English for Business Management

Chapter I: EconomicsUnit 1: Economic Activity Text 1.1 Most people work in order to earn their living.. The work which people do is called their economic activity.. The economic system i

English for Business Management

Chapter I: Economics

Unit 1: Economic Activity

Text 1.1

Most people work in order to earn their living

They produce goods and services

Goods are either produced on farms, like maize and milk, or in factories, like cars andpaper

Services are provided by such things as schools, hospitals and shops

Some people provide goods; some provide services

Other people provide both goods and services

For example, in the same garage, a man may buy a car, or he may buy some service whichhelps him to maintain his car

The work which people do is called their economic activity

Economic activities make up the economic system

The economic system is the sum-total of what people do and what they want

The work which people undertake either provides what they need or provides them withmoney

People buy essential commodities with money

Exercise 1

Answer the following questions:

1 Why do most people work?

2 What do they produce?

3 Where are goods produced?

8 What two things can work provide for the worker?

1 Perhaps he will buy a car

2 Perhaps we shall want some more fruit tomorrow

3 Perhaps they will get the essential commodities soon

4 Perhaps the service will stop next month

5 Perhaps the garage will not sell that car to him

6 Perhaps the economic system belongs to a city, a whole country or the whole world

7 Perhaps the car does not belong to those people

8 Perhaps he will buy some service which will help him maintain his car

9 Perhaps he will see the car when he comes tomorrow

10 Perhaps he will provide what they need when he comes

Language practice

1 Relative pronouns

 Relative pronouns do two jobs at once They are used as the subjects or objects ofverbs, like other pronouns; at the same time, they join clauses together, likeconjunction

Example: What’s the name of the blond girl? She just came in

What’s the name of the blond girl who just came in?

 The most common relative pronouns are who, whom, which and that Who and

whom are used for people; which are used for things.

Example: I don’t like people who lose their tempers easily.

Mexico city, which has a population of over 10 million, is probably the fastest

growing city in the world

 Whom (which refers to the object of a verb or a preposition) is rather unusual,

especially in conversational English It is generally either left out, or replaced by

who or that It is almost impossible in clauses that end with a preposition.

Example: Do you think one should stay faithful to the person to whom one is

married?

 That can often (but not always) be used instead of whom or which, and quite often

instead of who.

E.g The trumpet is the instrument that really excites me.

She is the only person that understands me.

 After nouns referring to times and places, when and where can be used to mean at

which or in which After the word reason, why is used to mean for which.

Example: Can you suggest a time when it will be convenient to meet?

Is there any reason why you should have a holiday?

I know a wood where you can find wild strawberries.

 Whose is a possessive relative word.

Example: This is Henry, whose wife works for my brother-in-law.

Exercise 1

Combine these pairs of sentences as in the example:

Example: The services are useful The workers provide services

The services which the workers provide are useful.

a The goods are essential They need the goods

b The schools and hospitals are essential They provide schools and hospitals

c The goods are valuable He buys the goods

d The money buys essential commodities People can earn this money

e The goods and services are very useful People produce these goods and services

f The work is called economic activity We do this work

2 Change nouns into adjectives

Exercise 2

In these sentences, certain nouns are printed in italics Change them into adjectives

which can be used in the blanks

Example: education _ education + al _ educational

Commerce _commerci + al _ commercial

a These goods belong to the nation They are therefore _national _

b Minerals are a part of nature They are therefore natural

c Schools provide education They are therefore centers of educational activity

d Shops are places of commerce They are therefore centers of _commercial _activity

e He does not want anyone else to do this work He wants to do the work in person.

It is his _personal concern

Text 1.2

Most people work to earn a living, and produce goods and services Goods areeither agricultural (like maize and milk) or manufactured (like cars and paper) Servicesare such things as education, medicine and commerce Some people provide goods; someprovide services Other people provide both goods and services For example, in the samegarage a man may buy a car or some service which helps him to maintain his car

The work which people do is called economic activity All economic activitiestogether make up the economic system of a town, a city, a country or the world Such aneconomic system is the sum-total of what people do and what people want The workpeople undertake either provides what people need or provides the money with whichthey can buy essential commodities Of course, most people hope to earn enough money

to buy commodities and services which are non-essential but which provide someparticular personal satisfaction, like toys for children, visits to the cinema

Exercise 1

Decide whether the following statements are true (T) or false (F), and if they are false saywhy

