Part 2 unit 1

I. Fill in the blanks using the following words:

1. installments; 2. security; 3. amount; 4. money; 5. paid; 6. statement; 7.
agreement; 8. default.

When a person borrows a) ____________ or sells goods on credit, the lender

wants a guarantee to cover the loan. If the borrower does not pay back the
borrowed b) ___________, the lender may sell the goods which were given to him
as a guarantee and may also use the guarantee amount in order to cover the loan.
Such a contract is called a "loan c) __________". On the basis of this contract, the
borrower obliges himself to pay back the loan at a certain date, or in several equal
d) _____________ at periods established throughout a month or a year. If the
borrower does not pay back at required date, makes any false e) _____________
to lender, dies, becomes insolvent or terminates his business by all reason, the
payment of the loan is "accelerated" and the borrower or his successors must pay
immediately the whole amount which remained unpaid. When a f) ____________
and loan agreement is drawn up, the identity of the parts, the total amount of the
loan, the interest rate and the date the loan must be paid back must be taken into
consideration. The contract will stipulate the description of the goods which secures
the loan, and the date on which the installment is to be g) __________ back. It will
also mention the lender's obligation not to sell or destroy the good and the right of
the lender in case of the borrower's h) ___________ on his obligations.
II. Find the place of the missing words (endorsed; details; assist; payment;
invoices; redeem, bad-debts) in the following
Object of Agreement
The Agent is willing to 1. ................ the counter value of his shipments to
his importers in Jamaica as simple as safe as possible and the Factor will be in a
position to 2 ................. him for this purpose. This factoring Agreement makes its
aim to effectivelly collect the 3. ........ .......... incurred by the Jamaican importers.
The Agent shall remit the bad debts monthly using detailed memoranda
carrying 4. .................. about the impoter (name and address, the object, value,
time and and terms of payment of the debt) as to the Form enclosed. The detailed
memoranda shall be accompanied by the export 5. .............., in copies and by the
time of sight Bs/E or by any other financial documents signed by the importer to
the Agent's order and 6. ................. by the latter to the Factor's instructions and
enclosed with this Agreement should provide for 7. .................. to be made either
in favour of the Factor or in favour of a third named by the latter.
III. Translate into English:
A) Deşi nu poate fi definit exact, leasing-ul operaţional este caracterizat de
unele trăsături importante:
- echipamentele achiziţionate în leasing operaţional nu
sunt de regulă amortizate integral pe perioada
 contractului. De aceea, plăţile prevăzute în contractul
de leasing nu sunt suficiente pentru ca locatorul să
recupereze întregul cost al bunului care face obiectul
contractului. Aceasta se întâmplă deoarece durata
contractului de leasing operaţional e de regulă mai
mică decât durata de viaţă a bunului. Astfel, locatorul
se aşteaptă să recupereze costurile activului prin
reânoirea contractului de leasing sau prin vânzarea
bunului la valoarea lui reziduală. (residual value)
- caracterisitica cea mai interesantă a leasing-ului
operaţional este opţiunea de anulare. Utilizatorul are
dreptul de anulare a contractului înainte de data
expirării acestuia. In acest caz utilizatorul trebuie să
înapoieze echipamentul locatorului. Valoarea clauzei de
anulare depinde de valoarea activului care trebuie să
fie sub valoarea plăţilor prevăzute în contractul de
leasing.

B) Contractul este un acord, o înţelegere între două sau mai multe părţi
contractante, sub formă scrisă sau verbală. De obicei, pentru aceste contracte
societăţile, instituţiile, organizaţiile au pregătite contracte tip pe care le
completează atunci când este nevoie. Unele clauze, cu variaţii nesemnificative de
conţinut, se găsesc în toate tipurile de contracte, cum ar fi: obiectul contractului,
notificări, forţă majoră, cesiunea, încetarea contractului. Convenţiile scrise permit
determinarea clară a obligaţiile şi drepturile părţilor. Dacă acestea nu pot ajunge la
consens deplin în ceea ce priveşte fiecare termen în contract, aceasta nu trebuie să
împiedice semnarea contractului totuşi atunci când majoritatea condiţiilor au fost
îndeplinite şi tranzacţia este destul de importantă.
Orice notificare/comunicare ulterioară semnării contractului devine valabilă
pentru înţelegerea între părţi numai dacă va fi transmisă prin scrisoare, fax sau
telex confirmat. Aceleaşi comunicări nu pot deveni parte integrantă din contract
dacă ele nu capătă o formă scrisă şi confirmată de către cealaltă parte contractantă.

Part 2 unit 2

EXERCISES
I. Fill in the blanks the missing words (hereinafter; whereby; registered) in
the following preamble of the:

Franchising Agreement
Concluded today ... between undersigned
 Black and White SA, the Romanian branch of Black and White, residing at
C.A. Rosetti Square no 430, district 1, Bucharest, 1. ............... in the
Companies Registrar under no. J/34/4002/2000 and represented by Mr. Josph
Stein, in capacity of Managing Director 2. ................ referred to as the
Franchiser and
SC ProdService SRL, residing at Tache Ionescu Blvd. District 4, Bucharest,
Romania, registered in the Companies Registrar under no J/36/2090/1998 and
represented by Mr. Radu Gheorghe, in capacity of Director, hereinafter referred
to as the Franchisee, 3. ................ have agreed the following:
II. Find the matches of the following contract partners in the contracts:
Sales contract seller
Distributorship contract distributor
Contract of agency principal
Commission agreement seller
consigner consignee
Contract of lease lessee
Loan agreement borrower
franchiser franchisee
Credit Card Use to Company
Purchase Goods and
Services
factor adherent

III. Bear in mind the following specific words and expressions:

Submission of a sample; inferior quality; quantity is ascertained; conformity to
quality; meet the requirements/needs of; quality stipulations; to provide
customized assistance; in the name of; on behalf of; for the account of;
specification; up to standards; below standards; undershipment; overshipment; to
relegate smth to.
IV. Find the place of the missing words in the text: command; amounts;
goods; want; supply; unlimited; necessarily; value
A 1. ............ is significant in economics only when a person is prepared to
give up something in order to satisfy it. As the strength of the different wants
varies, so will the 2. ............... which people are willing to give up in order to
satisfy them. We can say, in other words, that people are willing to give up
different amounts for different goods because these goods have a different 3.
............. to them. Value means the rate at which a particular good or service will
exchange for other 4. ............... . It is important to note, however, that while to
have value a good must be capable of satisfying a want, a good which satisfies a
want need not 5. ................... have value; but, in normal circumstances, the 6.
............... of it is so great, that nobody will give anything in exchange for it.
Because it has no power to 7. ............... other goods in exchange, it has, in
economics, no value. We call such goods "free goods". All other goods are "scarce
goods", implying, in economics, no more than that their supply is not 8.
................... .
V. Supply the missing prepositions:
A perfectly competitive industry, 1. ...... which all firms and consumers
believe that their own actions have no effect 2. ....... market price, must have
many buyers and many sellers. Even if all firms 3. ...... an industry made
homogenous or identical goods each firm might be able to have some discretion 4.
......... the price it charged if the buyers have imperfect information 5. ........... the
quality or characteristics of the products of different firms in the industry. If we are
not to regard each firm in a competitive industry as being unable to affect the price
6. .......... which it sells its output, it is not sufficient that all firms are selling a
homogenous product. We must also assume that buyers have almost perfect
information 7. .......... the characteristics of the products being sold so that they
know the products 8. ........ different firms in a competitive industry really are
identical.
VI. Translate into English:
Mostra este o parte reprezentativă de produs, de dimensiuni
reduse, fără utilizări practice sau un exemplar complet al acesteia reprezentând
obiectul contractului. Mostra poate fi şi ofertă având funcţia de informare sau de
comandă. Marfa livrată de vânzător trebuie să aibe calităţile mostrei. Cumpărătorul
poate contesta calitatea mărfii dacă aceasta nu corespunde mostrei având dreptul
la despăgubiri sau la reduceri de preţ.
Conform clauzei Rye Terms cumpărătorul primeşte marfa
livrată în starea în care se află la sosire. El poate solicita însă o reducere de preţ
dacă aceasta nu este într-stare convenabilă.
Clauza Sound delivered permite cumpărătorului de a refuza
marfa care ajunge la destinaţie în condiţii necorespunzătoare. Refuzul mărfii
produce efecte numai dacă vânzătorul este anunţat în termenul stipulat în contract.
Part 2 unit 3

EXERCISES:
I. Fill in the blanks the missing words in the Rights and Obligations Clause
in a Factoring Contract: outstanding; control; debt; should; factor; complaints;
entitled; amount; documents; whether
4.1. The Adherent binds himself to a) ............ the collection of his
outstanding debts to the Factor or to any person appointed by the latter, stipulating
that the agreements concluded with his partners there is no forbiddance in factoring
his bad debt in favour of the Factor.
The Adherent accepts the credit b). ............... of his bad debts to be in the
hands of the Factor which actually is the object of the present contract. He also
undertakes to make all c) ..................... and evidence available to the Factor for
factoring the bad debts.
The Adherent is bound to immediately convey any importer's request to the
Factor to postpone or prorogate any d)................. debt. It is the Factor to decide
e) ................... payment is to be postponed or the outstanding debt prorogated.
4.2. In the event the Adherent collects the outstanding debt to which the
Factor is subrogated, he is deemed to collect the f) .............. for the Factor's
account at the latter's depositor. The Adherent must immediately credit the Factor's
account with the respective g) ................. , failing which, the Factor may write the
relevant amount off the sum of the further outstanding debts which are to be
transferred to the Adherent account.
4.3. In the event the importers reject paying out the bad debts because of
complaints about quantity or quality defaults of the goods supplied by the
Adherent, the latter is bound to handle the h) .................... within 30 days so that
the Factor might collect the bad debts as good money.
4.4 The Factor is i) ................. entitled to claim from the Adherent both the
outstanding debts and the bad debts the importer rejects to pay.
4.5. j) .................... the bad debts fail to be collected because of the
Adherent, upon the signature of the Agreement, the Adherent is bound to send to
the Factor a Bank Letter Guarantee of 120% of the value of the bad debt to be
further utilized by the Factor. Any delay in conveying such a Bank Letter of
Guarantee brings about gaps in meeting the terms of the Agreement.
II. Translate into English:
Art. 4. Drepturile şi obligaţiile Francisorului
4.1. In calitatea sa de titular al dreptului de proprietate asupra know-how,
Francizoul poate retrage Beneficiarului dreptul de utilizare acordat în cazul
neîndeplinirii oricăreia dintre obligaţiile ce îi revin, conform prezentului contract. In
astfel de cazuri Francizorul îl va aviza în prealabil, în scris, pe Beneficiar,
acordându-i un temen maxim de 30 zile pentru remedierea neajunsurilor
constatate. Dacă în decursul acestui termen, Beneficiarul nu corectează situaţia,
Francizorul poate rezilia contractrul conform procedurii menţionate la art. 12.
4.2. Francizorul are dreptul de a solicita Beneficiarului încetarea preparării şi
distribuirii anumitor produse, dacă acest lucru se justifică prin condiţiile economice,
sanitare sau de altă natură necorespunzătoare.
4.3. In astfel de cazuri Benenficiarul va fi despăgubit pentru pierderile
suferite pentru produsele din stoc, primind de la Francizor contravaloarea acestor
produse (mai puţin pierderile din profit).
Dacă Beneficiarul nu dă curs cererii Francizorului, acesta din urmă nu va fi
răspunzător pentru eventualele pagube suferite de Beneficiar, ca rezultat al
distribuirii produselor respective.
4.4. Persoanele abilitate de către Francizor au dreptul să viziteze oricând, în
timpul orelor de lucru, restaurantul Beneficiarului pentru a verifica respectarea
prevederilor contractuale.
4.5. Francizorul are dreptul la încasarea redevenţelor (royalties) pentru
prestaţia sa calculate şi achitate conf. Art. 5 al prezentului contract, cu condiţia
respectării tuturor obligaţiilor sale contractuale.
Part 2 unit 4

