UNIVERSITATEA TEHNICĂ A MOLDOVEI

Olga Zingan

ENGLISH
FOR ECONOMICS AND BUSINESS
Methodical elaboration

Chişinău
2013

0
UNIVERSITATEA TEHNICĂ A MOLDOVEI

Facultatea Tehnologie şi Management în Industria Alimentară

Catedra Limbi Moderne

Olga Zingan

ENGLISH
FOR ECONOMICS AND BUSINESS
Methodical elaboration

Chişinău
Tehnica-UTM
2013
1
 Acest curs se adresează studenţilor facultăţii de Inginerie Economică şi Business din cadrul
Universităţii Tehnice a Moldovei, dar şi celor interesaţi să-şi aprofundeze cunoştinţele în engleză-
limbaj specializat din domeniul economiei şi afacerilor.
Conţinutul elaborării metodice este organizat în 10 unităţi. Fiecare unitate debutează cu
vocabularul lecţiei care cuprinde termenii din textul de specialitate şi unii aferenţi temei studiate.
Noile unităţi de vocabular apar structurate în microsisteme euristice, fiecare termen fiind plasat sub
un titlu generic. Îmbinările de cuvinte, în special cele ce conţin verbul specializat, sunt parte
integrantă a vocabularului şi sunt menite să asigure comunicarea elementară pe marginea
subiectului studiat.
Continuitate unităţii îi conferă textele de specialitate nu mai puţin importante ce înglobează
lexicul analizat anerior. Acestea abordează subiecte din domeniul economiei şi afacerilor din care se
poate desprinde pe lângă temele de conversaţie utile viitorilor specialişti, materialul lingvistic
inerent discursului specializat. În plus, activităţile ludice de vocabular şi cele de comprehensiune a
documentului scris asigură un real suport în fixarea conceptelor noi şi formează abilităţi de abordare
creativă a lexicului specializat. Tot aici problemele de gramatică sunt expuse relativ succinct din
punct de vedere teoretic, dar explicaţiile sunt susţinute de exemple pertinente.
În final unitatea conchide cu un material evaluativ ce ghidează, atât pe cel care învaţă cât şi pe
cel care predă, spre a sintetiza şi respectiv a aprecia conţinutul subiectului studiat.
Astfel nădăjduim că prezenta lucrare, astfel concepută, va fi de un real folos celor cărora li se
adresează.

Autor – Olga Zingan, l. superior

Recenzent – Ludmila Ungureanu, conf. univ., dr.

© 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: ştiinţa 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 suficienţi bani);
Economical - spending money or using something in a careful way; e.g. It is usually
(adj.) economical to buy washing powder in large quantities. (rom: economic;
economicos; chibzuit);
Economically 1.in a way connected with trade, industry and development of wealth of a
(adv.) 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: într-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 don’t 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
government’s ………………. 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 econom to create new words. Make up 4-5 sentences
using the word family economy.

y
econom ics
ic al ly
ist

3. Discussion. a) Why can’t 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  scarce resources
 to satisfy one’s wants and needs  unlimited wants
 to make/take decisions  wise decisions
 to use resources  irrational use of resources
 to produce/manufacture goods  consumer goods
 to provide/offer services  poor services
 to purchase/buy goods  high-quality goods
 to make choices  right choice
 to cope/deal with scarcity  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 don’t 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 don’t 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 don’t 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 1. Those things that come from air, land, or water.

b) Entrepreneurship 2. The things we wish we could have.

c) Factors of 3. Machines, buildings, equipment used to produce goods and

services.
production
4. Objects that can be physically measured or weighed.
d) Goods
5. The way in which trade, industry or money is organized, or the
e) Labor study of this.

f) Land 6. The natural resources, labor, capital goods and entrepreneurship

used to produce goods and services.
g) Scarcity
7. The work done by people to produce goods and services.
h) Services
8. Tasks that people or machines perform to satisfy wants and
i) Wants needs.

9. The ability to start and manage a business.

j) Economics
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.

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2. Comprehensive questions.

1. Why can’t 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 country’s governors?

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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 one’s 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.

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 Economic
s

Scarce Unlimited
Resources Wants

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, In San Minima people lived in abject
well-off and well-heeled. poverty.

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 don’t need to stop to look up anything that gives you trouble—just
get a feel for the author’s tone, style, and main idea.

3. Reread. Rereading should be active reading. Underline topic sentences and key facts. The
details should be avoided—though they may be interesting—are 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

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 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 author’s 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'.
We use a / an We use the No article
a) when we are talking about a) when we are talking about a specific We use no article when
something for the first time. person or thing, or if there is only one. we are talking about
There is a good The company manufactures children’s people or things in
shoemaking toys. general.
company in this area. b) with singular countable nouns to talk Inflation is rising.
b) to talk about someone's job. about a type of thing. People are worried
My friend is an The computer was invented in the 20th about rising crime.
accountant. century. (not a particular computer) (Note! People
c) to say what kind of person The computer in my office is broken. generally, so no article)
or thing someone or something (a particular one)
is (often with an adjective). c) We use the + adjective to talk about a
That's a very expensive group of people.
car! The unemployed receive money from
the
government.

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.

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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 ....... country’s 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%.

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.

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 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 Moldova’s 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. Moldova’s 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 Moldova’s 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 Moldova’s 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?
… 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 Moldova’s 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 Moldova’s advantage.

11
 Finally, the country must create a favourable environment for local and foreign investors.
Moldova’s 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 country’s
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 Moldova’s 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.
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. În domeniul ştiinţelor economice se porneşte de la ideea că nevoile oamenilor sunt nelimitate,

iar bunurile destinate satisfacerii acestor nevoi sunt limitate.
2. Astăzi nu putem citi presa, asculta la radio sau viziona programele TV fără să fim frapaţi de
volumul de informaţii despre economie.
3. Starea economiei, inflaţia, balanţa comercială fac parte din ştiri aproape în fiecare zi.
4. Datele economice sunt importante din cauza consecinţelor lor asupra vieţii noastre cotidiene.

5. Întreprinderile utilizează factorii de producţie cum ar fi munca, capitalul, progresul ştiinţific cu

scopul de a produce bunuri si servicii si a-si maximiza profitul.
6. Întreprinderile sunt extrem de sensibile la variaţiile tendinţelor economice şi la conjunctura
generală a economiei.

7. Un produs este orice lucru care poate fi oferit unei pieţe care poate satisface o dorinţă sau o
nevoie.

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8. Economia este o ştiinţă socială ce studiază producţia şi desfacerea, comerţul şi consumul de
bunuri şi servicii.
9. Ultimul sfert al secolului 20 se caracterizează prin globalizarea problemelor economice.
10. Depindem de Rusia pentru importurile de petrol, gaze, numeroase materii prime.
11. Structura economiei, datoriile externe mari şi dependenţa de pieţele de export CSI sunt printre
principalele cauze de volatilitate ale Republicii Moldova.
12. Obiectivul nostru principal este acela de a diversifica atât piaţa internă cât şi cea externă cu
produse competitive.

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; It’s a step-by step
procedure of carefully considered alternatives for making choices;
(rom: procesul decizional);

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Problem - a situation or person that needs attention and needs to be dealt with or solved;
syn: trouble, matter, crisis, dilemma, issue; (rom: problemă);
e.g. Our main problem is lack of cash.
Alternative - one of two or more available possibilities; (rom: alternativă, opţiune);
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. It’s a good investment plan and we won’t 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, ţel).

