UNIT 1 - Module I 11: Concepts in Economics OBJECTIVES: After Studying This Chapter, You Should Be Able To

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UNIT 1 Module I 11

UNIT ONE
CONCEPTS IN ECONOMICS
OBJ ECTIVES: After studying this chapter, you should be able to:
o understand the concepts of supply and demand and competition
o comprehend how supply and demand determine price in competitive markets
o know what a small business is and name the fields in which small business are concentrated
o describe the people who start small businesses, how some succeed, and why many fail
o understand the contribution of small businesses to economy
MODULE I
LEAD-IN
1. What forms of competition do you know?
2. What determines the price of a product?
3. Give a definition of the demand for a particular product.
4. Define the supply of a particular product.
SUPPLY, DEMAND, PRICE AND COMPETITION
A free-market system implies competition among sellers of products and resources. Economists
recognize four different degrees of competition, ranging from ideal competition to no competition at all.
These are pure competition, monopolistic competition, oligopoly and monopoly.
Pure (or perfect) competition is the market situation in which there are many buyers and sellers of a
product, and no single buyer or seller is powerful enough to affect the price of that product. Note that this
definition includes several important ideas. First, we are discussing the market for a single product. Second,
all sellers offer essentially the same product for sale; a buyer would be just as satisfied with seller A's wheat
and with that offered by seller B or seller Z. Third, all buyers and sellers know everything there is to know
about the market (including the prices that all sellers are asking for their wheat). And fourth, the market is
not affected by the actions of any one buyer or seller. In pure competition, sellers and buyers must accept the
going price. But who determines the price? Actually, everyone does. The price of each product is determined
by the actions of all buyers and sellers together, through the forces of supply and demand. It is this interaction
of buyers and sellers, working for their best interest, that Adam Smith referred to as the "invisible hand" of
competition. Let us see how it operates.
The supply of a particular product is the quantity of the product that producers are willing to sell at
each of various prices. Supply is thus a relationship between prices and the quantity offered by producers.
Business Issues
12
We expect the sellers to offer more of a product for sale at higher prices and to offer less of a product at lower
prices.
The demand for a particular product is the quantity that buyers are willing to purchase at each of
various prices. Demand is thus a relationship between prices and the quantities purchased by buyers. Buyers,
too, are usually rational, so we would expect them as a group to buy more of a product when its price is
low and to buy less of the product when its price is high. This is exactly what happens when the price of
fresh strawberries rises dramatically. People buy other fruit or do without and reduce their purchase of
strawberries. They begin to buy more fresh strawberries only when the prices drop.
Under pure competition, the market price of any product is the price at which the quantity demanded
is exactly equal to the quantity supplied.
In theory and in the real market, prices are affected by anything that affects supply and demand. The
demand for wheat, for example, might change if researchers discovered that it had very beneficial effects on
users health. Then more wheat would be demanded at every price. The supply of wheat might change if
new technology permitted the production of greater quantities of wheat from the same surface. In that case,
producers would be willing to supply more wheat at each price. Either of these changes would result in a
new market price. Other changes that can affect competitive prices are shifts in buyer tastes, the development
of new products that satisfy old needs and fluctuations in income due to inflation or recession.
Pure competition is only a theoretical concept. Some specific markets (such as auctions of farm products)
may come close, but no real market totally exhibits perfect competition. Many real market, however, are
examples of monopolistic competition. Monopolistic competition is a market situation in which there are
many buyers along with relatively many sellers who differentiate their product from the products of
competitors, by providing unique product features an attention-getting brand name, unique packing or
services such as free delivery or a lifetime warranty. Product differentiation is a fact of life for the producers
of many consumer goods, from soaps to clothing, or to personal computers. By differentiating its product
from all similar products, the producer obtains some limited control over the market price of its product.
An oligopoly is a market situation (or industry) in which there are few sellers. Generally, these sellers
are quite large, and sizable investments are required to enter into their market. Examples of oligopolistic
industries are the American automobile, industrial chemicals and oil refining industries.