1 Most people produce either goods or services

2 Services are either agricultural or manufactured

3 Education and medicine are provided by schools and hospitals

4 Cars and paper are agricultural goods

5 Paper is non- agricultural commodity

6 The work which people do is called an economic system

7 A city has its own economic system

8 Economic activity is the sum-total of what people do and want

9 The work people undertake provides them with money, or with what they need

10 Most people do not want to buy non-essential commodities and services

Exercise 2

In the sentences below replace which with that When you have done this, re-write all the sentences without either which or that The meaning remains the same but the sentences

become less formal

1 The goods which they wanted were essential minerals

2 The schools and hospitals which they provide are essential

3 The goods which he buys are valuable

4 The money which the people earned bought many commodities

5 The goods and services which people produce are very useful

6 The work which we all do is called economic activity

7 The work which most people do provides them with money

10 The work which he undertook was useful but non-essential.

Study the words

Earn one’s living

Maintain (v)

Make up (v)

Sum-total (n)

Undertake (v)Essential (adj)Commodity (n)

Unit 2: Different economic systems

Text 2.1

Not all economic systems are the same

The economic system of the United States is very different from the economicsystem of the USSR The American system is based on private enterprise The Russiansystem is based on the principle of Karl Marx Karl Marx is a political economist wholived in the 19th century The American system is capitalistic, while the Russian system iscommunistic

The economic ideologies of these two nations differ very much from each other.The economic system of Britain is similar to the American system Britain has theeconomic system based on private enterprise and private supplies of capitals Property inBritain and the United States can be owned by individual citizens The economic freedom

of the citizens of Britain and America is not complete freedom Citizens must obey thelaw, but otherwise they can use their time, money and effort as they wish

Exercise 1

Answer these questions, basing your answers on the text

1 What does the economic system of the United States differ from?

2 What is the American system based on?

3 What is the Russian system based on?

4 When did Karl Marx live?

9 What three things can Britons and Americans use as they wish?

Exercise 2

Make these sentences passive, as in the example

Example: Most people produce goods and services

Goods and services are produced by most people

1 Some people provide both goods and services

2 Economists study the economic system

3 That man owns the house

4 They will provide shelter and clothes

5 Economic changes affect our lives

6 They will maintain his car

7 The economists explained the economic system

8 They explained the methods

9 He told me how the Russian system works

Exercise 3

Here are two lists The first list contains adjectives The second list contains nounsand noun phrases Arrange the words in each list so that the adjectives match the nouns inways which relate to the text The first two are done for you

Language practice

1 Description: the use of active and passive

Look at these two sentences:

A International traffic is carried by the Transit Network.

B The Transit Network carries international traffic.

Both A and B are correct The choice (A or B) depends on what you want toemphasise: “International traffic” (sentence A) or “The Transit Network” (sentenceB)

Now look at these two sentences:

C The economic system was based on Marx by them.

D They based the economic system on Marx.

C is much better than D The personal subject “they” does not add any information Infact, it makes the important information more difficult to see

Exercise 1

Make these sentences passive and omit the agent phrase in the same way as in theexample

Example: They based the economic system on Marx

The economic system was based on Marx by them

The economic system was based on Marx

a They provided all necessary goods and services

f The economic system affected the people’s lives in many ways.

g They studied the supply of both essential and non-essential commodities

h The people enjoy a strong economy in that country

i The citizens exercise a considerable amount economic freedom

j They must obey the law

2 Word formation - Suffixes

When you are reading, you will come across unfamiliar words It is often possible toguess the meanings of these words if you understand the way words in English aregenerally formed

Affixes

Prefixes + stem + suffixes

An English word can be divided into three parts: a prefix, a stem and a suffix means “before”; a prefix, therefore, is what comes before the stem Consider, as an

Pre-example, the prefix DE- (meaning “reduce” or “reserve”) in a word like demagnetize

(meaning “to deprive of magnetism” A suffix is what is attached to the end of the stem.Consider, as an example, the suffix, -ER (meaning “someone who”) in programmer (“theperson who programs”) Both prefixes and suffixes are referred to as affixes

Prefixes usually change the meaning of the word, for example, un- changes the

word to a negative Unmagnetizable means “not able of being magnetised” Suffixes, on

the other hand, change the word from one part of speech to another For example, -ly

added to the adjective quick gives the adverb quickly Let now consider some suffixes and

their usual meanings

Exercise 2

Form new words from the words listed below

Example: capital  capitalism  capitalist  capitalistic

Note: The suffixes -ism = system (noun)