I. Open the brakets using the appropriate form of the capital letter words
in brakets in the following text:
The Documentary Credit consists of a written 1. (UNDERTAKE) on the part of the
bank 2. (PAY) on the instructions from the buyer (applicant) a certain amount to
the Seller (beneficiary) within a 3. (PRESCRIBE) time limit and against surrender of
stipulated documents 4. (COVER) the shipment of goods contracted for beteween
seller and buyer. The handling of of a Documentary Letter of Credit (INVOLVE) a
minimum three, but in most cases four parties: buyer, seller, issuing bank and
advising bank. It 6 (REPRESENT) an independent transaction from the actual
contract entered into, between buyer and seller and the banks 7. (BE NOT
CONCERN) with the terms of such contracts and are consequently not bound by
them. Once a DL/C has been established, the bank 8 (ADHERE) strictly to the terms
of the credit.
II. Fill in the blanks the missing verbs in the correct grammar form in the
following letter: sign, be available, might; inform; be payable
Dear Sirs,
We make reference to our order No ...... of 28 February 2005. We 1.
............. you that we instructed our bank to open an Irrevocable Letter of Credit in
your favour in Bucharest. The credit, amounting to £2,000 (two thousands pounds)
2. ................ till April 15 2005. As the Bill of Lading 3. ................ might arrive
late in London, we agreed that this credit 4. ................... against the loading
Certificate of the ship owener, not against the Bill of Lading. The certificate 5.
...................... by a maritime agency and it will mention that both the Bill of
Lading and the invoice have been sent by e-mail to the bank ... London.
III. Fill in the blanks the missing words in the following Letter of Credit: 1.
installment; 2. schedule, 3. law; 4. statement; 5. expiration
 Irrevocable Standby Letter of CreditWorld Development Bank
56-70 Wall Street, New York, 1002
March, 3, 2005

Refine Realty Corp.

230 May, South Drive
Chicago, Il, 12003
Sirs:
By order of our client Hotel Macedonia Corporation, New York we hereby issue our Irrevocable le Standby Letter of
Credit nr 825 in your favor, for an amount not exceeding in the aggregate U.S.$2,ooo,ooo effective immediately and
expiring at our office on September 30, 2006.
Funds under this letter of Credit are available to you against draft(s) drawn on us, mentioning thereon our Letter of
Credit no 825, in accordance with the following a)................ of payments:
1. U.S. $1,000,000 beginning on 1 May 2005 and up to an including May 30, 2006 accompanied by your signed
b)................. that "the amount of said draft represents the first installment for the purchase of the hotel "New
California", Los Angeles.
2. U.S. $1,000,000 beginning on June 1, 2005 and up to an including June 25, 2006, accompanied by your signed
statement that "the amount of said draft represents the final c).................. for the purchase of the hotel "New
California", Los Angeles.
We hereby undertake with you to honor each draft drawn under and in compliance with the terms of this Letter of
Credit, if duly presented together with the documents specified at this office on or before the stated d).................
date.
Except as may be otherwise stated, this Letter of Credit is subject to the International Chamber of Commerce's Uniform
Customs and Practice for Documentary credits in effect on the date this Letter of Credit is issued and is subject to and
governed by New York State and U.S. Federal e) .........., without regard to principles of conflicts of law.

IV. Draft a reply to the letter above underlying the following

- you agree on the revolving irrevocable letter of credit
- you agree on the original domicile of the Letter of Credit but you ask for the
surrender of the following documents against payment:
- invoice (3 copies)
- insurance policy blank endorsed, covering maritime risks, breakings, theft,
war
- bill of lading issued at order, blank endorsed, freight paid in advance

Dear Sirs,
We were noticed by the BRD LIPSCANI Bucharest about the opening of a L/C
in our favour, domiciled Midland Bank Budapest, of in value of €250,000 for the
pazment of the goods that make the object of your order no. 032-N-24 of June, 2nd,
2006.
We kindly ask you to request to your issuing bank to operate the following changes
in the Letter of Credit according to the following:
- revolving irrevocable character of the Letter of Credit
- original domicile of the Letter of Credit to remain the same
V. Explain in your own words the following flowchart representing the
working mechanism of the cheque:

Issuer Payee

Issuer's Bank Payee's Bank

VI. Fill in the blanks the following missing words: a) credit; b) bank; c) order;
d) honored; e) cheque; f) himself; g) parallel; h) cross; i) account; j) fraudulent; k)
collection; l) balances.

A cheque is an "unconditional 1) _______________ in writing addressed by

one person to another, signed by the person giving it, requiring the banker to pay
on demand a certain sum in money or to the order of a specified person or to
bearer".
The drawer is the person who draws the 2) __________ and the payee is the
person to whom the money is made payable. The bank on whom the cheque is
drawn is called the drawee 3) ___________. The drawer and the payee can be one
and the same person when a person draws a cheque payable to 4) ___________.
The banker has the duty to honor cheques drawn by the customer according to the
5) _________ money available in the customer's account, or within an agreed
overdraft limit.
The cheques are paid and debited against the credit 6) __________ held on
customer’s accounts, by being passed through the clearing system.
Unpaid cheques are returned with a reply indicating the reason for not having
been 7) ______________. One precaution taken for ensuring that persons who are
not entitled to it cannot obtain its value, is to 8) ____________ the cheque. In this
case, the drawer will make it more difficult for a 9) ___________ person to obtain
value for it. Crossing can be general or special. A general crossing is represented by
two 10) ___________ lines on the face of the cheque. This kind of cheque may not
be cashed over the counter of a bank but must be paid into a banking account for
11) ____________. The name of a particular bank is written across the face of a
cheque with a special crossing, that can only be paid into an ……………12)
____________ at that bank.

VII. Read the following text and draw the main ideas from it in a written
form:
Endorsement is defined as the signature of a cheque by the holder followed
by delivery of the instrument whereby the holder of a cheque payable to his order
negotiates it to another person, who takes it as a new holder. In order to operate a
legal transfer of an order cheque, a correct and genuine endorsement is necessary.
Every endorser guarantees the genuineness in all respects of the drawer's signature
and all previous endorsements. An endorsement can be blank or special. A blank
endorsement specifies no endorsee and its effect is to make the instrument payable
to the bearer. The holder writing above the endorser's signature a direction to pay
the cheque to, or to the order of, himself or some other person can convert it into a
special endorsement. A special endorsement specifies the person to whom, or to
whose order, the instrument is to be payable.

VIII. Read the text and fill in the blanks the missing words: a) travelers; b)
evidence; c) signature; d) charge; e) cash; f) safety; g) account; h) currencies.
Travelers' cheques are the usual method by which 1) _________ take money
abroad to provide expenses. They are available in different 2) _________ and are
exchanged for local currency at the at the cashing banker's rate of exchange for
sight drafts. At most a passport or some 3) ________ of identity is requested as a
condition of cashing. The holder signs the cheque in the presence of the bank
officer and his or her 4) ___________ must agree with the one already on the
cheque. Travelers' cheques issued but not used, can be either paid into the holder’s
bank 5) _________ or cashed by the issuing bank. If lost, most banks replace them
free of 6) ____________ Simplicity, general acceptability, cheapness and 7)
__________ are the main advantages of the traveler’s cheques. Hotels and shops
accept cheques in payment, and they can be used in place of 8) ____________
when banks are closed.

IX. Fill in the blanks the missing words: 1) bill; 2) ownership; 3) prior; 4)
recourse; 5) person; 6) payment; 7) acceptance; 8) payment; 9) consequences.
The a) _____________ who draws a bill is the drawer; the person on whom
it is drawn is called the drawee and the person to whom it is drawn payable is the
payee. When the drawee accepts the b) ___________, he is known as the
acceptor. An acceptance of a bill of exchange is either general or qualified.
Discharging a bill is the performance of setting free or c) ___________ of a
bill, after which all rights are 'extinguished'. When a bill is endorsed, that is its d)
___________ is transferred, it is signed on the back by the endorsee.
Most bills are accepted when presented for e) __________, and duly paid
when presented for payment. However, acceptance or f) __________ is refused,
then the bill is said to be dishonored by non-acceptance or by non-payment. The
person presenting the bill must give notice of dishonor to g) ___________ parties
and have the bill 'noted' or protested with a notary public. Failure to take the
proper steps promptly may have serious h) _____________. An immediate right or
i) ______________ against the drawer and endorser accrues to the holder if the bill
is dishonored.
X. Look at the following bill of exchange and identify the main parties to
the bill:
_______________________________________________

Address
23rd April, 1992
£10,000

Three months after date, pay to me or to my

order Ten thousand Pounds, value received.
(Signed) "Y"

To "B"
Address
_____________________________________________________________

XI. Match the following missing words: 1. demand; 2. institutions’ 3.

underlying; 4. payment; 5. supplier; 6. performance; 7. guarantee.
A demand guarantee is defined as an undertaking for a) __________ of a
stated sum of money on presentation to the party giving the undertaking of a
demand for payment as may be specified in the guarantee within a specified period
of time. Most of the guarantees are payable on first written b) ___________
without any additional documents. Whereas documentary credits are used to
ensure that the supplier is paid, demand guarantees safeguard the buyer against
non-performance, late or defective performance by the c) ___________. Demand
guarantees are issued usually by banks and recently by other financial d)
_________. Demand guarantees are defined by three parties: the account party (or
“principal”) which is usually the seller, supplier or the contractor, whose e)
__________ is required to be covered by the guarantee and who gives instructions
for its issue. The guarantor is the bank or other party issuing the f) __________ on
behalf of its customer, the principal. The beneficiary is the part in whose favor the
guarantee is issued. This is the other party to the g) ________ contract, the buyer.