Because there are few sellers in an oligopoly, each seller has considerable control over price. At the same
time, the market actions of each seller can have a strong effect on competitors sales. If one firm reduces its
price, the other firms in the industry usually do the same to retain their market shares. This usually results in
similar prices for similar products. In the absence of much price competition, product differentiation becomes
the major competitive weapon.
A monopoly is a market (or industry) with only one seller. Because only one firm is the supplier of a
product, it has complete control over price. However, no firm can set its price at some astronomical figure
just because there is no competition; the firm would soon find that it had no sales revenue. Instead, a firm in
a monopoly position must consider the demand for its utilities, such as we find in the electric power distribution.
They are permitted to exist because the public interest is best served by their existence, but they operate
under the scrutiny and control of various state and federal agencies.
UNIT 1 Module I 13
VOCABULARY
auction n. =licita]ie
sales revenue =venit ob]inut din v>nz\ ri/
cifr\ de afaceri
public utilities =servicii utilitare
scrutiny =(aici) supraveghere; privire
shift =schimbare; modificare
to operate =a func]iona
to purchase =a achizi]iona
COMPREHENSION I
Answer the following questions on the text:
1. Why is pure competition only a theoretical concept?
2. What are the implications of monopolistic competition on the various sellers?
3. How do the sellers behave in an oligopoly?
4. What did Adam Smith call the invisible hand of competition?
5. Why isnt it possible for the companies in a monopoly to set their prices at high levels?
PRACTICE
FOCUS ON LANGUAGE
2.1. Fill in the following text with a, the, or the zero article, where appropriate:
Riddell Inc., 1 sporting goods company controls 65 percent of 2 market for 3 football
helmets. One reason for 4 size of its market share is that 5 Riddell executives convinced 6
officials of the National Football League to adopt 7 use of their companys helmets for NFL players.
Kodak currently controls 80 percent of 8 U.S. consumer film market and 50 percent of 9
global consumer film market. When you consider that one share point of 10 global market is equal to
about $40 million in revenues, then you begin to realize how successful 11 competitor Kodak really is.
2.2. Choose the most suitable phrase
a. She had to go. Shes in a hurry/in hurry.
b. I think I prefer the other play on the whole/on whole.
c. J ack was in pain/in a pain after he twisted his wrist.
d. Margaret recovered from the accident and is now out of danger/out of the danger.
e. The teacher was under an impression/under the impression that I had not learned the lesson.
f. Excuse me, but you are in the way/in a way.
g. How many hours do you work, on average/on the average, every week?
2.3. Read the following sentences, where each article or the absence of the article is numbered.
Then place each number in the table according to the particular use of each article.
a. Harris and Co (1) make car components (2). The (3) company has an (4) agent in New York.
b. A (5) delay occurred when a (6) document was lost. The (7) delay almost resulted in the (8) customer
cancelling the (9) order. An (10) internal enquiry found that a (11) computer error caused the (12)
problem.
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14
c. Information (13) on the (14) history of Bucharest (15) can be found at the (16) Tourist Office.
Zero article
Proper name
Indefinite article
Countable, first mention
Definite article
Second mention
Zero article
Plural countable nouns
General meaning
Definite article
A specific meaning is clear
Zero article
Uncountable, first mention
COMPREHENSION II
3.1. Answer the following questions on the text below:
a. Why has it become a matter of survival for American firms to become more competitive?
b. Which are the methods that companies can use in order to enhance productivity?
c. What effects do these methods have on the employees in the respective companies?
Strengthening Competitiveness through Quality Improvement
Years ago, Made in the U.S.A. meant high quality, unsurpassed technology, and the worlds most
efficient productivity. Now, foreign companies are vigorously challenging American firms. Over 70 percent
of U.S. products compete with foreign goods, and this percentage will likely grow. Americans eagerly
purchase German cars, Japanese electronic equipment, Russian vodka, and Italian fashion accessories.
