mgimo.ru for... · web viewa few weeks ago the economist invited readers who enjoy our big mac...

ФЕДЕРАЛЬНОЕ ГОСУДАРСТВЕННОЕ АВТОНОМНОЕ ОБРАЗОВАТЕЛЬНОЕ УЧРЕЖДЕНИЕ ВЫСШЕГО ОБРАЗОВАНИЯ

МОСКОВСКИЙ ГОСУДАРСТВЕННЫЙ ИНСТИТУТ МЕЖДУНАРОДНЫХ ОТНОШЕНИЙ (УНИВЕРСИТЕТ) МИД

РОССИИ

КАФЕДРА АНГЛИЙСКОГО ЯЗЫКА № 4

E.Э. Иванова, А.М. Мальцева

АНГЛИЙСКИЙ ЯЗЫК ДЛЯ ИЗУЧАЮЩИХ ЭКОНОМИКУ ПРЕДПРИНИМАТЕЛЬСТВА.

ВВОДНЫЙ КУРС

ENGLISH FOR BUSINESS ECONOMICS: FIRST STEPS TO PROFESSIONAL LITERACY

УЧЕБНИК

УРОВЕНЬ В – 1

Под редакцией старшего преподавателя А.М. Мальцевой

Издательство «МГИМО-Университет»

2017

Рецензенты:

О.В. Десятова, кандидат экономических наук, доцент кафедры английского языка №4 МГИМО (У) МИД России

Л.В. Коровина, кандидат экономических наук, доцент кафедры английского языка №2 МГИМО (У) МИД России

Е.Э. Иванова, А.М. Мальцева

Английский язык для изучающих экономику предпринимательства. Вводный курс = English for Business Economics: first steps to professional literacy: Уровень В1, Моск. гос. ин-т междунар.отношений (ун-т) М-ва иностр. Дел Рос. Федерации, каф. Англ. Яз. №4 – М.: МГИМО-Университет, 2017. -

Данный учебник нацелен на формирование и развитие общих и предметных (деловой английский язык) компетенций как у студентов бакалавриата, специализирующихся в области бизнеса и делового администрирования, так и у представителей широкого круга лиц, желающих расширить свой словарный запас специальной лексикой и совершенствовать переводческие компетенции, а также навыки аналитического чтения текстов по экономической тематике и обсуждения актуальных проблем экономики предпринимательства. В основу учебника положен междисциплинарный подход, предполагающий использование и актуализацию знаний, полученных в ходе изучения базовых дисциплин.

2

Contents

ПРЕДИСЛОВИЕ.............................................................................................................6

UNIT ONE.......................................................................................................................13

LEAD-IN.......................................................................................................................13

LISTENING AND VIEWING......................................................................................21

READING AND SPEAKING I....................................................................................22

READING AND SPEAKING II...................................................................................28

READING AND SPEAKING III..................................................................................33

VOCABULARY PRACTICE.......................................................................................35

TRANSLATION SKILLS............................................................................................45

TEXTS FOR ORAL TRANSLATION.........................................................................58

TEXTS FOR TRANSLATION IN WRITING.............................................................69

CONSOLIDATION......................................................................................................73

VOCABULARY CHECK.............................................................................................76

TOPICAL VOCABULARY UNIT I............................................................................77

UNIT TWO......................................................................................................................82

LEAD-IN.......................................................................................................................82

LISTENING AND VIEWING......................................................................................92

READING AND SPEAKING I....................................................................................93

READING AND SPEAKING II...................................................................................95

READING AND SPEAKING III..................................................................................99

VOCABULARY PRACTICE.....................................................................................104

TRANSLATION SKILLS..........................................................................................111

TEXTS FOR ORAL TRANSLATION.......................................................................113

TEXTS FOR TRANSLATION IN WRITING...........................................................125

CONSOLIDATION....................................................................................................130

VOCABULARY CHECK...........................................................................................132

TOPICAL VOCABULARY UNIT II.........................................................................134

UNIT THREE................................................................................................................137

LEAD-IN.....................................................................................................................137

LISTENING AND VIEWING....................................................................................143

3

READING AND SPEAKING I..................................................................................144

READING AND SPEAKING II.................................................................................148

READING AND SPEAKING III................................................................................151





CONSOLIDATION....................................................................................................173


REVISION (UNITS I-III).............................................................................................175

TOPICAL VOCABULARY UNIT III........................................................................177

UNIT FOUR...................................................................................................................180

LEAD-IN.....................................................................................................................180









CONSOLIDATION....................................................................................................219


TOPICAL VOCABULARY UNIT IV........................................................................223

UNIT FIVE....................................................................................................................227

LEAD-IN.....................................................................................................................227







4



CONSOLIDATION....................................................................................................274


REVISION (UNITS IV-V)...........................................................................................277

TOPICAL VOCABULARY UNIT V.........................................................................279

PRACTICE TESTS.......................................................................................................282

5

ПРЕДИСЛОВИЕУчебник «Английский язык для изучающих экономику

предпринимательства. Вводный курс.» (English for Business Economics: first steps to

professional literacy) предназначен для студентов бакалавриата, начинающих

изучать язык профессии по направлениям «Экономика», «Торговое дело»,

«Менеджмент и деловое администрирование» и др., а также представителей

компаний, финансовых и других организаций, овладевающих профессиональными

иноязычными компетенциями и повышающих квалификацию в области языка

специальности, преподавателей ВУЗов для аудиторной и внеаудиторной работы со

студентами.

В соответствии с Программой подготовки бакалавра по дисциплине

"Иностранный язык (английский)" целью данного издания является комплексное

развитие лингвистических и профессиональных компетенций учащихся в

ситуациях делового межкультурного общения в соответствии с европейским

уровнем владения языками В 1. Для достижения этой цели ставятся конкретные

задачи по развитию частных компетенций, сформулированные в следующих

разделах Программы:

Модуль «Введение в экономический перевод - 3»Цели и задачи:

умение читать и понимать литературу по специальности;

умение ориентироваться в современных тенденциях развития глобальных

экономических процессов и национальных хозяйств отдельных стран мира (на

макро- и микроуровнях);

умение выполнять письменный перевод информационно-аналитических статей

экономической тематики с английского языка на русский язык;

умение выполнять устный перевод (с листа) небольших текстов экономической

тематики и материалов по специальности с английского языка на русский;

воспринимать и обрабатывать в соответствии с поставленной целью

статистическую информацию на английском языке, полученную из печатных,

аудиовизуальных, источников;

способность кратко излагать содержание текста;

6

умение рассуждать на профессиональные темы на английском языке, излагать

свою точку зрения.

Предметно-лексические темы:

1. Базовые экономические показатели: понятие макро- и микроэкономики; типы

экономических показателей; определение ключевых показателей: ВВП, объем

производства, уровень безработицы, темпы инфляции и др.; основные фазы

экономического цикла (Key economic indicators).

2. Три сектора экономики: горно-добывающая промышленность и сельское

хозяйство; обрабатывающая промышленность; сектор услуг (отраслевой

анализ); третья промышленная революция; аутсорсинг и оффшоринг:

современные тенденции. (Three sectors of the economy).

3. Рынок труда и безработица; понятие и основные характеристики; виды

безработицы; анализ уровня безработицы среди различных групп населения

(Labour market and unemployment).

Учебные материалы:

1. Иванова Е.Э., Мальцева А.М. Английский язык для изучающих экономику

предпринимательства: вводный курс. (English for Business Economics: first

steps to professional literacy)

2. Электронные и Интернет ресурсы и словари: www . multitran . ru ,

www . wordspy . com , www . woordhunt . com , www . yourdictionary . com ,

www . glossary . com и др.

3. Материалы периодической печати англоязычной прессы с сайтов www . ft . com ,

www . economist . com , www . bbc . uk , www . cnn . com , www . businessweek . com и др.

4. Аудиовизуальные материалы сайта www . Investopedia . com по соответствующей

тематике.

Виды упражнений и заданий:

1. Подробное ознакомление с текстом с последующими ответами на конкретные

вопросы.

2. Оценка соответствия предложенных утверждений содержанию текстового

материала (TRUE/FALSE).

3. Упражнения на развитие переводческой догадки (определение значения слова

из контекста; интерпретация заголовка до ознакомления с содержанием).

7

4. Нахождение русских и английских эквивалентов.

5. Парафраз, объяснение словосочетаний или предложений на английском языке.

6. Заполнение пропусков словами и словосочетаниями.

7. Определение значения слов по их дефиниции.

8. Письменный и устный перевод текстов с английского языка на русский.

9. Устный перевод предложений, содержащих лексико-грамматические

переводческие трудности.

10. Письменный перевод предложений с русского языка на английский для

закрепления активного вокабуляра и переводческих конструкций.

Модуль «Введение в экономический перевод - 4»Цели и задачи:

умение читать и понимать литературу по специальности;

расширение терминологии языка профессии за счет новой тематической

лексики, устойчивых сочетаний;

умение выполнять письменные переводы и устный перевод с листа текстов по

профессиональной тематике и других материалов с английского языка на

русский;

совершенствование навыков аудирования на новом предметно-лексическом

материале;

способность анализировать, производить компрессию и синтез текстовой и

цифровой информации из англоязычных источников и использовать ее в

самостоятельно выполняемых заданиях (докладах и сообщениях на заданную

тему);

умение проводить анализ текста, в том числе, определять и формулировать

тему и основную мысль текста; делить текст на структурные части; выделять

главные суждения и сопутствующие доказательства; определять авторскую

позицию;

умение задавать проблемные вопросы к тексту и комментировать поставленные

проблемы;

умение вести дискуссию в рамках профессиональной тематики;

способность самостоятельно получать знания и решать разнообразные задачи,

принимать нестандартные решения.

8

Предметно-лексические темы:

1. Международная торговля, в том числе, ее роль и значение в развитии мировой

экономики; факторы, определяющие международную специализацию страны;

понятие и структура торгового баланса страны; современные тенденции

развития торговли; важнейшие проблемы торговой политики: протекционизм и

свободная торговля. (International trade).

2. Структура рынка и конкуренция; понятие и сущность конкуренции;

классификация рыночных структур; современные методы конкурентной

борьбы; характеристика участников рынка с точки зрения их доли и влияния на

рынке (Market structure and competition).

Учебные материалы:

1. Иванова Е.Э., Мальцева А.М. Английский язык для изучающих экономику

предпринимательства: первые шаги постижения профессиональной

грамотности. (English for Business Economics: first steps to professional literacy)

2. Электронные и Интернет ресурсы и словари: www . multitran . ru ,

www . wordspy . com , www . woordhunt . com , www . yourdictionary . com ,

www . glossary . com и др.

3. Материалы периодической печати англоязычной прессы с сайтов www . ft . com ,

www . economist . com , www . bbc . uk , www . cnn . com , www . businessweek . com и др.

4. Аудиовизуальные материалы сайта www . Investopedia . com по соответствующей

тематике.

Виды упражнений и заданий:

1. Подробное ознакомление с текстом с последующими ответами на конкретные

вопросы.

2. Оценка соответствия предложенных утверждений содержанию текстового

материала (TRUE/FALSE).

3. Постановка проблемных вопросов к содержанию текстов.

4. Определение темы и основной мысли текста. Анализ структуры и выделение

смысловых частей.

5. Упражнения на развитие переводческой догадки (определение значения слова

из контекста; интерпретация заголовка до ознакомления с содержанием).

6. Нахождение русских и английских эквивалентов.

9

7. Парафраз, объяснение словосочетаний или предложений на английском языке.

8. Заполнение пропусков словами и словосочетаниями.

9. Определение значения слов по их дефиниции.

10. Письменный и устный перевод текстов с английского языка на русский.

11. Устный перевод предложений, содержащих лексико-грамматические

переводческие трудности.

12. Письменный перевод предложений с русского языка на английский для

закрепления активного вокабуляра и переводческих конструкций.

В процессе обучения приобретаемые языковые компетенции используются

для углубления профессиональных знаний, получаемых в курсах профилирующих

дисциплин, формируются такие личностные качества как самостоятельность в

развитии познавательных интересов, логика и критическое аналитическое

мышление, языковая догадка и навыки самостоятельной работы и работы в

команде.

В учебнике использованы статьи, опубликованные в английских и

американских периодических изданиях.

В соответствии со ст.1274 Гражданского кодекса Российской Федерации

авторы учебника использовали в своей работе правомерно обнародованные

произведения и отрывки из них в качестве иллюстраций (в широком смысле) в

объёме, оправданном поставленной целью или методикой, с обязательным

указанием имени автора, произведение которого используется, и источника

заимствования.

Курс создан на междисциплинарной основе, позволяющей увязать

структуру и содержание учебника с теоретическими знаниями, полученными в

ходе изучения таких дисциплин, как «Экономическая теория», «Мировая

экономика», «МЭО» и др. Приобретаемые языковые знания могут быть

использованы для совершенствования общекультурных, профессиональных,

коммуникативных и информационно-аналитических компетенций, а также

формирования системных компетенций посредством изучения научной

литературы, чтения англоязычной периодики, работы с аутентичными аудио- и

видеоматериалами.

10

Процесс обучения построен на основе таких базовых методических

принципов, как аутентичность и актуальность учебных материалов;

академическая автономия студентов; «открытость содержания образования».

Все уроки (Units) в настоящем учебнике имеют единую структуру, что

позволяет обучающимся лучше ориентироваться в материале, и состоят из

следующих разделов:

1. Введение в тему (Lead-in), предназначенное для самостоятельного изучения

студентами с последующим обсуждением в аудитории.

2. В разделе «Аудирование» (Listening and Viewing) приведены ссылки на аудио-

и видеоматериалы, имеющиеся в сети в свободном доступе, позволяющие более

наглядно представить отдельные аспекты учебного материала и

способствующие лучшему усвоению тематической лексики.

3. Раздел «Чтение и говорение» (Reading and Speaking), содержащий текстовой

материал, освещающий различные аспекты изучаемой темы, и задания на

проверку понимания содержания, обсуждения прочитанного и закрепления

активного вокабуляра.

4. Раздел «Отработка активного вокабуляра» (Vocabulary Practice) представлен

упражнениями на перевод с английского языка на русский предложений,

содержащих многозначные экономические термины, или заполнение пропусков

подходящей по смыслу лексической единицей с целью усвоения и активизации

новой терминологии. Данные упражнения могут быть использованы как для

самостоятельной работы студентов, так и для работы в аудитории.

5. В разделе «Навыки перевода» (Translation Skills) представлены как упражнения

на перевод с английского языка на русский предложений, содержащих лексико-

грамматические трудности, с предварительным объяснением приемов перевода

устойчивых конструкций и конкретных примеров, а также тексты разной

степени сложности для устного и письменного перевода по тематике урока,

сопровождающиеся комментариями к отдельным терминам и глоссарием,

призванными облегчить процесс работы над переводом.

6. Перевод предложений с русского языка на английский (Vocabulary Check) и

раздел «Закрепление изученного» (Consolidation), включающий задания на

проверку усвоения ранее изученных лексико-грамматических трудностей,

являются завершающим этапом работы над каждым уроком.

11

7. Каждый урок снабжен списком активной лексики тематического характера

(Topical Vocabulary), подлежащей усвоению.

Работа с материалом учебника условно разделяется на несколько этапов,

при этом объем заданий и выбор упражнений для аудиторной и домашней работы

может варьироваться в зависимости от общей языковой подготовки студентов

группы и конкретных целей и задач. Вводная статья, а также тексты из раздела

«Чтение и говорение» и задания к ним предлагаются студентам для

самостоятельной проработки с последующей проверкой выполнения и

обсуждением в аудитории. Активный вокабуляр после вводной статьи составляет

основу тематического лексического минимума, который должен быть усвоен

учащимися. Упражнения к текстам рассчитаны на тренировку и закрепление

активной лексики, проверку понимания и умения кратко изложить основное

содержание текста. Отработку активного вокабуляра рекомендуется начинать с

задания Pronounce the following, что позволит избежать типичных ошибок в

произношении. Упражнения на подбор лексических соответствий могут быть

использованы как для самостоятельной проработки учащимися, так и для

фронтального опроса преподавателем с целью проверки усвоения или в словарных

диктантах. Упражнения на закрепление лексики (Vocabulary Practice) могут

выполняться как с листа в аудитории (заполнение пропусков, подбор дефиниций),

так и с предварительной подготовкой в качестве домашнего задания

(контекстуальный перевод многозначных терминов). Работа над разделом «Навыки

перевода» предполагает самостоятельное изучение студентами правил перевода

наиболее распространенных лексико-грамматических конструкций,

представляющих переводческие трудности, и их практическое применение в

упражнениях, проверка выполнения которых осуществляется в аудитории.

Переводы текстов в домашних заданиях всегда выполняются в письменном виде с

последующей проверкой и обсуждением в классе. Студенты учатся пользоваться

специализированными словарями, умению ориентироваться в контекстуальном

значении слов и понятий. Дополнительно на уроке переводятся статьи с листа для

контроля усвоения переводческих навыков и лексики.

12

Контрольно-измерительные материалы из раздела Practice Tests и критерии

оценки могут быть использованы для проверки усвоения изученного как

самостоятельно учащимися, так и под контролем преподавателя.

Учебник содержит 5 уроков (Units) и рассчитан на два академических

семестра (68 аудиторных часов и внеаудиторную работу). На изучение каждой

темы отводится в среднем 5 занятий. По окончании курса предполагается

формирование устных и письменных иноязычных компетенций на уровне В 1 по

общеевропейской шкале компетенций.

Авторы

13

UNIT ONE

KEY ECONOMIC INDICATORS

LEAD-IN

Read the text and answer the questions that follow.

Every week there are dozens of economic surveys and indicators released.

Economic indicators measure macro-economic variables that enable economists to judge

whether economic performance has improved or deteriorated. Tracking these indicators

is especially valuable fоr policy makers to determine not only where the economy is

going, but how fast it's getting there and whether it is time for them to intervene.

Economic indicators can have a huge impact on the stock market; therefore, knowing

how to interpret and analyze them is important for all investors. As a student learning

about business, and later as a business manager, you need to understand the nature of the

economy and the terminology that is used to describe it.

Economic indicators (also referred to as numbers) show what is going on in the

real economy, how well the economy is doing and how well the economy is going to do

in the future.

Economists typically group macroeconomic statistics under one of the three

headings: leading, lagging or coincident. Leading indicators are those which are believed

to change in advance of changes in the economy, giving you a preview of what is going

to happen before the change actually occurs. These types of indicators signal future

events. “Changes in business inventories” is an important leading economic indicator as

they reflect changes in consumer demand. New construction including new home

construction is another leading indicator which is watched closely by economists and

investors. A slowdown in the housing market during a boom often indicates that a

recession is coming, whereas a rise in the new housing market during a recession usually

means that there are better times ahead.

A lagging indicator is one that follows an event. Unemployment is one of the

most popular lagging indicators. If the unemployment rate is rising, it indicates that the

economy has been doing poorly.

14

A coincident indicator is an economic indicator which varies directly with, and at

the same time as, the related economic trend, thereby providing information about the

current state of the economy. Coincident indicators are comprehensive measures of

economic performance: real GNP, industrial production, income, and trade.

Most economic figures show a seasonal pattern that repeats itself every year. For

example, prices of seasonal foods rise in the winter, sales of beachwear increase with the

onset of summer, and industrial production falls in the months when factories close for

annual holidays. There is a simple numerical process called seasonal adjustment which

adjusts raw data for the observed seasonal pattern.

One way to smooth out erratic fluctuations is to look at an average.

The most important indicator is the GDP report. Gross domestic product (GDP) is

defined as the market value of all goods and services produced by the economy in a

given year. GDP includes only the goods and services produced domestically; goods

produced outside the country are excluded. GDP also includes only those goods and

services that are produced for the final user; intermediate products are excluded.

The nominal GDP measures the value of all the goods and services produced

expressed in current prices. On the other hand, real GDP measures the value of all the

goods and services produced expressed in the prices of some base year. Real GDP takes

out the effects of price increases.

Don't confuse Gross Domestic Product with Gross National Product (GNP). GDP

includes only goods and services produced within the geographic boundaries of the

country, regardless of the producer's nationality. GNP doesn't include goods and services

produced by foreign manufacturers, but does include goods and services produced by

national firms operating in foreign countries.

By itself, GDP doesn’t necessarily tell us much about the state of the economy.

But change in GDP does. The key number to look for is the growth rate of GDP. If GDP

(after adjusting for inflation) goes up, the economy is growing. If it goes down, the

economy is contracting.

Economic developments should be judged in the context of trends and cycles. The

trend is the overall direction in which a nation's economy is moving in the long term. The

repeated rise and fall of economic activity is called a business cycle. The cycle reflects

short-term fluctuations around the trend.

15

A typical cycle runs from three to five years but could last much longer. A cycle

can be divided into four general phases of prosperity, recession, depression, and

recovery. Recession is normally defined as two consecutive quarters of falling GDP.

Industrial production/output is another widely used economic indicator. Many

countries do not have quarterly estimates of gross national product but do have monthly

figures on industrial production, covering manufacturing and mining and often including

utilities and construction activity.

There are several indicators that focus on inflationary pressure. The most notable

in this group are the Producer Price Index (PPI), which measures the average change

over time in the selling prices received by domestic producers for their output, and the

Consumer Price Index (CPI) which measures any change in the cost of a fixed group of

products and services such as housing, food, transportation, medical care, apparel, and

entertainment. The rate at which the general level of prices for goods and services is

rising, and, subsequently, purchasing power is falling is called inflation rate. Central

banks attempt to stop severe inflation, along with severe deflation. Most countries'

central banks will try to sustain an inflation rate of 2-3%.

Economic conditions are the state of the economy in a country or region.

Economic conditions change over time in line with the economic and business cycle, as

an economy goes through expansion and contraction. Economic conditions are

considered to be sound or positive when an economy is expanding, and are considered to

be adverse or negative when an economy is contracting. A country's economic conditions

are influenced by numerous macroeconomic and microeconomic factors, including

monetary and fiscal policy, the state of the global economy, unemployment levels,

productivity, exchange rates, inflation and so on.

The indicators discussed above only scratch the surface of the type of economic

data that is published regularly. In the past, only investment professionals and economists

could receive these reports on a timely basis. But thanks to the Internet, this information

is now available to everyone.Richard Stutely: “The Economist Guide to Economic Indicators. Making Sense of Economics”, 2010

http://www.investopedia.com

16

NOTES

1. Units and changes. Do not confuse percentage points with percentage changes. If an interest rate or inflation rate increases from 10% to 13%, it has risen by three units, or 3 percentage points, but the percentage increase is 30% (3÷10×100).

2. Annualised change. This is the change which would occur if the movement observed in any period were to continue for exactly 12 months. For example, orders rose 6.4% annualised during the first three quarters of 2006.

3. Annual change. This compares the total or average for one calendar or fiscal year with the previous one. For example, orders in 2006 were 2.7% higher than in 2005.

4. Change to end-year. This compares end-year with end-year: for example, orders fell by 2.1% over the four quarters to end-2001.

Answer the questions.

1. What is macroeconomics?

2. Why is it important to track economic indicators?

3. What do economic indicators measure?

4. What are the three broad categories of economic indicators?

5. What are the leading economic indicators supposed to predict? Give examples.

6. Which economic indicator measures the overall value of goods and services produced

in the country?

7. What is the difference between real GDP and nominal GDP?

8. What is the difference between GDP and GNP?

9. What must be taken out of gross domestic product to compare economic output from

one year to the next?

10. What does the unemployment rate measure?

11. What is the business cycle?

12. What are the four phases of a business cycle?

13. What do we call the economic indicator that measures inflation in the factors of

production?

14. Is severe deflation good or bad for the economy? Why?

17

ACTIVE VOCABULARY

1. economy

emerging economies industrialized economies

(advanced / rich economies) economies of scale

real economy economic economical economics

1) экономика, национальное хозяйство2) экономия, бережливость 3) страна

страны с развивающимся рынком промышленно-развитые страны

эффект масштаба, экономия за счет масштаба

реальный сектор экономики экономический экономичный экономическая наука

2. indicator leading indicator lagging indicator coincident indicator to track indicators

показатель, индикатор опережающий показатель запаздывающий показатель совпадающий показатель отслеживать динамику

показателей

3. pattern

seasonal pattern

1) схема, модель, шаблон, структура2) образец, пример3) узор, рисунок4) тенденция, динамика, характер

сезонный характер

4. survey обзор, опрос

5. policy makers лица, ответственные за выработку экономической политики; директивные органы

6. to intervene intervention

вмешиваться вмешательство, оперативная

мера

7. business 1) дело, занятие, деятельность 2) торговля, предпринимательская

деятельность 3) компания, предприятие4) сделка, операция

8. industry 1) промышленность, индустрия 2) отрасль промышленности, отрасль

экономики

18

9. production

industrial production

production factors (inputs)

1) производство, добыча2) выработка

1) промышленное производство,2) объем промышленного производства

факторы производства

10. manufacturing

manufacturing industry

1) обрабатывающая промышленность2) производство

обрабатывающая промышленность

11. mining добывающая промышленность

12. utilities коммунальное хозяйство (службы)

13. inventories товарно-материальные запасы (ТМЗ)

14. rate

growth rate unemployment rate profit rate interest rate inflation rate exchange rate birth rate

at an annual ratesyn. annualized

1) темп, скорость; 2) размер, норма, коэффициент; 3) ставка; 4) уровень, величина; 5) курс

темп роста уровень безработицы норма прибыли процентная ставка темпы инфляции курс обмена валют коэффициент/уровень

рождаемости в годовом исчислении

15. trendsyn. tendency

тенденция, движение, изменение

16. business cyclesyn. economic cycle

цикл деловой активности, экономический цикл

17. slowdown замедление, снижение темпов роста

18. boom boom-bust-cycle

бум, процветание, быстрый подъем цикл с ярко выраженными фазами

подъема и спада

19. downturnsyn. downswing

спад, падение конъюнктуры

20. recession double-dip recession

снижение, спад, рецессия повторный (двойной) спад

19

21. depression the Great Depression

депрессия, застой, кризис Великая Депрессия 1929-30 гг.

22. Recovery

to recover

оживление (фаза цикла), возобновление роста

восстанавливаться, возобновлять рост

23. prosperity to prosper

процветание процветать, преуспевать

24. expansion to expand

подъем (фаза цикла), рост, расширение расширяться, расти, развиваться

25. contraction

to contract

снижение деловой активности, сокращение, спад

сокращаться, сжиматься

26. gain (s)

to gain

1) выигрыш, выгода 2) прирост, увеличение 3) прибыль, доходы, заработок

1) получать, приобретать2) извлекать пользу/выгоду3) прибавлять, повышаться

27. performance параметр, рабочие характеристики, результат работы, показатель деятельности

28. to adjust

seasonal adjustment

adjusted for inflation (inflation adjusted)

приспосабливать, настраивать, корректировать

корректировка с учетом сезонных колебаний

с учетом инфляции

29. to fluctuate fluctuation

колебаться, варьироваться колебание

30. average at an average rate on average

средняя величина, усредненное значение средними темпами в среднем

31. GDP /gross domestic product real GDP (adjusted for

inflation)

nominal GDP

GDP per person/head/ capita

валовой внутренний продукт/ ВВП ВВП в реальном выражении (с

учетом инфляции) номинальный ВВП (в абсолютном

выражении) ВВП на душу населения

20

32. GNP/gross national product валовой национальный продукт/ВНП

33. output

economic output

1) объем производства, добычи2) выпуск, продукция 3) выработка

ВВП

34. income real income

доход, поступления, выручка реальный доход (с учетом

инфляции)

35. household household income

домашнее хозяйство доход домашних хозяйств

36. consumption consumer consumer demand

потребление потребитель потребительский спрос

37. inflation inflationary pressure

инфляция, обесценение денег

инфляционное давление (воздействие роста цен на экономику)

38. deflation снижение цен, сдерживание роста денежной массы

39. purchasing powersyn. purchasing capacity

покупательная способность

40. Producer Price Index (PPI) индекс цен производителей, индекс оптовых цен

41. Consumer Price Index индекс потребительских цен, индекс розничных цен

Exercise № 1

Pronounce the following.

fluctuation; average; emerging economies; inventories; purchasing power; Gross

National Product; to intervene; to prosper; recession; consecutive; for two consecutive

quarters; survey; lagging indicator; business cycle; cyclical; annualized; to deteriorate; a

coincident indicator; to vary; variable; to surge; income per capita; to gauge; to affect;

seasonal adjustment; consumer sentiment; irrelevant; to experience; experiment; fiscal

stimulus package; to contract; incentives; to quantify; joblessness; depreciation;

sustainable; phenomenon; data; urgent; euphoria; a decade.

21

Exercise № 2

Suggest the Russian for the following word combinations.

market economy; fuel economy; growth rate; purchasing power; industrial output;

emerging economies; seasonal adjustment; adjusted for inflation; advanced economies;

manufacturing recession; household income; price fluctuation; oil output; manufacturing

industry; trade performance; economies of scale; rate of employment; real GDP;

manufacturing output; lagging indicator; business cycle; business inventories; at an

annual rate; inflation rate; price recovery; domestic producers.

Exercise № 3

Give English equivalents to the following word combinations.

валовой национальный продукт; опережающие показатели; курс обмена валют;

промышленно-развитые страны; с учетом сезонных колебаний; объем

производства обрабатывающей промышленности; темпы роста ВВП; колебания

конъюнктуры рынка; цикл с ярко выраженными фазами подъема и спада; дневная

выработка; процентная ставка; ВВП в реальном выражении; Великая Депрессия;

инфляционное давление; результат деятельности компании; спад в

обрабатывающей промышленности; оживление экономики; замедление темпов

экономического роста; изменение потребительского спроса; в ценах текущего

периода; хаотичные колебания.

LISTENING AND VIEWING

1. Go to

What’s the Economy? http://www.investopedia.com/video/play/whats-economy/

Economic Indicator http://www.investopedia.com/video/play/economic-

indicator/

Leading Indicator http://www.investopedia.com/video/play/leading-indicator/

Leading Economic Indicators Predict Market Trends

http://www.investopedia.com/video/play/leading-economic-indicators-predict-

market-trends/

Economic growth http://www.investopedia.com/video/play/economic-growth/

22

http://www.investopedia.com/video/play/economic-growth/

http://www.investopedia.com/video/play/leading-economic-indicators-predict-market-trends/

http://www.investopedia.com/video/play/leading-economic-indicators-predict-market-trends/

http://www.investopedia.com/video/play/leading-indicator/

http://www.investopedia.com/video/play/economic-indicator/

http://www.investopedia.com/video/play/economic-indicator/

http://www.investopedia.com/video/play/whats-economy/

Nominal vs Real GDP http://www.investopedia.com/video/play/nominal-vs-real-

gdp/

Gross National Product http://www.investopedia.com/video/play/gross-

national-product/

2. Watch and listen.

3. Sum up the contents.

READING AND SPEAKING I

1. Read the article and decide if the author is trying to prove that

a) GDP is still the most accurate indication of the economic health of any

country;

b) it is time policymakers ditch GDP as a gauge of a nation’s production because

GDP statistics are so prone to constant and substantial revision;

c) policymakers should not focus on GDP only but should rather devise a more

complex and balanced welfare benchmark.

2. Find the words, which match the following definitions:

any kind of action involved in conducting business, or an interaction between people

a mistake or shortcoming in a plan, theory, etc. which causes it to fail or reduces its effectiveness

usually untraceable, and hence untaxable, business dealings that are not reflected in a country's GDP computations

the preoccupation of society with the acquisition of consumer goods

the length of time that someone is likely to live

the death of children under the age of one year

23

http://www.investopedia.com/video/play/gross-national-product/

http://www.investopedia.com/video/play/gross-national-product/

http://www.investopedia.com/video/play/nominal-vs-real-gdp/

http://www.investopedia.com/video/play/nominal-vs-real-gdp/

materials or substances occurring in nature which can be exploited for economic gain

economic activity operating with the primary intention of minimizing all forms of environmental impact

availability of resources and presence of conditions required for reasonably comfortable, healthy, and secure living

a specified figure that is set for achieving or exceeding within a specified timeframe

responsibility to someone or for some activity

capacity to operate or to be sustained

continued development or growth, without significant deterioration of the environment and depletion of natural resources on which human well-being depends

Every quarter the financial markets wait eagerly for the latest estimate of the size

of the American economy, dubbed gross domestic product or GDP. Politicians are judged

by their ability to get this number rising; a sharp fall in GDP (a recession) is seen as a

crisis.

At the beginning of the 20th century people had no way of measuring the volume

of economic activity. But the Great Depression and the Second World War made

politicians realize that it was essential to generate such numbers. A brilliant and

resourceful economist called Simon Kuznets devised a way of doing so. In the process,

he, and those who followed him, had to decide what to measure. Understandably, they

focused on monetary transactions.

In a new book, “The Little Big Number: How GDP Came to Rule the World and

What to Do about It”, Dirk Philipsen, an American economic historian and

environmental advocate, argues that this approach has distorted our view of society and

the economy ever since. Wash your own windows and GDP is unaffected; employ a

window cleaner and output is boosted. Smash your car on the highway and the costs of

24

http://www.businessdictionary.com/definition/natural-resource.html

http://www.businessdictionary.com/definition/natural-resource.html

http://www.businessdictionary.com/definition/depletion.html

http://www.businessdictionary.com/definition/environment.html

http://www.businessdictionary.com/definition/deterioration.html

http://www.businessdictionary.com/definition/significant.html

http://www.businessdictionary.com/definition/development.html

http://www.businessdictionary.com/definition/secure.html

http://www.businessdictionary.com/definition/required.html

http://www.businessdictionary.com/definition/condition.html

http://www.businessdictionary.com/definition/resource.html

http://www.businessdictionary.com/definition/availability.html

repairing it add to GDP. The production of cigarettes that cause lung cancer and

handguns that are used in murders are also counted as a positive in GDP terms.

These flaws have been understood for decades; in 1968, Bobby Kennedy pointed

out that the measure “does not allow for the health of our children, the quality of their

education or the joy of their play”, adding that “it measures everything, in short, except

that which makes life worthwhile.” A more scholarly book might have investigated other

criticisms. Why are GDP calculations so frequently revised and by such large amounts?

How do the calculations allow for “black economy” transactions such as drug dealing or

prostitution? How do they allow for improvements to the quality of goods, such as the

enhanced processing power of computers and mobile phones?

Mr Philipsen has written a polemic, rather than a balanced analysis. In his view,

the GDP measure has created a society obsessed with mindless consumerism, in which

the focus on growth has obscured the damage done to natural resources. When people use

oil or coal for fuel, this is treated as an economic plus but they are depleting our natural

resources as well as adding carbon dioxide to the atmosphere.

His case would be more convincing if he had written a more balanced account.

Economic growth and environmental degradation do not always go hand in hand; the

British economy is a lot larger than it was in the 1950s but the smogs that blighted

London have disappeared. Oil consumption per capita in the developed world peaked in

the 1970s, because higher prices discouraged demand. Indeed, similar warnings of the

finite nature of Earth’s resources were written in the 1970s but they have yet to be borne

out; the author might have considered why. If countries did try to shift to greener

economies by, for example, taxing fossil fuels heavily, there would be significant costs

for poorer people (who spend a higher proportion of their income on energy); there

would also be unemployment in the energy industries affected, and potentially a problem

keeping the lights on all the time. Tackling this issue in a way that acknowledged all the

hazards would have improved the book.

The author is right to say that calculating GDP is not the same as measuring

welfare, nor does it say anything about the distribution of wealth. But he does not

acknowledge the improvements in life expectancy and infant mortality that have been

achieved in countries that have seen their economies grow; richer countries can afford

better healthcare. He also overstates his case when he writes that "the logic of GDP

growth grew into the central target of post-war planning"; actually, governments in the

25

1950s and 1960s focused on keeping unemployment down until the mid-1970s, when

tackling inflation became the priority. Even now, when central banks give forward

guidance, they usually refer to unemployment levels rather than nominal GDP targets.

At the end, while he briefly considers alternative measures, the author does not

plump for a single option, perhaps because all, like GDP, involve subjective judgments

and difficult choices. He writes that there is a need for a debate about "the four essential

sides of our goalpost" – sustainability, equity, democratic accountability and economic

viability. But surely this debate happens all the time; we do prevent development in the

name of preserving the environment, and we do argue about whether raising taxes on the

rich, or increasing benefits for the poor, is necessary for social cohesion.

In short, an obsessive focus on GDP might be wrong but it's not clear that we

have developed such a mania. And completely abandoning the measure would be wrong

too.The Economist, June 10th, 2015

NOTES

1. the Great Depression - an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world – Великая Депрессия.

2. Simon Kuznets – United States economist (born in Russia) who developed a method for using a country's gross national product to estimate its economic growth (1901-1985). Simon Kuznets was awarded the 1971 Nobel Prize in economics for his empirically founded interpretation of economic growth.

3. Bobby Kennedy - Robert Francis Kennedy (November 20, 1925 – June 6, 1968), Attorney General during his brother John F. Kennedy administration. He later served as a U.S. Senator and was assassinated during his run for the presidency.

USEFUL TERMS AND EXPRESSIONS

transaction – сделка, операция

syn. deal

monetary transaction – операции с денежными средствами

to affect –1) влиять, воздействовать, сказываться на 2) отрицательно сказаться,

нанести ущерб, негативно повлиять

to distort – извращать, искажать, деформировать

to devise – разрабатывать, продумывать

26

to boost – способствовать росту; ускорить развитие; вызывать рост; придать

импульс

flaw – недостаток, изъян, порок

decade – десятилетие

to allow for – учитывать, принимать в расчет

to revise (upwards/downwards) – пересмотреть (в сторону повышения/

понижения)

black economy – 1) теневая экономика; 2) криминальная экономическая

деятельность

to enhance – усиливать, улучшать, совершенствовать

consumerism – 1) защита интересов потребителя 2) идеология общества

потребления

to deplete natural resources – вызывать истощение природных ресурсов

case – доводы, доказательства, аргументы

consumption per capita – уровень потребления на душу населения

to discourage – 1) препятствовать, мешать, противодействовать 2) отвращать,

отбивать желание

to tax – облагать налогом

to tackle an issue – решить вопрос, проблему

hazard – опасность, фактор риска

welfare – благосостояние, благополучие

life expectancy – продолжительность жизни

infant mortality – детская смертность

goal post – целевой показатель, ориентир, критерий

syn. target figure

to plump for – выступать за; решительно поддерживать

sustainability – 1) рациональное и сбалансированное ресурсопользование

2) устойчивое и сбалансированное развитие

economic viability – экономическая целесообразность, эффективность

social cohesion – социальная сплоченность

to abandon – отказаться, отречься

27

Exercise № 4

Do the following statements agree with the information given in the article?

TRUE FALSE NOT GIVEN

1. In the USA the GDP statistics is released quarterly.

2. The term RECESSION is a synonym for ECONOMIC CRISIS

3. The first US GDP statistical records date back to the beginning of the 20th century.

4. In the 1930s, in response to the information gap revealed by the Great Depression,

Wassily Leontief, a Russian-born American economist, developed a set of national

income accounts.

5. According to Dirk Philipsen, the author of “The Little Big Number: How GDP Came

to Rule The World and What to Do about It”, one of the biggest flaws is that GDP

aims to measure market economy while housework doesn’t count in the figure.

6. The author of the article believes that excessive focus on GDP figures is the main

cause of reckless consumerism in modern society.

7. The author claims, that environmental protection hinders economic progress.

8. In his opinion, shift to greener economies accounts for higher unemployment in

energy industries.

9. The author agrees that, higher GDP leads to economic prosperity.

10. GDP growth rate, according to the author, has been the single most important target

for policymakers in the post-War period.

11. Mr Philipsen suggests a less subjective alternative measure of sustainable

development.

Exercise № 5


resourceful economist; monetary transactions; to affect GDP; to boost output; to allow

for the quality of education; drug dealing; “black economy” transactions; to enhance

processing power of computers; depletion of natural resources; oil consumption per

capita; to shift to greener economies; to tackle an issue; to acknowledge the hazards;

distribution of wealth; improved infant mortality; to keep unemployment down;

subjective judgments; to seek sustainability; raising taxes on the rich; increasing benefits

for the poor; obsessive focus on GDP.

28

Exercise № 6.


финансовые рынки; резкое снижение ВВП; оценить масштаб экономической

активности; Великая Депрессия; разработать модель; денежно-кредитная политика;

защитник окружающей среды; существенный недостаток; пересчитать ВВП;

общество бездумного потребления; убедительные доводы; экономический рост;

ухудшение состояния окружающей среды; препятствовать повышению спроса;

повышение цен; рост безработицы в отраслях энергетического сектора; оценить

уровень благосостояния; увеличение продолжительности жизни; сдерживать

повышение темпов инфляции; определение ориентиров на будущее; плановый

показатель номинального ВВП; экономическая эффективность; отказаться от

использования показателя.

READING AND SPEAKING II

Read the article and do the assignments that follow.

Measuring what mattersMan does not live by GDP alone.

How well off are Americans? Frenchmen? Indians? Ghanaians? An economist’s

simplest answer is the gross domestic product, or GDP, per person of each country. To

help you compare the figures, he will convert them into dollars, either at market

exchange rates or (better) at purchasing-power-parity rates, which allow for the

cheapness of, say, haircuts and taxi rides in poorer parts of the world.

To be sure, this will give you a fair guide to material standards of living: the

Americans and the French, on average, are much richer than Indians and Ghanaians. But

you may suspect, and the economist should know, that this is not the whole truth.

America’s GDP per head is higher than France’s, but the French spend less time at work,

so are they really worse off? An Indian may be desperately poor and yet say he is happy;

an American may be well fed yet fed up. GDP was designed to measure only the value of

goods and services produced in a country, and it does not even do that precisely. How

well off people feel also depends on things GDP does not capture, such as their health or

whether they have a job.

29

In recent years economists have therefore been looking at other measures of well-

being even “happiness”, a notion that it once seemed absurd to quantify. Among those

convinced that official statisticians should join in is Nicolas Sarkozy, the former French

president. On September 14th 2009 a commission he appointed, comprising 25 prominent

social scientists, five with Nobel prizes in economics, presented its findings.

The commission divided its work into three parts. The first deals with familiar

criticisms of GDP as a measure of well-being. It takes no account of the depreciation of

capital goods, and so overstates the value of production. Moreover, the value of

production is based on market prices, but not everything has a price. The list of such

things includes more than the environment. The worth of services not supplied through

markets, such as state health care or education, owner-occupied housing or unpaid

childcare by parents, is “imputed” or left out, even though private health care and

schooling, renting and child-minding are directly measured.

The report also argues that official statisticians should concentrate on households’

incomes, consumption and wealth rather than total production. All these adjustments

make a difference. In 2005, the commission found, France’s real GDP per person was

73% of America’s. But once government services, household production and leisure are

added in, the gap narrows: French households had 87% of the adjusted income of their

American counterparts.

Next the commission turns to measures of the “quality of life”. These attempt to

capture well-being beyond a mere command of economic resources. One approach

quantifies people’s subjective well-being. For many years researchers had been spurred

on by an apparent paradox: that rising incomes did not make people happier in the long

run. Exactly what, beyond income, affects subjective well-being from health, marital

status and age to perceptions of corruption is much pored over. The unemployed report

lower scores, even allowing for their lower incomes. Joblessness hits more than your

wallet.

Third, the report examines the well-being of future generations. People alive

today will pass on a stock of exhaustible and other natural resources as well as machines,

buildings and social institutions. Their children’s human capital (skills and so forth) will

depend on investment in education and research today. Economic activity is sustainable

if future generations can expect to be at least as well off as today’s. Finding a single

measure that captures all this, the report concludes, seems too ambitious. That sounds

30

right. For one thing, statisticians would have to make assumptions about the relative

value of, say, the environment and new buildings not just today, but many years from

now. It is probably wiser to look at a wide range of figures.

Some members of the commission believe that the financial crisis and the

recession have made a broadening of official statistics more urgent. It is perhaps going

too far to hope that had there been a better measurement system, one that would have

signalled problems ahead, so governments might have taken early measures to avoid or at

least to mitigate the present turmoil. Stockmarket indices, soaring house prices and low

inflation surely did more to feed bankers' and borrowers' exaggerated sense of well-

being. But there might have been less euphoria had financial markets and policymakers

been less fixated on GDP.

Broadening official statistics is a good idea in its own right. Some countries have

already started notably, tiny Bhutan. There are pitfalls, though. The report justifies

wider measures of well-being partly by noting that the public must have trust in official

statistics. Quite so; which makes it all the more important that the statisticians are

independent of government. Another risk is that a proliferation of measures could be a

gift to interest groups, letting them pick numbers that amplify their misery in order to

demand a bigger share of the national pie. But these are early days. Meanwhile, get

measuring.

The Economist, September 17th, 2009

NOTES

1. Purchasing power parity (PPP) паритет покупательной способности, ППС (равенство стоимости корзин идентичных товаров в разных странах, пересчитанных в одну валюту по существующему валютному курсу, и, следовательно, равенство покупательной способности их национальных валют). Курс по паритету покупательной способности является идеальным курсом обмена валют, рассчитанным как средневзвешенное соотношение цен для стандартной корзины промышленных, потребительских товаров и услуг двух стран.

2. quality of life качество жизни обобщающая социально-экономическая категория, представляющая обобщение понятия "уровень жизни", включает в себя не только уровень потребления материальных благ и услуг, но и удовлетворение духовных потребностей, здоровье, продолжительность жизни, условия среды, окружающей человека, морально-психологический климат, душевный комфорт.

31


capture – охватывать, отражать

standard of living / living standard – уровень жизни

to be well off – быть обеспеченным, состоятельным

to be better off / worse off – быть богаче / беднее; быть в лучшем/худшем

положении

well-being – благосостояние

wealth – богатство, благосостояние, материальные блага

to take account of учитывать

to quantify – производить количественную оценку

capital goods – товары производственного назначения, средства производства

depreciation – амортизация, износ, снижение стоимости

government services государственные услуги

a gap – расхождение, разрыв, несоответствие

joblessness – безработица

syn. unemployment

the unemployed –безработные (субстантивированное прилагательное)

sustainable – 1) стабильный, сбалансированный 2) допустимый, приемлемый

to make an assumption – допустить, предположить

exhaustible resources – исчерпаемые природные ресурсы

to mitigate – уменьшить, ослабить, умерить

turmoil – неразбериха, хаос, кризис

Exercise № 7

Choose the correct answer.

1. The GDP per capita is designed to measure

the quality of life

the value of goods and services produced by the population of this country

the total output of a country divided by the total number of people

the amount of money that is being earned per person in a country

32

2. The author considers GDP per head to be an inaccurate measure of quality of life in

a country because

it takes no account of depreciation of capital goods

it only captures material wealth but excludes some phenomena which have an

increasing impact on the well-being of citizens

it is based on market prices

it is normally revised after a certain period of time

3. It can be inferred that had there been more awareness of the limitations of standard

metrics, like GDP,

the financial crises and recession could have been avoided

bankers and borrowers would have felt worse-off

there would have been less euphoria over economic performance in the years

prior to the crisis

the policymakers would have taken early measure to moderate the melt-down

4. The key message of the report is that the time is ripe

to dismiss GDP and production measures

to shift emphasis from measuring economic production to measuring people’s

well-being in the context of sustainability

to focus on material living standards that are more closely associated with

measures of real household income and consumption

to ensure that statisticians are independent of governments

Exercise №8


to mitigate the recession; sustainable economic activity; to examine well-being of future

generations; to cut joblessness; to make assumptions; real GDP per person; to gauge

personal income; government services; to take account of depreciation of capital goods;

consumer demand; on average; at market exchange rate.

33

Exercise № 9


доход домашних хозяйств; ВВП на душу населения; уровень безработицы; курс

обмена валют; паритет покупательной способности валют; экономический спад;

оценить уровень благосостояния; приобрести товары производственного

назначения; стабильный рост благосостояния; повышать уровень жизни;

скорректировать показатель с учетом инфляции; произвести количественную

оценку уровня благосостояния; учитывать запросы потребителей.

READING AND SPEAKING III

Read the article and make a list of economic indicators suggested by The Economist

readers.

Search the Internet for some other alternative indicators of economic health.

Visit http://moneyland.time.com/category/economics-policy/the-economy/

http://www.mentalfloss.com/blogs/archives/109050

http://www.businessinsider.com/alternative-economic-indicators-2012-5 for alternative

ways to look at the economy

Express your views on the topic: Are these odd indicators really more reliable than the

data released by the government? Why do people need them?

Behind the bald figures

Receding hairlines and other signals of where the economy is heading

A few weeks ago The Economist invited readers who enjoy our Big Mac index to

help invent other quirky economic indicators. We received many suggestions for

different products with which to calculate exchange rates at purchasing-power parity,

ranging from Coca-Cola and bottled water to mobile-phone charges and taxi fares. But

given recent financial jolts, we were more interested in ideas that might help to show

where the economy is heading.

Many readers already have their pet indicator sometimes literally. A vet claims

that his business leads the economic cycle by as much as six months, because when times

get tough pet owners are quick to cut back on vaccinations and non-essential surgery,

34

such as neutering; they also delay getting a new dog. A reader from the pharmaceutical

industry recommends tracking suppositories. “Financial worries and austerity changes in

diet cause intestinal disorders,” he says, and sales of suppositories therefore rise as the

economy goes down the pan.

More down-to-earth readers tipped packaging materials, such as wooden pallets,

cartons and plastic stretch-wrap, as useful leading indicators. The snag with all these

ideas is that the data are not widely and quickly available. That is why many readers

favour anecdotal gauges, such as the ease of getting a taxi or finding a parking space.

Since the 1920s rising and falling hemlines have been a time-honoured gauge of

confidence, but one reader suggests taking a close look at leaders’ hairlines as a measure

of how much stress they and their economy are suffering. The balding pate of George

Papandreou, Greece’s prime minister, is a sell sign, and Silvio Berlusconi’s hair

transplant cannot hide Italy’s troubles. When hairlines recede, runs the thin theory,

economies are likely to follow.

But the hottest tip came from Edward Ritchie, an investment analyst in London.

He tracks Google searches for the “gold price” as an indicator of economic confidence.

This does not follow the gold price itself. For example, during most of 2008 when the

world’s financial system was melting down, the gold price tumbled yet the number of

searches soared. The number of gold-price searches shoots up when American consumer

confidence dives and subsides when households perk up again. That makes it a handy

device for spotting turning-points in economic confidence, with the added advantage that

the data are available earlier than for conventional survey-based figures. Worryingly, the

number of searches has recently vaulted above its 2008 peak, signalling the possibility of

a double dip.The Economist, August 27th, 2011

NOTES

1. Big Mac index индекс "Биг Мак" способ приблизительной проверки корректности уровня валютного курса, основанный на теории абсолютного паритета покупательной способности; при расчете индекса вместо стоимости обычной потребительской корзины используется цена сандвича "Биг Мак" в разных странах; напр., если Биг Мак стоит 2,75 евро в странах, которые используют эту валюту, и $2,65 в США, тогда курс доллара к евро должен быть равен 2,75/2,65 = 1,0377; индекс ежемесячно публикуется журналом The Economist с 1986 г.

35

2. hemline theory – теория «длины дамских юбок» шуточная теория о том, что цены на акции меняются в одном направлении с длиной дамских юбок.


melt-down – расплавление, зд. крах, кризис

to subside – падать, убывать, понижаться

to perk up – оживляться, расти

to vault – перескакивать, перепрыгивать

VOCABULARY PRACTICE

Определенную трудность при переводе представляют многозначные слова.

Необходимо иметь в виду, что любое, казалось бы, хорошо знакомое слово в

зависимости от контекста может иметь различные значения.

Exercise № 10

economy – 1) экономика, хозяйство 2) экономия 3) ВВП 4) экономическая держава 5) мн.ч. – страны

A. Translate the following word combinations into Russian.

global economy; market economy; advanced economies; fuel economy; emerging

economies; industrialized economies; economies of scale; national economy; centrally

planned economy; natural economy.

B. Translate the following sentences into Russian.

1. The nation's economy grew at a slower pace than previously reported in the first three

months of this year, raising new concerns about economic weakness.

