Read the text, understand the contents. Accounting can be defined as the measuring and recording of all relevant financial data concerning a particular entity, that is business, government organization, etc. Financial reporting is the communicating of such information in an appropriately summarized form. In the UK such a summarized form is called «Accounts». In the USA it is called «Financial statements». These accounts or statements are communicated to interested parties both within and outside the organization. Financial reporting provides information that is useful to present potential investors, creditors and other users in making rational investment, credit and other economic decisions. Accounting is often referred to as the «language of business», and, as a direct result of the work of accountants and auditors. A wide range of different users of financial reporting are able to answer questions such as: How much profit did the company make last year? How much should I lend to the company? Is this company more successful than its competitors? How much can I withdraw from the company? Was last year improvement over the year before? Accountants are therefore those individuals specialized in the «art» of capturing the correct data and preparing the most meaningful financial reports from that data. They are «producers» of financial information, which is then made available to «consumers» such as owners and lenders. Accountants are assisted in their work by bookkeepers, who operate some form of accounting system, usually computerized, to help capture, 12

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

accumulate categories, summaries and report many thousands of transactions that affect an economic entity every year. 2. Use the word in bold to complete the second sentence so that it has a similar meaning to the first. 2.1 Accounting can be defined as the measuring and recording of all data. is sure Accounting __________ as the measuring and recording of all financial data. 2.2 Financial reporting provides information that is useful to present potential investors, creditors, other users in making economic decisions. provided Information ____________________ to present potential investors, creditors, other users in making economic decisions. 2.3 Accounting is often referred to as the “language of business”. is said Accounting __________________ to as the “language of business”. 2.4 Accountants are therefore those individuals specialized in the «art» of capturing the correct data and preparing the most meaningful financial reports from that data. specialized Accountants ____________ in the «art»of capturing the correct data and preparing the most meaningful financial reports from that data. 2.5 Accountants are assisted in their work by bookkeepers. assist Bookkeepers _________ accountants in their work. IV. BOOKKEEPERS, ACCOUNTANTS, AUDITORS AND CONTROLLERS You are going to read the article about bookkeepers, accountants and controllers. Eight sentences have been removed from the article. 1. First read the text and understand the contents. Pay no attention to gaps. Bookkeepers deal in taxes, cash flow, which include cash receipts and cash disbursements, sales, purchases and differend business transactions of the company. 1________________. At the end of a period, usually a month, the totals of each book of original entry are posted into the proper 13

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

page of the Ledger.2_________________. On the basis of all the totals of each account in the Ledger, the bookkeepers prepare a Trial Balance. Trial Balance is usually drawn up every quarter. The accountant’s responsibility is to analyse and interpret the data in the Ledger and the Trial Balance. 3__________________________________. No expansion or reorganization is planned without the help of the accountant. New product and advertising campaigns are also prepared with the help of the accountant. The work of accountants is rather sophisticated. 4________________________________. Certified accountants in England are called chartered accountants. In the USA the certified accountants are called certified public accountants. 5___________________. Junior employees in large companies, for example, offer practice accounting and then take the examination. The chief accounting officer of a large company is the Controller, or Comptroller. Controllers are responsible for measuring the company’s performance. 6____________________________. This position is very close to the top executives of the company. 2. Then choose from the text sentences (A-G) the one which fits best each gap (1-6). A. The Ledger shows all the expenditures and all the earnings of the company. B. Many accountants have special certificates after they pass examinations to the institute of accountants. C. The accountant is to determine the ways in which the business may grow in the future. D. They interpret the results of the operations, plan and recommend future actions. E. These auditors are internal auditors. F. But it is not necessary to have a certificate to practice accounting. G. Bookkeepers first record all the appropriate figures-in the books of original entry or journals. 3. Answer the following questions in a written form. Say what these professions are involved in. — What do bookkeepers deal in? — What is an accountant responsible for? — What are controllers engaged in? 4.Make up questions beginning with the given words, not changing the contents of the first one. 14

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

— What does Ledger show? Could you tell me __________. — How does the bookkeeper prepare a Trial Balance? Could you let me know _________. — Is expansion or reorganization planned without the help of the accountant? Can you find out _________. — Do accountants always take the examination? I’d like to know _________. — Is the position of a controller very close to the top executives of the company? Do you think _________. — What way do auditors review financial records? I wonder _________.

V.

ASSETS, LIABILITIES AND THE BALANCE SHEET

1. Study these notions. A) Assets CURRENT ASSETS FIXED ASSETS INTANGIBLE ASSETS

An asset is something that has value, or the power to earn money. These include: current assets: money in the bank, investments that can easily be turned into money,money that customers owe, stocks of goods that are going to be sold. fixed assets: equipment, machinery, buildings and land. intangible assets: things which you cannot see. For example, goodwill: a company’s good reputation with existing customers, and brands: established brands have the power to earn money. If a company is sold as a going concern, it has value as a profitmaking operation, or one that could make a profit. B) Depreciation 15

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

Joana Cassidy is head of IT (Information Technology) in a publishing company: ‘Assets such as machinery and equipment lose value over time because they wear out, or are no longer up-to-date. This is called depreciation or amortization. For example, when we buy new computers, we depreciate them or amortize them over a very short period, usually three years, and a charge for this is shown in the financial records: the value of the equipment is written down each year and written off completely at the end. The value of assets at any one time is its book value. This isn’t necessarily the amount that is could be sold for at that time. For example, land or buildings may be worth more than shown it the accounts, because they have increased in value. But computers could only be sold for less than book value.’ C) Liabilities Liabilities are a company’s debts to suppliers, lenders, the tax authorities, etc. Debts that have to be paid within a year are current liabilities, and those payable in more than a year are long-term liabilities, for example bank loans. D) Balance sheet A company’s balance sheet gives a picture of its assets at the end of a particular period, usually the 12-month period of its financial year. This is not necessarily from January to December. 2. Chose the best word from the brackets ( ) to fill the gap in each sentence. RETAIL BUSINESS FOR SALE: £125,000 1. Newsagent’s shop for sale as a going (buseness/ concern/ .................. . outler) 2. ............... assets include shop, fittings and a new delivery van. 3. The estimated ............... value of these assets is £ 120,000. 4. ................. assets include stock worth £ 15,000. 16

(Permanent/ Firm/ Fixed) (book/ invoice/ paper) (Current/ Present/ Actual)

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

5. The most important ............... asset is our good reputation. 6. The .................. of our customers is included in the asking price.