In their struggleto be more competitive, U. S. companies have cut costs, improved efficiency, and
have begun to market products and services more aggressively. Technological improvements, restructuring
and salary freezing have turned many U.S. firms into leaner, meaner machines.
Many business analysts rank poor product quality as the greatest enemy of U.S. productivity and
competitiveness. Improved quality, more than anything else, enables a corporation to reduce costs and
enhance profits. A typical American factory invests 20 to 25 percent of its entire operating costs on discovering
and then fixing mistakes. Almost one quarter of all factory workers must rework products that were not
made correctly the first time. The cost of warranties and replacing defective merchandiseis enormous. It
has become a matter of survival for some U.S. companies: they must improve product quality or close the
company doors.
3.2. Provide synonyms for the words underlined in the text above.
Purchase
Struggle
Enable
Enhance
Merchandise
3.3. Fill each blank with the correct word partnership from the list below.Use each partnership
once only.
Put off unpleasant tasks Set a time limit Separate folders
Delegate routine tasks Member of staff Set priorities
Unnecessary paperwork Have a meeting Skip over
Time-consuming way Lose concentration Pick out
UNIT 1 Module I 15
Here are ten key ways to improve efficiency:
Avoid 1 Be ruthless. Are all those statistics and memos really necessary?
Essential paperwork should be organised into 2 so that you and other 3 can find what you
want quickly.
4 Decide which of your tasks are the most important and deal with them first.
Never 5 It is best to deal with them as soon as possible or you will keep thinking about them and
6
Know when to stop. If you are too much of a perfectionist, you will concentrate on one task and not
leave enough time to do the other.
7 Dont try to do everything yourself. Make sure, however, that the subordinate is competent
enough to carry out the task.
Cut meetings to a minimum. Ask yourself if a meeting is essential or if the issues could be dealt with
in a less 8
If you must 9, restrict it to those whose presence is essential. Dont waste peoples time.
At the beginning of a meeting 10 and stick to it. This should concentrate everybodys mind and
avoid unnecessary anecdotes.
Learn the art of speed-reading. 11 the non-essential text and 12 the message, the important
facts.
Translate into English:
Productivitatea ridicat\ este legat\ [i de implicarea angaja]ilor. Muncitorii mai motiva]i realizez\
produse [i ofer\ servicii mai bune dec>t cei apatici. Managerii din Statele Unite au descoperit c\ , dac\
lucr\torilor li se cere p\rerea, eficien]a cre[te.
Firmele din SUA care concureaz\ cu firme str\ine, lupt\ pentru supravie]uire. Exact la fel cum firmele
americane `ncearc\ s\-[i `mbun\t\]easc\ produsele [i productivitatea [i s\ reduc\ costurile, to]i concuren]ii
lor str\ini fac acela[i lucru. Cl\direa unor firme mai bune, mai puternice, este un proces continuu. Firmele
americane nu se pot mul]umi cu realiz\rile lor din trecut. Ele vor trebui s\ lupte `n continuare pentru a-[i
men]ine pozi]ia pe pia]a interna]ional\.
KEY
LEAD-IN
1. The four types of competition are: pure competition, monopolistic competition, oligopoly and
monopoly.
2. The price of each product is determined by the actions of all buyers and sellers together, through
the forces of supply and demand.
3. The demand is a relationship between prices and the quantities purchased by buyers.
4. The supply is the relationship between prices and the quantities offered by producers.
Business Issues
16
FOCUS ON LANGUAGE
2.1. 1-a; 2-the; 3-zero; 4-the; 5-zero; 6-zero; 7-the; 8-the; 9-the; 10-the; 11-a.
2.2. a) in a hurry; b) on the whole; c) in pain; d) out of danger; e) under the impression; f) in the way;
g) on the average.
2.3.