2. In 2011, China's economy grew by 9.2%, down from 2010's figure of 10.4% growth.

3. The average fuel economy of 2012 model year vehicles is 14 percent higher than the

same mark of just four years earlier, according to a University of Michigan study.

4. In 2010 China shot past Japan to become the world’s second-largest economy (based

on current market prices).

36

5. Real GDP in most rich economies is still below its level at the end of 2007. In

contrast, emerging economies’ output has jumped by almost 20% over the same

period.

6. The economy added 163,000 jobs in July as the unemployment rate rose to 8.3%.

7. Loans at very low rates from state-owned banks in Beijing, cheap or free land from

local and provincial governments across China, huge economies of scale and other

cost advantages have transformed China from a minor player in the solar power

industry just a few years ago into the main producer of an increasingly competitive

source of electricity.

8. Japan’s economy has expanded for four consecutive quarters, the longest run in more

than three years.

9. China’s rise to become the world’s second largest economy was largely powered by

cheap, dirty coal.

10. In the first quarter, Germany's economy shrank 3.8 percent as demand for its high

value goods, such as cars and machinery, collapsed.

11. It is true that the fuel-economy program will be quite expensive, imposing annual

costs of about $6.49 billion. Most of those costs will be borne by consumers, who

will have to pay more for new cars.

12. Britain is set to drop out of the world’s five largest economies based on gross

domestic product in nominal terms, according to International Monetary Fund

estimates published this week.

Exercise № 11

Fill in the blanks with one of the appropriate words.

economy economics economies Economic economical

1. Chinese [_____________] growth has slowed, and there are growing fears that it

could face a “hard landing”.

2. The most [____________] and carbon-friendly way to travel to Boston from New

York is by train.

3. But the big question is whether these same [_____________] would apply in a world

one hundred times richer than we are right now.

37

4. They have for many centuries been the highway of commerce, and afford a cheap and

[_____________] means of transport.

5. "Destroying a rainforest for [_____________] gain is like burning a Renaissance

painting to cook a meal."

6. Japan's [_____________] has dodged a recession after it grew faster than expected in

the first three months of the year.

7. While the short-term performance of emerging [___________] has been abysmal, the

longer-term returns tell a very different story.

8. Analysts remain concerned about the outlook for consumer spending, which accounts

for about 60% of [___________] growth.

9. The most important general work published in English is Marshall's Principles of

[______________].

10. Despite the [____________] crisis, Germany has grown, created more jobs, and

reduced its national debt.

11. Other than aesthetics and [_____________], she had little idea what kind of vehicle

she wanted.

12. In the following year he was introduced to political [___________] and studied

Adam Smith and Ricardo with his father.

13. The Global Brand enables organizations to take advantage of [___________] of scale

with regard to marketing investments.

14. Gross domestic product in the world's third-largest [__________] grew at an

annualized pace of 1.7%.

15. It is easy to understand, therefore, why we trace the beginnings of [__________], so

far as England is concerned, in the 16th century, and why the application of strict

scientific tests in this subject of human study has become possible only in

comparatively recent times.

16. Japan's [____________] had shrunk in the final three months of 2015, so the

expansion in the first quarter meant it avoided falling into recession usually defined

as two successive quarters of contraction.

Exercise № 12

output – 1) выпуск, продукция 2) объем производства, добычи 3) выработка, мощность, производительность

38


annual output; industrial output; national output; daily output; gross output;

manufacturing output; milk output; factory output; oil output; world output; economic

output; farm output.


1. British manufacturing output showed a small increase in September.

2. Philippine farm output this year will grow by as much as 5 percent on back of a

sharp rise in rice production.

3. The economic output of all countries in the EU has increased considerably during the

last three decades.

4. Many analysts think Iran could double its oil output to nearly 7 million barrels per

day.

5. A good monsoon, stable cattle-feed cost and better price to farmers will increase

domestic milk output by six-seven per cent and ensure stable prices to consumers.

6. New figures released by the Central Statistics Office show that Ireland’s economic

output decreased in the last quarter of 2011 – putting Ireland back into a recession.

7. Based on the World Steel Association data, in June this year the crude steel output of

62 countries surveyed across the globe reached 127.9 million tonnes increasing by

0.1% YoY basis (year-on-year) and down 2.04% compared to May this year.

8. The Northern Bank is predicting economic output will remain largely flat this year.

9. Output per worker rises when the workers are more skilled and work with greater

intensity, it also rises when they are given better equipment, more efficient plant-

layouts, and better materials.

10. China's annual output of shale gas will skyrocket from near zero now to 6.5 billion

cubic meters in 2015 and at least 10 times that by 2020, the government said in a

development plan Friday.

Exercise № 13

rate 1) размер, норма; 2) ставка, тариф; 3) курс; 4) темп, скорость;5) коэффициент, показатель, степень; 6) разряд, сорт, класс.

39


growth rate; interest rate; rate of inflation; unemployment rate; birth rate; exchange rate;

dollar rate; wage rate; profit rate; freight rate; output rate; penalty rate; tax rate; at an

annual rate; rate of profitability.


1. The unemployment rate represents unemployed persons as a percentage of the labour

force.

2. The rate of profit is the best indicator of the ‘health’ of a capitalist economy.

3. The soaring unemployment rate is a lagging indicator of the financial problems in

the euro zone, and is not terribly surprising given (учитывая) all the bad news

coming from Europe in the last couple of years.

4. Latvia has one of the highest GDP growth rates in Europe, mostly driven by

expansion in consumption and credit.

5. The US and Europe have also criticised China’s exchange rate controls; accusing

China of making their exports artificially cheap and giving Chinese manufacturers an

unfair advantage over European and American producers.

6. The U.S. birth rate has dropped to the lowest level since national data have been

available, according to statistics just released by the Centers for Disease Control.

7. Some economists expect the Bank of England committee to consider an interest rate

increase in May, when more data on inflation and the economy in the first quarter

will be available.

8. The UK rate of inflation fell last month to a two-and-a-half year low owing to

slowing fuel and food prices.

9. The unemployment rate fell to 8.5%. That was the fourth month in a row that the

jobless number has fallen, and it was the lowest level that gauge of economy has been

since February 2009.

10. Freight rates have plummeted in recent months, thanks to weak demand and an

oversupply of container ships.

11. The economy in the U.S. grew at a 3 percent annual rate in the last three months of

2011, the same as previously estimated, while corporate profits climbed at the

slowest pace in three years.

40

Exercise № 14

to account for – 1) составлять, приходиться на долю; 2) объяснять что-либо,

служить причиной; 3) отчитываться за что-либо, нести ответственность; 4)

обеспечивать за счет чего-то.

Обратите особое внимание на необходимость грамматической трансформации

при переводе предложений, в которых глагол to account for употребляется в

значении приходиться на долю. Например: The U.S. now accounts for 45 per cent of

Hong Kong’s exports by value. – В настоящее время на долю США приходится 45 %

от общего объема экспорта Гонконга в стоимостном выражении.

Translate the following sentences into Russian.

1. China accounts for about a fifth of the world's total economic output and any

slowdown may affect a global recovery.

2. It’s important to keep in mind that the industrial sector accounts for less than a

quarter of all final products produced in the U.S.

3. The Pentagon cannot properly account for nearly nine billion dollars received for

Iraqi reconstruction programs after the 2003 US invasion.

4. In 2008 private consumption accounted for only 35% of the US GDP, down from

49% in 1990.

5. In America start-ups have accounted for almost all the job creation in the past

couple of decades.

6. Exports of industrial raw materials and capital goods, especially to emerging

economies, account for the lion’s share of recent gains in GDP.

7. The invention of the cotton gin (машина для очистки хлопкового волокна) was

one of the key factors that accounted for the explosive growth of cotton production

and slave labor in the South in the 1850's.

8. The storekeeper was expected to account for any material removed.

9. An increase in net exports has accounted for no less than two-thirds of Germany’s

total GDP growth over the past decade, far more than any other big economy.

10. At the board meeting the sales manager accounted for the failure to meet the target

figures.

11. Bad weather accounted for the delay in delivery.

41

Exercise № 15

Describing graphs, trends, and changes

Going up Verbs to advance, to climb, to increase, to rise, to grow, to gain ground, to head north, to improve, to go up

Nouns an advance, an increase, a rise, a growth, a climb, a hike, an upturn

Going down

Verbs to decline, to drop, to fall, to head south, to lose ground, to retreat,

to slide, to go down, to contract, to shrink

Nouns a decline, a drop, a fall, a retreat, a slide, a downturn

These words used to talk of an upward or downward trend do not in themselves indicate by how much indicators have gone up or down.

Going up by small or moderate amounts

V to edge ahead, to edge higher, to edge up, to firm

Going down by small

or moderate amounts

V to dip, to drift (lower), to ease, to edge down, to edge lower, to slip (lower)

N a dip, a drift, a slip

Going up

by large amounts

V to jump, to leap, to roar ahead, to roar up, to rocket, to shoot ahead,

to shoot up, to skyrocket, to soar, to surge (ahead)

N a jump, a leap, a surge

Going down

by large amounts

V to dive, to nosedive, to plunge, to plummet, to tumble

N a dive, a nosedive, a plunge, a tumble

Going down fast

by very large amounts

V to collapse, to crash, to crumble, to slump

N a crash, a collapse, a slump

No change to remain stable, to level off, to stay at the same level, to remain constant, flat

to stagnate, to stabilize, to remain steady

42

Change of direction

to peak, to reach a peak, to top out, to reach a low point, to bottom out,

to recover, to rebound, to revive

The amount of increase or decline can also be indicated using these verbs:

to double, to triple, to quadruple, to increase fivefold; to halve

Adjectives and adverbs

a dramatic fall to fall dramatically существенный (но)

an abrupt rise to rise abruptly резкий (о)

a sudden decline to decline suddenly внезапный (о)

a moderate growth to grow moderately умеренный (о)

a slight increase to increase slightly незначительный (о)

a rapid drop to drop rapidly стремительный (о)

a gradual decline to decline gradually постепенный (о)

a steady recovery to recover steadily устойчивый (о)

erratic fluctuation to fluctuate erratically хаотичный (о)

a constant leveling off to level off constantly непрерывный (о)

a marginal pick-up to pick up marginally несущественный (о)

a marked fall to fall markedly заметный (о)

a fractional increase to increase fractionally незначительный (о)

Fill in the gaps with appropriate words. Explain your choice.

1. Car sales in India ………… to its lowest in nine months in July at 1.43 mln units as

high interest rates and petrol prices further impacted the already weak consumer

sentiments.

skyrocketed slumped surged

43

2. Total car production……………5% because of lower sales in the US, where all

European countries are struggling with weak demand.

shot ahead slid increased

3. Industrial output grew by 20.9% in January 2005 over the previous year, as China’s

total economy………….. by more than 14%.

slid edged up shot ahead

4. American manufacturing employment ………. in 1979 and has been generally

falling since.

advanced peaked soared

5. New orders ……………5% in August, and for that month and July combined stood

10% higher in volume terms than a year earlier.

plummeted slipped jumped

6. Sales held steady, profits ………….from $29.7 million to $12.1 million.

drifted lower crumbled leapt

7. Farm prices………….0.5% from March as meat prices continued their rise.

edged up rocketed surged

8. In the first seven months of the year exports to Great Britain …………….by 12%

and hit the record, while those to Italy were up only 4%.

fell drifted lower soared

9. Stocks …………..as trading activity remained sluggish.

roared ahead edged lower leapt

10. Tesla’s shares were among the best performers,…………. 400% in 6 months.

jumping plummeting tumbling

Exercise № 16

Translate the following sentences into Russian, paying special attention to the words

in italics.

all time high – наивысшее значение за весь период наблюдений, исторический

максимум

ant. all-time low

on record – за всю историю статистических наблюдений

record high – абсолютный максимум, рекордно высокое значение

year’s low – самый низкий показатель за год

44

1. Historically, from 1914 until 2012, the United States inflation rate averaged 3.36%

reaching an all time high of 23.7% in June of 1920 and a record low of 15.8% in

June of 1921.

2. Foreign investment by U.S. businesses and investors is on track to be the second

highest on record.

3. Having touched a 20-year low in 2006, this year sales fell every month until October.

4. Manufacturing output has already declined at a 2.2% annual rate in the fourth

quarter, the largest quarterly drop since the 2001 recession.

5. Since January, exports to Asia have accounted for almost half of total shipments, and

in the three months through July, the growth rate for shipments of all goods,

adjusted for inflation, accelerated to a 30% annual rate.

6. The figures also showed that input prices – the cost of raw materials bought by

industry – rose 1.8% on the month to stand 15.4% up on a year ago, the second

biggest increase on record.

7. Singapore's economy slowed sharply from the third quarter. Growth fell by 3.2 per

cent on an annualised, seasonally adjusted basis, the first contraction in four and a

half years.

8. The main cause of the problem has been steadily weakening prices, which are at

about 20-year lows.

9. In the US, companies are generally quicker to shed jobs, the rate reached 9.8% in

September, a 26-year high and up by around four percentage points since mid-2008.

10. In Germany and Britain, the forecast suggests a marked fall in output, year on year.

11. According to WSD’s (World Steel Dynamics) calculations, steel consumption in the

US will pick up only marginally to 125m tones, from this year’s expected 122,8m

tones.

12. Last month exports were $1.64bn, fractionally down on the same month in 1984.

13. In fact, corporate profits are now at a peak in dollar terms and close to an all-time

high as a percentage of GDP.

14. Japan’s production of crude steel (нерафинированной стали) rose dramatically in

April to 8.830 million metric tons, up 15% from a year earlier and 5% from March.

15. The latest figures reflected only the normal seasonal improvement in the labour

market and gave no sign that the present modest upswing in the economy was

creating new jobs.

45

16. The rise in manufacturer’s buying prices is also uncomfortably high in comparison

with the domestic inflation rate, which was 4.6 per cent in the year to December and

is projected by Treasury (Министерство Финансов) to remain at about that level

this year.

TRANSLATION SKILLS

I. АНАЛИЗ СТРУКТУРЫ ПРЕДЛОЖЕНИЯ И РОЛЬ ПОРЯДКА

СЛОВ ПРИ ПЕРЕВОДЕ

Приступая к переводу текста, необходимо помнить, что вследствие

различий в лексических и грамматических структурах языка оригинала и языка

перевода, достижение полной эквивалентности возможно лишь в исключительных

случаях, как правило, в простых предложениях. Для выполнения адекватного

перевода, т.е. такого, который на 80-90% передает суть и форму оригинала,

возникает необходимость в различных переводческих трансформациях:

лексических, грамматических, стилистических и др. Задача переводчика

заключается в том, чтобы найти такие языковые средства, которые позволят ему

без искажений, грамотно, адекватно, используя специальную терминологию,

передать содержащуюся в оригинале информацию, по возможности, сохранив

жанровые особенности текста и авторскую стилистику.

Перевод каждого предложения следует начинать с анализа его

грамматической структуры, т.е. нахождения грамматической основы и

установления связи между словами. При этом следует иметь в виду, что перед

подлежащим предлоги отсутствуют. Сказуемое может быть удалено от

подлежащего, а отдельные части сказуемого – друг от друга.

In services the pessimism expressed about the coming year was reminiscent of

mid-2009, before the recovery had picked up any speed at all

Food prices, which rose by about 11% in the year to February, have made a big

contribution to China’s consumer-price inflation, now running at 4.9%.

Если предложение содержит предлоги, необходимо выяснить, какие слова в

предложении они связывают.

Во многих случаях перевод с английского языка на русский сопровождается

изменением порядка слов. Следует помнить, что в отличие от английского языка, в

46

котором принят прямой порядок слов, в русском языке порядок слов свободный, а

обстоятельства времени и места по большей части стоят в начале

предложения. Также в начало предложения помещается и ссылка на источник

информации, если таковая имеется. Инфинитив цели, стоящий в конце

английского предложения, тоже, как правило, выносится вперед.

Порядок слов в русском предложении может зависеть от того, с каким

артиклем употреблено подлежащее в английском предложении.

A meeting in support of domestic beef producers was held in Argentina

yesterday.

The meeting in support of domestic beef producers, held in Argentina yesterday

condemned the government ban on beef exports.

В обоих предложениях порядок слов фиксирован правилами построения

английских предложений подобного типа. В первом предложении подлежащее

оформлено неопределенным артиклем, указывающим на то, что оно является

центром той части сообщения, которая содержит "новые" сведения. В русском

языке такой центр сообщения тяготеет к концу предложения. Поэтому в переводе

эквивалентное высказывание будет иметь иной порядок слов:

Вчера в Аргентине состоялся митинг в поддержку отечественных

производителей говядины.

Во втором предложении определенный артикль при подлежащем указывает,

что коммуникативным центром сообщения является не подлежащее, а группа

сказуемого, составляющая конечную часть высказывания. Поэтому порядок слов в

переводе может быть сохранен:

Митинг в поддержку отечественных производителей говядины,

прошедший вчера в Аргентине, осудил запрет правительства на экспорт этой

продукции.

Часто необходимость в изменении порядка слов возникает в тех случаях,

когда сказуемое в английском предложении выражено глаголом в пассивном

залоге или составным именным сказуемым.

The $787 billion economic stimulus package was approved by Congress in

February 2009.

В феврале 2009 г. Конгресс [США] одобрил пакет мер/программу

экономического стимулирования на общую сумму 787 млрд. долл.

47

Exercise № 17

Translate into Russian following the instructions given above.

1. Brazil, Russia, India and China, known as the BRICs, will comprise 20 percent of

the world economy this year, International Monetary Fund data show.

2. By 2000, the median worker had to work 67.4 hours a month to put his or her family

into the median home.

3. In China, unlike the euro area or America, a slowdown is overdue.

4. The slowdown indicates that estimates of the U.S. financial problem may “turn out to

be overly optimistic”.

5. In the Great Depression, many countries tried devaluations to gain export advantages

over rivals.

6. Combined GDP in the BRICs will rise to more than $14 trillion this year from $2.8

trillion in 2002, according to the IMF.

7. Managers know their companies need growth to survive.

8. The government offered firms temporary subsidies to forestall outsourcing.

9. Low interest rates around the world will boost growth in the BRIC countries, said

O’Neill, the former chief economist at Goldman Sachs Group Inc.

10. A tax increase on tobacco in October also hurt cigarette sales.

11. The tax increase on tobacco in New Zealand on 28 April 2010 was the first increase

above CPI (Consumer Price Index) for a decade.

12. Germany could add about 10 percent to growth over the next decade if it removed

barriers to competition and other inefficiencies, according to the O.E.C.D.

13. Corporate leaders worked with educators to churn out a labor force with the right

skills.

14. Germany needs to boost both domestic spending and its services sector to maintain its

performance over the next decade.

15. Though the German economy grew a healthy 3 percent last year, it will grow only 0.6

percent this year and 1.9 percent next yesr, the OECD forecasts.

16. A new €28 billion loan for Greece has been approved by the IMF as part of the

overall financing package agreed by Athens and its partners in the euro zone.

17. A key ingredient in the government’s new economic strategy was the successful

conclusion on March 9 of a substantial write-down of Greece’s debt.

48

Exercise № 18

Перевод прилагательных в сравнительной степени, выступающих в качестве

определения, и причастий, означающих повышение и понижение

Такие прилагательные и причастия чаще всего переводятся существительными.

При этом определяемое существительное ставится в родительном падеже.

lower GNP — сокращение ВНП

higher prices — повышение уровня цен

rising inflation — рост инфляции

reduced taxes — снижение налогов


higher spending; rising unemployment; more workers; lower living standards; improved

economic environment; slower growth; growing exports; less inflation; better consumer

demand; lower household income; rising GDP.


1. The result would be lower rates, more revenue and a more efficient tax system.

2. As the population grows there will be an increased demand for food.

3. Consumers are putting off major purchases, partly because they are afraid of rising

unemployment.

4. The pace of export growth and import declines has slowed on the back of the weaker

demand from overseas and the stronger dollar.

5. Increased global demand for fuel has added to the pressure on prices.

6. The risk of deflation is exacerbated by rising unemployment and falling incomes.

7. Employers will achieve increased productivity by allowing employees to focus on

their work rather than family concerns.

8. Trading powerhouses like Germany are suffering from weaker demand for capital

goods, automobiles and luxury goods.

9. The shrinking value of the dollar has helped boost demand abroad for products like

computers and machinery.

10. A lower dollar and the rising cost of foreign labour in China and elsewhere have

weakened the case for sending American manufacturing offshore.

11. A third consecutive monthly rise in exports showed the global recovery was gaining

steam, and the second month of higher imports implied firmer U.S. demand.

49

12. Lower corporate profits account for less investment.

II. ПЕРЕВОД СЛУЖЕБНЫХ СЛОВ

Exercise № 1 9

Since – в качестве союза переводится на русский язык: 1) поскольку, так как; 2) с

тех пор как, после этого (того); в качестве предлога – с, со времени и т.д.


1. This may bring down electricity prices since much is generated from gas.

2. Since the recession began, inflation-adjusted exports and imports have declined $208

billion and $440 billion, respectively.

3. And since the banking system is still dominated by the government, the banks will

not refuse to offer new loans, even if old loans sour.

4. The period since the 2008-2009 financial and economic crises now appear to be a

prolonged hangover, with productivity stalling as Britain struggles to rebalance

output towards more sustainable activities.

5. Ever since the forging of Renault’s alliance with Nissan in 1999, Carlos Ghosn, the

boss of both carmakers, has been on the lookout for new partners.

6. These figures understate the problem, since they include not only newly discovered

oil, but also oil acquired through takeovers and purchases.

7. Since January, exports to Asia have accounted for almost half of total shipments.

8. Since growth returned in 2010 it has never beaten 2.5% over a whole year, and often

fallen short.

9. The lesson is that since markets and the real economy can move at different speeds,

central banking must be about more than interest rates.

10. Since there are more new models on the market than in recent years, automakers need

fewer incentives to lure consumers into the showrooms.

Exercise № 20

As – выступая в качестве союза, переводится: 1) когда, в то время как, по мере

того как; 2) так как; 3) как, в качестве. После прилагательного в предложении с

инверсией имеет уступительное значение и переводится: хотя, как ни; в

50

сочетании с прилагательным и наречием – так же…как, такой же…как.

Другие сочетания:

as well as – а также;

as if – как будто, как если бы;

so as – (с тем) чтобы, так чтобы;

as it is – (в начале предложения) как бы то ни было, в действительности, можно

сказать; (в конце предложения) уже и так, без того;

as it were – как бы то ни было;

as to (for) - что касается;

just as – в тот самый момент, когда


1. As China's economy grows ever bigger, more and more companies, industries and

economies will be sucked into its orbit, just like Australia.

2. Demand, especially in China and India, should continue to strengthen as these

countries require more steel, food and fuel.

3. As prices rise quickly in Australia's booming industries and regions, the Reserve

Bank of Australia can meet its inflation target only if prices elsewhere fall.

4. As the global recession is making consumers and businesses more price-conscious,

China is grabbing market share from its competitors.

5. As the world’s biggest exporter of sugar and coffee and the second-largest producer

of soyabeans, Brazil has already won the title of an agricultural superpower.

6. Exports of merchandise rose by two-thirds from 2000 to 2008, according to the WTO,

as did trade in services.

7. Airlines face heavy investments in new aircraft to modernize their fleet and to meet

demand as well as higher growth rates forecast for the long term.

8. The one unworried head in this storm, at least until now, has been American

consumer, who still shops as if there was no tomorrow.

9. The Fed was probably as surprised by the economy’s strength as were private

forecasters.

10. Defeating deflation will be hard enough as it is.

11. Many economists pointed to government incentives as the way out of the economic

mess.

51

12. As the effects of the US slowdown spread throughout the world, some OPEC

members are calling for a further cut in production of up to 1m barrels a day.

13. One of the biggest beneficiaries of this spending power is the tourism sector, which

has exploded as China’s middle class has embraced domestic and foreign travel.

14. The strong currency is threatening to undermine Japan’s economic recovery just as

industrial production rebounds following the earthquake and tsunami.

15. But online sellers of all sorts of goods and services are taking a keen interest in new

software that promises to help them spot customers who are well off, or whose money

is burning a hole in their pockets, so as to charge them more

16. Some companies, such as local retailers, benefit from lower import costs, but those

that manufacture in the euro zone and sell in the U.S. or Asia are facing a serious

competitive disadvantage.

Ш. ОСОБЕННОСТИ И ТРУДНОСТИ ПЕРЕВОДА АНГЛИЙСКИХ

ГАЗЕТНЫХ ЗАГОЛОВКОВ

Определенную трудность при переводе могут представлять газетные и

журнальные заголовки. Трудность обусловлена двумя причинами: 1) допустимые

нарушения языковых норм; 2) отсутствие полных и глубоких знаний жизненных

реалий и культуры страны изучаемого языка, а также образной фразеологии.

Поэтому до перевода заголовка часто оказывается необходимым обращение

к тексту статьи, особенно в тех случаях, когда заголовок содержит элементы

образности. Иногда стремление придать заголовку интригующий, завлекательный

характер приводит к тому, что он перестает выполнять свою информационную

функцию, и фактически не связан напрямую с содержанием статьи. В этих случаях

при переводе может возникнуть необходимость прибегнуть к расширению

заголовка за счет привлечения дополнительных подробностей из текста самой

статьи.

При переводе английских газетных заголовков важно учитывать их

основные лексические, грамматические и стилистические особенности:

Лексические особенности английских газетных заголовков и их передача

при переводе.

1. Для заголовков английских газет характерно частое использование

небольшого числа специальных слов, составляющих своего рода

52

"заголовочный жаргон": ban, bid, claim, crack, crash, cut, dash, hit, move, pact,

plea, probe, quit, quiz, rap, rush, slash и др.

2. Использование фразеологизмов, клише, игра слов; умышленное

изменение устойчивых выражений; аллюзии и различные устойчивые

сочетания. Задача переводчика в данном случае связана не только с

распознаванием этих явлений в газетных заголовках, но и с соблюдением

стилистических и грамматических особенностей заголовков языка перевода.

Фразеологизмы:

China growth: still up in the air

Экономический рост Китая все еще вызывает большие сомнения

В русском языке фразеологизм «up in the air» можно заменить следующими

выражениями: «вилами по воде писано», «бабушка надвое сказала», «поживем-

увидим». Эти выражения в силу своего разговорного характера не могут быть

использованы при переводе данного заголовка. Так как русским газетным

заголовкам свойственен более нейтральный оттенок, фразеологизм «up in the air»

следует перевести как «вызывает большие сомнения».

Клише:

Obama Drastically Cuts Military; Sparks Heated Debate in Congress

Решение президента Обамы о сокращении численности вооруженных сил

вызвало бурные прения в Конгрессе

3. Смешение книжной и разговорной лексики

В газетных заголовках особенно широко используются жаргонизмы и

другие лексические элементы разговорного стиля. Даже если в самой статье какая-

либо ситуация описывается в более сдержанном стиле, заголовок часто носит

более разговорный характер.

Burma Chief Minister Sacked for Bribery

Премьер-министр Бирмы отправлен в отставку за взяточничество

Несмотря на серьезный характер сообщения в английском заголовке

используется глагол to sack, который является обиходно-разговорным.

4. Сокращения

Перевод сокращений обычно не вызывает сложностей при переводе

заголовка. Трудности могут вызывать те сокращения, которые не имеют в русском

языке официального эквивалента. Часто сокращению подвергаются фамилии или

53

фамильярные прозвища известных политических или общественных деятелей.

Переводчик должен помнить, что в каждом случае он должен вместо сокращении

приводить фамилию полностью, а прозвища заменять фамилиями.

Europeans don´t eat enough fruit and veg

Европейцы потребляют недостаточно фруктов и овощей

Вместо слова «vegetables» в английском заголовке используется сокращение

«veg», имеющее разговорный характер. В соответствии с особенностями стиля

русских газетных заголовков с «veg» будет переводится словом «овощи»,

имеющим нейтральный оттенок.

Употребляются популярные прозвища и сокращенные имена вместо

фамилий некоторых политических деятелей, артистов, спортсменов и др.,

например:

Winnie= Winston Churchill, Rocky=Rockefeller

Фамильярные прозвища при переводе заменяются фамилией.

Третья группа сокращений, весьма распространенных в заголовках, -

сокращения географических названий. В русских заголовках эти сокращения

переводятся полностью:

Rockies Mystery Solved by New Mountain-Creation Theory?

Новая теория раскроет загадку формирования Скалистых гор?

(Сокращение Rockies переводится полностью.)

5. Титулы

В английских и американских газетах принято всегда указывать титул

политического деятеля даже тогда, когда он подвергается беспощадной критике.

Если фамилия политического деятеля употребляется без упоминания титула или

занимаемой должности, перед ней всегда ставится сокращение Mr (Mister) или Mrs

(Missis). При переводе эти титулы, как правило, опускаются. Исключение

составляют особо официальные тексты, в которых они переводятся, причем Mr и

Mrs, переводятся соответственно господин и госпожа, а не мистер и миссис.

Sir Elton John to publish book about aids epidemic

Элтон Джон напишет книгу о СПИДе

(титул Sir при переводе на русский язык опускается, поскольку имеет лишь

формальное значение.)

54

Грамматические особенности английских газетных заголовков и их передача

при переводе

1. Пропуск слова или выражения, не являющегося необходимым с точки

зрения смысла, для усиления выразительности (эллипсис).

В связи с экономией пространства полные предложения в заголовках

встречаются нечасто. Опускаться могут самые разные части речи и члены

предложения:

Опущение подлежащего

Значительную трудность представляет перевод заголовков, в которых

имеется глагольное сказуемое в личной форме, но отсутствует подлежащее. Такие

заголовки обычно переводятся неопределенно-личными предложениями, а иногда

приходится восстанавливать подлежащее, исходя из содержания самой

публикации:

Expect no change in North Korea

В Северной Корее изменений не ожидается

Опущение сказуемого

Сказуемое опускается в заголовке тогда, когда оно играет в предложении

второстепенную роль. На русский язык такие заголовки переводятся назывными

предложениями:

Web Protest

Протест в сети

Важно учитывать, что для английских и американских газет характерно

преобладание глагольных заголовков: Floods Hit Scotland; Johnson Sends Message.

Однако для российской печати характерно преобладание безглагольных

заголовков. Поэтому вышеприведенные примеры должны быть переданы на

русский язык безглагольными заголовками: Наводнение в Шотландии; Послание

Джонсона.

Опущение артикля

Опущение артикля привлекает внимание, делает заголовок более

экспрессивным.

Артикль сохраняется лишь в тех случаях, когда его опущение может

привести к неверной смысловой интерпретации.

Vince Cable calls for mansion tax in next Budget

55

Винс Кейбл требует ввести в Англии налог на элитную недвижимость

Опущение глагола-связки to be в страдательном залоге (пассиве)

Опущение глагола-связки to be делает заголовок более информативным,

позволяет привлечь внимание. В русском языке это явление не имеет аналога.

235,000 Mini Coopers recalled over fire risk

235,000 Мини Куперов будет отозвано из-за опасности взрыва (опущение

глагола- связки will be)

В английском языке распространено использование пассивной конструкции.

Но в русском языке пассивная конструкция не является столь нейтральной, как в

английском, поэтому ее использование гораздо более ограничено:

At least two killed as three buildings collapse in Rio de Janeiro

В Рио-де-Жанейро обрушились три здания: погибли как минимум 2 человека

Отсутствие вводящего глагола при цитировании

Для заголовков характерны цитаты, которые могут быть выражены как

прямой, так и косвенной речью.

Опущение глагола, вводящего цитату, используется в связи с экономией

пространства. Такой прием также делает заголовок более емким и информативным.

В таких случаях пишется лишь имя автора и сама цитата. В русском языке также

допускается опущение глагола, вводящего цитату, однако, в отличие от

английского языка, допускающего ссылку на автора как в начале, так и в конце

заголовка, в русском языке вначале пишется имя автора цитаты, а затем сама

цитата:

I´m too old for marriage: Oprah Winfrey

Опра Уинфри: «Я слишком стара для замужества»

2. Временные формы глагола

Когда речь идет о событиях, происшедших в недавнем прошлом, обычно

используется настоящее неопределенное время.

На русский язык такие заголовки переводятся обычно прошедшим

временем:

Pakistan blocks US envoy visit: official

Пакистан отказался принять американского дипломата

Будущее действие часто передается с помощью инфинитива:

56

При переводе заголовков такого типа на русский язык употребляется глагол

в будущем времени, настоящего времени со значением будущности или же

безглагольным заголовком.

Lloyds Banking Group to cut 700 jobs

Банковская группа Lloyds Banking Group сократит 700 рабочих мест

Japan´s NEC to slash 10,000 jobs

Японская компания NEC планирует сократить 10 тысяч сотрудников

(При переводе этого заголовка на русский язык используется глагол настоящего

времени со значением будущности.)

Стилистические особенности английских газетных заголовков и их передача

при переводе

1. Разговорно-фамильярный характер английских заголовков

Для английского читателя такой разговорно-фамильярных характер

заголовков является нормой и не бросается в глаза. Однако на русского читателя

из-за своей необычности он произведет куда большее впечатление. Поэтому при

переводе таких заголовков необходимо учитывать особенности русского газетно-

публицистического стиля:

EU to slap fresh sanctions on Syria

Новые санкции ЕС в отношении Сирии

Say hello to intelligent pills

Разработана «интеллектуальная» пилюля

2. Экспрессивность

Англоязычные заголовки характеризуются большей экспрессивностью,

нежели русскоязычные. Поэтому необходимо учитывать эту экспрессивность

лексических и грамматических средств и переводить англоязычные заголовки так,

чтобы они были доступны пониманию русского читателя:

After EU "Yes", Croatia needs reforms

Хорватия на пороге в ЕС: необходимы реформы

(Английский газетный заголовок экспрессивен за счет своего разговорного

характера. Для того, чтобы предать русскому заголовку эту экспрессивность,

используется фразеологизм « на пороге ч-л./к-л.»)

57

3. Сжатый, отрывистый ритм заголовка

Английские заголовки, вследствие стремления к краткости и лаконичности, имеют

более сжатый, отрывистый ритм, чем русские заголовки:

Obama Drastically Cuts Military; Sparks Heated Debate in Congress

Решение президента Обамы о сокращении численности вооруженных сил

вызвало бурные прения в Конгрессе

4. Для заголовков также характерны цитаты, которые могут быть

выражены как прямой, так и косвенной речью.

5. Многие заголовки английских и американских газет построены в виде

вопросов.

(Составлено по материалам статьи «Особенности перевода заголовков английской

прессы» Глухова Ю.В., Привалова Ю.В.)

Exercise № 21

Interpret the meaning of each of the following headlines.

Pay special attention to the most common grammar exceptions found in newspaper

headlines.

Manufacturing surprising bright spot in US Economy

Time for a double dip?

Sticky patch or meltdown?

Footing regained, for now

You Call This a Recovery?

US Auto Industry to Post Good Sales Year

Making a success of failure

Italy cars: Emerging giant?

Unemployed, and Likely to Stay That Way

Economic recovery here to stay? Conference Board indicators rise

India rising, falling, stumbling, speeding

U.S. to seek trade action against China on autos

Once a Great Flop, Now Sold for Billions

Mayor to Open Shopping Mall

Profits, but no jobs

Oil pressure rising

58

Exercise № 22

Make predictions. Guess what the articles under the following headlines can be about.

U.S. economy downshifts to lower gear

America’s economy battles uncertainty, both home-made and imported

Turbocharged Germany

More 'green shoots' keep Wall Street upbeat.

Lower, not hire

Car sales: cloudy today, sunny tomorrow

Rising from the ashes in Detroit

Detroit Goes From Gloom to Economic Bright Spot

Oil climbs to near $76 on economic indicators

Tech Companies Go Shopping Abroad

American made ... Chinese owned

The United States of ... China?

TEXTS FOR ORAL TRANSLATION

TEXT 1

Translate the article into Russian orally.

U.S. industrial output falls, signals weak first-quarter GDP growthU.S. industrial production fell more than expected in March as manufacturing

output dropped by the most in a year and mining maintained its downward trend, the

latest indication that economic growth braked sharply in the first quarter.

Economists say a combination of temporary factors, including an ongoing

problem with the model the government uses to smooth the data for seasonal

fluctuations, has accounted for lower growth in the first quarter.

Industrial production has fallen in six of the last seven months. Industrial

production fell at an annual rate of 2.2 percent in the first quarter after decreasing at a 3.3

percent pace in the fourth quarter. Industrial capacity use in March fell to its lowest level

since August 2010.

59

The report joined data on retail sales, business spending, trade and wholesale

inventories in suggesting that economic growth slowed to crawl at the turn of the year.

The industrial sector has been undermined by a slowing global economy and

robust dollar, which have eroded demand for U.S. manufactured goods.

It is also being weighed down by lower oil prices that have undercut capital

investment in the energy sector, as well efforts by businesses to reduce an inventory

overhang. But there are signs the worst of the industrial sector downturn is over.http://www.reuters.com, April 15th, 2016


to brake - тормозить, ограничивать, препятствовать, тормозиться

industrial capacity use – загрузка промышленных предприятий

retail sales - объем розничных продаж

wholesale inventories – объем товарно-материальных запасов в оптовой

торговле

robust – сильный, активный, динамичный

to erode – разрушать, ослаблять, уменьшать

to undercut –1) сбить, ослабить, 2) сбить цену, продавать по более низкой цене

capital investment – капиталовложения

inventory overhang – избыток, излишек ТМЗ

TEXT 2


Greek economy keeps on crumblingGreece’s economy shrank in the first three months of 2012, the 13th contraction

in the past 14 quarters as policy makers struggled to stay in the euro.

Gross domestic product dropped 6.2 percent from a year earlier in the first quarter

after contracting 7.5 percent in the fourth quarter of 2011, the Athens-based Hellenic

Statistical Authority said in an e-mailed statement today. The figure is based on non-

seasonally adjusted data. The agency didn’t provide a seasonally adjusted figure.

The European Commission forecasts Greece’s economy will contract 4.7 percent

this year, its fifth year of a recession compounded by spending cuts and tax increases.http://www.reuters.com, June 8th, 2012

60


to crumble – обрушиться, разрушаться, дробиться, распадаться

to shrink (shrank, shrunk) – сокращаться

spending cut – сокращение расходов/ассигнований


объем промышленного производства; тенденция к снижению; сглаживать сезонные

колебания; в годовом исчислении; замедление темпов роста мировой экономики;

спад в секторе промышленности; снижение ВВП; лица; ответственные за

выработку экономической политики; сократить капиталовложения; снижение цен

на нефть; предоставить данные без учета сезонных колебаний; экономический

прогноз; повышение налогов; самое значительное сокращение ВВП за десятилетие.

TEXT 3


UK economic recovery to continue into 2016, forecasts OECDBritain’s economic recovery will continue into 2015 and 2016, driven by

consumer spending and business investment, according to the Organisation for Economic

Co-operation and Development.

The Paris-based thinktank said high job creation had fuelled UK growth, which it

forecasts at 3% this year. The OECD is predicting growth of 2.7% in 2015 and 2.5% in

2016.

“Private consumption has been the main engine of the expansion, amid strong job

creation, and business investment continues to recover strongly, supported by

diminishing uncertainty,” the OECD said in its latest economic outlook report.

UK export growth has been weak so far, the organisation noted. It said exports

could weaken further if eurozone growth comes in below expectations.

Wage growth – which has been unexpectedly weak in 2014 – should start to pick

up, it said, adding: “Stimulating retraining and encouraging migration in occupations

where shortages arise would reduce labour mismatches and support balanced growth

through higher productivity.”

61

https://www.theguardian.com/business/oecd

The OECD cautioned however that if productivity does not recover as expected, it

could translate into weaker UK growth.

“Robust productivity is an essential condition for strong and sustainable growth,

and uncertainty over its recovery is a major risk to the projection.”The Guardian, November 25th, 2014


a thinktank – «мозговой» центр, аналитический центр

to fuel – стимулировать, способствовать

to diminish – уменьшать, убавлять, сокращать

outlook – перспектива, прогноз

so far – пока, до настоящего времени, до сих пор

mismatch – несоответствие, расхождение

TEXT 4


China Inflation Rate Steady for Third Straight MonthBEIJING – China’s consumer-inflation rate held steady in April, giving the

central bank more leeway to ease monetary policy as the world’s second-largest economy

battles weak demand.

The National Bureau of Statistics reported Tuesday that China’s consumer-price

index rose 2.3% from a year earlier in April, unchanged for the third consecutive month.

The CPI figure undershot a median 2.4% gain forecast by 15 economists in a survey by

The Wall Street Journal.

China’s economy expanded by 6.7% in the first quarter, its slowest quarterly pace

since 2009, bolstered by record credit expansion and ramped-up stimulus spending.

Vegetable and pork prices remained relatively high after the February Lunar New

Year holiday, in part due to bad weather and a shortfall in the number of sows and piglets

produced by farmers.

On the producer side, too many Chinese factories pumping out more goods than

buyers have appetite for has left manufacturers in a four-year battle with deflation, which

raises the cost of paying back debt. Beijing recently announced plans to cut

62

overproduction in the steel and coal industries by around 10% over five years, although

industry analysts say more is needed to better balance demand and supply.The Wall Street Journal, May 10th, 2016


leeway – свобода действий

to ease monetary policy – проводить более либеральную денежно-кредитную

политику

ant. to tighten

median forecast – средний /усредненный прогноз

to undershoot – не дотягивать, не достигать, недостаточно расти

to bolster – стимулировать, поддерживать, активизировать

credit expansion – рост объемов кредитования

stimulus spending – бюджетное стимулирование

shortfall – дефицит, нехватка; снижение. уменьшение

overproduction – перепроизводство

demand and supply – спрос и предложение


экономическое оживление; потребительские расходы; ОЭСР; создание новых

рабочих мест; перспективы развития экономики; низкие темпы роста заработной

платы; способствовать росту; основная движущая сила роста; личное потребление;

рост объемов экспорта; поощрять миграцию рабочей силы; несоответствие между

потребностями в рабочей силе и ее предложением; рекордный рост объемов

кредитования; привести в соответствие спрос и предложение; перепроизводство

товаров; возобновление роста производительности труда; темпы инфляции

потребительских цен; третий месяц подряд; погашать долг.

63

TEXT 5


Indonesia first-quarter GDP growth disappoints, but recovery hopes

intactIndonesia reported lower than expected growth in the first quarter, but many

economists still expect enough of a rebound this year that the country can avoid further

slowing and grow more than 5% in 2016.

The statistics bureau said on Wednesday that Southeast Asia's largest economy

expanded an annual 4.92% in the January-March quarter, below the median 5.05% in a

Reuters poll and the October-December pace of 5.04%.

Growth weakened for the fifth straight year in 2015, to 4.8%, as poor commodity

prices, contracting exports, tepid investment and waning consumption together with a

slowdown in its key trading partner, China, produced the lowest growth rate since 2009.

But the economy gained some momentum in the second half of last year boosted

by government spending.

The bureau said a major reason for slower growth was a drought worsened by the

El Nino weather phenomenon, which hurt crop output.

Darmin Nasution, chief economics minister, said another reason was slowing loan

growth.

Realising Indonesia cannot still rely on natural resources for growth, President

Joko Widodo has worked to expand its weak manufacturing sector. The Finance Ministry

has offered tax incentives and promised a cut in corporate income taxes.

The government's target for growth this year is 5%, while the central bank's latest

outlook was 5.2-5.6%.

President Joko Widodo had promised to lift annual growth to 7% on average.http://www.reuters.com , May 4th, 2016.

NOTES

El Nino weather phenomenon - an abnormal weather pattern that is caused by the warming of the Pacific Ocean near the equator. This occurs when the normal trade winds weaken (or even reverse), which lets the warm water that is usually found in the western Pacific flow instead towards the east. Эль-Ниньо (от испанского «малыш, мальчик») — это колебания температуры поверхностного слоя воды в экваториальной части Тихого океана, при которых область нагретых вод смещается к востоку.

64


intact – неизменный, в неизмененном состоянии, невредимый

rebound – рост после снижения, отскок, восстановление

commodity – сырьевой товар

tepid – чуть теплый, умеренный

to wane – убывать, ослабевать

to gain momentum – расти, увеличиваться, наращивать темп, набирать ход

ant. to lose momentum

drought – засуха

natural resources – природные ресурсы

incentive – стимул, побудительный мотив, льгота

loan – ссуда, кредит

income tax – подоходный налог, налог на прибыль (компании)

to lift – повышать, увеличивать

TEXT 6


British manufacturing sees some green shoots in the face of external

headwinds and ongoing export concernsUK factory output stabilised over the three months to April, according to a survey

published today, although export orders remain a cause for concern for manufacturing

firms.

The CBI's gauge of factory output ticked up to plus 1 from minus 2 in the three

months to January, its best reading since July last year.

But talk of a mini-revival was slightly dented as the report noted that

manufacturers faced 'sizeable external headwinds', such as a slowing global economy and

uncertain political factors .

Nevertheless one bright spot in today's CBI survey showed that firms expect

demand to lift over the coming quarter, underpinned by a weakening pound in recent

months that is expected to boost export orders.

65

The euro has risen against the pound by over 5% so far this year, primarily due to

worries over the possibility of a 'Brexit' vote in the upcoming EU referendum which has

weakened the UK currency.

Economists argue that an improvement in foreign orders is key to sustaining the

UK's economic recovery, rather than relying on domestic consumer spending.

The UK growth figures are expected to show a marked slowdown in growth after

business surveys pointed to companies delaying spending and hiring ahead of the Brexit

vote.

Official data released earlier this month showed output in Britain's manufacturing

sector fell at its fastest pace, in annual terms, since mid-2013.

Other official figures recently also showed a drop in retail sales suggesting

consumers, the main drivers of the UK’s post-crisis recovery, were also cutting back as

pay growth flatlines and government spending cuts bite. http://www.thisismoney.co.uk/money/markets/, April 25th, 2016

NOTES

‘Brexit’ vote – референдум по вопросу выхода Великобритании из состава ЕС


green shoots - первые наметившиеся признаки экономического оживления,

подъема

headwind – препятствие, сдерживающий фактор; встречный ветер

in the face of – вопреки, несмотря на

to dent – ослаблять, подрывать, наносить ущерб

to underpin – подпирать, поддерживать, подкреплять

to argue – утверждать, заявлять, приводить доводы

to suggest – предлагать, наводить на мысль, давать основание предположить,

говорить о

to flatline – оставаться неизменным, на том же уровне

government spending – государственные расходы, бюджетные расходы

66


рост ВВП за первый квартал; дальнейшее замедление темпов экономического

роста; пятый год подряд; снижение уровня потребления; потребительские расходы;

сектор обрабатывающей промышленности; рост курса евро по отношению к фунту

стерлингов; рост объемов зарубежных заказов; существенное замедление темпов

роста; сокращение объемов экспорта; основной торговый партнер; замедление

роста объемов кредитования; налоговые стимулы (льготы); повысить годовые

темпы экономического роста в среднем до 7%; объем промышленного

производства; за три месяца по январь включительно; замедление темпов роста

мировой экономики; значительные внешние проблемы; вызвать снижение курса

фунта стерлингов; зависеть от уровня потребительских расходов на внутреннем

рынке; ежегодно/за год; официальные данные; сокращение бюджетных расходов.

TEXT 7


German Economy, Once Europe’s Leader, Now Looks Like LaggardThe downshift in the emerging markets is leaving Germany vulnerable — and, by

extension, Europe.

As many businesses in the region struggled just to tread water in recent years,

German companies prospered by selling the goods and technology that emerging

countries needed to become more modern economies. As they did, Germany’s strength

served as a counterweight to the economic malaise, financial turmoil and Greek debt

drama that dragged down many European countries.

Now, Germany, which accounts for the largest share of the European economy, is

looking like the laggard. Compared with the economies of other countries in the region,

Germany’s has been more deeply tethered to emerging markets. And the political climate

is only adding to the uncertainty, as Germany deals with a wave of migrants and a

potential exit of Britain from the European Union.

Against that backdrop, the country’s export engine is sputtering, while business

confidence is eroding.

As exports have slipped, the mood in Germany has turned glum.

67

Pessimists outnumbered optimists in February for the first time since late 2014,

according to the survey of business managers by the Ifo Institute in Munich, which is

considered a reliable predictor of the growth. Although there was a small uptick in

March, manufacturers remain wary. If confidence remains weak, they are likely to cut

back plans to invest in new equipment or hire people, prompting growth to slow.The New York Times, April 5th, 2016

NOTES

to tread waters (idiom) – 1) держаться на плаву 2)топтаться на месте, буксовать


to struggle – 1) находиться в трудном положении 2) прилагать усилия 3) с

трудом удаваться

a laggard – отстающий

to tether – связывать, привязывать, сковывать

a downshift – снижение, замедление темпов

vulnerable – уязвимый, незащищенный

malaise – неблагоприятное состояние/ситуация

turmoil – потрясение, нестабильность, кризис

to drag down –ослаблять, тормозить

to sputter – давать сбой, выдыхаться

to outnumber – численно превосходить, превышать количественно

uptick – рост, поступательное развитие, увеличение

wary – осторожный, осмотрительный

TEXT 8


Why recovery is now back in VogueSome see signs of hope in the fact that we are scoffing less chocolate. In the

depths of recession, consumers turn to affordable treats such as Kit Kats, Dairy Milks

and Snickers.

In 2009, the darkest and most bitter year for Ireland Inc, the average Irish person

gobbled up 260 bars, but that has fallen to 230.

68

Such a drop in the chocolate index is seen as a sign of economic recovery, but

that is not the only indicator that things are looking up, at least in Dublin. In some

pockets of south Co Dublin, it is as if the recession and the crash had never happened. A

typical semi-detached house goes on the market, and up to 60 people turn up promptly to

view it. We could be back in 2001 as prices resume their upward curve. It's a far cry from

the situation in many country areas where this week's Central Statistics Office survey

showed property prices continue to drop. Here there are fewer green shoots.

The mini property boom is largely a Dublin phenomenon, but economists see it as

a sign of recovery.

The optimistic signs are not confined to property. Growing tourism and surging

hotel bookings, the continued growth of hi-tech companies, the good weather and a small

but steady decline in unemployment are contributing to a slightly more positive mood.

New car sales are still a long way off the peak of the boom, but luxury marques

such as Audi and BMW have enjoyed an increase this year. Dublin Airport is now

becoming busy again, and traffic in July was up 7% on last year.

Economist Anthony Foley refuses to go overboard with talk of a return to the

Celtic Tiger years, preferring to talk of "cautious optimism". He sees signs of spending

power in the economy with the continued popularity of events such as music concerts.

Economists hope the slow recovery in Dublin will spread to the rest of country.

According to Mr Foley, we are still not out of the woods yet, but at least in the

distance we can see the edge of the forest.

NOTES

1. Ireland Inc – компании Ирландии

2. Celtic Tiger economy - A term given to Ireland in the 1990s during an average economic growth rate of 6.5 percent. The first boom ended when the Internet bubble burst in 2001. A second boom in Ireland in 2004 is referred to as the Celtic Tiger 2. This ended in 2008. - Прозвище «кельтский тигр» Ирландия получила еще в 1994 году, когда экономист инвестиционного банка Morgan Stanley Кевин Гарднер отметил таким образом высокие темпы роста в этой стране, сопоставимые с показателями восточноазиатских «тигров» (Южной Кореи, Сингапура, Гонконга и Тайваня). Период бурного роста, низких темпов инфляции и снижения уровня безработицы уже в конце 1990-х получил название «ирландское экономическое чудо».

3. …luxury marques such as Audi and BMW have enjoyed an increase this year - в таких предложениях сказуемое, выраженное глаголом enjoy, как правило, переводится словами “отмечалось”, “произошло”, “наблюдалось”. Если за

69

таким сказуемым идет дополнение в виде существительного, обозначающего “увеличение” чего-то, то в этом случае глагол опускается, а сказуемым становится это дополнение.


scoff – уплетать, лопать, жадно есть

treat – угощение, лакомство

to gobble – заглатывать, уплетать, пожирать

upward curve – траектория роста

a far cry – большая разница, совсем не похоже

property prices – цены на недвижимость

to be confined to – ограничиваться, придерживаться

to go overboard – переборщить, перегнуть палку

spending power – покупательная способность


замедление темпов экономического роста в странах с развивающимся рынком;

тормозить экономическое оживление; вкладывать средства в новое оборудование;

низкий уровень потребительских ожиданий; среднестатистический житель

Ирландии; первые признаки экономического оживления; экономический спад;

возобновить тенденцию к росту; устойчивое снижение цен на недвижимость;

объем продаж новых автомобилей.