(invisible/ invaluable/ intangible) (goodness/ goodwill/ goodbye)

3. Complete each of the numbered sentences (1-5) by writing one word in the gap. The first letter has been given to help you. Over time the equipment that a company owns loses value. 1. For example, computers and other IT equipment _d_ _ _ _ _ _ _ very quickly. 2. When we do our accounts, we _a_ _ _ _ _ them over three years. 3. So the value of a $6,000 PC is _w_ _ _ _ _ _ down by a third in the first year. 4. The depreciation of $2,000 is shown as a _c_ _ _ _ _ in our financial records. 5. Depreciation of all assets is shown on the _b_ _ _ _ _ sheet at the end of the year. 4. Choose the best word from the brackets ( ) to fill the gap. 1. Our .................... include a € 12,000 tax bill and the € 8,000 we owe our suppliers. (assets/ debtors/ liabilities) 2. Our .................... are valuable because they have good customer recognition. (brands/ types/ makes) 3. Company cars depreciate quickly. We write them ................. completely after five years. (up/ out/ off) 4. Our ..................... year runs from the 1st of June to the 31st of May. (financial/ revenue/ capital) 5. Our only ...................... liability is a € 10,000 bank loan to be paid off over five years. (current/ long-term/ fixed)

VI. ACCOUNTS AND BALANCE SHEETS 1. Read the text and understand the contents. From the Trial Balance, prepared by the bookkeeper, the accountant creates a Profit and Loss Statement and Balance Sheet. 17

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

A Profit and Loss Statement or a Profit and Loss Account, shows the income or loss of the company for the period. The Profit and Loss Statement is made only on the basis of those accounts of the Ledger which affect the profit and loss of the company. The profit and Loss Statement may contain the following items:  Sales Profit after tax  Trading profit Dividends  Depreciation Profit retained  Rent received Earnings per share  Interest paid  Profit before tax  Tax The other accounts of the Ledger which reflect the assets, liabilities, and capital of the firm make up a Balance Sheet. This shows the net worth or book value of the company. A Balance Sheet made up for Johnson and Co., a specimen company, may appear as follows: BALANCE SHEET Johnson and Co. 31 December, 199x Assets Cash $5500 Petty cash fund 100 Accounts Receivable 750 Notes Receivable 100 Inventory Merchandise on hand 2080 Furniture and Fixtures 2750 Total Assets $11280 Liabilities Accounts payable 800 Notes payable 500 Total liabilities 1300 Capital Johnson Capital at the beginning 8000 Profit for the period 1980 Total capital 9980 Total capital and liabilities $11280 18

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

The two sides of the Balance Sheet that is Total Assets and Total Capital and Liabilities are always to be equal. 2. Read the text again about accounts and balance sheets. For statements 1-7 choose the correct answer A, B, C or D. 2.1 It is quite clear from the text that Trial Balance includes__________. a) profit and balance sheet b) statements and total assets c) liabilities and capital d) profit and loss statement and balance sheet 2.2 The accountant will never forget to include____________ into Profit and Loss statement. a) merchandise on hand b) tax c) total capital d) two sides of the balance sheet 2.3 A Profit or Loss Account shows___________. a) inventory b) petty cash fund c) dividends d) income and loss 2.4 On the basis of all the totals of each account the bookkeeper prepares_________ . a) accountant’s report b) trial balance c) auditor’s report d) balance sheet 2.5 ________ is said to be the most important thing in work of a book bookkeeper. a) account b) Ledger c) Balance sheet d) capital of the firm

19

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

3. Find in the text and write down words which have the following meaning: a) a debt, financial obligation b) a thing, esp. property owned by a person, company, that has value and can be used or sold to debts c) wealth and property that can be used to produce more wealth d) a regular payment made for the use of land, buildings, machinery e) a part or portion of a larger amount which is divided among several or many people f) the condition that exists when two opposites are equal or in correct proportions g) advantage, benefit h) a book in which a bank, a business firm records its financial accounts. 4. Fill each of the gaps below with the words listed in an appropriate form. ledger, capital, balance, interests, rents, assets, liabilities, share. 1. His __________ included shares in the company and a house in France. 2. A business is in need of a substantional injection of new __________ . 3. _________ are going up again. 4. They have to minimize his tax __________ . 5. We each pay an equal _________ in the profits. 6. This newspaper maintains a good ____________ . 7. Deside what is in the ____________ of shareholders. 8. He was asked to inspect the sales ______________.

VII. GOVERNMENT ACCOUNTING 1. Read the text and understand the contents. 1. A number of concrete events have contributed to the change in attitude that permitted this transformation of government accounting. First, over the years, the size and complexity of government operations have increased as the government has become engaged in procuring complex machinery and using it for a variety of purposes. This development created the need for a system that would facilitate the 20

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

maintenance of records of assets as well as data for the computation of fixed and variable costs. 2. Second, economic management has begun to make more demands on the type and timely supply of accounting information. In particular, changes in the domestic economy, such as inflation, hyperinflation, or recession, require adjustments in historical data for analytical purposes. 3. Third, accounting data became necessary to measure the performance of organizations so as to serve the immediate purpose of policy formulation and the broader purpose of accountability. Accountability has evolved from being limited to the observance of laws and the regulations to being concerned with the use of allotted resources and the effectiveness with which those resources are used. Fourth, accounting has to address not only immediate liabilities but also those that would be redeemed at a later stage. It became imperative to strengthen accounting system so that they would be able to measure and disclose these liabilities. 4. Fifth, the role of external aid and related conditionally required the adoption of internationally accepted government standards for maintenance of accounts. As most of the aid was used for specific commercial or quasi-commercial purposes, it required the introduction of the commercial type of accounting in those areas of government that were funded by foreign aid. Similar insistence on standards by regional organizations, such as the European Union, also contributed to major changes in the accounting practices of member countries as well as those aspiring to become members. 2. Match the following questions (1-5) with answers (a-e). 2.1 Why has the government become engaged in procuring complex machinery and using it for a variety of purposes? 2.2 What do changes in the domestic economy require? 2.3 Is accounting data necessary for government accounting? 2.4 Does accounting have to address only immediate liabilities? 2.5 What did external aid require from the government accounting? a) they require adjustments in historical data for analytical purposes. b) it has also to adress those liabilities that would be at a later stage. c) the size and complexity of government operations have increased. d) it required the introduction of commercial type of accounting. e) accounting data became necessary to measure the performance of organizations. 21

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

3. Match the words in italic with words that could replace them from (a-e). 1) A number of concrete events have contributed to the change in attitude that permitted this a) requirements transformation of government accounting. 2) This development created the need for a system that would facilitate the maintenance of records of b) brought into assets as well as data for the computation of fixed and being variable costs. 3) Economic management has begun to make more demands on the type and timely supply of accounting c) reinforce information. 4) It became imperative to strengthen accounting systems so that they would be able to measure and d) donated disclose these liabilities. 5) Similar insistence on standards by regional organizations, such as the European Union, also contributed to major changes in the accounting e) affair practices of member countries as well as those aspiring to become members. 4. Write down sentences containing: a) gerund (§ 1, 3); b) infinitive (§2) with “to”. Translate them into Russian. VIII. EFFECTIVE GOVERNMENT ACCOUNTING Read the text and think of one word that best fits each space. Performed, account, data, standards, balance, differences, accounting, control, entities, flow, benefits, levels, latter. The need of central agencies tend to be different from those of the spending agencies or the legislature. Essentially, these 1___________ reflect basic distinctions between macro and micromanagement. 2_________ is the common instrument of both. Standards may thus not always be uniform and may, in certain cases, take into 3___________ the unique features of an agency. The standards must represent a 4____________ between what is needed and what is practicable. If the 5_____________ is substantially different from the former, a phased implementation program may be appropriate. In some cases, the existing 6___________may need to be 22