Zero article
Proper name
Indefinite article
Countable, first mention
Definite article
Second mention
1, 15 4, 5, 6, 10, 11 3, 7, 12
Zero article
Plural countable nouns
General meaning
Definite article
A specific meaning is clear
Zero article
Uncountable, first mention
2 8, 9, 14, 16 13
3.3.1. Unnecessary paperwork; 2. Separate folders; 3. Members of staff; 4. Set priorities; 5. Put off
unpleasant tasks; 6. Lose concentration; 7. Delegate routine tasks; 8. Time-consuming way; 9. Have a meeting;
10. Set a time limit; 11. Skip over; 12. Pick out.
UNIT 1 Module II 17
UNIT ONE
MODULE II
INTERNATIONAL BUSINESS CONCEPTS
LEAD-IN
a. Can you name any of the crises you have heard of this year?
b. Where in the world have most crises emerged?
c. Discuss the connection between currency appreciation/depreciation and exports.
& Read the title and make a list with what you expect to find in the article
A Guide to World Crises
The World in 1998 a division of The Economist asked J effrey Sachs, professor of International
Trade at Harvard University, to assess the dangers lurking in emerging markets. Here is a summary of his
answer.
More crises in the worlds rapidly growing emerging markets are likely in the future. Consider the past.
There was the currency crash in Mexico in 1994, a bank run in Argentina in 1995, a banking and exchange-
rate collapse in Bulgaria in 1996, a currency crisis in the Czech Republic in the first half of 1997 and a run on
South-East Asian currency and stockmarkets in the second half of 1997. Some rules can be drawn from these
recent hiccups that could be handy for the year ahead.
Emerging-market problems come in three variants:
Fiscal crises, such as the state-sector bankruptcies which lay behind the debt crisis of the 1980s
in developing countries;
Exchange-rate crises, such as the collapse of overvalued exchange rates in Mexico in late
1994;
Banking crises, such as the collapse of poorly supervised banks and quasi-banks in Bulgaria in
1996 and Thailand in 1996.
In recent years, banking and exchange-rate problems have caused greater havoc than fiscal problems.
This was not true in the earlier debt crisis of the 1980s; Mexico (in 1994), Argentina (in 1995), the Czech
Republic and Thailand (in 1997) were all to boast the fiscal policy was under control, so there was little
sovereign default risk. International investors took note, and plied these countries with a vast flow of funds,
both in absolute dollar terms and relative to the size of their rather small economies. The markets forgot a
simple economic lesson: countries with healthy fiscal positions can succumb to overvalued currencies or weak
banks.
So watch out for three inter-related phenomena to set the warning bells going in 1998. The first, most
evidently, is overvalued real exchange rates. In South-East Asia, for example, the Thai baht, Malaysian
ringgit and Philippine peso were all in effect pegged to the American dollar. As the dollar appreciated
sharply compared with the yen and European currencies, and as the Chinese yuan was depreciated in 1994,
Business Issues
18
the South-East Asian countries inadvertently lost competitiveness. By 1996, South-East Asias export growth
had weakened considerably. In 1998 there is a risk of this happening in Latin America and Eastern Europe.
The second phenomenon is banking deregulation. Countries in South-East Asia, Central Europe and
Latin America have privatised their banking sectors. Quite rightly, they have eliminated capital controls,
removed interest-rate ceilings and, in many cases, opened the banking markets to competition from non-
banking institutions. These steps, in principle, should raise efficiency and speed up economic integration
into global markets. In practice, however, they also open the economy to various new risks, including
banking fraud, excessive risk-taking by under-capitalised banks and bank insolvency.
The third phenomenon is closely related. Financial deregulation has increased the dollarisation of
these national economies, especially their banking systems.
International institutions such as the Bank for International Settlements and the World Bank need to
do much more to help the regulatory environment of the emerging markets. The consequences of that failure
are clear.
The broadest lesson for 1998 is positive, however. The emerging economies are determined to stick to
the path of global integration. No recent crisis has led a country to withdraw from international trade and
finance. Global integration is still proceeding apace. There is no better news for the worlds future wealth.
