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UNIVERSITATEA TEHNIC A MOLDOVEI





Olga Zingan


ENGLISH
FOR ECONOMICS AND BUSINESS
Methodical elaboration






Chiinu
2013

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UNIVERSITATEA TEHNIC A MOLDOVEI

Facultatea Tehnologie i Management n Industria Alimentar
Catedra Limbi Moderne


Olga Zingan


ENGLISH
FOR ECONOMICS AND BUSINESS
Methodical elaboration










Chiinu
Tehnica-UTM
2013
2

Acest curs se adreseaz studenilor facultii de Inginerie Economic i Business din cadrul
Universitii Tehnice a Moldovei, dar i celor interesai s-i aprofundeze cunotinele n englez-
limbaj specializat din domeniul economiei i afacerilor.
Coninutul elaborrii metodice este organizat n 10 uniti. Fiecare unitate debuteaz cu
vocabularul leciei care cuprinde termenii din textul de specialitate i unii afereni temei studiate.
Noile uniti de vocabular apar structurate n microsisteme euristice, fiecare termen fiind plasat sub
un titlu generic. mbinrile de cuvinte, n special cele ce conin verbul specializat, sunt parte
integrant a vocabularului i sunt menite s asigure comunicarea elementar pe marginea
subiectului studiat.
Continuitate unitii i confer textele de specialitate nu mai puin importante ce nglobeaz
lexicul analizat anerior. Acestea abordeaz subiecte din domeniul economiei i afacerilor din care se
poate desprinde pe lng temele de conversaie utile viitorilor specialiti, materialul lingvistic
inerent discursului specializat. n plus, activitile ludice de vocabular i cele de comprehensiune a
documentului scris asigur un real suport n fixarea conceptelor noi i formeaz abiliti de abordare
creativ a lexicului specializat. Tot aici problemele de gramatic sunt expuse relativ succinct din
punct de vedere teoretic, dar explicaiile sunt susinute de exemple pertinente.
n final unitatea conchide cu un material evaluativ ce ghideaz, att pe cel care nva ct i pe
cel care pred, spre a sintetiza i respectiv a aprecia coninutul subiectului studiat.
Astfel ndjduim c prezenta lucrare, astfel conceput, va fi de un real folos celor crora li se
adreseaz.







Autor l. superior Olga Zingan
Recenzent conf. univ. dr. Ludmila Ungureanu








UTM, 2013
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Unit 1. WHAT IS ECONOMICS?

I. Vocabulary

Economics (n) - the study of how a society organizes its money, trade and industry;
(rom: tiina economiei; economie);
Economist (n) - a person who studies or writes about economics; (rom: economist);
Economy (n) - the relationship between production, trade and the supply of money in a
particular country or region; (rom: economie); e.g.the economy of Moldova;
Economic (adj.) 1. Relating to trade, industry and money of a country or region;
e.g. economic growth; (rom: economic);
2. Profitable; (rom: economic; care aduce suficieni bani);
Economical (adj.) - spending money or using something in a careful way; e.g. It is usually
economical to buy washing powder in large quantities. (rom: economic;
economicos; chibzuit);
Economically
(adv.)
1.in a way connected with trade, industry and development of wealth of a
country; e.g. Economically, the country has been improving steadily these
past ten years. (rom: pe plan economic);
2. using little money, energy, time, etc; (rom: ntr-un mod economicos);
e.g. As a student she lived very economically, rarely going out and buying
very few clothes.

Which word economic or economical?
Warning: choose the right adjective! To refer to the economy of a country or of a region dont say
economical, say economic. e.g. Unemployment causes a lot of economic problems.

Vocabulary and Speaking Activities

1. Select the appropriate word. Fill in the gaps.
Economical economically economist(s) economy economics economic (2)
1. study our everyday lives and the general life of our communities in order to
understand the system of which we are part. 2. They try to describe the facts
of the .. in which we live, and try to explain how it all works. 3. The
governments . policies have led us into the worst recession for years.4. The
factory is no longer .viable. 5. It would be more . to buy a
bigger size. 6. She is in her third year of . at York University.

2. Add the appropriate suffix to the root economto create new words. Make up 4-5 sentences
using the word family economy.


econom
y
ics
ic al ly
ist

3. Discussion. a) Why cant everybody have everything they want?
b) Do you agree with the saying Our wants are endless, our resources are
limited? Give examples of endless wants.

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II. Read the text What Is Economics?. Notice the use of the following collocations in the
text:
Verb - Noun Collocations Adj. - Noun Collocations
to allocate resources
to satisfy ones wants and needs
to make/take decisions
to use resources
to produce/manufacture goods
to provide/offer services
to purchase/buy goods
to make choices
to cope/deal with scarcity
scarce resources
unlimited wants
wise decisions
irrational use of resources
consumer goods
poor services
high-quality goods
right choice
great scarcity

Text A: WHAT IS ECONOMICS?

Economics is the study of how a society uses its resources to satisfy its wants and needs. What
does that mean? Consider the following three scenes. First, a family works together to do the
chores. They cut wood for the fire place, cook meals, go to the store to buy food, and rent movies at
the local video store.
Second, the managers of a large firm are deciding to produce a new product for line of
electronics. They are making decisions on their best place to put their advertising dollars, either
online or in traditional television commercials.
Third, law makers in Washington D.C. are deciding how to spend federal money. Should they
spend money on preschool programs for minority children, or should they invest in a new military
weapon system that could make the country safer? Additionally, how much money should the
government spend on health care or what controls should be placed on the Internet?
All of these questions are about economics.
The first question that comes to mind is why dont we fund them all? We would if we could.
But we cannot. This brings us to our first major term in economics:
Scarcity- all resources are limited and therefore are scarce. Everyone cannot have everything
they want. There is not enough stuff to go around.
To decide how funds get allocated we need to look at our wants and needs. These are our next
important terms. Needs are our basic needs to survive, food, clothes, and shelter. Wants, put
simply, are everything else and they are unlimited. I want a new car, new mp3 player, or a new
house. I dont need any of them to survive.
Economics is the study of how we satisfy our wants and needs with the limited resources we
have.
Finally, what are the resources that we have to use to satisfy our wants and needs? There are
three basic resources known as the factors of production.
Land- this refers to all natural resources used to produce goods and services. This includes
crops that are grown on a land, minerals that are mined from land and rent that is paid to an owner
of land for its use.
Goods and services are the things that we buy like mp3 players or haircuts. A good is a
physical thing you can hold a service is something that gets used up right after it is purchased.
Labor- this is the effort that an individual person puts into making goods or services. This for
this effort the person is paid a wage. Labor includes factory workers, medical personal, and
teachers. They all provide their labor for a wage.
Capital- this is anything that is used to produce other goods and services. If you make cars you
need machines to make the metal that is used in the cars. It is also the truck that drives the cars to
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the dealer who sells them, and it is the building that the cars are made in. All of these are the
resource known as capital.
Now that we know what economics is, why do we study it?
We study economics for two reasons. First, we want to be good consumers. Since our resources
are limited we have to make choices. We can only buy a limited amount of goods and services with
our limited income, right? So we study economics to be good consumers.
Consumers are the people in an economy that purchase goods and services.
We also study economics to be good citizens.
Citizens are the people in a country who hold the political power to elect new governments.
Economics affects us as a citizen through our voting decisions. If we are in agreement with
government policies then we should support them by voting in their favor. On the other hand, if we
do not like how the government is spending money then we have the responsibility to vote them out
of office.
We study economics for a variety of reasons. We want to have good information as
consumers to make sure we spend our limited resources in a good way. As a citizen we want to
make sure the government is spending our money in a way that we agree with. If we dont agree
with them then we can exercise our right as a citizen and vote for change.
(Abridged after www.moneyinstructor.com )

Post-reading activities:
1. a. Match the term on the left with the meanings on the right.
a) Capital goods
b) Entrepreneurship
c) Factors of
production
d) Goods
e) Labor
f) Land
g) Scarcity
h) Services
i) Wants
j) Economics
1. Those things that come from air, land, or water.
2. The things we wish we could have.
3. Machines, buildings, equipment used to produce goods and
services.
4. Objects that can be physically measured or weighed.
5. The way in which trade, industry or money is organized, or the
study of this.
6. The natural resources, labor, capital goods and entrepreneurship
used to produce goods and services.
7. The work done by people to produce goods and services.
8. Tasks that people or machines perform to satisfy wants and
needs.
9. The ability to start and manage a business.
10. The lack of something that will satisfy all our wants.

b. When you have finished, you can compare your answers with the definitions of the main
terms given in the text A.
c. Try to define the same terms in your own words.
2. Comprehensive questions.
1. Why cant everybody have everything that they want?
2. What is the best way to deal with scarcity?
3. What is the major difference between the wants and needs? Give examples of each.
4. Can a product be made without one of the factors of production? Why or why not?
5. How are the factors of production used by a household, a business and a countrys governors?

6

3. Can you remember what these expressions applied to?
In the text What Is Economics? what or who
1. can vote for change
2. is used to produce other goods and services
3. are our basic needs to survive
4. are the resources people use to satisfy their wants and needs
5. are unlimited
6. purchases goods and services
7. are the things that we buy
8. is paid a wage
4. Say in other words:
- there is not enough stuff to go around
- to put ones advertising dollars
- to vote somebody out of office
- something that gets used up right after it is purchased
- to do the chores
5. Pair work
Think about the process of making bread. Describe how the factors of production are
used in this process. How is technology used to help the process?
If you owned a business, explain how you would use the factors of production.
6. Group work. Read the text A again and try to represent the information provided there in
the diagram bellow showing the relationship of the main terms with each other. Try to use
as many terms as possible by adding new cells to the diagram.


7. Group work. Write a story about life in one of the cities Santa Maxima or San Minima
using the collocations on pp.3-4. The beginning of the story is given for you.
In Santa Maxima people were well-to-do,
well-off and well-heeled.
In San Minima people lived in abject
poverty.

Economics
Scarce
Resources
Unlimited
Wants
7

8. Write the text plan and the summary of the text A.
Do you remember the summary writing requirements? Here they are.
Writing a good summary demonstrates that you clearly understand a text ... and that you can
communicate that understanding to your readers. Following the easy 8-step method, you will be
able to summarize texts quickly and successfully.

1. First, skim the text you are going to summarize and divide it into sections. Focus on any
headings and subheadings.
2. Read. At this point, you dont need to stop to look up anything that gives you troublejust
get a feel for the authors tone, style, and main idea.
3. Reread. Rereading should be active reading. Underline topic sentences and key facts. The
details should be avoidedthough they may be interestingare too specific. Identify areas
that you do not understand and try to clarify those points.
4. Now write down the main idea of each section in one well-developed sentence.
5. Write the introductory sentence, this is the key to any well-written summary. Review the
sentences you wrote in step 4. From them, you should be able to create the one that clearly
communicates what the entire text was trying to achieve.
6. Ready to write. At this point, your first draft is almost done. Add some transition words
(then, however, also, moreover) that help with the overall structure and flow of the
summary. And once you are actually putting pen to paper (or fingers to keys!), remember
these tips:
Write in the present tense.
Make sure to include the author and title of the work.
Be concise: a summary should not be equal in length to the original text.
If you must use the words of the author, cite them.
Don't put your own opinions, ideas, or interpretations into the summary. The purpose of
writing a summary is to accurately represent what the author wanted to say, not to provide a
critique.
7. Check for accuracy. Reread your summary and make certain that you have accurately
represented the authors ideas and key points. Also check to make sure that your text does
not contain your own commentary on the piece.
8. Revise. Once you are certain that your summary is accurate, you should revise it for style,
grammar, and punctuation.
(Source: http://www.enotes.com)
9. Use your summary and the diagram on page 6 as supports for retelling the text What Is
Economics?.

Grammar Note: ARTICLES USE

There are only three articles in English: a, an and the.
There are two types of articles indefinite 'a' and 'an' or definite 'the'.
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10. Read the abstract from the article Moldova drops in economic freedom rankings and
justify the use or lack of articles with the underlined words or word combinations.
The Moldovan economy is free to a degree of 53.7 percent, 1.2 percent less than last year, says the
2010 Index of Economic Freedom, which was released by the Heritage Foundation and the Wall
Street Journal. Moldova placed 125th out of 179 countries ranked. This is the lowest score the
country has gotten after 2001, when it received 54.9 percent.
The economy's weakest points are investment and financial freedom, labor market openness,
corruption, and property rights.
The country has good scores on business freedom, as well as fiscal and commercial liberty, which
are above the global average despite being lower than last year.
Viorel Chivriga, an economic analyst, says that the weakest points of the Moldovan economy are
the instability of economic policies and the Government's administrative involvement in the
economy, the investment climate, the protection of private property, protectionism, corruption,
freedom of labor, and monetary freedom."
(Abridged after www.viitorul.org)
11. Fill in the missing article. Use a, an, the or nothing.
According to Igor Munteanu, Ambassador of the Republic of Moldova to the USA and Canada, .....
Moldova is one of ..... most open world economies in terms of access to ...... market and ......
penetrability of foreign goods. ..... Country size and ...... geographical positioning makes Moldova
well connected to ....... EU Common market, as well as to ...... CIS markets. Since 2001, when
Moldova joined ...... WTO, it doubled its efforts to reorient its exports to western markets, keeping
in mind the challenging effects of ....... 1998 Russian financial crisis. During that time, Moldovan
foreign trade relied heavily (85%) on CIS markets. Today, 59% of Moldovan exports are absorbed
by ...... EU market, but ....... countrys economy remains fragile because of ...... global economic
crisis, and equally because of its energy vulnerabilities that are largely defined by exclusive imports
of Russian gas. ..... global crisis has also negatively impacted Moldova, largely through its indirect
effects of ..... shrinking consumption, .... low foreign direct investment and general volatility of .....
international markets. In spite of this, Moldova reported 5.6% in ....... economic growth in 2010,
with ...... foreign trade increasing by 20%, and ...... increase in remittances received from abroad by
10%.

We use a / an We use the No article
a) when we are talking about
something for the first time.
There is a good
shoemaking
company in this area.
b) to talk about someone's job.
My friend is an
accountant.
c) to say what kind of person
or thing someone or something
is (often with an adjective).
That's a very expensive
car!

a) when we are talking about a specific
person or thing, or if there is only one.
The company manufactures childrens
toys.
b) with singular countable nouns to talk
about a type of thing.
The computer was invented in the 20
th

century. (not a particular computer)
The computer in my office is broken.
(a particular one)
c) We use the +adjective to talk about a
group of people.
The unemployed receive money from
the
government.
We use no article when
we are talking about
people or things in
general.
I nflation is rising.
Peopleare worried
about rising crime.
(Note! People
generally, so no article)

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Language Note: Expressing Good News and Bad News
a) Read the company news below. Turn the statements into noun clauses by placing either
The good news is or The bad news is in front of them. The first one has been done for you.
The good news is that________________
__________________________________
__________________________________
__________________________________
__________________________________
__________________________________
__________________________________
__________________________________
__________________________________
__________________________________
__________________________________
__________________________________
profits are up.
sales are down.
fuel costs are down.
interest rates are down.
deliveries are on schedule.
the stock price is up.
100 employees were laid off .
the shipment has been delayed.
construction is ahead of schedule.
losses were higher than expected.
demand was lower than anticipated.
revenue was higher than predicted.
b) Make a similar list of good news and bad news about the economy of Moldova using data
from ex.11.

SUPPLIMENTARY READING

Text B: Why is Moldova Poor and Economically Volatile?

The transition to a market economy in Eastern Europe and the former Soviet Union proved to be
more difficult and lengthy than many economists predicted. In Moldova, the side effects of the
reforms had the worst impact on the quality of life of the population. After more than 10 years of
economic experiments, Moldova is labelled the poorest country in Europe. The World Bank
classifies Moldova in the group of low-income economies. Indeed, its GDP per capita, as measured
in 2001 at purchasing power parity, was $2150, putting Moldova at the bottom of the list of
countries in Central and Eastern Europe.
The main causes of Moldovas volatility lie in the structure of the economy, high external debt,
dependence on CIS export markets, and dependence on CIS fuel imports.
Agriculture employs the largest share of the labor force and also accounts for the largest share
of GDP, 21 per cent. Its importance is slowly decreasing, making room for growth in the service
industries. Moldovas main exports are food, alcoholic beverages and vegetables, which together
account for over 50 per cent of total sales. All these exports are highly dependent on variable
climate conditions. High-technology products do not exceed 3 per cent of exports of manufactures.
Sales to Russia and other CIS countries dominate Moldovas exports; these are vulnerable to the
stability of these transition economies and dependent on political relations between Moldova and
the other countries, especially Russia.
Dependence on gas, oil and electricity imports from one main supplier increases the volatility
of Moldovas economy. The natural gas price for Moldova is also used for political leverage. Thus,
using economic leverage, Russia is able to keep Moldova in its sphere of influence and prevent the
country adopting a pro-Western orientation in its foreign policy.
Does the Republic of Moldova have any chance of preserving its political and economic
independence? How can the country achieve sustainable economic development?
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Moldova needs to reduce its economic volatility in order to prevent the damage caused by
frequent external shocks. It must increase the share in GDP of high-value-added products and
services, thereby reducing its dependence on agricultural exports prone to severe weather
conditions, fluctuating world prices and demand, and restrictive import policies for food and
beverages. High-tech industries are one of Moldovas still unexplored avenues.
By providing more opportunities for Moldovan businesses to cooperate with companies in the
EU through transparent policies and trade and investment promotion campaigns, the government
would address another problem that makes the country vulnerable: dependence on one market to the
east and a single large investor, Russia.
Diversification is what Moldova needs most in both export and import markets. In order to
improve the quality of its products and their competitiveness on external markets, the country needs
technology transfers from the industrialized countries. Government intervention to lower or
eliminate import tariffs for technological equipment and machinery would play a crucial role in this
regard.
To reduce its external debt/GNI ratio, Moldova must take bold steps to end its subsidies to
industries that are not economically viable and constitute a burden on the state budget. Free from
the pressure of gas debt, Moldova could be more selective in choosing investment in its economy.
Diversification of foreign interests would also be to Moldovas advantage.
Finally, the country must create a favourable environment for local and foreign investors.
Moldovas institutions must do their best to reduce the political risk that now keeps investment low.
In sum, Moldova needs to realize that it is not only high rates of return that attract foreign
investment; it is equally important to ensure that investors have confidence in the countrys
institutions.
(Source: http://foundation.moldova.org/publications/eng/78/)
a) Discussion: Do you think the economy of Moldova is going to improve or worsen in the next six
months /one year/5 years? Why or why not? What arguments can you give to support your position?
b) Debate: Students A strongly believe Moldovas economy will soon improve; Students B
strongly disagree. Change partners again and talk about your conversations.
c) Write a letter to the Prime Minister. Ask him three questions about the debt of the Republic of
Moldova. Give him three of your opinions on how to tackle it. Read your letter to your partner(s)
next lesson.
d) Write a piece of news article about the economy of Moldova using the terminology of the
lesson.

III. Evaluation
1. Speak on the following issues:
1. Explain the importance of factors of production in producing goods and services.
2. Explain the major difference between goods and services and give examples of each.
3. Describe how the factors of production are used in the process of making popcorn/shoes/cars.
11

4. Give examples of irrational use of resources.
5. Explain what factors make the economy of Moldova volatile.
2. Translate the following sentences into English:
1. n domeniul tiinelor economice se pornete de la ideea c nevoile oamenilor sunt nelimitate,
iar bunurile destinate satisfacerii acestor nevoi sunt limitate.
2. Astzi nu putem citi presa, asculta la radio sau viziona programele TV fr s fim frapai de
volumul de informaii despre economie.
3. Starea economiei, inflaia, balana comercial fac parte din tiri aproape n fiecare zi.
4. Datele economice sunt importante din cauza consecinelor lor asupra vieii noastre cotidiene.
5. ntreprinderile utilizeaz factorii de producie cum ar fi munca, capitalul, progresul tiinific cu
scopul de a produce bunuri si servicii si a-si maximiza profitul.
6. ntreprinderile sunt extrem de sensibile la variaiile tendinelor economice i la conjunctura
general a economiei.
7. Un produs este orice lucru care poate fi oferit unei piee care poate satisface o dorin sau o
nevoie.
8. Economia este o tiin social ce studiaz producia i desfacerea, comerul i consumul de
bunuri i servicii.
9. Ultimul sfert al secolului 20 se caracterizeaz prin globalizarea problemelor economice.
10. Depindem de Rusia pentru importurile de petrol, gaze, numeroase materii prime.
11. Structura economiei, datoriile externe mari i dependena de pieele de export CSI sunt printre
principalele cauze de volatilitate ale Republicii Moldova.
12. Obiectivul nostru principal este acela de a diversifica att piaa intern ct i cea extern cu
produse competitive.















12

Unit 2. DECISION-MAKING AND PROBLEM SOLVING
Warm up:
1. What prevents you from reaching your goals?
2. Why do you have to choose how to spend your resources (time, money, energy,
knowledge)?
3. How often are you in the situation to make decisions? What about company managers?
I. Vocabulary
Decision - a choice that you make about something after thinking about several possibilities;
syn: choice, final result, outcome, resolution, conclusion; (rom: decizie);
e.g. The company will reach/come to/make a decision shortly.
The decision-making process a scientific approach in making decisions; Its a step-by step
procedure of carefully considered alternatives for making choices;
(rom: procesul decizional);
Problem- a situation or person that needs attention and needs to be dealt with or solved;
syn: trouble, matter, crisis, dilemma, issue; (rom: problem);
e.g. Our main problem is lack of cash.
Alternative- one of two or more available possibilities; (rom: alternativ, opiune);
syn: chioce, option; e.g.There must be an alternative to unemployed people.
Opportunity cost- something that a person gives up when making one choice over another;
(rom: cost de oportunitate);
e.g. Its a good investment plan and we wont be discouraged by the opportunity cost.
Priority - something that is very important and must be dealt with before other things;
(rom: prioritate);
e.g. Banks normally give priority to large businesses when deciding on loans.
Values- qualities that you prize or consider important; (rom: valori);
Goal - an aim or objective; (rom: scop, el).

Verb Noun collocations Adj. Noun collocations
To make/take a decisionto put off a decision
To reach/come to/ arrive at a decision
To carry out/implement a decision
To abide by to appeal against a decision
To be faced with/run into a problem
To bring/cause/create problems
To consider/ discuss/ attack a problem
To face sb. with a problem
To avoid/find a way around/overcome a problem
To tackle /deal with a problem
To seek an alternative
To have/select an alternative
To identify/decide on/determine priorities
To give priority to sth. or sb.
A prompt/rash/hasty decision
A crucial/key decision
A rational/wise decision unwise decision
A difficult/tough decision
The final/irreversible/irrevocable decision
An acute/urgent/growing problem
Financial/technical problem(s)
Personal/health/housing/drug problem(s)
A little/minor problem a serious problem
An available/real/suitable alternative
Little/no /the only alternative
A high/number one/top priority


Phrases:
An approach to a problem o abordare a problemei
The heart/root of the problem- esena problemei
A remedy to a problem- o cale de soluionare a problemei
The scale of a problem- amploarea problemei
To sort out ones priorities- a-i stabili prioritile
13

A list of priorities- o list de prioriti
To have no alternative - a nu avea de ales

Vocabulary and Speaking Activities

1. Notice the use of new words in context. Match the first half of the sentences (1-6) with the
second one (a-f). Translate the sentences into Romanian.
1. I'm afraid I have no alternative
2. Let me have
3. We need to take a lot of factors
4. The company will reach
5. It is my considered opinion
6. Talking about the world's problems is one
thing,
a) the final decision shortly.
b) but solving them is another matter
altogether.
c) into account in our decision-making.
d) but to ask you to leave.
e) your decision by next week.
f) that he should be promoted.
2. The words in the brackets are easily confused. Choose the correct word to fill in the blanks.