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

replaced or modified, and the need as well as the utility of the proposed standards should be dearly demonstrable. The standards should be dear and viable. Above all, there should be a balance between the costs incurred in developing the standards and the expected 7_____________ . The standards are not substitutes for operations, nor do they consist of forms designed for the purpose of recording 8_________ . They provide the rationale, the philosophy, and the objective as well as the meaning for the regular accounting activity in a public entity. The applicability of the standards to government and its 9____________ raises two issues. These standards may not necessarily apply to all 10______________of government. The increasing decentralization of responsibilities implies that most of the talks that were hitherto 11_____________ by the central government would be performed at the provincial, regional, state, and local levels. But a Major part of the funding for these tasks may continue to 12__________from the central government in the form of either shared revenues or block grants. In either event, the lack of congruence between resources and responsibilities make it imperative to establish standards for operational 13____________and accounting system at all levels. IX. ACTIVITY 1. What do you Know About Money? 1. Why do public companies publish annual reports? 2. Who uses the information in a profit and loss account? 3. A balance sheet shows total assets and total liabilities: Which term refers to what the company owns and which refers to the company’s debts? 4. Do the directors or the shareholders own the company? 5. A dividend is the share of the ______________ that the shareholders receive. 6. Which word means the total sum of money which is coming into the company? 7. Profit minus the costs associated with preparing the goods for sale is called gross/net profit. 8. The total profit without subtracting costs and overheads is called gross/net profit.

23

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

2. Bookkeeping as Part of Accounting Cycle Read the text and do a written translation. For management of any company to be efficient, extensive and accurate information concerning receipts and payments, assets and liabilities, depreciation of assets and other data about company status are required. Such information being obtained mainly from different records, additional funds and time should be invested in bookkeeping and accounting system. In general, accounting and bookkeeping mean identifying, measuring, recording economic information about any business, bookkeeping being considered the preliminary stage and pan of the larger field of accounting. The task of bookkeeping is to ensure the record-keeping aspect of accounting and therefore to provide the data to which accounting principles are applied in the preparation of financial statements. Bookkeeping provides the basic accounting data by systematical recording such day-to-day financial information as income from the sale of products or services, expenses of business operations such as the cost of the goods sold and overhead expenses’ such as a rent, wages, salaries. Accounting principles determine which financial events and transactions should be recorded in the bookkeeper’s books. The analysis and interpretation of these records is the primary function of accounting. The various financial statements produced by accountants then provide managers with the basis for future financial planning and control, and provide other interested parties (investors, the government) with useful information about the company. Modern accounting system is considered to be a seven-step cycle. The first three steps fall the bookkeeping function, such as: 1) the systematic recording of financial transactions; 2) the transferring of the amounts from various journals to general ledger (also called “posting step”); 3) the drawing up of the trial balance. Record keeping of companies is based on a double-entry system, due to which each transaction is recorded on the basis of its dual impact on the company’s financial position. To make a complete bookkeeping record of every transaction in a journal, one should consider interrelated aspect of every transaction, and entries must be made in different accounts to keep the ins (receipts) and outs (payments) balanced. A typical account is known to have two sides: the items on the left side are called debits, while the items on the right side are credits. 24

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

Thus, double-entry bookkeeping doesn’t mean that the same transaction is entered twice, it means that the same amount of money is always debited to one account and credited to another account, each record having its own effect on the whole financial structure of the company. Certain accounts are increased with debits and decreased with credits, while other accounts are increased with credits and decreased with debits. In the second step of the accounting cycle, the amounts from the various journals are usually monthly transferred to the company’s general Ledger – a procedure called posting. Posting data to the ledgers is followed by listing the balances of all the accounts and calculating whether the sum of all the debit balances agrees with the sum of all the credit balances. This procedure known as the drawing up of a trial balance and those that follow it usually take place at the end of the fiscal year. By making a trial balance, the record-keeping accuracy can be checked. The trial balance having been successfully prepared, the bookkeeping portion of the accounting cycle is completed. The double-entry system of bookkeeping enables every company to determine at any time the value of each item that is owned, how much of this value belongs to creditors, the total profit and how much belongs to the business clear of debt. Thus, one advantage of the double-entry system is that its information is complete enough to be used as the basis for making business decisions. Another advantage is that errors are readily detected, since the system is based on equations that must always be in balance. 3. Test 1 3.1. For each sentence, choose the best word to fill the gap from the alternatives given. Put a circle around the letter, A, B or C, of the word you choose. 1. This company was set up as a small family …………… in 1977. A. empire B. corporation C. business 2. Sally Green is on the board of ……………… . A. directors B. founders C. managers 3. Tom East is the ……………….. executive in charge of Marketing. A. chief B. head C. Senior 4. Last year we made ……………. of £ 1.5 million. A. liabilities B. profits C. finances 25

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

5. The corporate …………… we try to present is of a business that truly values its customers. A. image B. logo C. ladder 6. We …………. about 20 people in our London office and most have been with us for years. A. hire B. employ C. appoint 7. Each year, we …………….. two or three graduates as trainee managers. A. recruit B. qualify C. situate 8. We pay reasonable salaries and offer excellent fringe ............... . A. perks B. tips C. benefits 9. Next month we are going to .................. two new products. A. forecast B. innovate C. launch 10. We have carried out a lot of market .................. over the past year. A. focus B. research C. development 3.2. Write the abbreviations below in words. One word has been given in each case to help you. 1. HR H _ _ _ _ _ Resources 2. IT I _ _ _ _ _ _ Technology 3. CEO Chief E _ _ _ _ O _ _ _ _ 4. CAD C _ _ _ _ Assisted D _ _ _ _ _ 5. RSI Repetitive S _ _ _ _ I _ _ _ _ _ 6. PLS P _ _ _ _ _ L _ _ _ _ _ _ _ Company 3.3. Match each sentence beginning (1-5) with the correct ending. Write the letter (a-f) of the ending you choose in the box below. There is one extra ending that you don’t have to use. 1) The company has equal a) I was offered early retirement opportunities 2) Please send your application b) with a covering letter, by Monday form, 9th May. 3) The health and safety inspection c) policy to fight discrimination. noticed 4) Last month, I achieved my sales d) candidates had to do psychometric target tests. 5) When the firm downsized, e) that the fire extinguisher was missing. f) so I got a performance-related bonus. 26