-ist = person (noun)-istic = about the system or person (adjective)

Text 2.2

Not all economic systems are the same The economic system of the USA differsgreatly from the system of the USSR The American system is based on private enterprisewith private ownership of the means of production, while the Russian system iscommunistic and is based upon the principles of Karl Marx, the 19th century politicaleconomist The economic ideologies of these two nations contrast very strongly

Britain is similar to the USA It has an economic system based on privateenterprise and private supplies of capital, which can be defined as surplus incomeavailable for investment in new business activities Property in both USA and Britain can

be owned by individual citizens and these citizens exercise considerable economicfreedom of choice They can choose what they want to do and how they want to earn theirliving, but are not of course entirely free to do as they wish They must obey the law.Otherwise, however, they can use their time, money and effort as they wish

Exercise 1

Decide whether the following statements are true (T) or false (F), and if they are false say why

1 The economic systems of the USA and USSR are the same

2 In the USA the means of production are privately owned

3 Karl Marx was an eighteenth century economic thinker

4 The British system is based on the principles of Karl Marx

5 Because British has a system of private enterprise, we can say that its economy issimilar to the American economy

6 Capital is essentially surplus income used for business activities

7 Individual citizens in Britain and the United States have complete economic freedom

8 British citizens can choose what they want to do as long as they obey the law

Exercise 2

1 Find single words in the first paragraph of the text for which these words could besubstituted.

a founded b possession c main teaching d countries

2 Find single words in the second paragraph of the text for which these words could besubstituted

e have and use f selection g pick h completely

i follow j physical power

Study the words

Unit 3: Mixed economies

Text 3.1

No state today is completely communistic; no state is completely capitalistic.The various national economic systems tend towards communism or capitalism,and many are difficult to classify exactly

It has been found necessary in many countries to control or regulate nationaleconomic conditions

Even the most dedicated free enterprise systems, such as the USA, have felt thisneed

The under-developed countries of the world are usually interested in control andlong-term planning

Such countries as India have had a number of plans guided by the government.India makes a distinction between the public sector of the economy on the onehand and the private sector on the other hand

Such systems, with public and private sectors, are neither communistic norcapitalistic, but are sometimes called mixed economies

Britain today has a mixed economy

In the public sector of British economic life are the nationalized industries like coaland steel, British Rail and BOAC

In the private sector are the majority of the nation’s industries, both large andsmall

The private sector includes giant companies like ICI and BP and a great number ofsmall family businesses

In 1962 the British government set up an official body to plan national economicpolicies This body is called the National Economic Development Council The members

of this council are representatives of the employers, employees and other interestedpeople

Exercise 1

Answer these questions You may answer either YES or NO Give your reasons Quotefrom the text in support of your answer

1 Are there any completely communistic states?

2 Are there any completely capitalistic states?

3 Do the various national economies tend towards one or other ideology?

4 Are the various economic systems difficult to classify?

5 Have most countries found economic control necessary?

6 Has the USA felt the same need?

7 Are the under-developed countries interested in control and planning?

8 Has the India had a number of national economic plans?

9 Is the Indian economy based entirely on private enterprise?

10 Does the Indian economy have two distinct sectors?

11 Is the Indian system a mixed economy?

12 Is BOAC a nationalized British industry?

13 Is the ICI a nationalized British Industry?

14 Was the NEDC set up by British government?

15 Are both employers and employees represented on NEDC?

Exercise 2

Answer these questions, basing your answer on the text

1 Why is it difficult to classify many national economic systems?

2 What are the under-developed countries interested in?

Exercise 3

Change these sentences by changing certain adjectives into verbs The new verbs are

listed, but not in the proper order Note that all these verbs are concerned with making

something happen.