1. His opinion had no _____ on my decision. (effect, affect)
2. Unfortunately, he made quite a serious _____ while working on the plumbing.
(mistake, fault)
3. _____ he was reluctant to help, he finally lent a helping hand. (despite, although)
4. You will just have to _____ his decision. (except, accept)
5. His help with the contract was _____. (invaluable, valueless)
6. He is a very _____ person. He always has time to listen to people's problems.(sensible, sensitive)
7. Mary _____ us we had made a good decision. (assured, insured)
8. The outcome of the project was entirely _____. He planned every step!(causal, casual)
9. I hope our services ______ your expectations. (exceed, accede)
10. He stated that his decision to let 20,000 people go was entirely _____. It was simply an
economic necessity. (immoral, amoral)
3. Choose the correct preposition to complete the sentences. If a preposition is not necessary
dont write anything.
by in from but with between to for and of over
1. There must be an alternative people sleeping on the streets.
2. No one has solved the problem what to do with radioactive waste.
3. Her family takes priority .. her work.
4. When is the government going to deal the problem of poverty in the inner cities?
5. Good decisions come . experience, and experience comes . bad decisions.
6. Your decision leaves me no choice . to resign.
7. The job will offer you excellent opportunities promotion.
8. The decision has been made and we must abide . it.
9. The government is giving priority.. job-creation programme.
10. The problem lies .. lack .. communication . managers .. stuff.
3. a. Use the following words to complete each idiomatic expression.
issue say mind thought decision consideration
a) Originally, he agreed to work with us, but now he has changed his _____________.
b) She said she would come, but now shes having second ________________s.
c) The boss always has the final _______________ in purchases over 500.
d) Ive given the matter a lot of _______________.
e) Everyone in the department backed the _______________ to abandon the project.
f) There are several factors to take into ________________.
14

g) There are several things to bear in _______________.
h) They havent addressed the problem at all: theyve completely dodged the ________.
i) Im in two ______________s about whether to accept their proposal or not.
j) Time was short. We had to make a snap ______________.
b. Describe a situation in which you
were in two minds about accepting an offer.
changed your mind about something you had previously agreed to.
felt unable to back your bosss decision.
dodged an issue.
had to make a snap decision.
gave something a lot of thought before making a decision.
had second thoughts about something which seemed at first to be a good idea.
had a lot of different peoples interest to bear in mind.
had the final say in an important decision.
4. Spend one minute writing down all of the different words you associate with decision. Share
your words with your partner(s) and talk about them.
5. Discussion. With your partner(s), talk about the Japanese proverb which says: "Thinking without
action is a daydream. Action without thinking is a nightmare."
II. Read the text The Decision-Making Process.
Text A. THE DECISION-MAKING PROCESS
Although life isn't always a matter of making decisions, it often seems that way. For
instance, what do you want to do on Saturday night? What should you do during the study
period? What should you do after graduation? You have many opportunities to make choices.
Practically everything costs money or takes time. You don't have an unlimited supply of these
two things, so you have to make decisions about how they are to be used. Making decisions is
an important part of your life.
Decision making is the process of determining which wants and needs will be met at a
particular time. Wise decision makers want to gain the most satisfaction from their limited
income and time. To do so, they must set priorities. How do you determine your priorities?
Which choice will give you the most satisfaction? The opportunity cost is what you give up
when you make one choice over another. Sometimes the opportunity cost is not money or an
item. For instance, you want a university education, right? But you also want the income
from a full-time job. You can't manage both university and a full-time job, no matter how
much you want them. The opportunity cost of getting the education is giving up the full-time job.
In making choices between alternatives, there's obviously more than just knowing what you
give up. Let's see what else goes into the decision-making process.
Values guide you in making decisions. They are like fingerprints: no two people have the
same set of them. People's values affect their goals. For instance, if you set a goal of saving
money for your studies that may show that you value education. Sometimes you may have
goals that do not agree with each other. In case of conflicts, choices must be made.
The decision-making process is a step-by-step procedure of carefully considered
alternatives for making choices. It helps define the nature of alternatives available and how
each alternative will affect you. The opportunity cost is considered. All of these steps are put
together in an organized, logical way. Following the 6-step procedure, you will be able to
make decisions quickly and assumed.
15

Step 1: Identify the Problem. In order to identify the problem consider the following
questions: What prevents you from reaching your goals? What is the problem? Is it your
problem? Can you solve it? Does it need an immediate solution or can it wait? Etc.
Step 2: List the Alternatives. Good choices cannot be made without knowing the
various alternatives or ways to solve the problem. Sometimes people regret their decisions
because they did not consider all the alternatives. However, you cant possibly list all the
alternatives for some problems. Just do the best you can.
Step 3: Determine Pros and Cons. At this step it is necessary to weight the advantages
and disadvantages of each alternative. Setting up a chart or a grid (see table 1) may be helpful
in weighing various alternatives.
Step 4: Make the Best Decision. This step is the whole point of the decision-making
process. If youve listed all your alternatives and have been completely honest about the
advantages and disadvantages of each well, you are as ready as you can be for the next step
in the decision making process. Nevertheless, do not consider any alternative as perfect
solution, consider compromise, i.e. the opportunity cost. Sometimes choices affect other
people: friends, parents, neighbors. Your values and goals will also become part of the
decision-making process.
Step 5. Implement the solution. At this step your decision is only a good intention.
Develop a plan for implementation, step-by-step actions for solving the problem, and set a
timeline.
Decision-making is a key skill in the workplace, and is particularly important if you want to
be an effective manager. Whether you're deciding which person to hire, which supplier to use, or
which strategy to pursue, the ability to make a good decision with available information is vital. It
would be easy if there were one formula you could use in any situation, but there isn't. Each
decision presents its own challenges, and we all have different ways of approaching problems.
So, how do you avoid making bad decisions or leaving decisions to chance? You need a
systematic approach to decision-making so that, no matter what type of decision you have to make,
you can take decisions with confidence. No one can afford to make poor decisions.

Table 1
Problem: You want to get a university education, but you also want the income from a full-time job.

alternatives advantages disadvantages
a. study for a university
degree
1. will get a diploma
2. better opportunities in future
career
3. parents will be happy
1. scarcity of money
2. less free time
3. will depend financially on parents
b. to earn some money from
a full-time job and take it
easy with studies at least for
one year.
1. will earn some money
2. will get some work experience
3. will be financially independent
from your parents
1. will not get a diploma
2. less chances to get promoted
3. it is less exciting than studying
c. study for a university
degree and find a part-time
job
1. will get both a diploma and
work experience
2. will earn some money for
personal expenses
3. parents will be happy
1. income will be less than from a
full-time job
2. will have no free time
3. less time for studies

Post-reading activities:
1. Skim the above text and answer the following questions:
1. What is the relationship between values and goals?
2. Why is understanding your values and goals essential for wise decision making?
3. List the steps in the decision making process.
16

4. Why do some people have difficulty identifying the problem?
5. What mistake is sometimes made when looking at the alternatives to solve a problem?
6. Why will different people faced with the same alternatives make different choices?
7. How should you evaluate a decision that you have made?
8. Why is the decision making skill vital for an effective manager?
9. Do you believe the decision making process should be used for every decision that you need
to make?

2. Scan the text once again. What do the following word combinations refer to?

1. To gain the most satisfaction;
2. To give up one choice;
3. To agree to each other;
4. To ignore or postpone solving a problem;
5. To recognize values.

3. Retell the text using the Decision-Making diagram.
It could be helpful taking a certain problem and analyzing it step-by-step.


Grammar note: Asking Wh-Questions
Wh- Questions allow a speaker to find out more information about topics. They are as
follows:
When?
Where?
Who?
Time
Place
Person
Why?
How?
What?

Reason
Manner
Object/Idea/Action
For the subject pattern, simply replace the person or thing being asked about with the
appropriate
wh-word.
E.g. (Someone has brought this report.) Who has brought this report?
(Something is bothering you.) What is bothering you?
For the predicate pattern, wh- question formation depends on whether there is an
"auxiliary" verb in the original sentence. Auxiliary or "helping" verbs are verbs that
precede main verbs.
If there is no auxiliary and the verb is not "be," add do to the beginning of the sentence.
Then add the appropriate wh-question word. Be sure to "transfer" the tense and number
from the main verb to the word do.
E.g. (You went somewhere.) did you go (past tense) ? Where did you go?

Identify the
problem
List the
alternatives
Determine
Pros and
Cons
Select the
best
alternative
Implement
the solution
Review/learn
from your
experience
17

4. You have probably noticed that the text A is penetrated with questions, special questions.
What is the order of words in those questions? Put them in the following table.
Question word Auxiliary verb Subject Main Verb direct/indirect
object



Make up 3-4 special questions on the text The decision-making process.

5. Discuss the questions in pairs or small groups.
a) Have you ever worked as part of a team to solve a problem?
b) Was your team successful? Why / or why not?
c) What are the advantages of teamwork compared to working on your own?

Language note: Agreeing vs. Disagreeing
Practice problem solving with your colleagues using the following language model:

Problems:
Our problem is (noun)
Our problem is that (sentence)

Solutions:
One solution is to ... (verb)
We could .. (verb)
I think we should (verb)
I recommend that .. (verb)

Agreeing:
I think its a good idea.
I agree with _______________.
I am for ___________________.
That might be the answer

Disagreeing:
Its a good idea but __________.
I disagree with ______ because ____.
I am against it because _________.
The problem with that is _________.
No, thats simply not feasible.
6. Case Study.
a) I magine you are part of the company management. Discuss different ways of tackling
these problems. Respond to one anothers suggestions. Dont forget to use the decision
making diagram too.
1. Someone has been hacking into confidential files on your computer system.
2. You manufacture skis, so demand for your goods is seasonal. Youd like to make
another product, something that sells in the summer, but what?
3. A head-hunter is hunting for the key specialist of your company for several weeks. He is
offering him/her the same job but at a higher salary.
Use the following table as a visual layout for organizing the possible alternatives to the
investigated problem along with their advantages and disadvantages.

18

Problem:
Alternative 1

Alternative 2 Alternative 3
Pros Cons Pros Cons Pros Cons
Solution:
b) Write a letter to the General Manager of the company and give your recommendations in
solving the problem(s). The beginning is written for you.
Dear Mr.Ciobanu,
At the latest meeting, we discussed the problem we are having within the company and
possible solutions to this problem. I am /we are writing this letter to give you our
recommendations
SUPPLIMENTARY READING

Text B. Why Powerful People Make Bad Decisions (March 2,2012)

A study by University of Southern California professor Nathanael Fast has determined that in
the business world, unconstrained power can hinder decision-making. The more power a business
leader thinks they have, the worse they get at calling the shots, new research shows.
"The overall sense of control that comes with power tends to make people feel overconfident
in their ability to make good decisions," Fast said, noting the research aimed to make leaders more
conscious of the pitfalls that they can fall prey to.
The research points to British Petroleum executives who downplayed potential risks
associated with their oil well in the Gulf of Mexico, claiming it was virtually impossible that a
major accident would ever occur. The oil well exploded in 2009, killing 11 workers and costing an
estimated $100 billion in cleanup costs.
"What we found across the studies is that power leads to overprecision, which is the tendency
to overestimate the accuracy of personal knowledge," Fast said.
... Top decision-makers find ways to avoid this problem, Fast said. "The most effective
leaders bring people around them who critique them. As a power holder, the smartest thing you
might ever do is bring people together who will inspect your thinking and who aren't afraid to
challenge your ideas."
The irony: The more powerful leaders become, the less help they think they need, according
to the research.
"Power is an elixir, a self-esteem-enhancing drug that surges through the brain telling you
how great your ideas are," said Adam Galinsky of the Kellogg School of Management at
Northwestern University and one of the study's co-authors. "This leaves the powerful vulnerable to
making overconfident decisions that lead them to dead-end alleys."
(Source: http://www.businessnewsdaily.com/2126-powerful-people-bad-decisions.html)

19

Discussion. Have you ever been overconfident? What made you feel that way: your knowledge, position in
society or school, or something else? How did it influence your decision-making?
III. Evaluation
1. Speak on the following issues:
1. Describe the steps of the decision-making process according to the scheme.
2. Explain what the opportunity cost means in relation to the decision-making process.
3. Describe the relationship between values and goals.

2. Translate the following sentences into English.
1. Urmnd cei ase pasi din procesul de luare a deciziilor, vom reui s gsim calea cea mai
potrivit de soluionare a problemei.
2. Analiza costului de oportunitate este o parte importanta in procesul de luare a deciziilor.
3. Conducerea companiei a luat o decizie dificil referitor la reducerea salariilor top managerilor
intreprinderii.
4. Fiecare alegere implica un cost de oportunitate, pe care trebuie s ni-l asumm.
5. Dupa analiza tuturor alternativelor am renuntat la rezolvarea problemei.
6. Buna alegere nu poate fi facut fra a cunoaste o mulime de alternative sau ci de rezolvare a
problemei.
7. In procesul de luare a deciziilor trebuie studiate legile economice si legile naturii.
8. Un om de afaceri, pe lng cunotine, trebuie s posede si o bun capacitate decizional.
9. Decizia pe marginea nerespectrii drepturilor consumatorului va fi contestat la Curtea Suprem.
10. Stabilii ordinea prioritilor nainte de a lua o decizie ce v vizeaz viitorul.





























20

Unit 3. MONEY TALKS
3.I. Currency Matters
I. Vocabulary

Money [uncountable]- what you earn by working and can use to buy things. Money can be in the
form of notes and coins or cheques, and can be kept in a bank; (rom: bani);
Bank a financial institution that keeps and lends money and provides other financial services;
(rom: banc);
Currency - the system of money that a country uses; syn: money. (rom: valut);
there is hard currency (valut forte) and soft currency (valut instabil).
Euro-zone- the European countries that use the euro as a standard unit of money; (rom: zona euro);
Exchange rate - the rate at which one currency can be exchanged for another;
(rom: rat de schimb);
Purchasing power - the amount that a unit of money can buy; (rom: putere de cumprare);
e.g the leus purchasing power
Debt - a sum of money that a person, organization or country owes; (rom: datorie); opp. credit;
The National Debt - the total amount of money owed by the government of a country;
(rom: datoria public);
Creditor - a person, bank, or company that you owe money to; opp.: debtor;
(rom: creditor debitor);
Austerity - when a government has a deliberate policy of trying to reduce the amount of money
it spends; austerity plan- plan de austeritate;
Bail-out - financial help given to a company that is in difficulty; (rom: ajutor financiar).

The Major Currencies The National Currencies

USD - American dollar $
EUR - Euro
GBP - British Pound Sterling
CHF - Swiss Franc
AUD - Australian Dollar $
JPY - Japanese yen
MDL - Moldovan Leu
RON - Romanian New Leu
UAH - Ukrainian Hryvna
RUB - Russian Rubble
BGN - Bulgarian Lev


Phrases Examples

The single European currency- valuta unic
eurorean
current exchange rate -cursul de schimb
current
to change/convert pounds into euro- a
schimba lire in euro
to be worth sth.- a valora
depreciation/devaluation of the Leu-
deprecierea leului
to be in debt- a avea datorii fat de cineva
to pay back a debt- a rambursa o datorie


The single European currency was
introduced into circulation in 1999.
What is the current rate for the
dollar?
I want to change 100 dollars into
euros.
One rubble is worth 0.03 US dollars.
There was a devaluation of peso in 1997.

The company is in debt.
The company paid back its debt.

21

Vocabulary and speaking activities
1. Complete the bubble network for the word CURRENCY. Add as many other bubbles as you
like.

2. Answer the following money quiz.
1. Name the coins and banknotes used in our country and in three other countries.
2. What does the expression hard currency mean?
3. Where do you convert money?
4. Do you know what FOREX stands for?
5. What is the official exchange rate of national currency against the US dollar today?
6. Name some precious metals. What was the evolution of their prices last month/year?

3. Choose the correct answer.
1. I want 200 worth of Australian dollars. What is the ........... rate, please?
a) currency b) exchange c) market
2. The .......... of the euro has fallen recently.
a) worth b) price c) value
3. In order to buy an expensive car Mr. Nothing-in-the-Fridge had to get a large ....... from the
bank.
a) debt b) loan c) capital
4. He was paid the yen .............. of 1000.
a) devaluation b) currency c) equivalent
5. Inflation is when a dollar is not ............ a dollar anymore.
a) expense b) worth c) value
6. Research suggests that the pound is over-............
a) valued b) expensive c) supported

4. Look into your dictionaries to find collocates, other meanings, synonyms for the words
single and currency.
Single Currency
Share your findings with your colleagues.

5. Discussion.
What springs to mind when you hear the word currency?
What do you think of your national currency?
Do you think the U.S. dollar is decreasing in importance in the world?
What do you think of the idea of a single world currency?
CURRENCY
Japan
____
India
_____

Mexico
______

China
_____
Denmark
_______
Saudi
Arabia
Riyal
Brasil
____
Hun
gary
____
22

6. Look at the articles headline and guess whether these sentences are true (T) or false (F):
a. The Chinese renminbi will soon overtake the U.S. dollar as the world currency. T / F
b. In some countries ATMs already release bars of gold instead of paper money. T / F
c. IMF research revealed that the dollar is not the force it once was. T / F
d. The economists predict the death of the dollar in 25 years time. T / F
II. Read the article What will replace the dollar as global currency?
In London last week some smart businessmen launched the countrys first gold ATM. Stick in
your credit card or some cash, and the machine will swap your plastic or paper money for a small
bar of the real stuff.
That may well tell us that London remains, as it always has been, a place where monetary
entrepreneurs flourish.
But it tells us something else as well. The role of money in the global economy is one of the
big themes of this decade. Gold is on the up. The euro is falling apart. And, perhaps most
importantly of all, the dollar is in long-term decline.
The crisis in the euro zone may have distracted our attention from it for a while, but the
relentless dethroning of U.S. currency the dollar as a global reserves currency is proceeding apace.
There were two further pieces of evidence in the last few days. Data released by the
International Monetary Fund showed the percentage of dollars held by central banks in their
reserves is still declining year on year. And a UBS survey of investment institutions with $8 trillion
under management showed a majority no longer think the dollar will be the reserve currency in 25
years time.
There cannot be much dispute that the dollar is losing its central role. And yet there is still
very little agreement on what will replace it. Gold? The Chinese renminbi? The IMFs quasi-
money, the special drawing right? Or something no one has thought of yet. No one really knows.
If there is one big call investors need to get right over the next few years, it is surely
answering that question.
The figures make it clear enough that the dollar is not the force it once was. The proportion of
dollars held by central banks around the world had fallen to 60.7% by the end of the first quarter of
this year. That compares with 61.8% at the same point last year. ..
Measured over a decade, the trend is clear enough. Go back to 2001, and the proportion of central
bank reserves held in dollars was 71%. It only goes down a bit every year. But over time, that starts
to add up. Once the dollar drops below 50% of central bank holdings, we can officially declare that
its days as the reserve currency are done. It looks like that will happen some time between 2015 and
2020 but it could well be sooner.
(Source: http://articles.marketwatch.com) July 07, 2011|Matthew Lynn

Post-reading activities

1. Look back at the article and make up 3 questions. Ask your classmates your questions.
2. When you read an article, you can often guess the words you do not know from the
context. Find words or expressions in the above article which have the following
meanings:
1. (n.) a general description or report about a particular subject or situation
2. (v.) to exchange
3. (adj.) apparently but not really; seemingly
4. (adj.) continuing in a severe or extreme way
5. (adv.) quickly
23

3. Pair work. Discuss with your colleague the advantages and disadvantages of a single world
currency and write them in two columns.
Share your ideas with other classmates / groups.

4. Writing

a) Write a magazine article about a single world currency. Include imaginary interviews
with people in favor of and against this idea.

b) Write a letter to Americas head of the Treasury. Ask him three questions about the U.S.
dollar. Give him three reasons why the dollar should no longer be the sole reserve currency.
Read your letter to your partner(s) in your next lesson. Your partner(s) will answer your
questions.

5. Read the article and say if the following statements are true or false. Give reasons for
your choice and correct any false statement.

According to the data from the survey performed on a sample of 1400 persons from 24
towns from Moldova by the Magenta Consulting company in September 2010 (error margin +/-
2,6%), the Moldovan Leu is the most suitable currency to make savings. 51% of the respondents
answered that they prefer to save money in national currency. It is a long time since Euro has
entered the life of the Moldavians becoming the currency for weddings, vacations offers of
travel agencies and estimating the cost of apartments. An important part of Moldovans work in
the countries of European Union, where the operating currency is Euro, that is why 46% of the
Moldovans trust more this currency for their savings. The U.S. dollar decreased its positions in
the world economy and in the economic views of Moldovans less than a third of them would
entrust their savings to it (27%). The U.S. dollar is followed by the Romanian Leu (9%),
Russian Ruble (1%) and Ukrainian Hrivna (less than 0,5%).
It is very interesting to observe the changes in preferences of those who know to make
savings: the younger generations are the most skeptical toward the national currency. In this
way the share of those who would prefer to make their savings in Moldovan Leu is lower in the
segment of those of 14-24 years than in the segment of mature persons: 42% in case of
teenagers and 48% in the case of young people.
(Source: http://consulting.md/eng/articles/leul-valuta-de-incredere)

__ 1. The Moldovans do not trust their national currency.
__ 2. Less Moldovans entrust their savings to Euro than to U.S. dollar.
__ 3. None of the respondents prefers saving money in one of our neighbors national currency.
__ 4. Young people trust the Moldovan Leu less than mature persons.

6. Translate the following passage from Romanian into English.
Banca Naional a Moldovei a stabilit pentru mine, 5 octombrie, un curs oficial de schimb
pentru un euro de 16 lei, iar pentru un dolar american - de 12 lei i 35 de bani.
Astzi, la casele de schimb valutar, dolarul era cumprat cu 12 lei i 27 de bani i vndut cu 12
lei i 34 de bani. Un euro era cumprat cu 15 lei i 82 de bani i vndut cu 15 lei i 92 de bani.
La bursele internaionale, moneda unic european atinge cotaia de 1 dolar i 29 de ceni.
Pe piaa internaional, o uncie de aur cost 1779 de dolari, argintul este vndut cu aproape 35
de dolari. Platina este tranzacionat la un pre de 1694 de dolari, iar un baril de petrol 88 de
dolari.
http://www.jurnaltv.md/#cursul-valutar-pentru-5-octombrie-398823

24


Grammar Note: Expressing Numbers in English
1. Numbers
Notice that hundred, thousand, million is NOT followed by an s, these words are
singular.
e.g. 20,246,978 - twenty million two hundred forty six thousand nine hundred seventy eight;
numbers are said individually after the decimal point; e.g. 2.36 - two point three six;
a comma is used to separate thousands and hundreds, while a full stop is used to denote a
decimal point.
2. Fractions. Read the top number as a cardinal number, followed by the ordinal number + s
e.g. 3/8 - three eighths, 2/5 - two fifths; but: =one quarter, one half, 1/5 = one fifth,
3. Ratios and percentages
e.g. 0.3% - nought / zero point three percent
2:1 - two to one
4. Talking about calculations in English
+ (plus) 2 + 1 = 3 (two plus one equals three)
- (minus / take away) 5 3 = 2 (five minus three equals two)
x (multiplied by / times) 2 x 3 = 6 (two multiplied by three equals six / two times three
equals six)
/ (divided by) 6 / 3 = 2 (six divided by three equals two)
5. Saying 0: Depending on the context, we can pronounce zero in different ways:
2-0 (football) = Two nil
604 7721 (phone number) = six oh four
0.4 (a number) = nought point four / zero point four
0C (temperature) = zero degrees
7. Practice reading numbers.
1. 3 .087;
2. 234,700,000;
3. ;
4. 8 120 412;
5. 75%;
6. 2/3;
7. tel. 0171 895 7056
8. 28 C or 72 F
9. 2,450,000;
10. 8/13;
11. 2-1;
12. ;
13. 17
14. 90
15. 11.09.2001

8. Write in letters the following arithmetical operations and solve them:

0.191- 0.147=
5,018 +1,982=
128:4=
5x20=
6 - 6=
9 =
x 2=
- =


SUPPLIMENTARY READING

Discussion
1. Have you lent money to a friend or family member? Did you get it back? What about
countries?
2. What do you think is the best way to deal with the financial problems in Greece?
3. Work Hours: Can countries that have a shorter workweek stay competitive?
4. What do you think will happen in Greece in the next year?