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

4. Test 2 4.1. For each sentence, choose the best word to fill the gap from the alternatives given. Put a circle around the letter, A, B or C, of the word you choose. 1. We do our printing in-house but we .................. delivery to a small, local company. A. supply B. source C. subcontract 2. We have set up quality ....................... as part of our TQM system. A. circles B. lines C. corners 3. We need a ................... market economy where the government doesn’t try to control prices. A. base B. low C. free 4. Until last year they .................. the market but now they face some stiff competition. A. penetrated B. dominated C. segmented 5. Our new .................. protects our eggs on the way to the shops and it looks good on the shelves. A. production B. packaging C. promotion 6. If you want to save some money buy ................ products rather the top brands. A. generic B. durable C. consumer 7. If you pay cash for this TV we will give you a 5% ................... . A. hike B. sale C. discount 8. Our prices are low because we cut out the ................ and sell directly from the factory. A. middleman B. marketer C. manufactures 9. Customers who use our .................. card get one point for every pound they spend. A. franchise B. sponsorship C. loyalty 10. We had nearly 5,000 ................... to our website last week. A. hits B. visitors C. views 11. We can increase our profit ................. by reducing our overheads. A. account B. margin C. costs 12. We’ve made a loss for the past three years but we should break ..................... this year. A. even B. up C. Our 27

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

4.2. Match each sentence beginning (1-5) with the correct ending. Write the letter (a-f) of the ending you choose in the box below. There is one extra ending that you don’t have to use. 1) Our only long-term liability is a) profit of $ 1.2 million for last year. 2) Syntectic PLS reported a pre- b) the learning curve has been very tax steep. 3) We fell behind with our c) we can sell the stock in our repayments so warehouse. 4) Next time I’m going to trade d) they started undercutting us. up to 5) Now we’ve got the product e) a £ 5,000 bank loan over three right, but years. 6) We’ll solve our cash flow f) they sold the house we’d put up as problem collateral. g) Something at the hign end or the range. 4. Succes and failure. Translate from English into Russian. A) Cash mountains and surpluses Predaco is a successful company. Over the years, it has distributed some profits or earnings to shareholders, but it has also kept profits in the form of retained earnings and built up its cash reserves; it is sitting on a cash pile or cash mountain. These reserves may be used for investment or to make acquisitions: to buy other companies. B) Debt and debt problems Here are some expressions that can be used to talk about company's debts, or country's foreign debts:

debt

repayment servicing

when a company repays its debt and/or interest on it; 'debt repayment’ describes a particular amount repaid burden a company’s debt, especially when considered as a problem crisis when a company has serious difficulty repaying its rescheduling when a company persuades ledgers to change restructuring repayments dates and terms default when a company fails to make a debt repayment 28

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

Note: reschedule to

a debt restructure

repay to default on service

a debt

C) Turnarounds and bailouts Doomco is in financial trouble and it is being described as sick, ailing and troubled. They've called in a company doctor, Susan James, an expert in turning round companies. There may be a turnaround and Doomco may recover. But if there is no recovery, the company may collapse completely. Ms James is currently looking for another company to bail out Doomco by buying it. This would be a bailout. D) Bankruptcy If a company is in serious financial difficulty, it has to take certain legal steps. In the US, it may ask a court to give it time to reorganize by filing for bankruptcy-protection from creditors, the people it owes money to. In Britain, a company that is insolvent, i.e. unable to pay its debts, may go into administration, under the management of an outside specialist called an administrator. If the company cannot be saved, it goes into liquidation or into receivership. Receivers are specialists who sell the company's assets and pay out what they can to creditors. When this happens, a company is wound up, and it ceases trading. A company in difficulty that cannot be saved goes bankrupt.

29

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

UNIT 5.FOREIGN TRADE I. STARTING - UP 1) Match the words with their definitions. There is one extra word (1 - 16 ) that you don’t need. 1 Competition 2 Leader 3 Follower 4 Niche 5 Challenge 6 Advantage 7 Compete 8 Specialize 9 Relations l0 Consumption 11 Export 12 Import 13 Labour 14 Resources

a) to test the ability of smb; to stimulate b) to try to win sth by defeating others who are trying to do the same c) a supply of smth that a company, an organization or an individual has and can use to increase wealth d) a condition or circumstance that puts one in a favourable position compared to other people e) a person or thing that leads f) work, especially hard physical work g) an opportunity in business h) to bring goods, services, ideas from a foreign country into one’s own country i) activity in which people compete j) a supporter of a particular person, cause, belief k) links, contacts or dealings between people, group or countries 1) the using up of food, energy, resources m) to become an expert in a particular subject branch; to give a particular attention to a product n) to sell and transport goods to a foreign country

2) The following sentences contain phrases connected with the word "competition" Put one of the given words in each of the sentences. relations, import, niche, leader, advantage, challenge, competition, consumption, competing, resources, labour, specializing, exported. 1. We are in with several other companies for the contract. 2. Gas and oil always increases in cold weather. 3. The job doesn't really him. 4. Several companies are with each other to gain the contract. 30

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

5. He has the of a steady job. 6. The company lacks the financial to invest in new technology. 7. This country is a world in wealth care. 8. relations between workers and employers leave much to be desired. 9. A company should find a in the market. 10. There is a shop in this district in hand-made chocolate. 11. The country has to most of its raw materials. 12. Currently only 5% of their output is . 13. Friendly exist between our two countries. II. FOREIGN TRADE 1) Read the text and understand contents. What is now called international trade has existed for thousands of years. Long before there were nations with specific boundaries. Foreign trade means the exchange of goods and services between nations, but speaking strictly in economic terms, international trade today is not between nations. It is between producers and consumers or between producers in different parts of the globe. Nations do not trade, only economic units such as agricultural, industrial, and service enterprises can participate in trade. Goods can be defined as finished products, as intermediate goods used in producing other goods, or as agricultural products and foodstuffs. International trade enables a nation to specialize in those goods it can produce most cheaply and efficiently and it is one of the greatest advantages of trade. On the other hand, trade also enables a country to consume more than it can produce if it depends only on its own resources. Finally, trade expands the potential market for the goods of a particular economy. Trade has always been the major force behind the economic relations among nations. Different aspects of international trade and its role in the domestic economy are known to have been developed by many famous economists. International trade began to assume' its present form with the establishment of nation-states in the 17th and 18th centuries, new theories of economics, in particular of international trade, having appeared during this period. In 1776 the Scottish economist Adam Smith, in “The Wealth of Nations”, proposed that specialization in production leads to increased 31