XI. Explain the following flow chart representing the mechanism of issuing
the letter of guarantee using your own words:

Guarantor Guarantee

instruction letter
Principal

Importer's Issuing Bank Beneficiary

Reimbursement Bank

Exporter Corresponding Bank

Advising Bank
V. Translate into English:
a) Cecul este un instrument de plata care pune in legatura trei persoane:
tragatorul, trasul si beneficiarul. Instrumentul este creat de tragator, care, in baza
unui diponibil constituit in prealabil la o societate bancara, da un ordin
neconditionat acesteia, care se afla in pozitie de tras, sa plateasca la prezentare, o
suma determinata, unei terte persoane sau insusi tragatorului aflat in pozitie de
beneficiar. Deci, tragatorul emite cecul, posesorul legitim il incaseaza, iar trasul il
plateste.
b) Procedura de completare a cecului de calatorie a fost astfel adoptata incat
sa nu faca posibila folosirea frauduloasa si falsificarea acestora. Astfel, titularul va
semna pe dreapta documentului, la momentul cumpararii acestuia de la banca si in
stanga jos numai in prezenta prestatorului, atunci cand sunt platite diverse servicii
sau marfuri. Prestatorul va putea astfel sa compare cele doua semnaturi si sa
autentifice originalitatea cecului. Daca prestatorul are dubii in privinta semnaturii
titularului, acesta mai poate semna o data pe spatele cecului. Este foarte important
ca semnatura sa fie facuta in prezenta prestatorului si nu inainte, pentru ca altfel
cecul nu va fi acceptat.
c). Cambia este un instrument cu ajutorul căruia, în calitate de trăgător, vă
puteţi plăti o datorie faţă de o anumită persoană (beneficiar) prin intermediul unei
alte persoane (tras) care vă era datoare şi căreia îi ordonaţi să plătească
beneficiarului sau posesorului cambiei suma respectivă la o anumita dată. Atunci
când doriţi să faceţi o plată în condiţiile de mai sus, formularul de cambie va avea
următoarele elemente:
- numele şi semnătura dumneavoastră;
- numele trasului;
- adresa, numărul contului şi banca trasului;
- data şi locul emiterii;
- locul plăţii;
- scadenţa;
- numele beneficiarului;
- adresa, codul fiscal şi stampila dumneavoastră;
- suma în litere şi în cifre;
- moneda.
Când unul dintre debitorii dumneavoastră doreşte să se achite de obligaţie
prin emiterea unei cambii pe care v-o remite, în calitate de beneficiar al cambiei
aveţi următoarele posibilităţi de a va exercita drepturile:
A): - să prezentaţi cambia trasului pentru acceptare pentru a fi sigur de plata
acesteia la scadenţă;
- să prezentaţi cambia trasului la plată;
- să giraţi în favoarea unui terţ faţă de care aveţi obligaţie; în acest
caz va trebui să înscrieţi pe verso-ul cambiei următoarele date:
 - numele dumneavoastră;
- numele persoanei căreia îi giraţi titlul (giratarul)
- data girării
- semnătura dumneavoastră
după care predaţi cambia persoanei în cauză.
B): - să o scontaţi la bancă înainte de scadenţă; vi se va plăti suma înscrisă
pe cambie, mai puţin comisionul băncii pentru astfel de operaţii.

Part 3 unit 1

I. Fill in the blanks the missing words in the following text: assistance;
protection; international, systems, environment; economies; development;
unemployment; goals; infrastructure; sell; elements; trade; transition; enterprises;
performance; movement; ownership
Today, more and faster than ever, the world is confronted with the necessity
for change in systems, felt not only in ex-communist and central-planned a)
....................... , but even, to some extent, in the developed capitalist economies,
which have, as an imperative short-run goal, to adapt to a permanently changing
environment. We shall focus on the countries that have to change their b)
.................. entirely and dramatically - the former communist countries - which
are challenged nowadays with a tough problem: transition to market economy.
What should be the best possible ways in which a market system can be built
for these countries?
1. The most important component of c) ......................... is the privatization
of former state-owned enterprises, former industrial giants which are very
inefficient and costly. The governments of these countries must create a
competitive d) ...................... to force newly created private enterprises to
operate with the discipline of competition. One of the most common means in
achieving this goal was to open up national markets for the international e)
............... and investment.
2. Another topic that must be handled is the critical role which governments
of these countries should exercise as facilitators of the f) .................... process, in
the sense that they should provide with human resources through education and
create the infrastructure that the public sectors need in order to attain effective
performances. Such programs must take into account that any program a
government decides to overtake must be tailored to its capacities to govern,
otherwise people's trust will be more and more diminished and social g)
....................... will appear.
3. The third problem relates to the large state-owned h) ................... which
occasionally performed well, but which are very risky due to several factors, such
as:
- -low productivity
- -padded payrolls
- -disregard of the environmental forces
The government should create incentives to i) ................... these factories
to potential investors, (if any) or to close them down. But closing down these
giants, will bring very high levels of j) .......................... , which is an acute and
terrible cost suffered due to the transition and which should be handled with care.
That is why governments should come with efficient social k) .....................
programs either internally or externally financed.
4. It is difficult to judge the l) ......................... of each economy only by
drawing lessons from some other countries' experience. In order to implement a
good and reliable market oriented system, particular m) ..................... of each
country's culture values, history and aspirations must be taken into account and
conclusions drawn locally. Each country must strive very hard to achieve the
system that best suits its internal conditions.
5. Another problem is constituted by the type of capitalist system that will be
implemented in each country, primarily related to the size of the public sector,
workers-employers concepts, providing n) ................... education, assistance in
critical projects, etc.
6. An important point relates to the integration in the developed countries
structures, which is a goal recognized by all former communist countries. This may
have several reasons:
- -to obtain economic and financial o) ...................
- -to get security provided by these institutions
- -to get consulting when necessary
7. There are countries based upon an economic market system with
emphasis on private p) ........................ , on productive activities and an extensive
use of market regulatory forces, countries that have been developing for more than
a century. Countries facing today economic transition must achieve their goals very
fast, within a decade or two, in order not to be critically affected by the financial
differences on the r) ..................... market. This also represents an impediment
for them. All these aspects are taken into account by those countries, which found
themselves in transition in order to accomplish their development s) ............... in
short time and fewer social costs.

II. Match the following words with the definitions:

1. goal, 2. challenge, 3. privatization, 4. enterprise, 5. competition, 6. means, 7.
payroll, 8. trade, 9. investment, 10. infrastructure, 11. productivity, 12. incentive,
13. unemployment, 14. implement, 15. market, 16. environment.
a) to take part in a contest to prove who is the best;
b) to buy shares, property in order to earn interest or bring profit;
c) project or undertaking, especially one that is difficult or needs courage;
d) action or methods by which a result is brought about; money, wealth, resources;
e) measure of the output of an organization or economy per unit of input (labor,
raw materials, capital, etc);
f) event in which people compete, contest;
g) thing that encourages somebody to do something;
h) state of being not employed;
i) the goods or services requiring substantial investment considered essential to the
proper functioning of an economy: roads, railways, electricity supply, sewerage;
j) conditions, circumstances, natural conditions affecting people's life;
k) the process of selling a publicly owned company to the private sector;
l) the activity of selling goods or services in order to make a profit;
m) object of one's efforts; target;
n) to put into effect; carry out plans, policies, a program of reforms;
o) the place where buyers and sellers meet to exchange items of value;
p) the evidence of the employees of an organization and of their wages.

III. The best specialists do not always make the best managers. Although
in some ways, a specialist is capable of becoming a manager, because of
strong analytical skills, other factors make the move difficult. Match the
titles with the following managerial skills: Interests in Subordinates;
Motivation; Communication; Attitude; Leadership; Career; Assessment; Potential
and Promotion; Self Awarness
..................................
a) Do you have the capacity and ability to learn the skills? Training and special
courses will help. But it is more important for you to establish a good record as a
specialist. Management will look first at what you have done to see if you have
been a "winner". "Has this person been in tough situations and if so, how did he
handle them?"
............................
b) Learn what your superior thinks, are your strong points and weak points.
How is each affecting your work performance? Are you a responsible person? If you
accept responsibility, other people will more readily look to you for leadership?
Being responsible means being accountable and answerable.
.............................
c) Money isn't the key motivation for many managers. If you decide you want
to be a manager for status or money, you may fail. Good managers are motivated
by the challenge to organize and run jobs. They feel a sense of accomplishment
when they can get others to do as much or more than they could do by themselves.
They also believe in change. They want to see progress. They feel uncomfortable if
problems are not tackled. They do not feel at ease if they must go along with
conditions as they are. Good managers also have missions. They know their
purpose in life.

...................................
d) The more difficult it is for you to plan your career, the more you need to
learn about yourself. You need to decide what you want out of life. Your move to a
managerial position will involve your whole family. It can mean a drastic change in
your life style. You will probably give up some of your old friends - certainly you will
be making new ones. You may have to work long hours, either at the office or at
home. Your take-home pay may not increase significantly at first, yet you may feel
it necessary to raise your standard of life. You must force yourself to consider your
career and then see what your next step should be.
...............................
e) How you really feel toward management in general should be considered.
You must agree with all the basic goals of management to the extent of seeing the
position as a "we" function rather than a "they" one, as the manager is responsible
for all the work in the department, and he cannot solely place the blame for the
poor performance on an individual.
Managers must also be willing to acknowledge that they are not perfect and
that they make mistakes. Thus, they avoid conflicting, defensive reactions of the
subordinates.
The best managers have a positive attitude. They are positive about what
they want and what they expect from the others.

................................
f) Are you aware of the difference between assertiveness and aggressiveness?
Do you know when and how to be assertive? A manager who is properly assertive
can make things happen, handle difficult human relations problems, get ideas
across and provide the leadership that will result in achieving organizational goals.

..........................................
g) A mature manager creates an environment in which his subordinates develop
fully. Such a manager is aware that subordinates' problems, both on and off the
job, that affect their performance. So their problems are his or her problems too.

.........................................
h) Management by leadership is the style the most sought after by every
company. This type of manager is sensitive to the feelings of others and
participates with subordinates in discussions leading to department decisions. Good
leadership is not just giving orders. But, effective managers facilitate the
accomplishments of their subordinates. That is true leadership.

................................
i) Listening is more than just hearing. In addition, managers must help their
people to do a better job by listening, as it requires an active use of the ears, eyes
and mind. By building trust and improving two-way communications, managers are
able to get problems out in the open and provide guidance to solving them.

IV. Match the words with the definitions bellow:

a) regulation; b) deregulation; c) monetarism; d) infrastructure; e) recession; f)
intervention; g) inference; h) supply-side theory; i) laissez-faire; j) crowding-out.