25

Text B. Eurozone crisis explained

After months of refusing to countenance the possibility of Greece leaving the euro, eurozone
politicians slowly began to acknowledge there may be no option but to let the country go.
Why is Greece in trouble? Greece was living beyond its means even before it joined the euro.
After it adopted the single currency, public spending soared.Public sector wages, for example, rose
50% between 1999 and 2007 - far faster than in other eurozone countries.
And while money flowed out of the government's coffers, its income was hit by widespread
tax evasion. So, after years of overspending, its budget deficit - the difference between spending
and income - spiralled out of control.
When the global financial downturn hit, therefore, Greece was ill-prepared to cope. Debt levels
reached the point where the country was no longer able to repay its loans, and it was forced to ask
for help from its European partners and the International Monetary Fund (IMF) in the form of
massive loans. In the short term, however, the conditions attached to these loans have compounded
Greece's woes.
What has been done to help Greece? In short, a lot. In May 2010, the European Union and
IMF provided 110bn euros ($140bn: 88bn) of bailout loans to Greece to help the government pay
its creditors. It soon became apparent that this would not be enough, so a second, 130bn-euro
bailout was agreed earlier this year.
As well as these two loans, which are made in stages, the vast majority of Greece's private
creditors agreed to write off more than half of the debts owed to them by Athens. They also agreed
to replace existing loans with new loans at a lower rate of interest.
However, in return for all these loans, the EU and IMF insisted that Greece embark on a major
austerity drive involving drastic spending cuts, tax rises, and labour market and pension reforms.
These have had a devastating effect on Greece's already weak economic recovery. Greece has
already been in recession for four years. Without economic growth, Greece cannot boost its own
income and so has to rely on aid to pay its loans.
However, European leaders are hoping that the Greek economy will slowly begin to recover,
thanks to the wide-ranging reforms insisted upon by the EU and IMF, allowing Greece to make its
repayments and once again, stand on its own two feet.
Why does this matter for the rest of Europe? It matters a lot.
If Greece does not repay its creditors, a dangerous precedent will have been set. This will
make investors increasingly nervous about the likelihood of other highly-indebted nations, such as
Italy, or those with weak economies, such as Spain, repaying their debts. If investors stop buying
bonds issued by other governments, then those governments in turn will not be able to repay their
creditors - a potentially disastrous vicious circle.
To combat this risk, European leaders have agreed a 700bn-euro firewall to protect the rest of
the eurozone from a full-blown Greek default.
Equally, if banks that are already struggling to find enough capital are forced to write off
money over and above that which they have already agreed to, they will become weaker still,
undermining confidence in the entire global banking system. For example, Greece owes French
banks 41.4bn euros, German banks 15.9bn euros, UK banks 9.4bn euros and US banks 6.2bn euros.
This problem would be exacerbated by savers and investors taking money out of banks in
vulnerable economies, such as Greece, Portugal and Spain, and moving it to banks in safer
economies such as Germany or the Netherlands. This could lead to more banks defaulting on their
loans.
These potential scenarios would be made immeasurably worse if Greece were to leave the
euro. The country would almost certainly reintroduce the drachma, which would devalue
dramatically and quickly, making it even harder for Greece to repay its debts.
(Source http://www.bbc.co.uk/news/business-13798000, 18 June 2012)

Discussion. Stereotyping: Do national stereotypes hold any truth? If so, how much?
26


Read the opinions of two people. Do you agree with them? Why or why not?
(David, Brookline, MA, on Greece)
A few Greek friends I know depend on their girlfriends to support them. They once said, "why do people
work so hard?" when they saw people in other countries work from 9 to 5. They also said that after a long
lunch in Greece, they may or may not return for work in the afternoon. Greeks are lazy. When I went there
on vacation, people were just sitting around drinking ouzo.
( Josh on Public Workers)
For some reason public workers seem to think they should be protected from the dangers private workers
face, for example, lowered salaries or cuts when a company is having problems, being fired for not
performing, going above and beyond to make the customer happy, etc. The public workers who are striking
are being babies.

What is the stereotype of people from our country?

Unit 3.2 Budgeting

I. Vocabulary
Personal Income & Expenses
Money Management the process of planning how to get the most benefit from your money;
(rom: gestionarea banilor);
Budget - amount of money available or needed for a specific use; (rom: buget);
I ncome- money received, especially on a regular basis, for work or through investments;
(rom: venit);
Deduction - an amount that is or may be deducted from something, especially from taxable income
or tax to be paid; e.g. tax deductions; (rom: deduceri);
Expenses - the amount of money that you spend for a particular purpose; (rom: cheltuieli);
Savings - all the money that you have saved, especially in a bank; (rom: economii);
Assets - the things that a person or a company owns, that can be sold to pay debts; (rom: active);
Liabilities (n.)- the amount of debt that must be paid; (rom: passive);

Ways of Paying
(in) Cash - actual money paid in coins or bank notes (not cheques); (rom: numerar);
(by) Cheque- written order to a bank to pay the stated amount from one's account; (rom: (prin) cec)
(by) Credit card - a small plastic card issued by a bank, building society, etc., allowing
the holder to purchase goods or services on credit; (rom: carte de credit).
Coin - a piece of metal used as money; (rom: moned);
Banknote- a piece of paper money; ; (rom: bancnot);
Cheque book - a book of printed cheques ready for use; (rom: carte de cecuri);
ATM/ cash machine- automatic machine from which a bank customer may withdraw mone
(ATM stands for Automated Teller Machine); (rom: bancomat).


27

Vocabulary and speaking activities

Making Payments
1. Have a look at the following easily confused words.

salary wages charge fees fare commission tip

a) Which one describes the money you pay
1. to thank someone for their services (for example, a waiter or waitress)?
2. to an agent or sales person?
3. for a service (for example, electricity, postage)?
4. for a professional service (for example, to a lawyer)?
5. for travelling?
6. to your staff every week?
7. to your staff every month?
b) Now use the same seven words to complete the following sentences.
1. The taxi.. was 18 Euro and I gave the driver a 4 Euro . .
2. The orders of over 2,000 pieces delivery is free of .
3. The builders receive their weekly .. in cash.
4. In addition to your basic .. you will receive a 25% on all
goods sold.
5. She is a good accountant but her are high.
2. Complete the sentences below by filling in the blanks:
1. Do you want to pay...... cheque? (on, with, by, at)
2. People who are employed have to pay ..... . (wages, taxes, rate, salary)
3. Many people buy things ...... credit. (in, by, at, on)
4. If you buy twenty we can give you a ..... . (salary, loan, discount, cheque)
5. If we .... some money each month, we will have enough to buy a house. (save, inherit, pay,
spend)
6. He has to pay ... the loan for his university studies. (on, off, in, up)

3. Confusing verbs lend and borrow. Complete the sentences below by filling in the blanks:
1. Can you ......... me some money?
2. If the bank agrees to ........ me some money, I can start my own business.
3. If you ........ money, you must pay it back.
4. He ......... 1000 Euro last year and he hasnt pay it back. Ill never ...... him money again.
5. You could ........ money from the bank to buy a new car.
6. He has already ........... you enough. You should not ask for more.
4. Pair work. Discuss with your colleague your own financial situation. Why would keeping a
budget be important in managing your money? Do you know of a family member or friend who got
into debt? Make a list of suggestions for him/her on how to manage money better to avoid debts.
Use the following formulas:

I think you should. . . I don't think you should. . .
Maybe you should. . . Why don't you. . ..
28


II. Read the text Steps in Planning a Budget.
Money, like time, is limited. The process of how to get the most of your money is called
money management. Good money management will help prevent you from having too much
month left at the end of your money.
A budget is a plan for using your money in a way that best meets your wants and needs. It
includes a record of your probable income, your planned expenses, and your planned savings over a
certain period of time. Planning a budget is easier if you divide the process into several steps.
Follow the five steps listed here as you plan your budget: (1) set your goals; (2) estimate your
income; (3) estimate your expenses; (4) plan for savings; and (5) adjust your budget.
Set goals. Ask yourself a number of questions as you prepare to set your goals. What do you
want to accomplish in the next month? the next year(s)? What is important to you? Are your goals
practical? A budget should tell you which goals you can meet with the amount of money you have.
Estimate income. Knowing how much money you have available is an important step in the
budgeting process. Your income is the actual amount of money you earn or receive during a given
time period.
If you have a job you may remember your surprise at the amount of you first paycheck. Your
gross pay, the total amount of money you earned for a specific time, may have seemed like a lot of
money. For example, if you worked 20 hours a week at $4 an hour, your gross pay would be $80 for
the week. But your gross pay is reduced by various deductions, such as taxes, insurance payments,
retirement payments, union dues, and others. Your take-home pay, then, is your gross pay minus
deductions. If there are other family members adding to income, include their take-home pay as
well in figuring total income. If part of your income consists of tips, dont overestimate how much
you expect to receive in tips when you plan your budget. Keep your budget as accurate as possible
by making your estimates honest.
Estimate expenses. Expenses are of two types. Fixed expenses are those expenses that must
be paid regularly. Although the amount of fixed expenses may change from time to time, ordinarily
it is the same over long periods. For instance, rent or mortgage payments, insurance premiums, and
taxes are not only must be paid regularly, but they usually are set at a fixed amount. You cant
reduce or avoid such fixed expenses without creating problems. Variable expenses are those over
which you have more control. They may include such expenses as telephone bills, food,
entertainment, and gifts. The amount of these expenses usually varies from month to month.
In cases when the all estimated expenses of families are greater than or equal to estimated
income, they must find ways to increase their income.
Plan for savings. A budget really isnt complete without a regular plan for savings. Not only
are such savings valuable for a rainy day, but they also protect against unexpected expenses and
those expenses that are higher than you had estimated.
Balance and adjust the budget. The most difficult step in the budgeting process is
balancing and adjusting the budget. The total estimated income for the budget period- usually a
month or a year- should equal the total estimated expenses for the same period, plus the savings. If
total estimated expenses and savings are greater than total income, you will have to adjust the
budget to make some changes.
29

An important principle of budgeting is flexibility. You should never consider a budget to be
permanently fixed or unchangeable. As different circumstances arise, budgets can and should be
changed. Of course, you should have good reasons for changes.
Preparing a budget will not instantly and completely solve all your financial problems.
However, it can help individuals and families understand where their money goes.

Post-reading activities

1. Answer the following questions:

1. What is the purpose of a budget?
2. What are the advantages of using a budget?
3. Should a budget ever be changed?
4. List the steps that should be followed in planning a budget.
5. How are fixed expenses different from variable ones? Give examples of each.
6. If your budget does not balance, what two possibilities for change do you have to make it
balance?

2. Discussion. What are common monthly expenses for a student living on his/her own, including
student or car loans? Write a list of your expenses, figure out how much money you spend on
each area, and what percentage of your income pays for each.

3. Before reading the dialog Money Matters between Ron and his sister Nancy match the
money idioms with their meaning.
1. in the red
2. pinch pennies
3. flat broke
4. make ends meet
5. go Dutch
6. be strapped for cash
7. keep track of
8. in the hole
9. be loaded
10. pay through the nose
a. to be overdrawn
b. having a lot of money
c. to have no money
d. to barely manage on the money you have
e. in debt
f. pay an excessive amount of money
g. to pay for yourself in a bar or restaurant
h. have no money available
i. be careful with money
j. keep a record of

4. Read the dialog Money Matters
Ron: Uh, could I borrow a few bucks until payday? I'm a little strapped for cash.
Nancy: Uh, yeah, I guess, but I'm pinching pennies myself, and you still owe me $20 from last
week. And mom and your friend Ron said you borrowed money from them this past week.
How ARE things going anyway?
Ron: Well, not very well. To be honest, I'm really in the hole, and I can't seem to make ends meet
these days.
Nancy: What do you mean? I thought you landed a great job recently, so you must be loaded.
30

Ron: Well, I do have a job, but I've used my credit cards to pay off a lot of things recently, but now,
I can't seem to pay the money off.
Nancy: Uh, do you have a budget? I mean, how do you keep track of your income and expenses?
Ron: Well, when my money runs out, I come to you. Of course. No, but I guess I should have some
financial plan.
Nancy: Well, let me see if I can help you. How much money do you spend on your apartment?
Ron: Uh, I pay $890 on rent for the studio apartment downtown . . . not including utilities and cable
TV. But the place has an awesome view of the city.
Nancy: Uh, $890! Why are you paying through the nose for such a small place when you could find
a cheaper one somewhere outside of the downtown area?
Ron: Yeah, I guess.
Nancy: Okay. How much money do you spend on food a month?
Ron: Hmmm. I'm not really sure. I think I spend around $600. Well, I go out to eat at least four
times a week, so those expenses add up. I just don't enjoy eating alone...
Nancy: Well, I can understand that, but perhaps you ought to buy some microwaveable meals you
could prepare at home.
Ron: Well, I guess I could.
Nancy: And entertainment?
Ron: Well, I spend a few dollars here and there on basketball and movie tickets, a concert or two,
and ballroom dance lessons. Well, thats about $400 or so.
Nancy: Or so? No wonder you're having money problems. You can't just blow your money on
things like that! And what about transportation?
Ron: Oh, I commute to work every day in my new sports car, but I got a great deal, and my
monthly payments are only $450. Come outside and take a look. We can go for a spin!
Nancy: No, I've heard enough. You've got to curb your spending, or you'll end up broke. I suggest
you get rid of your credit cards, cut back on your entertainment expenses, and sell your car. Take
public transportation from now on.
Ron: Sell my car?! I can't date without a car. What am I going to say? "Uh, could you meet me
downtown at the bus stop at 7:00?" Come on!
Nancy: And you need to create a budget for yourself and stick to it, and start with paying off your
bills, starting with me. You owe me $50 dollars.
Ron: Fifty dollars! Wait, I only borrowed $20 from you last week. How did you come up with $50?
Nancy: Financial consulting fees. My advice is at least worth $30!
(Source: http://www.esl-lab.com/expense/expensefra.htm)
5. Discussion Questions.
1. What are the two young people discussing about?
2. Which sentence would identify the man's current situation?
3. How would you describe the man's apartment?
4. Which sentence best describes the man's dining practices?
5. What does the woman suggest the man do at the end of the conversation?
6. Case study.
Sophie Owl is 22 and she has just got her first job after university. Its an important new phase
in her life. Unfortunately, she has a problem. Her salary isnt high, she has large debts after
31

university and she finds it difficult to manage her spending. You are a personal finance analyst.
Give Sophie some useful advice.

III. Evaluation

1. Speak on the following issues:
List the steps that one should follow in planning a budget.
Explain how fixed expenses are different from the variable ones.
What is the importance of budgeting?

2. Translate the following sentences into English.

1. Venitul reprezinta rezultatul gestionarii corecte a banilor.
2. Majoritatea oamenilor de afaceri prefera sa utilizeze cartea de cecuri pentru diverse
cheltuieli.
3. Firma a avut niste cheltuieli neprevazute.
4. Am retras de la bancomat suma de bani necesara pentru cheltuielile curente.
5. Pasivul firmei urmeaza s se reduc n urma achitrii creditului bancar.
6. n prezent contrafacerea e o problema majora a societatii.
7. Firmele noi ncearca sa genereze un profit mai mare pentru a putea investi din nou o parte
din acesta.
8. Trebuie sa reducem cheltuielile pentru a face fa crizei.
9. Compania are datorii fa de furnizorii de materia prim.
10. Valuta unic european a fost introdus n circulaie n 1999.
11. Bugetul municipal precar din acest an nu a permis implimentarea unor proicte vitale penru
urbie.
12. Banca Naional a Moldovei a stabilit pentru mine, 5 octombrie, un curs oficial de schimb
pentru un euro de 16 lei, iar pentru un dolar american - de 12 lei i 35 de bani.

















32

Unit 4. HOW THE MARKET WORKS

I. Vocabulary
Market one of a variety of systems, institutions, procedures and infrastructures where businesses
sell their goods, services and labor to people in exchange for money; (rom: pia);
Price the amount of money given or asked for when goods or services are bought or sold;
(rom: pre);
Demand the need or desire that people have for particular goods and services; (rom: cerere);
Supply an amount of something that is available to be used; (rom: ofert);
Surplus an amount of something that is more than what is needed or used; syn: excess;
(rom: excedent, surplus);
Deficit - insufficiency of something that you need; (rom: deficit);
I nflation a period of increased spending that causes a rapid rise in prices; (rom: inflaie);
Consumer someone who buys and uses products and services; (rom: consumator);

Features of the Market Economy
Private enterprise system (capitalism) - the economic system in which private businesses are
allowed to compete freely with each other, and the government does not control industry;
(rom: sistem economic privat);
Free enterprise- the principle and practice of allowing private business to operate without much
government control; (rom: system economic bazat pe libera iniiativ);
Profit money that one gains by selling things or doing business, after the costs have been paid;
(rom: profit); opp: loss (rom: pierdere);
Competition the people or groups that are competing against each other, especially in business or
in a sport; (rom: concuren);
Freedom of choice the consumers opportunity to make both good and bad choices;
(rom: libertatea alegerii).

Types of Markets
Physical retail market ( e.g. local farmers' market)- pia de vnzare cu amnutul
Non-physical market (e.g electronic commerce)- pia non-fizic
Labor market- piaa muncii
Domestic market foreign market - piaa intern pia extern
I nternational currency market- piaa valutar internaional
Commodity markets- bursa de marfuri
Stock markets, for the exchange of shares in corporations- bursa de valori
I llegal or black market (the market for illicit drugs, arms or pirated products), etc.- piaa
neagr
Specialized verbs
To market a product- a vindeun produs
To demand ones money back- a-i cerebanii napoi
To supply a factory with spare parts- a aproviziona o uzin cu piese de schimb
To price goods- a stabili preul bunurilor
To consumeless- a consuma mai puin
To compete for a market share - a concura pentru o cot mai mare de pia
To grant/offer a discount- a oferi o reducere

33

Specialized adjectives
Competitive, marketable, consumable (goods), productive, profitable

Market Trends Collocations
Adj.- Noun Verb - Adv./Noun
a dramatic increase- o cretere dramatic
a sharp drop/reduction-o cdere brusc
a slight fall- o scdere uoar
a steady rise- o cretere constant
a substantial raise- o cretere substanial
a peak a trough- un vrf o depresiune
a gradual decline- un declin treptat
a negligible fluctuation- o fluctuaie
neglijabil


to increase dramatically a crete dramatic
to decrease substantially- a descrete substanial
to remain steady- a rmne stabil
to rise gradually- a crete treptat
to fluctuate widely a fluctua intens
to plunge to a low point -a cdea dramatic
to spike at X to deep at Y a culmina a adnci
prices boost p. slump preurile cresc descresc brusc
losses double looses halve pierderile se dubleaz
se njumtesc
to soar/to rocket wages- a ridica substanial salariile

Vocabulary and Speaking Activities

Pronunciation Note: The word increase can be a noun or a verb. The stress falls on the first
syllable if it is a noun (a thing) and on the second when it is a verb (an action).
E.g. We need an increase in output.
We need to increase our output.

1. The following words can be both nouns and verbs. Try saying each word twice changing
the stress.
decrease import export
progress report record

2. Study the words in bold print in each of these sentences. Write whether it is a noun or a
verb. Mark which syllable is stressed.
E.g. We expect economic activity to increasesharply in the next quarter.
verb in/crease

1. Wheat is one of the country's chief exports.
________ - ex/ports
2. The negotiations are providing difficult. We are making very little progress.
________- pro/gress
3. The US is concerned that Japan imports so few consumer goods.
________- im/ports
4. Id like you to record my objection to this proposal in the minutes of the meeting.
________ - re/cord
5. The world energy consumption is expected to decrease from 70% to 60% this year.
________ - de/crease
6. The company exports tuna to the US.
________ - ex/ports
7. We're hoping to progress the project more quickly next week.
________- pro/gress
8. Martens gave a report on his sales trip to Korea.
________- re/port

34

3. Translate the Romanian word combinations given in the brackets into English.

1. There is a (scadere uoar) in the company shares.
2. According to the census there is a (cretere dramatic) in the population aged over 65.
3. The graph showed the (punctele culminante i de declin) of activity.
4. The rate of inflation (a cresut constant) for the first few months of the year but theres been a
(uoar descretere) recently.
5. Property prices will (rmn constante) for the next few months.
6. The deer population has (crescut substanial) in recent years.
7. The market for home computers has (sczut puternic).

4. Match the English sentence with its Romanian equivalent.

1. The new product is marketable.
2. Sales in the home market rose by 22%.
3. He sells retail and buys wholesale.
4. The company has been put on the
market.
5. The marketing manager has decided to
start a new advertising campaign.
6. This soap has just come onto the
market.
7. This product is being marketed in all
European countries.
a. El cumpr n vrac i vinde cu amnuntul.
b. Acest sortiment de spun tocmai a
nceput s se gseasc de vnzare pe pia.
c. Firma a fost oferit spre vnzare.
d. Vnzrile pe piaa intern au crescut cu
22%.
e. Noul produs este vandabil.
f. Acest produs este vndut n toate rile
europene.
g. Directorul de marketing a decis nceperea
unei campanii noi de publicitate.


5. Discuss with your colleague changing trends in the economy of Moldova. Use adjective
and adverb collocations to describe the following issues:
1. Property prices
2. The rate of inflation
3. The number of young specialists unemployed
4. Prices on gas, electricity.

Write a passage according to the model.
Property prices rose steadily for the first three months of the year, but there has been a
slight fall recently. I think they will remain steady for the next few months.
The number of transactions has been reduced by 2.3% compared to the same period of the
previous year.