Verb – Noun collocations Adj. – Noun collocations

To make/take a decision≠to 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- esenţa problemei
 A remedy to a problem- o cale de soluţionare a problemei
 The scale of a problem- amploarea problemei
 To sort out one’s priorities- a-şi stabili priorităţile
 A list of priorities- o listă de priorităţi
 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 a) the final decision shortly.
2. Let me have b) but solving them is another matter
3. We need to take a lot of factors altogether.
4. The company will reach c) into account in our decision-making.
5. It is my considered opinion d) but to ask you to leave.
6. Talking about the world's problems is one e) your decision by next week.
thing, f) that he should be promoted.
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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
don’t 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 she’s having second ________________s.
c) The boss always has the final _______________ in purchases over £500.
d) I’ve 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 ________________.
g) There are several things to bear in _______________.
h) They haven’t addressed the problem at all: they’ve completely dodged the ________.
i) I’m 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 boss’s 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 people’s interest to bear in mind.
 had the final say in an important decision.
15
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.
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 can’t 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 you’ve 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.

16
 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
b. to earn some money from
a full-time job and take it
easy with studies at least for
one year.
c. study for a university
degree and find a part-time
job
1. will get a diploma
2. better opportunities in future
career
3. parents will be happy
1. will earn some money
2. will get some work experience
3. will be financially independent
from your parents
1. will get both a diploma and
work experience
2. will earn some money for
personal expenses
3. parents will be happy
1. scarcity of money
2. less free time
3. will depend financially on parents
1. will not get a diploma
2. less chances to get promoted
3. it is less exciting than studying
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.
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.

17
 3. Retell the text using the Decision-Making diagram.
It could be helpful taking a certain problem and analyzing it step-by-step.

Determine
Identify the List the
Pros and
problem alternatives
Cons

Review/learn Select the

Implement
from your best
the solution
experience alternative

Grammar note: Asking Wh-Questions

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

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?

18
 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: Solutions:
Our problem is … (noun) One solution is to …... (verb)
Our problem is that … (sentence) We could ….. (verb)
I think we should …… (verb)
I recommend that ….. (verb)

Agreeing:
I think it’s a good idea.
I agree with _______________.
I am for ___________________.
That might be the answer
6. Case Study.
Disagreeing:
It’s a good idea but __________.
I disagree with ______ because ____.
I am against it because _________.
The problem with that is _________.
No, that’s simply not feasible.

a) Imagine you are part of the company management. Discuss different ways of tackling
these problems. Respond to one another’s suggestions. Don’t 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. You’d 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.

Problem:
Alternative 1 Alternative 2 Alternative 3

Pros Cons Pros Cons Pros Cons

19
 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)

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.

20
 1. Urmând cei şase pasi din procesul de luare a deciziilor, vom reuşi să găsim calea cea mai
potrivită de soluţionare a problemei.
2. Analiza costului de oportunitate este o parte importanta in procesul de luare a deciziilor.
3. Conducerea companiei a luat o decizie dificilă referitor la reducerea salariilor top managerilor
intreprinderii.
4. Fiecare alegere implica un cost de oportunitate, pe care trebuie să ni-l asumăm.
5. Dupa analiza tuturor alternativelor am renuntat la rezolvarea problemei.
6. Buna alegere nu poate fi facută făra a cunoaste o mulţime de alternative sau căi de rezolvare a
problemei.
7. In procesul de luare a deciziilor trebuie studiate legile economice si legile naturii.
8. Un om de afaceri, pe lângă cunoştinţe, trebuie să posede si o bună capacitate decizională.
9. Decizia pe marginea nerespectării drepturilor consumatorului va fi contestată la Curtea Supremă.
10. Stabiliţi ordinea priorităţilor înainte de a lua o decizie ce vă vizează viitorul.

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: bancă);
Currency - the system of money that a country uses; syn: money. (rom: valută);
there is hard currency (valută forte) and soft currency (valută instabilă).

21
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: rată de schimb);
Purchasing power - the amount that a unit of money can buy; (rom: putere de cumpărare);
e.g the leu’s 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 publică);
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 $ MDL - Moldovan Leu

EUR - Euro € RON - Romanian New Leu
GBP - British Pound Sterling £ UAH - Ukrainian Hryvna
CHF - Swiss Franc RUB - Russian Rubble
AUD - Australian Dollar $ BGN - Bulgarian Lev
JPY - Japanese yen ¥

Phrases Examples

 The single European currency- valuta
unică euroreană
 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 fată 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.

22
Vocabulary and speaking activities

1. Complete the bubble network for the word CURRENCY. Add as many other bubbles as
you like.
Japan
Hun ____
India
gary
_____
____

Brasil Mexico
CURRENCY
____ ______

Saudi
China
Arabia
_____
Riyal Denmark
_______

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?

23
6. Look at the article’s 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 country’s 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 IMF’s 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

24
 4. (adj.) continuing in a severe or extreme way

5. (adv.) quickly

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 America’s 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 Naţională a Moldovei a stabilit pentru mâine, 5 octombrie, un curs oficial de schimb
pentru un euro de 16 lei, iar pentru un dolar american - de 12 lei şi 35 de bani.
Astăzi, la casele de schimb valutar, dolarul era cumpărat cu 12 lei şi 27 de bani şi vândut cu 12
lei şi 34 de bani. Un euro era cumpărat cu 15 lei şi 82 de bani şi vândut cu 15 lei şi 92 de bani.
La bursele internaţionale, moneda unică europeană atinge cotaţia de 1 dolar şi 29 de cenţi.

25
 Pe piaţa internaţională, o uncie de aur costă 1779 de dolari, argintul este vândut cu aproape 35
de dolari. Platina este tranzacţionată la un preţ de 1694 de dolari, iar un baril de petrol – 88 de
dolari.
http://www.jurnaltv.md/#cursul-valutar-pentru-5-octombrie-398823

26
 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: ¼ =one quarter, ½ 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; 6. 2/3; 11. 2-1;
2. 234,700,000; 7. tel. 0171 895 7056 12. ½;
3. ¼; 8. 28° C or 72° F 13. ≤ 17
4. 8 120 412; 9. 2,450,000; 14. ≥ 90
5. 75%; 10. 8/13; 15. 11.09.2001

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

0.191- 0.147= 128:4= 6² - 6= ½ x 2=

5,018 +1,982= 5x20= √9 = ⅞ - ⅜=

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?

27
28
 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?
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 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);
Income - 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: monedă);
Banknote - a piece of paper money; ; (rom: bancnotă);
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).

30
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.

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 4. He ......... 1000 Euro last year and he hasn’t pay it back. I’ll 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. . ..

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, don’t 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 can’t
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.

32
 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 isn’t 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.
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 a. to be overdrawn

2. pinch pennies b. having a lot of money
3. flat broke c. to have no money
4. make ends meet d. to barely manage on the money you have
5. go Dutch e. in debt
6. be strapped for cash f. pay an excessive amount of money
7. keep track of g. to pay for yourself in a bar or restaurant
8. in the hole h. have no money available
9. be loaded i. be careful with money
10. pay through the nose j. keep a record of

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 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.
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, that’s 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?

