1. The World Bank highlighted that Russia must control inflation and allow for appreciation of the ruble if it wishes to see its robust economic performance stay on course. Recent curbs imposed on staple goods would do little to reverse inflation and could lead to price distortions. The surge in capital inflows not being absorbed by the Stabilization Fund is driving money expansion and exerting upward pressure on the ruble. The strong ruble has in its turn been driving up labor costs. It is suggested that wages will be growing more rapidly than productivity.
2. GDP growth has been dented by appreciation of the ruble, making exports more expensive abroad and imports less expensive to domestic consumers. Any economic policy decision involves a tradeoff, and the missing link between inflation and export competitiveness of Russias industrial growth is high productivity. Another challenge highlighted by the World Bank was the shrinking and rapidly aging population. By 2025, the population will drop by 12 percent, and one in five people will be aged over 65. The situation in Russia is of particular concern because of the twin factors of a low birth-rate and high mortality.
3. Salary increases in the country dont meet up with the requirements of aging population because there is a big gap between the wages of young specialists and those who toiled their way to retirement. However Russia earned praise for maintaining an economic policy that allowed the country to weather the global liquidity and credit crunch crises. Besides Russias capital inflow into the economy has increased considerably.
(From The Moscow Times, 2008, July)
VII. , (1, 2, 3)
) (true)
) (false)
) (no information)
1) The World Bank highlighted that Russia must control inflation.
2) Soon there will be no inflation in Russia.
3) There was only one challenge highlighted by the World Bank.
VIII. 3 :
What did allow Russia to weather the global liquidity and credit crunch crisis?
4
I. (1-10).
(a j), :
| 1) insurance | a) a number of people united for business or commerce |
| 2) company | b) responsibility for causing damage |
| 3) customer | c) financial protection |
| 4) association | d) the work of buying or selling products or services |
| 5) risk | e) you feel certain |
| 6) business | f) a person, who buys things |
| 7) loss | g) no longer having smth. |
| 8) liability | h) the possibility that something dangerous might happen |
| 9) confidence | i) a person or company that provides insurance |
| 10) underwriter | j) a group of people joined together for some common purpose |
II. , , .
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1) There are several ways to measure how developed a country is: life expectancy, education level and real income of the population.
2) Even in the freest economies, like the USA, there is some government control.
3) The interest rate is determined by the levels of supply and demand in the money market.
III. a) 2, 4.
) -, . .
1) Russia has played a long and historic role in providing energy to Europe and the world.
2) Interest rates and taxes were raised.
3) Retired employees often get a company pension.
IV. . .
1) In the market economy companies have to compete with each other for a share of the market.
2) Taxpayers should clearly understand how the tax is calculated, how much they have to pay and when.
3) Many millions of people enjoy a quality of life today that previous generations could not have dreamed of.
V. Participle 1 Participle 2 , , -. .
1) Mostly with money earned from energy exports, Russia began to pay off its foreign debts.
2) Governments may also restrict the amount of imports entering the country.
3) Auctions are becoming very popular, for example, on the Internet.
VI. . 1, 3.
Lloyds of London
1. Lloyds, the biggest insurance business in the UK and in the world, is not a company, but an association of London underwriters. It was incorporated in 1871 and it is so called from Edward Lloyd. Edward Lloyd was the owner of a coffee house where underwriters at that time met to do business. Today more than 20, 000 members of Lloyds in 80 countries work for Lloyds. Underwriting members or underwriters are grouped into 280 syndicates. The syndicates vary in size from the relatively small units to several thousand individuals.
2. Insurance is usually undertaken through Lloyds brokers rather than directly with Lloyds underwriting members. Lloyds brokers know better what syndicate to approach and how to negotiate the business. They act, like other brokers, and negotiate on behalf of their customers. They do not bear any risks, since only underwriting members bear all the risks with unlimited liability. One of the main principles of insurance with Lloyds is the spreading of risk as widely as possible among syndicates to minimize their losses.
3. Lloyds is best known as a centre of marine insurance, but at the same time all kinds of insurance are practiced there. In fact, at the present day marine insurance comprises less than half the total business undertaken. Almost anything can be insured there as well: aircraft, communication satellites, civil engineering projects, livestock and so on. Besides they do some business in travels, publishing and land. Lloyds motto Fidentia means confidence in the future.
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VII. , (1, 2, 3)
) (true)
) (false)
) (no information)
1) Edward Lloyd was the proprietor of a coffee house where at that time insurers met to do business.
2) Only brokers bear all the risks with unlimited liability.
3) Lloyds provided free insurance against less or damage.
VIII. 4 :
How do Lloyds brokers act?
1) underwriter - ( , c)
2) syndicate - ( , )
5
I. (1-10).
(a j), :
| 1) growth | a) a difficult situation caused by a lack of something, |
| 2) salary | b) money that you receive as payment from the organization you work for, usually paid to you every month |
| 3) inflation | c) money or property used to produce wealth |
| 4) trade-off | d) continuing increase in the prices of goods and services |
| 5) crisis | e) an increase in size, amount, or degree |
| 6) liquidity | f) an organization that holds money, important documents and other valuables in safe keeping, and lends money at interest |
| 7) crunch | g) the amount of money in an economy at a particular time |
| 8) capital | h) a person who buys goods and services for his\her own use and not for resale |
| 9) consumer | i) balance between two situations in order to get an acceptable result |
| 10) bank | j) a serious economic situation where decisions have to be taken quickly |
II. , , .
1) The manager must have a good understanding of management principles.
2) Modern manager should be able to evaluate the needs of the total context in which his business functions and he should act in accord with his understanding.
3) Enlightenment scholars looked for a different explanation of economics.
III. a) 2, 4.
) -, . .
1) In the 1700s, the sciences were split into natural sciences and social sciences.
2) Managers who can operate effectively across cultures and national borders are invaluable in global business.
3) No one has had more influence on managers in the 20th century than Frederick W. Taylor, an American engineer.
IV. . .
1) The lack of liquidity means that banks must either abandon their promises to pay depositors or pay depositors until the bank runs out of money and fails.
2) Bank accounts may be established by national and state chartered banks, and savings associations.
3) What part can management education play in developing the international manager?
V. Participle 1 Participle 2 , , -. .
1) In designing and constructing plans and products, management must draw on technology and physical science.
2) The way of doing a job would be no longer be determined by guesswork.
3) Taylors solutions to the problems were based on his own experience.
VI. . 1, 3.
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