II. Read the text The Open Market.
The term market, as used by economists, is an extension of the ancient idea of a market as
a place where people gather to buy and sell goods. Formerly, part of a town was kept as a
marketplace, and country people would come in on market-days to buy and sell. Markets today
need not however be located in any fixed place: the sugar market and other commodities market
are not geographical locations, but simply sets of conditions which permit buyers and sellers to
work together.
In a free market, competition takes place among the sellers in order to sell their goods at the
best possible price, and among buyers to obtain what they want at a price which suits them.
Such competition influences prices.
35

Producers must receive a price for their goods and services that will cover their costs and
provide a profit in order to stay in business. They look at price as a barometer that tells them
how much of a good or service to produce. Economists talk about the law of supply which states
that the higher the price, the more producers will supply; the lower the price, the less they will
supply. For instance, if the prices rise for a particular commodity, the rise will of course
encourage producers to make more. On the other hand, if prices fall either locally or throughout
the world, producers will reduce production. This can result in serious difficulties for many
producers, and may cause them to go out of business completely. Over-production or surplus of
any commodity can also create difficulties, because it can lead to a glut on the market, which
may cause prices to fall sharply.
Supply can be adjusted to market conditions. In such instances supply is said to be elastic,
because it can be increased or decreased rapidly in response to market prices.
Elasticity of supply, as a response to changes in price, is related to demand. Demand is the
amount or quantity of goods and services consumers are willing and able to buy at various
prices. We can say, demand is indicated by our willingness to offer money for particular goods
and services.
The law of demand states that consumers will generally buy less of an item at a higher
price than at a lower price. Demand is inelastic when a good is regarded as a basic necessity
(food, clothes, shelter), but particularly elastic for non-essential commodities (holidays, parties,
PCs, etc.).
The market has a lot of cause-and-effect features to it. There is no governing board that
determines the price of an item, the amount to be produced, or the amount that will be
demanded by consumers. The price goes up and down because of the activities of thousands of
consumers and producers. It is a two-way street: consumers and producers activities not only
affect price, but those activities are also affected by the price.
Adam Smith, the noted eighteen-century economist, described the cause-and-effect
relationship of the market as the invisible hand at work. What he meant was that these
changes in the market come about automatically as a result of producers and consumers
following their own self-interests.

Post-reading activities
1. Answer these questions, basing your answers on the text.
1. What is a modern market?
2. What does competition influence?
3. What do we do when we exercise choice?
4. What is the elasticity of supply a response to?
5. What serious effect may a fall in prices have on some producers?
6. How is demand indicated?
7. What is meant by invisible hand in relation to market?

2. Multiple choice exercise. For each sentence, choose the ending (a,b,c) which seems to
you to correspond most closely to the information given in the text.

1. Demand is inelastic
a. because prices fall and rise.
b. when goods are regarded as basic needs.
c. when there is shortage of goods on the market.
36

2. According to the law of supply
a. a rise in prices tend to reduce supply.
b. over-production will encourage new producers to supply.
c. the higher the price, the more producers will supply.
3. Prices tend to fall sharply when
a. there is a glut on the market.
b. producers reduce production.
c. the invisible hand pushes them up.
4. Profit is the reason
a. a person takes the risk of starting a business.
b. the sellers sell their goods at the lowest possible price.
c. country people go to the market on market-days.

3. An often-quoted passage from The Wealth of Nations is:
It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner
but from their regard to their own interest. We address ourselves not to their humanity but to their
self-love and never talk to them of our own necessities but of their advantages.
Use the quotation as a basis for discussion.

Language Note: Reporting Changes
When stating the cause of something or the reason why something happened, people often use
the expressions due to or because of followed by a noun, gerund, or a noun clause. Here are
some examples.
The delivery was delayed due to rain. (rain = noun)
He was dismissed because of what you done. (what you done = noun clause)
In a business setting, these expressions can be used to explain why changes took places in the
company. Here are some more examples:
Sales fluctuated due to a price war among competitors.
Airfares increased dramatically because of rising oil prices.
(Source: http://bogglesworldesl.com/reporting.htm)

4. Use the words in the boxes and the charts to complete the cloze activities below:

rose dramatically
stabilized
maximum
minimum
increased slightly
slight dip
peaked
levelled off
fluctuated wildly

From week 1 to week 5, profits _______________________. Then from week 6 to week 8, profits
_______________________ and _____________________ at 3.0 million at week 8. From week 8
to week 15 profits ____________________ with a _______________________ at week 11. Then
from week 15 to week 21 profits _______________________ with a _______________________
37

of 3.5 million at week 16 and a _______________________ of 2.2 million at week 17. From week
21 to week 23, profits _______________________ at 2.8 million.



increased gradually
dropped substantially
minimum
spike
decreased slightly
maximum
fluctuated mildly
bottoming out

From week 24 to 28, profits _______________________ and then from weeks 29 to week 36,
profits _______________________ with a _______________________ at week 33 of 4.2 million.
From week 37 to week 40, profits _______________________, _______________________ at 1
million at week 40. From week 40 to week 46, profits _______________________ with a
_______________________ of 1.2 million and a _______________________ of 0.8 million.

5. a. Read the dialog and fill in the table.

A: Hi. John.
Do you have a moment?
Can I talk to you for a minute?
B: Sure. What do you want to talk about?
A: Well, Ive finished the annual report on profits, and I thought you might like to
take a look at it.
B: Oh! Good! Ive been waiting for that. Listen, Im a little busy right now so Ill
have a look at it later. But, would you mind giving me a quick summary?
A: Id be happy to. (A gives a summary of the report). In the first quarter, profits decreased
slightly because of rising costs and decreased sales. In the second quarter, profits increased
dramatically due to decreased costs and rising sales.
In the third quarter, profits fluctuated mildly because of fluctuations in sales, revenues, and
costs.
In the fourth quarter, profits increased slightly due to strong holiday buying offset by rising
costs. (Source: www.bogglesworldesl.com/businessESL.htm)

Indicator 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Profits

Decreased slightly

rising costs
decreased sales

Due to
Raw material costs
Due to
Distribution costs
Due to
38


b. Pair work. Continue the above dialog discussing the annual report for the following
corporate indicators:
a) Raw material costs
Hint: Events that influenced raw material costs.
1st Quarter: Inflation
2nd Quarter: Entry of new supplier in market.
3rd Quarter: Price war among suppliers.
4th Quarter: Exit of old supplier from market.

b) Distribution costs
Hint: Events that influenced distribution costs.
1
st
and 2nd Quarters: Inflation.
3rd Quarter: Speculation in oil markets.
4th Quarter: Fuel shortages.

Grammar note. Verbs Followed by Gerund and by I nfinitive
Gerunds and Infinitives are two different forms of verbs.
Some English verbs can be followed by an infinitive and some can be followed by a gerund.
A gerund is a noun made from a verb by adding ing.

Compare these sentences.
Our competitors keep on reducing their pieces.
NOT Our competitors keep on to reduce their
pieces.
Keep is followed by a gerund.
We hope to achieve better results next year.
NOT We hope achieving better results next
year.
Hope is followed by an infinitive.

Certain verbs can be followed by gerunds or infinitives, but their meaning change.
E.g. I stopped writing the report.= I was writing the report, than I stopped.
I stopped to write the report.= I stopped what I was doing in order to write the report.

Verbs Followed by Gerunds avoid, cant help, complete, discuss, delay, deny, dont mind,
give up, enjoy, finish, keep, like, mind, miss, risk, postpone,
practice, prevent, quit, regret, recommend, suggest, understand
Verbs Followed by Infinitives agree, ask, choose, decide, fail , happen, hope, manage, let,
offer, prepare, promise, volunteer, wait, want, wish
Verbs Followed by Both begin, cant stand, continue, expect, forget , go, hate, like, love,
plan, prefer, remember, start, stop, try

1. Complete the sentences with the correct form of the verb.
1. They failed (please) certain customers.
2. Could you let me (finish) my question?
3. We risk (lose) a lot of money.
4. He managed (aquire) an important customer.
39

5. Let me begin by (tell) you something about our company's history.
6. We must (inform) you that your payment is overdue.
7. They deny (have) problems with spare parts delivery.
8. We agreed (install) the equipment by the end of the week.

2. Decide if the verbs are followed by a verb in the gerund or in the infinitive form without
looking into the above table. Choose the correct answer for every verb.
1. Gerund
2. Infinitive+to
3. Both variants are correct
Decide
Hope
Enjoy
Finish
Hate
Prefer
1 2 3
1 2 3
1 2 3
1 2 3
1 2 3
1 2 3
Fail
Expect
Wait
Dont mind
Complete
Chose
1 2 3
1 2 3
1 2 3
1 2 3
1 2 3
1 2 3

Make up your own sentences using the correct form of the verbs.

III. Evaluation

1. Speak on the following issues:
1. Give the characteristic features of the free market.
2. Explain how the market affects the producer. What does the law of demand state?
3. Explain how the market affects the consumer. What does the law of supply state?

2. Translate the following sentences into English:
1. Vnzrile au sczut treptat pe parcursul ultimilor 3 ani.
2. Recesiunea a provocat scderea profiturilor multor companii.
3. Ieirea celui mai mare furnizor de materie prim de pe pia a cauzat cretera busc a preurilor
la produsele lactate.
4. Pe o pia afectat de recesiune, industria auto din Germania s-a meninut cu fermitate.
5. Preurile variaz n funcie de legea cererii i a ofertei i de conjunctura pieei.
6. Piaa monetar este influenat n mare msur de cursul de referin.
7. n ziua de azi, bursa de valori joac un rol esenial n lumea afacerilor.
8. Anume piaa dicteaz ce s producem, ct s producem i pentru cine s producem.
9. Detailistul capt o importan tot mai mare n societatea noastr.
10. Cretera preului la carburani se va materializa ntr-o cretere cu 5% a preului cltoriei.





40

Unit 5. MARKETING&ADVERTISING
I. Vocabulary
Marketing
Marketing - the process of planning and executing the pricing, promotion and distribution of ideas,
goods, and services to create exchanges between buyers and sellers; (rom: marketing);
Market Research- the process of collecting and processing information about customers feelings
and attitudes about a particular product; (rom: cercetare a pieei);
The marketing mix - the unique combination of pricing, promotion, product offerings and
distribution system to reach a specific group of consumers (the target market);
(rom: mix de marketing);

The Marketing Mix ("The 4 P's")
Product Promotion Price Place Target Market


Product - the firm's goods or services they are selling. This includes not only physical unit, also
package, warranty, brand and company image; (rom: produs);
Promotion- different elements that help increase the sale of the product. Examples: advertising,
sales, public relations; (rom: publicitate);
Price- the amount of money for which something is sold; (rom: pre); Notice various pricing
strategies: introductory prices, sale prices, odd pricing ($9.99 vs. $10.00).
Place/Distribution: How a product flows from producer to consumer. Wholesalers link the
producer of the goods to the consumer; (rom: distribuie);
Target market - the consumers who are most likely to buy the firm's products; (rom: piaa- int).

Advertising
Advertising - the promotion of a company's products and services carried out primarily to drive up
sales of the products and services; (rom: publicitate);
Advertisement (ad or advert) - a picture, short film, song, etc. that tries to persuade people to buy
a product or serviceor that gives information about a job vacancy;
(rom: reclam, anun);
Advertiser the person/firm who sponsors the advertising message and generally calls upon the
services of an advertising agency; (rom: solicitant de anun publicitar);
Brand - a type of product manufactured by a particular company under a particular name;
(rom: marc);
Logo- a symbol or other small design adopted by an organization to identify its products, uniform,
vehicles, etc.; (rom: logo, sigl);
Catch phrase - a phrase or expression recognized by its repeated utterance. Such phrases typically
spread through a variety of mass media; (rom: slogan atrgtor);
e.g. "I'll be back." (Arnold Schwarzenegger in different movies)

Types of Advertising
Printed media (newspapers, magazines, brochures, fliers) - reclame tiprite;
Outdoors Advertising (billboards, kiosks, trade-shows)- panouri publicitare exterioare;
Broadcast Advertising (television, radio and the Internet) reclam via audiovizual;
Surrogate Advertising - advertising indirectly publicitate indirect;
Public Service Advertising -advertising for social causes - campanie social;
Classified Advertisement- mica publicitate.
41

Specialized verbs

To advertisesth. on television/the Internet -a face reclam la televiziune/Internet;
To put an advert in the newspaper- a da un anun la ziar;
To work in advertising a lucra n publicitate;
To launch an advertising campaign- a lansa o campanie publicitar
To promotea new product- a spori volumul vnzrilor pentru un produs nou printr-o
campanie de vnzri
To carry out a campaign by TV a derula campania prin TV
To aim at a section of the market - a inti spre, a fi destinat unui segment de pia

Specialized adjectives
Promotional- promoional
branded(goods)- produse vndute sub un nume de marc
saleable/ marketable- vandabil


Vocabulary and speaking activities
1. Brainstorm. Spend one minute writing down all of the different words you associate with
marketing. Share your words with your partner. Together, put the words into different
categories.

2. Answer the questions.
1. An advertising campaign is meant to
2. What are the traditional advertising Medias? Companies can
3. Give some examples of modern advertising.
4. Give some examples of indirect advertising.

3. Companies carry out advertising for some purposes. Continue the list by giving some
other reasons.
1. Creating and maintaining a brand identity or brand image.
2. Communicating a change in the existing product line.
3.
4.
5.

4. Match each definition with the corresponding word below:
Target audience/ promotion/ layout/ public relations (PR)/ goal/ brand
- The name of the product: __________
- An objective or aim, something you hope to achieve: ______________
- The way the printed ad is designed: __________
- An activity intended to help sell a product: _____________
- The work of explaining to the public what an organization does, so that they will understand it
and approve of it: __________
- The group of people who may be interested in the product advertised: ___________.

5. Explain the difference between the two words. Use the English-English dictionary, if
necessary.

42

a. advertising/ publicity
b. a booklet/ a leaflet
c. a classified ad/ a spread
d. TV commercial/ video clip

e. market research/marketing research
f. a hoarding/ a poster
g. slogan/ logo
h. a survey/ an opinion poll

6. Identify the target market for:

- fast food restaurant's
-watches Rolex
-health food store's
- footwear Zorile
- Shell products
- Loreal cosmetics
Brainstorm different companies you know or buy from, and identify who those
companies are targeting.

7. According to the model match the company logo with slogan.

Logo Slogan
a. Disneyland
b. Google
c. Coca-Cola
d. Nokia
e. Marks & Spencer
f. Ajax
g. Adidas
h. Visa
b Dont be evil.
__The customer is always and completely right.
__The happiest place on earth.
__Stronger than dirt.
__Impossible is nothing.
__Its everywhere you want to be.
__Connecting people.
__Twist the cap to refreshment.
In your opinion which slogan is the most creative/persuasive/catchy? Why?

8. Pair work. Some people say that advertising is essential in todays society while others are
convinced that all adverts lie. With your colleague discuss the benefits and drawbacks of
advertising and make a list of each.

9. Write an article (100 words) on the following topic: Brands became a new religion.

II. Read the text What Makes an Iconic Brand? than do the exercises that follow.
What Makes an Iconic Brand?
In today's world, brands are everywhere, a familiar part of daily life for most people. But a
few brands, such as Coca-Cola, Nike, and McDonald's, have set themselves apart. These brands
have come to represent something more than a product or service. They are embedded in our culture
and our consciousness. They are icons.
Iconic brands inspire an enduring form of affection that any marketer would want for his
brand. But iconic status, which has traditionally been built over decades, is enjoyed by relatively
few brands. What can we learn from these brand icons that might be useful to all brand marketers
today?
Iconic brands are instantly recognizable: the shape of a VW Beetle is unique, Lego bricks are
familiar from childhood, and the McDonald's arches are readily identifiable in any landscape. A
brand with such powerful visual cues has an intrinsic advantage over others, not least because it
ensures that marketing communication is linked to the right brand. When large replica pints of ice-
cold Guinness were added to shelf displays in the U.K., the familiar image of dark beer with a
white, creamy head reminded people of the brand and helped to increase sales by 27 percent.
43

Using the WPP BrandZ
TM
database, there were compared the properties of iconic brands with
those of other brands that are merely large and popular. The analysis found that brands considered
iconic enjoyed far higher top-of-mind awareness: 58 percent versus 36 percent. This suggests that
iconic brands are "super-familiar"; thus they are more likely to be considered for purchase.
In his book How Brands Become Icons, Oxford University Professor Douglas Holt proposes these
three principles.
1. Iconic brands address acute contradictions in society. They challenge people, either directly or
subtly, to reconsider accepted thinking and behavior. The famous Coca-Cola ad from 1971, "I'd
Like to Teach the World to Sing," voiced a desire to overcome the deep divisions in American
society created by the Vietnam War.
2. Iconic brands develop identity myths that address these desires and anxieties. By creating
imaginary worlds, they offer escape from everyday reality. The Marlboro man represents the
values of the Western frontier: strong, independent and capable.
3. Over time, the brand comes to embody the myth. It becomes a shorthand symbol that represents
far more than just a brand of soft drink, cigarette, or car. While there are now many expensive
watches to choose from, Rolex still symbolizes success and status around the world.
Iconic brands may be born in a specific place and time, but some manage to transcend cultural
boundaries. Brands like Coca-Cola, Lego, and Mercedes have been able to do this not only because
they have broad appeal, but because they have tapped into universal needs and values: Coke offers
happiness to the masses, Lego facilitates imaginative play for children of varying ages, and
Mercedes satisfies a yearning for status.
An iconic brand must adapt to more than just different regional cultures. Like Levis and
Marlboro, Coca-Cola has leveraged its mythic American statue to good effect in other countries,
and has succeeded in bridging one of the biggest cultural divides in the world, the one between
North America and Asia. In many Asian markets, brands are used to flaunt wealth and status.
Because they are so recognizable, iconic brands can leverage this to their advantage. However, they
must be willing to adapt to the local culture. For example, in China, Coke still comes in its familiar
red can, a color which is regarded as propitious in China, but the familiar Coke logo was replaced
long ago with Chinese characters, which loosely translate to make mouth happy.
An iconic brand must evolve over time to maintain a spirit that is fresh and contemporary.
Coke will always have a rich heritage to draw on, but Cokes biggest challenge of late has been
projecting its core values of happiness and togetherness in a way that resonates with cynical modern
consumers. The campaign The Coke Side of Life succeeds at reinterpreting these values in a
contemporary way.
Can icons take root today? Brands like Coke took decades to achieve their current status.
Their fame grew and spread as consumer markets and modern communication channels developed.
What does this mean for contemporary brands? Does the pace of change in modern life hamper or
hinder brands hoping to achieve iconic statues?
We can point to a number of relatively new brands that have achieved this goal. Included in
this elite group of brands are Nike, Starbucks, Absolut, and the most recent brand phenomenon,
Apples iPod.
While most brands cannot hope to attain iconic status, they can still leverage the benefits of
strong, clear positioning to their advantage, so marketers have nothing to lose from thinking big.
(Abridged after Millward Brown's POV, September 2007)
http://www.wpp.com/wpp/marketing/reportsstudies/whatmakesaniconicbrand.htm
Post-reading activities

1. Answer the following questions.
1. What do icon and brand have in common?
2. What does super-familiar mean?
3. What distinguishes iconic brands from the rest of brands?
44

4. What are the three principles that follow/make brands iconic?
5. What can marketers learn from them?
6. How can an iconic status be achieved today?

2. Find a word in the text which means:
a) (adj) indicating a good chance of success; f___________
b) (v) to use something to maximum advantage; l___________
c) (n) a person or thing regarded as a representative symbol; i__________
d) (n) product name made by a particular company; b__________
e) (adj) able to be recognized; r___________
f) (n) knowledge or perception of a situation or fact; a___________

3. Look at the word combinations below. With your partner, try to recall exactly how these
were used in the text:
our consciousness happiness and togetherness
imaginary worlds cynical modern consumers
to flaunt wealth The Coke Side of Life

4. Write the text plan and summary.

Language note: Adding Emphasis
5. Observe and conclude. What grammatical elements follow the words in bold?
a) What a humorous commercial!
b) What an eye-catching poster about Yellowstone Park!
c) What wonderful visual effects!
d) Its such an extravagant idea!
e) Such ads are very expensive!
What and such are followed by an article when they introduce a singular countable noun.
What and such are not followed by an article when they introduce a plural countable noun.
6. Rewrite the following statements using what and such, if possible use how.
a) This ad is hilarious.
b) These commercials are a waste of money.
c) The punch line is very funny.
d) This campaign on drinking and driving gives useful advice.
e) Its so clever of them.
f) Its such a luxurious product.

Grammar note: Adjectives and Adverbs
What's wrong?
Please correct the following sentences:
1. The normally procedure is to approach the design department.
2. The exceptional high price reflects the quality of the product.

What are the rules?
Adjectives give more information about nouns. e.g. This product is of outstanding quality.
Adverbs give more information about verbs. e.g. The new product is selling well.
Adverbs also modify adjectives. e.g. It is an extremely attractive product.

45

7. Look at the adjectives and adverbs in the box and choose an appropriate word to fill each
gap in the sentences.
costly complicated badly highly major consistent

1. It is a ______________ sophisticated music system.
2. It is a very ______________ report and difficult to understand.
3. It is important to maintain _______________ quality in our products.
4. The prototype was _____________ designed and they had to go back to the drawing board.
5. They are going to buy a _____________piece of new machinery but it should be worth the
expense.
6. Efficiency is a ______________ feature of the new machine.

Compound adjectives
Compound adjectives are formed by joining two or more words together. Many compound
adjectives are used in marketing.
top-quality brand-new down-market price-sensitive
up-market cost-effective up-to-date

8. Use some of the above compound adjectives to fill the gaps in the sentences below:
1. It is an ___________ product, designed for people with sophisticated and expensive
tastes.
2. The company has recently introduced more ____________ methods of production in
order to cut down on expenditure.
3. It is a ________________ product, there has never been anything like it on the market
before.
Make up your own sentences using compound nouns.

10. Case study. Market your product.

a) You work in the marketing department of a big Moldavian company. With your
marketing executive classroom partners, think of a new product or service to launch
and promote. Use the table below to help you.
Your ideas
Reasons why your ideas will be winners
The product
Product name
Product logo
Product slogan
Target consumers
Reasons why it is better than other products
Marketing method 1
Marketing method 2
Present your ideas to the class / other teams. Decide on which teams were best. Tell other
teams why their ideas might not be winners.
Change partner(s) and give help on making your presentations better. Tell each other what is
needed for a more effective campaign. Present again.
Discuss the things you heard. What products would be most exciting or useful in your life?
46

b) Make a poster to advertize your product/service. First read what the requirements to
effective visual advertising are.
A visual ad must be eye-catching in order to attract attention.
The body copy (the text) should be short and easy to read.
The logo and the slogan should be visible, but not necessarily big or conspicuous.
The catchphrase should be short, preferably funny or teasing, and immediately visible.