34
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. It’s an important new phase
in her life. Unfortunately, she has a problem. Her salary isn’t high, she has large debts after
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 să se reducă în urma achitării creditului bancar.
6. În prezent contrafacerea e o problema majora a societatii.
7. Firmele noi încearca sa genereze un profit mai mare pentru a putea investi din nou o parte
din acesta.
8. Trebuie sa reducem cheltuielile pentru a face faţă crizei.
9. Compania are datorii faţă de furnizorii de materia primă.
10. Valuta unică europeană a fost introdusă în circulaţie în 1999.
11. Bugetul municipal precar din acest an nu a permis implimentarea unor proicte vitale penru
urbie.
12. Banca Naţională a Moldovei a stabilit pentru mâine, 5 octombrie, un curs oficial de schimb
pentru un euro de 16 lei, iar pentru un dolar american - de 12 lei şi 35 de bani.

35
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: piaţă);
Price – the amount of money given or asked for when goods or services are bought or sold;
(rom: preţ);
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: ofertă);
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);
Inflation – a period of increased spending that causes a rapid rise in prices; (rom: inflaţie);
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 iniţiativă);
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: concurenţă);
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)- piaţă de vânzare cu amănutul
 Non-physical market (e.g electronic commerce)- piaţă non-fizică
 Labor market- piaţa muncii
 Domestic market ≠foreign market - piaţa internă ≠ piaţă externă
 International currency market- piaţa valutară internaţională
 Commodity markets- bursa de marfuri
 Stock markets, for the exchange of shares in corporations- bursa de valori
 Illegal or black market (the market for illicit drugs, arms or pirated products), etc.- piaţa
neagră

36
 Specialized verbs
To market a product- a vinde un produs
To demand one’s money back- a-şi cere banii înapoi
To supply a factory with spare parts- a aproviziona o uzină cu piese de schimb
To price goods- a stabili preţul bunurilor
To consume less- a consuma mai puţin
To compete for a market share - a concura pentru o cotă mai mare de piaţă
To grant/offer a discount- a oferi o reducere

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

Market Trends Collocations

Adj.- Noun
a dramatic increase- o creştere dramatică
a sharp drop/reduction-o cădere bruscă
a slight fall- o scădere uşoară
a steady rise- o creştere constantă
a substantial raise- o creştere substanţială
a peak ≠ a trough- un vârf ≠ o depresiune
a gradual decline- un declin treptat
a negligible fluctuation- o fluctuaţie
neglijabilă
Verb - Adv./Noun
to increase dramatically – a creşte dramatic
to decrease substantially- a descreşte substanţial
to remain steady- a rămâne stabil
to rise gradually- a creşte treptat
to fluctuate widely – a fluctua intens
to plunge to a low point -a cădea dramatic
to spike at X ≠ to deep at Y – a culmina ≠a adânci
prices boost ≠ p. slump – preţurile cresc ≠descresc brusc
losses double ≠ looses halve – pierderile se dublează≠
se înjumătăţesc
to soar/to rocket wages- a ridica substanţial 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 increase sharply 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.

37
 ________- im/ports
4. I’d 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

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

1. There is a (scadere uşoară) in the company shares.

2. According to the census there is a (creştere dramatică) in the population aged over 65.
3. The graph showed the (punctele culminante şi de declin) of activity.
4. The rate of inflation (a cresut constant) for the first few months of the year but there’s been a
(uşoară descreştere) recently.
5. Property prices will (rămân constante) for the next few months.
6. The deer population has (crescut substanţial) in recent years.
7. The market for home computers has (scăzut puternic).

4. Match the English sentence with its Romanian equivalent.

1. The new product is marketable. a. El cumpără în vrac şi vinde cu amănuntul.

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.
b. Acest sortiment de săpun tocmai a
început să se găsească de vînzare pe piaţă.
c. Firma a fost oferită spre vînzare.
d. Vînzările pe piaţa internă au crescut cu
22%.
e. Noul produs este vandabil.
f. Acest produs este vîndut ăn toate ţările
europene.
g. Directorul de marketing a decis începerea
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.

38
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.
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?

39
 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.
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:

40
 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 _______________________
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, I’ve finished the annual report on profits, and I thought you might like to
take a look at it.
B: Oh! Good! I’ve been waiting for that. Listen, I’m a little busy right now so I’ll
have a look at it later. But, would you mind giving me a quick summary?

41
 A: I’d 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

Due to rising costs

decreased sales
Raw material
costs
Due to
Distribution costs
Due to

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.
1st and 2nd Quarters: Inflation.
3rd Quarter: Speculation in oil markets.
4th Quarter: Fuel shortages.

Grammar note. Verbs Followed by Gerund and by Infinitive

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

42
 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
Verbs Followed by Infinitives
Verbs Followed by Both
avoid, can’t help, complete, discuss, delay, deny, don’t mind,
give up, enjoy, finish, keep, like, mind, miss, risk, postpone,
practice, prevent, quit, regret, recommend, suggest, understand
agree, ask, choose, decide, fail , happen, hope, manage, let,
offer, prepare, promise, volunteer, wait, want, wish
begin, can’t 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.
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 123 Fail 123
Hope 123 Expect 123
Enjoy 123 Wait 123
Finish 123 Don’t mind 123
Hate 123 Complete 123
Prefer 123 Chose 123

 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. Vînzările au scăzut treptat pe parcursul ultimilor 3 ani.
2. Recesiunea a provocat scăderea profiturilor multor companii.
43
3. Ieşirea celui mai mare furnizor de materie primă de pe piaţă a cauzat creştera buscă a preţurilor
la produsele lactate.
4. Pe o piaţă afectată de recesiune, industria auto din Germania s-a menţinut cu fermitate.
5. Preţurile variază în funcţie de legea cererii şi a ofertei şi de conjunctura pieţei.
6. Piaţa monetară este influenţată în mare măsură de cursul de referinţă.
7. În ziua de azi, bursa de valori joacă un rol esenţial în lumea afacerilor.
8. Anume piaţa dictează ce să producem, cît să producem şi pentru cine să producem.
9. Detailistul capătă o importanţă tot mai mare în societatea noastră.
10. Creştera preţului la carburanţi se va materializa într-o creştere cu 5% a preţului călătoriei.

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 pieţei);
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: preţ); 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: distribuţie);
Target market - the consumers who are most likely to buy the firm's products; (rom: piaţa- ţintă).

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: reclamă, anunţ);
44
Advertiser – the person/firm who sponsors the advertising message and generally calls upon the
services of an advertising agency; (rom: solicitant de anunţ publicitar);
Brand - a type of product manufactured by a particular company under a particular name;
(rom: marcă);
Logo- a symbol or other small design adopted by an organization to identify its products, uniform,
vehicles, etc.; (rom: logo, siglă);
Catch phrase - a phrase or expression recognized by its repeated utterance. Such phrases typically
spread through a variety of mass media; (rom: slogan atrăgător);
e.g. "I'll be back." (Arnold Schwarzenegger in different movies)

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

 To advertise sth. on television/the Internet -a face reclamă la televiziune/Internet;

 To put an advert in the newspaper- a da un anunţ la ziar;
 To work in advertising – a lucra în publicitate;
 To launch an advertising campaign- a lansa o campanie publicitară
 To promote a new product- a spori volumul vînzărilor pentru un produs nou printr-o
campanie de vînzări
 To carry out a campaign by TV– a derula campania prin TV
 To aim at a section of the market - a ţinti spre, a fi destinată unui segment de piaţă

Specialized adjectives
Promotional- promoţional
branded(goods)- produse vândute sub un nume de marcă
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.
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 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.

a. advertising/ publicity e. market research/marketing research

b. a booklet/ a leaflet f. a hoarding/ a poster
c. a classified ad/ a spread g. slogan/ logo
d. TV commercial/ video clip h. a survey/ an opinion poll

6. Identify the target market for:

- fast food restaurant's -health food store's - Shell products

-watches “Rolex” - footwear “Zorile” - 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 b Don’t be evil.
c. Coca-Cola __The customer is always and completely right.
d. Nokia __The happiest place on earth.
e. Marks & Spencer __Stronger than dirt.
f. Ajax __Impossible is nothing.
g. Adidas __It’s everywhere you want to be.
h. Visa __Connecting people.
__Twist the cap to refreshment.