TEXTS FOR TRANSLATION IN WRITING

TEXT 9

Translate the article into Russian in writing.

Rite of Spring: U.S. Economy Warms Up After Winter’s ChillFirming inflation, industrial output and housing market point to solid growth rebound

Economic gauges released Tuesday showed a pickup in industrial output,

continued momentum in the housing sector and firming inflation all pointing to stronger

—though still unspectacular—growth in the second quarter. That joined other recent data

showing a rebound in retail sales, rising consumer confidence and continued job gains.

70

Federal Reserve officials, wary of volatility in financial markets and weakness

overseas, have held short-term interest rates steady this year after raising them in

December from near zero. A second-quarter rebound for domestic growth and rising

inflation, if sustained, could help push officials to raise rates in the coming months.

Gross domestic product, the broadest measure of goods and services produced

across the U.S. economy, expanded at a 0.5% annual rate in the first three months of

2016. But growth appears poised to accelerate.

Since the recession ended, first-quarter GDP growth has frequently come in

weak, followed by a stronger second quarter. This year may have been no exception, and

Tuesday’s reports reinforced the picture of resumed modest growth in the overall

economy.

The Fed said industrial production—a measure of everything made by factories,

utilities and mines—surged 0.7% in April, the biggest jump for a single month since

November 2014.

Manufacturing production as measured by the Fed has been flat since January, a

sign that the factory sector remains weakened after more than a year of pressure from

falling oil prices and a strong dollar. But the situation is no longer deteriorating.

The consumer-price index, which measures what Americans pay for everything

from fresh fruit to footwear, increased a seasonally adjusted 0.4% in April from the prior

month after rising 0.1% in March, the Labor Department said Tuesday. That was the

largest one-month increase since February 2013. Business and academic economists

surveyed by the Journal this month estimated the U.S. faces a 20% chance of tipping into

recession in the next year, down only a bit from a few months earlier. The Wall Street Journal May 17th, 2016


gauge – показатель, мера, мерило, критерий

to gauge – измерять, оценивать

housing market – рынок жилой недвижимости

rebound – рост после снижения, отскок, восстановление

momentum – импульс, толчок, наступательный порыв

consumer confidence – потребительское доверие, уверенность потребителей,

потребительские настроения

71

short-term interest rates – процентные ставки по краткосрочным кредитам

to deteriorate – ухудшать(ся), портить(ся)

TEXT 10

Translate the article into Russian in writing. Comment on the headline.

Grossly Deceptive PlansChina’s obsession with GDP targets threatens its economy

On January 19th China declared that its gross domestic product had grown by

6.9% in 2015, accounting for inflation—the slowest rate in a quarter of a century. It was

neatly within the government’s target of “around 7%”, but many economists wondered

whether the figure was accurate. But beyond all the (justifiable) doubts about the figures

lies another important question. That is: why does China have a GDP target at all?

It is the only large industrial country that sets one. Normally central banks declare

specific goals for things like inflation or unemployment. The idea that a government

should aim for a particular rate of output expansion, and steer the economy to achieve

that, is unusual. In the case of China it is inconsistent with the government’s own oft-

repeated mantra that it is the quality of growth that matters, not the quantity.

In the past, for all but three of the years between 1992 and 2015, China’s growth

was above target, often by a big margin. Now, however, the economy is slowing. This is

inevitable: double-digit growth is no longer achievable except at dangerous cost (total

debt was nearly 250% of GDP in the third quarter of 2015). But the government is

worried that the economy may slow too fast, and that this could cause a destabilising

surge in unemployment. So it has been ramping up investment, and goading local

governments to do the same by setting a high growth target.

In a country so large, central leaders are always fearful of losing their grip on far-

flung bureaucrats: setting GDP targets is one means by which they believe they can

evaluate and control those lower down. As Chinese leaders see it, the target provides

numerical evidence for their proclaimed efforts to make China rich.

President Xi Jinping apparently believes that a growth target is necessary in order

for China to become a “moderately prosperous society” by 2021, the 100th anniversary

of the Communist Party’s founding. The paradox is that by fixating on growth targets

China may end up badly damaging its economy, rather than fulfilling its goals.

72

The Economist, January 30th, 2016


accurate – точный, достоверный

double-digit growth – рост, выраженный двузначным числом

inconsistent – несовместимый, противоречащий, несоответствующий

to ramp up – повышать, увеличивать, наращивать

to goad – побуждать, подстрекать

TEXT 11


Taking Europe’s pulseThe recovery in the 19-strong euro area is continuing but it is nothing to write

home about. Growth had picked up to 0.5% in the first quarter of 2015 (compared with

the final quarter of 2014), the strongest performance since the upswing started in the

spring of 2013. Since then, however, the pace of expansion has slackened, to 0.4% last

spring and an average quarterly rate of 0.3% in the second half of last year. Indeed, euro-

zone GDP in the final quarter of 2015 was still below its pre-crisis peak of early 2008

whereas America’s was almost 10% above its peak of late 2007.

The sluggish pace of the recovery has been especially disappointing given the fact

that the euro area has benefited from a double fillip. First, the fall in energy prices caused

by the collapse in the oil price acted in much the same way as a tax cut, boosting

consumer spending—the main engine of the recovery. Second, the European Central

Bank has carried out quantitative easing since March 2015.

The outlook for growth in 2016 now looks feebler and more uncertain following

the sharp falls in European stock markets. The slowdown in China and emerging

economies, which account for a quarter of euro-zone exports, will also harm the recovery

by hurting exporting companies. Germany will be particularly affected since the Chinese

market has been a lucrative one for its exports of capital goods and luxury cars. Despite

these brakes a recovery of sorts should remain intact, for three reasons. Renewed declines

in oil prices will further boost household budgets. The European Central Bank is poised

73

to loosen monetary policy still further. And spending on refugees, especially in Germany,

will provide a modest fiscal stimulus.The Economist, February 18th, 2016

NOTES

1. nothing to write home about (idiom) - not something that is especially good or exciting; mediocre; not as good as you expected – ничего особенного, так себе.

2. given – учитывая, принимая во внимание

3. quantitative easing - an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply – либерализация денежно-кредитной политики, по сути, увеличение объема денежной массы в обращении; т.н. «количественное смягчение».


upswing – рост, подъем

to slacken – замедлять(ся), ослабевать

sluggish – медленный, вялый, пассивный

fillip – стимул, толчок

feeble – слабый, немощный, характеризующийся низкой интенсивностью

lucrative – прибыльный, выгодный, высокодоходный

to loosen monetary policy – проводить более либеральную денежно-кредитную

политику

fiscal stimulus - налогово-бюджетное стимулирование

CONSOLIDATION

Exercise № 23

Translate the sentences into English.

1. The economy of the 16 countries that use the euro shrank by a massive 2.5% in the

first quarter as the recession tightened its grip all across the continent.

2. Gross domestic product, the value of all goods and services produced, rose at a 1.9%

annualized rate following the prior quarter’s 3.5% gain that was the largest increase

in two years, Commerce Department data showed Friday in Washington.

74

3. South Africa’s economy fell into a recession for the first time since 2009 after it

contracted for a second straight quarter in the first three months of the year.

4. South Africa’s growth slowed to 0.3% last year, the lowest rate since 2009, after

lower commodity prices, the effects of the prior year’s drought and weaker demand

for locally made goods weighed on output. Unemployment rose to a 14-year high in

the first quarter.

5. There’s also debate on two consecutive quarters of contraction as an appropriate

definition of recession.

6. The Philippine economy grew at its fastest pace in three years last quarter,

underscoring the nation’s resilience to global risks as investment surged and

consumers spent more.

7. Consumer spending, the biggest part of the economy, climbed 2.5%, in line with

projections.

8. Germany’s economy expanded 0.6 % in the first quarter on the back of stronger

domestic demand and firming global trade.

9. After-tax incomes adjusted for inflation climbed at a 1.5% annual rate, a three-year

low.

10. Gross domestic product rose at a 3.5% annualized rate in the three months ended in

September, compared with a prior estimate of 3.2%, Commerce Department figures

showed Thursday.

11. The increase in household purchases, which account for about 70% of the economy,

followed the prior quarter’s 3% jump.

12. German unemployment fell to a new record low as Europe’s largest economy

continued to power ahead.

13. The number of people out of work slid by a seasonally adjusted 30,000 to 2.6 million

in March, and the rate dropped to 5.8% from 5.9%, data from the Federal Labor

Agency in Nuremberg showed on Friday.

14. The industrial sector has been undermined by a slowing global economy and stronger

dollar, which have eroded demand for U.S. manufactured goods.

15. Weaker prices for oil and other commodities will continue to weigh on mining for

some time, economists predict.

16. The Mexican peso, which plummeted immediately after Mr Trump’s election because

of fears of a potential trade war, has recovered.

75

17. Household purchases, which account for almost 70 percent of the economy, grew at a

3 percent annualized rate, stronger than the 2.8 percent pace previously estimated.

Sluggish growth is the result of sluggish demand, accompanied by falling prices as

firms compete at the expense of profit margins.

18. As for Australia’s recession risk, slumps have traditionally come from the Reserve

Bank of Australia slamming on the brakes to try to rein in inflation – as before 1991

when interest rates hit 18 percent.

19. Growth in services, the dominating sector of India’s economy, declined to a four-

month low in April.

20. As people get richer, they want more quality of life.

21. The vast majority of the domestic manufacturing sector was more productive in 2014

than a year earlier, according to a Labor Department report released Tuesday, as

automation allows a thinning industrial workforce to maintain relatively consistent

output.

22. U.S. industrial production fell more than expected in March as output declined

broadly, the latest indication that economic growth braked sharply in the first quarter.

23. The Fed has kept rates at low levels since the financial crisis to boost economic

activity by encouraging borrowing and risk-taking.

24. The Fed aims to maintain moderate inflation, rather than price stability, since that lets

the Fed cut interest rates more sharply during an economic downturn.

25. The global economic recovery is gaining momentum as businesses ramp up

production, though policy makers must guard against imposing new trade barriers,

IMF Managing Director Christine Lagarde said.

26. The Fed also wants to avoid deflation, or price declines, because as things become

cheaper each day, consumers and businesses postpone buying and economic activity

shrinks more.

27. Less investment now will eventually mean lower production in the future and tighter

supply.

76

VOCABULARY CHECK

Exercise № 24

Translate the following sentences from Russian into English, using the active vocabulary.

1. В период с 1979 по 2010 года рост ВВП Китая с учетом инфляции составлял в

среднем 10% в год.

2. По данным агентства Bloomberg, в июле уровень безработицы в Южной Корее

снизился до минимальной отметки за последние 7 месяцев.

3. Во Франции располагаемый доход домашних хозяйств вырос во втором

квартале на 1,2% в годовом исчислении.

4. Потребительские расходы, на долю которых приходится более половины ВВП,

снизились на 0,7% во втором квартале по сравнению с первым, а рост

инвестиций замедлился до 0,6% с 1,2%.

5. Как сообщает New York Times, ФРС США пересмотрела в сторону понижения

прогноз по темпам инфляции с 2,2% до 1,9%.

6. В 1950 году ВВП Японии на душу населения, рассчитанный по паритету

покупательной способности (ППС) составлял пятую часть от ВВП США.

7. Несмотря на различные стимулы, предлагаемые производителями, объем

розничных продаж в США в апреле 2012 года увеличился всего на 0,1%, что

свидетельствует о низкой покупательной способности населения.

8. Целый ряд факторов послужил причиной резкого сокращения объема

розничных продаж автомобилей на рынке США, и, прежде всего,

стремительный рост цен на бензин.

9. Доля личного потребления в промышленно развитых странах составляет

порядка 65% от ВВП, тогда как в странах с развивающимся рынком этот

показатель гораздо ниже – в Китае он не превышает 22%, а в Индии – 41%.

10. С целью повышения темпов экономического роста в стране правительство

разработало программу мер налогово-бюджетного стимулирования.

77

TOPICAL VOCABULARY UNIT I

1. economy

emerging economies

industrialized economies (advanced economies)

economies of scale

real economy

economic

economical

economics

2. indicator

leading indicator

lagging indicator

coincident indicator

to track indicators

3. survey

4. target figure

syn. goalpost

5. policy makers

6. to intervene

intervention

7. business

8. industry

9. production

industrial production

10. manufacturing

11. mining

12. utilities

13. inventories

14. rate

growth rate

unemployment rate

profit rate

interest rate

78

inflation rate

exchange rate

birth rate

at an annual rate

syn. annualised

15. trend

syn. tendency

16. business cycle

syn. economic cycle

17. slowdown

18. boom

boom-bust-cycle

19. downturn

syn. downswing

20. recession

double-dip recession

21. depression

the Great Depression

22. recovery

to recover

23. prosperity

to prosper

24. expansion

to expand

25. contraction

to contract

26. gain (s)

27. performance

28. pattern

seasonal pattern

29. to adjust

seasonal adjustment

adjusted for inflation

79

30. to fluctuate

fluctuation

31. average

on average

32. GDP /gross domestic product

real GDP (adjusted for inflation)

nominal GDP

GDP per person/head/ capita

33. GNP/gross national product

34. output

35. income

real income

36. household

household income

37. consumer

consumer demand

38. inflation

inflationary pressure

39. deflation

40. purchasing power

syn. purchasing capacity

41. Producer Price Index (PPI)

42. Consumer Price Index

43. to sustain

sustainable

sustainability

44. to swing (swung, swung)

45. to affect

46. to revise(upwards/downwards)

47. standard of living/living standard

48. capital goods/consumer goods

49. to account for

80

50. for the second straight month

for the second consecutive month, for the second month in a row, for the

second month running

51. to forecast

forecast

forecaster

52. a decade

53. the Federal Reserve

54. robust

55. a drag

56. economic cooling

57. bounce-back

58. prospects (for)

59. to stagnate

stagnation

60. incentive

61. gauge

to gauge

62. to regain the lost ground

63. to boost

syn. to bolster

64. double-digit growth

65. green shoots

66. to ease monetary policy

ant. to tighten

67. money supply

68. hard/soft landing

69. overcapacity

ОПИСАНИЕ ТЕНДЕНЦИЙ, КОЛЕБАНИЙ НА РЫНКЕ

Going up verbs to advance, to climb, to increase, to rise, to grow, to gain ground, to head north, to improve, to go up

81

nouns an advance, an increase, a rise, a growth, a climb, a hike, an upturn

Going down verbs to decline, to drop, to fall, to head south, to lose ground, to retreat,

to slide, to go down, to contract, to shrink

nouns a decline, a drop, a fall, a retreat, a slide, a downturn

These words used to talk of an upward or downward trend do not in themselves indicate

by how much indicators have gone up or down.

Going up by small or moderate amounts

v to edge ahead, to edge higher, to edge up, to firm

Going down by small

or moderate amounts

v to dip, to drift (lower), to ease, to edge down, to edge lower, to slip (lower)

n a dip, a drift, a slip

Going up

by large amounts

v to jump, to leap, to roar ahead, to roar up, to rocket, to shoot ahead,

to shoot up, to skyrocket, to soar, to surge (ahead)

n a jump, a leap, a surge

Going down

by large amounts

v to dive, to nosedive, to plunge, to plummet, to tumble

n a dive, a nosedive, a plunge, a tumble

Going down fast

by very large amounts

v to collapse, to crash, to crumble, to slump

n a crash, a collapse, a slump

No change v to remain stable, to level off, to stay at the same level, to remain constant, flat

to stagnate, to stabilize, to remain steady

Change of direction

v to peak, to reach a peak, to top out, to reach a low point, to bottom,

to bottom out, to recover, to rebound, to revive

The amount of increase or decline can also be indicated using these verbs:

v to double, to triple, to quadruple, to increase fivefold; to halve

82

UNIT TWO

THE THREE SECTORS OF THE ECONOMY

LEAD-IN


There are three main types of industry in which firms operate. These sectors form

a chain of production which provides customers with finished goods or services.

Primary production: this involves acquiring raw materials. For example,

metals and coal have to be mined, oil drilled from the ground, rubber tapped from trees,

foodstuffs farmed and fish trawled. This is sometimes known as extractive production.

Secondary production: this is the manufacturing and assembly process. It

involves converting raw materials into components, for example, making plastics from

oil. It also involves assembling the product, e.g. building houses, bridges and roads.

Tertiary production: this refers to the commercial services that support

the production and distribution process, e.g. insurance, transport, advertising,

warehousing and other services such as teaching and health care.

Industries in the primary sector include agriculture, commercial fishing, mining,

and the timber industry. Generally, the products produced in the primary sector are not

sold directly to households for final consumption but are sold to manufacturers as inputs.

A primitive economy will rely on the primary sector, economic development

allows more refinement of raw materials to produce goods and services with greater

value added.

Mining industry

Extractive or mining industry involves extraction of solid mineral resources from

the earth. These resources include ores, which contain commercially valuable amounts of

metals, such as iron and aluminum; precious stones, such as diamonds; building stones,

such as granite; and solid fuels, such as coal and oil shale.

The search for and discovery of mineral deposits is called prospecting, or

exploration. When a mineral deposit is found, it is studied to determine if it can be mined

profitably.

83

Any material that cannot be grown through agricultural processes, or created

artificially in a laboratory or factory, is usually mined.

Energy Sector

The reliance of virtually all industries on electric power and fuels means that all

sectors have some dependence on the Energy Sector. It is one of the largest, most

dynamic, and often most controversial industries in the world.

This sector includes companies involved in the exploration and development of

oil or gas reserves, oil and gas drilling, or integrated power firms. The energy industry is

very broad, but it can be divided into three primary categories:

1. Energy sources: fuels that are used to generate energy or power. These include

fossil fuels (coal, gas and oil), water, wind, solar, geothermal, and nuclear

sources. For the past 200 years, humans have depended on two primary sources

of energy: fossil fuels and hydropower (water), but these traditional sources of

energy are finite. Moreover, increasing conventional energy consumption is

creating pollution and causing global warming.

2. Forms of energy: how the energy is transmitted and distributed to customers. The

two primary forms of energy are electricity and heat.

3. End uses of energy: once the energy is generated it is primarily used for

transportation purposes, lighting, space conditioning (heating and cooling), and

for industrial processes.

Scientists and engineers work to develop energy sources and generation methods

that are renewable, eco-friendly and sustainable.

A renewable resource is a substance of economic value that can be replenished

simultaneously or in less time as it takes to draw the supply down. Some renewable

resources have essentially an endless supply, such as solar energy, wind, sea waves and

geothermal pressure. There are many incentives for using alternative energy. For

example, energy taxes put a surcharge on fossil fuels so that the prices of renewable

resources are more competitive and people will be more inclined to switch over.

Yet, even as the industry focuses on developing alternative fuel sources,

petroleum and natural gas companies continue to search for new sources of these

products and new ways for extracting them from previously difficult-to-access locations.

84

Manufacturing industry

The secondary sector includes manufacturing as well as the construction of

buildings and highways and utilities such as those that generate and distribute electricity.

Manufacturing is the process of converting raw materials and/or parts into

finished products suitable for use or consumption that can be sold in wholesale or retail

markets or exported for sale in other countries. It covers a wide range of industries, from

food and beverages to pharmaceuticals, iron and steel to textiles, as well as tobacco,

automobiles, aerospace, and petrochemicals and many others. All manufactured goods

fall under one of the following categories: durable or nondurable goods. Durable goods,

such as cars, airplanes, and large household appliances, may be used for a long time.

Nondurable goods, such as food, cosmetics, and clothing, are consumed more rapidly.

The manufacturing industry accounts for a significant share of the industrial

sector in developed countries. Final products can either serve as finished goods for sale

to customers or as intermediate goods used in the production process. Manufacturing

industries are important for an economy as they employ a huge share of the labour force

and produce materials required by sectors of strategic importance such as national

infrastructure and defence.

To produce any goods manufacturers have to make some inputs into production.

Usually economists distinguish four main factors of production: labour, capital, land and

entrepreneurship.

There are different types of manufacturing depending on the factor which

dominates in the production process. For example, production can be labour-intensive,

capital-intensive, knowledge-intensive and raw material intensive.

Any manufacturing process requires specific production facilities. These are

buildings, machinery and equipment which are used in the production process. And

certainly it needs people who will operate these facilities. They are called blue collars

and work in the workshops. There are also white collars who do not participate directly

in the production process and work in the office.

Any production process involves a series of links in a production chain. At each

stage value is added in the course of production. Adding value involves making a product

more desirable to consumers so that they will pay more for it. The manufacturing process

begins with the product design, and material specification from which the product is

made. These materials are then modified through manufacturing process to become the

85

required part. Later these parts or components are assembled in the workshops, and,

finally, finished goods are normally sent to the warehouse where they are stored pending

sale.

The expenses of the production process are called production costs. These can be

fixed costs, which do not depend on the output, such as rent, or variable costs, which do

change with the output, for example, raw material costs. Some costs can be either fixed

or variable, for example, wages of blue collar workers. Any business tries to cut costs

and maximize profit.

Goods which are produced at the factories, plants and mills are called

manufactured products. They can be of two main kinds: capital goods, such as machine

tools, which are used to produce other goods, and consumer goods, which are consumed

by final customers.

Some countries are called industrialized or industrially developed, which means

that they have a lot of factories, plants and mills with large capacity where the most

modern equipment is installed and the most advanced production techniques and know-

how are used. These countries have high level of labour productivity and efficiency of

machinery.

Services

The last but not least sector of the global economy is the service sector which is

comprised of firms offering ‘intangible goods’. Nowadays services account for about

64% of global GDP. In post-industrial economies they play increasingly important role.

The service sector primarily consists of transportation, messenger services and

warehousing; information services; banking and financial investment services;

accounting and insurance, rental and leasing services; administrative and technical

support; waste management; health care and social assistance; as well as entertainment

and recreation services.

A sector or industry characterized by high growth rates, high degree of

innovation, numerous start-ups and an abundance of venture capital funding is called a

“sunrise industry”. Examples of sunrise industries include alternative energy in the

period from 2003 to 2007, and social media and cloud computing in 2011 and 2012. A

mature industry that has little or no growth prospects and is becoming less important to

the economy is referred to as a “sunset industry”.

86

In the past 100 years, developed economies have seen a transition from a

manufacturing based economy to one where the ‘service sector’ or ‘tertiary sector’

dominates.


1. What are the three main sectors of economy? Which of them are mostly developed in

Russia?

2. What is mining industry? What role does it play in global economy?

3. Why is energy sector so important to the world economy?

4. What exhaustible energy sources are used today to generate power?

5. What are the advantages and disadvantages of major alternative sources?

6. What does it mean if a country is called industrialized? Can you name any

industrialized countries?

7. Describe the main stages of production process. What role do white-collars and blue-

collars play in it?

8. What types of manufacturing do you know? Which of them do you think is the best

one and why?

9. How are manufactured goods generally classified?

10. What role do services play in global economy? What are the main service sectors?

11. What do the terms “sunrise” and “sunset” industries imply?

12. Why is it important for a country to have a diversified economy?

13. Which new services have emerged and become popular of late?

14. What structural changes have been typical for the developed economies in the past

100 years?

ACTIVE VOCABULARY

1. agriculturesyn. farming

сельское хозяйство

2. mining (industry)syn. extractive industry

to minesyn. to extract

горный промысел, горнодобывающая промышленность

добывать, извлекать

3. to drill drilling

проводить буровые работы, бурить бурение, буровые работы

87

4. services to render/provide services

услуги оказывать / предоставлять

услуги

5. ferrous metalsant. non-ferrous metals

черные металлыант. цветные металлы

6. precious metals (stones) драгоценные металлы (камни)

7. raw materialssyn. crude materials

сырье

8. commodities сырьевые товары, биржевые товары

9. to sustain sustained

sustainable (syn. renewable)

поддерживать устойчивый, длительный,

долговременный, непрерывный, затяжной (slowdown)

устойчивый (рост), возобновляемый (о ресурсах)

10. deposit depletion of deposits

месторождение истощение запасов

месторождений

11. explorationsyn. prospecting

разведка (месторождений)

12. development освоение (месторождений)

13. resource(s)

natural resources

alternative (renewable) energy resources

ant. non-renewable, exhaustible resources

resource recovery and recycling

ресурс(ы), в т.ч. природные ресурсы, средства, источник(и) энергии, потенциал, запасы

природные ресурсы, полезные ископаемые

альтернативные (возобновляемые) источники энергииант. исчерпаемые, невозобновляемые ресурсы

добыча и вторичная переработка ресурсов

14. to replenish пополнять, восполнять

15. energetics энергетика

16. energysyn. power

atomic / nuclear energy / nuclear

энергоносители, энергоресурсы, энергия, электроэнергия

атомная энергия

88

power hydropower clean / green / environmentally

friendly electric energy solar energy thermal energy tidal energy wind energy fossil-fuel energy

to generate energy to transmit energy to distribute energy conventional energy

гидроэлектроэнергия экологически чистая энергия

электроэнергия солнечная энергия тепловая энергия энергия приливов и отливов энергия ветра минеральные (ископаемые)

энергоносители вырабатывать электроэнергию передавать электроэнергию распределять электроэнергию традиционные виды

энергоносителей

17. fuel fossil-fuels

solid fuels

топливо минеральное (ископаемое)

топливо твердое топливо

18. electricity электричество

19. power supply энергообеспечение, подача электроэнергии

20. power plant syn. power station

электростанция

21. crude oil (crude) oil shale

нефть (не прошедшая переработку) нефтяной сланец

22. petroleum нефть, углеводородное сырьё; бензин

23. gasoline бензин

24. energy-consuming syn. energy-intensive

энергоёмкий

25. energy-saving энергосберегающий

26. construction строительство

27. capacity 1) мощность, производительность (станка, оборудования)

2) способность, возможность (делать что-либо)

89

28. equipmentsyn. machinery

to install equipment

оборудование, оснащение

устанавливать оборудование

29. know-how умение, знание и опыт, секреты производства, ноу-хау

30. inputsyn. factor of production

фактор производства

31. production

capital-intensive production labour-intensive production knowledge-intensive production raw material intensive

production production costs production process production techniques

chain of production

1) производство, изготовление, добыча 2) выработка (напр. в день)

капиталоемкое производство трудоемкое производство наукоемкое производство ресурсоемкое производство издержки производства производственный процесс методы (способы, приемы)

производства производственная цепочка

32. productivity производительность (как правило, труда)

33. value added goods

value added white goods brown goods

товары с более высокой добавленной стоимостью

добавленная стоимость бытовая техника бытовая электроника

34. еfficiency производительность, эффективность (как правило оборудования)

35. productssyn. goods finished products

syn. manufactured products intermediate products

товары, продукция

готовая продукция

промежуточная продукция (полуфабрикат)

36. to design design (n)

проектировать, конструировать конструкция

37. facilities

to operate facilities

1) возможности 2) мощности (производственные) 3) оборудование, приспособления 4) здания, сооружения (заводов, фирм и т.п.) 5) услуги

управлять оборудованием

90

38. capital goods средства производства, товары производственного назначения, основной капитал

39. consumer goods durable consumer goods

syn. consumer durablesant. non-durable consumer goods

потребительские товары потребительские товары

длительного пользованияант. потребительские товары кратковременного пользования

40. entrepreneurship entrepreneur enterprise

предпринимательство предприниматель предприятие

41. blue collars производственные рабочие («синие воротнички»)

42. white collars офисные работники, служащие, инженерно-технический персонал («белые воротнички»)

43. (work)shop цех, мастерская

44. components комплектующие, детали

45. spare parts запасные части

46. supplier to supply

поставщик поставлять

47. customer покупатель, заказчик, клиент, потребитель

48. assembly to assemble assembly shop

сборка, монтаж собирать, монтировать сборочный цех

49. warehouse склад

50. machine tool станок

51. costs fixed costs variable costs to cut costs

издержки, затраты постоянные издержки переменные издержки сокращать издержки

52. profit прибыль

53. to diversify diversified economy

диверсифицировать диверсифицированная экономика

91

54. sunrise industry

ant. sunset industry

развивающиеся передовые, прогрессивные отраслиант. традиционные отрасли, находящиеся в стадии упадка

55. mature зрелый, исчерпавший возможности развития

56. intangible goods неосязаемая продукция

57. banking банковские услуги, банковская деятельность

58. warehousing складирование, хранение

59. messenger services служба доставки, курьерские услуги

60. rental and leasing services прокат и долгосрочная аренда

61. waste management утилизация отходов

62. accounting бухгалтерские услуги, бухгалтерская деятельность

63. insurance страховые услуги, страховая деятельность

64. cloud computing облачные компьютерные технологии

65. administrative and technical support

административное обеспечение и техническая поддержка

Exercise № 1


national; tertiary; process; extractive; ore; iron; precious; deposit; refinement; fossil fuel;

eco-friendly; petroleum; gasoline; non-renewable; exhaustible resources; fertilizers;

quarrying; hydroelectric; sewage; chemicals; nuclear; geothermal; replenish; incentives;

finite; nondurable; goods; petrochemicals; pharmaceuticals; appliances; intermediate

goods; technique; machinery; entrepreneur; entrepreneurship; components; intangible

goods; diversify; automotive; biotechnology; mature industry; social media;

nanotechnology; microeconomics; assembly; variable costs; utilities; legal; inventories;

digitization; renaissance.

92

Exercise № 2

Give the English for the following word combinations.

добывающая промышленность; обрабатывающая промышленность; сырьевые

товары; увеличение потребления энергии; осуществить переход на

возобновляемые источники энергии; стратегические запасы нефти; истощение

запасов месторождений ископаемых энергоресурсов; истощаемые ресурсы;

экономить за счет использования энергосберегающего оборудования;

промышленно-развитые страны; установить оборудование; поставлять

комплектующие; поставщики товаров производственного назначения; разработать

продукт; постоянные и переменные издержки; конечный потребитель;

потребительские товары длительного пользования; факторы производства;

арендовать склад; сокращать издержки; ресурсоемкое производство; наукоемкая

отрасль.

Exercise № 3


to convert raw materials into components; extraction of solid mineral resources; to sell

to households for final consumption; to produce goods and services with greater value

added; exploration and development of oil or gas reserves; refinement of raw materials;

discovery of mineral deposits; fossil fuels; nuclear power plant; to cause environmental

pollution and global warming; fuel-intensive mode of transportation; power supply; fuel

economy; exhaustible resources; rising fuel prices; energy-intensive industries;

increasing conventional energy consumption; to draw the supply down; trade in

commodities; to produce durable goods; higher labour productivity; lower efficiency;

little growth prospects; to develop sunrise industries; entrepreneurship sense; capital

goods; to rent a warehouse; to assemble finished goods; knowledge-intensive industry;

accounting department; to provide information services; advertising company; modern

production techniques; depletion of deposits; to rely on electric power; oil shale boom.

93


1. Go to

The Modern Economy Primary, Secondary Tertiary Sectors

https://www.youtube.com/watch?v=WQt3hEUTnXo

Industry http://www.investopedia.com/video/play/factors-production/

Factors of Production http://www.investopedia.com/video/play/factors-

production/

Tertiary Industry http://www.investopedia.com/video/play/tertiary-industry/




Read the article and answer the questions that follow.

The Third Industrial RevolutionThe digitization of manufacturing will transform the way goods are made – and

change the politics of jobs too.

The first industrial revolution began in Britain in the late 18th century, with the

mechanization of the textile industry. Tasks previously done laboriously by hand in

hundreds of weavers’ cottages were brought together in a single cotton mill, and the

factory was born. The second industrial revolution came in the early 20th century, when

Henry Ford mastered the moving assembly line and ushered in the age of mass

production. The first two industrial revolutions made people richer and more urban. Now

a third revolution is under way. Manufacturing is going digital. As this week’s special

report argues, this could change not just business, but much else besides.

The old way of making things involved taking lots of parts and screwing or

welding them together. Now a product can be designed on a computer and “printed” on a

3D printer. The 3D printer can run unattended, and can make many things which are too

complex for a traditional factory to handle. In time, these amazing machines may be able

to make almost anything, anywhere—from your garage to an African village.

Other changes are nearly as momentous. New materials are lighter, stronger and

more durable than the old ones. Carbon fibre is replacing steel and aluminium.

94

Nanotechnology is giving products enhanced features, such as bandages that help heal

cuts, engines that run more efficiently and crockery that cleans more easily. Genetically

engineered viruses are being developed to make items such as batteries. And with the

internet allowing ever more designers to collaborate on new products, the barriers to

entry are falling. Ford needed heaps of capital to build his colossal River Rouge factory;

his modern equivalent can start with little besides a laptop and a hunger to invent.

Like all revolutions, this one will be disruptive. Digital technology has already

rocked the media and retailing industries. Many people will look at the factories of the

future and shudder. They will not be full of grimy machines manned by men in oily

overalls. Many will be squeaky clean—and almost deserted. Some carmakers already

produce twice as many vehicles per employee as they did only a decade or so ago. Most

jobs will not be on the factory floor but in the offices nearby, which will be full of

designers, engineers, IT specialists, logistics experts, marketing staff and other

professionals. The manufacturing jobs of the future will require more skills. Many dull,

repetitive tasks will become obsolete: you no longer need riveters when a product has no

rivets.

The revolution will affect not only how things are made, but where. Factories

used to move to low-wage countries to curb labour costs. But labour costs are becoming

less and less important: a $499 first-generation iPad included only about $33 of

manufacturing labour, of which the final assembly in China accounted for just $8.

Offshore production is increasingly moving back to rich countries not because Chinese

wages are rising, but because companies now want to be closer to their customers so that

they can respond more quickly to changes in demand. And some products are so

sophisticated that it helps to have the people who design them and the people who make

them in the same place. The Boston Consulting Group reckons that in areas such as

transport, computers, fabricated metals and machinery, 10-30% of the goods that

America now imports from China could be made at home by 2020, boosting American

output by $20 billion-55 billion a year.

Consumers will have little difficulty adapting to the new age of better products,

swiftly delivered. Governments, however, may find it harder. Their instinct is to protect

industries and companies that already exist, not the upstarts that would destroy them.

They shower old factories with subsidies and bully bosses who want to move production

abroad. They spend billions backing the new technologies which they, in their wisdom,

95

think will prevail. And they cling to a romantic belief that manufacturing is superior to

services, let alone finance.

None of this makes sense. The lines between manufacturing and services are

blurring. Rolls-Royce no longer sells jet engines; it sells the hours that each engine is

actually thrusting an aeroplane through the sky. Governments have always been bad at

picking winners, and they are likely to become more so. As the revolution rages,

governments should stick to the basics: better schools for a skilled workforce, clear rules

and a level playing field for enterprises of all kinds. Leave the rest to the revolutionaries.

The Economist, April 22nd, 2012

NOTES

1. offshore production – производство, перенесенное за рубеж (например, в страны с более низкими издержками)

2. level playing field – равные возможности, равные условия


moving assembly line – движущаяся сборочная линия, конвейер

mass production – массовое производство

disruptive – разрушительный, приносящий вред, подрывающий

retail(ing) – розничная торговля

upstart (syn. start-up) – недавно созданная компания

subsidy – субсидия


1. What is an industrial revolution? What are the basic differences between the three

industrial revolutions mentioned in the article?

2. What are the key features of the current industrial revolution?

3. Which positive and negative consequences will the current industrial revolution have

for companies, consumers and workers?

4. Why will it be harder for governments to adapt to the new conditions?

5. Do you agree with the recommendations which the author gives to governments in

the last paragraph? Why or why not?

96


1. What does the term “offshoring” imply? What is the main distinction between

“offshoring” and “outsourcing”, if any? What are the most common motives for

offshoring production or services? Search the Internet for the information, if

necessary.

2. Comment on the headline.

3. Read the article and find the words which match the definitions in the table.

effective and able to be successful

to be unsuccessful, or to not develop in a satisfactory way

to give attention to or deal with a matter or problem

to expand the level of output of (an economy) by government stimulus, using either fiscal or monetary policy

action by a central bank aimed at boosting the money supply and stimulating economic activity

a favourable economic situation or condition that will help move growth higher

not working or being used

a factory system in which parts or components of the end product are transported by a conveyor through a number of different sites at each of which a manual or machine operation is performed on them without interrupting the flow of production

to cause something to rise to or remain at a high level

not willing to do something and therefore slow to do it

a decline in the value of one currency relative to another currency

97

4. Do the assignments that follow.

“Made in Japan” is back in vogue

Weaker yen and robots make reshoring local manufacturing more viable

After decades of pursuing cheaper manufacturing overseas, “made in Japan”

products — from Honda scooters, Panasonic microwaves to Canon cameras — are back

in the vogue thanks to the weaker yen.

But “reshoring” this time around is more about robots than human jobs and bigger

factories — a far cry from the multibillion-dollar investments of the mid-2000s that

soured in the wake of the global financial crisis. Expansion is also largely designed at

serving the domestic market, rather than making goods for export.

Thus what is good for Japan Inc is less likely to feed through to the broader

economy and instead, may prolong the blocked transmission between a tight labour

market and higher wages as more robots man the production lines.

Take Canon, which aims to fully automate the production of digital cameras by

2018 to lift its domestic production ratio to 60 per cent in a few years from 43 per cent

last year. It also plans to invest $110m to build a technology development facility in Oita

prefecture of southwestern Japan.

The installation of more robots at its factories will allow Canon to lower

manufacturing costs while addressing the deepening labour shortage in Japan. Officials

insist, however, that employment levels will be maintained by shifting workers to roles

that cannot be replaced by machines.

The tilt towards domestic production comes three years after the yen started its

sharp decline on the back of prime minister Shinzo Abe’s bid to reflate the economy

through massive monetary easing. The weaker yen, which makes Japanese goods cheaper

overseas, has driven the profits of many companies to record highs.

The latest survey by the Development Bank of Japan also showed that major

Japanese groups are planning to increase domestic capital spending 13.9 per cent from a

year earlier in the financial year ending March 2016. That compares with 5.8 per cent on

overseas spending.

The lower manufacturing costs in Japan also coincide with rising labour costs in

China and other emerging markets where Japanese companies have historically shifted

their production to in the strong yen era.

98

In another tailwind, the value of “made in Japan” watches and other goods has

been buoyed by the influx of tourists from China and other parts of the world. To meet

strong inbound demand, Casio, maker of the G-Shock watch, last month increased

production of luxury watches at its plant in Yamagata, northern Japan, by 60 per cent

from a year earlier.

In spite of increasing chatter of “reshoring”, most of the action, however, has

been limited to locally manufacturing goods that will be sold in the Japanese market

rather than importing them from overseas. Panasonic, for example, is shifting production

of some microwaves and air cleaners from China to Japan.

Mizuho Securities estimates that a switch to domestic production for imported

goods targeting Japanese consumers could still lift Japan’s overall industrial production

by up to 3 per cent. Mr Fukuda further projects that if 30 per cent of machinery products

manufactured in Asia shift to domestic production, that could create 90,000 jobs,

although the actual figure could be smaller with the use of more robots.

Last week Honda shifted production of smaller-sized motorcycles intended for the

Japanese market from China to a domestic plant, restoring an idled production line in

southwestern Japan. By bringing manufacturing back to Japan from China and Vietnam,

it plans to raise the domestic production ratio of these motorcycles from 10 per cent to 80

per cent.

But Honda’s move highlights a deeper problem of weak demand. Its Kumamoto

plant was originally intended to produce 500,000 motorcycles a year. In reality, annual

production is stalled at 140,000 units. Even by shifting production from China and

Vietnam, the boosted annual capacity will still be half of its initial target.

Companies such as Toyota have also been reluctant to increase capacity in Japan

due to bitter memories of the previous cycle of yen depreciation a decade ago. From the

early to mid-2000s, car and electronics makers such as Sharp and Panasonic built

expensive new factories in Japan that turned into massive financial burdens when the yen

surged in the wake of the global financial crisis.

Underscoring that lingering cautiousness, less than 10 per cent of the country’s

manufacturers have plans to shift production to Japan from overseas for the current fiscal

year according to the Development Bank of Japan survey published in August.The Financial Times, September 17th, 2015

99

NOTES

tight labour market - more jobs than workers- высокий спрос на рабочую силу при ограниченном ее предложении.


viable – жизнеспособный, эффективный, целесообразный

to pursue – преследовать цель, стремиться

to sour – провалиться, потерпеть неудачу

to design – замышлять, задумывать, предназначать

to feed through – проникнуть, просочиться, распространиться

tilt – наклон, крен, сдвиг

bid – попытка, стремление

to reflate – 1) стимулировать экономический рост, 2) восстановить прежний

уровень цен

monetary easing – либерализация денежно-кредитной политики

tailwind – 1) попутный ветер, 2) благоприятные экономические условия

ant. headwind

to buoy – поддерживать, способствовать рост

influx – приток, прилив, наплыв

to man – 1) обслуживать (технику) 2) укомплектовать штат

idle – бездействующий, простаивающий

production line – поточная линия, конвейер

syn. conveyor belt

to stall – остановиться, застрять

to be reluctant – уклоняться, проявлять нежелание

currency depreciation – снижение курса валюты

ant. appreciation

lingering – затянувшийся, затяжной, давний, остаточный

cautiousness – осторожность, предусмотрительность

1) Make up 1 general question, 2 alternative questions and 3 special questions to the

contents of the article. Ask your group peers to answer these questions.

100

2) Infer the meaning of the term “reshoring” and suggest your definition of the

process.

3) In groups of 2 or 3 discuss the main causes and the anticipated effects of reshoring

for Japanese manufacturing.

4) Is it the first attempt to bring manufacturing back to Japan? Prove your point of

view with the evidence from the text.

5) What according to the author accounts for the reservations about the effects of the

move on Japan’s economy?

6) Is reshoring unique for Japanese manufacturers or is it a universal trend?


1. Read the article and answer the questions that follow.

2. Define the MAIN IDEA of the article. 3. Find the TOPIC SENTENCE, i.e. the statement under which all other material in

the paragraph – examples, reasons, facts, details and other evidence – can fit.

4. Provide examples of SUPPORTING DETAILS which clarify, illuminate, explain,

describe, expand and illustrate the main idea. What types of supporting materials

(comparisons, contrasts, quotations, statistics, vivid descriptions) does the article

contain?

China Trumpets Its Service EconomyBEIJING – China’s government is highlighting the positive in its flagging

economy, saying a transition from industry toward services is making headway. But the

latest snapshot of economic performance suggests that shift is going to be arduous.

Services grew 8.3 percent last year and for the first time accounted for more than

half of the economy, climbing to 50.5% from 48.1% the year before. Manufacturing rose

only 6 percent while its share shed more than two percentage points, falling to 40.5%.

The statistics bureau chief, Wang Baoan, told a news conference that this year

will see accelerated restructuring, with some older industries declining while new

businesses “vigorously developing, further stimulating the vitality of the market.”

101

Service businesses are largely clean, unlike the factories China has long relied on.

And services generate more jobs per yuan of output, an important benefit as the country

shifts to a slower growth rate. The industry expands in tandem with higher household

incomes as families spend more on education, insurance, restaurants, travel, and the other

trappings of middle-class life. President Xi Jinping stressed in a Jan. 18 meeting with

ministers and provincial officials the role of services, innovation, and household

consumption as the new economic drivers.

After years of Chinese leaders saying the economy needs to shift away from

growth driven by investment in factories, roads and other assets, a slowdown now

entering its sixth year is making that transition more necessary than ever. As the world’s

second-largest economy, China has accounted for up to a third of global growth in recent

years, so gearing up services and consumption matters at a time that many other

emerging and developed economies are sagging.

Consumption amounted to about two-thirds of economic growth last year, up 15

percentage points from 2014, the statistics bureau said Tuesday. While disposable

income outperformed the economy, increasing 7.4% last year, many analysts said overall

consumption figures generally include government spending, unlike statistics provided

by most other nations.

China has a long way to go before it resembles the U.S. economy, which derives

almost 80 percent of GDP from services.

A large part of 2015’s gain from services came from the financial sector. It grew

15.9 percent as China’s stock markets soared in the first half of the year.

Transportation and logistics, which were boosted last year by fast-growing e-

commerce, are likely to suffer this year as manufacturing continues to contract, says

Andrew Batson, Beijing-based China research director at consultant Gavekal

Dragonomics. About 60 percent of total services, including real estate, “are closely

related to the industrial sector,” he says. “That means services growth is going to be

significantly slower this year than it was last year. GDP will also significantly slow

down.” He’s predicting GDP growth could fall below 6 percent by yearend, from

6.9 percent for 2015.

Regulatory barriers to competition in finance, health care, and

telecommunications, areas dominated by government-connected companies, hinder

growth in services. “So much of it is still state-owned,” says Andrew Polk, senior

102

economist at the Conference Board China Center for Economics and Business. “The

government needs to unleash the service sector.”

China’s State Council has made it easier for new companies to register by

simplifying the approval process and ending minimum capital requirements.

Policymakers have encouraged investment in tourism, health care, sports, and education

in part through tax breaks. In the first 11 months of 2015, China registered 3.9 million

new companies, up 19 percent, with more than four-fifths in services, according to the

State Administration for Industry and Commerce.

China’s service sector now employs more than 300 million people, the largest

share of the country’s 775 million workers. The fastest growth has been in low-end jobs

in retail, restaurants, hotels, and real estate. Over the last five years, education and

government jobs, most of which are filled by college graduates, have fallen from a little

less than half of total service employment to a third or so. Finance’s share has also fallen,

says Albert Park, professor of economics at Hong Kong University of Science and

Technology. “The higher-skilled sectors—telecoms, information technology, computers,

finance, and business services—are still not a large share of the total service industry,” he

says. “And while some are growing, they aren’t growing very quickly.”

Bloomberg Businessweek, January 28th, 2016

NOTES

1. disposable income - the amount of money that households have available for spending and saving after income taxes have been accounted for – располагаемый доход

2. minimum capital requirements - the share capital that must be deposited by shareholders before starting business operations – необходимый минимальный объем капитала


to flag – ослабевать, тормозить

to make headway – продвигаться вперед, делать успехи

a snapshot – краткая характеристика, обзор, описание

arduous – трудный, тяжелый, сложный

to shed – снижать(ся), сокращать(ся), избавляться

assets – активы

to gear up – 1) ускорять 2) готовиться к чему-то

103

to sag – ослабевать, спадать, снижаться

to outperform – опередить, превзойти по показателям

to derive from – извлекать, получать из

stock market – фондовый рынок

to unleash – развязать, открыть путь, дать волю

tax breaks – налоговые льготы

low-end jobs – низкооплачиваемые виды работ

government jobs – должности в государственных учреждениях и организациях

business services – предпринимательские услуги

Answer the questions:

1. What role has industry played in Chinese economy in recent decades?

2. What kind of rebalancing is going on at the moment in Chinese economy?

3. What impact does service sector have on Chinese economy?

4. What makes the ongoing shift particularly important to global economy?

5. How does the structure of Chinese economy compare to that of the USA?

6. Which service sector contributed the most to the GDP growth in China in 2015?

What accounted for this significant contribution?

7. What is the author’s outlook for the service sector growth in 2016 and further on?

8. What, according to the author, are the main hinders to growth in services?

9. How does Beijing encourage the shift to service economy? Have these efforts proved

to be effective?

10. How does the service sector influence the employment in the country?

11. How does the author asses the pace of growth in service sector?

Translate the following sentences from English into Russian.

1. Services grew 8.3 percent last year and for the first time accounted for more than half

of the economy, climbing to 50.5% from 48.1% the year before.

2. Services generate more jobs per yuan of output, an important benefit as the country

shifts to a slower growth rate.

104

3. The industry expands in tandem with higher household incomes as families spend

more on education, insurance, restaurants, travel, and the other trappings of middle-

class life.

4. President Xi Jinping stressed the role of services, innovation, and household

consumption as the new economic drivers.

5. As the world’s second-largest economy, China has accounted for up to a third of

global growth in recent years, so gearing up services and consumption matters at a

time that many other emerging and developed economies are sagging.

6. While disposable income outperformed the economy, increasing 7.4% last year,

many analysts said overall consumption figures generally include government

spending, unlike statistics provided by most other nations.

7. The higher-skilled sectors – telecoms, information technology, computers, finance,

and business services – are still not a large share of the total service industry. And

while some are growing, they aren’t growing very quickly.

VOCABULARY PRACTICE

Exercise № 4

Прилагательные weak и strong, a также существительные weakness и strength

могут переводиться по-разному в зависимости от контекста. Ниже приведены

варианты перевода этих слов на русский язык в текстах экономического

содержания.

STRONG

высокий, значительный(о темпах роста, курсах валют и других показателях)

развитый, богатый (о странах, экономике)

благоприятный (о ситуации на рынке / в экономике)

устойчивый, стабильный, твердый (о рынке, ценах, показателях)

WEAK

низкий, незначительный(о темпах роста, курсах валют и других показателях)

неразвитый, бедный (о странах, экономике)

неблагоприятный (о ситуации на рынке / в экономике)

неустойчивый, нестабильный, колеблющийся (о рынке, ценах, показателях)

105

веский, весомый, убедительный (об аргументах, теориях, доводах)

твердый, глубокий (об убеждениях, принципах, вере во что-либо)

обладающий определённой численностью; многочисленный

прочный, крепкий

неубедительный (об аргументах, теориях, доводах)

STRENGTH

благоприятная ситуация (напр. в экономике)

высокий курс (валюты) высокое значение (какого-либо

показателя) стабильность, устойчивость

(рынка, экономики, показателя) сила, мощь, вес (напр. государства) состояние экономики

WEAKNESS

неблагоприятная ситуация (напр. в экономике)

низкий курс (валюты) низкое значение (какого-либо

показателя) нестабильность, неустойчивость

(рынка, экономики, показателя) проблемы, слабые стороны

(государства, экономики)


1. Employment and growth are weak and inflation according to the Fed has edged

down.

2. A European Commission report argues that the weak pound reflects a shaky financial

system in Britain and could lead to further economic destabilization.

3. Immigration has proved to be a strong argument for the supporters of Brexit.

4. The eurozone is still not strong enough to compensate for problems elsewhere, like in

China, where there is the risk of a slowdown.

5. The strong yen, combined with sluggish domestic demand, is spurring Japan’s

businessmen to expand abroad.

6. Investors may have been placing too much faith in the capacity of central banks to

counteract economic weakness.

7. Iron ore traders said that weak demand for steel in China, together with the collapse

of the European steel market, was behind the drop in prices.

106

8. The stronger-than-expected figures for December bode well for other upcoming

manufacturing data and the first quarter outlook.

9. The latest slump has been largely caused by declines in Chinese steel prices amid

continued weak demand from the country’s manufacturing and construction

industries.

10. In the face of unusually strong criticism from the EU, Romanian prime minister

reversed course.

11. The big bright spot within the 17-country area has been Germany’s continuing

strength.

12. U.S. industrial output slowed in March, a sign that weakness persists for

manufacturers and the energy industry.

Exercise № 5

Следует обратить особое внимание на перевод терминов production, productivity,

to produce, product и прочих однокоренных слов.

production производство, добыча (полезных ископаемых)

productivity производительность (как правило, труда)

produce (n) продукция (как правило, сельскохозяйственная)

to produce (v) 1) производить 2) приводить к чему-либо, давать результат

producer производитель

product товар, изделие, продукт

products продукция

productive производительный, эффективный

counterproductive приводящий к обратным результатам, неэффективный

А. Translate the following word combinations into Russian.

productivity rate; manufactured products; production facilities; agricultural produce;

labour productivity; dairy produce; oil production; coal production; to increase

production; production capacity; to produce result; to produce profit; to make products;

industrial production; steel production; to produce machinery; productive labour; unit

production costs.

107

B. Fill in the blanks with appropriate derivatives of PRODUCT.

1. As any entrepreneur knows, cutting the price of a [___________] usually lifts

demand for it.

2. Over the 2000-2011 period, Brazil’s share of world manufacturing [___________]

went up from 1.7% to 2.9%.

3. If China wants to increase consumer living standards, a crucial step is to make its

workers more [____________].

4. Investment in technology and the development of new varieties of corn have

improved labour [____________].