1) the concept in economics suggesting that a reduction in private expenditure

results from an increase in government expenditure

2) the removal of controls imposed by governments on the operation of markets

3) (social overhead capital)- the goods and services usually requiring substantial
investment, considered essential to the proper functioning of an economy, for
example roads, railways, sewerage and electricity supply constitute essential
elements of a community's infrastructure.

4) a school of thought in economics that places money at the center of

"macroeconomic policy. Based on the quantity theory of money, and first expressed
by the Scottish philosopher David Hume (1711-1776), it relates the price level to
the quantity of money in the economy.

5) a slowdown or fall in the rate of growth of GNP. A severe recession is called a

depression.

6) an economy in which government intervention is kept to a minimum and market

forces are allowed to rule. The term is attributed to J. Gourlay (1712-1759) is best
translated as "let the people do as they think is best."

7) an approach to macroeconomics that emphases the importance of the conditions

under which goods and services (including labor) are supplied to the market in
determining the level of employment and output in an economy

8) a logical process by which it can be reached a conclusion from facts or reasoning

9) interfering or becoming involved

10) control by rules and restrictions made by an authority

V. Read the following functions of a wholesaler and a retailer. Separate

them into two columns:
The work of the wholesaler consists of buying goods from the manufacturer
and selling them in small quantities to retailers according to their requirements. The
retailer performs the last stage of the productive process, for it is he who puts the
goods in the hands of the actual consumer. They both perform valuable functions
which justify their existence in the chain of distribution:

a) Since many shops, especially those stocking a large variety of goods, order
their suppliers in small quantities, it is not economical for each producer to
sell directly to the shop. Such a practice would mean employing many
salesmen and representatives, packing many separate parcels and making
numerous transport journeys.
b) Manufacturers abroad could rerely be bothered to ship small parcels to
individual retailers or to undertake the foreign currency transactions
involved. These tasks are left to a wholealer, the import merchant who is
known and trusted. Often the import merchant goes abroad to establish and
develop trade connections.
c) Customers like the convenience of being able to obtain a good at a shop just
when they require it. But such ready service means holding stocks. Often,
however, the retailer has neither the facilities nor the financial reserves to do
this. So he leaves it to the wholesaler, knowing that, should there be a
sudden run of good, he can quickly obtain supplies from him.
d) With many products, particularly vehicles and machinery, the manufacturers
 insist that the wholesaler provides an efficient maintenance service, such as
minor repairs, periodic overhauls and carrying a range or spare parts. In this
way both the manufacturer and the customer benefit. The former can
guarantee quality of service and thereby preserves the reputation of his
product, while the latter knows that his machines can be repaired quickly and
efficiently by a local agent.
e) In the course of his main business, the seller performs many services for the
convenience of the customers, all of which help to build up goodwill. Where
the good is not in stock, he will order it, and in other matters where contact
with the manufacturer is necessary, the seller will often act for the customer.
Thus goods are returned to the manufacturer for repair, or he himslf mai
maintain a repair service.
f) They take the goods to where it is most convenient for an easy reach of the
customer. They are congregated together in the centre of most towns,
though, with goods such as groceries which are in everyday use, small shops
are often dotted around residential districts. Where customers are very
dispersed, as in the country districts, the seller may have „travelling shop”
of some form or another.
g) He often advises the manufacturer, particularly as regards advertising and
marketing the product. He himself can advertise, especially if the good is
being imported from abroad. Moreover, he acts as a channel of information
to and from retailers.
h) What is the „right good” depends on the customer, for different people have
different tastes, and what suits one may be undesirable to another. Thus
having the „right good” depends largely on stocking different varieties of the
good so that each customer can make his or her own choice, pay for it, and
take delivery there and then.
i) He maintains close contact with his customers. From them he discovers,
either through a chance remark in the course of converation or by direct
suggestion, how a good could be improved or what type of good people
would like. This information finds its way to the manufacturer, who will
probably act upon, and eventually the modification or the new good will be
produced.

VI. Match the following types of retail outlets with their description:
1. independents; 2. Multiples; 3. Supermarkets; 4. Hypermarkets; 5. Department
Stores; 6. Co-operatives; 7. Mail-Order.
a) Urban congestion, lack of adequate parcking space and rising rents „out-of-
town shopping centres to cater for the car-borne weekly shopper.
b) Can be defined arbitrarily as organizations of ten or more shops. They can
sell a particular sort of goods. Their chief advantages are that they can
obtain the economies of bulk buying and centralised control, eliminate the
wholesaler, invite instant recognition through their standardised shop fronts
and establish a reputation through brand names.
c) They sell by agency and illustrated catalogues, purchases ususally being
arranged through weekly interests-free payments. Over one-half of all sales
are accounted for by women clothing and household goods.
d) They are mainly small shops with no other branches and they account for
 two-fifths of the total sales through shops. Yet, in spite of their advantages of
individual attention to customers, „handy” locations for quick shopping trips,
and the willingness of owners to accept a lower return of the benefits of
being their own boss, they are steadily losing ground to the larger stores.
e) They may be defined as self-service shops. While organisationally they would
count as multiples, their share of the food trade warrants separate attention.
They accounted for half th grocery trde and a third of total retail food sales.
They secure the benefits of economies of scale, low labour costs, a clear and
attractive display of merchandise and bulk buying to the extent of their own
labelling. As a result they have highly competitive prices, allowing them to
gain ground rapidly.
f) Competition from multiples has forced them to alter somewhat the traditional
picture of separate departments under the control of a buyer enjoying some
degree of autonomy (which led to the epithet „many stores under one roof”).
Instead, a more streamlined approach with an increasing degree of bulk-
buying by central office, more self service and extended credit facilities, have
allowed them to retain an important percentage of the market.
g) A group starting trading by subscribtion. Profits are distributed to members
in proportion to their purchases. They charge the current market price for
their goods. This type of retailing is chiefly important in the marketing of
agricultural products, where production is carried on by many small farmers.

VII. Match the following missing words in the text: 1. communicating; 2.

wholesaling, 3. transactions; 4. managed; 5. distribution; 6. exchange; 7. digital;
8. information; 9. environemnt; 10. business; 11. service.
Electronic commerce is not a new concept. Companies and consumers have
been using electronic media to conduct commercial a)___________ for years. To
date, electronic commerce has been inhibited by high costs and complexity and the
lack of standard applications for viewing and shareing b)_________ once
connected. The Internet, specifically the World Wide Web, has changed this
scenario radically. Connectivity over the Internet is cheap, increasingly secure and
built on standards which make c)___________ with anyone a straight forward task.
Now, Internet commerce - the d)_______________ of goods and services for
value on Internet – is evolving into a more cost-effective and powerful way to do
business.
Business-to-business-commerce includes online e)__________, where
business sell goods and services to other businesses on the Web. In Internet-based
corporate f)___________, wholesaling merges into a system where individual
employees make purchases of office materials and supplies using the corporate
supply chain trading. Business work closely together via the Internet to automate
and streamline the supply of goods for production and g)__________.
In business-to-consumer-commerce companies market physical goods to
consumers online in a more personalized, dynamic h)___________. Business-to-
consumers-commerce increasingly includes the delivery of i)_________ goods -
software, electronic media, and information. Consumers also look more frequently
to the Internet for the delivery of j)_________, including ticketing, reservations
and financial services. In short, Internet commerce – business-to business and
business-to-consumer – will dramatically impact the way goods and services are
k)__________, bought and sold all the way from from manufacturer to consumer.

VIII. Match the following specialised words with their definitions:

a) auction; b) access; c) capital; d) annual report; e) charge; f) bar code; g)
agency; h) allowance; i) barter j) cost;
1. to obtain data from or to place data into a computer memory
2. the business carried on by a commercial agent.
3. a tax free amount that may be deducted before a particular tax is calculated
4. the annual accounts and directors’ report of a company issued to
shareholders
5. method of sale in which goods are sold in public to the highest bidder
6. a bar consisting of an array of parallel rectangular bars and spaces printed on
a package for sale in a retail shop. A laser scanner is pased over it at the
retailer’s check-out till the price and description of the goods are displayed
on the till screen and the computer-controlled stock record is simultanously
reduced.
7. a method of trading in which goods or services are exchanged without the
use of money
8. the total value of the assets of a person less liabilities
9. a legal or equitable interest in land, securing the payment of money.
10. an expenditure, usually of money, for the purchase of goods or services

IX. Fill in the blanks the missing words: 1. floor; 2. bid; 3. globalization; 4.
negotiable; 5. events; 6. leader; 7. financial guarantee system; 8. electronically; 9.
exchanges; 10. guarantee; 11. open outcry
The rapid opening of economies in the Central and Eastern European
countries, as well as the rapid a).................... of international markets and the
subsequent opening of commodity markets led to the demand for risk management
tools. As a result, many commodity and derivative b)..................... were formed
as a starting point of a rapid consolidation process. The Romanian Commodity
Exchange became the c).............. in the national market and has excellent terms
with the world's major exchanges. It is the founder of the Association of Futures
Markets and participates in international professional d)................. RCE shifted
from the traditional open bidding system to the system by which members trade
futures contracts e).................... while at their offices. f) ...............and offers are
captured on a time-priority basis. The margin system means four levels of
g)................ which ensures the total safety of trading.
The electronic system operates only for the derivatives market, while the
transactions for spot, forward and auctions market are performed using the
h)............. ............ system. Trading takes place on the Exchange i).............. and
the brokers make bids and offers in the pit, in an open outcry system. Fees and
commissions are j)................... with the brokerage companies. Investors are
protected by a k)............... ........... .............., exchange-clearing procedures and
the transparency of floor operations.
X. Use the dictionary and match the following specific professional terms
with their definitions: a) offer; b) clearing house; c) pit; d) option; e) callover; f)
hedging; g) auction; h) spot goods; i) gamble; j) bid price.
1. A method of sale in which goods are sold in public to the highest bidder. In most
auctions the goods to be sold are available for viewing before the sale and it is
usual for the seller to put a reserve price on the article offered.
2. The price at which a buyer is willing to close a deal. If the seller has made an
offer, which the buyer considers to high, he may make a lower price, or on more
advantageous terms. The seller may accept it, or make a counteroffer.
3. A meeting of commodity brokers and dealers at fixed times during the day in
order to form a market in that commodity. It is usually used for trading in futures,
in fixed quantities on a standard contract, payments usually being settled by
differences through a clearing house.
4. Play games of chance; risk money by investing in a commodity.
5. A centralised and computerised system for settling indebtness between
members.
6. An operation undertaken by a trader or dealer who wishes to protect an open
position, especially a sale or a purchase of a commodity, currency, security, etc
that is likely to fluctuate in price over the period that the position remains open. For
example, a manufacturer may contract to sell all that he can produce of his product
for the next six months. If his product depends on a raw material that fluctuates in
price, and if he does not have sufficient raw material in stock, he will have an open
position. He may decide to hedge his sales by buying the raw material he requires
on a futures contract; if he has to pay for it in a foreign currency he may also
hedge his currency needs by also buying that foreign currency forward.
7. Commodities that are available for immediate delivery, as opposed to futures in
which deliveries are arranged for named months in the future.
8. The price at which a seller makes it known that he is willing to sell something. If
there is an "acceptance of the offer a legally binding contract has been entered into.
9. An area of a stock market or commodity exchange in which a particular stock or
commodity is traded, especially one in which dealings in certain commodities takes
place by open outcry.
10. The right to buy or sell a fixed quantity of a commodity, currency or security at
a particular date, at a particular price (the exercise price). Unlike futures, the
purchaser is not obliged to buy or sell at the exercise price and will only do so if it is
profitable.

