1. What is ethics?
2. Give the definition of business ethics.
3. What are two important ethical concerns?
4. What does unethical behaviour in relationships with customers and coworkers include?
5. Do you think it is ethical to give bribes, gifts and payments that might unfairly influence other persons business decision?
6. What can you say about false and misleading advertising?
7. What do investors / employees / creditors / customers want in their relationships with management?
8. Why is effective prosecution of illegal payoffs difficult in international trade?
9. State three general sets of factors that influence the ethical decision making.
10. State the difference between ethics and etiquette.
11. Site the rules of etiquette that are the most important to your mind.
6. Using the * additional information about management from the texts Definition of Management, Management Skills and Business Ethics make up Dialogue 9. Imagine that you are a Managing Director of a firm, you have an interview with a journalist, you should give your opinion on following: How do I see a perfect manager.
7. Write a Letter of Offer. Use the information given about the topic of the letter and useful expressions.
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Useful Expressions for Writing a Letter of Offer
1. We were pleased to learn your interest in
2. We are most pleased that you want to buy
3. We are glad to say that we can reserve you
4. It is generous of you to take so much interest in our work
5. We take pleasure to send you the desired samples and offer
6. As to your inquiry of we are informing you that
7. We enclose our catalogue with the latest price list
8. Our detailed price list will convince you in diversity of our assortment
9. Our proposal is valid till
10. We deliver our goods on CIF terms
11. The price covers packing and transportation expenses
12. We can give you a 5 % discount.
13. As you can see from our price-list, our prices are at least 3% lower than marked ones
14. I call your attention on item
15. Besides above mentioned goods our company produces also
Unit VII
Ways of Payment
1.1. Read and translate the text on the topic Money and Banking. Be ready to discuss the topic. Dont forget to study useful vocabulary at first.
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| Means of payment | |
| Medium of exchange | |
| Standard of value | |
| Unit of account | |
| Store of value | ( ) |
| Standard of differed payment | ( ) |
| To swap (syn. to exchange, to barter) | , |
| To hand over in exchange | , |
| Double coincidence of wants | |
| Monetary unit | |
| To be worthless | |
| Interest-bearing bank account | |
| To pay interest | |
| To erode | |
| Hard currency | () |
| Soft currency | |
| Commodity money | - |
| Token money | () |
| Legal tender | |
| IOU money | , |
| IOU I owe you | ( ) |
| Bank deposit |
Money and its Functions
The main feature of money is its acceptance as the means of payment or medium of exchange. Nevertheless, money has other functions. It is standard of value, unit of account, store of value and standard of diferred payment.
The Medium of Exchange
Money, the medium of exchange, is used in one-half of almost all exchange. Workers work for money. l buy and sell goods in exchange for money. We accept money not to consume it directly but because it can subsequently be used to buy things we do wish to consume. Money is the medium through which l exchange goods and services.
In barter economy there is no medium of exchange. Goods are traded directly or swapped for other goods. In barter economy, the seller and the buyer each must want something the other has to offer. Each person is simultaneously seller and buyer. There is double coincidence of wants.
Trading is very expensive in barter economy. People must spend lot of time and effort finding others with whom they can make mutually satisfactory swaps.
Since time and effort are scarce resources, barter economy is wasteful.
Money is generally accepted in payment for goods, services, and debts and makes the trading process simpler and more efficient.
Other Functions of Money
Money can also serve as standard of value. Society considers it convenient to use monetary unit to determine relative costs of different goods and services. In this function money appears as the unit of account, is the unit in which prices are quoted and accounts are kept.
T be accepted in exchange, money has to be store of value. Money is store of value because it can be used to make purchases in the future.
Houses, stamp collections, and interest-bearing bank accounts all serve as stores of value. Since money pays no interest and its real purchasing power is eroded by inflation, there are almost certainly better ways to store value.
Finally, money serves as standard of diferred payment or unit of account over time. When you borrow, the amount to be repaid next year is measured in money value.
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Different Kinds of Money
Golden coins are the examples of commodity money, because their gold content is a commodity.
token money is means of payment whose value or purchasing power as money greatly exceeds its cost of production or value in uses other than as money.
$10 note is worth far more as money than as 36 inch piece of high-quality paper. Similarly, the monetary value of most coins exceeds the amount you would get by melting them down and selling off the metals they contain. By collectively agreeing to use token money, society economizes on the scarce resources required to produce money as medium of exchange. Since the manufacturing costs are tiny, why doesn't everyone make $10 notes? The essential condition for the survival of token money is the restriction of the right to supply it. Private production is illegal.
Society enforces the use of token money by making it legal tender. The law says it must be accepted as means of payment. In modern economies, token money is supplemented by IOU money. IOU money is medium of exchange based on the debt of private firm or individual.
bank deposit is IOU money because it is debt of the bank. When you have bank deposit the bank owes your money. You can write cheque to yourself or third party and the bank is obliged to pay whenever the cheque is presented. Bank deposits are medium of exchange because they are generally accepted as payment.