5. Less than 100 workers are still in the factory, but management says [____________]

could be renewed by the second half of next year.

6. Thus, the employment problem in the US is caused by changes in the world economic

order, poor education and [____________] government policy.

7. The need to improve [____________] – through higher efficiency of equipment,

labour reform, infrastructure investment, education and so on – is more glaring than

ever.

8. Trading firms handling goods in demand from China, such as crude oil and

agricultural [____________], have been attracted by tax breaks.

9. Industrial [___________] fell by 2.4 per cent year-on-year and, within that,

manufacturing slumped by 5.3 per cent.

10. The US has made a huge leap in industrial competitiveness: unit [___________] costs

are down 11 per cent over the past 10 years, while costs have risen in almost every

other advanced nation.

11. In 1800 what we now call emerging economies were responsible for 71 per cent of

world [____________], while the nations now categorized as the western world

accounted for the remaining 29 per cent.

12. OPEC pumped 2.1 million barrels a day more than projected demand in April

through June, the biggest [____________] for any quarter since 1998, the

International Energy Agency estimates.

13. The port of Santos, through which passes a quarter of Brazil’s foreign trade and over

half its shipments of agricultural [___________] such as corn, is set to play a pivotal

role during the next few years as the country prepares for record grain exports.

108

Exercise № 6

1) сapacity – 1) мощность, производительность 2) способность, возможность

(делать что-либо)

оvercapacity (syn. excess capacity) – избыточные мощности, избыток

мощностей

spare capacity (syn. reserve capacity) – свободные (неиспользуемые,

простаивающие, резервные) мощности

capacity utilization – загрузка производственных мощностей, коэффициент

использования производственных мощностей.

2) facilities – 1) возможности 2) мощности (производственные) 3) оборудование,

приспособления 4) здания, сооружения (заводов, фирм и т.п.)

NOTE THE DIFFERENCE!

capacity – «мощность» в значениях «объем производства», «возможный потенциал

производства»

facilities – «мощности» в значениях «станки», «оборудование», «заводы»

Fill in the blanks with either CAPACITY or FACILITY(ies).

1. Some economists question Ecuador’s [____________] to keep growing quickly.

2. A further $501m has been earmarked to build rail and port [___________] for the

iron ore project in Guinea, West Africa.

3. Built in 2011 and operated by 11 employees on site, the new storage [___________]

includes 11 tanks with a total [___________] of over 140’000 m3.

4. In 2005 and again in 2008, OPEC spare [___________] dipped towards 2 Mbpd, that

lead to the enormous run up in oil price last decade.

5. The Interstate Natural Gas Association of America has published forecasts showing

that by 2035 the US will need $205bn of investment in new gas pipelines and

processing [___________] to meet the expected increase in production and demand.

6. The plant in Durban, which employs 7,100 people, has an annual production

[____________] of 220,000 units.

7. Economists are divided as to how much manufacturing strength they expect to see in

September reports on industrial production and [____________] utilization.

109

8. The combination of ample idle [_____________], tight financing and continued weak

external demand is expected to result in a largely jobless recovery.

9. Idle [_____________] of the manufacturing [____________] — underutilized

technologies, people, equipment and resources—drives cost of goods to unsustainable

level.

10. As [_____________] age, the ability to restart idle production lines wanes, and there

is evidence that some of these lines have seriously degraded.

11. China produces around 45 percent of the world’s steel and has over 200 million

metric tons of excess production [_____________].

12. The Federal Reserve System permits U.S. banks to establish international banking

[____________], which allow banks to conduct transactions with foreign customers

and thereby compete in the international banking market.

Exercise № 7

challenge (n) – 1) вызов 2) трудная проблема, задача

to challenge (v) – 1) бросать вызов 2) оспаривать, ставить под сомнение

3) ставить проблему перед кем-либо

to meet the challenge – 1) принимать вызов 2) решать проблему


1. OECD governments consider excess capacity as being one of the main challenges

facing the global steel sector today.

2. In the current context the challenge for any insurance company is to become more

efficient, reduce risk, be more flexible while at the same time keeping costs down.

3. Gluts of everything from iron ore to copper are the main challenge for mining

industry.

4. Indian pharma companies will face a number of challenges in the US market

including reduced number of big products going off patent, increased competition

and rise in regulatory scrutiny.

5. While Brazil has already achieved a high level of urbanisation, tested different

policies and approaches to address the slum challenge it still has 44 million people

living with inadequate urban housing or utilities.

110

6. Burberry has warned the “challenging environment” for luxury retailers is likely to

continue in the near term as the UK brand laid out a plan to revive growth, including

targeting cost savings of “at least” £100m a year by 2019.

7. There are signs that the big banks’ strong position in the funds market has to a larger

degree been challenged by stiffer international competition and increased customer

mobility.

8. There are challenges that are common to all central banks in advanced economies,

which are linked to a global low inflation environment.

9. Shell has a record of leading the development and use of technology as a means of

overcoming physical challenges to enable oil and gas development in deeper water

and harsher environmental conditions.

10. Proposals published Tuesday that would give the European Union’s executive the

right to scrutinize natural-gas deals and force countries to cooperate during supply

shortages will test the bloc’s commitment to challenging Russia’s dominance in

the gas market.

11. Pioneering deep-water and well technologies apply to the exploration of gas in

challenging environments such as deep sea and arctic environments.

12. Such a referendum would, in a way, challenge the authority of the Security Council

and its relevant resolutions.

Exercise № 8

business (n) – 1) компания; предприятие; подразделение компании; 2) дело;

предпринимательская деятельность; 3) деловая активность

А. Translate the following word combinations into Russian.

businesses; big business; core business; non-core businesses; farm business; banking

business; commercial business; one-man business; retail business; overseas business;

start-up business; well-established business; flourishing business; small business;

business executives; to be on business; to go on business;, business interests; to start/set

up/establish/found a business; to do business with sb; to go out of business; business

associates.

111


1. The late economist Milton Friedman was famously quoted to have said, "The

business of business is business”.

2. Setting up shop on foreign soil doesn’t make sense for all businesses.

3. Growing a business can be challenging but over time, entrepreneurs stop focusing on

growth.

4. SoftBank last year considered and rejected a plan to set up a new company in London

to oversee the investment business.

5. SoftBank said the reorganization is part of its strategy to position its two core

businesses as “future growth drivers.”

6. Though most sanctions were lifted following Iran’s nuclear deal with world powers,

European lenders have said doing business is risky while other U.S. trade restrictions

remain in place.

7. A small business has several options for entering foreign markets, including

exporting its products through wholesalers, exploring strategic alliances with local

companies and establishing subsidiaries.

8. Thus, it is for crucial for business leaders to understand its full impact and determine

if the rewards of going global outweigh the risks.

9. When most people think of starting a business, they think of beginning from

scratch--developing your own ideas and building the company from the ground up.

10. Think long and hard about the types of businesses you're interested in and which best

match your skills and experience.

11. A rising yen hurts Japanese companies that do a lot of business overseas.

12. Business has not been very good since the last budget when taxes were increased.

13. Tourism in Hong Kong is big business: it is the third largest source of foreign

exchange and employs 180,000 people.

14. Many new business owners turn to incubators as an opportunity to learn the ins and

outs of forming and growing a start-up.

15. Donald Trump is digging in his heels when it comes to his tax returns, stating that

voters don’t have a right to see the documents before November and snapping back

during an interview that his tax rate is “none of your business.”

112

TRANSLATION SKILLS

Exercise № 9

While – 1) хотя, несмотря на то, что

2) в то время как, пока

3) а, тогда как


1. While Chinese exports to the EU during that year were worth €158 billion, European

exports to China were worth €52 billion.

2. Export intensive nations, such as China, must boost their domestic demand, while the

U.S must control its appetite for imports, while exporting more.

3. While the opening of factories in foreign markets has sometimes drawn criticism

from American unions, last week's opening of the BMW factory here appears to have

been met with little opposition from the German union.

4. High interest rates will hold down expansion to just 1.5% this year, while

unemployment has surged to a record 13%.

5. While analysts cautioned that the report from the Labor Department was hardly cause

for celebration, it eased fears of another prolonged slowdown.

6. The most recent data from the Bureau of Labor Statistics show that quarterly

productivity in manufacturing rose 5%, while unit labor costs declined 5.1%.

7. While most energy-related sectors may be on the rise and new technological

developments are "promising," the benefits to manufacturers will be muted because

U.S. manufacturing has become so much less energy intensive overall in recent years.

8. In the past five years, per capita gross domestic product grew 4.3 per cent annually

while average wages grew 2.1 per cent.

9. While advanced countries are in the doldrums, several emerging economies are

suffering from excessive credit expansion and overheating.

10. While solar energy still accounts for only a tiny fraction of American power

production, declining prices and concerns about global warming give solar power a

prominent place in United States plans for a clean energy future.

113

11. The main cause of the dollar's recent slide has been the ECB’s refusal to cut interest

rates (because of its inflation concerns) while the Fed is slashing rates to support

growth.

12. While the numbers were affected by summer holiday factory closures, according to

data released on Thursday, they marked the latest sign of a slowdown in the

economy.

13. Demand for steel in Europe remained weak while prospects were better in North

America and Asia.

14. While some railroad companies say their businesses can benefit from higher diesel

prices because shippers may migrate to trains from trucks, they are still paying

millions of dollars more for fuel.

15. Economists say an easing of oil prices since July, while positive for Japanese

consumers and companies in the long run, bodes ill for Japanese exports to resource-

rich countries.

Exercise № 10

Once – 1) в качестве наречия переводится на русский язык: однажды, когда-то,

некогда, один раз; 2) в качестве союза – как только, коль скоро.


1. Once a powerful engine of growth for Japan, Mitsubishi Heavy Industries Ltd. has

seen its stock price fall 33% from its 12-month peak last April.

2. And once people expect prices to keep falling, they put off buying things, weakening

the economy further.

3. Mining and specifically copper output was once the key driver of growth in Congo.

4. Once the biggest oil producer in North Dakota, Whiting lost $2.2 billion in 2015,

mostly because it had to partially write down the value of a field in Texas.

5. Once people start to anticipate declining rather than rising prices, it can be very hard

to reverse their expectations.

6. China’s appetite for metal ores and other resources is on the wane, Brazil’s once-

buoyant economy is in recession, and several smaller countries are also suffering

declining growth and capital outflows.

114

7. Once considered the sick man of Europe, Germany has made more gains over the

past decade to improve industry competitiveness than any of its major trading

partners.

8. Europe and the United States remain major destinations for Asian goods, and

weakening demand in those regions, combined with the slowdown in China’s once

red-hot economy, has inevitably taken a toll on export sectors and stock markets

around the region.

9. The coal industry, once the heart that pumped the economy of West Virginia, is in

deep trouble, buffeted by power plants switching to cheap natural gas, crippling debt,

mounting foreign competition and increasingly strict regulations to limit greenhouse

gases and toxic emissions.

10. These days, when millions of dollars worth of non-native gemstones are sold each

summer in Ketchikan, it pays to remember that once upon a time mining was the

principal industry in town.


TEXT 1


Will the U.S. See a Major Manufacturing Revival?There are considerable opportunities for a U.S. revival, particularly in advanced

industries such as chemicals, automobiles and aerospace. Three core drivers will enable

the expansion of U.S. manufacturing.

First, the cost of some key inputs is falling, for instance, the shale-gas boom that

has reduced U.S. natural-gas prices by two-thirds since 2008. This is making the country

more competitive for gas-intensive industries such as petrochemicals and fertilizers.

Second, major sectors such as aerospace and automobiles will see additional

exports on the back of surging demand from Asia and the Middle East (e.g. commercial

aircraft fleets globally are expected to double in size by 2025).

Finally and most importantly, technological innovation (e.g. digitization, data

analytics, advanced automation, Internet of things and additive manufacturing) is

transforming the landscape for manufacturing. The U.S., given its historical advantage in

115

technology adoption, should be well positioned to benefit from this disruption, provided

that it can maintain a strong talent base and innovation pipeline.The Wall Street Journal, July 3rd, 2014

NOTES

1. the Internet of things - (IoT) refers to the ever-growing network of physical objects that feature an IP address for internet connectivity, and the communication that occurs between these objects and other Internet-enabled devices and systems – Интернет вещей

2. additive manufacturing - a manufacturing process through which three-dimensional (3-D) solid objects are created. It enables the creation of physical 3-D models of objects using a series of additive or layered development framework, where layers are laid down in succession to create a complete 3-D object (also known as 3-D printing) – аддитивное производство с использованием технологий 3D печати.

3. given – учитывая, принимая во внимание

4. provided – при условии, что ….


shale-gas – сланцевый газ

natural-gas – природный газ

fertilizers – удобрения

digitization – использование цифровых технологий

disruption – подрыв, разрушение, сбой, дестабилизация

TEXT 2


U.K. to End 300 Years of Deep Coal Mining as Prices SlumpBritain plans to close its last deep coal mine in December, spelling the death of an

industry that’s kept the nation’s economy humming since the Industrial Revolution.

The U.K.’s last deep underground mine, located at Kellingley in northern

England, will shut around Dec. 15, U.K. Coal Holdings Ltd. said in a statement. The

company’s Thoresby mine ceases production on Friday.

The closing will mark the nation’s exit from an industry that employed more than

a million workers at 3,000 pits a century ago. Since 2000, U.K. power generators

Electricite de France SA to RWE AG bought more of the fuel from abroad, where coal

116

from Australia to Colombia is cheaper, according to the Federation of U.K. Coal

Producers. European prices slumped to an eight-year low in April.

The U.K. had three operating deep mines through the end of June. A pit at

Hatfield in northern England shut June 30 after failing to get additional government

funding.

Deep pits accounted for 38% of the U.K.’s coal output in April, with surface

mines making up the rest, Department of Energy data showed.

Britain imported 1.9 million metric tons of the solid fuel in April, compared with

domestic production of 757,000 tons, according to the Department of Energy. Purchases

from abroad covered a record 84% of total consumption in 2014, compared with 21

percent in 1995.

Worldwide coal prices tumbled as growth in supply continues to outpace demand.

The world’s five largest exporters, including Australia, Colombia and Russia,

trimmed shipments by 5.5% to 218 million tons in the second quarter from the same

quarter a year earlier, while purchases by the eight largest importers dropped 6.5% to 150

million tons in the same period, according to data compiled by Bloomberg.BloombergBusinessweek, July 10th, 2015


deep coal mining – добыча угля подземным способом

to keep humming - продолжать работать (без перебоев)

to cease – прекращать, останавливать

coal pit – угольная шахта, котлован

surface mining – добыча угля в открытых карьерах

to trim – урезать, сокращать, уменьшать

to compile – составлять, собирать

TEXT 3


What's going on in UK manufacturing?Manufacturing accounts for about 10% of the output of the UK economy. The rest

of the production industries: mining, quarrying, gas, electricity, water and sewage

account for another 5%.

117

The service sector accounts for 79%, while construction makes up the final 6%.

In the last decade, manufacturing grew gradually from 2005 to 2008, at which

point it took a dive in the financial crisis in common with the rest of the economy.

It recovered from 2010 until the start of 2012 and has been pretty volatile since

then.

The sector is still below its pre-crisis peaks, unlike the service sector, which is

well above its pre-crisis level.

Foreign investment plays a big role in UK manufacturing. There are lots of things

about the UK that make it an attractive destination for foreign companies looking to

acquire other businesses or expand overseas.

It has relatively low corporation tax and a flexible labour market, which makes it

easier to expand and contract a business as is necessary.

But in recent years there has been a big challenge for foreign investors: the

strength of sterling. A strong pound makes investing in the UK more expensive for

foreign companies and it makes their products more expensive to export once they have

been made.

Many parts of the UK manufacturing sector have struggled to compete with

lower-cost economies in Asia.

When big manufacturers shed jobs, many tend to go at once, often in parts of the

country with relatively few alternative employers.

Industry bosses and unions say that the UK manufacturing sector could be

stronger if the government was as much of a friend to industry as the governments of

other EU members such as Germany and France.

"It is important that manufacturing exporters, in particular, get the support they

need as they face significant challenges," says David Kern, chief economist at the British

Chambers of Commerce.

But there was one piece of good news for the sector in recent trade figures, which

suggested an unexpectedly strong improvement in exports of goods and services, despite

the strong pound.http://www.bbc.com/news/business-34463597б, October 20th, 2015


quarrying – добыча полезных ископаемых открытым способом

118

sewage – канализация

to take a dive – резко сократиться

destination – пункт назначения, рынок сбыта, целевой рынок

to acquire – приобретать, покупать

corporation tax – налог на прибыль корпораций

flexible – гибкий, эластичный, способный быстро приспосабливаться

to struggle – с трудом удаваться, находиться в бедственном положении,

сталкиваться с проблемами, прилагать усилия

(trade) unions - профсоюзы

TEXT 4


US manufacturing: How did Indiana power a revival?For many Americans, there are two places that serve as symbols of the decline of

US manufacturing: Detroit's hollowed out car plants, and vacant steel mills in Gary,

Indiana.

For decades now, these two cities - and the surrounding states that collectively

make up the "rust belt" - have been aching reminders of industry's decline, and of the

devastating impact that outsourcing and globalisation wreaked on those living and

working in manufacturing in the heart of the US.

Yet over the past five years, a curious thing has been happening in one of those

rusty states: Indiana. The reality is that beyond Gary, manufacturing never really left

Indiana - which first saw its fortunes rise during the turn of the 20th century, when the

state's young men who had previously been subsistence farmers suddenly found

themselves on hard times as agriculture became more mechanised.

Manufacturers recognised that Indiana had an able and willing workforce and set

up across the state, building mostly small and medium factories that primarily served US

car manufacturers.

Now, manufacturing makes up an astounding 30% of the state's economic output

- compared to 12% of overall US gross domestic product (GDP) - and produces almost

everything from cars and motor homes to pharmaceuticals and biomedical devices.

119

When indirect and induced jobs (that is, the retailers that choose to open up in a

town to cater for manufacturing workers) are factored in, nearly two-thirds of the state's

economic activity is due to manufacturing.

Industry participants express concern that a coming wave of retirements could

impact the workforce, as nearly 40% of the state's current manufacturing employees are

expected to retire in the next few years.

That's why politicians, companies, and local schools are investing in educating

yet another wave of potential employees - to ensure that an industry that has powered the

state since those agricultural days continues to provide an economic engine.http://www.bbc.com/news/business-32925294, June 4th, 2015

NOTES

“rust belt” - a slang term for a geographic region in the United States stretching from New York through the Midwest that was once involved in steel production and manufacturing – «ржавый пояс»


to hollow out – опустошать

vacant – пустой, бездействующий

steel mill – сталелитейное предприятие

devastating – разрушительный, губительный, катастрофический

wreak – наносить урон, причинять ущерб

fortunes – богатство, достаток, состояние

subsistence – продовольствие, продукты питания; прожиточный минимум

indirect jobs – рабочие места в смежных отраслях

induced jobs – специально созданные рабочие места

to cater for – обеспечивать, угождать, обслуживать

to factor in – учитывать, принимать в расчет

TEXT 5


China services sector key to growthBanking, tutoring and healthcare are the holy grail both for China’s policymakers

and its international investors. As Beijing looks to services to rev up slowing economic

120

growth, private equity and others are buying into hospitals, English schools and

consumer lenders.

Property sales and factory construction are slowing but people in China are

eagerly availing themselves of healthcare, tutoring and movie tickets. Beijing’s slow-

burning bid to rebalance the economy towards consumption has received a boost from

services, which account for 51% of GDP, up from 44% in 2011.

The economy is on track for its weakest full-year growth in a quarter of a century.

Without rapid expansion in financial services, education and healthcare, among other

services, the overall slowdown would have been much worse.

While financial services moderated in the third quarter, overall services growth

accelerated from 8.3% in the first half to 8.6% in the third quarter, well above the 6.9%

growth of the broader economy.

The fastest growth came from “other” services, a broad category that includes

healthcare, education, entertainment and culture, science and research, business services

and utilities — fully 20% of the economy.

Foreign investors are betting the services growth story is real. Domestic

companies are also positioning themselves to target the service sector.

Dalian Wanda Group, parent of China’s largest commercial property developer, is

branching out into theme parks, online retail and financial services.

Services are also key to Beijing’s goal of reducing reliance on debt-fueled

investment and generating more growth from consumption. Li-Gang Liu, China

economist at Australia and New Zealand Bank, estimates that services account for about

30% of China’s consumer price index, which aims to reflect the typical consumer’s

spending patterns. The Financial Times, December 6th, 2015

NOTES

1. the Holy Grail – 1) the bowl believed to have been used by Jesus Christ at the Last Supper 2) any desired ambition or goal, something that is extremely difficult to find or get – Священный Грааль, обозначение какой-либо заветной цели, часто недостижимой или труднодостижимой

2. to be on track - making progress and likely to succeed – произойти с высокой степенью вероятности

121


to rev up – увеличивать, наращивать (обороты,, темпы)

private equity – сектор прямого частного инвестирования

to avail oneself of – использовать, воспользоваться

a bid – стремление, попытка

to rebalance – восстанавливать равновесие, изменять соотношение сил

to accelerate – ускорять, форсировать

to bet – быть уверенным, делать ставку

to branch out – начать новое дело, распространяться, разветвлять

theme park – парк отдыха и развлечений

debt-fueled investment – инвестиции с использованием заемных средств

TEXT 6


U.S. Shale Producers Face Reality, Cut OutputSome of America’s biggest shale producers are beginning to ratchet back oil and

gas production for the first time in years, bending to the reality that a global glut will

keep prices depressed.

The production cuts, announced as shale companies reported dismal earnings in

recent days, stand in stark contrast to the past year, when many U.S. drillers kept the taps

turned on even as oil prices plunged from nearly $100 a barrel to about $30. American

oil satisfies 10% of the world’s daily needs, putting U.S. production on par with output

from Russia and Saudi Arabia.

The Organization of the Petroleum Exporting Countries continues to pump at full

tilt, further pressuring higher-cost operators such as U.S. shale producers. Last week,

Saudi Arabia oil minister Ali al-Naimi bluntly told energy executives in Houston that the

supply problem will only be resolved when low prices force companies to stop producing

the oil that is most expensive to extract and sell.

So after years of boosting oil and gas flows across Oklahoma, Texas and North

Dakota, Continental Resources Inc., Devon Energy Corp. and Marathon Oil Corp. say

they plan to pull roughly 10% less from the ground in 2016 than they did last year

One hurdle to throttling back production in the U.S. is that shale drillers have

become more efficient, tapping wells faster, for less money, and coaxing more fuel out of

122

each one. But other companies have been forced to keep pumping just to bring in cash so

they could make interest payments on their heavy debt loads.

One way companies are trying to put a lid on production this year is by waiting to

pump wells they have already drilled. That trend is creating a large inventory of oil and

gas wells that will be ready to turn on when crude prices finally do rebound.

IHS, the consulting firm, is forecasting that U.S. oil output could fall from more

than 9 million barrels a day to as little as 8.3 million barrels a day by this summer.

If that drop does materialize, it could boost crude prices back to the $40-a-barrel

range, according to IHS.

One risk, though, is that as prices move higher, some producers may be tempted

to turn on the spigot once again, a move that could in turn drive prices back down. If that

happens, prices could collapse even below current levels, said Jamie Webster, senior

director of oil markets for IHS. The Wall Street Journal, February 29th, 2016

NOTES

if that drop does materialize; when crude prices finally do rebound - глагол do служит для выделения сказуемого и передается словами: «действительно», «же», «все же», «ведь» и др.


shale producer – компания, занимающаяся добычей сланцевого газа/нефти

to ratchet back – сдерживать, притормаживать

to bend to – смиряться, покоряться, подчиняться

dismal – удручающий, бедственный, катастрофический

on par – наравне, на одном уровне, сопоставимо

to pump – качать, добывать (нефть)

at full tilt – полным ходом, изо всех сил

driller – буровая компания

hurdle – препятствие, проблема, трудность

to throttle back – уменьшать обороты, сбрасывать газ, притормаживать

a well – скважина

to tap – вскрывать (пласт, залежь, месторождение)

to coax – выкачивать, вытягивать

123

interest payment – процентный платеж

to put a lid on sth – приостановить, положить конец

to turn on a spigot – открыть кран

TEXT 7


Is U.S. manufacturing making a comeback — or is it just hype?It’s hardly news when a U.S. firm moves its manufacturing operations abroad to

China. But what about when a Chinese company sets up a factory in the United States?

That actually happened in January, when Lenovo, a Beijing-based computer

maker, opened a new manufacturing line in Whitsett, N.C., to handle assembly of PCs,

tablets, workstations and servers.

The rationale? The company is expanding into the U.S. market and needs the

flexibility to assemble units for speedy delivery across the country, says Jay

Parker, Lenovo’s president for North America.

While it’s still cheaper to build things in China, those famously low Chinese

wages have risen in recent years. U.S. firms that have long operated abroad are making

similar moves: Caterpillar, GE and Ford are among those that have announced that

they’re shifting some manufacturing operations back to the United States. And

economists are now debating whether these stories are a blip — or whether they signal

the beginning of a major renaissances for American manufacturing.

It’s easy to be skeptical. So far, the effect on jobs has been modest. Since January

2010, the United States has added 520,000 manufacturing jobs — and of those, just

50,000 have come from overseas firms moving here, according to the Reshoring

Initiative. That’s a decent number, but it pales beside the 6 million factory jobs that the

Bureau of Labor Statistics says vanished between 2000 and 2009.

Yet the optimists counter that the logic of a manufacturing comeback remains

compelling. Besides the shrinking wage gap between China and the United States, the

productivity of the American worker keeps rising. Shipping costs are rising as well,

making outsourcing more costly. And the surge in shale gas drilling gives the United

States a wealth of cheap domestic energy to bolster industries such as petrochemicals.

All that could combine to make U.S. factories more competitive in the years

ahead, not just with Europe and Japan, but with the manufacturing behemoth in China.

124

This shift won’t mean the United States will have 19 million manufacturing workers

again, the way it did in the 1980s. For one thing, automation is still a powerful force.

And the types of jobs that come back will be very different from the ones that vanished.

Still, any significant uptick in domestic manufacturing after a decades-long decline could

bolster the economy and spur innovation.The Washington Post, May 1st, 2013


to handle assembly – осуществлять сборку

rationale – объяснение, обоснование, аргументация, мотивация, подоплека

a blip – внезапное отклонение

renaissance – возрождение

decent – изрядный, приличный

to pale – бледнеть, тускнеть, меркнуть

compelling – веский, убедительный, аргументированный

shipping costs – транспортные расходы

for one thing – для начала, прежде всего

to spur – побудить, подстегнуть, дать толчок, породить

TEXT 8


Mining Collapse Cripples Africa’s Dreams of ProsperityKITWE, Zambia – A decade long commodity boom brought sleek shopping

malls, tidy brick homes and dozens of private schools to this mining town in the heart of

Africa.

The population doubled and incomes soared as record copper prices and a flood

of Chinese investment and workers transformed a region bordering war-ravaged Congo

into a beacon for Africa’s rising middle class.

Now the global forces that propelled Kitwe’s rise have reversed, fomenting an

economic and social crisis that has interrupted dreams of greater prosperity across

Zambia’s copper belt and exposed the fragility of Africa’s commodity-fueled growth

model.

125

Slowing Chinese demand has nearly halved the price of copper in two years,

upending an economy reliant on the metal for 70% of its exports. Chinese contractors

and restaurateurs that followed state construction companies into the landlocked country

are starting to head home.

Glencore’s Mopani copper mine in Kitwe, Zambia, has shed thousands of jobs.

Kitwe is a prime victim of the commodity bust’s outsize impact on Africa. Several mines

have closed and some 15,000 workers have been laid off. Officials say each miner’s

salary supports 15 dependents, exposing the entire town to the ravages of the global rout.

Violent crime is rising and blackouts have become commonplace. Mining

industry subsidies for HIV and malaria medications have been reduced. Double-digit

inflation has frozen sales of the refrigerators, televisions and cars coveted here as

hallmarks of success.

Kitwe’s trauma is reverberating across Zambia and other resource-reliant African

economies from South Africa to the Sahara. After years of blistering expansion, Nigeria,

Angola and South Africa—whose oil, gold and platinum industries have long driven the

region’s growth—are mired in crises that are freezing development and testing

increasingly cash-strapped governments.

The dramatic shift has revealed how reliant many African economies remain on

commodity riches, prompting some investors to reassess an “Africa Rising” narrative that

exaggerated gains in manufacturing, infrastructure and education.The Wall Street Journal, March 4th, 2016


to cripple – разрушить, парализовать, ослабить, нанести ущерб

a beacon – 1) маяк, сигнальный огонь 2) путеводная звезда, светоч, эталон

to reverse – кардинально измениться, повернуть вспять

to foment – разжигать, провоцировать, нагнетать

to expose – выявлять, открывать, демонстрировать, подвергать (опасности)

fragility – хрупкость, уязвимость, неустойчивость

to upend – кардинально изменить, потрясти, сбить с ног

to be reliant on – зависеть от

contractor – подрядчик

ravage – разорение, уничтожение

hallmark – отличительная черта, признак, характерная особенность

126

to reverberate – отражаться, отдаваться, воздействовать

to mire – погрязнуть, оказаться в трудном положении

cash-strapped – испытывающий финансовые затруднения, нехватку наличности


TEXT 9


The march of the zombiesChina’s huge exports of industrial goods are flooding markets everywhere,

contributing to deflationary pressures and threatening producers worldwide.

China’s surplus capacity in steelmaking, for example, is bigger than the entire

steel production of Japan, America and Germany combined. Rhodium Group, a

consulting firm, calculates that global steel production rose by 57% in the decade to

2014, and Chinese mills accounted for 91% of this increase. In industry after industry,

from paper to ships to glass, the picture is the same: China now has far too much supply

in the face of shrinking internal demand. Yet still the expansion continues: China’s

aluminium-smelting capacity is set to rise by another tenth this year and around two

billion tonnes of gross new capacity in coal mining will open in China in the next two

years.

China’s grotesque overinvestment in industrial goods is a very big problem. This

binge has left many state-owned firms vulnerable to slowdown, turning them into

profitless zombies.

Chinese industrial firms last year posted their first annual decline in aggregate

profits since 2000. Returns on assets of state firms, which dominate heavy industry, are

a third those seen at private firms, and half those of foreign-owned firms in China.

The roots of this mess lie in China’s response to the financial crisis in 2008.

Officials subsidize money indiscriminately at state firms in infrastructure and heavy

industry. The resulting overcapacity creates even bigger headaches for China than for the

rest of the world.

The good news is that the Chinese have publicly recognized there is a problem.

The bad news is that three of the tacks they are trying only make things worse.

127

One option is for China’s zombies to export their overcapacity. But even if the

Chinese keep their promises not to devalue the yuan further, the flood of cheap goods

onto foreign markets has already exacerbated trade frictions. Another approach is to

keep stimulating domestic demand with credit. But borrowing more as profits dive will

only worsen the eventual reckoning for zombie firms. A third policy is to encourage

consolidation among state firms. Some mergers have happened—in areas such as

shipping and rail equipment. But there is little evidence of capacity being taken out as a

result.

Chinese leaders are dancing around the obvious solutions—stopping the flow of

cheap credit and subsidized water and energy to state firms; making them pay proper

dividends rather than using any spare cash to expand further; and, above all, closing

down unviable firms.The Economist, February 27th, 2016


to flood – наводнить, захлестнуть, хлынуть потоком

deflationary pressure – дефляционное давление

surplus capacity – избыток производственных мощностей

binge – бум, разгул, резкий рост

aggregate profit – суммарная, совокупная прибыль

return on assets – рентабельность, доходность активов

to subsidize - финансировать

indiscriminately – беспорядочно, без разбора, все без исключения

heavy industry – тяжелая промышленность

ant. light industry - легкая промышленность

to devalue – обесценивать, девальвировать

to exacerbate - усугубить, обострить

trade frictions – торговые разногласия

reckoning – расплата, расчет

consolidation – объединение, консолидация

unviable – нерентабельный, неэффективный, нежизнеспособный

128

TEXT 10


Less Growth Prompts First U.S. Services Job Cuts Since 2014Growth in U.S. service industries slowed for a fourth straight month in February,

prompting the first job cuts in two years.

The Institute for Supply Management’s non-manufacturing index eased to 53.4

from 53.5 in January, the Tempe, Arizona-based group’s report showed Thursday. While

readings above 50 signal expansion, the gauge has posted slower growth since

November.

Services industries, which range from construction to finance, account for the

lion’s share of the economy, and a slowdown risks taking a bigger bite out of growth

than the slump in manufacturing. Continued job growth and signs that the recovery

remains on track despite market volatility will be needed to convince consumers to keep

spending and provide a much-needed boost.

The ISM’s factory survey released on March 1 indicated the decline in

manufacturing had found a bottom. Details from the services survey showed the

employment index declined to 49.7 from 52.1 in January, indicating companies last

month started cutting staff, perhaps in response to the turmoil in financial markets.

While services are still outperforming manufacturing, momentum seems to have

shifted to the latter as factories show nascent signs of recovery. It may simply be a matter

of time before the pendulum swings in the right direction for service companies as well,

according to Tom Simons, a money-market economist at Jefferies LLC in New York.

Services are “just sort of lagging the trends we saw in manufacturing,” Simons

said before the report. “The cumulative weakness in manufacturing will probably still

have a drag on the service sector for the next few months.”

A rebound in consumer spending would go a long way in supporting services, and

there are signs the pickup may already be under way. Household purchases in January

climbed by the most in eight months, fueled by faster earnings growth.

Yet, it’ll take sustained improvement in the labor market to persuade consumers

that it’s still safe to spend. http://www.bloomberg.com/news/articles, March 3rd, 2016

129

NOTES

ISM Non-manufacturing Index - an index based on surveys of more than 400 non-manufacturing firms' purchasing and supply executives, within 60 sectors across the nation, by the Institute of Supply Management (ISM) – индекс деловой активности в непроизводственной сфере, составленный на основе опросов менеджеров по закупкам и поставкам


to post – объявлять, предоставлять информацию

take a bite – значительно уменьшать

turmoil – кризис, паника, хаос

momentum – импульс, динамика, сила, активность

nascent – зарождающийся, появляющийся, образующийся

money market – рынок краткосрочных долговых обязательств (краткосрочного

ссудного капитала)

cumulative – суммарный, совокупный, накопленный

a drag – сдерживающий фактор, тормоз

to be under way – происходить, проводиться

to go a long way – принести большую пользу, добиться многого, значительно

способствовать

TEXT 11


U.S. shale's message for OPEC: above $40, we are coming backLess than a year ago major shale firms were saying they needed oil above $60 a

barrel to produce more; now some say they will settle for far less in deciding whether to

crank up output after the worst oil price crash in a generation.

Their latest comments highlight the industry's remarkable resilience, but also

serve as a warning to rivals and traders: a retreat in U.S. oil production that would help

ease global oversupply and let prices recover may prove shorter than some may have

expected.

A dramatic decline in costs and rapid efficiency gains have turned U.S. shale,

initially seen by rivals as a marginal, high cost sector, into a major player - and a thorn in

the side of big OPEC producers.

130

Nimble shale drillers are now helping mitigate the nearly 70-percent slide crude

price rout by cutting back output, but may also limit any rally by quickly turning up the

spigots once prices start recovering from current levels just above $30.

While the worst oil downturn since the 1980s sounds the death knell for scores of

debt-laden shale producers, it has also hastened the decline in costs of hydraulic

fracturing and improvements of the still-developing technology.

While Deloitte auditing and consulting warns that a third of U.S. oil producers

may face bankruptcy, leading shale producers say their ambitions go beyond just

outrunning domestic rivals.

One reason shale producers can be so fleet-footed is the record backlog of wells

that have already been drilled but wait to get fractured to keep oil trapped in shale rocks

flowing.

Some warn that fracking the uncompleted wells can offer only a short-term

supply boost and a sustained increase would require costly drilling of new wells and

therefore higher prices.

Some analysts also warn resuming drilling quickly may prove hard after firms

laid off thousands of workers and idled more than three-quarters of their rigs since late

2014.

And even scarred veterans of past boom-bust oil cycles are not sure what will

happen once prices start to recover - during the last big upswing a decade ago, shale oil

did not even exist.http://www.reuters.com/article, February 29th, 2016

NOTES

1. a generation - a period of about 25 to 30 years, in which most human babies become adults and have their own children

2. a thorn in one’s side - someone or something that continually causes problems for you – бельмо на глазу

3. a death knell - a warning of the end of something – предвестник конца (гибели)


to settle for – довольствоваться, удовлетвориться, примириться

to crank up – наращивать, увеличивать объем, интенсифицировать

to highlight – указывать на, подчеркивать, выдвигать на первый план

131

a retreat – отступление, отход, общее снижение

nimble – проворный, мобильный, гибкий, быстро реагирующий

to mitigate – смягчить, умерить, уменьшить

rally – рост после снижения, оживление

debt-laden – обремененный долгами, погрязший в долгах

hydraulic fracturing – метод гидравлического разрыва пластов (технология

добычи сланцевого газа)

syn. fracking

to outrun – обогнать, опередить

fleet-footed – быстроногий, проворный, мобильный

backlog – резерв, запас, очередь

to resume - возобновлять

lay off – увольнять

a rig – буровая вышка / платформа

CONSOLIDATION

Exercise № 11


1. Weak utilities production could be a drag on consumer spending.

2. Growth in the service sector accounted for 90% of all jobs created in 2015.

3. The extra cars produced then may delay the need for increased production now.

4. Imports stagnated in October as U.S. demand for crude oil plunged, an outcome that

may prove to be temporary as the world’s largest economy picks up.

5. Consumer spending, which accounts for 70 percent of the economy, rose at a 4.4

percent annual pace in the fourth quarter, the biggest gain in four years, according to

Commerce Department figures.

6. Analysts at Citigroup said in a recent report that Chinese steel demand had weakened

sharply since March as overproduction had caused a build-up of inventories and

downward pressure on prices.

7. While most of the world economies are shrinking, China's economy grew last quarter,

along with the economies of Singapore, Hong Kong, South Korea, and Indonesia.

132

8. China’s economy still only accounts for 8% of global GDP in current dollars;

domestic private consumption, though growing fast, remains a small part of national

GDP by global standards.

9. As recently as 1990, manufacturing was the largest employer in 36 states in the U.S.,

according to the Labour Department.

10. Collapsing oil prices and weak manufacturing numbers have placed greater

importance on consumer spending and service jobs.

11. Analysts say they believe that gains in production cannot be sustained only by rising

exports: American consumers must increase spending.

12. Mining production tumbled 2.9 percent as oil and gas well drilling plummeted 8.5

percent after diving 15.8 percent in February.

13. Weakness in the industrial sector is more evidence of cooling in the economy since

the start of the year and raises concerns about the ability for the U.S. to generate

sustained stronger growth when the global economy is faltering.

14. Increasing service supplies and improving service qualities will help unleash huge

potential in domestic demand, and thus offer firm support for stable economic growth

and structural optimization.

15. U.S. manufacturing output unexpectedly declined in March by the most since

February 2015, indicating factories remain scarred by global challenges that are slow

to dissipate.

16. Britain exited recession last month with the strongest quarterly economic gain in five

years, even as experts warn of an uneven path to recovery amid a global slowdown

and the ongoing European debt crisis.

17. Since American exports only accounted for 7% of GDP in 1929, falling trade

volumes can only explain part of the 29.5% reduction in real GDP it experienced

between 1929 and 1933

VOCABULARY CHECK

Exercise № 12


1. Доля РФ в мировом экспорте наукоемкой продукции не превышает 0,3%.

133

2. Неэффективная денежно-кредитная политика правительства не смогла

стимулировать экономическое оживление в стране.

3. По данным информационного агентства Блумберг, доля сферы услуг в валовом

внутреннем продукте Китая в 2013 г. впервые превысила долю промышленного

производства, а доля сельского хозяйства сократилась до 10%.

4. Перед лицами, ответственными за разработку экономической политики, стоит

серьезная задача – стимулировать компании увеличить расходы на НИОКР.

5. По данным Института проблем естественных монополий, на долю экспорта

сырья приходится 40% ВВП РФ, тогда как доля высокотехнологичных отраслей

с высокой добавленной стоимостью составляет менее 10%.

6. Производительность труда в обрабатывающей промышленности является

важным мерилом (показателем) уровня развития страны и основной движущей

силой экономического роста.

7. Существенное увеличение объемов добычи нефти некоторыми странами ОПЕК

стало причиной избыточного предложения на мировом рынке и резкого

падения цен.

8. Поскольку спрос на производимые компанией потребительские товары

длительного пользования растет, руководство планирует увеличить загрузку

производственных мощностей и построить новые мощности по производству и

сборке комплектующих.

9. В развитых странах обрабатывающая промышленность, когда-то являвшаяся

основным источником повышения уровня занятости и роста

производительности, сегодня сталкивается с серьезными проблемами, такими

как ограниченные запасы природных ресурсов, электроэнергии и нехватка

высококвалифицированных кадров.

10. Компании горнодобывающей промышленности отличаются высокой

капиталоемкостью и остро нуждаются в привлечении частного отечественного

и зарубежного капитала для освоения новых месторождений и обновления

технологического оборудования.

134

TOPICAL VOCABULARY UNIT II

1. agriculture / farming

2. services

to render / provide services

3. ferrous / non-ferrous / precious metals

4. raw / crude materials

5. commodities

6. resource(s)

7. energy

atomic / nuclear energy / nuclear power

clean / green / environmentally friendly / nature-friendly energy

electric / solar / thermal / tidal / wind / fossil-fuel energy

8. fossil fuels

9. power plant / power station

10. petroleum / gasoline

11. off-shore areas

12. plant / factory /mill

13. capacity

overcapacity / excess capacity/surplus capacity/overhang

spare capacity / reserve capacity

idle capacity

capacity utilization

14. equipment / machinery

to install equipment

15. products / goods

16. production

capital-intensive production

labour-intensive production

knowledge-intensive production

raw materials intensive / resource–intensive production

production costs

production process

production techniques

135

mass production

to shift production

17. productivity

18. produce (v, n)

19. productive / counterproductive

20. input(s) / factors of production

21. efficiency

22. resilience

resilient

23. viable/unviable

24. facilities

production facilities

idle facilities

25. assets

26. capital goods / (durable) consumer goods

27. blue collars / white collars / green collars

28. workshop

29. white goods / brown goods

30. components

31. spare parts

32. supplier

to supply

supply chain

33. customer

34. assembly

to assemble

moving assembly line

35. warehouse

36. costs

fixed costs

variable costs

to cut costs

37. profit

136

38. earnings

39. subsidy

to subsidize

40. outsourcing

41. offshoring/reshoring

42. operations

43. to process

44. challenge (n, v)

to meet/face/address the challenge

45. natural gas

46. shale gas

47. petrochemical

48. barrel

49. gain

50. iron ore

51. prospects

52. disruption

to disrupt

53. target

54. rival / competitor

55. renewable power sources

56. capital spending / capital expenditure

57. heavy/ light industry

58. sunset/sunrise industry

59. core / non-core business

60. research and development

61. to surpass/to outperform/to outrun

62. operations

137

UNIT THREE

THE LABOUR MARKET

LEAD-IN

Read the article and answer the questions that follow.

The labour market is a term used to describe the relationship between the

workplace (available employment) and the workforce (people, aged 16 and over, who are

working or are available to work). A labour market is said to be healthy if there is enough

work available for all those who seek it. Most countries in the world have some difficulty

achieving or maintaining a healthy labour market.

Labour markets may be local or national (even international) in their scope and

are made up of smaller, interacting labor markets for different qualifications, skills, and

geographical locations. They depend on exchange of information between employers and

jobseekers about wage rates, conditions of employment, level of competition, and job

location.

Firms' ability to make changes to their workforce in terms of the number of

employees they hire and the number of hours worked by the employees is called Labour

Market Flexibility. A flexible labour market is one where firms are under fewer

regulations regarding the labour force and can therefore set wages (i.e. no minimum

wage), fire employees at will and change their work hours. A labour market with low

flexibility is bound by rules and regulations such as minimum wage restrictions and

requirements from trade unions.

In fact we find that a flexible labour market has several characteristics:

Occupational (functional) flexibility – this refers to the ability of the workforce

to perform different tasks and to acquire and apply transferable skills. A worker with

transferable skills will be able to move easily from one job to another – they will be

occupationally mobile. Flexibility can also be encouraged by better training, and provide

incentives for people to adapt their skills.

Contractual flexibility: In many industries, workers are now offered jobs on six

months, sometimes on month-to-month contracts. There are even some instances of zero

138

hour contracts – where the number of hours that someone is asked to work will vary from

week to week – but with no guarantee of any hours being available at all.

Wage flexibility: Wage flexibility refers to the ability of changes in real wages to

eliminate imbalances between the supply of and demand for labour.

Geographical flexibility: Many businesses now expect their workers to be able

to move within and across different regions and countries as part of their career

development. There are always natural barriers to geographic mobility of labour,

particularly across national borders, but also within individual countries. These barriers

relate to family commitments, career progression and benefits and property (for example

the costs involved in moving home).

Employment is the primary source of personal income and has a major influence

on consumer spending and overall economic growth. Thus, the unemployment rate,

which is a lagging indicator, and is the percentage of the total labor force that is

unemployed but actively seeking employment and willing to work can provide

considerable information about the state of the economy or the health of particular

business sectors. For example, high unemployment generally indicates that an economy

is underperforming or has a falling GDP.

Even in a healthy economy, there will always be some level of unemployment.

The natural rate of unemployment (also known as the non-accelerating-inflation rate of

unemployment, or NAIRU) is the unemployment rate that occurs because workers are

always coming and going, looking for a better job, and often they are unemployed until

they find that better job. NAIRU- is the lowest level of unemployment at which inflation

will remain stable. When unemployment is above the natural rate demand can potentially

be increased to bring it to the natural rate, but attempting to lower it even further will

only cause inflation to accelerate. Economists still disagree over what jobless rate at any

particular point in time is the NAIRU, but nobody any longer thinks that the natural rate

is fixed. Indeed, some think the concept has no meaning at all.

The unemployment rate can be a good indication of the economy's state. High

unemployment rates show a lack in the growth of the economy and vice versa. Also, high

levels of unemployment result in a decrease in general consumption (people have less

money to spend as they are searching for jobs) and this will contribute to slow business

growth. Extremely low unemployment rates have proved to be more costly than valuable,

139

because an economy operating at near full employment will cause a rise in prices because

of more disposable income among the population.

Some types of unemployment are actually positive for the individual and the

economy. Other types are bad for the individual but benefit society. Last, there is one

type of unemployment that is both bad for the individual and is costly to society. The

three types of unemployment are frictional, structural, and cyclical.

Frictional Unemployment is unemployment that comes from people moving

between jobs, careers, and locations. Sources of frictional unemployment include the

following:

People entering the workforce from school.

People re-entering the workforce after raising children.

People changing employers due to quitting or being fired (for reasons beyond

structural ones).

People changing careers due to changing interests.

People moving to a new city (for non-structural reasons) and being unemployed when

they arrive.

Structural Unemployment is unemployment that comes from an absence of

demand for the workers that are available." There are two major reasons that cause an

absence of demand for workers in a particular industry:

Changes in Technology: As personal computers replaced typewriters, typewriter

factories shut down, leading to workers in typewriter factories losing their jobs.

Changes in Tastes: If bagpipes become unpopular, bagpipe companies will go

bankrupt and their workers will be unemployed.

Seasonal unemployment is unemployment due to changes in the season - such as

a lack of demand for department store Santa Clauses in January. Seasonal unemployment

is a form of structural unemployment, as the structure of the economy changes from

month to month.

Cyclical Unemployment occurs when the unemployment rate moves in the

opposite direction as the GDP growth rate. So when GDP growth is small (or negative)

unemployment is high. Getting laid off due to a recession is the classic case of cyclical

unemployment.

The stability of the economy rests on the ability to maintain a low unemployment

rate and provide a safe, secure workplace. Employees benefit from an enjoyable

140

workplace, and in turn businesses save money. When a solid relationship exists between

the individual and her working environment, society benefits overall as well.


1. What is the labour market and when is it considered to be healthy or unhealthy?

2. What are the types of labour markets, according to their scope, location, etc.?

3. When is the labour market called “flexible”? What are its characteristics?

4. What is occupational flexibility? And contractual flexibility? What does the wage

flexibility refer to? And geographical flexibility?

5. How can flexibility be encouraged? Is it necessary to bolster it?

6. What does the rate of unemployment measure and what essential information can it

give?

7. What is NAIRU? Is it a fixed and reliable indicator? What is its role in the economy?

8. Can an economy have zero unemployment? Why? Why not?

9. What do high levels of unemployment result in?

10. What impact can operating at near full employment have on the economy?

11. What are the three types of unemployment?

12. What are the reasons for the different types of unemployment?

13. Is unemployment always a negative phenomenon?

ACTIVE VOCABULARY

1. labour market healthy labour market

flexible labour market tight labour market

рынок рабочей силы, рынок труда благоприятная ситуация на рынке

труда гибкий, мобильный рынок труда рынок труда с высоким спросом на

рабочую силу при ограниченном предложении

2. labour syn. labour force, workforce labour flexibility/ mobility labour costs

рабочая сила

мобильность рабочей силы издержки на оплату труда

141

3. to employ/ to hire ant. to fire to lay offemployeeemployer

нанимать на работу ант. увольнять с работы уволить в связи с сокращением штатасотрудник, работникработодатель

4. employment conditions of employment full-time/full employment

part-time employment

payroll employment

unemployment rate syn. rate of unemploymentant. employment rate

natural rate of unemployment (NAIRU)

прием на работу, занятость условия найма/ условия труда работа полный рабочий день или на

полную ставку работа неполный рабочий день или не

на полную ставку занятость по данным платежных

ведомостей уровень безработицы

ант. уровень занятости естественный уровень безработицы

5. wage average wage minimum wage wage inflation

wage rate to set wages to lift wagessalarypay

заработная плата (рабочих) средняя ставка зарплаты минимальная зарплата инфляция, вызванная ростом

зарплаты ставка зарплаты устанавливать зарплату повышать зарплату

заработная плата (служащего)заработная плата

6. competition competitive competitiveness competitor

syn. rival

конкуренция конкурентоспособный конкурентоспособность конкурент

7. skill semi-skilled/skilled/unskilled

labour

skilled trade

transferable skills to apply skillsqualification

квалификация, навыки малоквалифицированная/

высококвалифицированная/ неквалифицированная рабочая сила

профессия, требующая квалифицированного труда

навыки широкого применения применять навыки

квалификация

142

8. trade union профсоюз

9. indicate indicator indication

указывать, показывать, служить признаком показатель знак, признак

10. perform performance underperformance of the

economy, underperforming economy

исполнять, выполнять, осуществлять показатель, параметр слабая экономическая активность,

функционирование экономики в условиях неполной занятости

11. to contribute to 1) способствовать, содействовать2) внести вклад

12. a rise in / growth in рост

13. income disposable income

доход, поступления, выручка располагаемый доход (т.е. после

выплат налогов)

14. frictional unemployment временная безработица, связанная с переходом с одной работы на другую (фрикционная безработица)

15. structural unemployment структурная безработица

16. seasonal unemployment сезонная безработица

17. cyclical unemployment циклическая безработица

18. demand for спрос на

19. benefit to benefit from beneficial unemployment benefit

преимущество, привилегия, польза извлекать выгоду из чего-либо выгодный, благоприятный пособие по безработице

Exercise № 1


cyclical unemployment; source; vice versa; consumption; disposable income; labour

market; qualifications; minimum wage; zero percent unemployment; employee; to

143

compete; competition; individual; authorized bodies; to quit; equality; postponement;

work schedules; data; ageism; a monthly increase; shortage; to substitute; euro zone;

inconsequential; to analyze; overhaul; innovative; eligibility

Exercise № 2


flexible labour market; level of competition; to maintain a healthy labour market; to

determine the level of employment; trade unions; frictional unemployment; to be laid off;

the natural rate of unemployment; to be bound by rules and regulations; reduced labour

costs; stronger competition; wage rate; to contribute to slow growth; weaker demand for

unskilled labour; consumer spending; part-time employment; to perform different tasks;

health of business sectors

Exercise № 3


установить минимальный уровень заработной платы; нанимать и увольнять

сотрудников; структурная безработица; пособие по безработице; рост цен; уровень

конкуренции; условия найма; спрос на рабочую силу; извлекать выгоду;

способствовать повышению ВВП; показатель состояния экономики; естественный

уровень безработицы; квалифицированная рабочая сила, снижение общего уровня

потребления; личный доход; располагаемый доход


1. Go to

Full Employment http://www.investopedia.com/video/play/full-employment/

Participation Rate http://www.investopedia.com/video/play/tertiary-industry/

Unemployment Rate http://www.investopedia.com/video/play/unemployment-

rate/

How Is Unemployment Rate Defined

http://www.investopedia.com/video/play/how-unemployment-defined

144

http://www.investopedia.com/video/play/how-unemployment-defined

http://www.investopedia.com/video/play/unemployment-rate/

http://www.investopedia.com/video/play/unemployment-rate/

http://www.investopedia.com/video/play/tertiary-industry/

http://www.investopedia.com/video/play/full-employment/





Why America's men aren't working

The national unemployment rate has fallen by more than half since the nation

emerged from the worst economic crisis since the Great Depression. It peaked at 10

percent in 2010 and stood at just 4.7 percent last month.