XI. Choose the best alternative to complete each sentence:

1. You must keep staff _________ especially when things get difficult.
a) generated; b) motivated; c) frustrated; d) electrified
2. Weigh up the _________of each alternative before deciding.
a) checks and balance b) assets c) pros and cons; d) profits
3. A good manager must be able to handle _________situations.
a) sensible b) impressive c) touching d) touchy
4. He decided to let things_________so he dropped the subject until later.
a) freeze b) ice over c) cool down d) flare up
5. She ______creating a better atmosphere amongst the staff.
a) set about b) set off c) set out d) set down
6) We need to have ___________arrangements in case things don’t work out.
a) container b) contingency c) consolidated d) consecutive
7) In a meeting you must stop people talking at __________purposes
a) opposite b) angry c) cross d) opposing
8. Why doesn’t he stick to the point? He’s always going off___________
a) at an angle b) at a tangent c) by the way d) on the side
9. It’s always difficult when a team is working________a deadline.
a) in b) at c) to d) opposite
10. Try to ensure that each employee’s _________is not too great.
a) workload b) working practice d) work-to-rule d) working party
11. Those who can’t manage their time efficiently always have high stress______
a) grades b) standards c) performances d) levels
12. The more responsibilities she _________, the more mistakes she made.
a) took off b) took on c) took down d) took out
13. I hope the project continues to run as__________ as it has so far.
a) calmly b) confidently c) smoothly d) wisely
14. After _______ many unforeseen obstacles they just managed to meet their
deadline.
a) overtaking b) overcoming c) overwhelming d) overriding
15. What can you do to improve__________in this department?
a) morale b) mortality c) moral d) temperament

XII. Make the family words starting from the following:

competitive; consumer; investment; leadership; production; supplier; beneficiary;
advertising; management; business;

XIII. Fill in the blanks the following missing words: 1. money; 2. rules, 3.
competition; 4. need; 5. share; 6. abundance; 7. amount; 8. specific; 9.
demanding; 10. effectively; 11. marketing
Marketing begins with the consumer a)_________. Something is produced in
response to that need. In a marketing society, the consumer b)__________.
Marketing societies have produced a great c)_________ and variety of consumer
goods. They have done this by means of d)_________. Each producer competes
with every other producer for a e)_________ of the market. The market is people
who have f)_________ and are ready to spend it. But consumers have a finite
g)________ of money to spend. They will buy only what they want and need. As a
nation becomes more developed, consumers become more h)___________. Their
needs become more i)_________, and they want products that satisfy their
changing needs. Only those producers who compete j)___________ will sell their
products and survive. Successful producers are guided by the k)__________
concept: respond to consumers’ needs and wants.

XIV. Match the following words with their definition: 1. consumer; 2.

merchandising; 3. store-count-distribution; 4. distribution; 5. product-life-cycle; 6.
brand awareness; 7. brand loyalty; 8. motive.
a) consumers’ well established preference for the brand; they continue to buy it
despite possible advantages of competing brands
b) moving goods from one place to another before their sale to consumers for
 example, from producer to wholesaler; from wholesaler to retailer.
c) Sales promotion; paid promotion through minor media
d) One member of the market, the user of a product
e) Consumer’s knowledge that the brand exists
f) A desire that moves a consumer to act upon a need. The motive for a
purchasing decision may be conscious or unconscious, rational or emotional
g) The number of stores that carry a given brand
h) The stages that a product typically goes through to get to the final consumer

XV. Translate into English:

A Ca urmare a lărgirii comerţului s-a trecut de la sistemul simplist al trocului
(barter) la folosirea anumitor mărfuri ca măsură a valorii, ca un echivalent general
pentru restul produselor, aşa încât să fie facilitată (facilitate) şi accelerată
(stimulate) circulaţia bunurilor între comunităţile omeneşti. Drept instrument pentru
efectuarea plăţilor au fost folosite, de-a lungul timpului, diferite produse ca vite,
blănuri şi unele obiecte cu o valoare simbolică recunoscută (generally admitted), de
pildă pietre deosebite sau scoici, ajungându-se până la urmă la o utilizare
generalizată a metalelor, care vor începe mai apoi să fie bătute ca monedă (coin)
pentru o cât mai lesnicioasă mânuire (easy handling). Dar banii nu vor rămâne prea
multă vreme doar mijloace de intermediere între participanţii la viaţa economică.
Intrucît ofereau putinţa de a achiziţiona orice şi oricând, banii au devenit
întruchiparea (embodyment) bogăţiei şi puterii, fiind căutaţi, înmulţiţi şi tezaurizaţi
(stocked) tot mai avid (greedy) Un fapt important în evoluţa relaţiilor economice şi
sociale îl constituie, neândoielnic, extinderea (development) împrumutului; într-o
primă fază numai de produse destinate consumului (consumer goods), în special
cereale, iar ulterior şi unelte ale muncii şi instrumente băneşti. (payment
instruments). Imprumuturile apar acordate (grant) încă de la începuturi contra
(against) unui anumit preţ – dobânda – ceea ce asigura o substanţială sursă de
câştig creditorilor, respectiv deţinătorilor de disponibilităţi (resources) în mărfuri şi
bani care încheiau asemenea tranzacţii (understandings, contracts).
B). BRM tranzacţionează contracte spot şi forward pentru cereale, produse
petroliere, produse metalurgice, deşeuri. De asemenea, BRM organizează licitaţii
interne şi internaţionale pentru mărfuri fungibile şi non-fungibile. BRM se implică
atât în procesele de privatizare, restructurare şi lichidare, cât şi în operaţiunile
comerciale de vânzare sau achiziţie de bunuri şi servicii. Licitaţiile se organizează
atât pentru societăţi comerciale private cât şi pentru societăţi la care statul sau o
autoritate publică este acţionar. Tranzacţionarea mărfurilor are loc în ringul bursier
prin sistemul strigării libere. Reprezentanţii vânzătorilor şi ai cumpărătorilor se
întâlnesc faţă în faţă şi negociază liber preţul. Avantajele pieţei fizice organizate în
ringul BRM sunt: transparenţa, tranzacţiilor, corectitudinea acestora, comisioane
mici, utilizarea informaţiilor în timp real.

C. Mecanismul ce oferă posibilitatea transferului de risc la care sunt supuşi

producătorii şi angrosiştii se numeşte în termeni bursieri hedging. Activitatea de
hedging implică decizii importante care necesită participarea la tranzacţii prin
intermediul unui broker. Pentru început, se depune o sumă care reprezintă o
garanţie pentru o execuţie corespunzătoare şi pentru eventualele pierderi pe piaţa
futures. Dacă acţionaţi short (vânzare) poziţia dumneavoastră se îmbunătăţeşte
când preţurile scad sub preţul dumneavoastră de vânzare şi se înrăutăţeşte atunci
când preţul creşte peste preţul de vânzare. Dacă acţionaţi long (cumpărare) pe
piaţa futures, poziţia dumneavoastră se îmbunătăţeşte când preţurile cresc peste
preţurile dumneavoastră de cumpărare şi invers. Short hedge are loc atunci când
planifici să cumperi o marfă şi doreşti să te protejezi împotriva scăderii preţurilor.
Atunci vinzi contracte futures şi când vei fi gata să tranzacţionezi marfa, vei
cumpăra contractele futures şi vei vinde simultan, de exemplu, cereale. Short
hedge protejează vânzătorul împotriva scăderii preţurilor. Vânzând contracte
futures puteţi fixa un preţ pentru marfa dumneavoastră şi veţi completa
operaţiunea prin răscumpărarea contractelor futures şi vânzarea simultană a mărfii
pe piaţa cash.
D. BRM tranzacţionează contracte spot şi forward pentru cereale, produse
petroliere, produse metalurgice, deşeuri. De asemenea, BRM organizează licitaţii
interne şi internaţionale pentru mărfuri fungibile şi non-fungibile. BRM se implică
atât în procesele de privatizare, restructurare şi lichidare, cât şi în operaţiunile
comerciale de vânzare sau achiziţie de bunuri şi servicii. Licitaţiile se organizează
atât pentru societăţi comerciale private cât şi pentru societăţi la care statul sau o
autoritate publică este acţionar. Tranzacţionarea mărfurilor are loc în ringul bursier
prin sistemul strigării libere. Reprezentanţii vânzătorilor şi ai cumpărătorilor se
întâlnesc faţă în faţă şi negociază liber preţul. Avantajele pieţei fizice organizate în
ringul BRM sunt: transparenţa, tranzacţiilor, corectitudinea acestora, comisioane
mici, utilizarea informaţiilor în timp real.
Part 3 unit 2

I. Match the following words with the definitions:

1. goal, 2. challenge, 3. privatization, 4. enterprise, 5. competition, 6. means, 7.
payroll, 8. trade, 9. investment, 10. infrastructure, 11. productivity, 12. incentive,
13. unemployment, 14. implement, 15. market, 16. environment.

a) to take part in a contest to prove who is the best;

b) to buy shares, property in order to earn interest or bring profit;
c) project or undertaking, especially one that is difficult or needs courage;
d) action or methods by which a result is brought about; money, wealth, resources;
e) measure of the output of an organization or economy per unit of input (labor,
raw materials, capital, etc);
f) event in which people compete, contest;
g) thing that encourages somebody to do something;
h) state of being not employed;
i) the goods or services requiring substantial investment considered essential to the
proper functioning of an economy: roads, railways, electricity supply, sewerage;
j) conditions, circumstances, natural conditions affecting people's life;
k) the process of selling a publicly owned company to the private sector;
l) the activity of selling goods or services in order to make a profit;
m) object of one's efforts; target;
n) to put into effect; carry out plans, policies, a program of reforms;
o) the place where buyers and sellers meet to exchange items of value;
p) the evidence of the employees of an organization and of their wages.