(The World in 1998)
VOCABULARY
bankruptcy =faliment
emerging markets =noi pie]e, pie]e nou ap\rute
currency crash =pr\bu[irea monedei
bank run =retragere masiv\ a depunerilor dintr-
o banc\
over-valued exchange rate =curs valutar
supraevaluat
havoc =haos
sovereign default risk =risc de ]ar\
(incapacitatea guvernului de a-[i achita datoriile
externe)
pegged to the American dollar =determinate `n
func]ie de dolarul american
appreciation/depreciation =apreciere/depreciere ( a
unei monede)
banking fraud =fraud\ bancar\
interest-rate ceiling =plafonul la care se fixeaz\
rata dob>nzii
bank insolvency =insolvabilitate bancar\
lender of last resort =`mprumut\tor de ultim\
instan]\
deregulation =descentralizare, liberalizare a unui
sector economic
to mint =a bate moned\
to take off =a luat startul, a se declan[a
to cut the cost =a reduce costul
fee =onorariu, comision
COMPREHENSION I
1.1. Read the text and answer the following questions:
a. Was the article about what you expected?
b. Did you find the article easy to understand? Why (not)?
c. List three ideas that you remember without referring back to the text. Do any of them coincide with
your predictions?
UNIT 1 Module II 19
PRACTICE I
2.1. Select and discuss all the contexts in which the following words appear:
Crises Currency Bank(s)/banking
e.g. fiscal crises e.g. overvalued currencies e.g. banking sector, weak banks
2.2. Match the concepts with the definition:
a. bank run 1. Freeing an industry, an organization etc. from government control
b. sovereign default risk 2. A function of the central bank of a country involving the rescue
of weak banks
c. deregulation 3. A situation in which a government fails to honour business
obligations, loans because of an unstable national policy
d. lender of last resort 4. A rush to make massive withdrawals of money
2.3. Read the following fragments and decide in which fragment and where exactly you can
insert the sentences numbered a-d:
1. The second phenomenon is banking deregulation. Countries in South-East Asia, Central Europe
and Latin America have privatised their banking sectors. They have removed interest-rate ceilings
and, in many cases, opened the banking markets to competition from non-banking institutions.
2. So watch out for three inter-related phenomena to set the warning bells going in 1998. In
South-East Asia, for example, the Thai baht, Malaysian ringgit and Philippine peso were all in
effect pegged to the American dollar. As the dollar appreciated sharply compared with the yen
and European currencies, the Sout-East Asian countries inadvertently lost competitiveness.
3. International institutions such as the Bank for International Settlements and the World Bank
need to do much more to help the regulatory environment of the emerging markets. The
consequences of that failure are clear.
a. They have not done enough to promote proper banking laws, transparency of transaction or
decent supervision;
b. And as the Chinese yuan was depreciated in 1994;
c. Quite rightly, they have eliminated capital controls;
d. The first, most evidently, is overvalued real exchange rates.
FOCUS ON LANGUAGE
PRACTICE II
3.1. Find the plural of these nouns which appear in the text:
crisis
phenomenon
Do you know other nouns with a similar way of forming the plural?
3.2. Discuss the change in meaning occuring in the plural form of the following two nouns:
security liability
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3.3. Indetify the countable (C) and uncountable (U) nouns in the list below and write C or U
according to each case:
1. regulation 2. confidence 3. weakness 4. news
5. transparency 6. insolvency 7. supervision 8. deregulation
9. depreciation 10. liabilities 11. money 12. assets
3.4. Make sentences using the prompts below:
MODEL: premises/build/1998
The premises were built in 1998.
1. Economics/be/interesting.
2. Where/be headquarters?
3. What/be/trouble/with equipment?
4. Funds/be/insufficient.
5. Your/advice/last week/be/good.
6. University/receive/funds/from/government.
7. United States/consist of/50 states.
COMPREHENSION II
& Read the text below and comment on the frequency of using the various forms of money
mentioned in the text.
Moneys electronic future
Money has taken many forms, from coins, first minted on the Aegean shore, then banknotes and
cheques, and most recently plastic cards. This year our relationship with money will take another step
forward. Electronic money will start to take off, providing the ultimate proof that a currencys form matters
far less than its function.