That's mostly good news: Private employers have added more than 14 million

jobs. About 2 million people have been out of a job for six months or longer, far too

many but only about a quarter of the number of long-term unemployed people seven

years ago. By almost every measure, the labour market has made incredible progress.

But there's one statistic that has been vexing economists. The size of the nation's

workforce known as the labour force participation rate continues to fall. Since the start

of the downturn, the percentage of that population that has a job or is looking for one has

dropped more than 3 percentage points, to 62.6 percent, a level not seen since the 1970s.

The problem is particularly pronounced among men between the ages of 25 and

54, traditionally considered the prime working years. Their participation rate has been

declining for decades, but the drop-off accelerated during the recession. The high mark

was 98 percent in 1954, and it now stands at 88 percent. A new analysis from the White

House's Council of Economic Advisers found that the United States now has the third-

lowest participation rate for "prime-age men" among the world's developed countries.

In other words, Greece, Slovenia and Turkey have a larger share of men in their

workforces than the United States does. The United States beats only Italy and Israel.

The CEA's analysis looks at several common theories behind why so many

American men have dropped out of the job market. Legions of women have joined the

workforce since the 1950s, when about one-third of them had a job or were looking for

one. Women's participation rate topped 50 percent in the late 1970s and peaked at about

60 percent in the early 2000s. Perhaps fewer men are working because their wives are

bringing home the bacon instead.

145

But the share of women in the workforce also has decreased significantly since

the recession. And the CEA found that less than a quarter of prime-age men who are not

in the labour force have a working spouse and that number has actually declined over

the past 50 years.

Economists have posited that Social Security Disability Insurance could be

incentivizing men to enroll in government assistance rather than look for work. The

number of disability insurance recipients has risen by 2 percent since the late 1960s, not

enough to account for the much greater drop in the male workforce. The CEA estimates

that the increase in disability insurance explains only about half a percentage point of the

decline in the male participation rate.

Instead, the CEA concludes that the problem is one of education and the erosion

of demand for low-skilled workers. More than 90 percent of college-educated men are in

the workforce, compared with 83 percent of those with a high school diploma or less. It's

a theme seen time and again in our increasingly globalized and high-tech economy: Blue-

collar jobs that were once the cornerstone of the middle class get outsourced or replaced

by automation.

There's a ripple effect, too. When a manufacturing plant shuts down, for example,

the laid-off employees may wind up in lower-skilled jobs, displacing those workers and

potentially forcing them out of the labour market.

The lower the wage, the more likely workers are to pass up the job altogether.

The CEA looked at state-level data and found that among the bottom 10 percent of wage

earners, a $1,000 increase in annual income boosted the participation rate by 0.16 percent

for prime-age men.

"When the returns to work for those at the bottom of the wage distribution are

particularly low, more prime-age men choose not to participate in the labour force," the

report states.

The report also explores one more unorthodox explanation: the high number of

men who have been incarcerated. The CEA notes that the U.S. prison population has

grown significantly since 1990 and is far above that of any other developed country.

People in prison are not counted as part of the population for the purposes of

labour market statistics. At first blush, that would actually boost the participation rate: A

smaller population means the share in the workforce is larger. But in reality, there are

immense and well-documented barriers to the job market for workers once they leave

146

prison. And the gloomy prospects of the formerly incarcerated outweigh the statistical

benefit of having a large prison population.

Of course, the CEA argues that White House proposals — from familiar positions

such as raising the minimum wage and expanding the earned-income tax credit to

wonkier ones such as reforming community colleges and flexibility in claiming

unemployment benefits — can help more men return to the workforce.

But the bigger question is whether there is really a way to reverse the tide, or if

the best hope is to merely mitigate the pain. For 60 years, economists have debated the

answer. And still, the share of men in the workforce continues to shrink.The Washington Post, June 20th, 2016


labour force participation rate – доля экономически активного населения

prime working years – годы активной трудоспособности

prime-age man – мужчина в активном трудоспособном возрасте

disability insurance – страховка по нетрудоспособности/инвалидности

ripple effect – цепная реакция, эффект домино, мультипликационный эффект

to pass up – отвергать, отказаться

to mitigate – смягчать, уменьшить, ослабить, успокоить

Exercise № 4



1. The US unemployment rate has fallen by more than half since the Great Depression.

2. The number of long-term unemployed people was lower seven years ago than at

present.

3. The nation’s labour force participation rate continues to tumble.

4. The share of the population that has a job or is looking for one has soared more than

3 percentage points since the start of the recession.

5. The US now has the highest participation rate for men between the age of 25 and 54

among the developed countries.

6. More women worked in the early 2000s than in the 1970s.

147

7. Their percentage in the workforce has surged since the downturn.

8. The number of unemployed prime-age men who have a working wife has shrunk over

the past 50 years.

9. The main cause of the drop in the male workforce is the increase in the number of

disability insurance recipients.

10. CEA sees the problem in increasing globalization and automation.

11. The lower the wage, the fewer prime-age men are inclined to return to the labour

force after being laid off.

12. The US number of imprisoned men is far above that of any other developed country.

Exercise № 5

What context are the following figures mentioned in?

0,16; 2, 3, 6, 7, 25, 54, 60, 88, 90

Exercise № 6


to be out of a job; long-term unemployed people, percentage of the population; prime-

age men; downturn; to top 50 percent; to account for the drop in the male workforce;

erosion of demand for low-skilled workers; increasingly globalized economy; blue-collar

jobs; labour market statistics; to outsource; state-level data

Exercise № 7


выйти из экономического кризиса; годы активной трудоспособности; доля

экономически активного населения; страховка по нетрудоспособности; завод-

изготовитель; увеличение годового дохода; цепная реакция; повышение уровня

минимальной заработной платы; пособие по безработицы

148



United workers of the worldUnbalanced skill levels could make the world more unequal

The working world was much cosier in 1980. Just 1.7 billion people were picking

up a pay packet a generation ago, nearly half on farms. Globalisation has since upended

labour markets. In 2010 the world counted 2.9 billion workers, with the emerging world

responsible for most of the increase: it added 900m new non-farm workers, of which

400m live in China and India alone. The meaning of these striking numbers is the subject

of a new study by the McKinsey Global Institute, the consultancy's research arm.

The integration of China's and India's masses into the world's labour market lifted

legions out of poverty. The transition from soil-scratching powered rapid growth. China's

non-farm workers are seven times more productive than peasants. India's performance

lagged behind China's because it struggled to move workers away from agriculture. Non-

farm employment merely kept pace with the overall growth of India's labour force.

In rich countries, competition from millions of new, low-skilled workers has

acted as a drag on wages for less-skilled ones in advanced economies. At the same time,

rich-world firms have invested heavily in new technology, raising demand for skilled

workers faster than schools could increase supply. In combination, these two trends

raised inequality in developed countries and strengthened the hand of capital relative to

labour. Workers' share of overall income fell 7 percentage points between 1980 and

2010.

These dynamics will continue, but also change, reckon the authors of the study.

Despite great efforts to improve schools and universities, workers in the emerging world

are less educated than those elsewhere. Some 35% in China and a stunning 70% in India

have no more than a primary education. Yet this will change: China and India, McKinsey

predicts, will be the world's main source for skilled workers over the next two decades.

The two countries alone will add 184m college graduates to the global labour market. As

a result, the centre of gravity of human capital and innovation is likely to shift towards

Asia.

The main story in advanced economies will be the rapidly ageing workforce.

Retirements will take 12m college-educated workers out of the labour force by 2030. In

149

many countries the labour force will even shrink. Rapid productivity improvements will

be necessary to maintain income growth, particularly in the parts of southern Europe that

produce and procreate the least. At current labour-force participation rates, Spain, Italy,

Greece and Portugal will need productivity growth of 1.4% a year—more than twice

what they managed between 1990 and 2010—simply to keep up recent growth rates in

output per head.

Taken together, these developments will lead to big skills imbalances. McKinsey

estimates that over the next decade rich countries and China will need 40m more college-

educated workers than they will be able to produce. At the same time, employers across

the world may find themselves with 90m more low-skilled workers than they need. This

glut will drag down wages, worsening inequality.

Governments can mitigate the worst effects, McKinsey argues. Innovation in

higher education, such as online teaching, would help raise the supply of skilled workers.

Labour-market reforms would increase demand for less-skilled workers, particularly in

service industries such as health care. Tax incentives would encourage households to

“outsource” household chores to paid workers. Yet in a global labour-market that will be

3.5 billion strong in 2030, competition is bound to be intense and often uncomfortable,

for workers and governments alike.The Economist, June 16th, 2012


pay packet - зарплата

productivity — 1)производительность 2) продуктивность

to lag behind - отставать

labour force participation rate - доля экономически активного населения; число

работающих, безработных и лиц, ищущих работу по отношению к остальному

населению.

to drag down- снижать


1. What impact did globalization have on labour market?

2. What countries were the main driving forces of this transformation? What were the

most dramatic consequences of their integration into the global labour pool?

150

3. What are the key labour market trends in developed economies? What have they

resulted in?

4. How do knowledge indicators in emerging economies compare with those in rich

countries? How will the situation change in the near future, according to the recent

study by the McKinsey Global Institute?

5. What is the key labour market concern in industrialized economies? What is essential

for further income growth?

6. What according to the author are the likely consequences of these labour market

developments? What steps can governments take to reduce the negative effects?

Exercise № 8

Find in the text the words and word combinations that match the following definitions.

1. the amount of money a person earns –

2. the average span of time between the birth of parents and that of their offspring

(generally considered to be about thirty years) –

3. economies in the low- to middle-income category that are advancing rapidly and are

integrating with global and product markets –

4. to proceed at the same speed as –

5. a period of 10 years

6. to achieve less than someone or something else –

7. a pattern or process of change, growth or activity –

8. ending your working or professional career –

9. the total number of people who are eligible to work -

10. an excessive quantity –

11. to make something less severe, serious or painful –

12. a reduction in taxes that encourages companies or people to do something that will

help the country’s economy –

13. a domestic unit consisting of the members of a family who live together with

nonrelatives such as servants

151

Exercise № 9

Explain or paraphrase the following sentences.

The working world was much cosier in 1980.

The integration of China's and India's masses into the world's labour market lifted

legions out of poverty.

India's performance lagged behind China's because it struggled to move workers

away from agriculture.

These two trends strengthened the hand of capital relative to labour.

The transition from soil-scratching powered rapid growth.

In rich countries, competition from millions of new, low-skilled workers has acted as

a drag on wages for less-skilled ones in advanced economies.

The centre of gravity of human capital and innovation is likely to shift towards Asia.

These developments will lead to big skills imbalances.

Tax incentives would encourage households to “outsource” household chores to

paid workers.

The global labour-market will be 3.5 billion strong in 2030.



Why Japan’s Economy Is Labouring

As Abenomics stalls, Prime Minister Abe is turning his focus to a major economic

drag: Japan’s labour market

The struggles of temporary workers have gotten the attention of Prime Minister

Shinzo Abe, who says reforming the way Japan works will be his government's biggest

challenge in the next three years.

After three years, the prime minister’s Abenomics revival plan is stalling, with

growth and inflation both around zero. The nation’s labour market is a big reason why. It

feeds a range of the country’s core problems: weak wage growth, low productivity and

investment even low rates of marriage and births.

152

“I believe reforming our way of working will be the biggest challenge of the next

three years,” Mr. Abe told The Wall Street Journal in an interview this week. “It will be

the key to enabling the Japanese economy to grow in a sustainable manner.”

He said he wants to ensure equal pay for equal work, lifting wages for workers

without permanent jobs. He is pushing to get help for workers, mostly women, who have

to balance their jobs with caring for children and elderly relatives. Those initiatives

include more child- and elder-care facilities and broadening eligibility for child-care

leave.

After Japan’s asset bubble burst in the early 1990s, companies sought more

flexibility in hiring and firing, increasingly turning to nonregular workers. Japan Inc.,

saddled with overcapacity and debt, faced a choice: cut jobs or cut pay. It chose the latter,

reflecting the view in Japan that big companies are public institutions with a

responsibility to provide employment.

But protecting permanent employees led to the expansion of a second tier of

nonregular workers as companies, through years of economic stagnation and falling

prices, hired more workers they could more easily dismiss in bad times.

Workers in the first tier are still essentially guaranteed lifetime employment.

Workers in the other, now accounting for 38% of nonexecutive employees, earn far less,

even for doing the same job as permanent workers. They receive little formal training,

aren’t represented by unions and flit from posting to posting, blocked from advancement

by permanent workers.

“If you’ve had only irregular jobs, by the time you are in your 30s, you aren't an

attractive employee,” said Richard Katz, editor of the Oriental Economist Report.

Nonregular workers’ precarious status and low pay also make them unattractive

as potential spouses, a problem in a nation with a shrinking population. Only 27% of men

in their 30s with nonregular jobs were married last year, compared with 66% of men the

same age with permanent jobs, according to government statistics.

Reforming the dual labour market is one of the most important issues Japan faces,

said Randall S. Jones, chief economist for Japan and South Korea at the Organization for

Economic Cooperation and Development. It is a big drag on labour productivity, in

which Japan ranks in the bottom half among OECD nations a primary reason the

nation’s potential growth rate is now so low, he said.

153

The high level of protection for permanent employees limits the flow of talent and

money into more-promising companies, and innovative startups struggle to attract

venture capital because they can’t hire the employees they need, Mr. Jones said.

Mr. Abe has long stressed the importance of higher wages, but he initially paid

little heed to the labour divide, putting priority on policies such as monetary easing as a

way to drive corporate profits and pay higher. This year, as the economy continues to

struggle despite the Bank of Japan’s introduction of negative interest rates, he has

changed course.

A panel of experts convened by the prime minister began meeting in late March

to study the labour market’s effects on wages and to recommend any necessary changes

to labour laws. Mr. Abe said a change in terminology was needed too: “I want to

eliminate the word ‘nonregular’ from the lexicon,” he said in the interview.

Many are skeptical significant overhauls will be passed. Business leaders have

long pushed for more flexibility in firing permanent workers, but they express wariness

about Mr. Abe’s focus on equal pay, which is already required under existing law but

rarely enforced. They say efforts to enforce it would be burdensome.

Sakie T. Fukushima, head of the employment and labour-market committee at the

Japan Association of Corporate Executives, an influential lobbying group, said Japan

needs to change its beliefs about work and the employee-company relationship, including

the ideas that a permanent job is best and companies should never fire anyone. Workers

should be paid according to productivity and achievements, she said, meaning some

nonregular workers should earn more than their permanent counterparts.

On Mr. Abe’s push for equal pay, she said: “It is wonderful that he has put his

mind to it and is making efforts to correct it. But if you handle it wrongly, you could

create a situation where companies lower wages of regular workers to pay the others

more.”

Mr. Abe has stressed the need to get everyone working, and the labour

participation rate has risen during his three years in office, pushing the unemployment

rate to a two-decade low. But the headline figures mask underlying weakness. During

Mr. Abe’s tenure, the number of regular workers has fallen, while the percentage of

nonregular workers has hit a record.

The jump in labour participation has been fueled mostly by an increase in the

number of married women and people aged over 60 taking part-time jobs as incomes of

154

heads of households fall and the pension age rises, Goldman Sachs said in a January

report.The Wall Street Journal, April 8th, 2016


child-care leave – отпуск по уходу за ребенком

overhaul – реорганизация, радикальное изменение, пересмотр

headline figure/rate – общий показатель/уровень


1. What does Mr Abe see as a key to Japan’s sustainable growth?

2. What does he want to ensure by reforming the Japanese way of working?

3. What policy did Japanese companies choose after Japan’s asset bubble burst in the

early 1990s and why?

4. What kind of workers belongs to a second tier and what differs it from the first one?

5. Why is it important to reform the Japanese labour market?

6. What views about work and employee-company relationship should Japan change?

7. What do labour market statistics during Mr Abe’s tenure show and what can they be

attributed to?

Exercise № 10


weak wage growth; low productivity; low rates of marriage and births; equal pay for

equal work; lifting wages; permanent jobs; more child-and elder-care facilities; more

flexibility in hiring and firing; nonregular workers; to dismiss workers in bad times; a

panel of experts; under existing law; employee-company relation; labour participation

rate; headline figure

Exercise № 11


обеспечить занятость; постоянные работники; экономический кризис;

гарантировать пожизненную занятость; отпуск по уходу за ребенком; уменьшение

155

численности населения; уровень экономически активного населения; самый

низкий за два десятилетия уровень безработицы; достичь самого высокого уровня

VOCABULARY PRACTICE

Exercise № 12

to rise – подниматься, восходить, увеличиваться

to raise – 1) повышать, увеличивать; 2) вызывать; 3) мобилизовать, собирать

(средства, финансы)

The Sun rises in the east. The government is raising the taxes.

Fill in the gaps with the appropriate verb.

1. Inflation [________________] by 0.5 percent last year, the lowest increase since

1992.

2. It would be a mistake to argue that central banks should attempt to [____________]

interest rates soon.

3. America’s rich should pay more, but there is no need to [______________] their

income-tax rates.

4. Instead, in Paris, as P&G’s share price tumbled, doubts were being [_____________]

about the sustainability of Mr McDonald’s (the President and Chief Executive Officer

of P&G) hold on his job.

5. Industrial use of oil [______________] by over 200 % in the 1970s whilst industrial

use of coal fell by the same proportion.

6. Companies will have to [___________] wages as a result of the tight labor market.

7. Corporate investment in capital equipment surged, helping GDP to

[______________] for the seventh straight quarter.

8. The hardest part in starting a business is figuring out how to [______________]

money for your business.

9. Fund [______________] is a significant way that non-profit organizations may obtain

the money for their operations.

10. There is increasing pressure on exporters to [__________] prices in foreign markets.

11. At the age of 32, she has [_______________] to the top of her profession.

156

12. The Bank of England was expected to [______________] the cost of borrowing after

higher than expected inflation figures.

Exercise №13

to hit – поражать, наносить урон, негативно сказаться

to be badly hit — понести серьезный урон, сильно пострадать

to hurt – 1) причинять ущерб, негативно сказаться; 2) задевать, затрагивать

to affect – (негативно)влиять, сказываться, воздействовать;


1. Pensonic and companies like it have been hit by a wave of Chinese manufacturers

using Southeast Asia as a base to build up a distribution and after-sales network.

2. South Korean firms are being hurt by growing output among Chinese producers and

by the won’s recent strength against the yen, which is helping Japanese rivals.

3. China’s cooling demand for steel is affecting ore miners.

4. The rise in the value of the dollar hurt exports even more than might have been

expected.

5. The 2015 Economic Report suggests reforming the tax system, which hits

manufacturing firm hard.

6. India is hurt far less than other emerging markets by what is happening in China.

7. Much of the economic weakness so far has been concentrated in industries affected

by the sharp drop in oil prices.

8. The expectation that the American government may soon lift a decades-old ban on

exports of crude from the United States may also be affecting prices.

9. Manufacturers, who have been hit by the global economic slowdown and the strong

dollar, shed 3,000 positions in May.

10. Mitsubishi's sales in the domestic market drop 27 per cent. Mazda followed with a

12.6 per cent decline, while Toyota was hit with a 13.5 per cent decline.

11. Falling commodity prices also mean that oil and metals producers are not investing in

new plant and equipment, which hurts the companies that produce such goods.

12. The move is part of a broader cost-cutting campaign announced last year that is

expected to affect about 10,000 jobs over three years.

157

Exercise № 14

to offset – 1) компенсировать, возмещать; 2) сводить на нет, нейтрализовать.


1. Recovery in the US economy and growing demand from China – South Korea’s two

biggest export markets – has offset the continued sluggishness in domestic

consumption

2. The adverse impact of a stronger dollar on exports has been partly offset by stronger

global demand for commodities, especially from China.

3. Although China’s share has grown since early 1990s, this has been largely offset by

the decline in Japan, whose share of output and exports has halved.

4. Manufacturing makes up about 17 per cent of the Canadian economy, and

manufacturing strength has helped offset weakness caused by the global decline in

commodity prices.

5. Increased turnover in food services, household-goods retailing and food retailing

were offset by falls in “other” retail and clothing and footwear.

6. Four percent decline in sales outside North America had partially offset seven

percent increase in Asia.

7. The impact on profits at British Gas of higher domestic consumption was being

largely offset by higher wholesale gas prices, increased transmission costs and the

burden of environmental costs imposed by government.

8. The weakening Australian dollar should also do a little to offset weak gold prices.

9. Oil trends in developed markets are helping offset concerns about a slowdown in the

Chinese economy, which has underpinned oil demand growth for several years.

10. Price increases in Europe helped to offset declining demand.

11. The quarter was marked by modest growth in consumption and investment offset by

falling government spending.

12. The decline in spending on food products was offset by expenditure on durable goods

and energy products.

158

TRANSLATION SKILLS

I. ИНФИНИТИВНАЯ КОНСТРУКЦИЯ «СЛОЖНОЕ

ПОДЛЕЖАЩЕЕ»

1. Предложение с этим оборотом, как правило, переводится

сложноподчиненным предложением, главное предложение которого представляет

собой неопределенно-личное предложение типа: «по-видимому», «оказалось»,

«говорят», «сообщают», «известно» и т.д., придаточное дополнительное вводится

союзами что и как.

The plan is reported to include North American plant closure.

Сообщают, что в план входит закрытие завода в Северной Америке.

2. Если эта конструкция употреблена в придаточном предложении (обычно в

определительном придаточном) или в причастном обороте, то неопределенно-

личное предложение в переводе обычно выступает в роли вводного предложения.

A move which Fed is expected to make is an attempt to avoid deflation.

Шаг, который, как предполагают, собирается предпринять ФРС, является

попыткой избежать дефляции.

3. Если в английском предложении сказуемое стоит в отрицательной форме, то

при переводе на русский язык отрицание часто переносится в придаточное

предложение.

The US economy is not expected to slow down.

Ожидается, что темпы роста экономики США не замедлятся.

4. Обратите внимание на перевод следующих выражений:

(He) seems to ... , appears to ... кажется, представляется, что ... по-

видимому (он) ...

happens (happened) to ... случайно (он) ..., случилось так, что ...

turns out to…, proves to ... оказывается (он) ...

tеnds to… как правило, (он) ...

is considered to ... считают (считается), что ...

is thought to ... считают, думают, что ...

159

is understood to ... по имеющимся сведениям (он) ...,

считают (считается), что ...

is estimated to ... по оценкам ...

is projected to ..., is forecast to… по прогнозам ...

is alleged to ... утверждают, считают, что (он) якобы . . .

is heard to ... имеются сведения, что (он)...

is seen to ... считается, рассматривается

(рассматривают), что...

is felt to ..., is reckoned to….. считают, что ...

is likely to ... похоже на то, что ..., по всей вероятности,

вероятно ...

is unlikely to ... маловероятно, чтобы..., едва ли …, вряд ли

is sure (certain) to ... (он) обязательно, наверняка, несомненно...

It remains to be seen ... остается неясным ...

После слов likely (unlikely), sure, certain действие, выраженное

инфинитивом, обычно относится к будущему времени.

The economic problems facing France are certain to have strong

repercussions. Стоящие перед Францией экономические проблемы

наверняка будут иметь серьезные последствия.

Exercise № 15


1. Structural reforms are vital to boosting growth, but these are unlikely to produce big

results in the short term.

2. The ECB effort is intended to make it cheaper for banks to lend money into the real

economy. It remains to be seen how it will work, but the ECB clearly believes it is

necessary to take the drastic action.

160

3. Economic activity tends to revive naturally after a few years of stagnation, once

companies invest a bit more and rebuild their stocks.

4. The company appears to be gaining strength; its sales in America seem to be

recovering quickly.

5. The Minister is reported to be worried by the rise in the cost of living index, because

of the effect it may have on his wage restraint policy.

6. Net profits for the year to March 31st are now expected to hit a record high, and the

company is hiring back laid-off workers.

7. The company is understood to have found oil in this region.

8. In the same quarter Japan’s GDP is estimated to have fallen at an annualized rate of

10%, Singapore’s at 17% and South Korea’s at 21%.

9. Despite the scale of the monetary and fiscal stimuli applied, the recovery in the

advanced countries are almost sure to be anaemic.

10. The warnings are now shown to have been fully justified: thousands of workers will

get the sack.

11. Sales are projected to edge up to about 12 million this year, with Detroit’s share

running at 46 percent.

12. Several optimists still say the March number will turn out to be a blip caused by

special factors.

13. Industrial overcapacity in Japan is thought to be much higher than in America or

Europe.

14. Thanks to the fall in tax receipts caused by the housing-market collapse, Ireland’s

budget deficit is forecast to hit 5.5% of GDP this year – well beyond the 3% limit

imposed by Brussels.

15. Despite the recent influx of foreign capital, however, many Japanese business

practices don’t seem to have changed

16. The M&A deals are likely to continue, since the credit markets seem unlikely to

rebound in the near future.

II. ПЕРЕВОД СЛОЖНЫХ АТРИБУТИВНЫХ КОНСТРУКЦИЙ

Определенную трудность для перевода представляют многочленные

словосочетания, в которых в качестве атрибутивной группы выступают

существительные.

161

Необходимо придерживаться следующего правила перевода: 1) начинать

перевод с определяемого существительного, которое, как правило, является

последним словом многочленного словосочетания, 2) проанализировать

смысловые связи между членами словосочетания и, вычленяя смысловые группы,

перевести каждую справа налево.

dollar fluctuations – колебания курса доллара

non-oil imports – статьи импорта, за исключением нефти

export-driven economy – экономика, ориентированная на экспорт

better-than expected results – результаты, превысившие (превзошедшие) ожидания

pay and pension fund cuts сокращение фонда заработной платы и пенсионных

отчислений

Exercise № 16


1. Manufacturing supply chains tie Singapore, South Korea and Taiwan to the

Chinese economy.

2. The OECD estimates that world steelmaking capacity exceeds demand by up to

600m tonnes per year.

3. Years of double-digit economic growth gave the country an increasing appetite for

steel.

4. CITIC, China’s largest state-run conglomerate, recently announced that its net profits

fell by nearly 18% last year thanks in part to the troubled iron and steel markets.

5. Canada’s government debt burden as a share of GDP is the lowest among G7

countries.

6. Ever more affordable renewable-energy sources, and cheap gas, are proving

increasingly attractive alternatives to many users of oil products.

7. The uninspiring economic data come despite a big stimulus package that the

European Central Bank launched in March.

8. South Korea is a bellwether for Asia’s trade-focused economies.

9. Simple measures such as imposing sales and property taxes, or raising absurdly

low local energy prices, could quickly help fund budget shortfalls.

162

10. China’s household savings rate of nearly 30%, among the world’s highest, is also

beginning to fall as the population ages and the elderly draw down some of their

accumulated wealth.

11. India unveiled a half-percentage-point rate cut in late September.

12. Australia, another commodity-heavy economy, recorded growth of just 0,2% in the

second quarter from the previous three months, the slowest rate in two years.

13. Estimates of short-term Chinese copper demand vary.

14. The big oil multinationals, such as BP, Chevron, Exxon Mobil, Shell and Total, have

responded to the weaker oil price by cost-cutting, and postponing and cancelling

some of their exploration projects.

III. ПЕРЕВОД СЛУЖЕБНЫХ СЛОВ

Exercise № 17

Yet – 1) в качестве наречия переводится на русский язык: до сих пор, пока еще,

еще, пока, уже, все еще; 2) в качестве союза – тем не менее, но, но все же, и все

же.


1. The BRIC economies are contributing less to global growth. Goldman Sachs predicts

that other emerging markets will pick up some of the slack. Yet those markets are not

expected to add enough to prevent a general easing of the pace of world growth.

2. The woes of the euro zone were, in large part, caused by southern Europe’s loss of

export competitiveness. Yet a large and persistent surplus in the trade balance can be

the symptom of a distorted economy.

3. The fact that BP teamed up with TNK rather than took over suggests that large

Russian companies are not yet willing to hand over complete control to foreigners.

4. It is not impossible that the US economy could get to that point of crisis, but it is not

there yet.

5. Nokia’s head of mobile phones conceded that a recently launched range of mobile

phones had not yet had a significant impact on the group’s results.

6. A greater reliance on imports is associated with a bigger decline in labour’s take. Yet

trade cannot account for all labour’s woes in America or elsewhere.

163

7. China’s internet companies are battered by censorship and yet are thriving

financially.

8. The decline suggests that US manufacturers have yet to fully recover from the sting

of weaker economic growth worldwide.

9. Gas prices have fallen over the past year, yet the easing of this burden failed to

deliver much of a boost to consumer spending.

10. But the world economy could yet shake markets again.


TEXT 1


Winners and losers

Never waste a good crisis

Many of the labour-market trends that are currently troubling rich countries were

already apparent long before the financial crisis, though the bubble that preceded it

helped to hide them and the recession that followed it accelerated them. “It has given

employers the excuse to do what they wanted to do but had resisted before the crisis,”

says Mr Reich, an American political commentator, who was Secretary of Labour under

President Bill Clinton. “Many employers are substituting technology for people. A lot of

us were looking for jobs to be displaced by technology a few years ago and were

surprised it wasn’t happening faster. Employers didn’t want a reputation for firing when

the jobs market was tight.”

Firms are relying more on part-time, contract and temporary workers who are

inherently more flexible. In America last year, the number of part-time workers reached a

new high of 19.7% of all employees. According to a recent survey of American firms by

the McKinsey Global Institute, over the next five years 58% of them expect to use more

part-time, temporary or contract employees.The Economist, September 10th, 2011

164


trend- тенденция

bubble — искусственное завышение цен, курсов ценных бумаг

to displace workers by – заменять работников чем-либо

syn. to substitute

contract workers – внештатные сотрудники

temporary workers – временные сотрудники

TEXT 2


Where the jobs areDespite high unemployment companies say they find it hard to hire people

Unemployment has reached record levels in many countries. Yet more than a

third of employers around the world are still having trouble filling vacancies, according

to a ManpowerGroup survey of nearly 40,000 employers in 41 countries. Workers in

skilled trades (electricians, plumbers, bricklayers and so on) are in shortest supply,

followed by engineers and sales people. Talent shortages are most acute in Asia,

particularly in Japan where an ageing population is exacerbating the problem. Only in

France has the proportion of employers struggling to find appropriate talent increased

significantly since last year (from 20% to 29%). In Italy, by contrast, it has halved from

29% to 14%. Overall, employers are less concerned about the impact of skills shortages

than they were in 2011.

This may be because companies are becoming more comfortable conducting

business in an uncertain environment where talent shortages persist.The Economist, May 29th, 2012


to fill a vacancy — занять вакансию

skilled trade — профессия, требующая квалифицированного труда

to be in short supply — быть в дефиците, не хватать

shortage нехватка

to struggle испытывать трудности

to conduct business осуществлять деятельность

165

environment условия, обстановка

TEXT 3


Unemployed, and Likely to Stay That WayThe longer people stay out of work, the more trouble they have finding new work.

That is a fact of life that much of Europe, with its underclass of permanently idle

workers, knows all too well. But it is a lesson that the United States seems to be just

learning.

This country has some of the highest levels of long-term unemployment out of

work longer than six months it has ever recorded. Meanwhile, job growth has been, and

looks to remain, disappointingly slow, indicating that those out of work for a while are

likely to remain so for the foreseeable future. Even if the government report on Friday

shows the expected improvement in hiring by business, it will not be enough to make a

real dent in those totals.

So the legions of long-term unemployed will probably be idle for significantly

longer than their counterparts in past recessions, reducing their chances of eventually

finding a job even when the economy becomes more robust.

New data from the Labor Department, provided to The New York Times, shows

that people out of work fewer than five weeks are more than three times as likely to find

a job in the coming month than people who have been out of work for over a year, with a

re-employment rate of 30.7 percent versus 8.7 percent, respectively.

Likewise, previous economic studies, many based on Europe’s job market

struggles, have shown that people who become disconnected from the work force have

more trouble getting hired, probably because of some combination of stigma,

discouragement and deterioration of their skills. This is one of the biggest challenges

facing policy makers in the United States as they seek to address unemployment. The New York Times, February 2nd, 2010


to make a dent in smth значительно сократить

the Labour Department – Министерство Tруда США

re-employment – восстановление на работе

166

TEXT 4


European joblessness: Armies of the unemployedLabour markets in the euro zone suffered about as badly during the Great

Contraction as did the labour market in America. The unemployment rate in both

economies surged and both economies then experienced a slow but steady decline in the

rate of joblessness. But where unemployment in America seems to have temporarily

leveled off at around 9%, the rate of joblessness in the euro zone is once again rising.

There are several striking facts about recent movements in euro-zone labour

markets. The first is the remarkable extent to which increased joblessness is due to

deteriorating conditions around the periphery. Since the beginning of the year, Greek

unemployment is up nearly 4 percentage points. The jobless rate in Germany, by

contrast, has fallen a full percentage point over that period.

Much of the decline in German unemployment occurred early in the year, when

the economy's export machine was running hot. It is interesting to see the extent to which

this trend has continued, however. In September, new industrial orders in Germany fell

4.4%, yet from September to October Germany's unemployment rate dropped, from 5.7%

to 5.5%. It's no wonder that there is less of a sense of urgency to the crisis in Germany.The Economist, November 30th, 2011


euro zone еврозона (валютный союз, объединяющий страны Европейского

Союза, официальной валютой которых является евро)

deteriorating conditions ухудшение условий

a percentage point процентный пункт

the export machine was running hot темпы роста в отраслях,

ориентированных на экспорт, были исключительно высокие

167


TEXT 5


Morning in America?It has been no easy road getting here, and the path ahead looks rocky, but a real

recovery seems to be developing for America's long-suffering workers. This morning, the

Bureau of Labour Statistics released new data on American employment, which showed

a third consecutive month of robust job growth. Where previous reports contained a hint

of weakness here or there, the fundamentals of this report look almost uniformly strong.

Payroll employment rose by 227,000 jobs in February. That marked a third

consecutive month with job growth over 200,000. Private-sector employment did even

better. Private businesses have added over 750,000 jobs in just the last three months and

2.2m in the past year. February's report may actually be better than it looks. The latest

release revised up job gains over the previous two months by 61,000.

Firms are adding workers across the economy. Manufacturing employment rose

31,000 in February and is up 227,000 over the last 12 months. Professional and business

services continue to add labour at a rapid clip, including new temporary positions which

indicate that further hiring may be on the way.

If there is a cloud to this silver lining, it is the reminder that America's economy

remains quite far from where it ought to be. The 8.3% unemployment rate, while down

sharply from a year ago, is still well above what economists consider to be the normal

level. There are still nearly 13m unemployed Americans, and total employment is still

just over 5m jobs short of the pre-crash peak.

Confidence in the American economy looks as good as it has in years, and is

especially striking by comparison with the outlook across most of the world. If the

recovery has taught us anything, however, it is to take nothing for granted.The Economist, March 9th, 2012

NOTES

"Morning in America" is the common name of a political campaign television commercial featuring images of Americans going to work and a calm, optimistic narration that suggests improvements to the U.S. economy. The phrase "It's morning

168

again in America" is used both as a literal statement (people are shown going to work), and as a metaphor for renewal.


Bureau of Labour Statistics статистическое управление Министерства труда

США, ответственное за обработку и распространение статистических

материалов по вопросам труда и занятости)

to release data опубликовать, обнародовать данные

payroll employment – занятость по данным платежных ведомостей

manufacturing employment – занятость в сфере производства/ в

обрабатывающей промышленности

to add jobs создавать рабочие места

to revise up – пересмотреть в сторону повышения

at a rapid clip – высокими темпами

to be well above быть существенно выше

pre-crash peak докризисный максимум

outlook перспектива; прогноз

TEXT 6

Translate the article into Russian in writing and comment on the ways to decrease youth unemployment.

Generation joblessThe number of young people out of work globally is nearly as big as the population of

the United States

“Young people ought not to be idle. It is very bad for them,” said Margaret

Thatcher in 1984. She was right: there are few worse things that society can do to its

young than to leave them in limbo. Yet more young people are idle than ever. OECD

figures suggest that 26m 15- to 24-year-olds in developed countries are not in

employment, education or training; the number of young people without a job has risen

by 30% since 2007. Depending on how you measure them, the number of young people

without a job is nearly as large as the population of America (311m).

Two factors play a big part. First, the long slowdown in the West has reduced

demand for labour, and it is easier to put off hiring young people than it is to fire older

169

workers. Second, in emerging economies population growth is fastest in countries with

dysfunctional labour markets, such as India and Egypt. That results in an “arc of

unemployment”, from southern Europe through north Africa and the Middle East to

South Asia, where the rich world’s recession meets the poor world’s youthquake.

The most obvious way to tackle this problem is to reignite growth. That is easier

said than done in a world plagued by debt, and is anyway only a partial answer. The

countries where the problem is worst (such as Spain and Egypt) suffered from high youth

unemployment even when their economies were growing. Throughout the recession

companies have continued to complain that they cannot find young people with the right

skills. This underlines the importance of two other solutions: reforming labour markets

and improving education. These are familiar prescriptions, but ones that need to be

delivered with both a new vigour and a new twist.

Deregulating labour markets is central to tackling youth unemployment. But it

will not be enough on its own. Britain has a flexible labour market and high youth

unemployment. In countries with better records, governments tend to take a more active

role in finding jobs for those who are struggling. Germany, which has the second-lowest

level of youth unemployment in the rich world, pays a proportion of the wages of the

long-term unemployed for the first two years. The Nordic countries provide young

people with “personalised plans” to get them into employment or training. But these

policies are too expensive to reproduce in southern Europe, with their millions of

unemployed, let alone the emerging world. A cheaper approach is to reform for

example, by making it easier for small businesses to get licences, or construction

companies to get approval for projects, or shops to stay open in the evening.

The problem of youth unemployment has been getting worse for several years.

But there are at last some reasons for hope. Governments are trying to address the

mismatch between education and the labour market. Companies are beginning to take

more responsibility for investing in the young. And technology is helping democratise

education and training. The world has a real chance of introducing an education-and-

training revolution worthy of the scale of the problem.The Economist, April 27th, 2013


to be idle — быть безработным, быть незанятым

170

OECD — ОЭСР (Организация Экономического Сотрудничества и Развития)

to tackle a problem — взяться за решение проблемы

to reignite — возобновлять

to deregulate - сократить объем вмешательства государства

labour-hungry bits of the economy — отрасли экономики, нуждающиеся в

большом количестве рабочей силы

TEXT 7


At Last, a Proper RecoveryAll sorts of Americans are feeling more prosperous

The American economy has technically been out of recession for six years. It is

finally starting to feel like it. Millions of new jobs are sprouting. Many who had given up

looking for work are trying again and succeeding. Wage growth is picking up. But the

economy is far from full strength.

America is thriving for a few reasons. It is a relatively self-contained economy.

So America feels other countries’ pain only faintly. While many governments are

tightening belts, America's is not. American shoppers are flush with cheap credit. Lower

oil prices also help, since America is still a net importer of the stuff.

The labour market was ugly in the years immediately after the crisis. But now it is

the star of the catwalk. Between 2011 and 2014 only eight countries saw bigger falls in

their unemployment rate, according to the IMF. At 5.7%, America's is one of the lowest

in the OECD. Firms added more than 1m net new jobs in the three months to January, the

best showing since 1997. And things may soon get even better. The survey, released on

February 10th, showed that by the end of December there were 5m job openings, the

highest level since 2001.

This boom is helping people who typically struggle to find good jobs. Tighter

limits on how long people may claim unemployment benefits, which took effect at the

beginning of 2014, may have made low-skilled workers more appealing to employers. By

encouraging the jobless to accept lower wages, it may have enticed companies to create

more jobs. Indeed, half the jobs added in January were in low-wage industries like

restaurants and shops. With more work available, in the past year the unemployment rate

171

for Americans without a high-school diploma has fallen by one percentage point. Among

16-19-year-old men, hit hard by the recession, unemployment is now 31 percentage

points lower than its 2009 peak.

For years the proportion of the population in the labour force shrank, as

disappointed jobseekers gave up hope. In 2010 1.3m Americans were not looking for

work because, they said, there was none available. Now there are 680,000 such people

still high, but down a fifth over the year.

Things are also looking better for those already in work. Some 4m Americans

who work part-time say they would rather work full-time but can't get the hours thanks to

the lousy economy. This group is about 60% of the size it was in 2009. Average weekly

earnings in January were 2.8% higher than they were a year earlier, the biggest increase

since mid-2011. That sounds great, but it is probably down to people working longer,

rather than better.The Economist, February 14th, 2015


to sprout – расти; появляться

self-contained economy – самодостаточная страна

to entice – увлекать, прельщать

TEXT 8


Heating upCrunch time is approaching for Britain's labour market. Figures released today

show that unemployment held steady at 5.5% in the three months to April, as the pace of

job creation slowed. With joblessness now just half a percentage point above the Bank of

England's estimate of its equilibrium, Britain's jobs boom, which has seen employment

rise by 2m in five years, may be nearing its end.

That means growth in demand is beginning to show up in wage rises, rather than

new jobs. Regular pay, excluding bonuses, is now growing at 2.7% annually in nominal

terms easily the fastest rate of growth since February 2009. Thanks to near-zero

inflation, workers are enjoying their juiciest real pay rises since November 2007.

172

The key uncertainty is the outlook for productivity, which remains below its pre-

crisis peak. Data on productivity are intermittent, but the latest reading showed output

per hour worked growing at a dismal 0.3% annually. Wage rises are only sustainable if

they reflect increased value-added by workers, rather than zero-sum competition between

firms for workers. And competition for workers is heating up: after a long slump the

number of openings per jobseeker is nearly back at pre-crisis levels. If recent pay growth

is only the result of labour-market tightening, the bank may soon feel the need to stop the

party (despite the current low inflation, which most observers continue to believe is a

temporary blip induced by a one-off fall in the oil price).

The difficulty is that productivity growth is near-impossible to forecast. In the

early days of the crisis the bank expressed confidence that weak productivity reflected

firms sitting tight and holding on to idle workers rather than firing them, and that once

demand returned, those workers would put their shoulder to the wheel again. But when

the economy did pick up, this did not much happen. Instead firms went on a hiring spree.

Since then, the bank has appeared less confident that its actions affect productivity,

hinting that it is a supply-side issue, and is therefore unaffected by monetary policy.

Yet it could still be that weak productivity is linked to the demand side. One

reason for the stagnation is capital-labour substitution: it has been so cheap to hire

workers in Britain that firms have preferred to bring in new workers than invest in

productivity-boosting machinery and technology. As strong demand and a tight labour

market puts upward pressure on pay, this process could go into reverse. Firms will have a

stronger incentive to invest and get productivity up than to hire workers at greater cost.

However, if this does not happen and productivity continues to stagnate

Britons will feel the pain. The bank will be forced to raise rates to see off wage-driven

inflation, and in doing so snuff out the recovery in real wages, just as mortgages get more

expensive. And growth will stagnate, too, except insofar as the population grows.

Many employed Britons still want to work more hours. That might provide some

additional slack and keep a lid on inflationary wage growth for a while. But the bigger

constraint on inflation is probably fiscal policy. The Economist, June 17th, 2015


crunch time – решающий момент, горячая пора

173

equilibrium – равновесие, сбалансированное состояние, сбалансированность

intermittent – нерегулярный, с перебоями, кратковременный

mortgage – ипотека / ипотечный кредит

slack – застой, вялый экономический рост, вялое состояние (рынка)

labour slack избыток рабочей силы

CONSOLIDATION

Exercise № 18.

Translate the sentences into Russian.

1. The Bank Credit Analyst, a Canadian research firm, estimates that America

accounted for only 20% of global growth in 1995-2002, while China's share was

25%.

2. The recession accounts for the slow retail business.

3. The decline in mining was largely expected to have been over and this quarter was

supposed to have seen some revival but that has not happened.

4. They had to account for all the money that had gone missing.

5. Exports of goods and services in the fourth quarter fell at an annual rate of 12% in

real terms, while imports fell by only 3%.

6. Businesses appear to be growing more confident and increasing their hiring.

7. The UK economy contracted by less than thought in the second quarter, shrinking by

0.4%, the Office for National Statistics says.

8. The number of claims for unemployment benefits fell last week, hitting its lowest

level since July.

9. Despite the apparent strength of the US labour market, Fed policymakers are in

cautious mode and are not expected to raise interest rates in April.

10. If the new figure of 2.9% turns out to be right, the UK will be the fastest-growing

economy in the G7 major developed nations this year.

11. In recent years, China's status — like its economy — has continued to rise as the

economies in America and Europe have struggled.

12. A rise in the minimum wage leads to a shift within the industry, from the labour

intensive model to the capital intensive production methods..

174

13. Apple’s stock may have fallen back below $700 a share from iPhone sales, but

Google’s stock just hit a new all-time high.

14. On a global level, prices for consumer electronics continue to fall, which is affecting

total estimated industry sales figures.

15. It remains to be seen whether this strengthening of demand will feed through to more

pricing power, which remains weak due to the existence of spare capacity and high

unemployment.

16. Record-high eurozone unemployment and continued manufacturing weakness could

force the European Central Bank to lower rates later this week, according to Ken

Wattret, economist at BNP Paribas.

17. If growth hit a decade low of 5% in the previous financial year, things seem to have

worsened in the current financial year.

18. It’s not yet clear how big that financial hit might be or how many card users were

affected.

19. The output of Chinese aluminium has sent global prices plunging, hurting rival.

20. The yen tends to strengthen whenever investors worry about the world’s path.

VOCABULARY CHECK

Exercise № 19


1. Хотя экономисты прогнозируют улучшение ситуации на рынке труда, вряд ли

безработица снизится до докризисного уровня.

2. Когда рынок труда характеризуется высоким спросом на рабочую силу при

ограниченном предложении, работодатели повышают зарплату, с целью

привлечь высококвалифицированную рабочую силу.

3. Считается, что компании будут больше полагаться на сотрудников,

работающих неполный рабочий день, временных и внештатных сотрудников,

так как они более мобильны.

4. Во вторник Министерство Труда опубликовало данные о повышении

циклической безработицы, вызванном ростом числа уволенных, а также

сокращением найма.

175

5. Гибкий рынок рабочей силы характеризуется ослаблением регулирования:

работодатели могут по собственному желанию увольнять сотрудников, менять

продолжительность их рабочего дня и устанавливать уровень зарплат.

6. Основные требования профсоюзов заключаются в увеличении гарантий

занятости для работников и продления срока выплат пособий по безработице

для тех, кого сократили во время спада.

REVISION (Units I-III)

Exercise № 20


1. Emerging economies already buy over half of all motor vehicles (up from only 20%

in 2000), and account for four-fifths of mobile-phone contracts.

2. Growth was dragged down by slow business investment and a decline in energy

exports that was not completely offset by a boost in consumer spending.

3. While the yuan has barely risen against the dollar since July, the dollar itself has been

strong.

4. Morgan Stanly, an investment bank, says that manufacturing is on the verge of

recession, but this accounts for only one-fifth of total euro-area output.

5. Growth in exports to the US, Hong Kong and China were offset by declines in

shipments to the EU, Korea and Taiwan.

6. “Imports are not likely to keep rising as quickly as they have in recent months, while

exports should continue to improve,” said Ian Shepherdson, chief US economist at

High Frequency Economics.

7. Consumer spending, which accounts for two thirds of GDP, continues to rise, and is

on the course for real year-on-year growth in the first quarter of over 3%.

8. Slower growth in China is dampening commodity prices, hitting exporters in Latin

America.

9. The recent data have raised some worries that perhaps growth is now decelerating

much more than planned. The signs include a contraction in manufacturing activity, a

slowing in consumer spending, a rise in claims for unemployment benefit and a

number of prominent companies lowering earnings forecasts and capital-spending

176

plans.

10. While the labour market continues to improve, unemployment is known to be a

lagging indicator.

11. Capacity utilization is likely to have significantly increased again in the third quarter,

which – together with jobs growth – signals a continuation of higher growth rates.

12. While a weakening exchange rate is welcome news for UK exporters who have been

struggling to hang on to foreign markets, it raises the cost of raw material and fuel

imports, threatening higher inflation.

13. Since the end of last summer, automakers have been slashing vehicle output to slow

the pace of inventory accumulation – accounting for a significant part of the

slowdown in overall economic growth.

14. Although demand for oil is waning, stocks of the commodity in the US are now at a

25-year low, meaning that there is unlikely to be a substantial drop in demand even if

economic weakness continues.

15. High inflation has made it difficult for Indonesian President to rely on a growing

consumer class to offset weak exports, as prices rise for everything from fuel to beef.

16. America’s growth rate weakened in the second quarter, expanding by 1,5% over the

previous quarter at an annual rate, according to the first estimates.

17. Finland’s economy shrank by 1.1% in the second quarter. The country had been one

of the euro zone’s best performers, but the crisis is now starting to take its toll on

exports, which account for 40% of Finnish GDP.

18. A stronger yen, which hurts profits of exporters, tend to pull share prices lower.

19. In both the US and UK, falling prices coupled with a strengthening labour market,

resulting in job and wage growth, raises real incomes.

20. Low interest rates tend to encourage borrowing and risk-taking, in that way

supporting growth; higher rates, by contrast, are likely to weigh on growth.

177

TOPICAL VOCABULARY UNIT III

1. labour

syn. labour force/workforce

labour force participation rate

labour flexibility/mobility

labour costs

2. labour market

healthy labour market

flexible labour market

tight labour market

3. to employ/to hire

ant. to fire

to lay off

employee

employer

4. employment

conditions of employment

full-time/full employment

part-time employment

re-employment

payroll employment

manufacturing employment

unemployment

frictional unemployment

seasonal unemployment

cyclical unemployment

unemployment rate/level

syn. rate of unemployment

ant. employment rate

natural rate of unemployment (NAIRU)

5. wage/salary/pay

average wage

minimum wage

178

wage inflation

wage rate

to set wages

to lift wages

6. competition

strong/stiff/tough/fierce/fair/unfair competition

to compete

competitive

competitiveness

competitor

syn. rival

7. skill/qualification

low/semi-skilled/skilled/unskilled labour

transferable skills

to apply skills

skilled trade

8. trade union

9. to indicate

indicator

indication

10. to perform

performance

underperformance of the economy/underperforming economy

11. to contribute to

12. income

disposable income

13. demand for

14. benefit

to benefit from

beneficial

unemployment benefit

15. a rise in/growth in

16. overhaul

179

17. headline figure/rate

18. to hit/hurt/affect

19. to offset

20. worker

contract worker

temporary worker

21. vacancy

to fill a vacancy

22. Bureau of Labour Statistics

23. to be idle

180

UNIT FOUR

INTERNATIONAL TRADE

LEAD-IN


International trade has flourished over the years due to the many benefits

it has offered to different countries across the globe. International trade is the

exchange of capital, goods and services across international borders or territories.

In most countries, such trade represents a significant share of GDP. While

international trade has been present throughout much of history, its economic,

social and political importance has been on the rise in recent centuries.