II. Match the words with the definitions bellow:

a) regulation; b) deregulation; c) monetarism; d) infrastructure; e) recession; f)
intervention; g) inference; h) supply-side theory; i) laissez-faire; j) crowding-out.
1) the concept in economics suggesting that a reduction in private expenditure
results from an increase in government expenditure

2) the removal of controls imposed by governments on the operation of markets

3) (social overhead capital) - the goods and services usually requiring substantial
investment, considered essential to the proper functioning of an economy, for
example roads, railways, sewerage and electricity supply constitute essential
elements of a community's infrastructure.

4) a school of thought in economics that places money at the center of

"macroeconomic policy. Based on the quantity theory of money, and first expressed
by the Scottish philosopher David Hume (1711-1776), it relates the price level to
the quantity of money in the economy.

5) a slowdown or fall in the rate of growth of GNP. When the phenomenon is

severe, it is called a depression.
6) an economy in which government intervention is kept to a minimum and market
forces are allowed to rule. The term is attributed to J. Gourlay (1712-1759) is best
translated as "let the people do as they think is best."

7) an approach to macroeconomics that emphases the importance of the conditions

under which goods and services (including labor) are supplied to the market in
determining the level of employment and output in an economy

8) a logical process by which it can be reached a conclusion from facts or reasoning

9) economic interfering of the state becoming involved

10) control by rules and restrictions made by an state authority

III. Make compound nouns with the word "unemployment" and the following
words; find their meaning in the dictionary and write your own sentences
using them.
- classical, cyclical, frictional, seasonal, structural, voluntary.

IV. Read the text and fill in the blanks using the following words: 1)
liabilities; 2) project; 3) overview; 4) business plan; 5) marketing; 6) background.

The format of the information presented depends entirely on the nature of

the applicant's a) ___________. The file will comprise a b) _____________ and a
cash flow forecast that will present the sales from a realistic rather than optimistic
point of view.
The project for the business plan will have a general business c) _________
providing information such as: business name, address, telephone number, e-mail
address, principal activities, date started and details of premises and equipment.
Details about d) _________________ of key personnel including names, age, and
qualifications experience, details of personal assets and e) ___________ will also
be present in the business overview plan. Information about products and services
being offered, their prices, customers, suppliers, competition and f) ____________
plan are included in the file.

V. Fill in the blanks using the following words: 1) due; 2) survival; 3)

forecast; 4) collecting; 5) actual.
Cash flow is vital for the a) _____________ of a business. Even if it is
profitable, delays in b) ___________ funds could dry up the cash and jeopardize
the business. The cash flow is meant to show when money will be coming in and
going out of the business, highlighting if and when additional finance is required to
meet the debts as they become c) ___________ The cash flow d) ____________
will help set out all needed relevant figures to predict ups and downs of the
business more accurately. The form allows the manager to enter the e)
____________ figures on a month by month basis, to check them against his
projections and get an early indication of any significant discrepancies to take the
necessary corrective action.
VI. Content of a Business plan. Match the titles of the content with the
content itself: 1. Contents page; 2. The owner(s); 3. The business product or
service; 4. The market; 5. Advertising and promotion; 6. Premises and equipment;
7. Business organization; 8. Finance; 9. Expansion; 10. Any other information.

a) The name and the address of the business is written down first, then a detailed
description of the products or services offered, how and where it will be produced,
who is likely to buy it (the market), the quantities.

b) The content will be summarized in this page by listing the headings of all aspects
of the business plan.

c) This section will supply information about the promotions of the business to the
potential customers.

d) This part will give information about costs of production or the service and the
prices the business will charge. It is advisable to prepare a budgeted trading, Profit
and Loss Account for the first year. How much money is needed for the beginning
and the ways this money will be repaid, over what period. The section will also
include a Cash Flow Forecast, which gives a monthly guide to expected incomes and
expenses.

e) This section will give general indications about future business plans, about
keeping on a steady output or about a dramatic expansion possible.

f) Description of the premises including size, value, mortgage outstanding, rent

payable. It will provide details about planning regulations and new equipment if
necessary.

g) This page will give details about the business owner, his or her educational
background, qualifications, previous jobs, (including part-time and holiday jobs),
skills, and hobbies that significant for the business.

h) Relevant information about the business owner, about his employees that might
be relevant for the success of the business.

i) Market research details carried out for the relevance of the new business:
prospective customers -number, age, social class, the price they might be prepared
to pay for the new products or service, competition.

j) The form that the business will take: Sole Trader, Partnership, Company or Co-
operative.

VII. Match the definitions and the words:

1. loan; 2. credit rating; 3. current liability; 4. current assets; 5. capital asset; 6.
margin; 7. market-maker; 8. real terms.
a) the difference between the prices at which a market maker or commodity dealer
will buy and sell.
b) a dealer on a stock exchange that undertakes to buy and sell securities as a
principal and is therefore obliged to announce prices at which he will buy or sell a
particular security at a particular time.
c) Money lent on condition that it is repaid either in installments or all at once, on
agreed dates and usually that the borrower pays the lender an agreed rate of
interest (unless it is interest-free)
d) An assessment of the credit-worthiness of an individual or a firm, i.e. the extent
to which they can safely be granted credit. Banks provide confidential trade
references, but credit reference agencies have grown up lately, gathering
information from a wide range of sources which is then provided, for a fee, to
interested parties.
e) assets that form a part of the circulating capital of a business and are turned
over frequently in the course of trade.
f) An asset that is expected to be used for a considerable time in a trade or
business (land, buildings, plant, machinery, etc)
g) amounts due to the creditors of an organization that are due to be paid within
twelve months.
h) a representation of the value of a good or service in terms of money, taking into
account fluctuations in the price level.

VIII. Translate into English:

Planificarea financiară stabileşte principiile schimbărilor din cadrul unei
societăţi comerciale. Aceasta identifică obiectivele financiare ale firmei, analizează
diferenţele între aceste obiective şi situaţia financiară curentă a companiei. Ea
realizeaza şi un plan al acţiunilor necesare companiei pentru a-şi atinge obiectivele
financiare.
Cea mai însemnată parte a activităţii de planificare din lumea de astăzi a
afacerilor este de natură tactică; adică este pe termen scurt şi se adresează
problemelor zilnice cu care se confruntă operaţiunile firmei
Planificarea devine strategică atunci când este folosită ca bază a deciziilor pe
termen lung, adică proiectele sunt integrate şi resursele sunt alocate de aşa
manieră încât să răspundă obiectivelor de lungă durată ale companiei.
Part 3 unit 3

I. Forms of money: Choose the correct word to complete the sentences:

1. The pound, the dollar and the leu are called _________
a) cash; b) monies; c) reserves.
2) The currency that is used in a foreign country is called _______
a) money; b) cash; c) foreign currency.
3) Money that you borrow from a commercial bank is called ________
a) capital; b) loan; c) subsidy.
4. Money in notes and coins is called _________
a) monies; b) capital; c) cash.
5) The whole amount of money received by a company or a person is called
_________
a) income; b) wages; c) salary.
6. The money that you have to receive back when the price is lower than the
denomination of the banknote you give to the shop assistant is called ___________
a) cash; b) compensation; c) change.
7. Money earned by someone for a month's (professional) work is called _________
a) income; b) wages; c) salary.
8) A manual worker receives __________
a) income; b) wages; c) salary.
9). Retired persons receive ____________
a) pension; b) aid; c) subsidy.
10) When setting a new company you need ___________
a) loan; b) fund; c) capital.
11) You pay a loan to a bank regularly in _____________
a) a) fee; b) income; c) installment.
12. You pay a ___________ to doctors, lawyers, private schools
a) revenue; b) fee; c) capital.
13) Producers are sometimes helped to sell cheaper through ________
a) loans; b) reserves; c) subsidy.
14) A person can have a part of a business called _________
a) deposit; b) budget; c) stake.
15) Money kept in a ____________ for paying pensions is called _______
a) fund; b) deposit; c) budget.

II. Find the following words in the dictionary and place them in the blanks
of the text:
1) deal; 2) maturity; 3) margin; 4) render; 5) investment; 6) flexible; 7)
difference; 8) cater; 9) supermarket

Commercial banks, or retail banks a) _________ the service of holding

deposits, paying money at customers' instruction, lending money for investment,
exchanging foreign currency, and so on. The difference between interest rates paid
and their yield to the customers represents its profit and it is named spread or b)
_________. But when lending, the commercial banks must always find a balance
between the yield and the risk on one hand and liquidity and c) _________ of the
loans on the other hand. The recent developments have enabled banks to
emphasize and d) _________ for different customers needs, extending from retail
financial services, including counseling advice, to business development needs.
Merchant banks have proved to be some of the more e) ________ financial
institutions. They have no longer the financial muscle of the nineteenth century but
they still f) _________ funds for industry on financial markets, finance international
trade, issue and underwrite securities and deal with mergers and takeovers. Similar
banks are called g) _________ banks in SUA, rendering services in industry,
without offering loans.
In recent years the h) ________ between commercial or retail banks and
merchant or investment banks became lesser and lesser visible. Huge financial
institutions appeared which render services of banking, insurance, stock broking,
investment advice, making financial i) ________.

III. What types of accounts are described in the following fragments?

1. youth deposits; 2. certificates of deposit; 3. cash management account; 4. fixed
term accounts; 5. savings account; 6. account statement.

a) This is a deposit account, where the bank undertakes to pay checks issued by
the depositor against this account, keep the net balance at the disposal of the
customer at any time and credit to the account the interest agreed and subtract
any related fees and expenses. According to the contract concluded with the issuing
bank, the client will avoid carrying out any operations which would make the
balance of the account insufficient and use the account according to the agreed
terms. Interest is usually higher than for deposit account;

b) Summary of all checks paid, deposits recorded, and resulting balances during a
specific period.

c) Deposits that are not payable until a certain period elapses. Due to the fact that
they are not payable at any time that the depositor would like, they yield a higher
return as compared to savings accounts. For the depositor is having the advantage
of a high interest rate for the period that they do not expect to use this amount,
and for the bank they are a safe source for middle and long term financing;
An important characteristic of that type of deposit is that it can be used as a
guarantee for a loan.

d) Type of deposit that encourages young people to save money; it bears a higher
preferential interest as an incentive and it is mostly used to support school
expenses.

e) Bank account in which deposits are invested by bank, usually on the money
market; it is however, a cheque account and the client is able to obtain loans
required. It is usually run in cooperation with mutual funds.
f) A negotiable certificate issued by a bank in return for a term deposit of up to five
years.

IV. Fill in the blanks:

1. account; 2. securities; 3. "bull"; 4. written up; 5. "bear"; 6. Stock Exchange; 7.
profit; 8. susceptible; 9. "options"; 10. speculations.