Big companies have long done business with each other electronically and banks are already testing
this idea across the world, from Sweden to South Africa, and America to Australia.
The revolution will be led by the smart or stored value card. Like a credit card in appearance, the
smart card contains a microchip that stores digital tokens which can be exchanged for goods just like tangible
cards.
The main reason banks are determined to make this idea work is that they smell profit in it: electronic-
cash cards cut the cost of handling physical currency and they can earn a small fee from every transaction,
whereas purchase with notes coins bring them nothing.
Translate into English:
a. ~n principiu, liberalizarea din domeniul bancar ar trebui s\ m\reasc\ eficien]a [i s\ accelereze integrarea
economic\ pe pie]ele globale. Cu toate acestea, `n practic\, ea expune economia unor noi riscuri, precum
frauda bancar\ [i insolvabilitatea.
b. ~n ciuda crizelor cu care se confrunt\ anul acesta, noile pie]e sunt hot\r>te s\ r\m>n\ pe drumul integr\rii
globale. Crizele recente nu au determinat retragerea vreunei ]\ri de pe scena finan]elor interna]ionale.
Nici nu se poate o veste mai bun\ pentru bun\starea mondial\.
UNIT 1 Module II 21
KEY
LEAD-IN QUESTIONS
In case of domestic currency depreciation the manufacturing costs are higher and this brings about a
loss in competitiveness in the export activities.
2.2. a. 4; b. 3; c. 1; d. 2;
2.3. a-3 (after markets); b-2 (after currencies); c-1 (after sectors); d-2 (after 1998).
3.2. securities: titluri de valoare; liabilities: pasiv, crean]e.
3.3. regulation C supervision U confidence U deregulation C
weakness C depreciation C news U liabilities C
transparency U money U insolvency U asseets C
3.4.
1. Economics is interesting.
2. Where are the headquarters?
3. What is the trouble with the equipment?
4. The funds are insufficient.
5. Your advice last week was good.
6. The university receives funds from the government.
7. The United States consists of 50 states.
Business Issues
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UNIT ONE
MODULE III
EUROPEAN ISSUES
LEAD-IN
1. What is the name of the current President of the European Union?
2. Which country currently holds the presidency of the Eu?
3. In which European city is the European Parliament?
4. In which European capital is the EBRD (European Bank for Reconstruction and Development)
located?
The European Union
The treaty of Romein 1957 established the European Economic Community (now referred to as the
European Union). It arose from the success of the European Coal and Steel Community (ECSC) which
sought to promote cooperation between Coal and Steel companies in Europe. This programme succeeded in
reducing tariffs and quotas in the coal and steel markets between the participating countries.
Following the treaty of Rome, the EU became a reality on January 1, 1958. The founder members of the
EU were France, West Germany, Italy and the Benelux countries (Belgium, the Netherlands and Luxembourg).
It remained in this form until Britain, Ireland and Denmark joined in 1972. The Union was extended further by
the admission of Greece in 1981 and then Spain and Portugal in 1986.
The objectives of the EU have changed over the years. Initially, the aims were to abolish all internal
quotas and tariffs and to impose a common external tariff on countries outside the Union. These measures
meant that as far as imports and exports went, the Union acted as one country.
Components of the European Union
The parallel of the Union acting as a single nation now extends beyond the preliminary objectives. It
has its own executive, legislature, secretariat and judiciary.
The executive of the EU is made up of The Council of Ministers. This is composed of elected politicians
from each of the member countries. Hence, when the Council of Ministers is considering finance matters, it
will be made up of all of the Finance Ministers (in the UK, this is the Chancellor of the Exchequer). The
Heads of States meet at the Council of Ministers when particulary important items are under consideration.
The Presidency of the Council rotates between the twelve members of the Union every six months. Under this
system, the head of state of the country which holds the presidency also assumes the title President of the
Council of Ministers of the European Union. Hence, when the UK held the presidency in the first six months
of 1993, Prime Minister Major also held the office of President of the Council of Ministers of the European
Union. As in the case of domestic executive, the Council of Ministers is the highest authority in the EU. It must
endorse and authorise EU policy and any applications for membership or significant change.