With the help of modern production techniques, highly advanced

transportation systems, multinational corporations, outsourcing of manufacturing

and services, and rapid industrialization, the international trade system is growing

and spreading very fast. Increasing international trade is crucial to the

continuance of globalization. Global trade allows wealthy countries to use their

resources - whether labour, technology or capital - more efficiently. As countries

are endowed with different assets and natural resources (land, labour, capital and

technology), some countries may produce the same goods more efficiently and

therefore sell them more cheaply than other countries. If a country cannot

efficiently produce an item, it can obtain the item by trading with another country

that can. This is known as specialization in international trade.

International trade not only results in increased efficiency but also allows

countries to participate in a global economy, encouraging the opportunity of

foreign direct investment (FDI), which is the amount of money that individuals

invest into foreign companies and other assets. In theory, economies can therefore

grow more efficiently and can more easily become competitive economic

participants.

For the receiving government, FDI is a means by which foreign currency

and expertise can enter the country. These raise employment levels, and,

theoretically, lead to a growth in the GDP. For the investor, FDI offers company

expansion and growth, which means higher revenues.

181

International trade is, in principle, not different from domestic trade as the

motivation and the behaviour of parties involved in a trade do not change

fundamentally regardless of whether trade is across a border or not. The main

difference is that international trade is typically more costly than domestic trade.

The reason is that a border typically imposes additional costs, such as tariffs, time

costs due to border delays and costs associated with country differences such as

language, the legal system or culture.

Another difference between domestic and international trade is that factors

of production such as capital and labour are typically more mobile within a

country than across countries. Thus international trade is mostly restricted to trade

in goods and services, and only to a lesser extent to trade in capital, labour or

other factors of production. Trade in goods and services can serve as a substitute

for trade in factors of production.

Instead of importing a factor of production, a country can import goods

that make intensive use of that factor of production and thus embody it. An

example is the import of labour-intensive goods by the United States from China.

Instead of importing Chinese labour, the USA imports goods that were produced

with Chinese labour.

Imports, along with exports, form the basis of international trade. Imports

are the amount or value of goods and services that are brought from one country

into another over a period of time. The amount or value of goods and services that

are sold, sent or supplied to other countries over a period of time is called exports.

Trade in goods is known as merchandise trade or “visible” trade; trade in

services is known as “invisible” trade. Imports and exports are accounted for in a

country's trade balance or balance of trade. A positive balance is known as a

trade surplus which shows that the total value of exports exceed the total value of

imports. A negative balance is referred to as a trade deficit or a trade gap, when

the total value of imports is greater than the total value of exports.

International trade has two contrasting views regarding the level of control

placed on trade: free trade and protectionism. Free trade is a system in which

goods, capital and labour flow freely between nations, without barriers which

could hinder the trade process. According to the law of comparative advantage,

the policy permits trading partners mutual gains from trade of goods and services.

182

The main idea is that supply and demand factors, operating on a global scale, will

ensure that production happens efficiently. Therefore, nothing needs to be done to

protect or promote trade and growth, because market forces will do so

automatically.

In contrast, protectionism holds that regulation of international trade is

important to ensure that markets function properly. Advocates of this theory

believe that market inefficiencies may hamper the benefits of international trade

and they aim to guide the market accordingly. Protectionism exists in many

different forms, but the most common are tariffs, subsidies and quotas. These

strategies attempt to correct any inefficiency in the international market.

A tariff decreases the supply of the imported goods. The decrease in

imports to the domestic economy means that foreigners can buy less from that

economy. Therefore, the value of domestic exports decreases by an amount equal

to the drop in the value of domestic imports. If two or more states raise or impose

tariffs on each other in retaliation for other trade barriers, a trade war may begin.

Poor countries are more vulnerable than rich countries in trade wars, because

many poor countries do not have the ability, for example, to raise subsidies and in

raising protections against dumping of cheap products, a government risks

making the product too expensive for its people to afford.

A subsidy is a form of financial aid or support given to a sector, business

or an individual to remove some type of burden and is often considered to be in

the interest of the public. Subsidies come in various forms including: direct (cash

grants, interest-free loans, welfare payments, farm subsidies, etc.) and indirect

(tax breaks, insurance, low-interest loans, etc.). For example, if a domestic

industry, like farming, is struggling to survive in a highly competitive global

market, a government may give cash subsidies to farms so that they can sell at the

low market price but still achieve financial gain.

Nontariff barriers include quotas and voluntary export restraints. Quotas

are quantitative restrictions on the maximum amount of goods that can be

produced, and voluntary export restraints are agreements between governments in

which the exporting nation agrees to limit the volume of its exports. For example,

the worldwide lifting of textile quotas (by WTO agreement) caused major

concerns on the part of U.S. textile manufacturers, who feared an avalanche of

183

low-cost Chinese imports into the United States. After the potential threat of

import tariffs emerged, the Chinese government agreed to a so-called voluntary

quota, establishing self-imposed restrictions on textile exports to the United

States. This was a way to gradually move from a quota-directed to a free-trade-

based system for textiles.

Like tariffs, nontariff barriers raise the prices of imported goods and

decrease the quantities imported. Unlike the situation with a tariff, however, the

government gets no revenue from a nontariff barrier. For quotas, the revenue

from the higher price goes to importers, and in the case of voluntary export

restraints it goes to foreign exporters.

Although many reasons are given for protection, most of the suggested

protective measures raise the cost of doing business substantially. Since the mid-

20th century, nations have increasingly reduced tariff barriers and currency

restrictions on international trade. Most countries in the world are members of the

World Trade Organization, which limits in certain ways but doesn’t eliminate

tariffs and other trade barriers. Some countries are also members of regional free

trade areas that lower trade barriers among participating countries. The European

Union and the North American Free Trade Agreement (NAFTA) are the world’s

largest free trade areas.

There is no denying that international trade is beneficial for the countries

involved in trade, if practised properly. International trade opens up the

opportunities of global market to the entrepreneurs of the developing nations. It

also makes the latest technology readily available to the businesses operating in

these countries. It results in increased competition both in the domestic and global

fronts. To compete with their global counterparts, the domestic entrepreneurs try

to be more efficient and this in turn ensures efficient utilization of available

resources. Open trade policies also bring in a host of opportunities for the

countries that are involved in international trade.

However, it is important to consider that international trade alone cannot

bring about economic growth and prosperity in any country. There are many

other factors like flexible trade policies, favorable macroeconomic scenario and

political stability that need to be there to complement the gains from trade.

184

NOTES

1. World Trade Organization (WTO). WTO, the only global international organization dealing with the rules of trade between nations, was established on 1 January 1995.At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

2. North American Free Trade Agreement (NAFTA). NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on 1 January 1994 and encourages free trade between these North American countries. It superseded the Canada–United States Free Trade Agreement between the U.S. and Canada. NAFTA has two supplements: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC).


1. What is international trade and why is it important?

2. What makes it grow and spread very fast nowadays?

3. What is specialization in international trade?

4. What benefits does international trade give to the participants?

5. What part does FDI play for the recipient and the investor?

6. What is the difference between international trade and domestic trade?

7. What forms the basis of international trade?

8. When does a country post a trade surplus and in which case does it run a trade

deficit?

9. What is known as “visible” and “invisible” trade?

10. What is the essence of the two theories concerning the level of control imposed on

trade?

11. What protective measures do countries take and why?

12. When is a trade war likely to break out?

13. Who suffers more in trade wars and why?

14. What factors should complement the gains from trade?

ACTIVE VOCABULARY

1. trade

international tradesyn. global trade

1) торговля; 2) отрасль торговли, производства, промышленности; 3) профессия

международная торговля, мировая торговля

185

foreign trade domestic trade free trade area merchandise trade

syn. visible trade; trade in goods invisible trade

syn. trade in services balance of trade trade surplus

trade deficitsyn. trade gap, shortfall

trade barriers

trade war

внешняя торговля внутренняя торговля зона свободной торговли торговля товарами, экспорт и

импорт товаров торговля услугами

торговый баланс положительное (активное)

сальдо торгового баланса дефицит (отрицательное сальдо)

торгового баланса торговые ограничения, торговые

барьеры торговая война

2. multinational corporation транснациональная корпорация

3. assetsassets and liabilities

активыактивы и пассивы

4. to invest

investmentsyn. capital spending

foreign direct investment (FDI)

инвестировать, осуществлять капиталовложения

инвестиции, капиталовложения

прямые зарубежные инвестиции (ПЗИ)

5. expertise опыт, знания, квалификация

6. revenue operating revenue

tax revenue

доход(ы) доходы от основной

деятельности, операционные доходы

налоговые поступления

7. factors of productionsyn. inputs

факторы производства

8. to embody 1) включать, делать составной частью;

2) заключать в себе

9. to export exports

exports of goods and services exporter

экспортировать, вывозить 1) экспорт, экспортные

поставки, объем экспорта;2) статьи экспорта

экспорт товаров и услуг экспортер

186

10. to import imports

visible importssyn. imports of goods

invisible importssyn. imports of services

importer

импортировать, ввозить 1) импорт, импортные закупки,

объем импорта; 2) статьи импорта, ввезенные товары

видимые статьи импорта, импорт товаров

невидимые статьи импорта, импорт услуг

импортер

11. to hindersyn. to hamper

мешать, препятствовать

12. to protect protection

protectionism protective measures

защищать, охранять, предохранять 1) защита, охрана;

2) протекционизм протекционизм протекционистские меры

13. to ensure обеспечивать, гарантировать

14. tariff to impose a tariff to raise a tariff

ant. to reduce a tariff to abolish a tariff

syn .to eliminate/ lift a tariff non-tariff barriers

тариф вводить тариф повышать тариф

отменить тариф

нетарифные барьеры, ограничения

15. subsidy to scrap a subsidy to subsidize

субсидия, дотация отменить субсидию субсидировать

16. quota export/import quota to lift a quota

квота, норма, доля экспортная/импортная квота отменить квоту

17. restraint restraint of trade export restraints wage and price restraints

ограничение, сдерживание ограничение торговли экспортные ограничения сдерживание роста заработной

платы и цен

18. to retaliate

in retaliation for

принять ответные меры, отплатить тем же

в ответ на (что-либо)

19. to complement дополнять

187

20. dumping демпинг, ввоз по заниженным ценам

21. to restrict restriction (on)

to impose restrictionsant. to lift/remove restrictions

restriction of tradesyn. restraint of trade

currency restrictions quantitative restrictions

ограничить ограничение, (pl.)

ограничительные меры вводить ограничения

ограничение торговли

валютные ограничения количественные ограничения

Exercise № 1


imports; to import; exports; to export; to flourish; crucial; merchandise; exchange;

techniques; expertise; surplus; assets; subsidy; retaliation; specialization; revenue; to

complement; legal; deficit; voluntary export restraints; to ensure; vulnerable;

protectionism; avalanche; utilization; entrepreneur; macroeconomic scenario; access;

biofuel; wheat; drought; liaison; bureaucracy; countervailing; provisional; repercussion;

essence; recipient

Exercise № 2


lower trade barriers; to hinder the trade process; modern production techniques; to be on

the rise; increasing international trade; outsourcing of manufacturing and services;

natural resources; free trade areas; advanced transportation system; increased efficiency;

self-imposed restrictions; employment level; to hamper the benefits of international

trade; company expansion and growth; domestic trade; labour-intensive goods; higher

revenues; to be restricted to trade in goods and services; voluntary export restraints; to

impose import tariffs; to operate on a global scale; trade surplus; mutual gains;

merchandise trade; comparative advantage

Exercise № 3


гибкая политика в области торговли; ограничение роста заработных плат и цен;

188

вводить валютные ограничения; эффективное использование имеющихся ресурсов;

страны-участницы; ограничение торговли; основа международной торговли;

страна-импортер; сокращать тарифы и субсидии; повышать уровень занятости;

ограничения на экспорт текстиля; активы страны; «видимая» торговля; отменять

квоты; компании, работающие в зоне свободной торговли; прямые зарубежные

инвестиции; специализация в международной торговле; спрос и предложение;

торговый баланс; обеспечить правильное функционирование рынка; дефицит

торгового баланса; сторонники теории; количественные ограничения.

Exercise № 4

Complete the text about free trade by completing sentences 1-6 with a-f below.

1. Free trade exists when ………………………………………………..

……………………

2. Protectionism is the practice of protecting home producers ..

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

3. One way they do this is by using tariffs………………………………….

4. Another way is by using quotas which limit ..........................................

5. Domestic manufacturers often complain that foreign competitors

………………………….

6. Exporters, in their turn, often complain about …………………………

a ... which are a kind of tax on goods coming into the country.

b ... complicated bureaucracy and customs regulations.

с ... there are no restrictions on imports and exports.

d ... the quantity of goods that can be imported.

e ... from foreign competition and cheap imported goods.

f ... try to destroy them by dumping their goods at unfairly low

prices.

Exercise № 5

Complete these sentences with the words in italics from ex.4.

1. These new import [_____________] make products 30% more expensive.

2. Government [_____________] limit the import of luxury cars to just 300 each year.

3. [_____________] is a very good idea in principle, but in practice [_____________] is

189

required to help domestic manufacturers to survive.

4. Reducin [_____________] also helped: time to export decreased from 20 to 16 days..

5. US and EU business leaders now need to focus on removing trade barriers between

the two blocks rather than aim to create a single [_____________] area.

6. He said raising prices by increasing [_____________] on Japanese luxury cars would

give Detroit’s Big Three automakers an excuse to increase their own luxury car

prices.

7. The EU warned that South Korea should open up its car market, accusing the country

of [_____________].

8. If the Commerce Department rules that Mexico is [_____________] tomatoes,

consumers can expect higher tomato prices because the US will impose

[_____________] on them, limiting the numbers that can be imported.


1. Go to

International Trade http://www.investopedia.com/video/play/what-

international-trade/

The balance of Trade http://www.investopedia.com/video/play/balance-trade/

Free Trade http://www.investopedia.com/video/play/free-trade/

Protectionism http://www.investopedia.com/video/play/protectionism/





Boxed in Global trade has turned down sharply this year. The outlook is pretty bleak, too

Trade-watchers often look to the oceans to gauge activity. Bustling docks

and harbours mean importers and exporters are busy, and trade figures are likely

to be strong. At the end of 2011 data from big ports started to turn choppy,

190

fuelling fears of a slowdown that has come to pass. The OECD reports that

exports fell by over 4% in the second quarter of 2012 in Britain and India; Russia

and South Africa lost more than 8%. That is particularly bad news for places like

Singapore and Hong Kong, which are important trade hubs; open eurozone

countries like Ireland and Belgium are also highly exposed.

The obvious cause of falling trade is the global economic slowdown. Since

exports are sales to foreigners, they tend to weaken when buying power is low.

That means trade often tracks global GDP quite closely. At a more granular level,

too, the patterns of trade match the fortunes of economies. Since 2011, imports

into the stagnant European Union have fallen by 4.5%. In contrast the oil-rich

Middle East has increased imports by 7.4%.

If the global economy were the only factor in determining trade, a pick-up

in world output would translate automatically into rising trade. The IMF, for

example, thinks that trade will grow by 5.1% in 2013 on the back of a

strengthening economy. But the fund's predictions assume that looser policies in

the euro area and emerging markets will be successful. If that turns out to be too

optimistic then growth, and trade, could undershoot its forecasts. The latest

shipping data hold out little hope for a rapid rebound. A survey reported by

Lloyd's List on September 5th showed that container volumes from Asia to

Europe plunged by 13.2% in the year to July.

What's more, trade does not track business cycles perfectly. Trade has

generally grown faster than GDP in recent years, rising from 22% to 33% of

world GDP between 1996 and 2008. Its downturn this year has been more

pronounced than that of the world economy. That suggests other factors may be at

work beyond the pace of global growth.

One candidate is decreased availability of trade finance. Businesses that

operate internationally rely heavily on banks. Take exporters. Once they have

bought raw materials and other inputs, they must make their products before

exporting them to a destination country. They may deliver them to a final buyer

before receiving payment. This creates a lag between incurring costs and

receiving revenues, a gap bridged by short-term trade-finance loans.

Increased protectionism may also be starting to drag on trade. In the early

phases of this crisis, it seemed that protectionism was one thing the world did not

191

have to fret about: the lessons of the 1930s (avoid trade wars at all costs) had

apparently been learned. But the number of new trade disputes is ratcheting up to

a level that is beginning to look worrying. Argentina is involved in a host of

arguments. America, India and China are embroiled in a spat over steel. On

September 4th Brazil said it would raise tariffs on 100 products. The risk,

according to Jagdish Bhagwati of Columbia University, is that commitment to

free trade could flag.

Even if a new round of protectionism can be avoided, ambitions to

liberalise trade further are disappointingly limited. The 11-year-old Doha round

of global trade negotiations, which could add 0.5% a year to global GDP by

opening up new markets, is as good as dead. In its place a tangle of regional deals

has emerged. The hope is that the most promising elements of Doha can

somehow be revived in a new deal. An agreement on "trade facilitation" (cutting

red tape at borders) would more than offset the petty protectionism of some G20

members. But the tide of support for free trade is ebbing.The Economist, September 8th, 2012

NOTES

1. The International Bank for Reconstruction and Development (IBRD) – Международный банк реконструкции и развития (МБРР), главным образом кредитует развивающиеся страны на рыночных условиях под правительственные гарантии.

2. Lloyd’s List – “Лист Ллойда”: ежедневная газета, в которой публикуются передвижения судов во всем мире.

3. Doha round – Первый раунд многосторонних торговых переговоров в рамках ВТО получил название Доха раунд по имени столицы Катара, где проходила Четвертая конференция министров стран-членов ВТО в ноябре 2001г., на которой было принято решение об открытии этого раунда. После июля 2005г. в переговоры включена тема упрощения процедур торговли.


choppy – часто меняющийся, неустойчивый, переменчивый

hub – центр (деятельности, интереса, внимания)

buying power – покупательная способность

rebound – 1) отскок (например, мяча); 2) начало оживления, роста после

падения

192

trade finance – 1) финансирование торговли; 2) средства для финансирования

торговли

lag – лаг, отставание, запаздывание

to embroil – вовлекать, впутывать, втянуть

spat – ссора, размолвка, спор (e.g. торговый)

to open up a new market – открывать новый рынок, открывать возможности

нового рынка

red tape – бюрократизм, бюрократическая волокита, проволочка

to ebb – ослабевать, угасать


1. What serves as a gauge of activity for trade watchers?

2. What is the situation in trade at the end of 2011 and what is its cause?

3. What is the correlation between trade and global economy?

4. What are the forecasts for 2013 and what are they based on?

5. What are the threats to trade in the current phase of the crisis?

Exercise № 6


strong trade figures; to plunge by 10% in the year to July; trade hubs; the latest shipping

data; falling trade; the Doha round of global trade negotiations; to gauge activity; a spat

over steel; global economic slowdown; trade disputes; pick-up in world output; rapid

rebound; increased protectionism; business cycle; the pace of global growth; short-term

trade-finance loans; raw materials; final buyer; inputs; a destination country.

Exercise № 7


вызывать опасения; региональные сделки; покупательная способность; повышать

тарифы на товары; динамика развития торговли; нести издержки; прогнозы МВФ;

уменьшить бюрократические проволочки на границе; получать доходы; быть

втянутым в торговые споры; увеличение объемов торговли.

193


Read the article and fill in the gaps with appropriate expressions from the list. There is one extra phrase which you don’t need to use.

a. to protect consumers from the effects of high prices

b. generating much in the way of income or jobs in the short term

c. abolished the tariff on imports of the stuff

d. jacks up the cost of living

e. improving the employment level

f. are suffering from simultaneous droughts

g. to turn away from volatile world markets

h. imposed export restrictions on food

i. developing an agricultural industry dependent on handouts

j. seems impossible to eradicate

k. are making matters worse

1 2 3 4 5 6 7 8 9 10

The United States Department of Agriculture confirmed on September 12th

what everyone knew: that this year's American corn (maize) harvest is bad; that

three of the biggest wheat exporters, America, Russia and Australia, (1)

………………………………………….; and that the world is experiencing its

third food-price spike in five years.

Although the weather is the proximate cause of the price rises,

governments (2) …………………………………... Look at America's biofuels

policy. By ensuring that a third of the country's maize is turned into ethanol and

fed to cars, it has driven up grain prices and made them more volatile by reducing

stocks. At the start of this year America scrapped the subsidy for ethanol, and (3)

……………………………………… – steps in the right direction. But a certain

amount of ethanol still has to be blended with petrol by law. That keeps prices

high.

194

Bad policies in America are encouraging bad policies elsewhere. Higher

prices have spooked* importing and exporting countries alike, causing them (4)

…………………………… and seek to insulate themselves. Between 2007 and

2011, 33 countries (5) …………………… . Agriculture accounts for less than

10% of world trade, but more than two-thirds of the cost of all border distortions.

Export bans are designed (6) ……………………………………... . From

the point of view of a single nation, such a policy might seem to have the desired

effect: as world prices spiral upwards, domestic prices are shielded from the full

impact. But when many countries do the same thing ─ as now ─ so much food

disappears from global markets that prices rocket more than they would have

done if governments had left well alone. One study calculated that 45% of the

huge increase in rice prices in 2006-08 was attributable to trade restrictions. So

export bans exaggerate the very thing they seek to defend against.

Higher prices, if sustained, can help poor households in the countryside,

many of whom depend on agriculture for their livelihood. But a spike in food

prices merely (7) ………… without (8) …………………………………….. ; and

for the urban poor – who make up an increasing slice of most emerging-country

populations ─ higher food prices are almost entirely bad news. That is why farm-

trade restrictions do not cut poverty, but increase it. Scrapping them would pull

about 3m people above the poverty line.

As if all that were not enough, there is a long-term reason for worrying

about government meddling** in farming: its rising incidence in China and India.

Total state support to Chinese farmers has more than doubled since 2004. China

and India are following the ignoble path trodden by Japan, America and Europe

in the 1980s: (9) …………………………………… . It was bad when this

happened in the richest parts of the world. Having 2.5 billion people fed by

subsidised farming, with its attendant inefficiencies, is worse.

Farm protection is like a weed: it grows everywhere and (10)

……………………… . At the moment governments are making farming less

efficient than it should be. They are increasing poverty. Their policies are

otiose***, since there are better ways to help the poor, such as direct cash

transfers. And they are counterproductive, because they exacerbate the problems

they seek to solve.

195

*to spook – пугать, бросать в дрожь

**to meddle – вмешиваться

***otiose – бесполезный, ненужный


corn – 1) зерновые;2) кукуруза

grain – зерно

wheat – пшеница

harvest – урожай

drought – засуха

proximate cause – непосредственная причина

to insulate – ограждать, изолировать

to shield (from) – спасать, оградить от чего-то

cost of living – стоимость жизни

transfer – перевод (денег)

to exacerbate – углублять (например, кризис), усиливать, усугублять

Exercise № 8



1. Corn harvest in America, Russia and Australia in 2012 enables them to raise stocks.

2. America eliminated the tariff on ethanol.

3. A fifth of America’s maize is turned into car’s fuel.

4. Following USA, 33 countries lifted export restriction on food.

5. When many countries ban food exports prices advance.

6. A spike in food prices solves the problem of income and jobs in the short-term.

7. Farm-trade restrictions eradicate poverty.

8. State support to Chinese farmers has halved since 2004.

9. Imposing restrictions, governments take counterproductive measures.

196

Exercise № 9


world prices spiral upwards; wheat exporters; to cut poverty; to scrap a subsidy; the third

food-price spike in five years; state support to farmers; to make matters worse;

subsidized farming; to drive up grain prices; export ban; higher food prices; the

proximate cause of the price rises; to turn away from volatile world markets.

Exercise № 10


уменьшить запасы; усугубить проблему; плохой урожай кукурузы; в долгосрочной

перспективе; отменить тариф на импорт этанола; вмешательство государства в

сельское хозяйство; на долю сельского хозяйства приходится менее 10% объема

мировой торговли; вводить экспортные ограничения на продовольственные

товары; стоимость жизни.



Goodbye Doha, Hello Bali

The Doha trade talks are dead. Replace them with a rapid new deal, called the "Global

Recovery Round"

Trade and growth go hand in hand. When the economic crisis first hit in

2008, world trade and growth collapsed together. In 2009 both recovered, and did

reasonably well until this year, when both slipped again. Cutting tariffs and red

tape would boost trade, and support the faltering recovery. This should spur

efforts to replace the failed Doha trade talks with a new effort to do a multilateral

deal.

The aims of the Doha round, launched by the World Trade Organisation

(WTO) in 2001, were laudable. It deliberately put poor countries first, placing

particular priority on improving the access of their farmers to rich-country

markets. It was ambitious too, covering not only trade in manufactured goods,

197

agriculture and services, but also a host of things more indirectly related to trade

(antitrust, intellectual property and foreign-investment rules, for example).

According to the Peterson Institute, a think-tank, the potential gains were around

$280 billion a year. Its failure is a tragedy.

The villains are powerful lobbies, notably in agriculture, such as America's

cotton and sugar industries and Japan's rice farmers and fishermen. But there

were also two structural problems with Doha. One was the number of countries.

At the end of the first world-trade talks in 1947, 23 countries were involved.

When Doha started, 155 were. Second, the idea was to achieve a grand bargain in

which agriculture, manufacturing and services would all be liberalised. But

reaching agreement on some areas was so difficult that the WTO’s mantra ─

"Nothing is agreed until everything is agreed" ─ proved fatal.

After many missed chances to conclude a deal, an "absolute deadline" was

set for 31 December 2011. That too, was missed. Since then, protectionism has

been intensifying. Argentina has lodged complaints against America over lemons

and beef and against Spain over biofuels. Altogether, tit-for-tat actions mean that

new restrictions cover 4% of global trade, more than Africa's exports. On the plus

side, disputes over these are being adjudicated by the WTO system.

With Doha paralysed, regional alternatives to a multilateral deal are

springing up. They are not all bad, but regional deals tend to benefit insiders at

the expense of outsiders, so that global gains will be achieved only if they can be

fitted together.

Many experts think that instead of allowing the Doha round to be replaced

with a patchwork of regional deals, the WTO’s boss, Pascal Lamy, should close it

and resurrect the best bits in a "Global Recovery Round". He should drop the all-

or-nothing "single undertaking" rule that helped kill Doha. Instead, talks would be

broken up into small chunks and allowed to progress independently of one

another. Negotiations would be open, so that any member could leave or join.

Some deals, therefore, would not include everyone. But another of the WTO’s

guiding principles ─ the "most-favoured-nation" clause ─ must apply. This rule

means that any deal between a smaller group must be applied to all WTO

members, even if they do not reciprocate, WTO-brokered regionalism would thus

lower trade barriers for all.

198

The Global Recovery Round should focus on manufacturing and services.

Manufacturing represents around 55% of total trade. There is much to be gained:

tariffs on cars, buses and bicycles are still high. Even low-tariff countries

maintain a selection of high ones. In America ski boots attract a zero tariff, but

golf shoes can face a 10% rate, and steel-toe-capped boots 37.5%. Services,

which account for only 20% of world trade but are more important on a value-

added basis, have hardly been liberalised at all.The Economist, September 8th, 2012

*laudable – похвальный, достойный похвалы

**villain – злодей, негодяй, преступник

***to spur побуждать, поощрять

****to resurrect – возрождать


faltering – неуверенный, нерешительный, неустойчивый

to lodge a complaint – подавать жалобу

to adjudicate a dispute – рассматривать спор

to reciprocate – 1) отвечать взаимностью;2) отвечать, отплатить


1. What happened to trade and growth when the economic crisis hit the world in 2008?

2. What were the aims of the Doha round and why did the talks fail?

3. What appeared as an alternative to a multilateral deal?

4. What is the drawback of regional deals?

5. Why is a Global Recovery Round considered by experts to be a better alternative?

6. What should the Global Recovery Round focus on?

Exercise № 11


to lower trade barriers; cutting tariffs and red tape; WTO’s mantra; to boost trade;

intensifying protectionism; multilateral deal; to achieve a bargain; faltering recovery;

potential gains; to place priority on improving the access to the market.

199

Exercise № 12


за счет кого-то; промышленные товары; подать жалобу; обрабатывающая

промышленность; установить крайний срок; заключить сделку; либерализовать

торговлю услугами, на долю которой приходится 20% мировой торговли.

VOCABULARY PRACTICE

Exercise № 13

Suggest – 1) предлагать, советовать; 2) предполагать, высказывать

предположение; 3) означать, говорить, наводить (на мысль), давать

возможность (основание) предположить


1. Policymakers confront a host of complex and interlocking challenges. Nothing that is

now happening suggests they will be managed competently, let alone smoothly.

2. Figures released on April 2nd showed that annual GDP growth slowed to 5.2% in the

fourth quarter, and initial evidence suggests a further deceleration this year.

3. With the world economy currently growing at 4.5%, that suggests the oil price would

need to leap, probably above its 2008 peak of almost $150 a barrel, to fell the

recovery.

4. Last week the central bank suggested it would ease monetary policy more cautiously

than it had in recent months.

5. On the corporate side, trends in orders and shipments suggest that business

investment in new equipment grew at a double-digit clip, even faster than in the

second quarter.

6. There is evidence to suggest that despite some areas of weakness, the economy may

still be on course to grow too quickly for comfort.

7. Friday’s report suggests that August’s rise in unemployment, the only increase this

year, was an isolated event and that Europe’s second-largest economy is continuing

to create jobs.

8. The IMF suggests that Italian GDP may rise by just 0.3% next year, down a full

200

percentage point from the 1.3% it predicted in June.

9. Industrial production continued to fall in August, suggesting that the economy may

even have entered recession in the quarter.

10. Market indicators still suggest investors are worried about sluggish growth and

deflation.

Exercise №14

Pattern – 1) образец, пример;2) путь, ход / направление развития, динамика, линия

поведения;3) характерное развитие, тенденция, характер,4) рисунок, узор;5)

кривая (графика);форма, схема, шаблон, модель;5) система;6) формула;7) порядок

действий.

consumption pattern структура / модель потребления

employment pattern структура занятости

distribution pattern схема распределения

billing pattern порядок оплаты (счетов)

delivery pattern организация поставок

competitive pattern тип конкуренции

service pattern система обслуживания

patterns of ownership формы собственности


1. Consumer spending follows a regular seasonal pattern.

2. The store has set the pattern for others in customer service.

3. Economic history shows that the economy never grows in a smooth and even

pattern.

4. Please indicate the colours and patterns of textiles that can be delivered immediately

from stock.

5. A new and extensive analysis shows a pattern of risky lending that could generate

$20 billion in losses and harm thousands of the nation’s most vulnerable borrowers.

6. Earlier this year, as the economy began to sputter, the сhairman of the Federal

Reserve was asked about the historical evidence that recoveries from financial crises

were always painfully slow. The Fed chairman responded that the pattern was clear

but the reasons were not.

201

7. Germany’s economy is often more volatile than that of neighbours like France. Its

specialization in investment goods, cars and other expensive consumer products

makes the upswings higher but downturns sharper. That pattern may now be broken.

As Europe slides, Germany is likely to sink less than the others.

8. New trade patterns reinforce the downward pressure on prices.

9. Consumption patterns are one of the most important drivers of development

patterns in the industrialised world.

10. Changes in employment patterns may reflect the fact that the world of work is

characterised by intense competition and constant change, in which both employers

and employees face increasing risk and uncertainty.

TRANSLATION SKILLS

I. АБСОЛЮТНАЯ ПРИЧАСТНАЯ КОНСТРУКЦИЯ

Признаком этой конструкции является наличие в ней подлежащего,

отличного от подлежащего главного состава предложения. Вторым членом

конструкции выступает причастие (однако, причастие being часто

опускается).

Перевод этой конструкции вызывает определенные трудности, так

как она не имеет прямых грамматических аналогий в русском языке.

Поэтому только контекст может указать на логическую связь абсолютной

причастной конструкции с главным составом предложения и подсказать

вариант ее перевода.

Абсолютная причастная конструкция может быть предложной ( с

предлогом with) и беспредложной. Предлог with на русский язык не

переводится!

При переводе данной конструкции различают два случая ее расположения:

1. Препозитивный, когда она стоит перед главным составом предложения. В

этом случае абсолютная причастная конструкция чаще всего переводится

придаточным предложением причины или времени, вводимым союзами «так как»,

«поскольку», «в связи с тем, что»;«в условиях, когда», «когда», «после того, как».

With China’s working-age population now shrinking, labour is becoming

scarcer and employees command higher wages.

202

В связи с тем, что в настоящее время трудоспособное население Китая

сокращается, предложение на рынке труда уменьшается, и заработная

плата работников растет.

Last November, with prices already slipping, OPEC’s members stopped trying

to agree production quotas among themselves, sending crude tumbling further.

В ноябре прошлого года, когда цены на нефть стали снижаться, страны-

члены ОПЕК прекратили свои попытки договориться между собой о квотах

на добычу нефти, что привело к дальнейшему падению цен.

В редких случаях, когда предложение относится к будущему

времени, абсолютная причастная конструкция может переводиться

придаточным условия. Иногда она переводится причастным оборотом.

2. Постпозитивный, когда причастный оборот стоит после основного состава

предложения. Часто он имеет значение сопутствующего или уточняющего

обстоятельства и вводится союзами «причем», «при этом».

Asia’s currencies have weakened with the Indonesian rupiah and the

Malaysian ringgit falling to their lowest levels against the dollar in nearly

two decades.

Курсы валют стран Азии снизились, причем курсы индонезийской рупии

и малазийского ринггита по отношению к доллару США упали до

рекордно низких уровней за почти двадцатилетний период.

Постпозитивный причастный оборот может также переводиться на

русский язык самостоятельным простым предложением, которое вводится

бессоюзно (на письме отделяется запятой, точкой с запятой или

двоеточием), или как часть сложносочиненного предложения, вводимого

союзами «и», «а», «но», «же».

China’s exports are expected to grow 4 percent to 6 percent next year, with

imports up 2 percent to 4 percent.

Ожидается, что в следующем году объемы экспорта Китая увеличатся в

пределах от 4 до 6 процентов, а объемы импорта вырастут на 2-4

процента.

203

Кроме того, постпозитивная абсолютная причастная конструкция

может выступать в качестве придаточного причины и вводиться союзами

«так как», «поскольку», «в связи с тем, что».

Growth will probably remain sluggish this year, with Germany’s export-

dependent economy hurt by the strong euro.

В этом году темпы экономического роста, вероятно, останутся низкими, так

как на экспортно-ориентированной экономике Германии негативно

скажется высокий курс евро.

При переводе предложений, осложненных абсолютной причастной

конструкцией, нельзя менять местами главный состав предложения и этот

причастный оборот, так как нарушится логика всего предложения.

Exercise № 15


1. With exports growing more slowly than domestic consumption, the economy is

becoming inward-focused and unproductive.

2. With the price of oil hovering near $40 a barrel, oil companies cannot pump the stuff

fast enough.

3. A big jump in property sales ignited demand for steel, with iron ore and coal rallying

alongside it. Some of the excitement is clearly speculative, with investors punting on

commodities as they have in the past.

4. In some parts of the country the downturn has led to recession-like conditions, with

unemployment swelling deep into double digits.

5. With Europe and Japan stuck in the doldrums, and China and other emerging

markets slowing, America’s economy looks relatively strong.

6. But now, with the euro as an alternative, the fear is of a sudden shift in the global

monetary system, with investors switching quickly from one currency to the other.

7. With productivity and pay still slumping, Britain’s recovery starts to look much

iffier.

8. The move takes Sony a step closer to becoming a chip designer with research and

development carried out in-house but with manufacturing capacity outsourced to

partner companies.

204

9. With competition from lower-cost rivals in South Korea, China and elsewhere on the

rise, Japanese managers have been reluctant to use their profits to pay workers more

or to hire new ones. This has cast a shadow over the economy.

10. The OECD also expects a slower cyclical upturn in the Eurozone, with

unemployment not starting to fall until late in the year.

11. With Colombia’s long-term prospects improving, the country’s technocrats believe a

gradually stronger currency is inevitable.

12. With the Federal Reserve tightening interest rates for the first time since 2006, the

greenback seemed destined to head higher.

13. Britain is famously open to overseas investment, with national brands like Cadbury

and Rolls-Royce Motors in foreign hands.

14. According to The Economist’s latest poll of forecasters, Australia is tipped to be the

fastest growing economy this year and next, with growth not far short of 4%.

15. With more work available in the past year, the unemployment rate for Americans

without a high-school diploma has fallen by one percentage point.

16. Most economists expect the first-quarter figures to be a blip, with activity rebounding

in the rest of the year.


Exercise № 16

For – 1) в качестве союза переводится на русский язык: так как, потому что,

ибо;2) в качестве предлога – а) за, ради;б) для;в) в течение, на какой-либо срок;г)

из-за, вследствие;д) за, вместо;и др.;

for all – несмотря на, вопреки, при (всем)…, чтобы… не…;

for one – со своей стороны;

for one thing – во-первых, прежде всего;

but for – если бы не, кроме, без, не считая, за исключением, если не

считать.


1. Collectively, emerging economies have run a current-account surplus for six

consecutive years, having been in deficit for most of the previous 20.

2. All this is bad news for auto makers who were counting on emerging markets like

205

Brazil to rev up profits in the coming decades.

3. For one thing, the euro area’s exports to America amount to only 2.5% of its GDP,

so even a sharp fall in American imports would have a limited impact on Europe’s

overall output.

4. For all the breathless headlines, Europe’s leaders are a long way from a deal on how

to save the euro.

5. This matters for Russia and also for the world. For not only is Russia one of the two

largest oil producers in the world, it is also one of the largest exporters, at nearly five

million barrels a day.

6. The recession in the UK could have been deeper but for the measures taken by the

government.

7. For all its shortcomings, the euro still accounts for a quarter of the world’s reserves.

8. And that is one reason to be more optimistic about the outcome. For private firms

possess one trait identified as an ingredient of success: technique.

9. The chief economist of the Bank of England has proposed eliminating cash as part of

a plan to permit negative interest rates. Yet for all its detractors, cash is puzzlingly

resilient.

10. Output prices have fallen for 41 straight months, a symptom of overcapacity in much

of China’s heavy industry.

Exercise № 17

But – 1) в качестве предлога переводится на русский язык: кроме, за

исключением;2) в качестве союза – а) но, а, однако, тем не менее; б) если не, как

не, чтобы не;3) в качестве наречия – только, лишь;

all but – 1) почти, едва не…;2) все кроме, за исключением;

anything but – далеко не; все что угодно, только не;

but for – если бы не, кроме, без, не считая, за исключением, если не

считать;

can but – а) во всяком случае, по крайней мере; б) только;

cannot but – не может не.


206

1. Financial markets have calmed; Asia is showing signs of improvement; and the US

economy continues to speed away. These positive developments are the beginning of

a global economic revival. But the road to recovery may not be a smooth one.

2. “Spain is doing a lot of the things Germany did ten years ago, but in a much shorter

time span and tougher global conditions,” chief economist at Morgan Stanley says,

pointing to falling labour costs, rising exports and booming Spanish car factories.

3. Plenty of people on Wall Street and in Corporate America have all but given up on

seeing the rapid gains of productivity that the US witnessed in the late 1990s.

4. Some experts praised Russia’s development, saying it was anything but sluggish or

socialist.

5. Trade links enabled developing economies simply to join existing supply chains

rather than build an entire industry from the ground up. But for those connections,

the Chinese miracle might have been much less miraculous.

6. At a time when markets seem to deliver nothing but bad news, the expectation of

bumper harvest in the northern hemisphere is a rare source of cheer.

7. European Central Bank interest rate cut shows economic recovery anything but

secure.

8. In all but the rarest instances, tariffs hurt the country that imposes them, as their costs

outweigh their benefits.

9. We can but hope that economy will improve this year.

10. The point is that economic reforms cannot be limited to the national stage for the

same reason that economic agents cannot but operate beyond national borders.

11. There are those who really believe putting Asda into the Wal-Mart network will

result in anything but success.

III. ПРИЧАСТИЯ В ФУНКЦИИ СОЮЗОВ И ПРЕДЛОГОВ

Exercise № 18

Причастия в функции союзов вводят условные, причинно-

следственные и уступительные придаточные предложения. На русский

язык они переводятся следующим образом: provided/providing,

granted/granting ─ при условии, принимая во внимание;supposing, assuming

207

─ если, допустим, предположим, что;seeing ─ поскольку, принимая во

внимание, учитывая, ввиду того что.

Причастия в функции предлогов стоят перед существительными

и переводятся следующим образом: given ─ при наличии, учитывая, если

учесть;failing ─ при отсутствии, в случае отсутствия, ввиду

отсутствия, за неимением;regarding, considering, respecting ─

относительно;following ─ вслед за, после;barring ─ кроме, за исключением,

исключая, если исключить, если не.

Given, failing, barring с относящимися к ним словам могут

переводиться условным придаточным предложением.


1. It will take time for exports to recover to pre-earthquake levels given that supply-

chain disruptions and electricity shortages are hampering efforts to restore

production.

2. True, the 6% or 7% pace of last quarter probably won’t be repeated, but solid growth

in the neighborhood of 4% for the next couple of quarters seems likely, especially

given the powerful boost expected from the need to rebuild inventories.

3. However, given signs that manufacturing is on the road to recovery, interest rates

have further to rise before they reach their peak.

4. The eurozone has managed to avoid returning to recession for the first time since the

financial crisis following the collapse of U.S. investment bank Lehman Brothers,

mainly thanks to the strength of its largest economy, Germany.

5. Given that U.S. spending is picking up, import growth in the mid-single-digits seems

highly likely.

6. Provided modest growth returns from the middle of next year, that should be

sufficient for debt to start edging down from a peak of 127.6% of GDP.

7. The Italian oil company ENI first found gas in Mozambique in 2011, closely

following a discovery by Anadarko Petroleum of the United States.

8. Further immediate cuts of government stimulus – even supposing they are

practicable – would not produce an offsetting increase in private sector aggregate

demand.

208

9. Barring hurricane strikes at oil refineries, US petrol markets normally hit a seasonal

peak before summer begins.

10. Supposing the US plan ends up providing $200 billion, that would be roughly 1.5%

of US GDP.

11. Investors were also energized by better data from the US, particularly regarding the

housing.

12. These challenges are pushing local brands to alter their thinking regarding the need

for development and technology support from international partners.

IV. ПЕРЕВОД ПРЕДЛОЖЕНИЙ, ПОДЛЕЖАЩЕЕ КОТОРЫХ

ВЫРАЖЕНО НЕОДУШЕВЛЕННЫМ СУЩЕСТВИТЕЛЬНЫМ, А

СКАЗУЕМОЕ – ГЛАГОЛОМ, ВЫРАЖАЮЩИМ ЧУВСТВО

Exercise № 19

При переводе таких предложений сказуемое, выраженное глаголами

to see, enjoy,как правило, переводится словами “отмечалось”,

“произошло”, “наблюдалось”, а подлежащее английского предложения

становится дополнением или обстоятельством места. Если за таким

сказуемым идет дополнение в виде существительного, обозначающего

“увеличение” или “уменьшение” чего-то, то в этом случае глагол

опускается, а сказуемым становится это дополнение.

Last week saw a further decline in interest rates. На прошлой неделе

произошло дальнейшее снижение процентных ставок.

Government spending saw a steady growth in the first three months. В

первом квартале государственные расходы устойчиво росли.

В некоторых словосочетаниях глагол enjoy может переводиться

словами “обладать”, “иметь”, “пользоваться”.


1. Perhaps the most dramatic decline among the eurozone’s members was seen in the

Netherlands, whose economy shrank 1.1 percent on the previous quarter.

2. The wider 27-nation EU saw output rise 0.1 percent during the quarter, largely on the

back of an Olympics-related boost in Britain.

209

3. While Europe and the U.S. have been mired in economic stagnation, Latin America

has enjoyed a strong recovery, having for the most part sailed through the recession

without lasting damage.

4. The sector, which accounts for about 10% of Japan’s total exports, saw a 22.1%

slump from March 2010, as car manufacturers had to cut production and idle plants

because of electricity shortfalls and supply chain disruption in the wake of the

Fukushima disaster.

5. Europe’s economy enjoyed its strongest growth last decade, powered by a resurgent

Germany.

6. As America enjoyed the rewards of its vibrant “new economy”, Europe, it seemed,

was saddled with a tired, old economy, incapable of change.

7. In October private sector services saw the slowest expansion with weaknesses in

business activity and new orders.

8. The steel sector was the only one out of eight core sectors that saw a contraction,

which accelerated to 5-9% in August compared to 2-5% in July. This is probably due

to the increased import of cheap steel from China due to the devaluation of yuan.

9. Any concerns over the economic health of China, which once enjoyed a double-digit

growth for more than a decade, is likely to raise fears of spillover to other nations.

10. It was important to ensure that those economies enjoyed normal external conditions

for trade, economic and financial activities and gained rapid entry into the

multilateral trading system, with unhindered access to world trade markets.


TEXT 1


An Island of TradersTrade is just as important today as it was in the past, not least because

arguments about it pervade the heated debate about Britain’s EU membership. In

2012 the sum of British goods and services traded was £1 trillion ($1.5 trillion).

At around 70% of GDP this is well above the OECD average, and the share of

trade in the American economy (around 25%). Although some trade more – in

Germany the ratio is 90% – Britain is comparatively open.

210

The biggest chunk of trade is in goods, which make up 80% of global

trade and 62% of Britain's exports. Today's bestsellers include machines,

pharmaceuticals and cars. When added to the next biggest – oil – these account

for half of Britain's exports. But Britain still buys more than it sells. In 2012 car

exports were worth £21 billion, with Land Rovers and Minis strong sellers,

though cars worth £23 billion were bought from abroad. And while £40 billion of

oil went overseas, £54 billion came in as imports. In total, the deficit ran to £106

billion in 2012.

Britain's trade with other European countries is vital: seven of the ten main

exports destinations are also in the EU. But non-EU trade is becoming more

significant. The four leading foreign homes for BMW's Mini, made in Oxford, are

America, Germany, China and France. That pattern explains why the export of

goods to EU and non-EU members is almost identical. The EU’S 50% share of

British exports points to a relatively fast erosion: ten years ago it was above 60%.

At country level, trading partners form three groups. The leading

destination for British exports is America and there is a large trade surplus with

Ireland. France sits in the middle. As both a big seller to and buyer from Britain,

trade is large but balanced. The final group includes Germany, the Netherlands

and China, where the trade gap creates Britain's biggest deficits.

Worries about persistent trade shortfalls are offset a little by services

surpluses. Banking, law firms, IT and other consultancies are selling well in non-

EU countries. And because these countries are growing fastest, the services

surplus is getting bigger. This means that Britain's EU trade is being nudged

further down the list. Yet the fact that links with the Americas and Asia are

becoming closer is just a return to the commercial liaisons of the past.The Economist, May 18th 2013


to pervade – пронизывать, наполнять, распространяться

to nudge – подтолкнуть

liaison — связь (связи), взаимодействие

211

«

TEXT 2


EU Berates China over Steel SubsidiesThe European Commission has concluded that China is providing illegal

subsidies to its steel manufacturers, paving the way for European companies to

seek higher import tariffs on a wide range of Chinese products.

The EU executive arm said Beijing was helping makers of organic coated

steel – used in construction and to make household appliances – to obtain

materials at below market prices, according to a report obtained by the Financial

Times.

The report comes amid high tensions between China and the EU across a

range of industries from solar panels to telecommunications equipment. It

recommends hitting imports of Chinese coated steel with countervailing duties of

up to 50 per cent. Last year, the commission imposed provisional anti-dumping

duties of up to 58 per cent on Chinese steel producers over a related complaint.

The move should provide relief to European steelmakers such as

ArcelorMittal and ThyssenKrupp which have seen demand sag because of the

economic crisis and have also lost market share to Chinese rivals.

The findings could have wider repercussions for a host of European

industries if they establish that China provides rolled steel – a key ingredient in

making coated steel – to manufacturers at heavily subsidised prices.

The report said China provided the subsidies mainly through export

restrictions that artificially lower prices of rolled steel for domestic

manufacturers. The EU and US have already challenged this practice at the World

Trade Organisation for a host of other raw materials.

Beijing has repeatedly denied that its subsidies are illegal, and has pointed

instead to a range of support schemes employed by Brussels and European

governments to support European companies.The Financial Times, January 14th, 2013


to berate – ругать, бранить

to pave the way – прокладывать путь, готовить почву

212

arm – подразделение, отдел, управление

executive arm исполнительный орган

organic coated steel – сталь с органическим напылением

rolled steel – стальной прокат

amid – на фоне, в условиях, среди, между

household appliance – бытовой прибор

duty – таможенная пошлина

countervailing duty – компенсационная пошлина

provisional duty – временная пошлина

repercussion – последствия, влияние

TEXT 3


Euro-MPs Vote to Extend Sugar QuotasA plan to liberalise the EU sugar market, one of the most highly

subsidised aspects of European agricultural policy, has been thrown into doubt

after lawmakers rejected a proposal to end production quotas by 2015.

The European Parliament’s agriculture committee voted instead to extend

the quotas until 2020. Some observers predicted they could last well beyond that.

The vote drew a harsh reaction from food and drink companies, which

view the quota system as a protectionist relic and blame it for supply shortages

and EU sugar prices that are roughly 50 per cent higher than those on world

markets.

The quota system dates back to the 1960s, and was established as a way to

ensure stable prices for Europe’s beet farmers. Since then, it has also enriched a

collection of large European sugar companies.

Supply shortages have become acute in recent years, with last year’s quota

of 13.8m tonnes failing to keep pace with EU consumption of more than 16.5m

tonnes. The price of sugar has risen to more than €700 per tonne in the EU,

compared with world prices of just under €500.

EU prices have also been supported by high tariffs on imported sugar from

all but the poorest countries.

213

Under pressure from the World Trade Organisation, the EU adjusted its

sugar policy in 2006, and member states agreed to end production quotas by

2015. The European Commission, the EU’s executive arm, has submitted a

formal proposal to do so as part of its broader review of the common agricultural

policy.

But the agriculture committee’s vote makes that unlikely. Germany and

France, the EU’s biggest member states, are also thought to favour an extension

of the quotas.

An extension of the quotas – and the high tariffs – will be particularly

painful for small and medium-sized food companies, which have struggled to

secure supplies, while maintaining profits for big sugar companies.The Financial Times, January 23rd, 2013


acute – 1) острый; 2) критический, крайний; 3) резкий

to submit a proposal – внести предложение

to review a policy – пересматривать политику

to secure supplies – обеспечивать запасы, поставки

TEXT 4


Chasing the anti-China VoteThe American government lodged a trade complaint on September 17th,

alleging that China unfairly subsidises car-part exports.

The American automotive-parts industry which supplies carmakers with

everything from seats and bumpers to axles and electronic devices is big, with

exports of close to $60 billion in 2010. The industry is a major employer,

particularly in Indiana, Kentucky, Michigan, Missouri, Ohio, South Carolina and

Tennessee. But it has endured years of gradual decline. In 2001, five of the top

ten global firms were American; by 2009 just two made that list. The first years

of the credit crunch hit employment especially hard, with the American industry

shedding around 200,000 jobs ─ some 30% of its total between 2007 and 2009.

214

The complaint relates to "export bases" set up in 12 Chinese

municipalities. In these areas, America's complaint alleges, firms were handed $1

billion in government grants, tax breaks, and subsidised loans between 2009 and

2011, on the condition that they exported the car parts they produced.

The complaint has a good chance of being upheld. The WTO has rules

against export subsidies for manufactured products, and interprets them broadly.

Allowing for appeals, a final ruling might take a year or so.

China lodged its own complaint at the WTO against America on 17th

September. Many Chinese goods face "countervailing" duties when they are

shipped to America. These measures, applied to paper, steel, tyres and chemicals

among others, are designed to offset China's subsidies. China reckons they go too

far. Recent cases suggest China might well win too.

Does a trade war beckon? Probably not. This tit-for-tat of complaints

against existing trade barriers may be causing headaches for the WTO’S lawyers,

but it is better than the alternative, a fight in which countries put up new barriers.

An optimistic view would be that a flurry of WTO disputes would actually reduce

protectionism, unclogging trade channels and reassuring the majority of

Americans who said that their country's overall trade deficit with China was a

"very serious problem”.

A full-scale trade war over car parts is also unlikely for another reason.