 In your opinion which slogan is the most creative/persuasive/catchy? Why?

46
8. Pair work. Some people say that advertising is essential in today’s 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.
Using the WPP BrandZTM 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 Levi’s 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

47
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 Coke’s 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,
Apple’s 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?
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) It’s such an extravagant idea!

48
 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) It’s so clever of them.
f) It’s 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.

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.

49
 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?
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 advertiser’s 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.
50
 Some critics also worry about the social impact of advertising to children. Britain’s 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 children’s ads would backfire. Their main
argument is that bans would lead to worse children’s 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?
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.
51
 2. Translate the following sentences into English:
1. Produsele firmei erau bune, dar aceasta a întîmpinat difficultăţi în vânzarea lor din cauza unui
marketing inefficient.
2. Ea are o slujbă în domeniul publicităţii.
3. Unii afirmă că publicitatea convinge oamenii să cumpere lucruri de care nu au nevoie şi pe care
câteodată nu-şi permit financiar să le achiziţioneze.
4. Alţii cred că acest lucru reduce preţurile, prin creşterea vânzărilor.
5. Mesajul publicitar a fost adresat unui public-ţintă greşit ales, prin urmare, campania a fost un
eşec.
6. Anunţurile de mică publicitate apar în rubrici cum ar fi “proprietăţi de vânzare”, “oferte de
serviciu”.
7. Pentru ce tip de publicitate vom opta: presa scrisă sau presa audiovizuală?
8. Experienţa acumulată în vânzări şi cercetări de piaţă i-au oferit o pregătire profesională serioasă
pentru o carieră în marketing.
9. Difuzarea intensivă de reclame la televiziune este o parte importantă a strategiei noastre de
poziţionare a mărcii pe piaţă.
10. Sigla unei companii este folosită atât pentru identificarea produselor acestia cât şi pentru
publicitate.

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 comercială);
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 primă);
Manufacturing - the process of making goods or materials using machines, usually in large
amounts; (rom: fabricaţie);
Distribution – moving of goods from one business to another; (rom: distribuţie);
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: concurenţă);
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 comercială);
‘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.
52
 Types of businesses The Result of business activity
(according to their activity)
1. Producers of Raw Goods- întreprindere extractivă  manufacturing of goods
(mining, agricultural business)  providing services
2. Processors of Raw Goods – întreprinderi  using factors of production
prelucrătoare  making profits or losses
(oil refineries, flour mills)  distribution of goods
3. Manufacturers - întreprinderi industriale  merchandising of goods
4. Distributors- întreprinderi de distribuţie  delivery
Wholesalers- angro  output/turnout
Retailers- cu amănuntul  making deals&
5. Service firms - întreprinderi de servicii signing contracts
(banking, insurance, transportation, E-
commerce)

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? - It’s banking business.
2. Next week he is going to Paris on business.
3. Business before pleasure. (Proverb)
4. You have no business being here.
5. ‘What are you reading?’ ‘Mind your own business’.
6. We’ve got some unfinished business to discuss.
7. OK, let’s get down to business.
8. She’s got an accident. She’ll 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)
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 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 în 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 costs, overheads, prices, taxes
slash

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 înregistra pierderi 8. a crea locuri de muncă
2. a lucra la capacitate maximă 9. a se lansa în afaceri
3. a lansa o campanile publicitară 10. a duce evidenţa
4. a conduce o companie 11. a stabili o întîlnire
5. a reduce cheltuielile pentru regie 12. a mări incasările
6. a realiza profit 13. a da lovitura
7. a lansa o ofertă de preluare a companiei 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 to make money to boost production to reduce spending

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 business

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: one’s business goes well, the other’s 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 Possible Greetings Possible responses

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

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.

55
 II. Read the text quickly and answer the questions after the text.
Text A: HOW BUSINESSES FUNCTION

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.
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.

56
 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 World”p.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.
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 consumer’s 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.
2. Affirmative In the III rd person (he, she , it)
form form, the verb takes an s.
3.Question and We use the auxiliary do or don’t
negative forms except in the III rd person
To describe actions in the past which
have no relation to now
Regular verb all finish in –ed
For irregular verbs – see the list
of irregular verbs
In questions, we use the auxiliary
did,

57
 singular, where we use does or In the negative form, we use didn’t
doesn’t;

4. The verb to be We do not use the auxiliary We do not use the auxiliary
do/don’t did/didn’t

4. Make the following sentences negative and interrogative according to the model:
Business firms compete for the consumer’s dollars.
Business firms don’t compete for the consumer’s dollars.
Do business firms compete for the consumer’s 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
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

58
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 company’s 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
3. Say in other words.
1. his legacy will live on
2. to do one’s 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.

59
  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 şi lichidarea unei afaceri în Republica Moldova presupune o serie de
proceduri complexe, asociate unor costuri substanţiale.
2. În Moldova, principala problemă a antreprenorilor este posibilitatea redusă 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 economică propriu-zisă.
5. Îndată ce afacerea a mers mai bine, ea a hotărât să deschidă încă un atelier, în care a angajat
15 persoane.
6. Banii investiţi în afacerea cu restaurantul au fost recuperaţi după cinci ani de la lansarea
afacerii.
7. Abia după opt ani de prestare a serviciilor în domeniu, compania de asigurări a devenit
profitabilă.
8. Ne este din ce în ce mai greu să facem faţă concurenţei străine.
9. Cifra de afaceri a companiei Supraten s-a majorat anul trecut cu aproape 65 mil. de lei şi a
ajuns la 582 milioane de lei, potrivit raportului financiar al companiei.
10. Întreprinderea municipală Edilitate, specializată în construcţia drumurilor, a înregistrat anul
trecut pierderi în valoare de circa 3,6 mil. lei.
11. În primele 9 luni ale anului curent vânzările grupului Gas Natural Fenosa au crescut
substanţial datorită scumpirii curentului electric.
12. Totodată cheltuielile de procurare a energiei s-au majorat în această perioadă cu 26,4%.
13. Moldexpo îşi deschide uşile pentru 80 de companii din ţară şi de peste horare ce activează în
industria prelucrătoare.
14. Miliardarul român Frank Timiş, care exploatează zăcăminte de fier pe continentul African, a
dat lovitura după ce a făcut un parteneriat de 1,5 miliarde de dolari cu o firmă chineză de
stat.
15. În România, marii producători din industria berii găsesc local materie primă la discreţie,
ceea ce scade costurile operaţionale (transport, taxe de import).