SUPPLIMENTARY READING
Advertising is meant to influence the minds of the target group that should ultimately result in a
sale for the client. However, sometimes, it can raise many questions when targeted for children.
Read on to know about the various effects of advertising on children.
Text B. ADVERTISING TO CHILDREN
Pressure is growing to ban advertising aimed at children. Do such clampdowns make sense?
From an advertisers viewpoint, children are a splendid audience. They watch lots of television;
they spend lots of pocket money; they go shopping with Mum, and nag her to death to buy the latest
fad in breakfast cereal or fizzy drinks. No wonder many folk worry about the influence of
marketing on minors. Increasingly, campaigners are demanding that countries impose restrictions
on advertising aimed at children.
The campaigners claim that children are too naive to distinguish between ads and genuine
programming. Young children are not able to understand what advertising is about. Advertisers are
taking advantage of their childishness, says Lars Maren, senior adviser to the Swedish culture
ministry.
Some critics also worry about the social impact of advertising to children. Britains Chancellor
of the Exchequer, Gordon Brown, recently accused advertisers of highlighting social divisions by
marketing expensive toys and gadgets that poorer families cannot afford.
Advertisers insist that a widespread move to ban childrens ads would backfire. Their main
argument is that bans would lead to worse childrens programming on television, fewer educational
resources in schools and in higher prices for toys.
In fact, both sides are missing the real point. Advertisers are not as influential as they seem. A
recent study by the Advertising Education Forum of 5,000 parents in 20 European countries found
that 86% did not rate advertising among the top five influences on their children: parents, schools
and other families, among others, were seen as far more important.
Nor are children as gullible as advertisers and campaigners believe. In a study published last
November, Brain Young found that children as young as six can understand the purpose of
commercials and can distinguish them from entertainment.
This highlights the most important case against shielding children from marketing that
parents and teachers have a responsibility to teach children about the realities of a commercial
world, just as they teach them how to cross the road safely.
(Source: The Economist, January 4, 2001)
1. Reading comprehension. Answer the following questions:
1. What kind of document is it and when was it published?
2. What is the theme of the document?
3. How are children influenced and by who?
4. According to the text, why are children so important to advertisers?
47

2. True or false? Tick the right answer and justify by quoting from the text.
1. Advertisements reduce social division. True
False
2. There would be better programs on TV if we ban advertising for children. True
False
3. According to Brain Young, children under 6 can understand the aim of an ad. True
False
4. Advertising companies are demanding to ban advertising for children. True
False
3. Find the word that means
1. A lack of maturity, perile: ____________
2. An advertisement: _________________
3. Amuse: ___________________
4. Securely: __________________
4. In 150 words answer the following question. Correctly identifying your target market is key to
success.

III. Evaluation

1. Speak on the following issues:
1.What distinguishes iconic brands from the rest of brands?
2. What can marketers learn from iconic brands?
3. Give the benefits and drawbacks of advertising.

2. Translate the following sentences into English:
1. Produsele firmei erau bune, dar aceasta a ntmpinat difficulti n vnzarea lor din cauza unui
marketing inefficient.
2. Ea are o slujb n domeniul publicitii.
3. Unii afirm c publicitatea convinge oamenii s cumpere lucruri de care nu au nevoie i pe care
cteodat nu-i permit financiar s le achiziioneze.
4. Alii cred c acest lucru reduce preurile, prin creterea vnzrilor.
5. Mesajul publicitar a fost adresat unui public-int greit ales, prin urmare, campania a fost un
eec.
6. Anunurile de mic publicitate apar n rubrici cum ar fi proprieti de vnzare, oferte de
serviciu.
7. Pentru ce tip de publicitate vom opta: presa scris sau presa audiovizual?
8. Experiena acumulat n vnzri i cercetri de pia i-au oferit o pregtire profesional serioas
pentru o carier n marketing.
9. Difuzarea intensiv de reclame la televiziune este o parte important a strategiei noastre de
poziionare a mrcii pe pia.
10. Sigla unei companii este folosit att pentru identificarea produselor acestia ct i pentru
publicitate.


48

Unit 6. HOW BUSINESSES FUNCTION

I. Vocabulary
Business is generally understood as a kind of human activity aimed at making surplus money out of
funds invested in production, services and new ideas.
(rom: afaceri, activitate comercial);
Businessman /woman -a man/woman who works in business; (rom:om/femeie de afaceri);
Raw Goods materials gathered in their original state from such natural resources as land and
water; (rom: materie prim);
Manufacturing - the process of making goods or materials using machines, usually in large
amounts; (rom: fabricaie);
Distribution moving of goods from one business to another; (rom: distribuie);
Wholesaler - a business that distributes goods to other businesses, often to retailers;
(rom: angrosist);
Retailer a business that sells directly to the consumer, the final buyer of goods; (rom: detailist);
Productivity- the rate at which the amount of goods and services are produced, especially in relation
to the work, time, and money needed to produce them; (rom: productivitate);
Competition the contest among businesses to win customers; (rom: concuren);
Customer- someone who buys something in a particular shop; (rom: client); but
Consumer - a person who buys goods or services for their own use; (rom: consumator).

Note: Business and firm mean commercial organizations of various sizes;
(rom:societate comercial);
Business is used with the indefinite article to mean a specific shop or a company.
E.g. He has a small hair salon business. (pl. - businesses);
Business without the indefinite article means commerce and trade. In this sense, business is an
uncountable noun, and therefore has a singular verb.

Types of businesses
(according to their activity)
1. Producers of Raw Goods- ntreprindere extractiv
(mining, agricultural business)
2. Processors of Raw Goods ntreprinderi prelucrtoare
(oil refineries, flour mills)
3. Manufacturers - ntreprinderi industriale
4. Distributors- ntreprinderi de distribuie
Wholesalers- angro
Retailers- cu amnuntul
5. Service firms - ntreprinderi de servicii
(banking, insurance, transportation, E-commerce)
The Result of business activity
manufacturing of goods
providing services
using factors of production
making profits or losses
distribution of goods
merchandising of goods
delivery
output/turnout
making deals&
signing contracts

Vocabulary and Speaking Activities
1. Explain what is the meaning of the underlined word in the following sentences. Use the
English-English dictionary to find the multiple meanings of the term business.
1. What is your line of business? - Its banking business.
2. Next week he is going to Paris on business.
3. Business before pleasure. (Proverb)
4. You have no business being here.
49

5. What are you reading? Mind your own business.
6. Weve got some unfinished business to discuss.
7. OK, lets get down to business.
8. Shes got an accident. Shell be glad when the whole business is over.
9. It is the business of police to protect the community.
10. Business is business.
2. These pair words are easily confused. Can you distinguish between them? Discuss the
difference in meaning between them putting them in sentences may be helpful.
1. Company and campaign 6. sales and sell
2. launch and lunch 7. price and prize
3. personal and personnel 8 . grows and growth
4. produce and product 9. located and location
5. specialize and specialty 10. employer and employee

3. Read the sentences below and choose the correct word.
1. Our . are not very good this year. (sales/sell)
2. We ..electrical equipment. (produce/ product)
3. Where is your .. located? (campaign/company)
4. We have 500 .. (employees/ employers)
5. Every year our share price by about 5%. (grows/growth)
6. The of your shop is very important if you want to attract customers from the street.
(located/location)
7. We . a new product every three months. (launch/lunch)

Study Business Noun-Verb Collocations

4. The verbs in the table 1 collocate with the given nouns. Make collocations according to the
model and try to find their equivalents in Romanian.
Model: to set up in business- a se lansa n afaceri
Table 1. Verb - Noun Collocations
to set up in business, a company, a firm, an organization, a project, a venue
to launch an advertising campaign, a product, a project, a programme, an initiative, a
takeover bid
to do business, the accounts, the paperwork, the marketing, a deal, a transaction
to make money, an appointment, a bargain, an investment, a killing, a loan, a deal, a
profit, a loss, cutbacks
to manage a business, a company, a restaurant, the economy, the finances, the funds,
demand, a team
to operate at full capacity, an airline, the railways, a company
to run a business, a company, a campaign, the economy, a factory, an airline
to boost demand, the economy, employment, production, profits, takings
to generate revenue, a profit, publicity, cash, capital, demand, income, employment
to reduce, to
slash
costs, overheads, prices, taxes

50

5. a) Select any verb in the table 1 which normally collocates with the terms:
1. business 5. project
2. profit(s) 6. campaign
3. company 7. employment
4. demand 8. deal
b) Find synonyms to the following words: money, boost, firm, income, manage, venture.

6. Give English equivalents to the following word combinations:
1. a nregistra pierderi
2. a lucra la capacitate maxim
3. a lansa o campanile publicitar
4. a conduce o companie
5. a reduce cheltuielile pentru regie
6. a realiza profit
7. a lansa o ofert de preluare a companiei
8. a crea locuri de munc
9. a se lansa n afaceri
10. a duce evidena
11. a stabili o ntlnire
12. a mri incasrile
13. a da lovitura
14. a spori cererea

7. Using Business verb-noun collocations make up 5-6 sentences that make sense. Translate
them into Romanian.
8. Fill in the table with collocations according to the model:

Starting out being in business doing well doing not so well
To set up in business to make money to boost production to reduce spending





9. Pair work. Imagine the following situation: ten years after IEB faculty graduation you are
invited at the TUM alumni party where you meet one of your colleagues. After graduation you
both set up in business: ones business goes well, the others business not so well.
Make up a dialog using the vocabulary of the lesson.The following language structure may be
helpful.
Language structure: Subsequent meetings
Formal







Informal
Possible Greetings Possible responses
Hello, Mrs Hand. It's nice to see you
again.
What a pleasant surprise! How are you?
It's been a while.
Good morning Mrs Hand. How are you
today?
I'm very well thank you. And you?
Good afternoon, Mrs Hand. It's good to
see you.
Thank you. It's nice to see you too. How
are you?
Hello Lynne. How are you doing? Fine thanks. What's new with you?
Hi, Lynne! How's it going? Not too bad, busy as ever.
Hi, Lynne. How are things? Oh fine. You know how it is
51


Note: on first meeting say, "It's nice to meet you", and when departing "It was nice to meet you".
For future meetings say, "It's nice to see you again", and when departing, "It was nice to see you
again."

Describing Business Activity
What does your company do?
We design software.
We build storage units.
We produce small appliances.
We're in the insurance business.
What do you do at ABC Company?
I am in charge of marketing.
I'm responsible for sales.
I program computers.
I recruit and train employees.


11. Pretend that you are starting a business. What do you think consumers need most?
What problems would you expect to find in running your own business? What advantages
would you expect to find? Write an essay using the vocabulary of the lesson.

II. Read the text quickly and answer the questions after the text.
Text A: HOW BUSI NESSES FUNCTI ON
In our economic system, businesses use natural resources, labor, capital goods, and
entrepreneurship the factors of production to produce the goods and services we need.
Any individual entrepreneur is free to enter the market, produce a product or service, and
make a profit. The entrepreneur is also free to fail to make a profit and go out of business.
There are thousands of different businesses in this country, but according to the activities
they perform all businesses fall into a few types: 1) producing raw goods, 2) processing raw
goods, 3) manufacturing goods from raw or processed goods, 4) distributing goods, and 5)
providing services.
A farmer in Kansas grows wheat. A petroleum worker in California drills for oil. A miner
in Minnesota digs for iron ore. All of these individuals are involved in activities related to
producing raw goods materials gathered in their original state from such natural resources as
land and water. Business firms that perform activities of this sort are producers of raw goods.
Many agricultural, mining, and forestry businesses fall into this category.
Usually we do not use raw goods exactly in the same form that we find them in nature. For
example, most often we prefer to change wheat into flour. We want to have oil turned into
gasoline or other petroleum products. We want to change ore into steel. Businesses that change
these materials from their original form into more finished forms are involved in processing of
raw goods. Among these businesses are flour mills, oil refineries, and steel mills. The output of
these businesses is called processed goods.
Manufacturers turn raw or processed goods into finished goods. They are businesses set up
to carry out the activities involved in making finished goods out of processed goods. The
bakery that makes bread out of flour and other raw or processed goods is a manufacturer. The
automobile factory that makes cars out of steel is also a manufacturer.
The activities involved in moving goods from producers to consumers are those related
to distribution. One type of business firm that is involved in the distribution of goods to other
businesses is a wholesaler. Wholesalers gather the goods produced by manufacturers into
central locations. The goods are then generally sold to another type of distributor, a retailer
that sells goods directly to the consumer, the final buyer.
52

Another type of distribution represents transportation companies. For the most part, large
quantities of goods are moved by railroad, trucking, shipping, and airline businesses.
A very special way to move goods is by pipelines. A great deal of the oil moved from one
place to another in our country goes by pipeline. Natural gas also is moved through
pipelines.
A fifth type of business, one that is increasing in number very rapidly, is the so-called
service firm. Service firms provide services instead of goods to consumers. For instance,
appliance repair shops, word processing and photocopying car washes, and hair salons are all
examples of service businesses.
Although large business firms are important in an economic system, the majority of
businesses are small. In fact, some products and services are more suited to production by an
entrepreneur in a small firm. Both small and large business firms compete for the consumer's
dollars. If firms are not able to meet the wants of consumers, they go out of business. If they
compete successfully, they stay in business and may grow larger. Competition is a way of
assuring consumers of the best product or service at the best price.
In some cases our economy has so few firms selling one kind of product that they
have little or no competition. If one firm sells all or practically all of a product, that firm has a
monopoly. Because the company has no competition, it can determine the one price to be set.
In most cases, it is not quite legal to control the market through a monopoly. The
government may, through the courts, break up the company into smaller companies.
A business firm is successful only when it can do three things. First, it must offer the
products and services that people want. Second, it must be able to compete with other business
firms offering similar products and services. And third, it must make a profit. A final question:
Why do we have business firms? The answer is that they supply us with the goods and services
we want. They play an important part in our economic system. Without them we would not be
able to produce the vast number of goods and services that we use throughout our lives.

(Source: Brown and Clow Our Business and Economic Worldp.124)

Post-reading activities:
1. Reading comprehension. Answer the following questions:
1. What does a business need to produce the goods and services the consumers want?
2. How are businesses classified by the activities they perform? Give an example of each
business type.
3. How are wholesalers different from retailers?
4. How does the consumer benefit from competition among business firms?
5. Why does the government rule out monopolies in our economic system?
6. What three things that a business must be able to do to be successful?
2. Find the words or phrases in the text which mean:
a. A business that distributes or sells products, usually to other businesses.
b. A business that distributes goods directly to the consumer or final buyer of the goods.
c. A firm that sells all or practically all of a product and has no competition in the
market.
d. Materials gathered in their original state from natural resources such as land and
water.
e. A new way of doing things.
f. Natural materials that have been changed from their original state into a more finished
stale.
g. A business that moves goods from one business to another.
53

3. Mark these statements true (T) or false (F).
___1. People start new businesses in order to use innovations.
___2. An entrepreneur is free to enter the market and he is also free to fail making a profit.
___3. Photocopying is a kind of processing business.
___4. Businesses compete for the consumers dollars.
___5. A very special way to move goods is by pipelines.
___6. It is not legal to control the market through a monopoly.

Grammar note. The Present Simple and the Past Simple Tenses

The Present Simple The Past Simple
1. Use For regular or permanent actions,
facts, feelings. I love my job.
To describe actions in the past which
have no relation to now
2. Affirmative
form
In the III rd person (he, she , it)
form, the verb takes an s.
Regular verb all finish in ed
For irregular verbs see the list
of irregular verbs
3.Question and
negative forms
We use the auxiliary do or dont
except in the III rd person singular,
where we use does or doesnt;

In questions, we use the auxiliary did,
In the negative form, we use didnt
4. The verb to be We do not use the auxiliary
do/dont
We do not use the auxiliary
did/didnt

4. Make the following sentences negative and interrogative according to the model:
Business firms compete for the consumers dollars.
Business firms dont compete for the consumers dollars.
Do business firms compete for the consumers dollars?
1. Any individual entrepreneur is free to enter the market and produce a product or ser-
vice.
2. Henry Ford became one of the most successful business persons in the world.
3. Our private enterprise system encourages entrepreneurs.
4. People left the farms to work in business.
5. Wholesalers gather the goods produced by manufacturers into central locations.
6. This specialization of labor led to mass production of cars.
7. Service firms provide services instead of goods to consumers.
8. In the early years of the United States, most people were farmers.
9. We do not use raw goods exactly in the same form that we find them in nature.
10. Competition is a way of assuring consumers of the best product or service at the best
price.

SUPPLIMENTARY READING
Text B: The incredible legacy of Steve Jobs: from the mouse to the iPad
by Mike Wehner, October 5, 2011

Apple's former CEO made furthering technology his passion
Steve Jobs, the former Apple CEO was a visionary in the world of computing and is largely
responsible for the level at which computers are integrated with our everyday lives.
Jobs along with Steve Wozniak and Ronald Wayne founded Apple in 1976. The first
54

computers, the Apple Lisa and the Macintosh, were simplistic but revolutionary for their time.
Along with them came the mouse, a device which is so crucial to modern computing that it hasn't
changed in nearly three decades.
In 1986, during a brief hiatus from the company, Jobs snatched up a little-known division of film
studio Lucasfilm which was spun off as Pixar Animation Studios. After a string of record-breaking
films, he sold the company to Disney for approximately $7.4 billion.
In late 1996 when Jobs eventually returned to Apple, the company was in shambles.
Competing manufacturers held Apple software licenses and were making clones of the company's
hardware, undermining the brand. Jobs immediately cancelled the program and brought all Apple
development back under one roof.
From there he slowly built up Apple's credibility amongst computer users and eventually
oversaw the launch of the iMac and iBook, two of the most iconic Apple products in the company's
history.
Jobs' company revolutionized the way we listen to music by launching the iPod in 2001. Apple
made purchasing and listening to music so affordable and easy that over 220 million iPod devices
have been sold since its introduction.
In 2007 Jobs launched what is undoubtedly the best-selling Apple product to date: the iPhone.
His vision of a smartphone was far different than what most wireless consumers were used to, but
now it's hard to imagine a world without it. As competitors did their best to catch up, Jobs stayed
the course, always standing by his promise to create useful products on Apple's terms, and without
influence from the rest of the tech world.
Once the iPhone was firmly a market leader, Jobs took his dream of mobile computing one
step further by introducing the iPad a tablet that didn't try to be a computer. Both the iPhone and
iPad product lines have seen massive success and after 4 versions of Apple's smartphone and two
iPads, the company is the most valuable brand name in consumer electronics, and has flirted with
being the most profitable company on earth.
As the face of Apple for so many years, Jobs became part of the very fabric of the company's
products. His legacy will live on with every iPod, iPhone, Mac, and iPad that graces a desk or
coffee table around the globe. The next time you power on your smartphone, tablet, or computer,
spare a moment for Steve Jobs, one man who made advancing technology his life's work.

Reading comprehension
1. Read quickly the first three paragraphs and decide if these statements are true (T) or false
(F), according to the article.
1. Steve Wozniak was the boss of Steve Jobs.
2. In 1996, Steve Jobs oversaw the success of the iBook.
3. In 2001, Apple already numbered over 220 million iPod devices sold.
4. Pixar Animation Studios is the same company as Lucasfilm studio.
5. Steve Jobs sold the animation studios because the company was bankrupted.
6. The brand weakened as a result of cloning the companys hardware by competitors.
2. Find words and phrases in the text that mean the same as the following:
1. that can be afforded
2. an interruption in activity
3. the quality of being believable or worthy of trust
4. is selling particularly well
5. to decorate, to embellish
6. a period of ten years
7. to set up a partly independent company that is formed from parts of an existing company
8. a person having imagination
55

3. Say in other words.
1. his legacy will live on
2. to do ones best to catch up
3. to revolutionize the way people do sth.
4. a string of record-breaking films
5. to snatch up a little-known company
6. the company was in shambles
7. to bring all back under one roof
8. to flirt with sth.
4. Comment on Steve Jobs quotation in 5-6 sentences: ... people with passion can change the
world for the better.
III. Evaluation
1. Speak on the following issues:
Give the classification of businesses according to the type of activity.
Explain the difference between businesses producing goods and those providing
services.
Describe the manufacturing business on the example of a local company.

2. Translate the following sentences into English.
1. Lansarea, derularea i lichidarea unei afaceri n Republica Moldova presupune o serie de
proceduri complexe, asociate unor costuri substaniale.
2. n Moldova, principala problem a antreprenorilor este posibilitatea redus de a contracta
credite.
3. Porneste acum o afacere cu ciuperci si poti avea profit in doar 4 Luni!
4. Profitul firmei va depinde de activitatea economic propriu-zis.
5. ndat ce afacerea a mers mai bine, ea a hotrt s deschid nc un atelier, n care a angajat
15 persoane.
6. Banii investii n afacerea cu restaurantul au fost recuperai dup cinci ani de la lansarea
afacerii.
7. Abia dup opt ani de prestare a serviciilor n domeniu, compania de asigurri a devenit
profitabil.
8. Ne este din ce n ce mai greu s facem fa concurenei strine.
9. Cifra de afaceri a companiei Supraten s-a majorat anul trecut cu aproape 65 mil. de lei i a
ajuns la 582 milioane de lei, potrivit raportului financiar al companiei.
10. ntreprinderea municipal Edilitate, specializat n construcia drumurilor, a nregistrat anul
trecut pierderi n valoare de circa 3,6 mil. lei.
11. n primele 9 luni ale anului curent vnzrile grupului Gas Natural Fenosa au crescut
substanial datorit scumpirii curentului electric.
12. Totodat cheltuielile de procurare a energiei s-au majorat n aceast perioad cu 26,4%.
13. Moldexpo i deschide uile pentru 80 de companii din ar i de peste horare ce activeaz n
industria prelucrtoare.
14. Miliardarul romn Frank Timi, care exploateaz zcminte de fier pe continentul African, a
dat lovitura dup ce a fcut un parteneriat de 1,5 miliarde de dolari cu o firm chinez de
stat.
15. n Romnia, marii productori din industria berii gsesc local materie prim la discreie,
ceea ce scade costurile operaionale (transport, taxe de import).

56

Unit 7. HOW BUSI NESSES ARE ORGANI ZED

I. Vocabulary
Business structure - legally recognized organization established for conducting commercial
activities, such as sole-proprietorship, partnership, and corporation;
(rom: form organizatorico-juridic);

Legal entities- Structuri juridice
Sole proprietorship - the simplest business structure which usually involves just one individual who
owns and operates the enterprise; Syn.: one-man business;
(rom: societate individual);
Partnership - a business owned by two or more individuals who manage the company and assume
responsibility for the partnership's debts and other obligations;
(rom: parteneriat/societate n parteneriat);
Corporation (Am.Eng.)- a business legally regarded as a separate entity, i.e. it exists separately
from the people who own it. A corporation is owned by people who have shares in the
company (Br.Eng.- J oint-stock company); (rom: societate pe aciuni);
Limited Liability Company - a business structure that is not considered a separate entity, but the
owners are protected from personal liabilities; (rom: societate cu rspundere limitat);
Cooperative a business firm owned and, in many cases, operated by its members;
(rom: cooperativ);
Franchising - a business model in which a parent company allows entrepreneurs to use the
company's strategies and trademarks in exchange for a share from business revenues;
(rom: franciz).

Liability for Debts
Limited liability - the legal responsibility of the owners of the corporation for the company debts
only to the extent of the amount they have invested; (rom: rspundere limitat);
Unlimited liability- the responsibility of a sole proprietor for the debts of his or her business even if
those debts are more than the assets of the business (rom: rspundere nelimitat).
Company Owners/Decision-Makers
Founder - someone who starts a business, school, organization; (rom: fondator);
Partner - one or more people who own a company and share its profits and losses; (rom: partener);
Stockholder (Am.Eng.) - someone who owns shares in a company; (Br.Eng - shareholder);
(rom: acionar); (but the stock- capitalul social);
Board of Directors a group of individuals elected by the stockholders of a corporation to make
major decisions for the company; (rom: consiliu director).

Legal Documents of a Company
License - a permission granted by competent authority to engage in a business or occupation;
(rom: licen);
Partnership agreement- a decision or arrangement, often formal and written, in which business
partners declare certain understandings between or among them;
(rom: contract de asociere);
The charter - a legal form giving a corporation the permission to operate; (rom: cart);
Bylaws - the official rules and regulations which govern a corporation's management (rom: statut).

