Денис Шевчук - Английский для экономистов (учебник английского языка)

The political system is coupled with the economic system . The type of economy a society has can range from private enterprise to planned economy. Whatever its form, the economic system is concerned with the allocation of scarce resources and the provision of some form of distribution. It is, in practice, quite difficult to separate the political and economic systems from each other.

The macro environment is also the source of technology – the machines, techniques, and methods required for production and distribution. To be able to compete successfully, organizations must have access to modern technology. It is simply not feasible for an organization to compete unless an adequate level of technology is available to it. It can be safely stated that organization success is measured by the ability of the organization to adjust to and to employ technological innovations. Among their responsibilities, managers today must count the obligation to maintain a spirit of creativity and ingenuity among members so that continued progress on the technological front can be made. The ever-growing shortages of resources of all types are but one indication of the seriousness of this obligation.

Skill mix in the labor force is likewise an important facet of an organization’s macro environment. All organizations depend to some extent on a supply of labor that possesses the skill and ability to perform the work necessary to attain objectives. Consequently, labor market conditions and skill mixes are crucial to success.

The consumers are the ultimate arbiters of the organization’s success, for it is they who make the critical choices to consume or not to consume an organization’s output. Without the income (in whatever form) that results from this consumption, the organization is doomed to a relatively short life. This means that managers must be more aware of and sensitive to the total environmental complex of their organization in order to develop and implement plans for successfully coping with it. Otherwise, there is little chance for success, for по longer willyesterday’s methods based on a placid environment serve in today’s turbulent outside world.

1.What is macro environment?

2.Why is macro environment a source of constraints and opportunities for an organization?

3.What is «the most influential element» of the environment?

4.What element can people influence?

TEXT 6

Read the following text. Define its main topic. Divide the text into logical parts. Give the title to the text and to each part. Explain the meanings of the words and phrases which have been highlighted.

The study of economics would be incomplete without an understanding of the nation’s role in the world economy. The study of the world economy is known as “international economics”. International economicsembraces two broad areas of interest : international tradeand international finance. World trade has been gaining increasing significance among nations. Why do nations trade? The answer is that nations have different quantities and qualities of economic resources and different ways of combining them. As a result, each country can produce certain goods more efficiently, or at relatively lower costs, than others. This idea can be stated somewhat differently. Imagine a world consisting of only two countries, each producing the same goods. Under such circumstances, the alternative or opportunity costto each country of producing more of one good is the amount of the second good that must be sacrificed. In view of this, which of the two goods should the countries produce? The answer is that each should specialize.When two parties engage, the sacrifice that each makes to obtain something from the other is called the “terms of trade”. For example, in order to buy a book, you might have had to give up five visits to the movies. Your terms of trade, therefore, are 5 movies = 1 book. The terms of tradefor a given transaction equal the number of units of goods that must be given up for one unit of goods received by each party to the transaction. Or in other words, terms of trade are defined as the ratio of the prices of its export commodity to the price of its import commodity. Despite the fact that trade is of great importance for each nation, all countries impose restrictions of one form or another to protect some of their domestic industries. The restrictions may be of several types: tariffs, import quotas, nontariff barriers. Tariffs are customs dutiesor taxes imposed by a government on the importation of a good. Tariffs may be (1) specific, in the form of a tax per unit of the commodity, or (2 ) ad valorem, based on the value of the commodity. Import quotas are laws that limit the number of units of a commodity that may be imported during a specified period. Nontariff barriers are any laws or regulations, other than tariffs, that nations impose in order to restrict imports. For instance, to “protect the health and safety” of their citizens, many countries establish higher standards of quality for various kinds of imported goods than for similar goods produced domestically.

Ex. 13. Insert the missing words given below.

Consumption, take account of, manager, state, environment, include, capital, macroeconomics, economy

In a simplistic … in which individuals or families produce primarily for their own …, economy-wide phenomena are of little importance. On the other hand, the complex financial … and production process that characterizes an advanced economy in the 1980s requires individual decision makers … both the current economic environment and forecasts of the economic environment. Decisions that require an understanding of the overall functioning of the economy … business decisions such as whether firm should sell bonds or stock to raise new … and individual decisions such as whether to change jobs or purchase a new home. Whether a person «wears the hat» of an entrepreneur, a business …, or a head of a household, it is important to be aware of the … of the economy as a whole. Specific factors that determine the advisability of these and other decisions are studied as part of … .

Ex. 14. Add an appropriate preposition to each of the following sentences where indicated.

1. This refers … the interactive effect of the parts of the system working together.

2. They decorated the house regardless … cost.

3. Economic forms range … the mixed private enterprise … completely controlled economies.

4. Everyone, irrespective …means or occupation, shall have an equal opportunity.

5. This function is basically performed … the price mechanism.

6. This simply means that demand … and supply … goods and services interact.

7. Gradual change is preferable …sudden, large-scale change.

8. Such a system affects … every link in the distribution chain.

9. They have to satisfy their wants and needs … the consumption of such products and services.

10. It has also made it easier …the same time.

11. The political system is coupled … the economic system.

12. Organization must have access .. modern technology.

13. All organizations depend … supply of labour force.

14. The economic system is concerned … the allocation of scarce resources.

15. We must try to cope … our problems.

16. The entrance door gives access … the living room.

Ex. 15. Open the brackets.

The Price System