There is a widespread view that brokers and jobbers are merely parasites
who have created a market in a) ___________ simply to make money by
speculating. Such view merely reveals ignorance of the real functions of the b)
_______ _________. It is true that it does provide openings for c)
"_____________". Anyone who buys securities at the beginning of the d)
_________, can sell them at the end of it and take the profit without ever having
put up any money. A speculator who buys securities because he thinks the price
will rise within the account periods said to be a e) "____________". He sells
securities he does not possess at the beginning of the Account period, because he
expects the price to fall. If it does, he will make a f) _________ because he can
buy them at lower price. Longer term speculations are also possible through g)
"_________" market.
Both optimism and pessimism are contagious and the market can become
extremely h) ____________ both to panic and over-confidence. There have been,
as a result, numerous speculative booms and slumps when stocks and shares were
i) _________ and down, not with real change in the legitimate expectation of
income from them, but with
waves of confidence or mistrust which swept over the great financial centers in the
world.

V. Can you rebuild a brief history of the Central Bank of Romania following
the milestones information?

1861 I. C. Bratianu: "As long as we don't have a Central Bank,

financial crisis will not disappear in our country"
1880 the foundation of the Central Bank (1/3 state shares; 2/3
public subscription)
1880-1890 covered the Independence War
discount credits for agriculture
1901-1914 state shares sold and the bank become entirely private
1914-1918 financed the Romanian war effort
1917 transfer of the Romanian treasury to Moscow to be sheltered
against the war
activity of the bank transferred in Iasi
1929-1933 the leu becomes convertible
1933-1944 cover the Second World War Romanian expenses
1946 the bank becomes a subject of nationalization
1965 State Bank of The Popular Republic of Romania
1971 The National Bank of The Socialist Republic of Romania
1991 The National Bank of Romania

VI. Match the following definitions with the specific words:

1. public flotation; 2. merchant bank; 3. offer for sale; 4. fixed price for share; 5.
tender; 6. placing; 7. secondary exchange/unlisted securities market); 8. brokers;
9. jobbers; 10. rights issue.

a). members of the Stock Exchange that execute the orders for the clients, private
or individual institutions for which they charge a commission;
b) when a company raises funds for the first time via Stock Exchange;
c) an invitation for the investors to apply for the shares; the issue is normally
underwritten by a merchant bank through its order, that the remaining shares
unsold to be purchased by a financial institution;
d) a bank that manages the flotation of a company working with a stockbroker;
e) a price that the investors decide whether and how many shares they wish to
purchase for;
f) an arrangement of the merchant banks/broker by which shares are sold in block
at agreed prices;
g) members of the Stock Exchange that sale and buy securities on their own
account, that is they are principals;
h) the place where shares that are not eligible for a quotation on the main market,
are traded, as they are considered to be riskier; it also called OTC market (over the
counter market);
i) document by which shares are allocated in a descending order of the bid price
after the investors have specified the price and the number of shares they are
willing to pay for;
j) the first issue of shares that are offered to the shareholders at a price that
represents a discount to the market price.

VII. Use the dictionary and match the following specific professional terms
with their definitions: a) offer; b) clearing house; c) pit; d) option; e) callover; f)
hedging; g) auction; h) spot goods; i) gamble; j) bid price.
1. A method of sale in which goods are sold in public to the highest bidder. In most
auctions the goods to be sold are available for viewing before the sale and it is
usual for the seller to put a reserve price on the article offered.
2. The price at which a buyer is willing to close a deal. If the seller has made an
offer, which the buyer considers to high, he may make a lower price, or on more
advantageous terms. The seller may accept it, or make a counteroffer.
3. A meeting of commodity brokers and dealers at fixed times during the day in
order to form a market in that commodity. It is usually used for trading in futures,
in fixed quantities on a standard contract, payments usually being settled by
differences through a clearing house.
4. Play games of chance; risk money by investing in a commodity.
5. A centralised and computerised system for settling indebtness between
members.
6. An operation undertaken by a trader or dealer who wishes to protect an open
position, especially a sale or a purchase of a commodity, currency, security, etc
that is likely to fluctuate in price over the period that the position remains open. For
example, a manufacturer may contract to sell all that he can produce of his product
for the next six months. If his product depends on a raw material that fluctuates in
price, and if he does not have sufficient raw material in stock, he will have an open
position. He may decide to hedge his sales by buying the raw material he requires
on a futures contract; if he has to pay for it in a foreign currency he may also
hedge his currency needs by also buying that foreign currency forward.
7. Commodities that are available for immediate delivery, as opposed to futures in
which deliveries are arranged for named months in the future.
8. The price at which a seller makes it known that he is willing to sell something. If
there is an "acceptance of the offer", a legally binding contract has been entered
into.
9. An area of a stock market or commodity exchange in which a particular stock or
commodity is traded, especially one in which dealings in certain commodities takes
place by open outcry.
10. The right to buy or sell a fixed quantity of a commodity, currency or security at
a particular date, at a particular price (the exercise price). Unlike futures, the
purchaser is not obliged to buy or sell at the exercise price and will only do so if it is
profitable.

VIII. Match the words with the definitions using a dictionary:

1. insured, 2. premium, 3. claim, 4. syndicate, 5. insurance, 6. social ensurance, 7.
broker/dealer, 8. underwriter.

a) request for compensation from someone who is insured

b) a person or company covered by an insurance policy. In some policies that cover
death, the alternative word "assured" may be used for the person who receives the
payment in the event of the assured's death.
c) 1. the consideration payable for a contract of insurance or life insurance
2. an amount in excess of the nominal value of a share or other security
3. an amount in excess of the issue price of a share or other security
d) 1. a person who examines a risk, decides whether or not it can be insured and, if
it can, works out the premium to be charged, usually on the basis of the frequency
of past claims for similar risks
2. a financial institution, usually an issuing house or a merchant bank that
guarantees to buy a proportion of any unsold shares when a new issue is offered to
the public.
e) system whereby individuals and companies that are concerned with potential
hazards pay premiums to an insurance company, which reimburses them in the
event of loss;
f) purchase group of investment: bankers that, operating under the agreement
among underwriters purchase a new issue of securities for for resale it to the
investment public;
g). individual or firm acting as a principal in a securities transaction;
h) benefit provided under law, financed by social security tax: retirement income
benefits, unemployment insurance; medicare, public assistance for aged, Nutritional
programs for children and so on.

IX. Mind the modal function of obligation using shall or should instead of
will for the simple future in direct statements or would in indirect
statements:
1. The new political conditions will influence the international economic order in the
next ten years.
2. The changes in the economic legislation will be made next year.
3. The wages will increase in the next future.
4. The quantity of the goods ordered will be made available on the spot.
5. The taxes will be changed for this type of commodity.
6. The economists will not agree to these changes in the legislation.

X. Re-arrange the following fragments in a logical order:

Lloyd's Insurance Business
A.
In the days of sail and rudimentary navigation, the news was often bad:
ships would shipwreck and merchants would be ruined. Although ship and cargo
insurance can be traced back to the Phoenicians, it was at Lloyd's coffee house that
modern marine insurance was born. A ship owner would write on a slip of paper the
particulars of a proposed voyage - the name, route and ports of call of a vessel, the
value of its hull and cargo, and the amount he was willing to pay for "Insurance".
The other coffee drinkers arrayed in booths and benches around the room, many of
them ship owners themselves, would then decide, how much if any, of the risk they
were willing to accept in exchange for the premium. An "insurer" would write his
name on the ship owner's slip under the shipping information (hence the term
underwriter)

B.
While still insuring much of world shipping Lloyd's by then also offered
coverage for property and casualty, fire and theft, and product liability. It was
known for accepting large and complex risks that no one else would touch. By
granting or withholding insurance, Lloyd's could make or break a risky new
business venture.

C.
Lloyd's earned for the British balance of payments nearly as much as the
entire British banking system. It was the largest private investor in the U.S.
government, holding billions of dollars in Treasury bonds. It also was a cultural and
social force. Lloyd's chairmen were celebrities. People stood up when they entered a
room. The art of collection of one Lloyd's officials became the nucleus of the
National Gallery in London. Lloyd's name was so potent in America - a household
word - that in 1936 it was celebrated in a full-length Hollywood movie starring
Tyrone Power. By the middle of the 20th century, having passed its 250th birthday,
Lloyd's of London was sui-generis - a singular force, with an aura unmatched by
another business enterprise.

D.
By 1771, although Edward Lloyd was long dead, his name stuck as did the
tradition of doing business from wooden benches clustered in rectangular boxes
around a large room.
E
By the 19th century, its runners had become a worldwide network of
intelligence agents, utilized not only by Lloyd's for ship monitoring, but by the
British government for a range of economic and military intelligence - a
phenomenon that fed Lloyd's reputation for mystery and secrecy.

F.
In 1906, a signal event came to Lloyd's - the San Francisco earthquake.
Herbert Evan Heath, a leading broker and underwriter, telegraphed instructions to
his California representatives to immediately pay all claims to Lloyd's customers in
full, whatever the terms of their policies. Heath's dramatic gesture emblazoned
Lloyd's in a pantheon of world finance as an emblem of trust.
G.
In the late 17th century, seafarers flocked to Edward Lloyd's coffeehouse in
Tower Street, near the Thames waterfront in London, to gossip, play cards, and
conduct business, and Edward Lloyd serviced their needs. Coffee, valued for its
therapeutic powers, was a penny a cup. Pens, ink, and paper were free, as was
news, provided by Lloyd's runners who scurried back and forth between the
coffeehouse and the docks, gathering the latest information on the comings and
goings of ships and their cargos.