Unit 7. HOW BUSINESSES ARE ORGANIZED

I. Vocabulary

Business structure - legally recognized organization established for conducting commercial

activities, such as sole-proprietorship, partnership, and corporation;
(rom: formă organizatorico-juridică);

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 individuală);
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 în parteneriat);
Corporation (Am.Eng.)- a business legally regarded as a separate entity, i.e. it exists separately

60
 from the people who own it. A corporation is owned by people who have shares in the
company (Br.Eng.- Joint-stock company); (rom: societate pe acţiuni);
Limited Liability Company - a business structure that is not considered a separate entity, but the
owners are protected from personal liabilities; (rom: societate cu răspundere limitată);
Cooperative – a business firm owned and, in many cases, operated by its members;
(rom: cooperativă);
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: franciză).

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: răspundere limitată);
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: răspundere nelimitată).
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: acţionar); (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: licenţă);
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: cartă);
Bylaws - the official rules and regulations which govern a corporation's management (rom: statut).

Pronunciation
Proprietorship /prəˈprʌɪətəʃɪp / Enterprise /ˈɛntəprʌɪz/
Liability /lʌɪəˈbɪlɪti/ Shareholder /ˈʃeə(r)ˌhəʊldə(r)/
License /ˈlʌɪs(ə)ns/ Charter /ˈtʃɑː(r)tə(r)/

Abbreviations used in company names

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

Vocabulary and Speaking Activities

1. Match the terms from 1-8 to definitions from a-h:

1. abbreviation a. money that belongs to, or is put into business
2. capital b. small business usually operated by one man
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 3. sole proprietorship c. permission to act
4. share d. company shares are traded here
5. license e. a short name for something
6. limited f. a large company
7. stock market g. restricted or controlled
8. corporation 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 4. license a. holder d. unlimited

2. enterprise 5. corporation b. public e. multinational
3. liability 6. partnership c. agreement f. sole

Specialized verbs
 to issue shares- a emite acţiuni
 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 întreprindere
 to incorporate a company- a constitui o companie
 to grant a license – a acorda o licenţă ≠ to get/obtain a license – obţine o licenţă
 to be liable/ to bear responsibility for debts - a fi responsabil pentru datorii
 to be subject to obligations – a fi supus oblidaţiilor
 to engage in a business – a se lansa într-o afacere
 to operate legally – a activa legal
 to contribute with know-how to a business- a contribui cu experienţă într-o afacere
 to file one’s petition in bankruptcy- a se declara falit, a depune bilanţul
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.
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
62
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-
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 World”p.138)
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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. 1. 1.
2. 2. 2.
3. 3. 3.
4. 4. 4.

(-) (-) (-)

1. 1. 1.
2. 2. 2.
3. 3. 3.
4. 4. 4.

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 isn’t as easy to start as a sole proprietorship. (similarity)
It is more difficult to get a charter than a license. (comparative degree)
Corporations are the largest 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)

64
 should have known
could have been
wouldn’t have dreamed of
I should have known my business partner better.
I could have been more supportive when my friend lost his job.
I wouldn’t have dreamed of becoming an accountant.
6. a) Express your regrets on lost opportunities.

1. You didn’t study business terminology hard enough.

2. You didn’t consult a lawyer before setting up your company.
3. You didn’t become a famous businessman.
4. You started the business with a handshake agreement.
5. You hate your business co-founder.
6. You didn’t apply for a better paid job.
7. You didn’t 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:
 Recordkeeping for the business is haphazard, making it irritating to try to figure out the
company’s 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 potter’s
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

65
 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 owner’s name.
e.g. John and Mary’s office is located on the Main Street. (John and Mary own the office
jointly. Place the apostrophe plus s on the latter owner’s 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. John’s and Mary’s 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. (Leo’s and Fred’s, Leo and Fred’s) new business is an interesting co-venture.
2. (Mr. Abbot’s and Ms. Wall’s, Mr. Abbot and Ms. Wall’s) assistants are highly qualified
workers.
3. Have you asked for (John’s and Mary’s, John and Mary’s) opinion on selling their summer
homes?
4. Perhaps (Frank’s and Joseph’s, Frank and Joseph’s) new supervisor, Ms. Marshall, can help us
with this problem.
5. (My father’s and my brother’s, my father and my brother’s) ideas for increasing business were
very similar.
6. Last year the (business', business's) profit was of €1.5 million – its best year ever!

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 shouldn’t 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

66
 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
world’s 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 company’s 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
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 world’s top carmaker. T/F

b. Today Toyota is the world’s number one car seller. T/F
c. Experts predict GM’s 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 world’s best-selling car. T/F
h. GM’s goal is turn to low-cost factories in Mexico, China and Brazil. T/F

2. Match the following synonyms from the article:

a. collapse 4. very large
b. massive 5. ricochet
67
 c. trend 6. asking for help
d. rebound 7. financially sound
e. schedule 8. failure
f. begging 9. tendency
g. profitable 10. plan
h. solvent 11. money-making
i. cutback 12. reduction
j. breakthrough 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 - balked at deep write-downs
- found itself on the brink - made the biggest rebounds ever
- prices surged - a streak of losses
- sales plunged - a revamped production line
- to stay afloat - 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 world’s largest car maker from 1931 to 2008, when it was surpassed by Toyota. -
Sequential (Time)

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?
68
2. Translate the following sentences into English:

1. Există trei tipuri principale de societăţi comerciale: întreprinderea individuală, parteneriatul

şi societatea pe acţiuni.
2. Întreprinderea individuală este deţinută şi exploatată de o singură persoană, care este singura
răspunzătoare de ea şi are un număr mic de angajaţi.
3. Bazată pe bunurile individuale ale familiei, întreprinderea individuală dă posibilitate
antreprenorului de a realiza o afacere cu propriile metode şi idei.
4. Parteneriatul este o asociere între două sau mai multe persoane fizice, dintre care unele
contrubuie cu bani, altele cu îndemânarea sau experienţa lor.
5. Partenerii sunt egal responsabili în faţa legii pentru datoriile companiei.
6. Fiecare partener se aşteaptă la cota parte din profitul şi pierderile companiei.
7. Prin achiziţionarea de acţiuni, acţionarii devin proprietarii societăţii pe acţiuni.
8. Într-o S.A. deţinătorii de acţiuni primesc venituri sub formă de dividente.
9. Într-o S.A. acţionarii sunt responsabili pentru datoriile întreprinderii doar în limita cotei de
participare la capitalul social.
10. Antreprenorul este răspunzător de datoriile firmei sale.
11. Se aşteaptă ca fuziunea celor două companii să aibă loc foarte curând.
12. Pentru a deschide propria firmă este necesar de a stabili clar forma organizatorico-juridică,
reeşind din obiectivele pe care le puneţi în faţa întreprinderii viitoare.

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-mamă);
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 ‘filială’, while branch -‘sucursală’.
Division/department - a large unit or section of an organization,
e.g. the company’s sales division. (rom: department, raion).

Company Departments Headed by Managers (BE) or Directors

Departamentele companiei (AE) Şefii departamentelor
1. Financial Department 1 Chief Accountant - contabil-şef
69
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)
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
Administration
Conducerea companiei Company Secretary - secretar general
Board of Directors - consiliu director Company Top Managers – top-managerii
Chairman - preşedinte companiei
Managing Director - -director general Chief Engineer – inginer–şef

The staff – angajaţii

An employee – angajat; an employer – angajator;
a department head - şef de department;
a foreman- şef de echipă;
a white-collar worker- “guler alb”/angajat care lucrează la birou;
a blue-collar worker- “guler albastru”/muncitor;
a skilled/qualified worker - muncitor calificat;
a unskilled worker - muncitor necalificat;
a casual worker- mănă de lucru temporară;
a trainee- stagier;
an apprentice – ucenic;
a civil servant – funcţionar.
Location- Aşezare geografică

The Registered/Head Office – sediul princiral/înregistrat

An oversees office- oficiu în străinătate
A Chisinau-based company- firmă cu sediul în Chişinău
Premisis – incintă, local
Production sites–zone industriale: atelier, fabrică, uzină
A warehouse – depozit.