57

Pronunciation
Proprietorship /pr pr t p /
Liability /l b l ti/
License / l s()ns/
Enterprise / ntpr z/
Shareholder / e(r) h ld(r)/
Charter / t (r)t(r)/

Abbreviations used in company names
Co. (Company);
Corp. or Inc. (Corporation/incorporated);
Plc. (Public limited company) Br. E.;
Ltd. (limited)
LLC (Limited Liability company);
Bros. (Brothers)

Vocabulary and Speaking Activities

1. Match the terms from 1-8 to definitions from a-h:
1. abbreviation
2. capital
3. sole proprietorship
4. share
5. license
6. limited
7. stock market
8. corporation
a. money that belongs to, or is put into business
b. small business usually operated by one man
c. permission to act
d. company shares are traded here
e. a short name for something
f. a large company
g. restricted or controlled
h. a part of the company that can be bought or sold

2. Choose a suitable word from the box on the right to make collocations with the given terms
on the left. Translate them into Romanian.

1. proprietorship
2. enterprise
3. liability
4. license
5. corporation
6. partnership
a. holder
b. public
c. agreement
d. unlimited
e. multinational
f. sole

Specialized verbs
to issue shares- a emite aciuni
to join assets- a uni/asocia activele
to merge/unify the two companies a fuziona cele doua companii
to liquidate/wind up an enterprise- a lichida o ntreprindere
to incorporate a company- a constitui o companie
to grant a license a acorda o licen to get/obtain a license obine o licen
to be liable/ to bear responsibility for debts - a fi responsabil pentru datorii
to be subject to obligations a fi supus oblidaiilor
to engage in a business a se lansa ntr-o afacere
to operate legally a activa legal
to contribute with know-how to a business- a contribui cu experien ntr-o afacere
to file ones petition in bankruptcy- a se declara falit, a depune bilanul
3. Fill in the blanks with the given verbs at required forms.
To incorporate, to merge(2), to liquidate, to join, to issue, to bear, to engage
1. The firm ................. with its main competitor last year.
2. It takes a few days to ............... your business at the State Chamber of Registration.
3. The company owner ............... responsibility for his business losses and debts.
58

4. The government decided to ................. the two biggest banks of Moldova.
5. His friend .................. the firm after two years of heavy losses.
6. Corporations ................... shares of stock to investors.
7. My boss has .................... in banking business for more than ten years.
8. The three partners ......................... their assets into a successful business.

II. Read the text A paying particular attention to the new vocabulary.
Text A: How Businesses Are Organized
As each entrepreneur makes the decision to start a business, he or she must also decide what
type of business structure will be most advantageous for the new business. There are three main
types of business organizations: sole proprietorship, partnership, and corporation.
Sole proprietorships are often found in businesses offering services to consumers.
The sole proprietorship has several advantages. First, it is simple to start. Depending on local
laws, the only requirement for starting a sole proprietorship may be a license. Second, because
the business is owned by one person, that person is the boss. A third advantage is that the owner
receives all of the profits, so he has good reason to work hard for all of those benefits. A fourth
advantage comes when the sole proprietor is paying taxes, he pays taxes only once on the income
from the firm.
A sole proprietorship has some disadvantages, too. Most sole proprietorships remain small
businesses. This business has a limited life, it ends when the owner leaves or dies. A shortage of
money is a common problem for sole proprietorships because they depend on the resources and
abilities of just one person. The owner of a small but growing sole proprietorship is that he may
not be able to do all of the work or he may not have all the various skills to run a successful
business. It is nice to be your own boss and to make 100 percent of the profits. But what if the
business doesn't make a profit? A sole proprietorship has unlimited liability, i.e you're 100
percent responsible for the losses. If the debts of the proprietorship are greater than its assets the
owner may lose his savings or property to pay the business's debts.
Starting a partnership has few requirements. Depending on the nature of the business, a
partnership may need a license. The partners should draw up a partnership agreement in which
they put into writing how they will share the work and profits, how they will end the
partnership, and other matters. A written agreement from the start may prevent problems later
on.
One advantage of a partnership is that each partner can bring special skills, as well as money,
to the business. Another advantage is that, unlike sole proprietorships, partnerships find it easier to
acquire money because there are more owners who can contribute to the business. All partners
who share in the business have good reasons to work hard for its success, they are personally
motivated. Like the income of the sole proprietorship, the income of the partnership is taxed only
once.
Certainly the partnership has disadvantages. Partners have unlimited liability for debts, the
owner may lose savings or property to pay the business's debts. Also wrong decisions of any
partner may cause the business to lose money. This business is potential to conflicts.
A corporation is legally regarded as a separate entity which means that the corporation exists
separate from the people who own it. As a consequence, owners in a corporation have limited
liability. They are responsible for the debts of the business only to the extent of the amount they
have invested. Even if the business fails, their personal savings and possessions cannot be taken
to pay the corporation's debts.
The original owners of a corporation may decide to issue stock, or shares in the ownership. The
new owners, called stockholders buy the stock through a stock exchange. The stockholders of a
corporation elect a board of directors to make the major decisions for the company, while the day-
59

to-day decisions are made by appointed managers of the firm. Both the managers and the board of
directors are responsible to the owners.
The corporation has some advantages. Since the owners have limited liability, corporations
often find it easier to get additional money by selling stock. The corporation also has unlimited
life, it does not end if one or more owners decide to sell their shares. Ownership can easily be
transferred to new stockholders, and the corporation goes on.
One major disadvantage of a corporation is that it is subject to double taxation: owners are
taxed on their income from the corporation then the corporation itself is taxed. A corporation is
more difficult to start than a sole proprietorship or partnership. The owners apply to the state for
the charter. Only when the charter is issued the owners can draw up the bylaws for the
corporation.
The type of business organization can change as the business expands or declines. When it
comes to company liquidation it can either be compulsory (by order of the court) or voluntary. In
the first case the creditors of the company present a petition for winding up to the court. The court
appoints a liquidator who takes over the control of the company from its directors, collects money
owed to the company and distributes assets proportionally among creditors and shareholders, the
state budget always being the first on the list.
(Source: Brown and Clow Our Business and Economic Worldp.138)

Post-reading activities
1. Answer the following questions:
1. How are businesses organized?
2. Why is a sole proprietorship called by that name?
3. What are the advantages of a sole proprietorship?
4. What does a partnership agreement mean?
5. Sole proprietorships and partnerships both have unlimited liability. What does that mean to
the owners?
6. How is starting a corporation different from starting a sole proprietorship? A partnership?
7. What are some of the duties of the board of directors of a corporation?
8. How is a company liquidated?

2. In written form translate into Romanian the last passage of the text How Businesses Are
Organized.

3. Find in the text advantages (+) and disadvantages (-) of the three business structures and
fill in the table.

Sole Proprietorship Partnership

Corporation
(+)
1.
2.
3.
4.
(+)
1.
2.
3.
4.

(+)
1.
2.
3.
4.

(-)
1.
2.
3.
4.
(-)
1.
2.
3.
4.
(-)
1.
2.
3.
4.
60


4. Now that you know what the advantages and disadvantages of the three business
structures are compare them to see which type is best. Using comparative structures make
up sentences according to the model:
Model: A corporation isnt as easy to start as a sole proprietorship. (similarity)
It is more difficult to get a charter than a license. (comparative degree)
Corporations are thelargest type of businesses. (superlative degree)

5. Business structure contest. Make a one-minute presentation of the business structure you
consider being the best. (Give characteristic features, advantages, disadvantages of the
selected structure.)


Language Model: Expressing Regrets
People looking back upon a past event may feel apologetic, sad, or shameful. Regrets over a lost
opportunity can be expressed using the following structure:

Modal Verb + Have + Verb 3 (Past Participle)
should have known
could have been
wouldnt have dreamed of
I should have known my business partner better.
I could have been more supportive when my friend lost his job.
I wouldnt have dreamed of becoming an accountant.
6. a) Express your regrets on lost opportunities.

1. You didnt study business terminology hard enough.
2. You didnt consult a lawyer before setting up your company.
3. You didnt become a famous businessman.
4. You started the business with a handshake agreement.
5. You hate your business co-founder.
6. You didnt apply for a better paid job.
7. You didnt hire a better accountant.
8. You failed to pay your business taxes on time.

7. Pair work. Discuss with your colleague(s) some of your biggest regrets.

What are your regrets when you think back on your life? Make a list of three regrets and tell
the story to your partner. How do you cope with them?
Are there solutions to regrets, and what are some things you could have done differently?

8. Case study
Glenn has formed a partnership with his friends, John and Beverley. They will make and sell
works of art. Each friend has an interest in a specific area of art: Glenn is a sculptor, John is a
potter, and Beverley is a painter. Each artist contributed money to the business. The business
has been in operation for three months, but the friends are having some difficulties that are
threatening their friendship as well as business. Some of the major problems they are having
include the following:
61

Recordkeeping for the business is haphazard, making it irritating to try to figure out the
companys taxes and profits.
Each partner is receiving an equal share of the income, which Glenn thinks is unfair since he
invested the most money.
Beverley spends very little time at the business and has contributed only three paintings,
while Glenn and John have stocked the business with their goods.
Bills are beginning to mount up for the business. John decided he wanted a new potters
wheel and a new kiln, so he went out and bought them. Glenn, not realizing that John made
these purchases, invested in display counters and carpet for the showrooms.

1. What is the major cause of their problems?
2. Did Glenn choose his partners with care? Why or why not?
3. What will happen if Glenn decides to leave the business?
4. Can the partners save the business? What do you suggest they do in order to save
the business? Be specific in your recommendations.

Grammar review: Possessive Nouns
Possessive nouns are used to indicate ownership.
Joint ownership. If two or more owners possess something jointly, place the apostrophe (or
the apostrophe plus s) on the last owners name.
e.g. John and Marys office is located on the Main Street. (John and Mary own the office
jointly. Place the apostrophe plus s on the latter owners name, Mary.)
Separate ownership. When two or more owners possess things individually or separately, place
the apostrophe (or the apostrophe plus s) on the name of each owner.
e.g. Johns and Marys offices are located on the Main Street and the Red Street, respectively.

Note: In official names of some organizations, banks, or buildings, apostrophes may be omitted
from the possessive forms; for example, Manufacturers Bank, the Women Association. In these
cases, however, always use the official spelling.

6. Test it. Select the correct form in parentheses for each of the following sentences.
1. (Leos and Freds, Leo and Freds) new business is an interesting co-venture.
2. (Mr. Abbots and Ms. Walls, Mr. Abbot and Ms. Walls) assistants are highly qualified
workers.
3. Have you asked for (Johns and Marys, John and Marys) opinion on selling their summer
homes?
4. Perhaps (Franks and Josephs, Frank and Josephs) new supervisor, Ms. Marshall, can help us
with this problem.
5. (My fathers and my brothers, my father and my brothers) ideas for increasing business were
very similar.
6. Last year the (business', business's) profit was of 1.5 million its best year ever!




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SUPPLEMENTARY READING
Warm up
1. Talk about these opinions on cars:
The world is car crazy.
Japanese cars are the best in the world.
Carmakers shouldnt make cars that can exceed speed limits.
I would absolutely love to have a Porsche or Ferrari one day.
Cars kill people and the Earth and should be banned.
Men are better drivers than women.

2. Have this quick debate with your partner(s).
Student A thinks cars are a waste of money; student B thinks cars are a necessary part of
society. Change partners and topics every two minutes.

3. Read the article.

Text B: Resurgent G.M. Posts 2010 Profit of $4.7 Billion

For most of the 20th century, General Motors was the biggest company in the most important
industry in the world. It not only led in automotive innovations, but helped define the new breed of
massive, bureaucratic multinational corporations that shaped the post-war economy. It was the
worlds largest car maker from 1931 to 2008, when it was surpassed by Toyota.
By the time it lost that distinction, such figures were the least of its worries. When oil prices
surged in July 2008, peaking at $145 a barrel, GM suffered badly. Sales plunged 27 percent at a
time when the automaker was laying off workers and cutting costs to try to stay solvent. In the fall
of 2008, despite two years of steep cutbacks, G.M. found itself on the brink, reduced to begging the
federal government for the cash it needed to stay afloat. That December it received $9 billion in
federal aid at the order of President George W. Bush. In March 2009, President Obama forced out
G.M.'s chief executive, Rick Wagoner, rejected the company's restructuring plan and forced it into
bankruptcy court after its creditors balked at deep write-downs.
The bankruptcy process was completed on July 10, 2009 when G.M. sold its good assets to a
new, government-owned company. Brands like Chevrolet, Cadillac and GMC were folded into the
new company, renamed the General Motors Company. The federal government holds nearly 61
percent of the new company, with the Canadian government, a health care trust for the United Auto
Workers union and bondholders owning the balance.
But after one of the biggest corporate collapses in history, the new company made one of the
biggest rebounds ever.
The new G.M. is far smaller and leaner. Brands like Saturn, Hummer and Pontiac were shut
down or sold. Hourly labor costs were cut by more than two-thirds, to $5 billion from $16 billion in
2005.
In its new incarnation, the automaker is proving that it can be profitable at a lower sales
volume. The company announced in February 2011 that it earned $4.7 billion in 2010, the most in
more than a decade. It was the first profitable year since 2004 for G.M., which became publicly
traded in November 2010, ending a streak of losses totaling about $90 billion.
In addition, G.M. said 45,000 union workers would receive profit-sharing checks averaging
$4,300, the most in the companys history.
In another trend, the automaker is trying to produce a subcompact car in the United States and
make money. Where other car companies have turned to low-cost factories in Mexico, China and
Brazil, G.M. is using robotics and a radically revamped production line in Detroit to make its low-
cost model, the Chevrolet Sonic. The car, scheduled to go on sale in the fall of 2011, is also
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expected to be a breakthrough in establishing a new level of cooperation between Detroit and the
United Automobile Workers.
October 2, 2011
Post-reading activities
1. Say whether these sentences are true (T) or false (F):
a. General Motors spent 77 years as the worlds top carmaker. T / F
b. Today Toyota is the worlds number one car seller. T / F
c. Experts predict GMs time at the top will come soon. T / F
d. President Obama approved the company's restructuring plan. T / F
e. G.M. sold its good assets to a new, government-owned company. T / F
f. The new company made one of the biggest rebounds ever. T / F
g. The Chevrolet Sonic is expected to be the worlds best-selling car. T / F
h. GMs goal is turn to low-cost factories in Mexico, China and Brazil. T / F

2. Match the following synonyms from the article:
a. collapse
b. massive
c. trend
d. rebound
e. schedule
f. begging
g. profitable
h. solvent
i. cutback
j. breakthrough

4. very large
5. ricochet
6. asking for help
7. financially sound
8. failure
9. tendency
10. plan
11. money-making
12. reduction
13. step forward
Look at the words above (a-j). With your partner, try to recall exactly how these were
used in the text.

3. Say in other words
- that shaped the economy
- found itself on the brink
- prices surged
- sales plunged
- to stay afloat

- balked at deep write-downs
- made the biggest rebounds ever
- a streak of losses
- a revamped production line
- to be a breakthrough.

Grammar note: Logical connectors
Logical connectors are used to join or connect two ideas that have a particular relationship. These
relationships can be: sequential (since, once, whenever, as soon as, as long as, by the time, during,
after, before, when), reason and purpose (because of, due to, in order to, so that, therefore,
consequently), adversative (even though, although, though, in spite of, despite, however), condition
(if, unless, providing that, etc).
4. Find in the above article logical connectors and say what category are they as in the given
example:
It was the worlds largest car maker from 1931 to 2008, when it was surpassed by Toyota. -
Sequential (Time)

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5. Rewrite the sentences using logical connectors according to the model:
Model: G.M. found itself on the brink despite two years of steep cutbacks.
6. Write a letter to the CEO of General Motors. Ask him/her three questions about why
his/her company is falling behind Toyota. Give him/her three pieces of advice about how to
get back to being the number one carmaker. Read your letter to your partner(s) in your next
lesson. Your partner(s) will answer your questions.
III. Evaluation
1. Speak on the following issues:
1. Give the classification of businesses according to their organization. Speak about difficulties
encountered by entrepreneurs on deciding what type of business to set up.
2. Name the advantages and disadvantages of a sole proprietorship.
3. Compare the sole proprietorship with the partnership. Explain what unlimited liability
means in relation to these two.
4. Give characteristic features of a corporation. Speak about the role of corporations in local
economy.
5. Express your opinion on multinationals. Are they help or hindrance for local economy?
2. Translate the following sentences into English:
1. Exist trei tipuri principale de societi comerciale: ntreprinderea individual, parteneriatul
i societatea pe aciuni.
2. ntreprinderea individual este deinut i exploatat de o singur persoan, care este singura
rspunztoare de ea i are un numr mic de angajai.
3. Bazat pe bunurile individuale ale familiei, ntreprinderea individual d posibilitate
antreprenorului de a realiza o afacere cu propriile metode i idei.
4. Parteneriatul este o asociere ntre dou sau mai multe persoane fizice, dintre care unele
contrubuie cu bani, altele cu ndemnarea sau experiena lor.
5. Partenerii sunt egal responsabili n faa legii pentru datoriile companiei.
6. Fiecare partener se ateapt la cota parte din profitul i pierderile companiei.
7. Prin achiziionarea de aciuni, acionarii devin proprietarii societii pe aciuni.
8. ntr-o S.A. deintorii de aciuni primesc venituri sub form de dividente.
9. ntr-o S.A. acionarii sunt responsabili pentru datoriile ntreprinderii doar n limita cotei de
participare la capitalul social.
10. Antreprenorul este rspunztor de datoriile firmei sale.
11. Se ateapt ca fuziunea celor dou companii s aib loc foarte curnd.
12. Pentru a deschide propria firm este necesar de a stabili clar forma organizatorico-juridic,
reeind din obiectivele pe care le punei n faa ntreprinderii viitoare.




65

Unit 8. COMPANY STRUCTURE

I. Vocabulary

The Company Structure- Structura companiei
A multinational - a business producing and selling goods in several different countries;
(rom: companie multinationala);
Group - a large industrial enterprise usually consisting of a parent company, and several subsidiary
companies; (rom: grup);
Parent company - the main core company in a group. The term mother company is not used
in English; (rom.: societate-mam);
Subsidiary company - one or more companies that are owned by a group.
The term daughter company is not used in English.
Note: Subsidiary should be translated in Romanian as filial, while branch -sucursal.
Division/department - a large unit or section of an organization,
e.g. the companys sales division. (rom: department, raion).

Company Departments
Departamentele companiei
Headed by Managers (BE) or Directors (AE)
efii departamentelor
1. Financial Department
2. Personnel or Human Resources Department

3. Production Department
4. Sales&Marketing Department
5. Public Relations Department

6. Legal Department
7. Purchasing Department serviciu de
aprovizionare
8. Research and Development Department (R&D)


Company Administration
Conducerea companiei
Board of Directors - consiliu director
Chairman - preedinte
Managing Director - -director general

1 Chief Accountant - contabil-ef
2. Personnel Manager = Human Resources
Manager - manager cadre
3. Production Manager - manager producere
4. Sales Manager director commercial
5. Public Relations Officer (P.R.O.) agent de
comunicare/ relatii cu publicul
6. Company Solicitor - consilier juridic
7. Supply Manager- manager aprovizionare

8. Marketolog- marchetolog




Company Secretary - secretar general
Company Top Managers top-managerii
companiei
Chief Engineer ingineref

The staff angajaii
An employee angajat; an employer angajator;
a department head - ef de department;
a foreman- ef de echip;
a white-collar worker- guler alb/angajat care lucreaz la birou;
a blue-collar worker- guler albastru/muncitor;
a skilled/qualified worker - muncitor calificat;
a unskilled worker - muncitor necalificat;
a casual worker- mn de lucru temporar;
a trainee- stagier;
an apprentice ucenic;
a civil servant funcionar.
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Location- Aezare geografic

The Registered/Head Office sediul princiral/nregistrat
An oversees office- oficiu n strintate
A Chisinau-based company- firm cu sediul n Chiinu
Premisis incint, local
Production siteszone industriale: atelier, fabric, uzin
A warehouse depozit.

Responsibilities- Responsabiliti
He is responsible to the MD. - (El) este subordonat directorului general.
He reports to the Financial Director. (El) este subordonat directorului financiar.
She is accountable to the Sales Manager. (Ea) este subordonat directorului de vnzri.
She is in charge of Production. (Ea) este responsabil cu producia.
He is responsible for Research and Development. El este responsabil cu cercetarea i dezvoltarea.
He oversees all the departments. (El) supravegheaz toate departamentele.
She is assisted by two technicians.- Ea este asistat de doi tehnicieni.

Note: the English responsible is an adjective, never a noun.
For: un responsabil an official,a responsible person, an executive.

Vocabulary and Speaking Activities

1. Unjumble the letters in brackets to give the names of departments in a company.
1. This department sells the products. (lasse) .
2. If there is a serious problem with late payments,
this department deals with it. (gelal) ..
3. This department sends all the bills. (toncacus) ..
4. This department deals with suppliers. (haspurcgin) ..
5. This department makes the products. (nodurpocit) ..
6. Employees are the first priority in this department.
(namuh croesuser)

2. Who is in charge for that? Who is responsible for that? Who do they report to?
Match column 1 with 2.

a. Shareholders
b. Production
c. Research &development
d. Human resources
e. Supplier
f. Marketing and sales
g. Board of directors
h. Finance department
__ manufactures the products
__ creates the products
__ sells goods to the company
__ own the company
__ is responsible for personnel issues
__ sells products
__ decides company policy
__ deals with customer accounts and invoices.

3. Eight people are describing their job. Match the people (a-h) with the department they
work in.
a. We buy raw materials and equipment for the company.
b. We help if a client has problems with a product.
c. If there is a problem with a contract, we deal with it.
d. We recruit and train staff.
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e. We study and test possible new products.
f. We find potential clients for new products and organize
advertising campaigns.
g. We manufacture the products.
h. We sell the products.
Company departments: Legal, Personnel, Marketing, Sales, Aftersales, Purchasing,
Production, Research & Development.

