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Task 2. Now read the text again and answer the questions.





  1. What do most economists believe about economies in the world today?
  1. There are a number of free markets.
  2. Some countries have a completely planned economy.
  3. A mixed economy exists in some way in all countries.
  1. Why do governments choose to run some industries?
  1. So they can collect taxes.
  2. Because they need to be protected from the risks of the free market.
  3. To encourage a divided economy.
  1. Why do governments deregulate some industries?
  1. To make the industries more efficient.
  2. To protect them.
  3. Because there is too much competition.
  1. According to the text what is not very popular with the public?
  1. Deregulation of public transport.
  2. Deregulation of hospitals and schools.
  3. Deregulation of telecommunications and banking.
  1. What type of state control is not mentioned in paragraph 5?
  1. Controlling the way companies do business.
  2. Controlling what companies sell.
  3. Controlling the prices companies set.

Task 3. Complete each sentence with a word or phrase from the box.

Agriculture, ban, efficiently, free, enterprise, manufacturers, monopoly, private sector, profit motivation, public transport, state sector, telecommunications, trade

1.……………is when businesses are able to trade without control from the government.

2. …………… industries belong to and are run by the government.

3. ……………. industries belong to and are run by independent businesses.

4. Buses, trains and planes are examples of ………………………

5. ……………. is another word for farming.

6. …………….. produce new goods from raw materials.

7. When a business works ………., it runs successfully without wasting resources.

8. Telephone and Internet systems are part of the ……………. industry.

9. ……………. is what drives businesses in the market economy.

10. When the government puts a ………….. on a commodity people are not allowed to buy or own it.

11. If only one company controls part of the economy they have a ……………………



12. When companies …………… they do business with each other.

Writing

Write an essay comparing the planned economy with the mixed economy. Discuss the advantages and disadvantages of each economy. Decide which is best in your opinion.

Use these words and phrases to organize your ideas: despite this, nevertheless, consequently, in contrast, similarly

Read texts again and use these notes to help you. Write four paragraphs.

Discursive essay

Paragraph 1.

What is a planned economy?

What is a mixed economy?

Introduce the subject by saying generally there are these two kinds of economies that have advantages and disadvantages.

Paragraph 2.

Describe a planned economy, explaining its advantages and disadvantages.

Paragraph 3.

Describe a mixed economy, explaining its advantages and disadvantages.

Paragraph 4.

Conclude by saying which system you think is best.

or

Explain why you think neither system is the best.

Part II

  Text 1. Modern World Economy

Task 1. Read and translate the text.

The world economy is increasingly becoming a single economic unit. Individual national economies are developing closer ties through trade, capital investment and financial institutions. The role of global business in world affairs is becoming more important. Multinational corporations spread their activities across national boundaries, the international banking system carries on banking activities throughout the world, financial and commodity markets have become world markets.

Over the last few decades export and import shares of output have increased considerably in practically all industrial sectors. For most industrial nations, exports and imports remain the most important international activity. In addition to visible trade, which involves the import and export of goods, they are trying to develop invisible trade, which involves the exchange of services between nations, thus improving their balances of trade.



As the world is developing a single economy, international organizations, including the World Trade Organisation, the International Monetary Fund and the World Bank Group, are contributing to the liberalization of trade, monetary and economic cooperation. They have had a positive effect on economic growth, price stability and the flow of capital.

Nevertheless, serious economic and social challenges remain:

  • how to bridge the gap between the industrialized and developing world;
  • how to prevent inflation;
  • how to improve employment opportunities:
  • how to maintain economic growth;

- how to put an end to poverty.

Task 2. Answer the following questions

  1. What trend in the development of the world economy has been observed lately.
  2. How is global business developing?
  3. Do export and import of goods remain the most important activity for many countries?
  4. What is invisible trade?
  5. What role do international organizations play in the modern world economy?
  6. What world problems have to be solved?

Task 3. Practise these words and word combinations.

Share

Translate into Russian

  1. Britain’s share of world trade has declined.
  2. She owns shares in the business.
  3. We will all have a share in the profits.
  4. Share prices rose yesterday.

To involve

  1. My studies at university involve a great deal of hard work.
  2. The students of our college are involved in the decision-making process, which gives them valuable experience for their future work.
  3. Buying shares involves some risk.
  4. His job involves collecting statistics.
  5. I’m involved in an interesting project now.

Task 4. Bear out (подтвердите) the following statements using the information from the text.

  1. The world economy is increasingly becoming a single economic unit.
  2. Over the last few decades export and import shares of output have increased considerably in practically all industrial sectors.
  3. Nevertheless, serious economic and social challenges remain.
  Text 2. The Nation’s Economy

Task 1. Read the text and translate it into Russian. Explain how the economy machine works.

The economy of the country is like a machine which provides us with things we need, i.e. goods and services. The economy creates the wealth of the country. The better it works the better off are the people.

The government through its economic policy plays an important role in the control of the economy machine. The major branches of economic policy are fiscal and monetary policies. Fiscal policy is concerned with taxes and government spending activities. Monetary policy is concerned with controlling the supply of money and credit.



A nation’s economy can be divided into three sectors of activity. The primary sector deals with extraction of minerals, agriculture, fishing and forestry. Processing of the primary sector materials and production of manufactured goods is the field of the manufacturing sector. The service sector provides services of various kinds such as transportation, distribution, catering as well as financial services and tourism. The role of the manufacturing sector in the advanced industrialized countries is decreasing while the service sector is becoming more important.

Words and word combinations you may need

branch– отрасль экономики

fiscalpolicy– бюджетно-налоговая политика

monetarypolicy– кредитно-денежная политика

supply– предложение

supplyofmoneyandcredit– денежная массав обращении и предложение

кредитных средств

primarysector– первичный сектор

dealwith– иметь дело с

extraction – добыча (минерального сырья)

processing – переработка

manufacturingsector– обрабатывающий сектор

distribution– распределение, дистрибуция

catering– общественное питание

advancedindustrializedcountries– промышленно-развитые страны

Task2.Think of adjectives which are frequently used with the following words:

enterprise, sector of economy, programme, finances, business, policy

Task 3. Form the verbs from the following words and translate them into Russian

employment, government, privatization, decision, growth, manufacturing

investment, tax, extraction, production, transportation, distribution, supply

Task 4. Match the infinitives in A with nouns in B.

A B

to produce an enterprise

to privatize a climate

to play raw materials

to take assistance

to create productivity

to provide goods

to raise a decision

to process a role

 








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