Responsibilities- Responsabilităţi
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 subordonată directorului de vînzări.
She is in charge of Production. – (Ea) este responsabilă cu producţia.
He is responsible for Research and Development. – El este responsabil cu cercetarea şi dezvoltarea.
He oversees all the departments. – (El) supraveghează toate departamentele.
She is assisted by two technicians.- Ea este asistată de doi tehnicieni.

Note: the English ‘responsible’ is an adjective, never a noun.

For: un responsabil – an official, a responsible person, an executive.

70
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 __ manufactures the products

b. Production
c. Research &development
d. Human resources
e. Supplier
f. Marketing and sales
g. Board of directors
h. Finance department
__ 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.’
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

71
 A group of newly appointed trainees begin training courses on Soltec’s management training
programme. They are listening to the personnel manager, Margaret Singer, describing the company
structure.
So, that’s your program for your week’s initiation course. We’ll be breaking for coffee soon but,
before we do that, I’d 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, I’ll 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 company’s 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, which 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 couldn’t keep our lead over our competitors in this highly
competitive field.
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, then, let’s move on to company history…
(Source: Brookes M., Horner D. “Business English” p.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-Brown’s 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?
72
 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 company’s 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 vânzări
3. în sediul central din Bromley
4. încheind contracte de antrepriză cu firme de mărime mijlocie
5. manageri de sector
6. în cinci zone industriale
7. are o structură similară
8. se ocupă de aprovizionarea cu rechizite de birou
9. are în conducerea sa patru şefi de departament
10. răspunzător pentru instruire
11. curând vom lua o pauză
12. departament de transport centralizat
13. a aproviziona uzinele cu materie primă
14. a deţine întâietatea asupra competitorilor noştri
15. a face ecomomii pe spaţiul de depozitare scump

4. Here is the “Soltec”company organization chart. Fill in the missing information.

-
- - . . .
. . . . . . . . . .
. . . . . .
.
Language note: Presenting your company

Where it is Products and services

73
 The company is based in … My company specializes in …
The head office is in … Our main products are …
Our subsidiary/factory/office is located in 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 firm’s 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 don’t 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 didn’t offer it to me)
Alternative forms: if can be replaced by unless=if…not or in case=if by any chance
E.g. I won’t ring you, unless there are any problems.
= I’ll ring you if there are any problems.
I’ll take the train in case the traffic is heavy.
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).
74
 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 I’ll 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) I’ve 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
don’t 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 engleză cu sediul central în Bromley.
3. În vârful piramidei se află consiliu director, al cărui preşedinte este însăşi directorul general,
dl. Charles Brown.
4. Întrunirea consiliului director se va ţine (va avea loc) în sediul central al companiei la sfârşitul
lunii.
5. Adjunctul secretarului general este responsabil de soluţionarea tuturor intrebărilor
administrative şi legale din cadrul companiei.
6. De achiziţionarea materiei prime şi echipamentului pentru cele cinci uzine de producere se
ocupă serviciu de aprovizionare.
7. La şedinţa anuală preşedintele consiliu director se va adresa actionarilor.
8. Atât responsabilii comerţ intern şi extern, cât şi cel de la serviciu publicitate raportează
direct directotrului comercial.
9. Urmăriţi pe transparenţa de mai sus structura companiei, prezentată de către managerul
cadre Margaret Singer.
10. Avem cinci uzine de producere: trei in Marea Britanie, una în Singapore şi una în Franţa.

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, persoană fizică sau juridică implicată într-un contract);
Agreement - a decision or arrangement, often formal and written, between two or more people;
75
 (rom: accord, contract);
Deal - a business transaction; (rom: accord sau afacere comercială);
Tender - a written or formal offer to supply goods or do a job for an agreed price;
(rom: licitaţie, ofertă); syn: offer, proposal; opp. counter-offer – contra-ofertă;
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);
Issue - a topic that needs to be discussed in a negotiation; (rom: problemă, întrebare);
Quotation - the price that a person says they will charge to do a piece of work; (rom: cotaţie, 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; clauză, condiţii
syn: article; (rom: clauză);
Terms - the conditions of a legal, business, or financial agreement; syn: stipulations;
(rom: termeni, condiţii);
Null and void- invalid; without legal force; not binding; (rom: nul şi neavenit);
Discount- a reduction in the usual price; (rom: reducere de preţ exprimată în 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 începe negocierile
To quote £… for the equipment- a estima/a oferi un preţ informativ de … lire sterline
To tender for a contract- a prezenta oferta
To achieve a win-win result - a atinge un rezultat satisfăcător
To reach/come to an agreement- a ajunge la înţelegere
To break the terms of an agreement- a încălca termenii contractului
To kick things off=to start a discussion- a începe o discuţie
To make a concession- a face o concesie
To meet half-way- a ceda reciproc
negotiations break down- negocierile au eşuat
to brake off negotiations- a întrerupe negocierile
to draw up a contract – a întocmi 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.
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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 negotiator’s words with his thoughts.

1. We are prepared to consider your offer. a. We agree to your offer.

2. On condition that you …we could …
3. We could consider hedging against
currency
4. That would be acceptable.
5. I’m afraid that’s not company policy.
6. May I suggest that we begin by …
7. Can you quote me ex-works?
b. I need a price ex-works.
c. We’ll wait until the whole work is
clear.
d. We can agree to that.
e. It’s just not possible.
f. Let’s begin.
g. If you … we may …

4. Complete the expressions with the given words.

get Agree deal reasonable for throw make

manag Mind prepared flexibility room halfway work
e

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 _______ ?
6. If you cut your delivery time by, say, 10 days, we would be _______ to to pay the price
you have proposed.
7. We’d need to see a bit more _______ on terms of payment.
Rejecting a proposal
8. Come on, let’s be _______ here.
9. Unfortunately, I don’t 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, it’s a _______ . (source: http://www.linguahouse.com/worksheet/negotiating-deals)