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

output and in order to meet a constantly growing demand for goods it is necessary that a country's scarce resources be allocated efficiently. According to Smith's theory, it is essential that a country trading internationally should specialize in those goods in which it has an absolute advantage — that is, the ones it can produce more cheaply and efficiently than its trading partners can. Exporting a portion of those goods, the country can in turn import those that its trading partners produce more cheaply. To prove his theory Adam Smith used the example of Portuguese wine in contrast to English wool. Half a century later, having been modified by the English economist David Ricardo, the theory of international trade is still accepted by most modern economists. In line with the principle of comparative advantage it is important that a country should gain from trading certain goods even though its trading partners can produce those goods more cheaply. The comparative advantage is supposed to be realized if each trading partner has a product that will bring a better price in another country than it will at home. If each country specializes in producing the goods in which it has a comparative advantage, more goods are produced, and the wealth of both buying and selling nations increases. Trade based on comparative advantage still exists: France and Italy are known for their wines, and Switzerland maintains a reputation for fine watches. Alongside this kind of trade, an exchange based on a competitive advantage began late in the 19th century. Several countries in Europe and North America having reached a fairly advanced stage of industrialization, competitive advantage began to play a more important role in trade. With relatively similar economies countries could start competing for customers in each other's home markets. Whereas comparative advantage is based on location, competitive advantage must be earned by product quality and customer acceptance. For example, German manufacturers sell cars in the United States, and American automakers sell cars in Germany, both countries as well as Japanese automakers competing for customers throughout Europe and in Latin America. Thus, international trade leads to more efficient and increased world production, allows countries to consume a larger and more diverse amount of goods, expands the number of potential markets in which a country can sell its goods. The increased international demand for goods results in greater production and more extensive use of raw materials and labour, which means the growth of domestic employment. Competition from international trade can also force domestic firms to become more efficient through modernization and innovation. 32

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

It is obvious that within each economy the importance of foreign trade varies. Some nations export only to expand their domestic market or to aid economically depressed sectors within the domestic economy. Other nations depend on trade for a large part of their national income and it is often important for them to develop import of manufactured goods in order to supply the ones for domestic consumption. In recent years foreign trade has also been considered as a means to promote growth within a nation's economy. Developing countries and international organizations have increasingly emphasized such trade. 2. For statements 1 - 10 chose the best answer from А, В, С or D. 2.1. The theory of international trade is used by a) nations with specific boundaries b) economic units c) enterprises d) by most modern economists 2.2. Adam Smith was the first to propose a) exchange of goods b) trading partners c) specialization in production d) potential markets 2.3. Comparative advantage implies a) to bring a better price to the producer b) to increase world productions c) to rise the growth of domestic employment d) to expand the domestic market 2.4 Nowadays foreign trade is said a) to aid economically depressed sectors in the world b) to be a means to promote growth within a nation's economy c) to produce cheap goods d) to increase agricultural products and foodstuffs 2.5 Comparative advantage is based on a) new theories of economics b) on country's scarce resources c) location d) national income 2.6. Comparative advantage appeared in a) 1776 b) 1786 c) 17 and 18 centuries 33

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

d) the 19 century 2.7. Long ago the main task of foreign trade was to a) expand trade relations b) accept specialization c) exchange goods and services between nations f) develop similar economies 2.8. Competitive advantage depends on a) location b) home markets c) product quality and customer acceptance d) similar economies 2.9. Comparative advantage was modified in a) France and Italy b) North America c) Switzerland d) Scotland 2.10. To compete in the international market domestic firms must have a) efficient economy b) modernized economy c) innovative economy d) all of these 3) Find a word or phrase in the text that means: a) a large amount of money property b) A condition or circumstances that puts one in a favorable position compared to other people c) involving comparison or comparing d) involving people competing against each other e) the exchange of goods and services for money or other goods f) a place or position g) of on inside a particular country, not foreign or international 4) Choose a sentence that reflects the main idea.  Trade enables a country to consume more.  Trade expands the potential market for the goods of a particular country.  Nations depend on trade for a large part of their national income.  International trade leads to more officient and increased world production, expands the number of potential markets in which a country 34

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

can sell its goods, allows countries to consume a larger and more diverse amount of goods. III. TYPES OF PAYMENTS IN FOREIGN TRADE. 1) Read the first part of the text and say what types of payments are used in Foreign Trade. I. Payment of goods supplied in the local trade is a rather simple matter. It is made either in advance or within a sensible short period after delivery. If a buyer fails to pay, there comes legal action after which payment can be enforced. The matter is different in foreign trade because a great deal of time is spent on correspondence, despatch and delivery. It is here that banks play a fundamental part. Their services have to be paid for, but are not expensive and always necessary - the bank comes into each transaction at this or that stage. Payments in foreign trade are usually made by: 1. banker's transfer; 2. bill of exchange; 3. letter of credit. As well as in the local trade, payment may be made a) in advance; b) on open account. Payments in advance are used 1) when a buyer is in urgent need; 2) when a buyer is unknown to a seller; 3) in the case of a single isolated transaction. The method of payment in these cases will probably be by banker's draft or banker's transfer. Open account terms are granted by a seller to a buyer of unquestionable reputation in whom he has complete confidence, e.g. regular customers, agents or distributors. In these cases payment is made quarterly by bill of exchange or banker's transfer. II 1) Read this part of the text. Use the words given in capitals at the end of each line to form a world that fits in the space in the same line. The banker's transfer is a mere transference of money 1. Buy from the bank account of 1. a in his own country 2. Sell to the bank account of the 2. in the seller's 3. Necessity country. It is only3. for the customer to send a 4. Instruct letter of 4._________ to his bank or use a 5. 5. Specially form. The transfer is executed at 6. rates of 6. Currency exchange and subject to any exchange control 7. of 7. Regulate the countries concerned. 35

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

2) Read this part of the text. Look carefully at each line. Tick (v) the lines which are correct and underline the unnecessary. The bill of exchange (B/E) is a written of order from a ____of_____ creditor to a debtor to pay on demand or at a specified date to a stated sum of money to a person named on the bill, or to his an order. The bill is drawn by the creditor on the debtor, and is sent to the debtor or his agent to pay from or accept (to acknowledge the debt). The debtor accepts it through the signing his name on the front of the bill, together with the date. The bill becomes now legally binding', and the acceptor must meet it at or before the due date. Failure to meet the bill on the due to date will result in total discredit for the creditor, and legal action ____________ can follow. An unpaid bill is called "dishonoured", and ____________ the creditor can protest it, which gives to him the right to prosecute the debtor. 1) Read this part of the text and decide which answer А, В, С, or D fits best each space. The letter of credit (L/C) is the 1 generally used method 2 payment in the export trade. It starts with the buyer 3 instructs his bank to issue the L/C for the amount of the purchase and in favour of the seller. The buyer's bank 4 this instruction, a special 5 form containing full details of the transaction, to its agent (a bank cooperating with it) in the seller's country. On 6 the instruction, the agent bank informs the seller about the credit. The seller can now 7 out the buyer's order, knowing that when he 8 so, money will be paid at once by the agent bank. The buyer is equally secure, because the agent bank will pay 9 his behalf only if the conditions of the transaction 10 completely by the seller. A L/C may be paid to the seller not immediately upon execution of the order, if there 11 an agreement 12 the seller and the buyer the agent bank can accept a bill of exchange 13 by the seller on the agent bank. The buyer gets credit and the action is absolutely safe for the seller, who 14 discount the bill for ready cash if he needs it.