American firms are having growing success shipping auto parts to car-mad China,

exporting $1.3 billion-worth in 2010.The Economist, September 22nd, 2012


to allege (that) – заявлять, утверждать (что якобы)

to endure – перенести, вынести, выдержать

credit crunch – ограничение кредитования, кредитный кризис

to shed jobs – сокращать рабочие места

tax break – налоговые льготы, снижение налоговой ставки

to uphold a complaint – поддержать, удовлетворить жалобу

final ruling – окончательное решение (суда)

to beckon – манить, привлекать

to unclog – расчистить, прочистить

215


TEXT 5


UK Trade Deficit Shows Little ImprovementBritain's trade deficit narrowed slightly in November but showed little sign

of significant improvement; an exception to the otherwise positive news on the

economy.

The overall gap between Britain's imports and its exports was £3.2bn in

November, narrower than the £3.5bn gap in October. The trade deficit in goods

also narrowed from £9.7bn to £9.4bn, in line with economists' expectations.

The goods deficit has been hovering between £8bn and £10bn for at least a

year, disappointing policy makers who hoped the steep 25 per cent depreciation

of sterling in the wake of the crisis would trigger an export boom.

Instead, Britain's recovery has been propelled by higher domestic

consumption and a recovering housing market. "The trade data are stuck in a rut,"

said Alan Clarke, an economist at Scotiabank. "On the plus side, the outlook in

the eurozone does look to be improving, albeit gradually... but for now, if

anything is going to take over from consumer spending as the driver of growth, it

looks unlikely to be net exports."

Exports rose 2 per cent between October and November, driven by higher

exports to other European Union countries, while imports rose 0.8 per cent.

Exports to countries outside the EU fell slightly.

The stronger economy has prompted a 9 per cent increase in sterling

against a basket of currencies over the past 10 months, which has not been helpful

for the UK's exports. Over the three months to November, exports fell 3 per cent

and imports fell 0.6 per cent.

The Office for Budget Responsibility, the UK's official fiscal watchdog,

said in December it expected imports to outpace exports for the entire five-year

period of its forecast. While this was partly the consequence of relatively weak

216

global growth, the OBR also predicted the UK's share of world exports would

continue to decline until at least 2019.The Financial Times, January 9th, 2014

NOTES

The Office for Budget Responsibility – Управление по контролю за исполнением бюджета


to hover – колебаться

depreciation – 1) снижение курса, стоимости; 2) амортизация

in the wake после, вслед за

watchdog – надзорный орган, орган надзора

TEXT 6


Fears of a Hard LandingChina is routinely accused of exporting too much. Its foreign sales far

exceed its foreign purchases. This chronic surplus angers many.

But this month brought two intriguing breaks to the routine. In March

three of China's biggest trading partners Japan, the EU and America

complained that China was exporting too little. They brought a case at the WTO

alleging that China was unfairly restricting its exports of molybdenum and 17

"rare earths" used in the manufacture of many high-tech goods.

The other novelty arrived when China's customs bureau reported a

Chinese trade deficit. At $315 billion in February, the imbalance was bigger than

any deficit on record it was bigger even than many of China's monthly

surpluses.

The deficit has fuelled one fear and one hope. The fear is that China's

economy will slow sharply, hobbled by declining exports to crisis-racked Europe

and a rising bill for commodities. The hope is that China is rebalancing, moving

away from an economic model reliant on foreign demand.

It is true that China's weak exports are contributing to a slowdown in the

broader economy. China's industrial production grew by 11.4% in January and

217

February, compared with 2010, much slower than its normal pace of about 15%.

But the prospects for global growth are brightening, suggesting that China's

exports have bottomed out. And the slowdown in China's economy has been

matched by a helpful fall in inflation. That gives China's government some scope

to stimulate demand.The Economist, March 17th, 2012


hard landing – резкое снижение темпов экономического роста

soft landing – постепенное замедление темпов экономического роста

rare earths – редкоземельные элементы

to bottom out – начинать расти (после падения), вступать в фазу оживления

(после экономического спада)

TEXT 7


China Dispute Hits Japanese ExportsJapan suffered another sharp decline in exports to China in November,

reflecting a slowdown in Chinese growth and the lingering damage of a territorial

dispute.

Falling exports to China helped push the trade deficit to ¥953.4bn

($11.3bn), the third-largest monthly deficit in more than three decades, and the

fifth consecutive decline. The trade deficit for this year is on course to be an

annual record, given that the cumulative deficit in the year to date is ¥6.8tn. The

record trade deficit so far was the ¥2.6tn posted in 1980.

The deteriorating trade balance will put pressure on Shinzo Abe, Japan’s

incoming prime minister, to fulfil his campaign promises to reflate the economy,

weaken the Japanese currency and return the country to a growth path. Mr Abe

has vowed to tackle the yen’s strength, which hurts Japanese exporters’

competitiveness and decreases their overseas profits. But Junko Nishioka, an

economist at RBS, said a weaker yen, while boosting exports, would make

imports more expensive, hurting the trade balance.

Japanese exports have suffered from a persistently strong yen since 2007,

218

while imports have risen in part due to the shift from nuclear energy to fossil

fuels, which Japan must buy from overseas, following the Fukushima disaster.

Exports to China fell 14.5 per cent to ¥859bn, in the second consecutive

double-digit monthly decline. The impact of the Chinese slowdown was reflected

in the 75 per cent drop in exports of construction and mining equipment, while

that of the territorial dispute appears to have been a factor behind the 69 per cent

drop in vehicle exports to China.

By contrast, exports to the US rose 5.3 per cent, making it the leading

destination of Japanese goods for the month. Exports to the US have risen

consecutively for the past 13 months. Japanese exports to the EU have fallen for

the past 14 months, with products such as vehicles and construction machinery

suffering the largest declines.

Analysts expect a gradual recovery in Japanese exports in the new year, as

global demand improves.The Financial Times, December 18th, 2012


cumulative deficit – совокупный дефицит

to deteriorate – ухудшать(ся), снижать(ся), уменьшать(ся)

to reflate the economy – возобновить рост темпов инфляции, восстановить

темпы роста экономики

fossil fuel – минеральное топливо

TEXT 8


China Trade Suffers on Global FearsChinese exports slowed sharply in November in a reminder of the external

headwinds that are blowing against the country’s economic recovery.

Exports increased 2.9 per cent year on year, down from an 11.6 per cent

pace in October and well short of forecasts for another similarly strong

performance. Imports were unchanged from a year earlier, slowing from a 2.4 per

cent increase in October, though a pick-up in the volume of key commodity

219

imports was consistent with more positive domestic investment and consumption

data.

That resulted in a $19.6bn trade surplus in November for China, its lowest

in five months. The weak trade figures were a reminder that for all of Beijing’s

efforts to rev up the economy, China is still exposed to the risks of sluggish

demand in Europe and the US. Smaller inflows through trade channels will act as

a drag on the Chinese recovery, which has been driven primarily by a boost in

government spending on infrastructure projects in recent months. But the

negative impact may be limited since the role of exports in powering Chinese

growth has steadily diminished since the global financial crisis.

Domestic demand, both from investment and consumption, now accounts

for more than 90 per cent of China’s gross domestic product. The numbers

reinforced expectations that after slowing for seven straight quarters, the world’s

second-largest economy is on track to finish 2012 with a moderate rebound

towards 8 per cent annual growth.

Ma Xiaoping, an economist with HSBC, said the weak export reading

would encourage the Chinese government to continue its fiscal and monetary

support for the economy. “Lacklustre exports pose the biggest downside risk to

China’s ongoing recovery,” she said.

While the export outlook will continue to remain shaky in the coming

months, a sustained recovery of the Chinese economy is expected to filter through

into stronger imports.The Financial Times, December 10th, 2012


performance – показатель, результат деятельности

to rep up – увеличивать, ускорять темп

to reinforce – усиливать, укреплять

fiscal – бюджетный, налоговый

monetary – денежно-кредитный

220

TEXT 9


Made in BritainExports are growing, but too slowly to rescue the economy.

Just over a mile from Liverpool John Lennon Airport sits the Halewood

operations of Jaguar Land Rover. Its foreign sales would make a Beatle envious.

Over the December holidays the Tata-owned car factory ran extra shifts to keep

up with demand.

As Britain's economy stumbles toward a likely recession, hopes are pinned

on exports, particularly to faster-growing parts of the world. There are some

encouraging signs. Britain's trade deficit shrank from 4% of GDP in 2007 to

around 1% of GDP by early 2011. But the economy might have been expected to

do better. The obstacles have been many. Falling global demand blunted the

impact of a cheap pound in 2008 and 2009. Once global trade recovered, so did

Britain's appetite for imports despite a rise in relative import prices of roughly

20% since 2007. The financial-services industry, which accounted for a third of

British exports in 2008, has been slow to recover.

A deeper concern is that Britain has become too dependent on rich-world

markets. The share of exports going to Europe has fallen in the past decade, but

the continent still accounts for half of British exports. That market is shrinking.

America absorbs more British exports than any other single country and its

economy still looks relatively robust. British exports to that country fell 4% in the

year to September, but showed signs of recovery, along with America's economy,

in October and November.

The emerging economies of Asia and Latin America seem a better long-

term bet than Britain's established markets. But the combined share of British

exports going to the three emerging-market giants China, India and Brazil is

less than 5%. Firms have been slow to build trade links with these fast-growing

economies. When the domestic economy was strong, there was little incentive for

its firms to go to the trouble of finding customers in unfamiliar markets.

The recent success of Britain's car industry suggests all is not lost.

Domestic car sales fell by 4.2% in the year to November, but exports to China

221

rose 23%, and sales to India were up by 67%. Foreign carmakers who built

export-oriented operations in Britain in previous decades have taken advantage of

the fall in sterling to expand market share, particularly in emerging markets.

Others must find a way to learn from and duplicate the success now on display in

Liverpool. Let it be.The Financial Times, January 21st, 2012


operation – 1) действие, работа ,функционирование;2) торговля, финансовая

операция;3) предприятие, подразделение

shift – (рабочая) смена, рабочий день

robust – устойчивый, крепкий, сильный

to blunt – притуплять, ослабить, снижать, сдерживать

CONSOLIDATION

Exercise № 20


1. With no signs of an end to the world’s current oil glut, fears are mounting of a repeat

of the 1980s, a grim era for oil producers when revenues not only crashed, but stayed

depressed for nearly 20 years.

2. Jeoff Hall, an economist at Thomson Financial, said: "Given the high level of export

orders, we were surprised to see such a rapid deterioration in business conditions

recently."

3. For one thing, the airborne share of trade is declining as the efficiency of seaborne

trade grows.

4. Most companies have little choice but to continue to do cost-cutting to maintain profit

margins amid weak sales.

5. The cargoes that fill the ships at America’s ports reflect changes in the US

consumption patterns (e.g. fewer oil imports as domestic production increases).

6. Pascal Lamy, head of the WTO, has suggested that Africa could be China’s biggest

trade partner within three to five years.

7. The news is no better in Europe, where third-quarter profits are expected to be down

5.4% on the year, with revenues dropping 7.9%.

222

8. The inventory buildup suggests that third-quarter GDP growth was somewhat higher

than the government’s initial estimate of 4.8%.

9. With China’s farms expanding, at a time of subdued domestic demand, and with

European ones freed from production quotas, milk prices could slip further.

10. Investors and analysts now regard a December increase in oil prices as all but certain,

barring unexpected developments.

11. If all goes well, the next four years will see lower unemployment, higher real wages,

higher profits and investment-driven productivity improvements.

12. Now the worry is another slowdown, given that the average gasoline price hit a

record $2.28 per gallon in the week ended April 11.

13. In all, policymakers confront a host of complex and interlocking challenges: fiscal

and monetary normalization in advanced countries; managing the overheating in

emerging economies; adjusting to big shifts in prices; and rebalancing the entire

pattern of global demand.

14. Fiat looks like Europe’s most challenged carmaker this year, barring perhaps only

Peugeot Citroёn.

15. Even now, with the recovery more than three quarters old, capital spending remains

stuck in the doldrums.

16. The pattern of developed-country deficit and emerging-market surpluses is likely to

continue.

17. The privileges of reserve-currency status were not confined to the dollar, though it

enjoyed the lion’s share.

18. The pattern of growth is expected to be uneven, with the US displaying a much

stronger recovery than the Eurozone or Japan.

19. The rich world’s recovery is anything but assured; the euro zone, which accounts for

13% of global output, is once again teetering on the brink of recession.

20. China saw imports drop for the twelfth month in a row in October giving further

cause for concern over the Chinese economy. Chinese authorities have been trying to

make the economy more consumer-led and less reliant on exports, but the continuing

fall in imports suggests domestic demand is not as strong as Beijing would like.

223

VOCABULARY CHECK

Exercise № 21


1. Торговый баланс страны – это разница между стоимостью экспорта и импорта

за определенный период времени.

2. Снижение объемов импорта нефти в США, вызванное увеличением

собственной добычи в этом году, компенсируется повышением спроса на этот

сырьевой товар со стороны Китая, Индии и азиатских стран в целом.

3. Данные о мировой торговле нефтью говорят о том, что повышение курса рубля

по отношению к доллару отрицательно сказалось на экспортных показателях

российских нефтяных компаний.

4. США подали жалобу в ВТО на Китай, утверждая, что он якобы предоставляет

субсидии сталелитейным компаниям, которые экспортируют свою продукцию в

США.

5. Учитывая снижение мировых цен на энергоносители, эксперты предполагают,

что дефицит торгового баланса США во втором квартале впервые снизится

после непрерывного роста в течение шести кварталов подряд.

6. Поскольку темпы роста объемов экспорта опережали темпы роста объемов

импорта, отрицательное сальдо торгового баланса США в торговле с Китаем

снизилось в октябре на 4.2% и составило 31,1 миллиарда долларов.

7. В третьем квартале темпы роста экономики Финляндии замедлились, что, тем

не менее, компенсировалось ростом объемов экспорта, который составил 40%

ВВП.

8. В прошлом месяце споры между ЕС и Аргентиной по поводу введения

последней экспортных ограничений усилились, так как Аргентина не проявляет

никакого желания их отменять.

9. Как сообщило вчера Министерство торговли США, оживление экономики

происходит значительно более быстрыми темпами, чем ранее ожидалось,

причем устойчивый рост продолжается уже на протяжении трех кварталов

подряд, и нет никаких признаков повышения уровня инфляции.

224

10. На протяжении многих лет США имеют отрицательное сальдо торгового

баланса по видимым статьям, которое, однако, не вызывает особого

беспокойства, поскольку составляет всего 1,5% ВВП.

11. В ноябре положительное сальдо торгового баланса Китая несколько

уменьшилось, что отражает сокращение объемов экспорта в Европу вследствие

экономического спада.

12. Размер положительного сальдо торгового баланса Китая во многом зависит от

неустойчивых цен на сырьевые товары, которые Китай импортирует, но, как

предполагают многие эксперты, в этом году он не превысит 2,8% ВВП страны.

13. Как только США ввели квоты на импорт российской стали, которая, по

утверждениям сталелитейных компаний США, продавалась по «демпинговым»

ценам, Россия ввела ответные меры в виде запрета на ввоз куриных окорочков,

якобы не отвечавших российским санитарным нормам и требованиям

безопасности.

14. В действительности, такой высокий курс рубля является благоприятным

фактором для всех, кроме экспортеров.

225

TOPICAL VOCABULARY UNIT IV

1. trade

international trade

syn. global trade

regulation of international trade

foreign trade

domestic trade

free trade area

merchandise trade

syn. visible trade / trade in goods

invisible trade

syn. trade in services

balance of trade / trade balance

trade surplus

trade deficit

syn. trade gap / trade shortfall

trade barriers

trade war

trade hub

open trade policy

flexible trade policy

2. modern production techniques

3. multinational corporation / multinationals

4. globalization

5. assets

assets and liabilities

6. to invest (v)

investment (n)

syn. capital spending

foreign direct investment (FDI)

investor

7. foreign currency

syn. foreign exchange

226

8. expertise

9. revenue

operating revenue

tax revenue

10. factors of production

syn. inputs

11. to export (v)

exports (n)

exports of goods and services / visible and invisible exports

exporter

12. to imports (v)

imports (n)

low-cost imports

visible imports / imports of goods

invisible imports / imports of services

importer

13. to protect (v)

protectionism

protective measures

14. to hinder

syn. to hamper

15. supply and demand

16. to ensure

17. tariff

to impose a tariff

to raise a tariff

ant. to reduce a tariff

to abolish a tariff

syn. to eliminate / lift a tariff

non-tariff barriers

18. to retaliate

syn. to reciprocate

in retaliation for

227

19. vulnerable

20. subsidy

to impose a subsidy

to scrap a subsidy

to subsidize

21. to dump (v)

dumping

anti-dumping measures

22. quota(s)

export / import quota

to lift a quota

23. duty

provisional duty

24. restraint

restraint of trade

syn. restriction of trade

export restraints

voluntary restraints

wage and price restraints

25. to restrict

restriction (on)

to impose restrictions

ant. to lift / remove restrictions

currency restrictions

quantitative restrictions

26. World Trade Organization (WTO)

27. North American Free Trade Agreement (NAFTA)

28. buying power

29. rebound (n), (v)

30. lag

syn. time lag

31. loan (n)

short-time loan

228

to lend (v)

lender

32. slack (n), (adj)

33. complaint (n)

to lodge a complaint

to uphold a complaint

to complain (v)

34. amid

35. in the wake of

36. tax break

37. to bottom out

38. to allege

allegedly

allegation(s)

229

UNIT FIVE

MARKET STRUCTURE AND COMPETITION

LEAD-IN


The notion of COMPETITION is widely used in economics in general

and in microeconomics in particular. According to orthodox economic theory,

competition is defined as a market situation in which suppliers strive for

consumers in a way that induces a better allocation of resources and spurs

efficiency.

Competition is considered the basis for capitalist or free market

economies. Competition occurs when two or more organisations act

independently to supply their products to the same group of consumers. Direct

competition involves firms whose products are an approximate substitute for one

another. Indirect competition occurs where the products are essentially different

but still competing for the same pounds of consumer expenditure for example,

gas versus heating oil or air versus rail travel.

The main challenge for business strategy is to find a way of achieving and

keeping a sustainable competitive advantage over the other competing products

and firms in a market.

A competitive advantage is an advantage over competitors gained by

offering consumers greater value, either by means of lower prices or by providing

greater benefits and service that justifies higher prices.

There are two bases on which firms can compete:

price – where firms are selling identical or very similar products, they

must compete on price with each firm trying to undercut the others. Successful

price competition depends on cost leadership, i.e. the ability to supply the product

at a lower cost than any other competitor. A price cut by one firm can set off a

price war, especially in tough economic times, when price becomes a much

larger factor in purchasing decisions. Price wars usually occur when a business

believes that price-cutting produces increased market share, but does not have a

true cost advantage. When firms have similar cost structures, cutting prices means

230

cutting profit margins. If a competitor undercuts a firm's prices, the firm's most

natural response is to match the new low prices. However, this may prompt the

competitor to cut prices again, leading to a worse situation. In the short term,

price wars are good for buyers, who can take advantage of lower prices. Often

they are not good for the companies involved because the lower prices reduce

profit margins and can threaten their survival. In the medium to long term, price

wars can be good for the dominant firms in the industry. Typically, the smaller

firms cannot compete and have to close. The remaining firms absorb the market

share of those that have closed. In the long term, the consumer may lose too. With

fewer firms in the industry, prices tend to increase, sometimes higher than before

the price war started.

differentiation - non-price competition depends on making a product different

from those of competitors and by giving it distinctive qualities that are valued by

the target market. These might include branding, styling, special features or

higher levels of customer service. Such factors can allow a premium price to be

charged while still offering target customers competitive value-for-money.

In practice, many firms compete on a mix of price and differentiation,

aiming to attract customers with a superior overall proposition.

Economists have identified four types of competition – perfect

competition, monopolistic competition, oligopoly, and monopoly.

Perfect competition is a theoretical market structure in which

competition is at its greatest possible level. Some markets, such as stock

exchanges and commodity markets, approximate perfect competition. But a true

state of perfect competition in a market is not attainable in real life. As a concept,

though, perfect competition is useful because it functions as a standard to measure

the efficiency and effectiveness of real world markets.

A perfectly competitive market contains these 5 elements:

all firms sell identical products;

all firms are price takers they cannot control the market price of their product

because price is determined by supply and demand;

all firms have a relatively small market share; there are no monopolies;

buyers have complete information about the product being sold and the prices

charged by each firm;

231

the industry is characterized by low barriers or no barriers to enter and exit an

industry.

If any of these conditions are absent, it is an imperfect competition.

Imperfect competition appears in several different forms.

Monopolistic competition exists when many sellers offer products to

many buyers. Now, however, they do not sell identical products. Instead, they sell

differentiated products products that differ somewhat, or are perceived to differ,

even though they serve a similar purpose. Products can be differentiated in a

number of ways, including quality, style, convenience, location, and brand name.

However, they are close substitutes of each other. Under monopolistic

competition companies have only limited control over price.

The term monopoly has been derived from a Greek word Monopolian,

which signifies a single seller. Monopoly refers to a market structure in which

there is a single producer or seller that has a control on the entire market. This

single seller deals in the products that have no close substitutes. Entry into such a

market is restricted due to high costs or other impediments, which may be

economic, social or political. A monopoly is characterized by the absence of

competition, which can lead to high prices and inferior products and services.

Governments attempt to prevent monopolies through the use of antitrust laws.

The antitrust acts address such topics as price discrimination, price fixing and

other unfair business practices. The laws are intended to preserve competition and

allow smaller companies to enter a market, and not to simply suppress strong

companies.

In an oligopoly, there are only a few firms that make up an industry. This

select group of firms has control over the price and, like a monopoly, an

oligopoly has high barriers to entry. The products that the oligopolistic firms

produce are often nearly identical and, therefore, the companies, which are

competing for market share, are interdependent as a result of market forces.

A market in which there are only a few large buyers for a product or

service is called oligopsony. This allows the buyers to exert a great deal of

control over the sellers and can effectively drive down prices. A good example of

an oligopsony would be the U.S. fast food industry, in which a small number of

large buyers (i.e. McDonald's, Burger King, Wendy's) controls the U.S. meat

232

market. Such control allows these fast food mega-chains to dictate the price they

pay to farmers for meat and to influence animal welfare conditions and labor

standards. Monopsony (from the Greek mono ‘only’ and psonios ‘to buy’) is a

situation which appears when a market exists for only a single consumer. The

consumer has a special control over the price of products and the producers have

to adapt themselves in some way to the demands of the buyer in matters of price

and quantity.

On the basis of market position, market share, brand image, resources

capacities, and domination power (degree of control over others), there are

broadly four types of competitors, such as:

market leaders

market challengers

market followers

market nichers.

A market leader is a brand, product, or firm that has the largest

percentage of total sales revenue of a market (the biggest market share) that

dominates its competitors in customer loyalty, distribution coverage, image,

perceived value, price, profit, and promotional spending. To remain dominant,

the leader looks for ways to expand total market demand, attempts to protect

its current market share, and perhaps tries to increase its market share.

A market challenger attacks the market leader and other competitors

in an aggressive bid for more market share. Market challengers are able to

jockey for industry leadership in several ways: challenging the market leader on

price (direct approach), increasing product differentiation or improving customer

service (indirect approach), or launching an entirely new product or service in

order to change the field (radical approach).

A market follower is a runner-up firm that is willing to maintain its

market share and not rock the boat. A follower starts with a much smaller

market share but can benefit from the marketing efforts aimed at consumer

education expended by the front-running firm. A follower can play the role of

counterfeiter, cloner, imitator, or adapter.

A market nicher serves small market segments not being served by

larger firms. The key to nichemanship is specialization. Nichers develop

233

offerings to fully meet a certain group of customers’ needs, commanding a

premium price in the process.

Competition is of great importance to the functioning of market

economies. It enhances allocative efficiency by securing that supply conforms to

consumer preferences and resources are directed to their most valued use. It

enhances productive efficiency by minimizing production costs and sets

incentives for the development of new products and production techniques.

Healthy competition is good, but overly aggressive price wars can have negative

long-term effects for both consumers and firms. There will always be a place for

a low-cost leader, but other firms can respond to price challenges more

intelligently by differentiating their products and delivering a superior offering to

consumers.

Based on www.investopedia.com


1. How is competition defined by economists? Why is it considered to be the basis for

free market economy?

2. What is direct/indirect competition?

3. What impact does competition have on a) businesses b) consumers c) economy?

4. What are the sources of sustainable competitive advantage a business can exploit?

5. How can companies cope with the pressure created by reduced prices?

6. What is a price war? Are there any winners or losers?

7. What are the non-price competition methods and tools?

8. Which is the most/least competitive market structure?

9. In which form of market structure is price the main factor for success in competition?

10. In which market structure do producers have the most market power?

11. What is a price-taker?

12. What is the difference between oligopoly and oligopsony?

13. What does it take to become a market leader?

14. What market players can be called a market challenger and a market follower?

15. What are the firms that make products and/or services for specific demand of

customers which are not met by otherwise available products?

234

ACTIVE VOCABULARY

1. to compete competitor

syn. rival would-be/ potential

competitor competition (strong, stiff,

severe, fierce, tough, cutthroat)

[non]price competition [im]perfect competition monopolistic competition competitive

competitive advantagesyn. (competitive) edge

competitiveness to beat a competitor to undercut / undersell a

competitor withstand / fend off

competition

to meet with/ encounter/ face competition

конкурировать, соревноваться конкурент

потенциальный конкурент конкуренция (сильная, высокая,

жесткая, ожесточенная) [не]ценовая конкуренция [не]совершенная конкуренция монополистическая конкуренция конкурентный,

конкурентоспособный конкурентное преимущество

конкурентоспособность победить конкурента продавать по более низким ценам,

чем конкурент выдерживать, отражать

конкуренцию, противостоять конкурентам

сталкиваться с конкуренцией

2. to allocate allocation

выделять, распределять, ассигновать выделение, распределение,

ассигнование

3. to substitute (for) substitute (n) substitution

заменять, замещать, использовать вместо

заместитель, замена, заменитель замена, подмена, замещение

4. cost (s) cost leadership

cost advantage

стоимость; затраты, издержки (мн) преимущество за счет экономии на

издержках ценовое преимущество,

экономический эффект

5. profit margin маржа прибыли (разница между себестоимостью и ценой продажи)

6. to absorb занимать, захватывать, поглощать,

235

впитывать

7. target market target customer

целевой рынок целевой потребитель,

потенциальный клиент

8. differentiation

product differentiation

индивидуализация продукции или услуг (придание продукту характеристик, отличающих его от аналогичной продукции других фирм)

расширение номенклатуры, ассортимента продукции (с выходом за пределы отрасли);внедрение модификаций продукции

9. value-for-money выгодная сделка, качество по разумной цене, хорошее соотношение цены и качества

10. superiorant. inferior

превосходный, превосходящий, лучшийант. недоброкачественный,

уступающий

11. monopoly монополия, единовластие, исключительное право

12. oligopoly олигополия (рыночная ситуация, характеризующаяся ограниченным числом крупных фирм)

13. oligopsony олигопсония (ограниченное кол-во покупателей при значительно большем числе продавцов)

14. monopsony монопсония (рыночная ситуация, в которой многим конкурирующим продавцам противостоит единственный покупатель)

15. price-taker экономический агент, не оказывающий влияния на цены на рынке

16. to charge a price назначать цену

17. to command a premium price продаваться по цене выше номинала

18. price discrimination ценовая дискриминация

19. price fixing ценовой сговор

236

20. price war ценовая война

21. unfair business practices методы нечестной конкуренции

22. to deal in торговать, проводить операции

23. barrier to entry входной барьер, барьер для доступа на рынок

24. to impede impediment

препятствовать, затруднять, мешать препятствие, помеха

25. to jokey (for) вести борьбу (за), конкурировать

26. market leader market challenger

market follower

лидер рынка; второй по популярности продукт

на рынке; компания, конкурирующая с лидером рынка;

фирма в отрасли, которая проводит политику следования за рыночным лидером; такая фирма предпочитает сохранять свою рыночную долю, не принимая рискованных решений

27. runner-up участник состязаний

28. counterfeit подделка, фальсификат, контрафактное изделие

29. niche

to niche niche (adj) market nicher

ниша, незанятый сегмент рынка; рынок сбыта

искать / находить нишу на рынке нишевой, узкоспециализированный нишевой игрок рынка

30. to conform (to) соответствовать, согласовывать

31. antitrust laws/regulation антимонопольное законодательство, регулирование

Exercise № 1


to compete; rival; direct competition; substitute; identical; expenditure; to absorb;

differentiation; premium price; superior; fierce; giant; feud; catalogue; niche; ratio;

diversification; to vary; variable; antitrust regulators; oust; to launch / to relaunch; frugal;

237

target; ultra-low; prestige; detrimental; to cannibalize; monopoly; oligopoly; international

alliances; ubiquity; paradigm; technique.

Exercise № 2


free market economy; to keep sustainable competitive advantage; to offer greater value;

stronger competitiveness; to gain cost advantage; to deliver superior offerings to

consumers; to enhance allocative efficiency; fierce competition; to command a premium

price; to generate profit; increased market share; target customers; customer loyalty; to

engage in competition; competitive edge; to suppress strong companies; to undercut

competitor’s prices; to launch a new product or service; to conform to consumer

preferences; to respond to price challenges.

Exercise № 3.

Give English equivalent to the following words and word combinations.

распределение ресурсов; торговать аналогичной продукцией; спровоцировать

ценовую войну; получить конкурентное преимущество; методы неценовой

конкуренции; удовлетворять потребности определенной группы потребителей;

определить целевой рынок; низкие входные барьеры в отрасли; назначить цену

выше номинала; ценовой сговор и другие методы нечестной конкуренции; товары

и услуги низкого качества; применять антимонопольное законодательство;

незанятый сегмент рынка; максимально снизить издержки производства;

покрывать расходы; вызывать продолжительные негативные последствия;

сохранить господствующие позиции на рынке.


1. Go to

Competition and Market Structure

http://www.econedlink.org/interactives/EconEdLink-interactive-tool-player.php?

iid=208

238

http://www.econedlink.org/interactives/EconEdLink-interactive-tool-player.php?iid=208

http://www.econedlink.org/interactives/EconEdLink-interactive-tool-player.php?iid=208

Perfect Competition http://www.investopedia.com/video/play/perfect-

competition-0/

Monopolistic Competition

http://www.investopedia.com/video/play/monopolistic-competition/

Competitive Pricing http://www.investopedia.com/video/play/competitive-

pricing/




1. Match the terms with appropriate definitions

1. antitrust case a. a government agency that regulates businesses in the public interest

2. regulatory authority b. exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices

3. pricing power c. the cost advantage that arises with increased output of a product

4. natural monopoly d. a market structure in which a small number of firms has the large majority of market share.

5. oligopoly e. a punishment imposed for breaking a law, rule or contract

6. monopoly f. a merchandise that is not identical to those of other firms in the same industry

7. a penalty g. a legal action brought against parties who are charged with limiting free competition in the market place

8. economies of scale h. a market in which there are many firms selling identical products with no firm large enough, relative to the entire market, to be able to influence market price

239

http://www.investopedia.com/video/play/competitive-pricing/

http://www.investopedia.com/video/play/competitive-pricing/

http://www.investopedia.com/video/play/monopolistic-competition/

http://www.investopedia.com/video/play/perfect-competition-0/

http://www.investopedia.com/video/play/perfect-competition-0/

9. pure competition i. the extent to which a company may raise prices without reducing demand for its products

10. differentiated product j. situation where one firm (because of a unique raw material, technology, or other factors) can supply a market's entire demand for a product or service at a price lower than two or more firms can

2. Fill in the gaps with the words/word combinations from the table (use the correct

grammar form)

to enter a market market dominance to settle an antitrust case

set prices below costs amassing monopoly power allocation of resources

driving competitors out of business

charge prices pure competition

enhance the profits oligopolies market share

a wide variety of goods economies of scale penalties

scrutiny from regulators natural monopolies differentiated products

What's so bad about monopoly power?

Google has been negotiating with European regulatory authorities since

2010 in an attempt ………………. concerning its search engine, and its third

attempt to settle the case has been rejected.

Google may also face new antitrust problems over its Android mobile

operating system, and it's not alone in facing tough antitrust scrutiny in Europe.

Microsoft has also been the subject of a long-running battle in Europe over

……………….. issues.

But what's motivating this scrutiny from European regulators? What's so

bad about a company ………………………?

When firms have such power, they ………………….. that are higher

than can be justified based upon the costs of production, prices that are higher

than they would be if the market was more competitive. With higher prices,

240

consumers will demand less quantity, and hence the quantity produced and

consumed will be lower than it would be under a more competitive market

structure.

The bottom line is that when companies have a monopoly, prices are too

high and production is too low. There's an inefficient ………………………. .

In addition, the tactics used to establish monopoly power, such as

…………….. or thwarting potential entrants, can also cause considerable harm to

households who own the businesses that are forced to close their doors.

For instance, a firm with deep pockets can ……………. and absorb losses

until competitors can no longer survive. Then, once the competition is eliminated,

the surviving firm can raise prices high enough to more than cover the losses it

took while establishing its now-dominant market position (under antitrust

regulation, such tactics are prohibited).

The problems with monopolies go beyond the economic effects. Many

large, economically powerful companies also have considerable political

influence and the ability to "capture" the political and regulatory process. This

allows a powerful firm to tilt the legal and regulatory processes against any

potential threat to its market power, and to bring about changes that further

………………….. it earns.

It can get health and safety regulations removed, have licensing

requirements imposed that make it harder for new firms …………. , avoid state

sales taxes for online retailers, or get invited to speak at congressional hearings on

matters such as immigration and corporate taxation.

When an industry has just a few dominant firms, or a single dominant

firm, market power can be significant. But when the number of companies is

sufficiently large, the power of any one is considerably muted.

However, a small degree of monopoly power may even be desirable.

Whenever there is variety, and hence some amount of brand loyalty, firms

will have some market power, i.e. some ability to raise prices without driving

customers away (when products are identical, as required for textbook

………………, an increase in the price above a nearby competitor's price would

result in the loss of all customers -- why pay more for the exact same product?).

So, the cost of variety is that firms will have some degree of pricing power.

241

But the benefit is …………….. to choose from. Consumers certainly

seem to have a taste for variety, so this benefit must be weighed against the

market power that companies get from ………………….. As long as the number

of firms in an industry is relatively large, making a market "monopolistically

competitive," it's likely that the benefits of variety will outweigh the cost.

However, when the number of firms is smaller so that …………….. (a

few dominant firms) or monopolies (a single dominant firm) appear, the

likelihood that the benefits outweigh the costs is substantially diminished and

……………… is needed.

One case where scrutiny is certainly needed is one economists call

"…………………." In these cases, companies do not have to act strategically to

eliminate the competition. It happens naturally, often because of

…………………. that are still in effect even after the entirety of market demand

has been satisfied.

Because the monopoly power cannot be prevented by regulating the firm's

strategic behavior, and because breaking it up would often result in higher costs

and hence higher prices for consumers, the best course of action is to regulate the

prices and quantities such a company can charge.

A firm's size and …………… do not necessarily indicate that it is

exploiting its market power or that substantial market share even exists. A

dominant firm in an industry could, for example, face substantial new entrants

and competition if it attempts to raise its prices and exploit its dominant position

in the marketplace.

But firms that exploit their market power or undertake strategic behaviors

that make it more difficult for other companies to compete should come under the

careful watch and, when appropriate, receive …………… from regulators

charged with promoting the public interest.CBS News, September 24th, 2014


regulatory authorities – органы регулирования, контроля и надзора

to reject – отклонять,отвергать

242

antitrust case – дело по обвинению в нарушении антимонопольного

законодательства

to scrutinise – тщательно изучать

scrutiny – внимательное изучение, тщательное расследование, анализ

to settle a case –урегулировать дело; решить спорный вопрос

the bottom line – итог, результат, суть

to thwart – мешать, затруднять, препятствовать

to amass power – сосредоточить власть

pricing power – способность влиять на цены

to outweigh – перевешивать, быть более важным

to charge a price – назначить цену

syn. to quote a price

to absorb losses – списывать убытки

to cover the losses – покрыть/компенсировать убытки

to tilt – склонить, накренить

to diminish – уменьшать, ослаблять

to break up monopoly power – разрушить/ликвидировать власть монополии

3. Summarise the author's arguments against market concentration. Are there any

benefits? Can the process be prevented? What solution does the author advocate?



Emerging market multinationals eclipse competitorsEmerging multinationals from developing countries grew three times

faster than their mature market counterparts in the five years to the end of 2014 as

a burgeoning middle class consumer helped to boost earnings, according to a

study by BCG, a consultancy.

The total revenues of the top 100 companies – both from the developing

and developed world in 63 business sectors worldwide was $43tn in 2014, up

from $33tn in 2009. The contribution to these total earnings supplied by emerging

243

market multinationals rose to 25 per cent in 2014, up from 18 per cent in 2009,

according to data compiled by BCG.

The increasing contribution to the total provided by emerging market

companies derived from a compound annual growth rate of 13 per cent over the

2009-2014 period, three times faster than the 4 per cent recorded by developed

world multinationals, BCG said in a report published on Monday.

The BCG report recognised the headwinds encountered by several

emerging markets as GDP growth slows, commodity prices languish and capital

rushes out of some emerging economies.

However, BCG said, key advantages such as buoyant spending from

middle class consumers in many developing countries has kept the outlook

broadly positive.

“We are bullish on the long-term growth of many of these markets and

even more so on the homegrown companies they have produced,” the BCG report

said. “Global challengers know how to win in volatile and uncertain times.”

Indeed, the easing growth trajectory in some emerging markets is forcing

several emerging multinationals to compete ever more fiercely for international

earnings, ramping up competition with established multinationals.

In terms of country of origin, China and India have led the way in

nurturing a new generation of challengers to traditional multinationals. Out of 100

emerging market “challenger” companies identified by BCG, 28 come from

China and 16 from India, while a further 23 originate from countries in Latin

America.

The speed of emergence in some cases is startling. Xiaomi, a Chinese

smartphone maker, was founded as recently as 2010 but already sells more

phones in China than Apple and is expanding aggressively into India and

Indonesia.

Airlines in emerging markets have experienced a tripling in their revenues

between 2005 and 2014, according to BCG. China Eastern Airlines has ridden the

rise of the global Chinese traveller to expand into Europe and the US and offers

flights throughout Southeast Asia. Pegasus Airlines, the largest low-cost airline in

Turkey, has also been growing more quickly than mature market counterparts.

244

Other companies in sectors such as food and pharmaceuticals are

benefiting from a rapidly growing middle class that is generally young and

optimistic in nature.

BCG estimates that pharmaceutical companies based in emerging markets

have managed to boost their revenues to a total of $80bn in 2014 from $8bn in

2005. Sun Pharmaceuticals and Lupin Pharmaceuticals, both of India, have

completed acquisitions to round out their portfolios.

Alicorp and Gloria, both of Peru, are two consumer goods companies that

are expanding their footprint throughout Latin America, while Universal Robina

is one of the largest food and beverage companies in the Philippines that has

expanded into Southeast Asia and in 2014 bought Griffin’s Foods, New Zealand’s

largest snack maker. Such companies have helped swell the ranks of the “global

challengers”, or multinationals that have home bases in emerging markets.

The superior earnings performance posted by this cohort of emerging

“challengers” has been reflected in stock prices over the years, even in spite of the

downturn that stock markets in the developing world suffered during 2015.


to eclipse – затмевать, заслонять, оттеснить

mature – зрелый, развитый, исчерпавший потенциал роста

counterpart – коллега, аналог, противник, конкурент

to derive from – проистекать, происходить, вытекать

compound – совокупный, составной

headwind – встречный ветер, препятствие, проблема, сдерживающий фактор

buoyant – оживленный, активный, динамичный

outlook – прогноз, перспектива

bullish – имеющий тенденцию к повышению

to be bullish – быть оптимистично настроенным

to ramp up – увеличивать, наращивать

to nurture – выращивать, лелеять, способствовать развитию

to originate from – происходить из, брать начало

to expand one's footprint – зону влияния

to swell the ranks – пополнить ряды

245


1. How do emerging market multinationals compare with their counterparts from the

developed world in terms of revenues / economic growth?

2. What, according to a BCG study, accounts for the recent robust growth of emerging

market multinationals?

3. What are the main challenges faced by emerging markets after the crisis?

4. What countries do most challengers originate from?

5. What industries and sectors are the challengers most successful in?

6. What, according to the author, is the evidence of the emerging challengers’ growing

footprint?



1. While reading the article find the words that match the following definitions.

net income before federal income taxes are subtracted

a business or person that sells goods to the consumer, as opposed to suppliers who normally sell their goods to another business

a product manufactured specifically for a retailer and bearing the retailer’s name

a pushcart used by street vendors, especially by costermongers.

the amount of an asset or resource that exceeds the portion that is utilized

a set of economic policies a government undertakes to control public sector debt

produced and distributed in large quantities and intended to appeal to the widest range of consumers

246

careful and detailed examination of something on order to get information about it

prolonged public disagreement or heated discussion

all the real estate investment of a person or company

power and influence over other people and events

a violent disturbance of / by a crowd

Tesco: How one supermarket came to dominateThere's a famous stat - that at its peak one pound in every seven spent in

the UK went into a Tesco till.

It's the UK's biggest retailer by sales and also the nation's biggest private

employer, with more than 330,000 staff working in 3,146 stores. Pre-tax profits

are in the billions and its achievements and failures make national, often

international, news.

It's the world's third largest supermarket group, with stores in 12 countries.

More than 27 million people outside the UK have a Tesco Clubcard.

It's part of the fabric of daily life. Nearly everyone has an opinion on it,

often vehement.

It all started in 1919 with Jack Cohen. The 21-year-old left the Royal

Flying Corps at the end of World War I and used his demob money to buy surplus

food from the Army and sell it from a barrow in Hackney. His first stock was fish

paste and golden syrup.

By 1924 he had started selling his first own-brand product, tea. Looking

for a name he took the first three letters of his supplier, TE Stockwell, and

combined them with the first two letters of his own. Tesco was born and the first

shop was opened in 1929 in north London.

Cohen believed in the business model "stack 'em high, sell 'em low". It

earned him the nickname "slasher Jack".

247

"Cohen built his business when there was still a lot of austerity around,"

says Phil Lyon, a retail historian at Queen Margaret University Edinburgh. "To

drive business development of that kind at that time was quite remarkable. He

totally understood what worked for the mass market."

In the recession at the start of the 1990s Tesco quickly realised shoppers

wanted their money to go further.

The company launched its Value range in 1993. It went on to become the

second biggest grocery brand in the UK at its peak and the brand alone generated

an estimated annual turnover of more than £1bn. By 1996 Tesco's sales in the UK

had jumped ahead of Sainsbury's.

The size of the company's orders allowed them to negotiate bargains with

even the biggest manufacturers.

As this power grew the relationship between all the big supermarkets and

their suppliers came under scrutiny. In 2000 the Competition Commission carried

out a major inquiry into the issue which lead to the creation of a Code of Practice.

It's an issue that rumbles on, with dairy farmers protesting last year about the low

price some supermarkets pay for milk.

Tesco says it negotiates the best prices on behalf of customers but that it is

also fair and that suppliers stay with the company. It says it pays one of the

highest prices for milk out of all the main supermarkets.

But what really took Tesco to the top was watching customer behaviour. It

was the first British supermarket to do so and it was a game-changing move.

The introduction of the Tesco Clubcard is the single most significant

factor in the success of the company, says Sir Terry Leahy, the supermarket's

chief executive from 1997 to 2011.

The idea of a loyalty scheme was not new. The savvy Cohen had been an

early adopter of Green Shield Stamps in 1963 and successfully exploited the

incentive scheme to his advantage. But the Clubcard was a loyalty scheme for the

age of computerised research.

Tesco collected raw data on what people were buying and turned it into

profitable information. It was also able to offer personalised discounts and

rewards. Rolled out nationally in 1995, the card was an instant success. One year

later Tesco became the UK's top supermarket.

248

The scheme fundamentally changed the way all supermarkets did business

and typifies Tesco's success, say business analysts.

"It became such a success story because it was aggressive at adapting to

consumer trends, diversifying and innovating," says Gray. "It took a hell of risks

in the 1990s but they paid off."

And diversify it did. Tesco is now a bank, it offers insurance, credit cards

and loans. You can buy a flat-screen TV, a mobile phone and clothes alongside

bread, milk and butter. It runs education programmes for staff and keep fit

classes.

Even its critics have some grudging regard for the company.

Tesco went on to cement its dominance by expanding massively the

source of much of the controversy. Again it had its roots in Cohen's ideas. He

always believed in owning the shops he did business from. Between 1955 and

1960 alone he bought more than 500 new shops.

But it was during the recession of the 1990s that it really grew. Big sites

were acquired for a new generation of out-of-town superstores. Again it spotted

the market before its competitors. The same happened when it headed back into

towns and cities and started opening smaller convenience stores the Tesco

Metro in 1994.

Its property portfolio was huge and included land it didn't develop. Critics

noted that if Tesco owned it no other supermarket could build on it, leaving them

struggling.

But while the new developments were initially seen as progress, they

came to divide opinion. Supermarkets as a whole have been criticised for creating

"clone towns". National organisations like the Association of Convenience Stores

(ACS) have expressed concern about the impact their "aggressive expansion" has

had on small businesses.

In 2006 the Office of Fair Trading referred the market to the Competition

Commission for a second time. It concluded that in many respects UK grocery

retailers were "delivering a good deal for consumers" but action was "needed to

improve competition in local markets".

Because of its huge expansion Tesco has often been singled out for more

vehement criticism. The National Consumer Council has called it the Marmite of

249

British business, appearing both among the most trusted and the most distrusted

companies in consumer surveys.

"It's because of its sheer size and clout," says Simms. "It's incredibly hard

for smaller operators to compete against."

Wrangles over planning permission for developments often find Tesco in

the news.

Smaller disputes are pitched as David and Goliath battles. Just last week

campaigners in Sherborne, Dorset, claimed victory when the supermarket decided

not to open a store in the town.

But Tesco said planning issues and not protest influenced the decision.

In 2011 a raid on a squat occupied by opponents of a newly opened Tesco

store in Bristol left eight police officers and several protesters injured. It resulted

in rioting during which the shop was attacked.

On the flip side there is a group campaigning for new Tesco stores. Earlier

this year in Felixstowe people staged a rally with placards that read: "Yes to

Tesco". They said they didn't want to lose the chance of the supermarket opening

a superstore in the area as it would give local people "real choice".

But despite its dominance, times have got tougher for Tesco. This year its

profits fell for the first time in 20 years. It was said to have taken its "eye off the

ball" in the lucrative UK market and focused on foreign markets too much.

What does it mean for the company? Based on history, the chain will

probably adapt and change, say business analysts.

Maybe it should ask itself what Jack Cohen would do.BBC News Magazine, September 9th, 2013

NOTES

1. Value range in the United Kingdom, it is common practice for retailers to have their own value brand in an effort to compete on price. Tesco's value brand was originally launched in 1993 as Tesco Value, with distinctive blue-and-white striped packaging The original Tesco Value brand had been launched in the midst of a supermarket price war, and targeted a low price point, with cans of beans costing 3p a can and loaves of bread for 7p.

2. Code of Practice a set of written regulations issued by a professional association or an official body that explains how people working in a particular profession should behave – Кодекс профессиональной этики

250

3. Green Shield Stamps a British sales promotion scheme that rewarded shoppers with stamps that could be used to buy gifts from a catalogue or from any affiliated retailer. The scheme was introduced in 1958 by Richard Tompkins.

4. The National Association of Convenience Stores (NACS), founded on August 14, 1961, is an international trade association representing more than 2,100 retail and 1,600 supplier company members. NACS member companies do business in nearly 50 countries worldwide, with the majority of members based in the United States. The association serves the convenience and fuel retailing industry by providing industry knowledge, connections and advocacy to ensure the competitive viability of its members' businesses. NACS defines a convenience store as a retail business that provides the public with a convenient location to quickly purchase a wide variety of consumable products and services, general food and gasoline.

5. Marmite is something causing a strong feeling of either liking or disliking.6. The story of David and Goliath can be found in First Samuel 17 of the Bible. It tells

the story of the giant Goliath, a nine-foot soldier from Gath, who boasted he could beat any individual soldier in the Israelite army. Nobody in the army dared to take him on except David, a shepherd boy who believed strongly in God. "The Lord who delivered me from the paw of the lion and from the paw of the bear, will deliver me from the hand of this Philistine," David said. King Saul wanted to arm David with a sword and armor, but David refused, saying his strength came from God, not from weapons. All he brought to the battlefield was a sling and a stone. Of course, David's expertly flung stone nailed Goliath in the head and killed him.


pre-tax profit – прибыль до вычета налогов

own-brand product – товар, продаваемый под собственной торговой маркой

розничной сети

value brand – бюджетная торговая марка

bargain – выгодная сделка; удачная покупка

austerity – режим жесткой экономии

to carry out inquiry (into smth) – провести расследование

to pay off – окупиться

to diversify – разнообразить, варьировать, диверсифицировать, вкладывать

капитал в различные предприятия

controversy – спор, дискуссия, полемика, разногласия

to acquire – приобретать

acquisition – приобретение

mergers and acquisitions – слияния и поглощения

to spot – обнаружить, определить, выявить

wrangles – ожесточенные споры, прения

clout – влияние, власть

251

riot – мятеж , волнения, беспорядки

lucrative – прибыльный, высокодоходный, выгодный

Exercise № 4

Explain or paraphrase the following:

to make the news

part of the fabric of daily life

the business model "stack 'em high, sell 'em low"

to negotiate bargains

to come under scrutiny

a game-changing move

to cement one’s dominance

an early adopter of Green Shield Stamps

David and Goliath battle

to have roots in smth

to take one’s eye off the ball

clone towns

on the flip side

Exercise № 5



1. In 2013 Tesco was the UK grocery market leader.

2. Tesco is now doing business in its UK home turf only.

3. Tesco started life before World War I when Jack Cohen set up his flagship sea food

store in the East End of London.

4. Jack Cohen used his personal savings as a primary source of funding for his first

business.

5. The Tesco brand first appeared five years later in 1924 when Cohen bought a

shipment of tea from a Mr T.E Stockwell.

6. Cohen based his business on a mass customization model.

252

7. Tesco was one of the first major retailers to understand the power of loyalty cards –

not just in boosting sales through discounts but in using vast amounts of customer

data to help tailor individual shopping experiences.

8. Tesco was at the forefront of online shopping, understanding the importance of home

delivery in the internet age.

9. Tesco was a pioneer in differentiating own-label products with its Value range.

10. Tesco became the biggest supermarket chain in Great Britain in 1996.

11. Tesco today sticks to its initial specialization as a grocery store.

12. Farmers routinely accuse Tesco of pressing suppliers into driving down milk prices.

13. In the 1990s Tesco continued to tighten its grip on the UK with more store openings

and an aggressive marketing campaign in an attempt to overtake competitors.

14. In a cutthroat environment and increasing competition for sites Tesco had to turn its

sights on corner shops.

15. According to customers’ surveys Tesco supermarket chain has lost confidence in the

United Kingdom.

2. Make up a list of strategies that ensured Tesco’s success in the UK market.

VOCABULARY PRACTICE

Exercise № 6

Fill in the blanks with appropriate prepositions.

1. ………. a competitive marketplace where businesses compete …………. customers;

customer satisfaction is seen as a key differentiator.

2. Competitive advantages provide an edge …………. rivals and an ability to generate

greater value ………….. a firm and its shareholders.

3. Germany's chancellor made a rare public intervention in the debate about money

printing by the European Central Bank on Monday, warning it was no substitute

…………. economic reforms in the euro zone.

4. The dominant firms …………… an oligopolistic market often have large factories,

huge advertising budgets, patented products, and control …………… raw materials.

These barriers ……………..entry make it very hard for new or smaller firms to

compete ……………. them.

253

5. Hong Kong, with its natural resource limitations, can only compete …………….

quality, not quantity.

6. Yet India's textile industry could not compete ……………. Britain's, even though

British wages were five times higher.

