Economic Considerations

Supply, Demand and Market Price (II)

LESSON 4. The aim of the lesson is learn to demonstrate the principle of supply and demand in the market economy, to compare the free-market economy with the state-run command economy, and to understand how our everyday life depends on an economic situation. To attain this, you will be involved in a great deal of vocabulary enrichment activities, simulations and pair work.

1. Reproduce the following definitions from memory and continue the explanation where necessary using “The Language of Business”, unit 1.

2. Address the following utterances to your partner to translate them into Russian:

* Whenever somebody decides to start his own business, he must be aware that luck, or unhappy coincidence, may turn a business into success or failure.

* Modernising a business to increase its profitability and competitiveness is a complicated affair. It requires a management team which is aware of such aids and tools of efficiency as electronic data processing, operational research (O.R.), discounted cash flow (D.C.F.), budgetary control, corporate planning, project evaluation and review technique, automation, etc.

* A small business cannot possibly afford to have on its staff experts in every modern management technique. It usually hires expert advice from outside consultants and bureaux.

* It is important that members of a firm’s management should be aware of the more sophisticated techniques they might call on to solve particular problems. Inevitably while this changeover from the old way to the new is taking place, there are often difficulties and conflicts.

* Any firm must get right up-to-date and enlarge its business, or it will be outpaced by another firm whose business organization is better and more effective.

(dicounted cash flow = a method of calculating how profitable na investment will be by looking at the amount paid out, the interest earned and the degree of risk)

3. “The Language of Business”, unit 1.

a) Give the Russian equivalents for:

income per capita is rising fast; will you back me up?; we’re crazy not to look for more foreign business; the expense is worth it; look what happened over our attempt to break into that market; labour trouble; to meet delivery dates; Abracan imports are going to rise rapidly; likely competitors; tariffs on certain products; to be liable for duty; facilities; to trans-ship goods; to arrange direct sailings; to get an important license; red tape; channels of distribution; to have a field survey to find out something; to work up a big demand for goods; home market; I got fed up with his old-fashioned outlook; a first-class return flight to.

b) Reproduce (and act!!!) the conversation between John Martin and Hector Grant.

4. Explain why it’s really vital for a firm to open up new markets. Is risk-taking appropriate? Enumerate those factors that can attract a businessman to go to a new market, and those factors that hinder one’s decision to break into a new market.

5. Render the following text into English (to be done at home and handed in!!!). Use the following vocabulary items:

*** competing economic systems; command economy; planned economy; enterpreneurship; centralized, planned economy; sustainable economic development/ growth; fair subsistence level; market economy; decentralized; flexible; ever-changing; private market; competing products and services; consumer’s freedom to; producer’s freedom; to benefit in case of success; employer; employee’s freedom; economic prosperity

7. Work in pairs. Give your criticism of the above given essay and say whether you think its main idea right or wrong. Prove your opinions

Date: 2015-01-29; view: 1373