36

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

a

с

b

d 1 more most much many 2 in by of for 3 who what which that 4 is sending sends to send sent 5 being printed printing printed to print 6 being received to receive received receiving 7 to carry carry carried carrying 8 does has done had done have done 9 on in by from 10 executed are ...executed are ... executing execute 11 is Will be are has 12 besides apart from between among 13 having drawn to draw drawing drawn 14 can may should ought 4. Translate into English: 1) Одним из наиболее часто употребляемых способов оплаты во внешнеторговых операциях является аккредитив. 2) Владелец векселя может продать его банку по номинальной стоимости. 3) Оплата товара отечественным поставщикам производится обычно или посредством предоплаты или в течение некоторого разумного периода времени после поставки товара. 4) Вы можете оплатить данный товар по текущему курсу обмена валюты. 5) Условия оплаты по открытому счету предоставляются по покупателю с безупречной репутацией. 6) Номинальная стоимость; денежное обеспечение; индоссировать документ (сделать передаточную надпись); пущенный в обращение вексель; дисконтировать вексель (снижать учетный процент при досрочной оплате) 5. Fill in the required prepositions: 1) Payment goods either advance or period delivery. 2) There is little time lost delivery. 37

the home trade is made a reasonably short correspondence and

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

3) A bill exchange is an order written form addressed one person another to pay demand one demand or a named date a certain sum money __ or his order. 4) The banker's transfer is carried current rates exchange. 5) This transaction is simple and may be speeded cabled instructions if desired. 6) The L/C is ideal individual transactions or series, it gives protection both the seller and the buyer. 6. Read the text. Look carefully at each line. Use the words in capitaes to form a new word that fits in tha spaces in the same line. One of the 1 features of the bill of exchange is 1 Importance that it is 2 . It means that it can be used by the 2 Negotiate holder to pay his own debts. To do this, the 3 of 3 Hold the B/E must endorse it, i.e. sign his name on the bill before 4 Hand it in to the next holder. The 4 of the bill can also 5 Own sell it to the bank, who will pay face value, less interest: this is 6 Count called to 5 a bill. The other way to 7 Usage a bill is to leave it as security for a loan. 8 Know It is due to its free negotiability that the B/E is 9 Pay to be a useful means of 6 in foreign trade. 10 Success Undoubtedly, its 7________operating depends on confidence and trust. Before handling bills each company's status and 11 Individuality reputation are thoroughly checked and taken into account. IV. CUSTOMS TARIFFS IN RUSSIA 1. Read the text and answer the questions below the text. In every country import-export rates are supposed to fulfil four functions: - to protect home producers from foreign competition in order to increase their own competitiveness in the domestic market; - to limit exporting products in which there is a shortage in this country and to regulate foreign trade transactions for political interests; - to supply local consumers, both legal entities and individuals, with products which are not produced in this country or produced insufficiently; - to provide the state budget with additional financial resources. 38

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

In order to put these issues into practice, the Russian government changed its import rates in 1994. The change of import duties' affects mostly the status of foodstuff imports. Inflation and the subsequent price increases energy, equipment and other materials make storage, processing the products and their packing very expensive. Foreign suppliers have the opportunity to sell products at lower prices, though sometimes their products are of lower quality. Food intervention of imported goods has led to the reduction in the production of some agricultural products inside Russia. So the change of customs tariffs is based on an objective necessity to protect local commodity producers and does not conflict with the General Agreement on Tariffs and Trade. Customs duties are levied only on those types of products which are produced in sufficient quantities. The level of imposition by import rates was increased at an average of five to seven percent. Formely, the import rates were, calculated as a percentage of the customs value of the imported goods. At the present time there is a universal order for introducing rates as an absolute sum for the imported unit (kilogram, liter, piece) value. For some types of agricultural products, mainly fruits and vegetables, seasonal duties with limited duration are in force. Apart from the duties on foodstuffs the duties on some types of industrial products have also been increased. This step of the government is related to the fact that during the last several years Russian industry has experienced difficulties connected with the success of sale of imported cars, electronics, and some other types of industrial import. Duty rates have been increased on different transport vehicles, on completing articles for assembling electronics and computers, on consumer electronics and on metal-cutting machines. The minimum duty sums per one item for cars depend now on the engine volume and the year of production. The regulations for granting a delay in payment for import duties have also been changed. Previously, the delay was permitted for a period of no more than thirty days. This delay was granted to the importer with no additional fees or expenses. Under the new regulations, this period is prolonged up to sixty days, but a certain interest is collected throughout the whole duration of the delay. Export duties in Russia were set up in 1992. At that time world prices were much higher than internal ones and export was highly profitable, though it seriously hurt the level of domestic consumption. Nowadays, in relation to the increase in domestic prices, the existence of export duties 39

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

negatively affects the ability for long-term export deals. So export duties are supposed to be cancelled in future. Answer the following questions: 1) When did the Russian government change import duties rates? 2) What did this change mostly effect? 3) What was the result of inflation? 4) How does food intervention influence the home agriculture? 5) What are customs duties levied on? 6) What do the duty sums for cars depend on? 2. Look through the text again and find: a) ing-forms and infinitives; d) translate sentences including them into Russian. 3. Use the word in bold to complete the second sentence so that it has a similar meaning to the first. a) Export duties in Russia were set up in 1992. They _______in 1992 b) Russian government changed its import rates in 1994. Import rates__________________________________in 1994. c) Apart from the duties on foodstuffs the duties on some types of industrial products have also been increased. increased The government____________________________apart from the duties on foodstuffs. d) Foreign suppliers have the opportunity to sell products at lower prices. don't miss the opportunity Foreign suppliers _____________________________________at lower prices. e) The change of import duties affects mostly the status of foodstuff imports. is sure The status of foodstuff imports_______________________________the change of import duties. f) Food intervention of imported goods has led to the reduction in the production of some agricultural products inside Russia. that It was____________________________of some agricultural products inside Russia. 40

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

4. Read the text again and think of words which best fits each space. 1. All taxes, customs duties and other charges levied connection the performance this Contract Russia are to be paid the Sellers and those levied outside Russia are to be paid the Buyers. 2. The simplest form a tariff is one which consists a single column levying the same rate duty all imports. 3. addition customs duties proper, many countries levy extra charges one kind or another. The most common form is a surtax charged as a percentage the duty. 4. The internal taxes are a different kind. They are collected imports many countries. These are usually levied the same rate as similar products domestic origin. Included this category are sales taxes, excise taxes, V.A.T., turnover and transaction taxes, and the like. 5. Value added tax (VAT) Read the text and say what VAT is; Value Added Tax (VAT) is a Government tax. At present the standard VAT rate is 17,5 %. Everyone in Britain must pay VAT on almost everything they buy. VAT is usually incorporated in the price. Visitors to Britain can reclaim the tax when they leave Britain and present the appropriate documents issued by she shop. Usually when they buy rather expensive things like furs, gold, hi-fi goods etc., they should wonder if the shop operates the VAT scheme. 6. Give the English equivalents of: Hалоговая ставка; таможенные сборы; взимать налог (3 варианта); дополнительное налогообложение (2 варианта); внутренний (федеральный) налог; налог на продажу; акцизный сбор; налог с оборота; налог на добавленную стоимость; взимать определенный процент от стоимости товара за хранение дополнительные финансовые ресурсы; ставки импортной пошлины; продовольственные промышленные товары; оборудование; хранение, переработка и упаковка товаров, таможенные тарифы; ввозная таможенная пошлина; уровень налогообложения; стоимость единицы 41