The secretariat or Administration is based in Brussels and is called the European Commission. Unlike
UNIT 1 Module III 23
the Council of Ministers, the employees of the Commission are not elected they are the European equivalent
of civil servants. As well as administering the various arms of the European state, the Commission is also
responsible for drafting and proposing legislation for the Council of Miniters to vote on and approve, amend
or reject. The Commission is controlled by a President and a number of Commissioners. The larger countries
send two Commissioners to Brussels and the smaller ones, just one.
The legislature is in Strasbourg, France and is called the European Parliament. This is composed of
over 500 elected Members of the European Parliament (MEPs). Like in the UK, MEPs sit in the Parliament
according to their political leanings rather than nationality. Because the EU is not a state as such, the Parliament
does not assume the same degree of power that a national Parliament does. The number or MEPs from each
member country depends upon its size. The UK, Germany, France and Italy each send over 80 MEPs to
Strasbourg. whereas Luxembourg sends just 6. Because the parliament has little authority over the affairs of
the EU (it does not control the finance budget or key policy areas), its role has been criticised. Critics say that
it is expensive to run and superfluous to requirements as the EU stands in its present form. However, the longer
term plans for the EU include closer links between the member countries and this will involve a more proeminent
role for Strasbourg.
The European judiciary is the European Court of J ustice. It is presided over by 13 judges (at least one
from each country) and an overall President, elected from among the judges.
VOCABULARY
to seek-sought-sought =a avea inten]ia, a c\ uta
to abolish =a elimina
Chancellor of the Exchequer (UK) =Ministrul
de Finan]e
to hold the presidency =a de]ine pre[edin]ia
to hold the office of =a de]ine func]ia de
domestic executive =guvernul intern (al unei
]\ ri)
to endorse the policy =a sprijini, a aproba politica
to draft (legislation) =a face un proiect de lege
to amend =a amenda
to reject =a respinge
to run =a conduce
to reshape =a remodela
to lurk =a p>ndi
to sink =a contopi (aici)
COMPREHENSION I
1.1. Answer the following questions:
1. What was the initial aim of the EEC?
2. Are members of the European Commission elected?
3. In what way is the number of MEPs from each member country decided?
PRACTICE I
2.1. Complete the table below with adequate information on each component of the EU:
Component 1.
Location 2.
Number of members (elected or no) 3.
Role 4.
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24
2.2. Decide whether the following statements are true or false:
1. One of the first goals of the EU was to impose a common external tariff on countries which do
not belong to the Union.
2. Ireland and Britain were among the founder members of the EU.
3. The head of state of the country holding the presidency automatically becomes President of the
Council of Ministers of the European Union.
4. Each country sends one Commissioner to Brussels, where the Administration is based.
5. Criticisms regarding the European Parliament have focused on the way it handles problems of
finance and key policy areas.
2.3. Put each of the following word or phrases in its correct place below. The text will help you.
rotates authorise elected
authority abolish as far as
domestic assume
Initially, the aims of the EU were to a) all internal quotas and tariffs. These measures meant that b)
imports and exports went, the Union acted as one country.
The Council of Ministers is composed of c) politicians from each of the member countries. The
Presidency of the Council d) between the twelve members of the Union every six months.
As in the case of the e) executive, the Council of Ministers is the highest f) in the EU. It must
endorse and g) EU policy and any applications for membership.
Because the EU is not a state as such, the Parliament does not h) the same degree of power that a
national Parliament does.