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 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: Mr. Sobor, it’s nice to see you again.
S: Nice to see you too, Mr. Ashton.
A: Shall we start with coffee or get down to business straight away?
S: Perhaps we’ll start the talks and have coffee a bit later. May I suggest that we begin by discussing
prices, after that we’ll pass to the delivery period?
A: You’ve seen our machines in operation, haven’t you?
S: Yes, we have. And we are more or less satisfied with their performance.
A: I’m glad to hear that.
S: What’s your best offer for a delivery of 10 machines?
A: Our proposal would be a unit price of €50 000, CIF, excluding tax.
S: Is your price subject to a discount?
A: It’s not our company policy, but if you order a great number of machines or pay in cash, then you
are granted a discount of 10%.
S: Oh I see. And what do you consider “a great number”?
A: Over 25 machines, let’s say.
S: All right, Mr. Ashton we are going to order 50 machines, if the price is reasonable. Could you
give us a 20% discount?
A: That’s a bit too much. We’ll meet you halfway, though, and make it 15%, Mr. Sobor, but that’s
final.
S: I agree. Now, what about the delivery times?
A: Well, we can deliver the 1st shipment of 10 machines in 5 months.
S: I’m afraid it’s a long delivery period.
A: Well, this is the usual period. Do you want it to be delivered quicker?
S: We expect 3 months maximum delivery.
A: I see what you mean but that would be very difficult. We are heavy with orders. Our equipment is
in great demand, because it’s of high quality and meets the customer’s requirements. Look, if I
can promise your delivery in 4 months, does that help?
S: I’m afraid, that’s not enough.
A: You see, it goes without saying it’s really a very short deadline in this business. You really are
asking us for something that is very difficult. I’ve made a little concession so, I’ll have to consult
with my colleagues and come back to you, but I can’t see what we can do.
S: May I make a suggestion? If you deliver all the machines in 4 weeks we might be able to talk
about further order.
A: If you can promise another order I think we could accept your terms.
S: Let’s 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.
A: Exactly. If you could confirm this in writing, I’ll be much obliged to you.
S: Shall we call it a day than?
A: Yes, we can. See you tomorrow morning at 10. Goodbye!
S: 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 comandă de... 7. avem multe comenzi

2. îndeplineşte cerinţele clientului 8. ne-aţi putea oferi o reducere
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 3. propunerea noastră este un tarif unitar de... 9. trecem la treabă imediat
4. există o cerere mare pentru echipamentul 10. va venim în întâmpinare
nostru 11. se subânţelege
5. am putea accepta condiţiile d-ră 12. termenele de livrare
6. într-adevăr e un termen foarte scurt

2. Idiomatic expressions make the language more colourful. Match the idiom (1-10) with
the appropriate explanation (a-j).
 
1. meet (someone) halfway a. to maintain and defend one's position
2. reach a stalemate b. to change your position in favor of the other person
3. rock-bottom offer c. start working
4. get down to business d. to have sth. in reserve with which you can gain an
5. read between the lines advantage
6. call a spade a spade e. to compromise with someone
7. make a concession f. to arrive at a position where no progress is being
8. stand one’s ground made
9. have an ace up your sleeve g. the lowest price that one can offer to buy sth.
10. piece of cake 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, we’d better get down to business.
I suggest you / we take all the factors into consideration before we decide.
Why don’t we …(do something together)
I think you should buy …

Way to say “Yes” during a negotiation Way to say “No” during a negotiation

I agree with you on that point. I understand where you are coming from;
In the spirit of compromise, I would suggest… however…
So what you are saying is that you… I’m prepared to compromise, but…
You have a strong point there. If you look at it from my point of view…
I think we can both agree that… I’m afraid I had something different in my
mind.
Is that your best offer?
I am reluctant to accept.
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 partner’s 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.

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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
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…
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 6. … all instructions on the drawings are to be in English…

6. By combining a word in row A with one in row B you’ll 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 written the final report of the company.

III. Evaluation

1. Translate the following sentences into English:

1. Condiţiile sunt stipulate prin contract.
2. Nu putem efectua livrarea înainte de sfârşitul lunii.
3. Ni se va acorda o reducere de 5% la plata în numerar.
4. Care sunt condiţiile de plată?
5. Mă tem că nu ar fi în acord cu politica firmei.
6. Trebuie să avem certitudinea că primim marfa la timp şi nu încetinim producţia.
7. Suntem perfect credibili în ce priveşte termenile de livrare.
8. Noi facem concesii în ceea ce priveşte comenzile şi termenele de plată, iar dvs. reduceţi
termenul de livrare şi ne acordaţi o mică reducere.
9. Sunt neliniştit pentru că mi se pare că suntem pe punctul de a pierde contractul de €…
10. Sunt sigur că putem ajunge la un compromis.
11. Sunteţi un foarte bun negociator !
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 12. Întotdeauna mi-a făcut plăcere să fac afaceri cu dvs.

Unit 10. JOB HUNTING

I. Vocabulary
Looking for a job – căutarea unei slujbe
Job- 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, funcţie);
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 caută sau oferte de munca) ;
Recruitment- the action of enlisting new people in the organization/army;
(rom: recrutare, completare); Recruit – membru nou, recrut ; 
Job hunting - seeking employment; (rom: căutarea 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: vânătoare de capete);
Headhunter – agent de recrutare/vânător 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);
Interview –an oral examination of an applicant for a job; (rom: interviu);
Asset – a useful or valuable thing or person; (rom: avantaj, atu);
Job holder- a person that holds a job; (rom: salariat);
Fringe benefits -an extra benefit supplementing an employee’s money wage or salary, for example
a company car, private health care, etc.; (rom: beneficii suplimentare, indemnizaţii);
Perks (inf.) - a benefit to which one is entitled because of one’s job; (rom: avantaje);
Promotion prospects- the possibility or likelihood of some future promotion occurring;
(rom: posibilităţi de promovare);
Job satisfaction- fulfilment of one’s wishes, expectations, or the pleasure derived from a job;
(rom: satisfacţie profesională).

Qualifications – titluri şi competenţe, calificări

 University graduate – licentţiat (al universităţii);
 Scientific degree – grad ştiinţific;
 Skilled worker – muncitor calificat;
 Unskilled worker – muncitor necalificat.

Job Requirements –exigenţe

 Fluency in English – vorbirea fluenta a limbii engleze;

 Preferred age… - de preferinţă în vârsta de …; age bracket – grupa de vârstă;
 Well versed in – competent în;
 A basic requirement – o condiţie necesară;
 Business acumen – simţ al afacerilor;

82
  To be able to operate with minimum supervision – să fie capabil să deruleze o afacere în
condiţii de minimă supraveghere;
 To be able to travel extensively – trebuie să poată să călătorească frecvent;
 To be self-starter – a fi capabil de a demara o afacere, o acţiune;
 Two years experience in this capacity – doi ani de experienta in aceasta functie;
 A background knowledge of accountancy – cunostinţe aprofundate de contabilitate.

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

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 slujbă;
To hold a post (as/of) – a ocupa un post (de);
To appoint sb. to a post (to a position) – a numi pe cineva într-un post;
To earn a salary/wage- a câştiga un salariu;
To make a living-a-şi câştiga existenţa;
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 funcţie; to tender one’s resignation- a-şi da demisia;
To dismiss=to fire= to sack – a concedia;
To lay off= to make redundant- a disponibiliza din raţiuni economice;
To be fired for professional misconduct- a fi demis pentru o eroare profesională;
To be on the dole- a beneficia de alocaţie de şomaj;
To retire from the Navy- a ieşi la pensie din marină;
To take a sick leave - a-şi lua concediu medical;
To take a day off/holiday - a-şi lua o zi liberă/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 employer’s
pension as a fringe benefit.
3. Applications are invited for the position of
....
4. Successful managers are headhunted from
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.
a. Se solicita depunerea de cereri pentru postul
de ….
b. Interviul va avea loc la mijlocul lunii
octombrie.
c. Managerii de succes sunt recrutaţi de la
companiile mai mari.
d. El a demisionat din funcţia de ministru de
externe.
e. Postul cere un dezvoltat simţ commercial.
f. Va fi considerat un atu.
g. Unele posturi oferă o pensie a angajatorului
ca un beneficiu suplimentar.