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

товара; сезонные пошлины; комплектующие; уровень внутреннего потребления; в среднем. 7. Retell the text according to the following plan: 1) The functions of import-export rates. 2) Customs tariffs as an objective necessity to protect a local market. 3) The increase of import rates. 4) The problem of export duties. V. INTERNATIONAL BUSINESS 1. Read the text and choose a suitable word that fits best each space International business is 1 in importance. The United States is 2 the biggest exporter and the biggest importer in the world. About 25,000 U.S. firms are engaged in some types of international business activity. The concept of international business includes the concepts of balance of trade (the relationship 3 exports and imports) and balance of payments (the difference between inward and outward cash flows). Countries are usually better off if they 4 in certain products or commercial activities. A country has 5 absolute advantage in marketing a product if it is in a monopolistic position or produces the item at the lowest cost. It has a comparative advantage if it can supply the product more efficiently or at 6 cost than it can supply other products. Some countries refuse 7 because they want to be self-sufficient, particularly in certain strategic areas. The five levels of involvement in world business are casual or accidental exporting, active exporting, foreign licensing, overseas marketing by the firm, and foreign production and foreign marketing. The three primary obstacles to world business 8 economic, social, and cultural obstacles; tariffs and trade restrictions; and political and legal obstacles. There 9 a movement toward multinational economic integration in many parts of 10 world. Three basic formats exist: the free trade area, the customs union, and the common market or economic union. Multinational corporations are those operating internationally-have become11 dominant in foreign markets that in 12 countries they are now the object of close scrutiny. Companies 13 abroad should act fairly and responsibly. 42

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

1 2 3 4 5 6 7 8 9 10 11 12 13

a is grown both beside well specialize an low specializing are will be -----------------such any operating

b growing either apart from specialized a lower specialize is is an such as several operated

c

d

grows neither between has specialized the lowest specializes have Have been the so In great deal of being operated

grew every among specialize ----------------lowers to specialize has has been a The same as plenty operate

VI ACTIVITIES 1. International Relations A summit meeting 1. Put each of the following words or phrases in its correct place in the passage below. summit meeting news

breakdown

leader item spokesperson

conference preliminary settle

hold agenda

The American President and the Russian (a) have announced their intention to (b)_______________ a (c) in Vienna next month. The two countries have already had (d) talks and decided on an (e) for the meeting. The main (f) _________ will be a discussion about the nuclear arms situation. At a (g) ________ he d in Washington yesterday a government (h) ______________ told journalists that the unfortunate (i)____ of last year's talks between the two countries had been caused by disagreements over arms. He said the Vienna meeting would be a chance for the two nations to (j) ______ their differences. Diplomatic relations 43

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

2. Put each of the following words or phrases in its correct place in the passage below. diplomatic relations ambassadors split in protest at

resume

embassies

links break off

Neighboring countries A and B had always had very good, close relations, but in 1992, owing to a disagreement over the exact location of the border between them, a (a) began to develop. Finally, in 1994, (b) _ military activity by country B near the border, country A announced its intention to (c) (d) with country B. Both countries withdrew their (e) _ __ and the (f; in the two countries were closed down, it is hoped that a solution will be found and that it will be possible to (g) normal trade, cultural and diplomatic (h) as soon as possible 3 Put one of the following words in each space in the sentences below. in for over of on at about by (a) The French leader hasn't yet decided _____ a date the meeting. (b) At a summit meeting each country is represented its head of government. (c) The announcement was made ________ a news conference Moscow. (d) ___________________ The ambassadors had a discussion the peace treaty (e)The breakdown the talks surprised everyone. (f) The American ambassador walked out of the meeting protest __________________________________ the Russian speech (g) A spokeswoman said there was some disagreement the agenda __________________________ the meeting

44

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

UNIT 6. WORLD ORGANISATIONS I. STARTING – UP 1. Match the words with their definitions №

words

1 Organization 2 3 4

Tariff Negotiations Transition

5

Currency

6 7

Duty Customs

8

Monetary

9 Regulations 10 Total 11 Contribute 12 Consultation 13 Cooperation

definitions a) to give smth, esp money on goods, to help a person or an organization b) a tax paid on imports c) a rule or restriction made by an authority b) a tax paid on imports e) the process or period of changing from one state or condition to another f) working together for a common purpose g) of money or currency h) the taxes that must be paid to the government on goods brought in from other countries I) a tax charged on particular goods esp on imports j) a system of money used in a country k) discussion aimed at reaching an agreement. l) a meeting for discussion. m) the activity of organizing smth.

2) Fill in gaps with the most suitable word. One word is extra which you don’t need. Transition, customs, regulations, negotiations, organization, contribute, monetary, currency, total, consultations. 1. She is brilliant but her work lacks . 2. Top tevel on trade matters between the American and Chinese delegations took place yesterday. 3. A settlement was reached after lengthy . 4. The firm made a profit of $ 200000. 5. This organization is engaged in of banking and tax laws. 6. They supported a single European . 7. The have seized large quantifies of smuggled heroin. 8. The unit of Japan is yen. 45

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

9. Will the country be able to make a peaceful democracy? 10. Everyone should if they possibly can.

to

II. THE WORLD TRADE ORGANISATION 1. Read the text and decide which answer A, B, C or D best fits each gap The World Trade Organisation (WTO),1 is the successor of the General Agreement on Tariffs and Trade (GATT), 2 on I January 1995, and is the legal and institutional basis of the multilateral trading system. It provides the principal contractual obligations 3 how governments frame and implement domestic trade legislation and regulations. The essential functions of the WTO 4 : - administering and implementing the multilateral and plurilateral trade agreements which together make up the WTO; -5 as a forum for multilateral trade negotiations; - seeking to resolve trade disputes; - overseeing national trade policies; - cooperating 6 other international institutions involved in global economic policy-making. In accordance with the «most favoured nation» (MFN) clause, members 7 grant to the products of other members no less favourable treatment than that accorded to the products of 8 other country. Quotas are generally outlawed, but tariffs or customs duties are legal in the WTO. The WTO extends previous GATT rules that laid down the basis on which governments could impose compensating duties. The WTO Agreement agriculture is designed to provide on 9 fairness in farm trade. The WTO agreement 10 intellectual property will improve conditions of competition. And 11 agreement will do the same for trade in services. GATT provisions encouraging industrialized countries 12 to assist trade of developing nations are maintained in the WTO. Developing countries are given transition periods to adjust to the 13 WTO provisions. Least-developed countries are given 14 more flexibility for their goods. The WTO authorities are: the Ministerial Conference, the General Council, three Councils: for Trade in Services for Trade-Related Aspects 46