4. Discussion. Which do you think is the most interesting department to work in?
Which is the least interesting? Why?

II. Read the text and highlight all the departments, job titles and the description of their
responsibilities.
Text A. AN INTRODUCTION TO THE COMPANY

A group of newly appointed trainees begin training courses on Soltecs management training
programme. They are listening to the personnel manager, Margaret Singer, describing the company
structure.
So, thats your program for your weeks initiation course. Well be breaking for coffee soon but,
before we do that, Id like to give you a brief introduction to Soltec: its history, development and
current activities, beginning with a look at the company structure.
So, if you look now at the overhead transparency here, Ill just run through it for you.
At the top of the pyramid, so to speak, is the Board of Directors, which itself is headed by our
Chairman, Sir Charles Weir-Brown, who is also the companys Managing Director. With Sir
Charles here at the head office in Bromley are the five divisional managers: the Personnel Manager,
Chief Accountant, Production Manager, Sales Manager and Company Secretary. In addition, the
personnel, finance, company administration and sales departments are all centralized here, although
there are, of course, also employees of these departments present at our five production sites.
If we look, then, at the second line of the company organization chart, you can see these five
divisions: personnel, finance, production, sales and company administration.
Two department heads, responsible for training and administration, report directly to the personnel
manager. The company administration department has a similar make-up, with the Company
Solicitor-head of the legal department- and the deputy Company Secretary who is responsible for all
company administrative and legal matters. In addition, the Secretariat takes care of office supplies.
The Sales Manager has under him four departmental heads, responsible for marketing, advertising-
we do much of our own here, as well as subcontracting out to many medium-sized companies- and
the domestic and export markets.
Production has a similar four-way split. We have a centrally organized purchasing department
whose role is to buy in supplies as and when needed for the production plants. We operate a just-
in-time parts supply procedure to save very expensive storage space. Then there are the five
production plants themselves: three in the UK, one in Singapore and one in France, each headed by
a plant manager. Then, our centrally-organized transport department, witch runs a fleet of
articulated lorries for roll-on roll-off container transport, particularly between the UK and the
Continent. In addition to those, there is the Research Department responsible for R&D- research
and development- without which we couldnt keep our lead over our competitors in this highly
competitive field.
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Finance has three main departments: accounts responsible for keeping the books, financial
planning, which looks after forecasting and budgets, and the internal audit and includes therefore an
O&M organization and methods - section.
Are there any questions about that? No? Well, than, lets move on to company history
(Source: Brookes M., Horner D. Business Englishp.197)
Post-reading activities

1. Read the text and answer the following questions:

1. Where is the head office of the company Soltec located?
2. What is Sir Charles Weir-Browns position in the company?
3. What departments are centralized at the head office?
4. What departments report directly to the personnel manager?
5. Whom does the Financial Planning department report to?
6. What other departments report to the Chief Accountant?
7. What department buys supplies for production plants?
8. What do R&D and O&M mean?
9. How do you think what are the companys principal business activities?

2. Read the text again and fill in the blanks in the following sentences:
1. The Board of Directors ______________ the Chairman.
2. Two department heads _________________ for training and administration and
__________________ to the personnel manager.
3. The company Solicitor __________________ the legal department.
4. The Secretariat _______________ office supplies.
5. The Sales Manager ______________ four departmental heads.
6. We have a purchasing department _______________ buy in supplies.
7. The internal audit _____________ an O&M section.



3. Find in the text A the English equivalents to the following phrases and word combinations:
1. conducerea companiei
2. departamentul de vnzri
3. n sediul central din Bromley
4. ncheind contracte de antrepriz cu firme de mrime mijlocie
5. manageri de sector
6. n cinci zone industriale
7. are o structur similar
8. se ocup de aprovizionarea cu rechizite de birou
9. are n conducerea sa patru efi de departament
10. rspunztor pentru instruire
11. curnd vom lua o pauz
12. departament de transport centralizat
13. a aproviziona uzinele cu materie prim
14. a deine ntietatea asupra competitorilor notri
15. a face ecomomii pe spaiul de depozitare scump

69

4. Here is the Solteccompany organization chart. Fill in the missing information.

Language note: Presenting your company

Where it is
The company is based in
The head office is in
Our subsidiary/factory/office is located in
Products and services
My company specializes in
Our main products are
We manufacture/produce/make
We sell
Size
We have annual sales of
Our annual turnover is
We employ

5. Using the Soltec company organization chart make its presentation.
6. Make a presentation of a firm you know according to the plan, using the vocabulary of the
lesson. The language note may be helpful.
a) Name of the firm, registered head office;
b) Main products (services), basic activities and auxiliary ones;
c) Turnover and profits;
d) Number of employees;
e) Prospective of your firms growth.


Grammar Note: THE CONDITIONALS

The First Conditional is used to express a possible condition and a possible result.
E.g. If they offer me a job, I will accept it. (Note that will is not used in the if-clause)
The Second Conditional is used for something unlikely to happen.
E.g. If they offered me the job, I would accept it. (..but I dont think they will offer it to me)
The Third Conditional is used to talk about an imaginary situation in the past.
E.g. If they had offered me the job, I would have accepted it. (but they didnt offer it to me)
Alternative forms: if can be replaced by unless=ifnot or in case=if by any chance
E.g. I wont ring you, unless there are any problems.
= Ill ring you if there are any problems.
Ill take the train in case the traffic is heavy.
-
-
. .
-
. .
.
.
.
. .
. .
.
. .
. .
.
. .
.
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7. Here is a list of possible future events. If you think something might happen, use a first
conditional form. If you think something is unlikely to happen, use a second conditional form.
Make sentences about these possible events.

a) You become chairman of the company you work for.
b) Someone offers you a job in another country.
c) You win a million dollars.
d) The president of your company invites you to dinner.
e) You get promoted.
f) You decide to start your own business.
g) Your company makes you redundant.
h) You finish work early tomorrow.
i) You learn to speak perfect English.
j) Your company launches a new product.
k) You go into the red.
Make the above events look as imaginary situations in the past (use the IIIrd
conditional).

8. Put the verbs into the correct tense. Use will and the present tense if you think the
person is talking about something that might happen. Use would and the past tense if
they are talking about something that is unlikely or impossible.

1) If I ____________ (have) time, I _______________ (read) your report and Ill let
you have my comments by Monday.
2) The whole division has been performing badly ever since he was appointed Managing
Director. Things ____________ (be) very different, if I _______ (be) still in charge.
3) The Financial Manager is coming to the meeting with me and if there ___________
(not/be) any disagreements, we __________ (sign) the contract this afternoon.
4) Ive decided not to take the job because I __________ (hardly/see) my children at all if I
__________ (have to) travel so much.
5) If she _________ (have) a little more experience, she ________(be) perfect for the job, but I
dont think she is the right person.

III. Evaluation
1. Speak on the following issues:
1. Make a presentation of a Moldovan company.
2. Using the Soltec company organization chart make its presentation.
3. Speak about a well-known multinational company.

2. Translate the following sentences into English:
1. Managerul cadre este direct subordonat directorului general.
2. Soltec este o companie englez cu sediul central n Bromley.
3. n vrful piramidei se afl consiliu director, al crui preedinte este nsi directorul general,
dl. Charles Brown.
4. ntrunirea consiliului director se va ine (va avea loc) n sediul central al companiei la sfritul
lunii.
5. Adjunctul secretarului general este responsabil de soluionarea tuturor intrebrilor
administrative i legale din cadrul companiei.
6. De achiziionarea materiei prime i echipamentului pentru cele cinci uzine de producere se
ocup serviciu de aprovizionare.
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7. La edina anual preedintele consiliu director se va adresa actionarilor.
8. Att responsabilii comer intern i extern, ct i cel de la serviciu publicitate raporteaz
direct directotrului comercial.
9. Urmrii pe transparena de mai sus structura companiei, prezentat de ctre managerul
cadre Margaret Singer.
10. Avem cinci uzine de producere: trei in Marea Britanie, una n Singapore i una n Frana.


Unit 9. NEGOTIATIONS &CONTRACTS

I. Vocabulary
Negotiations
Negotiation - a discussion that should result in an agreement or contract; (rom: negociere);
Parties - persons or organizations trying to reach an agreement in a discussion satisfactory to
both; (rom: parte, persoan fizic sau juridic implicat ntr-un contract);
Agreement - a decision or arrangement, often formal and written, between two or more people;
(rom: accord, contract);
Deal - a business transaction; (rom: accord sau afacere comercial);
Tender - a written or formal offer to supply goods or do a job for an agreed price;
(rom: licitaie, ofert); syn: offer, proposal; opp. counter-offer contra-ofert;
Concession - accepting less on one specific point in order to get something from the other person
on a different point; (rom: concesie);
Compromise- an agreement where you get less than you want but also give less than the other
person wants; (rom: compromis);
I ssue- a topic that needs to be discussed in a negotiation; (rom: problem, ntrebare);
Quotation - the price that a person says they will charge to do a piece of work; (rom: cotaie, deviz);

Contracts
Contract - a written legal agreement between two people or businesses that says what each must do
for the other or give to the other; (rom: contract);
Clause- a part of a contact that officially states that something must be done; clauz, condiii
syn: article; (rom: clauz);
Terms - the conditions of a legal, business, or financial agreement; syn: stipulations;
(rom: termeni, condiii);
Null and void- invalid; without legal force; not binding; (rom: nul i neavenit);
Discount- a reduction in the usual price; (rom: reducere de pre exprimat n procente,
rabat comercial);
Guarantee- promice that a product will be repaired or replaced if faulty;
Delivery- the act of taking goods, letters, parcels, etc. to people's houses or places of work;
(rom: livrare);

Verb-Noun Collocations
To negotiate a salary increase- a negocia o crestere de salariu
To enter into negotiations a ncepe negocierile
To quote for the equipment- a estima/a oferi un pre informativ de lire sterline
To tender for a contract- a prezenta oferta
To achieve a win-win result - a atinge un rezultat satisfctor
To reach/come to an agreement- a ajunge la nelegere
To break the terms of an agreement- a nclca termenii ontractului
To kick things off=to start a discussion- a ncepe o discuie
72

To make a concession- a face o concesie
To meet half-way- a ceda reciproc
negotiations break down- negocierile au euat
to brake off negotiations- a ntrerupe negocierile
to draw up a contract a ntocmi un contract
To sign a contract a semna un contract
To stipulate sth in the contract- a stipula ceva in contract
To be under contract- a fi angajat
To void a contract a rezilia un contract

Vocabulary and Speaking Activities
1. Choose suitable words from the list below to complete the blanks in the sentences.
Concession(2) deal issue offer agreement compromise party(2)
1. After six long months, we now have a final _______.
2. Money is the biggest ________ in this negotiation.
3. If ______ A accepts _______B's proposal, then the negotiation is finished.
4. Okay, you've made a ________ on price, so we can make a ________ on the delivery date."
5. This _______ is the ideal _________ between your needs and their demands.
6. The company withdrew their _______ of employment.

2. Make pairs of synonyms according to the model.
Model: Deal- agreement
Issue, changes, arrangement, to quote, concession, problem, compromise, agreement,
transaction, to charge, fluctuations, deal

3. Negotiators use the language carefully. Match negotiators words with his thoughts.

1. We are prepared to consider your offer.
2. On condition that you we could
3. We could consider hedging against
currency
4. That would be acceptable.
5. Im afraid thats not company policy.
6. May I suggest that we begin by
7. Can you quote me ex-works?
a. We agree to your offer.
b. I need a price ex-works.
c. Well wait until the whole work is
clear.
d. We can agree to that.
e. Its just not possible.
f. Lets begin.
g. If you we may

4. Complete the expressions with the given words.

get agree deal reasonable for throw make
manage mind prepared flexibility room halfway work

Opening the negotiation
1. So, shall we get down to business, then?
Stating problems/interests
2. We were looking to _______ an order of 100 cases.
3. What sort of price do you have in _______ ?
4. We were hoping _______ a unit price of around 4.50.
Bargaining
5. Would you be willing to meet us _______ ?
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6. 6. If you cut your delivery time by, say, 10 days, we would be _______ to to pay the
price you have proposed.
7. Wed need to see a bit more _______ on terms of payment.
Rejecting a proposal
8. Come on, lets be _______ here.
9. Unfortunately, I dont have any more _______ to negotiate this fee.
Accepting a proposal
10. I suppose we could _______ that.
11. I think we could _______ something out here.
12. I think we could _______ on 3 weeks.
13. Ure, we can _______ that in.
Closing a deal
14. OK, its a _______ . (source: http://www.linguahouse.com/worksheet/negotiating-deals)

II. Read the dialog between Mr. Ashton, the Sales Manager of the company
Continental Equipment Co. and Mr. Sobor, the Deputy Director of the firm
Lincons LLC.
A:
S:
A:
S:

A:
S:
A:
S:
A:
S:
A:

S:
A:
S:

A:

S:
A:
S:
A:
S:
A:


S:
A:


S:

A:
Mr. Sobor, its nice to see you again.
Nice to see you too, Mr. Ashton.
Shall we start with coffee or get down to business straight away?
Perhaps well start the talks and have coffee a bit later. May I suggest that we begin by discussing
prices, after that well pass to the delivery period?
Youve seen our machines in operation, havent you?
Yes, we have. And we are more or less satisfied with their performance.
I glad to hear that.
Whats your best offer for a delivery of 10 machines?
Our proposal would be a unit price of 50 000, CIF, excluding tax.
Is your price subject to a discount?
Its not our company policy, but if you order a great number of machines or pay in cash, than you
are granted a discount of 10%.
Oh I see. And what do you consider a great number?
Over 25 machines, lets say.
All right, Mr. Ashton we are going to order 50 machines, if the price is reasonable. Could you
give us a 20% discount?
Thats a bit too much. Well meet you halfway, though, and make it 15%, Mr. Sobor, but thats
final.
I agree. Now, what about the delivery times?
Well, we can deliver the 1st shipment of 10 machines in 5 months.
Im afraid its a long delivery period.
Well, this is the usual period. Do you want it to be delivered quicker?
We expect 3 months maximum delivery.
I see what you mean but that would be very difficult. We are heavy with orders. Our equipment is
in great demand, because its of high quality and meets the customers requirements. Look, if I
can promise your delivery in 4 months, does that help?
Im afraid, thats not enough.
You see, it goes without saying its really a very short deadline in this business. You really are
asking us for something that is very difficult. Ive made a little concession so, Ill have to consult
with my colleagues and come back to you, but I cant see what we can do.
May I make a suggestion? If you deliver all the machines in 4 weeks we might be able to talk
about further order.
If you can promise another order I think we could accept your terms.
74

S:

A:
S:
A:
S:
Lets summarize the conditions: 3 months delivery and 15% discount on the initial price.
Decision on the next order by the beginning of June, not late that the 3rd of June.
Exactly. If you could confirm this in writing, Ill be much obliged to you.
Shall we call it a day than?
Yes, we can. See you tomorrow morning at 10.Goodbye!
See you tomorrow.


Post-reading activities

1. Find English expressions in the dialog which correspond to the following:

1. care ar fi oferta dvs. pentru o comand de...
2. ndeplinete cerinele clientului
3. propunerea noastr este un tarif unitar de...
4. exist o cerere mare pentru echipamentul
nostru
5. am putea accepta condiiile d-r
6. ntr-adevr e un termen foarte scurt
7. avem multe comenzi
8. ne-ai putea oferi o reducere
9. trecem la treab imediat
10. va venim n ntmpinare
11. se subnelege
12. termenele de livrare



2. Idiomatic expressions make the language more colourful. Match the idiom (1-10) with
the appropriate explanation (a-j).

1. meet (someone) halfway
2. reach a stalemate
3. rock-bottom offer
4. get down to business
5. read between the lines
6. call a spade a spade
7. make a concession
8. stand ones ground
9. have an ace up your sleeve
10. piece of cake
a. to maintain and defend one's position
b. to change your position in favor of the other person
c. start working
d. to have sth. in reserve with which you can gain an
advantage
e. to compromise with someone
f. to arrive at a position where no progress is being made
g. the lowest price that one can offer to buy sth.
h. to be very easy
i. speaks openly and truthfully about difficult matters
j. to understand the meaning of sth. by guessing what is
not said

Language Note: Making suggestions
Well, wed better get down to business.
I suggest you / we take all the factors into consideration before we decide.
Why dont we (do something together)
I think you should buy

Way to say Yes during a negotiation

I agree with you on that point.
In the spirit of compromise, I would suggest
So what you are saying is that you
You have a strong point there.
I think we can both agree that

Way to say No during a negotiation

I understand where you are coming from;
however
Im prepared to compromise, but
If you look at it from my point of view
Im afraid I had something different in my mind.
Is that your best offer?
I am reluctant to accept.
75

3. Pair work. Using the following ideas practice negotiating. Try to keep your dialog
going for at least 5 minutes. When you have finished change roles.
A: Greet the other person. Ask about his flight/travel.
B: Say something nice about partners country/office.
A: Suggest going down to business.
B: Enquire about the characteristics of the product/service you intend to buy.
A: Give a short description mentioning its advantages/competitiveness on the market, etc
B: Enquire about the price, discount offered, delivery terms, etc.
A: Continue the conversation.
B: Continue the conversation.

4. After talks in London Mr. Sobor has signed the contract between Continental
Equipment Co. and Lincons LLC for the supply of construction machinery. Read a
part of this contract.

London, England May 25,
2013

Continental Equipment Co., London, England, hereinafter referred as the Seller, on
the one part, and Lincons LLC, Chisinau, Moldova, hereinafter referred as the Buyer,
on the other part, have concluded the present contract as follows:
1. Subject of the contract
1.1 the Seller has sold and the Buyer has bought the machinery as listed in appendix
1 being an integral part of this contract.
2. Prices and Total Value of the Contract
2.1 the total contract value is as following:
Machinery + documentation _____
Supervision, start-up, training _____
Discount _____
Total Contract Value _____
2.2 The prices are firm for the duration of the Contract and shall not be subject
to any revision
3. Time of Delivery
4. Terms of payment
15. Legal Addresses of the Parties

Seller Buyer
Continental Equipment Co. Lincons LLC
9 South Road, 10 Uzinelor str.
London, England Chisinau,
Moldova

For and on behalf of the Seller For and on behalf of the Buyer
Alfred Ashton, the Sales Manager Mr. Sobor, the Deputy Director

5. In a contract you may find the following clauses:
a. a insurance clause
b. a penalty clause
c. an arbitration clause
d. technical documentation
e. terms of payment
f. force majeure
76

Look at the extracts from business contracts. Match each extract with one of the clauses
above.
1. at a rate of 100% of the total contract value is to be effected in GB pounds
2. five percent for each month of delay
3. The Parties are released from their responsibility for partial or complete non-execution of
their liabilities
4. from the moment of its dispatch up to the moment of its arrival at the port of Odessa.
5. will take all possible measures to settle amicably any disputes
6. all instructions on the drawings are to be in English

6. By combining a word in row A with one in row B youll get a word combination.

A to offer delivery firm spare to make best to reach
B an agreement offer parts discount order progress time

Make up sentences with the above word combinations.

7. Use some of the verbs to fill in the gaps below.
break, draw up, renew, cancel, negotiate, renegotiate, terminate

After the terms of the contract have been _______ with a business partner, the legal department
______ a draft contract. The members of the legal department have to take into account the
possible course of action to be taken if the contract is later _______ or _______ by either or the
parties involved. Moreover, provision also has to be made for the contract to be _______ or
_______.

Grammar note: Passive Voice
Passive voice is used when the focus is on the action. It is not important or not known, however,
who or what is performing the action. e.g. The contract has been signed.
Sometimes a statement in passive is more polite than active voice, as the following example shows:
e.g. A mistake was made. (I focus on the fact that a mistake was made, but I do not blame anyone)

8. Rewrite the sentences in passive voice.
1. We arranged a meeting.
2. I confirm the reservation.
3. We will deliver the goods immediately.
4. You can cancel the contract within five business days.
5. We are processing your order.
6. He has not answered our letter.
7. She did not sign the contract.
8. I have witten the final report of the company.

III. Evaluation

1. Translate the following sentences into English:
1. Condiiile sunt stipulate prin contract.
2. Nu putem efectua livrarea nainte de sfritul lunii.
3. Ni se va acorda o reducere de 5% la plata n numerar.
4. Care sunt condiiile de plat?
77

5. M tem c nu ar fi n acord cu politica firmei.
6. Trebuie s avem certitudinea c primim marfa la timp i nu ncetinim producia.
7. Suntem perfect credibili n ce privete termenile de livrare.
8. Noi facem concesii n ceea ce privete comenzile i termenele de plat, iar dvs. reducei
termenul de livrare i ne acordai o mic reducere.
9. Sunt nelinitit pentru c mi se pare c suntem pe punctul de a pierde contractul de
10. Sunt sigur c putem ajunge la un compromis.
11. Suntei un foarte bun negociator!
12. ntotdeauna mi-a fcut plcere s fac afaceri cu dvs.

Unit 10. JOB HUNTING

I. Vocabulary
Looking for a job cutarea unei slujbe
J ob- a paid position of regular employment; a task or piece of work, especially one that is paid;
syn: post, position; (rom: loc de munca, post, funcie);
Occupation- a job or profession; a way of spending time; Syn: calling, trade; (rom: profesie);
Vacancy (pl.vacancies)- an unoccupied position or job; (rom: post disponibil, post vacant);
Wanted (inf.) - a small ad in a newspaper or magazine; (rom: se caut sau oferte de munca) ;
Recruitment- the action of enlisting new people in the organization/army;
(rom: recrutare, completare); Recruit membru nou, recrut ;
J ob hunting - seeking employment; (rom: cutarea unui serviciu); Job-hunter, job-seeker;
Headhunting- the practice of identifying and attracting into a company a suitable person
employed elsewhere to fill a business position; (rom: vntoare de capete);
Headhunter agent de recrutare/vntor de capete.

Applying for a job solicitarea unei slujbe
Applicant- a person who makes a formal application for something, especially a job;
(rom: solicitant, candidat); application solicitare;
Application deadline the latest time or date by which job application should be completed;
Syn.: closing date; (rom: data limita de depunere a cererii);
Curriculum Vitae(C.V.) = personal data, resume(A.E.); (rom: CV);
I nterview an oral examination of an applicant for a job; (rom: interviu);
Asset a useful or valuable thing or person; (rom: avantaj, atu);
J ob holder- a person that holds a job; (rom: salariat);
Fringe benefits -an extra benefit supplementing an employees money wage or salary, for example
a company car, private health care, etc.; (rom: beneficii suplimentare, indemnizaii);
Perks (inf.) - a benefit to which one is entitled because of ones job; (rom: avantaje);
Promotion prospects- the possibility or likelihood of some future promotion occurring;
(rom: posibiliti de promovare);
J ob satisfaction- fulfilment of ones wishes, expectations, or the pleasure derived from a job;
(rom: satisfacie profesional).

Qualifications titluri i competene, calificri
University graduate licentiat (al universitii);
Scientific degree grad tiinific;
Skilled worker muncitor calificat;
Unskilled worker muncitor necalificat.

78

Job Requirements exigene
Fluency in English vorbirea fluenta a limbii engleze;
Preferred age - de preferin n vrsta de ; age bracket grupa de vrst;
Well versed in competent n;
A basic requirement o condiie necesar;
Business acumen sim al afacerilor;
To be able to operate with minimum supervision s fie capabil s deruleze o afacere n
condiii de minim supraveghere;
To be able to travel extensively trebuie s poat s cltoreasc frecvent;
To be self-starter a fi capabil de a demara o afacere, o aciune;
Two years experience in this capacity doi ani de experienta in aceasta functie;
A background knowledge of accountancy cunostine aprofundate de contabilitate.

Unemployment - omaj
Being unemployed = workless, jobless, redundant; (rom: a fi in omaj);
Dole- unemployment benefit; (rom: alocatie de omaj);
Retirement- the action or fact of leaving ones job and ceasing to work; (rom: pensionare);
early retirement- pensionare anticipat.