FOCUS ON LANGUAGE
PRACTICE II
3.1. In this exercise you have to join two nouns. Sometimes you have to use an apostrophe (),
with or without s. Sometimes you have to use of
a. the new dean/our faculty
b. the ground floor/the building
c. the economic policy/the government
d. the name/the colleague I saw you with yersterday
e. the result/the competition
f. the development/the county
g. the prices/the new products
3.2. Each of the sentences below contains a genitive using of. If it is grammatically correct to do
so, change it to a construction with an apostrophe.
a. The workforce of the company will be reduced.
b. The meeting of the shareholders is scheduled to take place next month.
c. The Chairman of the Board said that he had no comment to make.
d. The results of the pharmaceutical group Hambro are outstanding.
UNIT 1 Module III 25
e. The decision of the Board to raise the dividend was against the advice of the auditor.
3.3. J oin the two halves to form sentences and fill in the blanks with:
Anybody, nobody, sometimes, any, anyoane
I give presentations
Does have anything
If has any questions
I didnt have problems
The meeting was longer
to say on this?
than would have wanted
coming to see you
lets move to the next item on the agenda
if I am invited to
3.4. Read the text below and fill in the blanks with the appropriate pronouns. Choose from the
box:
All
a few
some
they
anybody
our
their
most
itself
myself
everybody
somebody
them
Every day in Britain more than 24 million people go to work 1 of these peaople work in offices,
but most of them work in factories. Of course, there are 2 who can afford not to work and, unfortunately,
there are 3 who cant find work. But why do people work? There are several reasons, but the simple
answer is that they all need to earn an income. But for most of 4, this is not an end in 5 With this
money they can buy the goods and services that 6 needs. At the same time, through work 7 of them
produce the goods and services needed by the population. In this way they are helping to ensure that a high
standard of living is maintained for the community as a whole.
COMPREHENSION II
4.1. Read the text below and comment on the effects of the Euro.
The birth of the euro on J anuary 1
st
is only the first of several events to reshape the landscape of the
European Union. The designers of Europes monetary union seem confident that no catastrophic surprises
lurk among the legalities or the practicalities of the new system. If all goes according to plan, 11 of the EUs
15 countries will sink their national currencies into the euro on Janyary 1
st
but citizens in most of them will
notice little change overnight. Notes and coins in national design, denominated in national currencies, will
continue to circulate for at least three years. Countries will not introduce new Euro notes and coins
generally until 2002.
Translate into English:
Parlamentul European este format din peste 500 de parlamentari ale[i `n func]ie de orient\rile lor
politice. Deoarece Uniunea European\ nu are statut propriu-zis de stat, Parlamentul nu-[i asum\ acela[i
grad de autoritate ca un parlament intern. Num\rul parlamentarilor din fiecare ]ar\ depinde de m\rimea ]\rii
respective: astfel, ]\ ri ca Fran]a, Germania, Italia pot trimite chiar peste 80 de parlamentari, `n timp ce
Luxemburgul are doar 6. Parlamentul `[i va m\ri rolul pe viitor, pe msur\ ce se vor dezvolta leg\turi mai
apropiate `ntre ]\rile membre.
Business Issues
26
KEY
2.2. a-T; b-T; c-T; d-F; e-T.
2.3. a. abolish; b. as far as; c. elected; d. rotates; e. domestic; f. authority; g. authorise; h. assume.
3.1.
a. the new dean of our faculty (or: the facultys new dean)
b. the ground floor of the building
c. the economic policy or the government (or: the governments economic policy)
d. the name of the colleague I saw you with yersterday
e. the result of the competition
f. the development of the country
g. the prices of the new products
3.2.
a. The companys workforce will be reduced.
b. The shareholds meeting is scheduled to take place next month.
c. The Chairman of the Board said that he had no comments to make.
d. The pharmaceutical group Hambros results are outstanding.
e. The Boards decision to raise the dividends was against the advice of the auditor.
3.3.
a. I sometimes give presentations if I am invited to.
b. Does anybody have anything to say on this?
c. If nobody has any questions, lets move to the next item on the agenda.
d. I didnt have any problems coming to see you.
e. The meeting was longer than anyone/anybody would have wanted.
3.4.
1. Some; 2. A few; 3. Some; 4. Them; 5. Itself; 6. Everybody; 7. Most.

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