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

of intellectual property rights four Committees: on Trade and Development, on Balance of Payments, on Trade and Environment, on Budget, Finance and Administration. The Secretariat is located to 15 Geneva

a 1 what 2 establishes 3 having determined 4 have 5 to act 6 at 7 dare to 8 no 9 to increase 10 at 11 other 12 to assist 13 difficulter 14 same 15 the

b whose was established

c which established

determined

to determine

d who has been established determining

is acting by have to some having increased on the other to assisting

are being acted for are to any increasing

were acts with is to several increased

with another to have assisted most difficultest so a

for others being assisted

more difficult even ----------

a more difficult such an

III. The European Economic Community and the European Union Read the text and think of one word which best fits each gap. You will have to use some of the words more than once. Currency, to, establishment, of, the, member, on, customs, with, established, or, services, objective, among, in, economic. The European Economic Community, the Common Market, or the EEC was in 1957 by the Treaty of Rome. The original six member countries of the Community were France, West Germany, Belgium, 47

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

Italy, Luxembourg and Netherlands. Then a few other countries joined the Community. Britain, together the Irish Republic and Denmark, joined the EEC on 1st January, 1973. The Community formed an enormous trading area of almost 250 million people, and accounted for two fifths the world's trade. The membership allowed imports to enter member countries either free of duty or at lower duties. All member countries contributed а common budget for certain purposes, based on relative total output of goods and , or gross national product. Under the Community regulations, people of countries were allowed to enter freely another member state to travel or to work there. The of the original six members of the Treaty of Rome was to create a process leading towards the goal of unification. This political purpose was spelled out in 1969 in Hague where the objective of «paving the way for a united Europe» was recognised and was realfirmed in 1983 in the Stuttgart Solemn Declaration; and in 1986 in the Single European Act, member states undertook «to transform relations as a whole their states into a European Union, and stipulated that the European Communities and European Political Cooperation would have as their objectives to contribute together to ma king concrete progress towards European Unity». The process creating an economic involvement and dependence that would go far to meet most member states ultimate goal of European Unity was realised 1992 with the signing at Maastricht of the Treaty on European Union, which set as its objective the establishment of «a European Union... a new stage in the process of creating an ever closer union among the peoples of Europe». Provision was made for the Union become a reality through, inter alia, the establishment of and monetary union, including the creation of a single (the euro) and the introduction of Union citizenship (and eventually removal of frontiers, under the Shengen System). IV. International Monetary Fund: objectives and history 1. First read the text and answer the questions : a) What is the purpose of IMF? b) What are the functions of IMF? 48

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

The purpose of the International Monetary Fund (IMF) is to promote international monetary cooperation through a permanent institution that provides the machinery for consultation and collaboration on international monetary problems. The function of the IMF is to facilitate the expansion and balanced growth of international trade, to promote orderly and stable foreign currency exchange market, and to contribute to balance of payments adjustment. The IMF monitors members' macroeconomic policies makes financial resources available to them in times of balance of payments difficulties, and provides them with technical assistance. Much of the IMF's work is centered on annual consultations with each member country to ensure that its national policies in the area of economic growth, price stability, financial conditions, and exchange rates take into account their consequences for the world economy and avoid unfair exchange policies. To ensure compliance with these basic tenets. the Fund is empowered to exercise firm surveillance over the exchange rate policies of member countries. 2) Read the text again and find in it words which mean the following: 1 the quality or state of being stable 2 to the progress of smth or support smth 3 a reason for doing smth; a function of smth 4 a sum of money saved or made available for a particular purpose 5 a measurement of how fast or how many times happens in relating to 6 smth else 7 doing something or working together for a common purpose 8 careful watch kept on sb suspected of doing wrong help V. The World Bank First Read the text, paying no attention to gaps, and understand the contents. Consult a dictionary. The world bank is a sister institution to the IMF and was set up at the same time. 1______________. While IMF exists to provide short-term loans, the purpose of the World Bank is to provide long term loans to assist economic development. The World Bank is the world's foremost intergovernmental organization concerned with the external financing of the economic growth of developing countries. 2______________. 49

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

Before recommending a Bank loan, the staff of the Bank must be reasonably satisfied that the productivity of the borrowing country will be increased and that the prospects for repayment are good. A country must be judged creditworthy. Engineering investigations are frequently carried out to determine the probable relation of a proposed project to benefits and costs. The Bank has shifted somewhat away from project lending for example a dam or a highway or a port); it has become concerned with education and other human services, the environment, and structural adjustment loans, the modification of governmental policies that are thought to have impeded long-run growth. 3________________. Recently it has acceded to the requests of the American secretary of the treasury to help ease the huge, outstanding, largely commercial-bank debt. Voting power in the Bank is determined by the size of each member nation's subscription. 4_____________. Ultimate power rests with the Board of Governors of the Bank. The governors meet annually in September. The dayto-day affairs of the Bank are determined by executive directors who live permanently in Washington, D.C. They hire a president, who hires a staff. 5________________. Read the missing sentences (a-e) then read the text again. Choose the sentence which fits best each gap. a) By tradition, rather that law, the President of the Bank is an American, usually a banker, proposed by the president of the United States. b) The Bank has also paid increasing attention to the evaluation of previous lending. c) Subscriptions are based on a formula that takes into account such variables as the value of each nations foreign trade and its total output. d) It has now some 150 member countries. e) The official title of the Institution is the International Bank for Reconstruction and Development.

50

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

LITERATURE 1.Market Leader.Intermediate Business Course.D.Cotton, D.Kent,2001. 2.Countdown. To First Certificate. Oxford. M.Duckworth and K.Gude. 2004. 3.Business Vocabulary in Use. Professional English. Bill Mascull, 2004. Cambridge. 4.Test your Business Vocabulary in Use. Tricia Aspinall and G.Bethell. Cambridge University, 2004. 5.А.Д.Пароятникова,

М.Ю.Полевая.

Английский

язык

для

гуманитарных вузов. 6.Right Word, Wrong Word. L.G.Alexander,2001. 7.Intermediate Vocabulary. B.J.Thomas,2000. 8.В.П.Кузовлев, Н.А.Лапа. English Student’s book, 2000. 9.Oxford Advanced Learner’s Dictionary,1998. 10.English

Grammar:

reference

and

Н.И.Петряева,

practice.

Г.А.Глебова, Белгород, 2006. 11.Английский

язык.

Методические

указания

для

студентов-

заочников неязыковых специальностей. Белгород, 1998. 12.Шевелева С.А., Стогов В.Е. Основы экономики и бизнеса: Учебное пособие по англ. языку.- М.: Культура и спорт, ЮНИТИ, 2002.

51

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

Учебное издание КУРЧЕНКО ЛИДИЯ ЛЕОНИДОВНА ЕРМОЛОВА ОЛЬГА ВИКТОРОВНА ENGLISH FOR BUSINESS COMMUNICATION Учебное пособие для экономических специальностей Технический редактор Губанова И.А. Компьютерная верстка Кузнецова Г.В. Гарнитура Таймс. Типография. Усл.печ.л. 3,1. Тираж 100 экз. Издательство Липецкого кооперативного института 398002, г.Липецк, ул. Зегеля, 25а

52