7. However, production costs are often too high for bio-fuels to compete ………………

fossil fuels.

8. Businesses who succeed ……………….. these cut-throat environments are the ones

that make customer satisfaction a key element of their business strategy.

9. Barriers ……………. entry are economic or technical factors that prevent or make it

difficult for new firms to break ……………. the market.

10. Their business deals ……………… new and used books.

11. The leader has the largest market share and usually leads the other firms ……………

price changes, new-product introductions, distribution coverage, and promotion

spending

12. Market power enables oligopolies to charge prices that are well …………. their

marginal costs of production.

13. Competing …………..price is a race to the bottom: no matter what product or service

you offer, there will always be someone else who figures out how to offer it for even

cheaper.

14. The government is formulating legislation to deal ………….. a new phenomenon

known as identity theft.

15. While rivals jockey …………… market share, Apple bathes ……………… profits.

16. In the increasingly crowded race to put self-driving cars on the road, Google is losing

…….... ………… competitors.

17. Apple increased global iPhone shipments by 13% last year, but its growth rate is

lagging ………………. competitors in the smartphone space arguably the

company's most important market.

18. Global telecommunications industry sees rise in capital spending as companies try to

keep pace …………………… disruptive competitors.

Exercise № 7

Gain(s) – 1) прирост, увеличение;2) прибыль, доходы;3) выгода

productivity gains – рост производительности

254


1. Energy companies made big gains Wednesday as the price of oil continued to

rebound.

2. The yen, which strengthened sharply after the British referendum, lost some gains.

3. The economy shows signs of accelerating this quarter as job gains and low borrowing

costs are helping propel household demand.

4. Digital technology is another path to productivity gains.

5. The rise in house prices is outstripping wage gains.

6. The gains from China’s remarkable growth of the past 35 years have not been evenly

shared.

7. But economists believe continued steady gains in hiring will boost spending in

coming months and help growth to accelerate.

8. For many company funds, financial gain is less important than finding the next big

ideas.

9. In some cases, pay was set up to motivate bankers to seek short-term gains even

when their actions led to losses over longer term.

10. The chain has reported five straight quarters of sales growth, but pace of gains has

been modest.

TRANSLATION SKILLS

I. МОДАЛЬНЫЕ ГЛАГОЛЫ

CAN, MAY, MUST

Помимо своих основных значений, эти модальные глаголы могут

выражать предположение, основанное на той или иной степени

уверенности. Самая сильная степень уверенности выражается модальным

глаголом can, послабее must, и самая слабая степень уверенности

передается глаголом may.

Can – 1. Основные значения: а) способность или умение совершить действие;

б) возможность совершить действие; в) разрешение или запрещение. 2. В значении

предположения can переводится словами «возможно», «может быть». Его

отрицательная и вопросительная формы выражают сомнение или удивление и

переводятся словами «не может быть, чтобы»; «неужели» соответственно.

255

A closer look at the figures suggests that the shift in economic power from West

to East can be exaggerated.

Более внимательный анализ данных дает основание предположить, что

смещение центра экономического влияния с Запада на Восток, возможно,

преувеличено.

Could – передает меньшую степень уверенности в предположении или сомнении.

May – 1. Основные значения: а) возможность совершить действие; в) разрешение

или запрещение. 2. В значении предположения may переводится словами

«возможно», «может быть».

The dollar continued to rise for the first three weeks of the year but then the tide

turned: since January 20th, the currency has fallen by 3.8%. The main reason may

be a perceived shift in Fed policy.

На протяжении первых трех недель этого года курс доллара продолжал

расти, но затем в этой тенденции произошел перелом, и с 20 января курс

доллара уже снизился на 3,8%. Возможно, основной причиной стало

ожидаемое изменение политики ФРС.

Might – указывает на меньшую уверенность в предположении.

Кроме указанных значений модальные глаголы could и might могут

выступать в качестве вспомогательных глаголов в сослагательном

наклонении.

Government spending and investment could boost domestic demand, but

governments in the euro zone remain committed to a course of austerity.

Государственные расходы и инвестиции могли бы стимулировать рост

внутреннего спроса, но правительства стран еврозоны по-прежнему

привержены курсу на ограничение бюджетных расходов.

Модальные глаголы can, could, may и might могут употребляться в

сочетании со словом well, означающим «вполне», «с успехом».

A price of $50 a barrel may well be sustainable.

Цена нефти в 50 долларов за баррель вполне может быть устойчивой.

Must 1. Основное значение: долженствование. 2. В значении предположения

must переводится словами «должно быть», «вероятно», «по всей вероятности».

Shareholders must have voted against the deal.

256

По всей вероятности, акционеры проголосовали против этой сделки.

В значении предположения со всеми этими модальными глаголами

могут употребляться различные формы инфинитива. Perfect Infinitive

относит действие к прошедшему времени, а Continuous Infinitive – к

текущему моменту.

The improvement in imports suggested lackluster Chinese domestic demand

might be recovering.

Такое увеличение объемов импорта говорит о том, что вялый внутренний

спрос в Китае, возможно, повышается.

Japan may have brought in record-high coal imports last year, but its

consumption is minuscule compared to China.

Возможно, в прошлом году Япония и завезла в страну рекордно высокий

объем импортного угля, но его потребление ничтожно мало по сравнению с

потреблением Китая.

Exercise № 8


1. The survey results indicate the effect of the Fed’s recent interest rate increase may be

falling differently across the economy.

2. If most currencies are “too” cheap against the dollar, it follows that the dollar itself

must be too expensive.

3. Christmas could have been an unhappy one last year if presents were ordered online.

Many customers were still waiting for gifts to arrive long after the holidays had

ended.

4. US central bank officials think they may need to accelerate interest rate hikes if a

faster-growing economy leads to lower than expected unemployment.

5. With the global economy looking shaky, it must have seemed unwise to tighten the

monetary policy screws further.

6. Analysis carried out in the report indicates that international trade in counterfeit and

pirated products could have been up to $200 billion last year. This total doesn’t

include the significant volume of pirated digital products being distributed via the

Internet.

257

7. US inflation and interest rates may be moving higher again, but from historically low

levels.

8. Since the recession ended, first-quarter GDP growth has frequently come in weak,

followed by a stronger second year. This year may have been no exception.

9. Moving from Delta, an airline, to Red Hat, a technology company, must have been a

culture shock for him.

10. Economists estimate severe weather could have chopped off as much as 1.4

percentage points from GDP growth. The government, however, gave no details on

the impact of the weather.

11. China’s trade data due later on Wednesday may show export growth at multi-year

highs thanks to recovering global demand.

12. The Fed raised rates anyway: Janet Yellen, its chair, argued that the fizzing labour

market meant inflation must be on the way.

13. The government is worried that the economy may slow too fast, and that this could

cause a destabilising surge in unemployment.

14. Such acquisitions might not lead to big changes that customers would notice on

supermarket shelves.

Exercise № 9

Should – может 1) выражать долженствование в плане совета или пожелания

(переводится словами «должен», «следует», «следовало бы», «нужно», «надо бы»,

«надо было»); 2) вводить придаточное условия (переводится словами «если», «если

же», «если все же»); 3) употребляться в придаточных предложениях с

сослагательным наклонением, стоящих после глаголов recommend, suggest, insist и

т.п. и словосочетаний it is important (desirable, strange, natural, etc.), при этом

should несет чисто грамматическую нагрузку и на русский язык никак не

переводится; 4) выражать предположение с большой степенью уверенности

(переводится словами «вероятно», «должно быть», «по всей вероятности»,

«скорее всего»).


1. Last month the fund suggested that Japan should take measures to prod companies

into paying higher wages.

258

2. If the investments are any good, they should generate a regular stream of inflows, in

the form of profits from the companies acquired.

3. Defeating deflation – should the scourge materialize – will be hard enough as it is.

4. Growth in emerging Asia is likely to remain strong and it should give governments

the confidence to let their currencies rise, which would further boost the relative size

of their economies in dollar terms.

5. Should a strong dollar and rising oil prices persist, traders say that would be a driver

for higher inflation.

6. With the US trade deficit hitting a record $66.1bn in September, the dollar should be

vulnerable. Instead it has been pushing back the euro and the yen, gaining close to 14

per cent against both so far this year.

7. As assets were rising over the last several decades, the fee should have fallen because

of the economies of scale.

8. Should higher inflation convince the Fed that more interest-rate hikes are needed

sooner, many investors in emerging markets could be caught off guard.

9. Inflation hit 2 percent in December, and ran above the central bank’s target and

expectations in January and should continue to do so.

10. Devaluation will further push up inflation but should in time relieve the shortage of

foreign currency that has hampered Egyptian business.

Exercise № 10

Would – может выражать 1) повторяющееся действие в прошлом (переводится

глаголом в прошедшем времени); 2) предположение (переводится словами

«вероятно», «очевидно», «скорее всего», «наверное»); 3) сослагательное

наклонение; 4) (отрицательная форма) «никак не», «не хотел(а)».


1. For all the taxpayers who would benefit, the tax cuts would save nearly $37 billion in

a single year by 2026.

2. While the automakers would all prefer more lenient targets than the 2025 ones, they

differ on the specifics.

3. That, in turn, may attract new capital and help bring about economies of scale that

would further reduce the prices.

259

4. For more than 40 years, Winston and telecommunications giants would spend, spend,

spend to plaster their brand on every nook of the track.

5. If the US imposes taxes on Chinese and Mexican imports, those countries would

impose taxes of their own on US exports.

6. Critics say the measures would shrink competition in the agricultural market, drive

prices higher for farmers and consumers, and escalate damage to the environment.

7. The central bank’s annual inflation target is 2%, which would be achieved in 2018,

according to the forecast Fed officials released Wednesday.

8. Ford would not say when it thinks its Russian operations will earn money.

9. If interest rates had been consistently too high, capital expenditure would probably

have stalled.

10. More middle-class consumers will benefit, but there is concern lower-income people

would be disadvantaged.


Exercise № 11

Even as – как раз тогда, когда; тогда, когда; даже при

Even though - хотя

Even if – даже если

Even so – несмотря на, тем не менее, все же


1. The economy remains sure-footed even as job growth has slowed, construction

spending has weakened and corporate profits have declined.

2. Small cars remain a huge market for dealers even though sales have fallen.

3. The second quarter GDP is expected to be somewhat better, but even so, this has not

been an economy to celebrate.

4. Prices have fallen because production remains high even as slower economic growth,

particularly in China, reduces consumption.

5. Even though the reform made it easier for workers to change jobs, the fraction of

workers renewing their contracts increased.

260

6. China, which already produces more than half the world’s aluminum, is expanding

capacity even as its economy decelerates.

7. This year, Samsung has to work to replace some of the microchip business it had with

Apple, which it lost when Apple shifted orders to its Taiwan semiconductor rival

TSMC. Even so analysts expect Samsung, which has leading technology in sectors

like screens and memory chips, to perform better whenever conditions improve.

8. Even as jobs in the energy industry and mining have been slashed amid weak

commodity prices, white-collar employment has been surging.

9. Even though US stock markets were almost back to their all-time high earlier this

month, corporate profits have been falling.

10. Even if the Fed raises its benchmark short-term rate three times this year, its key rate

would remain below 1.5 percent.

Exercise № 12

Well + глагол – хорошо, вполне

Well + модальный глагол – вполне, с успехом

Well + наречие – значительно, очень, довольно

Well after – значительно позже

Well before – задолго до

Well above/over/ahead – намного больше, намного превышающее

Well below/beneath – намного меньше, намного ниже


1. So sterling could well head back towards 31-year lows this morning.

2. The British pound plummeted some 9%, reaching levels not seen since 1985 – well

below the value at the worst of the 2008 financial crisis.

3. Negative rates may well be designed to weaken the exchange rate or, at the very

least, to stop a currency from strengthening.

4. Goldman made an estimated profit of well over $200m.

5. In February, Wal-Mart said global e-commerce rose 8% in the fourth quarter, well

below the 20% pace of growth just a few years ago.

261

6. The apparel maker reported sales and earnings that were well ahead of analysts’

forecasts.

7. WTO says international trade will remain sluggish this year, growing 2.8 percent,

well below the average of 5% since 1990.

8. The report warned that the growth rate experienced even as recently as 2014, may

well not come roaring back.

9. For the 12 months ended April 30, average hourly earnings have increased 2.5%, well

above the low inflation rate.

10. Mortgage rates have since moderated but are still well beneath what economists have

projected.


TEXT 1

Translate the article into English orally.

UK manufacturers fear lagging behind global competitionTwo thirds of UK manufacturers developed new products in the last three

years as firms feared falling behind competitors, a survey suggests.

Companies most at risk from economic challenges, particularly those in

oil and gas supply chains, were increasingly forced to diversify away from their

troubled sectors, said manufacturers organisation EEF, which surveyed 273

company directors.

However, firms reported mixed success, adding to fears the UK is lagging

behind other developed nations when it comes to innovation. Almost 30% said

the amount of money they invested to create new products was not enough to

keep pace with competitors.

Separate data from the Office for National Statistics suggests the UK’s

R&D spend is only 1.1% of GDP, compared to 2.02% in Germany.

“Manufacturers are finding that the results they achieve do not always

match their ambition. Shortages of expertise, equipment and finance are holding

them back,” said Lee Hopley, EEF’s chief economist. “Every additional pound

invested in developing the products and services of tomorrow can help get the

UK closer to its goal of having a more productive economy.”

262

Companies in the oil and gas sector were hit particularly hard last year by

a slump in oil prices, which saw a barrel of Brent Crude drop from $110 to $48 in

just six months.

This led to a fall in demand for new machinery, hitting companies that

make electrical and mechanical equipment, said the EEF. Some were forced to

reduce prices, which squeezed the business at a time when the strong sterling was

also reducing profit margins.

A third of respondents said boosting exports is a priority for their

company, as growth potential in the UK remains flat. The Bank of England

expects the UK economy to grow 2.8% this year, although this is expected to

moderate to 2.6% in 2016. Construction output recently posted a 0.5% quarterly

decline, while services output, which accounts for around three quarters of UK

output, grew by 0.7%.The Telegraph, August 24th 2015


to lag/fall behind (competitors) – отстать от конкурентов

to be at risk – подвергаться риску

expertise – профессиональные знания, наработки

to squeeze – создавать проблемы, ставить в сложное положение, вытеснять

TEXT 2


Food producer insolvency triples amid supermarket price warsThe number of food producers that have gone bust have tripled over the

last five years as a result of the supermarket price wars, a report said.

A survey by top 10 accountancy firm Moore Stephens said 162 food

production companies fell into insolvency last year, more than treble the 48

insolvencies in the sector in 2010 and 11% more than just a year ago.

It blames the supermarket sector's ongoing price war, sparked by the

growth on discounters Aldi and Lidl, which has seen major players such as Tesco

and Asda cut prices to protect market shares.

263

Moore Stephens said food suppliers are "bearing the brunt of the on-going

supermarket 'price war' as their profit margins are squeezed by big supermarket

chains trying to offer consumers the lowest prices possible whilst maintaining

their own profit margins".

It added that the squeeze on prices is set to continue as discounters gear up

plans for expansion.

Earlier this year Aldi said it plans to open 80 new stores this year, creating

5,000 new jobs. The German-owned supermarket runs over 600 stores in the UK,

and aims to boost this to 1,000 by 2022.

Duncan Swift, partner and head of food advisory at Moore Stephens, said:

"With the likes of Aldi and Lidl announcing further plans for expansion,

competition between budget and traditional supermarkets is only going to heat

up."

He added: "The extreme buying and retail pricing strategies of big

retailers mean smaller food producers are struggling to stay afloat.

"Food supplier insolvencies are still rising as small producers continue to

be the major casualties in the supermarket price war."

Mr Swift added that with over 70% of UK food suppliers produce "going across the

buying desks of the UK's top 10 supermarkets, the buyer power of supermarkets remains

enormous".The Independent, April 11th, 2016


to go bust – обанкротиться, стать банкротом

insolvency – неплатежеспособность

to spark a price war – развязать ценовую войну

profit margin – маржа прибыли (показатель прибыли в процентах к объему

реализованной продукции)

squeeze on prices – давление на цены, снижение цен

to stay afloat – устоять (в конкурентной борьбе);остаться на плаву

casualty – жертва, потеря, урон

264

TEXT 3


Asos Closes China Business under Weight of Alibaba Competition Asos Plc has pulled the plug on its Chinese venture after failing to lure

customers away from Alibaba Group Holding Ltd.

The British online fashion retailer will close its Chinese distribution

center, Shanghai office and local website after failing to turn a profit since

beginning operations in the country in 2013, the company said in a statement

Thursday. The retreat will involve a charge of as much as 10 million pounds ($14

million).

“We’ve just not made the headway that we had hoped for,” Chief

Executive Officer Nick Beighton said in a phone interview. “The Chinese market

is unlike any other we operate in. Getting eyeballs on our products has proved

very difficult.

Asos isn’t the only online fashion retailer to find the going tough in the

world’s second-largest economy, where Alibaba dominates the e-commerce

market with a 75 percent share. Meilishuo.com, a fashion retailer backed by

Tencent Holdings Ltd., is merging with rival Mogujie.com to gain scale. China’s

e-commerce business is projected to expand 20 percent to 3.6 trillion yuan ($557

billion) next year, according to Shanghai-based Internet consultant IResearch.

Asos’s move reflects “better allocation of capital towards better

established opportunities,” Simon Bowler, an analyst at Exane BNP Paribas, said

by e-mail. “The speed at which new management have made this decision should

also be welcomed.”

In its latest financial year, Asos incurred a loss of 5.2 million pounds

related to its Chinese operations. The company now plans to focus investment

into its core territories of the U.K., Europe and the U.S.Bloomberg, April 7th, 2016


to pull the plug - поставить крест; отказаться

to lure away – сманить, переманить

to make the headway – добиться прогресса; двигаться вперед

265

to turn a profit – приносить прибыль

to get eyeballs – привлечь внимание

to incur a loss – понести убытки

TEXT 4


iPhone SE sales may be cannibalizing othersSAN FRANCISCO When Apple decided to go small – in size and price

– with the iPhone SE, it was a grab for first-time buyers in markets such as China

and India.

The strategy, at first blush, appears to have paid off big: iPhone SE sales

could hit 30 million units in their initial year of availability, compared with a

forecast of 10 million to 20 million, according to a report Monday from market

researcher Nomura, one of the first on the 4-inch, $399 phone since it debuted

March 31.

But the success of the SE may be at the expense of iPhone 6S.

“The SE strength and overall demand weakness imply the SE is stealing

6S demand in developed markets," Nomura analyst Jeffrey Kvaal said in the

report, based on research of suppliers. "We believe the SE is reaching its intended

market, first-time buyers in China."

Roughly half of iPhone SE sales are from the U.S. and China, the report

said, which bodes well for Apple's overseas strategy.

The report underscores general softness in the smartphone market and the

necessity to focus on the low end to corral nascent users, said Crawford Del Prete,

chief research officer at market researcher IDC.

Worldwide smartphone unit shipments slipped 3%, to 335 million, in the

first three months of 2016, the first such year-over-year decline, according to

Strategy Analytics, which tracks smartphone sales.

"There is too much competition in what is becoming a churn market. We

have a (market) share war in the U.S." - Del Prete said.

The bigger question is whether iPhone 7 – Apple's latest entry in the

market, expected in September – will reverse the first sales decline in iPhone's

266

10-year history. Sales plunged 16% to 51.2 million in the recently completed

fiscal second quarter.The USA TODAY, May 24th, 2016


to cannibalize – резко снижать объем продаж одного товара (вплоть до

вытеснения с рынка) в результате представления на рынок другого

аналогичного продукта

a grab - захват

to pay off – окупиться

at first blush – на первый взгляд; поначалу; по первому впечатлению

at the expense of – за чей-то счет

intended market – целевой рынок сбыта

to bode well/ill – служить плохим/хорошим предзнаменованием; сулить

плохое/хорошее

low-end of the market – низкоценовой сегмент рынка

nascent – появляющийся, нарождающийся

churn – отток клиентов

TEXT 5


GoPro faces tough competition as consumers spend less on camerasWith demand from action junkies drying up, GoPro Inc has a mountain to

climb as it vies with the iPhone and other sharpshooting smartphones to win over

thrifty customers in the mainstream market.

For a company which quickly became synonymous with its helmet- and

body-mounted cameras, recent product launches have failed to click with

consumers who rely more on smartphones than traditional cameras to make high-

resolution video.

GoPro's shares fell 15 percent on Thursday, a day after the company

forecast lower-than-expected revenue for the crucial holiday quarter.

GoPro's answer is to increase spending on marketing campaigns, primarily

television advertising, from the current quarter through 2016.

267

For over a year, the company has shunned TV ads, relying instead on the

hype generated by GoPro users who upload videos of their exploits on YouTube.

Some popular videos, such as "Superman with GoPro", have garnered more than

18 million likes.

"Performance is still good, demand for GoPro is still strong, but

admittedly we took our foot off the gas from a marketing perspective in the

second and third quarter," Chief Executive Nicholas Woodman said in an

interview with CNBC.

Pricing has been an issue: the San Mateo, California-based company

slashed $100 off the price of its HERO4 Session camera only two months after its

launch in July, citing lower-than-expected demand.

Analysts said customers in the Americas, by far the company's biggest

market, appeared unwilling to shell out more money on relatively expensive

cameras. The market is also nearing saturation, they said.

Recent advancements in video-shooting capabilities of smartphones, such

as Apple Inc's iPhone 6 range, have made competition tougher.

But some analysts said the renewed focus on advertising could help to

revitalize sales next year.

"The company will ramp up marketing significantly and immediately,

which will weigh on near-term earnings, but should restore some momentum

around the product category and the brand heading into 2016," JPMorgan analysts

wrote in a note.http://www.reuters.com, October 29th, 2015


to vie – соперничать, бороться, конкурировать

thrifty customers – экономный, бережливый, расчетливый покупатель

mainstream market – основной (массовый) рынок

product launch – вывод нового товара на рынок

to click with – вызвать отклик; прийтись по вкусу; обрести популярность

to shun – избегать, сторониться

to take foot off the gas – сбавить скорость

to shell out money – потратить деньги

market saturation – насыщение рынка

268

to revitalize sales –оживить продажи

to ramp up – увеличивать, наращивать, активизировать

to restore momentum – придать новый импульс


TEXT 6Big switch

Increasing competition is shaking up a moribund energy market

NOT so long ago, Britain’s “big six” energy suppliers—SSE, EDF,

Npower, E.ON, Scottish Power and British Gas, now owned by Centrica—

seemed to have the energy market stitched up. Now, however, all that is

changing, and rapidly.

The big six—British and foreign companies (alongside the former state

monopoly, British Gas) that bought up the retail energy business after

liberalisation in the late 1990s—are being challenged by a wave of small, nimble

and ambitious new companies. They have been eating up market share at a

remarkable rate. The challengers’ share of the household market has risen from

2% in early 2012 to almost 9% now.

Just in the past year, some of the challengers have made spectacular gains.

First Utility, the market leader among the new companies, has more than tripled

its number of customers, to 650,000. The smallest of the big six, Scottish Power,

still has over 5m customers, but if the challengers go on at this rate, the market

share of the big six could have shrivelled by almost 20% within three years.

Most of the challengers’ growth is a consequence of customers switching

suppliers. Switching used to be almost entirely between the big six. Now more

than half of customers who switch do so from one of the big six to a smaller

competitor.

It is not difficult to account for the sudden success of the new companies.

They are the beneficiaries of popular anger at the incumbents, particularly over

price and customer service. On price, customers saw energy prices rise gradually

during the 2000s, causing little concern, but much more steeply thereafter;

between 2011 and 2013 there was an increase of over 15% in average household

269

gas and electricity spend. There is still debate as to whether these rises were

justified, or whether it was blatant profiteering by the big six, but many customers

drew their own conclusions. There was a stampede towards the smaller, and

usually cheaper, alternatives. At this point the big six were put on the naughty

step by the politicians, with Ed Miliband, in particular, promising that if the

Labour Party were to win the next election his government would introduce a

price freeze.

It is not all about money, however. Stephen Fitzpatrick, the head of Ovo

Energy, says that his company is as much about offering good service as “fair

prices.” The big six have long been castigated by consumer bodies for their

dreadful customer service.

The new companies also offer the consumer more choice than before,

particularly in terms of renewable energy. Good Energy, for instance, offers

100% green energy. It is consequently a bit more expensive than its peers, but is

still growing. The challengers are also taking a lead in applying new technology

to measuring consumption; “smart meters” allow people to reduce their bills.

All this is good news, finally, for the beleaguered consumers. They have

more choice, and the lower prices that the challengers can offer have forced the

big six to reply in kind. Since August they have begun to slash their one-year

fixed price tariffs in order to woo customers back.

Indeed, Mr Miliband’s threat of draconian intervention already looks

dated. If anything, argues Mr Reid of Lazarus Partnership, a research outfit, the

Labour Party leader might have forced prices to remain higher for longer than

they might otherwise have been. Companies have been reluctant to reduce prices

too much, he says, for fear that they might not be able to raise them again after

the election.The Economist, November 29th, 2014


moribund – загнивающий, агонизирующий, переживающий застой

nimble – проворный, ловкий

beneficiary – получатель выгоды

incumbent – компания, давно существующая на рынке, давний участник рынка

profiteering – спекуляция, нажива

270

stampede – массовый переход

beleaguered – малообеспеченный, нуждающийся

to woo – привлечь, добиться расположения

draconian – безжалостный, суровый

TEXT 7

How Competition Strengthens Start-upsAccepted wisdom holds that the less competition a business faces, the

more it thrives. This concept is at the core of Blue Ocean Strategy, the 2005 best

seller by W. Chan Kim and Renée Mauborgne, which advocates launching in

uncontested markets in order to avoid the pain of going head-to-head with rivals

in the “red ocean.”

But new research shows that exposure to competition in the early stages of

a firm’s life increases its long-term survival prospects.

We studied British tax data covering nearly 2 million companies launched

in the UK from 1995 to 2005, looking at the competitive environment the

companies faced in their first few years and at how long they remained in

business. We found that companies launched in crowded markets had higher odds

than others of failing in the first year—but if a company survived during this

early period, it had a much greater chance of making it to the three-year mark. A

firm’s early exposure to competition appears to have an immunizing effect, in

much the same way that a person’s exposure to illness can create antibodies that

provide long-term protection.

What Doesn’t Kill You...

Researchers analyzed the behavior of nearly 2 million UK businesses,

determining how much competition they had faced during their first two years of

life and looking at which companies made it to year three. The survival rates

revealed some surprising correlations.

How does competition help young firms thrive? A challenging

environment causes start-ups to be tightly focused on satisfying customer needs

along with lowering and containing costs. Consider Southwest Airlines, which

launched in the crowded airline industry in 1967. Early competition forced it to

create an efficiency-based, low-cost culture, one that prioritized quick

271

turnarounds at the gate (to maximize the use of each plane) and turned its no-frills

approach (such as the lack of assigned seats) into a marketing strategy.

Managers who understand the benefits of early competition can work to

create conditions that will heighten its effect. Some of the 400 companies in the

Virgin Group, the travel and entertainment conglomerate owned by Richard

Branson, face limited direct competition. So Virgin’s managers create internal

competition by measuring teams within a company against one another and by

measuring each company’s performance against that of others. Venture capitalists

can foster a similar dynamic by taking care not to overfund a new business, since

having too much cash on hand can make it difficult to build a low-cost culture.

This is one reason why Sequoia Capital, the Silicon Valley fund, has a policy

against funding companies started by children of superrich families, whose deep

pockets may make it hard to develop frugal managerial instincts.

Of course, early competition has a downside: Some new businesses fail

before they have time to build up the immunity we describe. Still, smart managers

of young businesses will bear in mind the advantages of exposure to safe levels of

external competition or to a competitive environment that’s been generated inside

the organization. Such exposure can have long-lasting positive effects on

efficiency and survival.Harvard Business Review, March 1st,2013

NOTES

1. Blue Ocean Strategy - a book published in 2005 and written by W. Chan Kim and Renée Mauborgne, professors at INSEAD and co-directors of the INSEAD Blue Ocean Strategy Institute. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, Kim & Mauborgne argue that companies can succeed not by battling competitors, but rather by creating ″blue oceans″ of uncontested market space.

2. Red oceans are all the industries in existence today – the known market space, where industry boundaries are defined and companies try to outperform their rivals to grab a greater share of the existing market. Cutthroat competition turns the ocean bloody red.

3. Silicon Valley in the southern San Francisco Bay Area of California, is home to many start-up and global technology companies. Apple, Facebook and Google are among the most prominent. It’s also the site of technology-focused institutions centered around Palo Alto's Stanford University – Кремниевая Долина.


to thrive – процветать, преуспевать

272

uncontested – свободный от конкуренции; свободный от других игроков

go head-to-head –противоборствовать, соперничать

exposure to competition – воздействие конкуренции

competitive environment – конкурентная среда; условия конкуренции

to launch a company – создать, основать компанию

a crowded market – перенасыщенный рынок (рынок, где представлено

множество компаний, предлагающих аналогичные товары (услуги) и

конкурирующих между собой за потребителя)

turnaround – здесь время на межполётную подготовку, время на подготовку к

обратному рейсу

no-frills airline – бюджетная авиакомпания (предлагающая рейсы по

сниженным тарифам)

venture capitalist – компания венчурного капитала (инвестирующая капитал в

рискованные предприятия)

to foster – способствовать развитию, поощрять

frugal – экономичный, бережливый

deep pockets – богатство, состоятельность

TEXT 8

Canadian retailers closing amid intense competition, failure to adapt to market

In fashion, everyone knows that you're only as good as your last season.

But now, you also have to be fast and adaptable, which is something many

Canadian retailers like Danier Leather, Laura, Smart Set and Jacob haven't

been able to do.

In Canada, many retailers had a "great thing going for years," according to

Farla Efros, the president of HRC Advisory, a retail consulting firm. There wasn't

much competition and the economy was stable.

But that all changed with the recession and the onslaught of international

competition. An influx of fast-fashion brands, combined with an inability to adapt

to new styles and a growth in consumer choice, have led to the demise of many

mid-price Canadian retailers.

273

International companies like Zara, H&M and Forever 21 are seen as fast-

fashion brands – they're massive and they operate on a ramped-up schedule. This

speed allows these big retailers something traditional ones don't have: flexibility.

They can get a new popular style onto the market in weeks or even days in some

cases.

Traditional retailers just can't keep up.

On top of that, spending habits are changing. Mid-market retailers don't

have as much draw because people are gravitating towards the extremes.

One of the main criticisms of Danier was that it didn't try to change until it

was too late. It had a lock on the leather jacket market in Canada.

But leather's popularity has grown "astronomically" over the last few

years, says Farla Efros, the president of HRC Advisory, a retail consulting firm.

That popularity has brought cheaper alternatives and different styles onto the

market.

And Danier was not particularly popular with the younger crowd, says Ed

Strapagiel, a retail industry consultant. Even if they had tried to appeal to younger

generations, their traditional image stuck with them.

Efros says that by the time many of these retailers tried to change, it was

too late.

"They had already ignored their current consumer base and stopped

reinventing," she says

Most shopping in Canada is still done in "brick-and-mortar" stores – only

about 10 per cent is done online. But according to Strapagiel and Efros, that

percentage grows every year.

Because of this, consumers now have more choice than ever. And many

customers expect Amazon-style free shipping, so the retailers have to eat that

cost, says Efros.

Strapagiel says online stores, while actually quite challenging and

expensive to operate, have become a necessary cost of doing business.

Consumers now hold the power because online shopping has given them

almost infinite choice, says Efros. That power had traditionally been in the hands

of the manufacturer or the retailer.

274

The recession is difficult to ignore – Efros says it's been like the final nail

in the coffin, but not the main cause behind these brands' failures.http://www.cbc.ca/news/business March 13th, 2016


adaptable – способный к адаптации; легко приспосабливающийся, гибкий

onslaught – натиск, нашествие

influx – приток, всплеск

demise – гибель, закат, потеря занимаемого положения

mid-price – среднеценовой (диапазон)

mid-market – среднеценовой сегмент рынка

operate on a ramped-up schedule – работать ускоренными темпами (по

принципу быстрой ротации ассортимента)

spending habits – характер расходов/текущих затрат

to have a lock on something – полностью контролировать

"brick-and-mortar" stores – традиционные торговые точки (в отличие от

интернет-магазинов)

TEXT 9

Global competition drives changeCompanies in the developed world are increasing their commitment to emerging

markets at a faster rate than ever before.

I.

Faced with the prospect of stagflation (a combination of low growth and

high inflation) – or worse – in the US, Europe and Japan, companies are plunging

into the high-growth economies of Asia, eastern Europe, Latin America, and,

increasingly, Africa.

“Emerging markets have inflation issues, environmental questions and

social problems, but overall they have better economic growth. In the developed

markets you have slow growth and the risk of a new sovereign debt crisis,” says

Alain Bokobza, a strategist at Société Générale, the French bank.

In a study of European multinationals, Morgan Stanley, the investment

bank, found that over the past two years, companies have diversified their

275

exposure away from domestic markets more quickly than ever before. European

companies now generate just 53 per cent of sales in developed Europe, while the

share from emerging markets has leapt from 12 per cent in 1997 to 29 per cent.

US companies are also following this trend, with a host of leading

businesses increasing their sales to emerging markets to above 50 per cent,

including Avon Products, the cosmetics company, (52 per cent), Tupperware

Brands, the food container business, (58 per cent) and tobacco group Philip

Morris (68 per cent).

Admittedly, the average company is a long way behind these leaders in

their exposure to emerging markets. HSBC, the banking group, estimates that

British companies as a whole generate just 13 per cent of revenues from emerging

markets. This figure is just 11 per cent and 7 per cent for Japanese and US

companies respectively.

But there is no doubting which way the winds of change are blowing in

sectors open to international development – and international competition.

Despite the economic challenges in their home markets, developed world

multinationals cannot afford to focus only on their domestic rivals.

This is also far from a one way street. Competitors from the emerging

markets are breathing down the necks of established-market companies as never

before. With the help of a recovery from the financial crisis that was much

stronger than in the developed world, companies based in emerging markets are

pushing into global markets at an unprecedented pace.

Emerging-market groups are becoming leaders in key industries. Two of

the top five global wireless technology companies are from China – Huawei and

ZTE. Mexico’s Cemex is the world’s largest building materials supplier,

Brazilian-run Anheuser-Busch InBev is the biggest brewer, and three Indian

groups – Wipro, Infosys and TCS – together are the top software exporters.

II.

So how is this global competition changing companies?

First, businesses are having to respond faster than before. For example, a

group with a Europe-wide pay freeze may have to be flexible enough to authorise

salary increases to specialists and managers in developing countries, who are still

able to jump ship for a better offer. Darryl Green, Asia president for Manpower

276

Group, the recruitment agency, says: “Countries where people move easily – such

as India – are seeing executive pay rising rapidly. The sight of [well-paid]

expatriate foreign managers inspires local people to ask for more. Employers

have to respond.”

Second, chief executives are focusing on a broader range of challenges

and opportunities than ever before. With emerging-market companies as well as

established multinationals as rivals, there is no time to waste. A case in point

today is Africa, where rapid growth in key countries, notably Nigeria, has

persuaded many business people that the continent’s time may finally have

arrived.

Multinationals are also moving core decision-making units into emerging

markets. Microsoft, the US software giant, has its biggest development centre

outside the US in China. Cisco Systems, the US computer networking group, has

what it calls a second headquarters, Cisco East, in Bangalore, India.

With the internationalisation of operations comes the internationalisation

of staff. For many groups this is now established practice. Even Japanese

companies, famously conservative about promoting foreign staff, are changing.

And growing numbers of executives with emerging-market roots are

making it into the boardroom. Swiss food group Nestlé recently appointed the

Mandarin-speaking Wan Ling Martello, a US citizen of Chinese and Filipina

origin, as its chief financial officer.

III.

The ultimate aim is to compete more effectively, especially in emerging

markets, where the challenges are as great as the opportunities. Multinationals

have learnt that price is not the only way of reaching emerging-markets

customers. These buyers appreciate quality as much as rich-word clients,

sometimes more so because a big purchase – such as a car – involves a much

greater proportion of family income.

By operating in the fast-growing emerging markets, companies are forced

to innovate and develop products and processes which may not have existed

before in the developed world. Coca-Cola, the US beverages group, launched a

juice-based drink in China called Pulpy, which it is now rolling out around the

277

world. General Electric, the US industrial group, pioneered low-cost medical

monitors now in demand in developed countries.

Emerging-markets innovation is not new. More than 20 years ago,

Hindustan Lever, Unilever’s Indian affiliate, developed mini-sachets to sell soaps

to poorer consumers. But what is new is the growing volume of such innovations.

In outsourcing, Indian groups headed by TCS and Infosys have revolutionised

information management by splitting work done by expensive on-site consultants

from that carried out cheaply offshore.

The rivalry between developed-world and emerging-market companies is

not a wholly clean fight. Western groups complain of unfair competition, in the

allocation of government contracts for example, of a lack of transparency and of

intellectual property theft, notably in China.

Emerging-market companies hit back with claims that developed-world

markets are often protected by costly entry barriers, such as regulatory

requirements. Nor is bribe-paying limited to the developing world.

But these concerns have not slowed the fundamental processes of

cooperation and competition between companies, which is likely to continue into

the future.The Financial Times, October 10th, 2011


sovereign debt crisis – кризис государственной задолженности

exposure – зависимость

to generate sales – осуществлять продажи

to generate revenues – получать доходы

to jump ship – сменить работодателя; перейти на другую работу

decision-making – процесс принятия решений

core units – основные подразделения

clean fight – честная борьба

allocation of contracts – передача подряда на выполнение работ

transparency – прозрачность

intellectual property theft – кража интеллектуальной собственности

bribe-paying – взяточничество/коррупция

278

CONSOLIDATION

Exercise № 1 3


1. Last year the German crop was well down and American growers could not make up

the difference, suggesting that prices will go up again.

2. When prices were relatively high, nuclear plants were able to fare well because their

facilities, once up and running, were inexpensive to operate.

3. Companies like Exxon Mobil Corp and Chevron Corp may see profits rise as the

economy strengthens and oil prices increase.

4. It might take a much bigger than expected job gain in May – well above 200,000 – to

nudge the Fed toward a rate hike this month.

5. Productivity recently has been growing well below the 2.2 percent average gains seen

over the past 68 years.

6. But the resilience of the economy in the United States and abroad suggests that there

is more underlying strength than many may believe.

7. While that was an improvement over an earlier estimate of 0.5%, the pace still well

below the economy’s potential.

8. House construction has improved much of this year, with single-family houses

accounting for much of the gains.

9. Yesterday the yen, which gained sharply following the UK referendum, extended its

gains.

10. But inflation continued to run well below the Fed’s 2% annual target even as more

people went back to work and wages began rising.

11. February’s data were in line with those expectations, even though signs had emerged

that price gains were once again accelerating.

12. Yet anyone counting on a sustained upturn in the economy would do well to examine

the pattern of the past few years.

13. The surge has strengthened the dollar against the euro and yen, which would

ultimately help raise import costs in the euro zone and Japan.

14. China’s imports also unexpectedly rose in August for the first time in nearly two

years, suggesting domestic demand may be picking up.

279

15. Barring a large, unpredictable increase in commodity prices, the best-case scenario

could be small, predictable inflation – as long as the Fed is committed to it.

16. The import gain suggested lackluster Chinese domestic demand might be firming up.

17. The boost to inflation would only be heightened should Trump go through with plans

for slapping tariffs on imports and deporting migrants.

18. Given its long border with Mexico, Texas could be consuming more imported

produce than other states, raising the risk of infection.

19. The International Energy Agency has even predicted that barring policy changes, coal

may rival oil in importance by next decade.

20. That level of growth will not bring the jobless rate down fast but it would be an

improvement and it could be the first step towards a sustainable recovery, thanks to

the virtuous circle of stronger job growth leading to higher consumer spending, which

in turn should generate more jobs.

VOCABULARY CHECK

Exercise № 14


1. Если компания не сократит издержки и не представит на рынок более

современную и конкурентоспособную продукцию, она, вероятно, уступит свою

долю на рынке конкурентам.

2. В условиях ожесточенной конкуренции этой недавно созданной компании

удалось найти свободную нишу на рынке, а также привлечь потенциальных

покупателей, предложив хорошее соотношение цены и качества.

3. Компания, должно быть, несет огромные убытки в результате наплыва

иностранных конкурентов и, вполне возможно, будет вынуждена уйти с рынка

или кардинально изменить стратегию маркетинга, ориентируясь на экономных

клиентов.

4. В борьбе за потребителей компании время от времени продают свою

продукцию по ценам ниже себестоимости, что может спровоцировать ценовую

войну в отрасли.

280

5. Компании ведут ценовые войны, для того чтобы "выжить" конкурентов из

отрасли, расширить клиентскую базу и увеличить свою долю на рынке.

6. Антимонопольное законодательство призвано регулировать отношения между

участниками предпринимательской деятельности и защищать конкуренцию от

чрезмерного влияния крупных игроков. Необходим строгий надзор со стороны

органов антимонопольного регулирования, чтобы ограничить возможность

крупных компаний диктовать цены на рынке.

7. Крупные ТНК в прошлом, бывало, переносили вредные для здоровья

производства в страны третьего мира. Сегодня, однако, правительства этих

стран пытаются установить жесткий контроль за деятельностью иностранных

компаний, чтобы защитить население и национальных производителей от их

чрезмерного влияния на рынок.

8. Создание предприятиями конкурентных преимуществ – есть основа неценовой

конкуренции. Предприятие может обойти своих конкурентов, если оно в

состоянии обеспечить себе отличие от других компаний и впоследствии его

поддерживать.

9. Ценовые войны, как правило, ведут к негативным последствиям. Ценовое

преимущество сохраняется недолго, так как конкуренты быстро реагируют на

снижение цен.

10. Совершенная конкуренция существует на рынке, где действует большое

количество продавцов предлагающих однородную продукцию, и не имеющих

возможности влиять на цены своих товаров; при этом входные барьеры на

рынке практически отсутствуют.

REVISION (Units IV-V)

Exercise №15


1. The softer-than-expected retail sales numbers last month suggest some cooling in

consumer spending in the fourth quarter after solid gains in the July-September

period.

281

2. China’s exports fell 10 percent year-on-year in September, worse than expected,

while imports unexpectedly shrank, reviving concerns about the health of the world’s

second biggest economy.

3. With Indonesia’s arms imports up threefold since 2010, according to the Stockholm

International Peace Research Institute, competition between suppliers is brutal.

4. Double-digit wage increases are crimping productivity and may encourage inflation,

according to the Organization for Economic Cooperation and Development.

5. A price war has broken out, with discounts of up to 30%, as carmakers desperately

try to cut inventories.

6. The US economy is already sluggish and fragile, even as it enjoys one of the longest-

ever periods of growth.

7. But any stimulus to British exports from a devalued currency is likely to be offset by

higher prices for imported goods.

8. Recent weakness in industrial output and second-quarter data showing the economy

ground to a halt suggest Japan’s demand for commodities could potentially weaken

further.

9. China also reported higher-than-expected inflation in September for consumers and

producers alike, with producer prices rising for the first time since January 2012.

10. German retail sales have fallen at their fastest pace in two years, suggesting that

consumer confidence in Europe’s largest economy may be weakening.

11. Inflation will hurt consumers, while an even stronger dollar depresses exports.

12. The Federal Reserve still intends to raise its benchmark interest rate this year, barring

unpleasant surprises, the Fed chairwoman, Janet L. Yellen, said on Thursday.

13. With all the great news on the economy, you’d think the dollar would be soaring. Yet

the once mighty buck is crumbling.

14. In a recent report on Japan, economists at the IMF attributed some of consumers’

reluctance to open their purses to their worries how Japan’s dire fiscal position – debt

now stands at 246% of GDP – could affect their future income.

15. Should Mr Trump want to signal an aggressive stance, he could move against imports

of steel and aluminum from China.

16. Three-quarters of British food manufacturers said they have seen an increase in the

price of imported ingredients, according to a survey published earlier this week.

282

17. With its income likely to fall by half this year, a burden of state subsidies that

consumes 13% of GDP, and youth unemployment already pushed to 25%, it is no

wonder that Algeria’s government recently called for an emergency meeting of

OPEC to find a way to boost prices.

18. Even if Teva’s profit margins take a hit due to increased generic sales, the company

may well make up the difference in volume.

19. Orders to US factories for long-lasting manufactured goods dropped in May,

reversing two months of gains and delivering more bad news for American

manufacturers.

20. Many of Chinese firms are copycats cranking out commodity chemicals. For most of

the main types of chemicals factories have been running well below capacity. Even

so, Chinese firms are still increasing their potential output.

283

TOPICAL VOCABULARY UNIT V

1. to compete

competitor

syn. rival

would-be/ potential competitor

competition (strong, stiff, severe, fierce, tough, cutthroat)

[non]price competition

[im]perfect competition

monopolistic competition

competitive

competitive advantage

syn. (competitive) edge

competitive environment

competitiveness

to beat a competitor

to undercut a competitor

to withstand / fend off competition

to encounter/ face competition

2. to allocate

allocation

3. to substitute (for)

substitute (n)

substitution

4. cost (s)

cost leadership

cost advantage

5. to absorb

6. profit margin

7. target market / customer

8. differentiation

product differentiation

9. value-for-money

10. a bargain

284

11. superior / inferior

12. monopoly / oligopoly / monopsony / oligopsony / natural monopoly / pure

competition

13. to charge a price

14. price-taker

15. to command a premium price

16. price discrimination

17. price fixing

18. price war

19. pricing power

20. market power / clout

21. unfair business practices

22. to impede

impediment

23. to jokey (for)

24. market leader

market challenger

market follower

25. a runner-up

26. a counterpart

27. counterfeit

28. niche

to niche

niche (adj) market / customer

market nicher

29. market saturation

30. a crowded market

31. to conform (to)

32. antitrust laws/regulation/ regulator/ case

33. regulatory authority

34. a penalty

35. to scrutinize

scrutiny

285

36. to outperform/ to surpass/ to outweigh

37. to lag behind/ to fall behind

38. to cannibalize

39. to woo/ to lure customers

286

PRACTICE TESTSQUIZ (20 minutes)

I. Переведите следующие словосочетания на русский язык:

1. economic output

2. durable goods

3. growth rate

4. boom and bust

5. higher interest rate

6. consumer spending

7. to boost retail sales

8. capital goods

9. leading indicators

10. annual output

II. Переведите следующие словосочетания на английский язык:

1. благоприятная экономическая ситуация

2. с учетом инфляции

3. снижение объемов продаж комплектующих

4. наметить ориентиры на следующий год

5. повышать уровень жизни населения

6. рост курса иностранной валюты

7. ВВП в реальном выражении

8. ускорение темпов инфляции

9. избыточные мощности

10. удовлетворить внутренний спрос

III. Переведите следующие предложения на русский язык:

1. Combined GDP in the BRICs will rise to more than $14 trillion this year from

$2.8 trillion in 2002, according to the IMF.

2. Sharply rising demand for Australian coal has left port facilities far behind.

287

Final Test (90 minutes)

Переведите текст на русский язык с использованием словаря.

Indonesia’s Gross Domestic Product Grows 4.73% in Third Quarter

Indonesia’s economy expanded at a slightly faster clip in the third quarter as

increased government spending helped lift economic growth from a six-year low.

The improved performance offers some respite for President Joko Widodo, who

has struggled to deliver the accelerated growth he promised amid legislative hurdles and

a slowdown in China, Indonesia’s largest market for commodities.

Southeast Asia’s biggest economy grew 4.73% in the July-to-September period

from a year earlier, compared with a 4.67% growth rate in the second quarter. The $800

billion economy grew 3.21% from the previous three months after a 3.78% expansion in

the second quarter, the official Central Statistics Agency said Thursday.

Yet, growth was below the 5.8% average recorded over the past decade, and fell

short of many economists’ expectations. Economists polled by The Wall Street Journal

had forecast GDP growth of 4.8% from a year earlier and 3.28% from the previous

quarter, raising concerns of the continuity of the growth acceleration.

The statistics agency said government spending improved 6.56% in the third

quarter from a year earlier. Household consumption, which accounted for 55% of the

gross domestic products in the third quarter, advanced 4.96% in the July-September

period from a year earlier. It stayed steady from the 4.97% growth in the second quarter.

Since late September, Mr. Widodo has introduced a raft of policies to make it

easier to invest in the country and boost household purchasing power, measures his

administration hopes will help drive economic growth.

Weaker-than-expected growth recovery in the third quarter strengthens the case

for the central bank to cut interest rates, economists said.

www.wsj.com

288

Exam Card

Переведите следующие предложения на русский язык:

1. Falling sales in European markets were offset by stronger performance in Asia.

2. Such production inputs as cheap labor and sufficient raw materials account for more

outsourced jobs in the region.

3. With strong manufacturing, today multinationals enjoy the benefits of ‘just-in-time’

production scheme.

4. The new safeguards may boost consumer prices, which for several years have been

under pressure due to worldwide weaker demand.

5. The EU accounted for almost a half of Russia’s trade in 2010, with the total at about

$300bn, according to Renaissance Capital.

6. Fewer subsidies and import duties would encourage increased food production and

exports, the WTO argues.

289

Критерии оценки знаний и компетенций на устном экзамене и зачете

Оценка Описание критериев оценки

А(90-100) Отличное знание изученного материала и высокий уровень владения языковыми навыками. Сумма допущенных ошибок не превышает 10%.

В (82-89) Хорошее знание изученного материала и хороший уровень владения языковыми навыками. Сумма допущенных ошибок в диапазоне 11-18%.

С (75-81) Достаточно хорошее знание изученного материала и достаточно высокий уровень владения языковыми навыками. Сумма допущенных ошибок в диапазоне 19-25%.

D (67-74) Удовлетворительное знание изученного материала и удовлетворительный уровень владения языковыми навыками. Сумма допущенных ошибок в диапазоне 26-33%.

E (60-66) Весьма посредственное знание изученного материала и сравнительно низкий уровень владения языковыми навыками. Сумма допущенных ошибок в диапазоне 34-40%.

F (менее 60) Незнание изученного материала и неприемлемо низкий уровень владения языковыми навыками. Сумма допущенных ошибок превышает 40%.

Критерии оценки письменной работы

Оценка Описание критериев оценки

А(90-100) Работа полностью отвечает целям и задачам обучения по данной теме. Сумма допущенных ошибок не превышает 10%.

В (82-89) Работа в целом отвечает целям и задачам обучения по данной теме. Сумма допущенных ошибок в диапазоне 11-18%.

С (75-81) Работа в основном отвечает целям и задачам обучения по данной теме. Сумма допущенных ошибок в диапазоне 19-25%.

D (67-74) Работа не полностью отвечает целям и задачам обучения по данной теме. Сумма допущенных ошибок в диапазоне 26-33%.

E (60-66) Работа мало отвечает целям и задачам обучения по данной теме. Сумма допущенных ошибок в диапазоне 34-40%.

F (менее 60) Работа не отвечает целям и задачам обучения по данной теме. Сумма допущенных ошибок превышает 40%.

290

Классификация ошибок

Перевод экономического текста на русский язык

Аспект Вид ошибки Процентный вес ошибки

Непонимание исходного текста в целом 30

Неумение преодолевать переводческие трудности

в вычленении главных, второстепенных членов предложения; причастных и герундиальных оборотов, абсолютных конструкций и т.д.

5

неумение находить контекстуальное значение слова

2-5

в трансформации, необходимой при переводе

2-5

в нахождении логической связи между отдельными частями текста

2-5

перевод идиоматических выражений 2-5

перевод заголовка 2-5

Незавершенность перевода

на 5-10 % от объема исходного текста 5

на 15-20 % от объема исходного текста 10-15



на 50% и более 40

Искажение смысла 5

Неточность 3

Неестественно низкая скорость перевода, прерываемого паузами

10

Ошибка в активной терминологии, в использовании профессионального языка

3

Незнание экономических реалий России, США, Великобритании

3-5

Несоответствие нормам русского языка 1

Несоответствие стилю оригинала 1

291

mgimo.ru for... · web viewa few weeks ago the economist invited readers who enjoy our big mac...

Documents