83
 2. Find the opposite.
1. to be promoted 6. looking for a job
2. to resign from the post 7. a drawback
3. to take on 8. retention on wages
4. to be on the dole 9. closing date
5. to start a career 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 people’s feelings
c) someone who doesn’t panic
d) someone who rarely makes mistakes
e) someone who you can trust or count on
f) someone who can change people’s 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.
II. Read the following dialog to see what’s John’s understanding of job satisfaction.
Bob: John, it’s nice to see you after such a long time! So, tell me about your job situation.
What are you up to these days?
John: 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. Then I was laid off because the

84
 company was in financial difficulties, so I had to start looking again.
Bob: Oh dear, so what happened next?
John: 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.
Bob: That must have made it difficult to find another position.
John: 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 didn’t really match the job description and
although I earned a very good salary, there wasn’t much job satisfaction and I soon felt
that I was in rather a rut.
Bob: What a difficult decision to take- all those advantages and you still weren’t happy.
John: 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 wasn’t done properly. I was asked to leave with a small
golden handshake and so I had to go back to the head hunter.
Bob: Time was marching on by than, what did you do next?
John: 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.
Bob: 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 she’ll 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 retire.
8. Bob was laid off two years ago.

2. Explain the following word combinations:

1. A real “career girl”…..
2. Being an ex-pat …
3. Join the club!
4. To outlive one’s usefulness
5. To be in a rut

3. Find in the text English equivalents to the following word combinations:

85
 a. am avut o carieră haotică g. promovare pe merite profesionale
b. mă situam la baza ierarhiei h. simt că mă plafonez
c. punctaj avantajos pentru pensie i. o despăgubire confortabilă
d. am fost disponibilizat j. statut de emigrant
e. pe motiv de greşeală profesională k. amână momentul pensionării
f. system de evaluări periodice

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 candidate’s 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 position’s name, mainly the English name. For instance, one may be misled
by the incorrect interpretation of the word “assistant” which doesn’t 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 shouldn’t 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.

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 o’clock
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.
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 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 Incorrect
Past Simple
 I graduated from TUM last year. ( that’s  I have graduated since 2012.
when the ceremony occurred)
 I finished the TEMPUS project last  I finished the TEMPUS project last
week. week.

Present Perfect  Have you visited Madrid two years

 Have you ever visited Madrid? ago?
(we are only interested whether someone has
done something, not when they did it)

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) It’s eleven o’clock and I’ve 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. (It’s 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
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
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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 shouldn’t do when looking for a job.
2. Translate the following sentences from Romanian into English.

1. Există câteva căi tradiţionale de căutare a unui loc de muncă cum ar fi: prin intermediul
anunţurilor publicitare, agenţiilor forţă de muncă şi de la om la om.
2. Un mod civilizat şi activ de căutare a unui serviciu constă în cercetarea pieţei locurilor de
muncă, pentru a-ţi forma o viziune clară asupra cerinţelor faţă de candidat şi a-ti estima şansele
proprii.
3. Companiile solide îşi plaseză anunţurile în publicaţii scumpe, prestigioase, cu o reputaţie fermă.

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4. Sarcina ta principală este să sesizezi dacă postul oferit este compatibil cu abilităţile tale,
educaţia şi experienţa de muncă.
5. Structura avizelor cu oferte a posturilor de muncă este asemămîtoare: denumirea postului
vacant, lista obligaţiunilor profesionale ale candidatului, exigenţe faţă de candidat, precum şi
sistemul de benficii şi compensaţii.
6. Studiind atent cerinţele şi obligaţiile prezentate, un cititor exigent, experimentat poate extrage
informaţii privind activităţile companiei şi perspectivele ei de dezvoltare.
7. Aşadar, folosind toate mijloacele posibile, încercă să afli cât mai mult despre postul oferit,
pentru a fi pregătit cât mai bine posibil pentru eventuala întâlnire cu angajatorul.
8. Prin vorbirea fluentă se subînţelege abilitatea de a comunica liber cu un manager străin, de a
răspunde la telefon şi competenţă în completarea documentelor.
9. Conform standardelor internaţionale, un nivel adecvat de dactilografiere constitue 100 cuvinte
per minut.
10. Ca regulă, dacă avizurile de angajare enumeră meticulos programe de calculator, sisteme, limbi,
etc., pe care candidatul trebuie să le cunoască, ţine minte, că aceste cerinţe au o forţă strict
obligatorie.

APPENDIX 1.

British vs. American Business Terms

Here are some of the main differences between British and American business terminology.

British American
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 Annual General Meeting (AGM) Annual Stockholders Meeting
Articles of Association Bylaws
authorised share capital authorized capital stock
base rate prime rate
bill (café) check
(bank)note bill
building society savings and loan association
centre center
cheque 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

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

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spreadsheets, databases, and similar business software.

Education and qualifications:

September 2004 to present: BA (Hons) in Business Economics
City University, Bristol
(graduating in June 2007)

September 1996-June 2003 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)
Employment history:
July-September 2006 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

July-September 2005 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

July 2003-August 2004 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.
Other qualifications and skills:
Advanced Certificate in MS Word, MS Excel, and MS
Access (evening course, September-July 2006)
Interests: Full driving licence
Netball, travel, swimming
References:
Dr Thomas Clark
Senior Lecturer in Business and Management
Department of Business Organization and Strategy
City University
Bristol BS1 2ER

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

91
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)

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.

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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)

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).

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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.
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 engleză pentru afaceri, Polirom, Bucureşti, 2008
6. Gillett Amy, Speak Business English like an American, Language Success Press,
Michigan, 2008

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7. Marcheteau M., Berman J.P., Savio M., Engleza comercială în 40 de lecţii, Niculescu,
Bucureşti, 2000
8. Oxford Collocations Dictionary for Students of English, Oxford University Press, 2002
9. Cambridge Advanced Learner’s Dictionary, IIIrd edition, Cambridge University Press,
2008
10. Dicţionar de marketing englez-român, Ştiinţa, 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/

CONTENTS

UNIT 1. WHAT IS ECONOMICS? .......................................................... 3

UNIT 2. DECISION-MAKING AND PROBLEM SOLVING ……………. 12

UNIT 3. MONEY TALKS 20

UNIT 4. …………………………………………………... 32
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UNIT 5. HOW THE MARKET WORKS 40

UNIT 6. …………………………………... 48

UNIT 7. MARKETING&ADVERTISING ……………………………....... 56

UNIT 8. HOW BUSINESSES FUNCTION 65

UNIT 9. ………………………………… 71

UNIT 10. HOW BUSINESSES ARE ORGANIZED …………………….. 77

APPENDIX 1. COMPANY 85

APPENDIX 2. STRUCTURE………………………………………… 86

APPENDIX 3. NEGOTIATIONS &CONTRACTS 87

APPENDIX 4. ……………………………….. 88

APPENDIX 5. JOB HUNTING 89

BIBLIOGRAPH ……………………………………………………. 90

Y BRITISH vs. AMERICAN BSINESS TERMS

BUSSINESS CORRESPONDENCE. CURRICULUM VITAE

JOB APPLICATION LETTER

…………………………………….

MAKING AN ENQUIRY
………………………………………….

MAKING COMPLAINTS
…………………………………………

……………………………………………………………………
…

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 ENGLISH
FOR ECONOMICS AND BUSINESS
Methodical elaboration

Autor: Zingan Olga

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

U.T.M., 2004, Chişinău, bd. Ştefan cel Mare, 168

Editura ,,Tehnica-UTM”
2068, Chişinău, str. Studenţilor, 9/9

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© UTM, 2013

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