Specialized verbs

To employ = to hire = to recruit= to take on =to engage a angaja;
To be suited for a job a fi potrivit pentru un post;
To apply for a job- a solicita o slujb;
To hold a post (as/of) a ocupa un post (de);
To appoint sb. to a post (to a position) a numi pe cineva ntr-un post;
To earn a salary/wage- a ctiga un salariu;
To make a living-a-i ctiga existena;
To be on the payroll of the company- a fi salariatul firmei;
To promote to a position/ rank a promova intr-un post; Opp.: to demote- a retrograda;
To resign from a post- a demisiona dintr-o funcie; to tender ones resignation- a-i da demisia;
To dismiss=to fire= to sack a concedia;
To lay off= to make redundant- a disponibiliza din raiuni economice;
To be fired for professional misconduct- a fi demis pentru o eroare profesional;
To be on the dole- a beneficia de alocaie de omaj;
To retire from the Navy- a iei la pensie din marin;
To take a sick leave - a-i lua concediu medical;
To take a day off/holiday - a-i lua o zi liber/concediu.
Vocabulary and Speaking Activities

1. Match the English sentence (1-7) with its Romanian equivalent (a-g).

1. The position requires business acumen.
2. Some occupations offer an employers
pension as a fringe benefit.
3. Applications are invited for the position of
....
4. Successful managers are headhunted from
a. Se solisita depunerea de cereri pentru postul
de .
b. Interviul va avea loc la mijlocul lunii
octombrie.
c. Managerii de succes sunt recrutai de la
companiile mai mari.
79

larger companies.
5. It will be considered an asset.
6. Interviews will be held in mid-October.
7. He resigned from the post of Foreign
Minister.


d. El a demisionat din funcia de ministru de
externe.
e. Postul cere un dezvoltat sim commercial.
f. Va fi considerat un atu.
g. Unele posturi ofer o pensie a angajatorului
ca un beneficiu suplimentar.
2. Find the opposite.
1. to be promoted
2. to resign from the post
3. to take on
4. to be on the dole
5. to start a career
6. looking for a job
7. a drawback
8. retention on wages
9. closing date
10. job discontentment

3. Look at the adjectives below. Match each of the definitions (a-g) with one of the adjectives.
The first one is done for you.
Calm outgoing punctual
Ambitious practical dynamic
Sensitive persuasive good with figures
Patient reliable good with words
Precise hard-working energetic

Definitions:
a) someone who wants to get to the top ambitious
b) someone who thinks of other peoples feelings
c) someone who doesnt panic
d) someone who rarely makes mistakes
e) someone who you can trust or count on
f) someone who can change peoples opinions
g) someone who is good at finding solutions to problems

4. Discussion. Here are some different jobs: research scientist, lawyer, engineer, teacher,
secretary, pilot, doctor, accountant, and salesperson.
a) Who earns the most? Who earns the least?
b) Which is the most interesting job?
c) Which job would you prefer to do? Why?
Can you name some new jobs, such as realtor, .

5. Now match the adjectives in ex.3 with the jobs in ex.4. Make sentences like this:
An accountant must be good with figures.

6. How do you understand the words job satisfaction? What do you want from your job?
Look at this list and add any other points you can think of.
1. __ a good salary
2. __ a job for life
3. __ the chance to learn something new
4. __ opportunities for promotion
5. __ a good boss
6. __ a good team of people to work with
7. _ the chance to develop your own ideas
Now number them from 1 to 7 (least important). Compare your answers with a partner.
80

II. Read the following dialog to see whats Johns understanding of job satisfaction.
Bob:

John:



Bob:
John:


Bob:
John:





Bob:
John:


Bob:
John:






Bob:

John, its nice to see you after such a long time! So, tell me about your job situation. What
are you up to these days?
Well, I have had rather a chequered career so far. I was on the payroll at BDB for five
months- although I was at the bottom rung of the ladder, it was a really interesting job with
lots of perks, including a very good pension scheme. Than I was laid off because the
company was in financial difficulties, so I had to start looking again.
Oh dear, so what happened next?
After a few months I was taken on by MPL as a junior executive despite my lack of
experience. I wanted to further my career quickly and the pressure was very intense so I
made a big mistake- I tried to bribe a purchaser and I was dismissed for professional
misconduct.
That must have made it difficult to find another position.
I was lucky again- there was a labor shortage at that time so I was hired by NYR. They had
regular employee appraisals and a promotion by merit system so my career developed very
quickly. There were lots of fringe benefits and a good holiday leave. It was an easy
company, and if I needed time off there were not questions asked as long as the job got
done. However, the job itself didnt really match the job description and although I earned
a very good salary, there wasnt much job satisfaction and I soon felt that I was in rather a
rut.
What a difficult decision to take- all those advantages and you still werent happy.
That was the trouble, I began to take a lot of unpaid leave on top of my paid leave and so
the management felt that the job wasnt done properly. I was asked to leave with a small
golden handshake and so I had to go back to the head hunter.
Time was marching on by than, what did you do next?
I had a short period of unemployment- between the jobs if you like, and than rather like a
cat with nine lives, I found a job abroad. I was employed by PLP, this time as a senior
manager. This was really a steady job- I enjoyed the challenge and loved being an ex-pat. I
had found a job with a future and I spent many happy years with them. Unfortunately, as
with many major multinationals, by the age of 50 you have outlived your usefulness and
the company began a policy of trimming senior employees. They have set up an early
retirement scheme which is fairly tempting, so I think that I shall tender my resignation
soon and start a life of leisure.
Join the club! I gave up my job two years ago. However my wife is a real career girl- a
bit of a workaholic really, and she is delaying her retirement. She seems to be groomed
for the top and I reckon shell be appointed CEO before she decides to join the ranks of the
retired.
(Source: Sirena Murdoch-Stern, p.18)
Post-reading activities

1. True or false.
1. John has had a steady climb on his career ladder.
2. Only after five months of employment at his first job he was made redundant.
3. John has had a brilliant career at PLP.
4. Due to lots of fringe benefits and a good holiday leave John enjoyed working for NYR.
5. John was laid out for professional misconduct by mistake.
6. John has never had long periods of unemployment.
7. After tendering his resignation John will retired.
8. Bob was laid off two years ago.


81

2. Explain the following word combinations:
1. A real career girl..
2. Being an ex-pat
3. Join the club!
4. To outlive ones usefulness
5. To be in a rut

3. Find in the text English equivalents to the following word combinations:
a. am avut o carier haotic
b. m situam la baza ierarhiei
c. punctaj avantajos pentru pensie
d. am fost disponibilizat
e. pe motiv de greeal profesional
f. system de evaluri periodice
g. promovare pe merite profesionale
h. simt c m plafonez
i. o despgubire confortabil
j. statut de emigrant
k. amn momentul pensionrii


4. Read the text So, You Are Looking for a Job to find out what one should do when
looking for a job.
So, You Are Looking for a Job
What must you begin with?
A civilized and active means of looking for a job is studying the market of the offered vacances
to get an idea of necessary demands and size up your own chances. The best way of doing this is to
use the help of employment agencies or to independently study the ads of job opportunities being
published. Solid companies place ads in prestigious publications with a firm reputation.
Your task is to understand whether the position being offered is consistent with the level of
your skills, education, and experience in work. The structure of job ads is usually the same: the
name of the vacant position, the list of the candidates professional duties, the demands made of the
candidate, and the system of benefits and compensations.
Having carefully studied the demands and duties being offered, an experienced reader may
extract information of the activities of the company and the prospects of its development.
Pay attention to the positions name, mainly the English name. For instance one may be misled
by the incorrect interpretation of the word assistant which doesnt imply at all secretarial
functions. It means mate, aid, apprentice manager, high-class specialist capable of independently
tackling the tasks set to him.
Therefore using all possible means, try to learn as much as possible about the position to
prepare yourself as best as possible for a meeting with the future employer.
Carefully read the demands made of the given position. For example, the demand of a free
command of a foreign language implies an ability freely to deal with a foreign manager,
competently to complete documents and speak on the phone. In general, if the ads meticulously
enumerate the software products, systems, languages, etc., which a candidate must necessarily
know, remember that these demands have a strictly binding force.
Thus, you have decided to find a job: carefully study the ads given by employment agencies.

Make a list of what shouldnt one do when looking for a job.

5. Writing. In 100 words answer one of the following questions:

1) Do you think that choosing an occupation is more difficult today than it used to be for young
people 30 or 40 years ago? Give your views.
2) By what age (18, younger? older?) should a person know what he wants to do? Discuss your
idea with your colleagues.
82


Grammar Note: PRESENT PERFECT vs. PAST SIMPLE
We use the present perfect to talk about an action or an event in the past which is unfinished.
e.g. He has worked for Mediapro for three years. (He still works for it.)
We use since for a moment in time. E.g. since 2000, since June, since two oclock
We use for with a period of time. E.g. for seven years, for half an hour, etc
When talking about events that happened at an unspecified time in the past, we use the present
perfect.
When we ask or talk about a specific time, we change to the Past Simple.
e.g. Have you ever worked in South America? - Yes, I have. Present Perfect
When did you work there? Last year. I worked in Peru. Past Simple

Correct
Past Simple
I graduated from TUM last year. ( thats when
the ceremony occurred)
I finished the TEMPUS project last week.

Present Perfect
Have you ever visited Madrid?
(we are only interested whether someone has
done something, not when they did it)
I ncorrect

I have graduated since 2012.

I finished the TEMPUS project last
week.

Have you visited Madrid two years
ago?


6. Sometimes we can say the same thing in different ways. Look at this example.
e.g. He has worked for the company for two years.
He joined the company two years ago.
Re-write these sentences with the words provided.
a) She has been employed as a chief engineer for two years. (be employed / ago)
She was employed as a chief-engineer two years ago.
b) Its eleven oclock and Ive been here since nine. (arrive /ago)
c) We acquired the office in the centre of the city five years ago. ( own / for five years)
d) She became Sales Director in 1993. ( be / since)
e) I bought this equipment in 2012. (have / for)
7. Put the verbs in brackets into the correct form (present perfect or past simple).
1. He _______ (work) for the company for 15 years before leaving to set up his own business.
2. This candidate ________ (have) a lot of experience with computers.
3. Adam Smith _______ (be) a great economist.
4. Mary _______ (work) as an accountant from 1992 to 2012.
5. Nobody ________ (see) the Chairman this morning. (Its 11 a.m.)


SUPPLIMENTARY READING
Text: WOMEN IN THE LABOUR FORCE
(Begg David, Fisher Stanley, Economics, McGraw-Hill Book Company, 1991)
The change has been so rapid and fundamental that economists have called it a revolution in the
U.S. labour force. A generation ago the "typical" American woman, with or without children, was
not employed outside the household. By the late 1980s, however, well over 50 percent of all
83

American women worked outside the home; in the key age group of 25 to 44, the labor-force
participation rate was over 70 percent.
Not only do more women have jobs, but they work longer hours, and motherhood is not as
much of a deterrent as it used to be. Sixty percent of school-age children have mothers in the labor
force, compared to 39 percent in 1970. Moreover, the fastest-growing segment of the labor force
consists of women with children under six years old.
The revolution is expected to continue. Now that the baby-boom generation has begun to reach
middle age, the pool of young workers is shrinking. As companies cast their nets ever wider to find
qualified new employees, the proportion of jobs held by women will continue rising, so that by the
year 2000 the total number of working women will nearly equal the number of working men.
This revolution has had and will continue to have - profound social and economic
consequences. Day care, for example, has become a burning issue. Some women are dissuaded
from working because of a lack of acceptable day care for their children; others lose valuable
productivity when they have to deal with such problems as the baby sitter quitting or Johnny
catching the flu. Although both the federal and state governments are getting involved, businesses
themselves will provide part of the solution. More and more, large companies are realizing that one
way to attract and keep women workers is to offer help with day care. As late as 1988 only about
300 corporations sponsored their own day-care facilities, but the number should grow rapidly as
companies compete for female employees. Flexible schedules, family leaves, alternative work styles
these are other corporate accommodations that allow women to balance the demands of home and
work.
Overall the feminization of the work force has proceeded smoothly perhaps surprisingly so for
a revolution. But many sensitive issues remain to be dealt with in the 1990s and beyond. Should
companies have a mommy track and is this an aid for female employees or a new form of
discrimination? Is sexual harassment on the job increasing, and are companies doing enough to
prevent it? Should special executive training or mentoring programs be there established to offer
women a better chance of advancement?

(Cited on http://www.esp-world.info/Articles_1/teaching.html)

Reading comprehension:

a) Without referring back to the text, describe a typical American woman a generation ago.
b) Enumerate social consequences of revolution in labor force.
c) What is the relation between the revolution in the US labour force and sexual discrimination of
women on the place of employment?
d) Explain the following expression from the text: companies compete for female employees.
e) Suggest possible measures to help women balance home and work in our country.
f) Decide, where the situation is more favorable to employment: in our country or in the USA. Give
your reasons.
g) Evaluate the situation with women employment in our country and suggest measures to improve
it.

III. Evaluation
1. Speak on the following issues:
1. List the steps in a job-hunting process and comment them.
2. Explain what one should do and what shouldnt do when looking for a job.
84

2. Translate the following sentences from Romanian into English.
1. Exist cteva ci tradiionale de cutare a unui loc de munc cum ar fi: prin intermediul
anunurilor publicitare, ageniilor for de munc i de la om la om.
2. Un mod civilizat i activ de cutare a unui serviciu const n cercetarea pieei locurilor de
munc, pentru a-i forma o viziune clar asupra cerinelor fa de candidat i a-ti estima ansele
proprii.
3. Companiile solide i plasez anunurile n publicaii scumpe, prestigioase, cu o reputaie ferm.
4. Sarcina ta principal este s sesizezi dac postul oferit este compatibil cu abilitile tale,
educaia i experiena de munc.
5. Structura avizelor cu oferte a posturilor de munc este asemmtoare: denumirea postului
vacant, lista obligaiunilor profesionale ale candidatului, exigene fa de candidat, precum i
sistemul de benficii i compensaii.
6. Studiind atent cerinele i obligaiile prezentate, un cititor exigent, experimentat poate extrage
informaii privind activitile companiei i perspectivele ei de dezvoltare.
7. Aadar, folosind toate mijloacele posibile, ncerc s afli ct mai mult despre postul oferit,
pentru a fi pregtit ct mai bine posibil pentru eventuala ntlnire cu angajatorul.
8. Prin vorbirea fluent se subnelege abilitatea de a comunica liber cu un manager strin, de a
rspunde la telefon i competen n completarea documentelor.
9. Conform standardelor internaionale, un nivel adecvat de dactilografiere constitue 100 cuvinte
per minut.
10. Ca regul, dac avizurile de angajare enumer meticulos programe de calculator, sisteme, limbi,
etc., pe care candidatul trebuie s le cunoasc, ine minte, c aceste cerine au o for strict
obligatorie.


























85

APPENDIX 1.
British vs. American Business Terms
Here are some of the main differences between British and American business terminology.
British American
Annual General Meeting (AGM) Annual Stockholders Meeting
Articles of Association Bylaws
authorised share capital authorized capital stock
base rate
bill (caf)
(bank)note
prime rate
check
bill
building society savings and loan association
centre
cheque
center
check
company corporation
creditors accounts payable
current account checking account
labour labor
Memorandum of Association Certificate of Incorporation
merchant bank investment bank
ordinary share common stock
overheads overhead
profit and loss account income statement
property real estate
share stock
shareholder stockholder
trade union labor union















86

BUSSINESS CORRESPONDENCE
APPENDIX 2. CURRICULUM VITAE
Sara Anne Green
Address (college):
26 Windmill Road
Bristol, BS2 6DP
Telephone (mobile): 0778 6050912
Telephone: (home) 0121 423170
Email: sara.green@amail.com

A well-organized and outgoing Business Economics student graduating in June 2007 with
good communication and analytical skills, looking to develop a career as an economist within
an international business environment. Fluent Spanish speaker experienced in the use of
spreadsheets, databases, and similar business software.

Education and qualifications:
September 2004 to present:



September 1996-June 2003





Employment history:
July-September 2006






July-September 2005






July 2003-August 2004



Other qualifications and skills:


Interests:

References:

BA (Hons) in Business Economics
City University, Bristol
(graduating in June 2007)

Manchester School
4 A Levels: Economics (A), Information and
Communication Technology (A), English (A),
Spanish (B)
9 GCSEs (including A* grades in Economics,
Spanish, English, Mathematics, ICT, and German)

Administrative Assistant
MKL Smith & Co (Accountants), Manchester
Duties inclded:
using spreadsheets to sort and chart financial information
administering client database
assisting PA with routine admin tasks

English Language Teaching Assistant
EFL International, Seville, Spain
Duties included:
assisting teachers in preparing lessons
administering student database
liaising with local companies to organize student activities

Various jobs (including voluntary and hotel work) and
travel in Spain and Latin America, gaining a valuable
insight into the culture and spoken language of those
countries.

Advanced Certificate in MS Word, MS Excel, and MS
Access (evening course, September-July 2006)
Full driving licence
Netball, travel, swimming

Dr Thomas Clark
Senior Lecturer in Business and Management
Department of Business Organization and Strategy
City University
Bristol BS1 2ER
87


APPENDIX 3. JOB APPLICATION LETTER
26 Windmill Road
Bristol
BS2 6DP
2 May 2007
Ms Kate Roberts
Human Resources Manager
Business Solutions International
Ambassador House
Marcham Way
LONDON
WC2 9TP
Dear Ms Roberts
Vacancy for Business Analyst
I am writing in reply to your advert for the above post, which was advertised in The Guardian
on Tuesday 30 April 2007, and I enclose my CV in application.
I am currently in the final year of a BA (Hons) course in Business Economics at City
University, Bristol, and expect to graduate in June 2007. I have always wanted to pursue a
career as an economist within an international environment and have been able to tailor my
studies to that end. I have obtained A grades in the Economic Data Analysis, International
Economics, and Economics of Business Strategy modules, and am currently completing a
dissertation on the growth of e-commerce in the European Union. I am fluent in spoken and
written Spanish, having built on my A-level proficiency in that subject when working in Spain
and Mexico.
In addition to the qualifications and abilities outlined above, I have kept my IT skills fully up to
date (including MS Excel and Access) and am competent in a wide range of business data
analysis operations. The post also requires someone with good communications skills who is
able to negotiate with corporate clients: I enjoy making new contacts and establishing
relationships with a wide range of people, and have successfully liaised with Spanish
companies when arranging student activities while I was a Teaching Assistant in Seville.
I feel that the position offered would be ideal in giving me the opportunity to use my education
and skills to provide a high level of service for the international client profile you describe. I
look forward to hearing from you.
Yours sincerely
Sara Green
(Source: http://oxforddictionaries.com/words/writing-a-cv-resume)






88


APPENDIX 4. MAKING AN ENQUIRY
Business Enquiry Letter (1)
Jackson Brothers
3487 23rd Street
New York, NY 12009
September 12, 2000
To Whom It May Concern:
With reference to your advertisement in yesterday's New York Times, could you please send me a
copy of your latest catalog. I would also like to know if it is possible to make purchases online.
Yours faithfully
(Signature)
Kenneth Beare
Administrative Director
English Learners & Company

Business Enquiry Letter (2)
Ms. Liza Atkinson
Manager- Sales & Marketing
Red Mount Sales Pvt. Ltd

Dear Ms. Atkinson,

I am writing you this letter regarding business query of your current garment collection and services
associated with this clothing range. I am interested to start a new garment showroom in my city.
You can see the enclosed document of my running showrooms in other cities.

I have certain queries to initiate business with your brand. I have seen the brochures and
advertisements published in news papers, but I need clarification on few things for which I have
enclosed a list of queries with this letter. If possible, I am seeking to attend a meeting with you to
discuss everything face to face. Kindly let me know when I can meet the concerned person in your
company.

I will stay in touch with you online till I receive your response.

Thank you so much.

Yours sincerely,

Kim Lara
(Source: http://businessletterz.blogspot.com/2011/05/business-enquiry-letter.html)
89

APPENDIX 5. MAKING COMPLAINTS (faulty product)
home/business address and phone number
name and address (of customer service department)
date
Dear Sirs
Faulty (xyz) product
I'm afraid that the enclosed (xyz) product doesn't work. It is the third one I've had to return this
month (see attached correspondence).
I bought it from ABC stores at Newtown, Big County on (date).
I was careful to follow the instructions for use, honestly.
Other than the three I've had to return recently, I've always found your products to be excellent.
I'd be grateful if you could send a replacement and refund my postage (state amount).
I really appreciate your help.
Yours faithfully
signature
J Smith (Mrs)

RESPONSE LETTER TO A CONSUMER COMPLAINT
Name and address
Date
Reference
Dear.........
I am writing with reference to (situation or complaint) of (date).
Firstly I apologise ('apologize' in US) for the inconvenience/distress/problems created by our
error/failure.
We take great care to ensure that important matters such as this are properly
managed/processed/implemented, although due to (give reason - be careful as to how much detail
you provide - generally you need only outline the reason broadly), so on this occasion an acceptable
standard has clearly not been met/we have clearly not succeeded in meeting your expectations.
In light of this, we have decided to (solution or offer), which we hope will be acceptable to you, and
hope also that this will provide a basis for continuing our relationship/your continued custom.
I will call you soon to check that this meets with your approval/Please contact me should you have
any further cause for concern.
Yours, etc.
90

BIBLIOGRAPHY

1. Brown B.J., Clow J. E., Our Business and Economic World, McGrav-Hill Publishing
Company,1990
2. Mackin R., Rapid course in English for Students of Economics, Oxford, 1997
3. Brookers M., Horner D., English for the Business World, Teora, 2002
4. Hollett Vicki, Business Opportunities, Oxford University Press, 1998
5. Murdoch-Stern Serena, Limba englez pentru afaceri, Polirom, Bucureti, 2008
6. Gillett Amy, Speak Business English like an American, Language Success Press,
Michigan, 2008
7. Marcheteau M., Berman J.P., Savio M., Engleza comercial n 40 de lecii, Niculescu,
Bucureti, 2000
8. Oxford Collocations Dictionary for Students of English, Oxford University Press, 2002
9. Cambridge Advanced Learners Dictionary, IIIrd edition, Cambridge University Press,
2008
10. Dicionar de marketing englez-romn, tiina, 2003

WEB REFERENCES
http://www.linguahouse.com
http://www.bogglesworldesl.com/businessESL.htm
http://www.esl-lab.com
http://www.moneyinstructor.com
http://www.ldoceonline.com/











91


CONTENTS

UNIT 1.
UNIT 2.
UNIT 3.
UNIT 4.
UNIT 5.
UNIT 6.
UNIT 7.
UNIT 8.
UNIT 9.
UNIT 10.
APPENDIX 1.
APPENDIX 2.
APPENDIX 3.
APPENDIX 4.
APPENDIX 5.
BIBLIOGRAPHY
WHAT IS ECONOMICS? ..........................................................
DECISION-MAKING AND PROBLEM SOLVING .
MONEY TALKS ...
HOW THE MARKET WORKS ...
MARKETING&ADVERTISING .......
HOW BUSINESSES FUNCTION
HOW BUSINESSES ARE ORGANIZED ..
COMPANY STRUCTURE
NEGOTIATIONS &CONTRACTS ..
JOB HUNTING .
BRITISH vs. AMERICAN BSINESS TERMS
BUSSINESS CORRESPONDENCE. CURRICULUM VITAE

JOB APPLICATION LETTER .

MAKING AN ENQUIRY .

MAKING COMPLAINTS



3
12
20
32
40
48
56
65
71
77
85
86
87
88
89
90













92





ENGLISH
FOR ECONOMICS AND BUSINESS
Methodical elaboration

Autor: Zingan Olga














Bun de tipar 03.07.13 Formatul 60 x 84 1/8
Hrtie ofset. Tipar RISO Tirajul 50 ex.
Coli de tipar 11,5 Comanda nr. 79

U.T.M., 2004, Chiinu, bd. tefan cel Mare, 168
Editura ,,Tehnica-UTM
2068, Chiinu, str. Studenilor, 9/9