XII. Translate into English:

A.
1. Ghinionul nu se îindârjeşte decât îimpotriva prostiei. (proverb francez)
2. Primul factor de risc este ignorarea riscului. (Alvin Toffler)
3. Cine nu-şi păzeşte bine avutul este prieten cu hoţul. (Proverbe si cugetări
armeneşti)
4. Norocul ni-l facem noi şi-l numim destin. (Benjamin Disraeli)
5. Perspectiva pe termen scurt alungă perspectiva pe termen lung.
(John Naisbitt, Megatendinţe, Edit Pol, Buc. 1989)
B
Perioada de înflorire a negoţului cu orientul, respectiv secolele XIV-lea şi al
XV-lea marchează apogeul centrelor comerciale italiene ale afaceriştilor din
peninsulă. Deoarece în târguri stăteau în spatele unei tejghele pe care o numeau
bancă, mânuitorii de bani poartă tot mai mult apelativul de bancheri. Asocierea
pentru sporirea forţei financiare şi împărţirea riscurilor lua forma de societate care
îşi trimitea agenţi pentru lărgirea afacerilor la sucursale din ţară şi din străinătate.
In cele doua republici intrate în acerbă concurenţă încă din secolul al XII-lea,
Genova şi Veneţia, se preacticau dobânzi ruinătoare, fiind în slujba cârmuitorilor,
contribuind totuşi la stimularea actrivitătii comerciale şi meştesugăreşti.
C.
Cel mai puternic, întins şi influent angrenaj bancar de la dispariţia Ordinului
Templierilor, a fost casa Fugger din Augsburg, iar perioada sa de apogeu a fost în
secolul al XVI-lea. Faima şi influenţa i-au fost aduse, pentru mai multe generaţii, de
afacerile băneşti, în care au reuşit să ajungă pe primul loc în continent. Datorită
resurselor acumulate şi a prestigiului dobândit, un număr imens de clienţi – capete
încoronate, nobili, comercianţi, meşteşugari, navigatori – apelau la serviciile sale,
depuneau capitaluri spre păstrare, luau împrumuturi, efectuau transferuri de
fonduri
Intreaga sa evoluţie a fost legata şi influenţată de evenimentele politice ale
vremii care treceau prin curţile regale. Reţeaua de sucursale şi agenţii îşi crease un
adevărat serviciu de informaţii confidenţiale care urmărea atent mişcările pe scena
politică şi anticipa schimbările de palat sau operaţiunile militare, existând o
permanentă preocupare şi pentru urmărirea pulsului economic internaţional.
D
Prin denumiri diferite sunt marcate deosebirile existente între modalităţile în
care operează intermediarii de pe pieţe: "brokeri" in engleză, "courtier" în franceză,
"makler" în germană semnifică un agent care încheie tranzacţiiîn numele clienţilor,
în conformitate cu dispoziţiile primite de la aceştia. In sarcina unui asemenea
intermediar erau informaţiile asupra pieţei, consultaţii de specialitate, precum şi
contracte şi facilităţi pentru a putea fi convenite afaceri comerciale, bursiere,
valutare, financiare. Termenii compuşi precizează şi tipul de operatiuni mijlocite.
Spre exemplu, "bill-brokeri" înseamnă profilarea pe negocieri de efecte comerciale,
"share-broker" ori "stock-broker" ("agent de change" in franceză) semnifică agent
de bursă care lucrează cu acţiuni, prin "outside broker" este desemnat un agent
care operează în afara centrelor bursiere autorizate, "ship-broker" se ocupă de
curtaj maritim.
Firmele de brokeri sunt constituite sub formă de societăţi anonime şi pot fi
trase la răspundere, moral şi material, pentru modul în care îşi îndeplinesc rolul.
Principiul este ca fiecare agent în parte angajează prin activitatea sa însăşi firma în
ce priveşte probitatea profesională. Intre principalele obligaţii ale broker-ilor se
înscriu: păstrarea secretului profesional, livrarea şi plata exactă a ceea ce au
cumpărat sau au vândut, acordarea unei asistenţe de specialitate corecte,
nepărtinitoare sau dăunătoare clienţilor, evitarea oricărei influenţe asupra cursului
afacerilor cu intenţia realizării de avantaje personale. Pentru serviciile asigurate
clientelei, brokerii sunt remuneraţi pe baza de comision.
Spre deosebire de brokeri, un "dealer" nu acţionează ca intermediar pentru
clienţi, ci efectuează diverse afaceri pe piaţă pe cont propriu, numai în numele său.
Ca atare, negociază direct, se angajează personal şi îşi asumă toate riscurile.
Veniturile unui "dealer" rezultă din diferenţele între cursurile de vânzare şi
cumpărare ale titlurilor ori între preţuri, tarife, raporturi de schimb şi orice alte
mărimi în cadrul tranzacţiilor. Mai există şi categorii de intermediari specifice
anumitor centre de afaceri. La bursa din New York operează, pe lângă "brokeri" şi
"dealeri" un grup distinct de "specialişti" profilaţi pe tipuri de valori şi angajaţi de
obicei în tranzacţii numai cu alţi profesionişti. Si la bursa din Londra funcţioneazăa
aşa-numitul "jobber", care negociază titluri exclusiv în nume propriu şi nu este
autorizat să lucreze cu publicul, ci doar cu intermediari profesionşsti, deci cu
"brokeri" ori cu alti "jobbers". Uneori, între client şi agentul de bursă autorizat să
negocieze titlurile se interpuneîinca un intermediar, care administrează portofoliul
de titluri ai unei persoane fizice sau juridice, acţionand ca un mandatar al
deţinătorului hârtiilor de valoare. Denumirea acestui intermediar este "customer's
man" în engleăa şi "remisier" în franceză, de multe ori apârand în aceasta calitate
chiar băncile comerciale.

E)
Puternica dezvoltare a pieţei internaţionale de capital a permis investitorilor
să deruleze tranzacţii de cumpărare a datoriei externe a ţărilor în curs de dezvoltare
în scopul de a dobândi capital sub forma de acţiuni sau fonduri în monedele
naţionale ale ţărilor respective. Drept urmare, piaţa swap-urilor datorie externă
(debt-equity swap) a înregistrat o creştere rapidă. Esenţa lor este de-a dreptul
simplă. Pe parcursul mai multor ani, băncile comerciale regionale europene şi
americane au tranzacţionat creditele acordate celor mai îndatorate ţări în curs de
dezvoltare, pe piaţa secundara -o reţea neformală, formată din mai multe bănci de
investiţii care tranzacţioneazăa datoriile celor mai mari debitori prin telefon, telex,
sau Internet. Imprumuturile sunt comercializate la un preţ situat cu mult sub
valoarea lor nominală, reflectând astfel opinia pieţei cum că ele nu ar fi niciodată
rambursate. Cotaţiile pieţei scontului erau date sub forma preţurilor cerute şi
oferite, nu a preţrilor de lichidare a tranzacţiei. Acest instrument continuă să
reprezinte cel mai important tip de conversie a datoriilor externe ale ţărilor în curs
de dezvoltare.

F. Mecanismul ce oferă posibilitatea transferului de risc la care sunt supuşi

producătorii şi angrosiştii se numeşte în termeni bursieri hedging. Activitatea de
hedging implică decizii importante care necesită participarea la tranzacţii prin
intermediul unui broker. Pentru început, se depune o sumă care reprezintă o
garanţie pentru o execuţie corespunzătoare şi pentru eventualele pierderi pe piaţa
futures. Dacă acţionaţi short (vânzare) poziţia dumneavoastră se îmbunătăţeşte
când preţurile scad sub preţul dumneavoastră de vânzare şi se înrăutăţeşte atunci
când preţul creşte peste preţul de vânzare. Dacă acţionaţi long (cumpărare) pe
piaţa futures, poziţia dumneavoastră se îmbunătăţeşte când preţurile cresc peste
preţurile dumneavoastră de cumpărare şi invers. Short hedge are loc atunci când
planifici să cumperi o marfă şi doreşti să te protejezi împotriva scăderii preţurilor.
Atunci vinzi contracte futures şi când vei fi gata să tranzacţionezi marfa, vei
cumpăra contractele futures şi vei vinde simultan, de exemplu, cereale. Short
hedge protejează vânzătorul împotriva scăderii preţurilor. Vânzând contracte
futures puteţi fixa un preţ pentru marfa dumneavoastră şi veţi completa
operaţiunea prin răscumpărarea contractelor futures şi vânzarea simultană a mărfii
pe piaţa cash.
Part 4 unit 1

I. Fill in the blanks the following missing words:

1. prices; 2. priority; 3. suppliers; 4. subsidizing; 5. fair; 6. fins; 7. choice; 8.
artificially; 9. competition; 10. braches
Competition means more customer a)________. It also means lower
b)_______. The consumer’s best guarantee for obtaining quality goods and services
at competitive prices is to have a number of c) __________ competing for his
business. Free and open d)_________ is a cornerstone of European Union market-
based economic system. This is why it has consistently made competition policy a
high e)_________ since its creation. The Union has put in place a set of rules to
make sure that throughout the EU firms are operating on a f)________ basis and
that customers get the benefits to which they are entitled, for competition and
price-cutting do not always come naturally to firms, whose first duty to
shareholders is to maximize profits. They may seek to form anti-competitive cartels
to share markets between them or to keep prices g)___________ high or again to
block newcomers from breaking into their markets. Governments also sometimes
distort competition by h)________ some firms so that they gain an unfair
competitive advantage over the rivals. Every year, The European Commission
investigates well over 1000 alleged I)________ of the Union rules. It has the power
to order illegal practices to cease and to impose j)_________ on the most serious
corporate offenders.

II. Re-arrange the following fragments to make a whole text:

A.
The other countries of the region opted for democracy and the free market. Each
market of them sought closer ties with the Union, often declaring their ultimate
goal as full Union membership. But the radical changes of 1989, surprising when
they came in the suddenness and in their scope, had been preceded by signs of
change.

B.
Since then, the agreements between the Union on the one side and Hungary,
Czechoslovakia, Poland, Bulgaria and Romania on the other side have been
upgraded. The Union has devised for these countries a new type of association

C.
The dramatic events in one country of Eastern and Central Europe after another in
1989 changed the political and economic map of Europe. Germany was united,
presenting the Union with the need to create a crash programme to incorporate the
territory of what had been the German Democratic Republic.
D.
The first signs of a more open and flexible attitude towards the European
Union on the part of members of the COMECON ( (the acronym for the Council for
Mutual Economic Assistance – CMEA/ which comprised the Soviet Union and the
former State-trading countries of Eastern Europe plus Mongolia, Vietnam and Cuba)
came several years earlier when Hungary and Czechoslovakia approached the Union
with requests for wider trade links beyond the scope of very limited sectorial
agreements that had hitherto been negotiated.

E.
Agreements between all the East European countries and the Soviet Union
were negotiated between 1988 and l990. These negotiations were already in train
when the virtually bloodless revolution took place in Eastern Europe.

IV. Translate into English:

Proiectul de înfrăţire instituţională finanţat de Uniunea Europeană şi
coordonat de Ministrul Industriei a fost încheiat cu succes. Nivelul de convergenţă a
legislaţiei româneşti cu piaţa internă a Uniunii Europene, care include peste 370
milioane de consumatori, va creşte ca urmare a acestui proiect derulat pe parcursul
a 15 luni. Acesta a avut în vedere transpunerea şi implementarea directivelor UE în
acest domeniu, referitoare la securitatea tehnică a produselor, în vederea asigurării
unui grad înalt de protecţie a consumatorilor, a consolidării competitivităţii
industriei româneşti, prin îmbunătăţirea calităţii şi securităţii produselor. Rezultatul
tangibil cel mai important al proiectului este un document care reuneşte legislaţia,
structurile instituţionale şi procedurile referitoare la evaluarea conformităţii şi
supravegherea pieţei. Certificarea produselor la nivel naţional va fi recunoscută
automat de UE şi, prin urmare, vor avea acces liber pe piaţa internă a Uniunii.