Example: They made the economy regular

They regulated the economy

Complicate; consolidate; liquidate; simplify; nationalize; internationalize; activate; activate

re-1 They made the subject complex

2 They made the subject simple

3 They made the businesses “solid” (by bringing them together)

4 They made the business “liquid” (by breaking it up or dissolving it)

5 They made the economy active

6 They made the economy active again (or for a second time)

7 They made the industry national (or public)

8 They made the business international

Example: simple simplify _ simplification

Use the table and the example to help you fill in the blank in the sentences

SimpleNote

ify

PureClassClear (= clar-)

ification

NOTE: remember to remove the “e” in simple, note and pure.

a This plan is not simple enough We must therefore _ it The of plan

is essential

b The economy of that country belongs in the Marxist group or class We must

therefore it as communistic The _ of the economy of that country

is not difficult

c That water is not pure enough It is necessary therefore to _ it The

of the water is a matter of public health

d Please send a note to the members of the Council You should _ them of the

date of the next Council meeting The _ should reach them this week

e The economics teacher tried to make the situation clear He tried to his

description by making it simpler When he has made this , his studentsunderstood the whole mater much better

2 Forming new words from the basic word

Exercise 2

Seven words can be formed from the basic word nation This table shows you how to do

it Make a list of the words and put each word in its suitable place in the sentences You

will also need the word nation itself.

a The USA is the homeland of the American _.

b Most countries have _ banks, such as the Bank of England

c The Socialist Party has plans to _ various privately owned industries

d British Rail is already a industry, because it is publicly owned

e The name given to the change from private to public ownership is

f In the last twenty years has been a strong political force leading to theinformation of many new nations

g A person who is interested in the progress and history of his own country may becalled a

h Many governments have certain policies which are not international but simply

Text 3.2

No state today is completely communistic; no state is completely capitalistic Thevarious national economic systems tend generally toward one type or the other, but manysystems are difficult to classify

It has been found necessary in many countries, even in such dedicated strongholds

of free enterprise as the USA, to control or regulate national economic conditions Theunder-developed countries of the world are inevitably interested in control long-termplans guided by the government Indian has had a number of plans guided by thegovernment India makes a clear distinction between the public sector and the privatesector of its economy Systems of this type are sometimes called mixed economies

Britain nowadays has a mixed economy In the public sector, British economiclives are the nationalised industries like coal, steel, British Rail and BOAC In the privatesector are the majority of the nation’s industries, both large and small, from giants like ICIand BP to small family businesses

In 1962 the government set up an official planning body to guide nationaleconomic policies This body is known as the National Economic Development Council.The members of NEDC are representatives of the employers’ federations, and the TradeUnion Congress, together with members of the government, eminent industrialists andleading economists.

The main function of the NEDC is planning national production and setting upproduction targets It is however a very difficult mater to plan ahead in a mixed economy

It is not possible to plan ahead any certainty even in a rigidly controlled economy,because natural disasters, political changes and other factors can affect the general plan inunexpected ways

Exercise 1

Decide whether the following statements are true (T) or false (F), and if they are false saywhy

1 The USSR is completely communistic

2 The USA is not completely capitalistic

3 The many economic systems in the world are not difficult to classify

4 Even the United States finds it necessary to control national economic conditions to acertain extent

5 The interest of the under-developed countries in long-term planning is inevitable

6 India makes a clear distinction between the two sectors of its typically mixedeconomy

7 The nationalized industries in Britain are inevitably in the private sector of theeconomy

8 Giants like ICI and BP are not publicly owned

9 The British government controls the economy very strictly through the NEDC

10 Planning ahead in a mixed economy is not particularly difficult

Example: The government has set up an official committee This committee must decidenational economic policy.

i The government has set up an official committee which must decide

national economic policy

ii The government has set up an official committee to decide national

1 The USSR is a _ of communism

2 The Americans are _ to a system of private enterprise

3 To control an economy is much the same as to it

4 The work was carefully by the authorities for five years

5 It is necessary to make a sharp between planned and unplannedeconomies

6 He does not work in this _ of the economy but in the public one

7 A mixed economy possesses some of the qualities of the two main ofeconomic system

8 Coal, steel and farming are important national _

9 The of the workers were happy about the new plan, but a small numberwere not

10.Some industrial _ , like BP and ICI, are international as well as national in their activities.

Study the words

BP: British PetroleumNEDC: National Economic DevelopmentCouncil

British Rail

as the relationship between a consumer and a commodity.

Utility varies between different people and between different nations A vegetariandoes not want meat, but may rate bananas very highly A mountain-republic likeSwitzerland has little interest in submarines, while maritime nations rate them highly.Utility also varies with time In time of war, the utility of bombs is high and that of pianos

is low Utility is therefore related to our sense of priorities The utility of a commodity isalso related to the quantity available to the consumer If men buy a large quantity ofpaper, they will lose interest in buying more paper The demand for paper will go down.The utility of a commodity consequently decreases as the consumer’stock increases