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Economic Considerations



Supply, Demand and Market Price (II)

LESSON 8. The aim of the lesson is learn to demonstrate the principle of supply and demand in the market economy, to compare the free-market economy with the state-run command economy, and to understand how our everyday life depends on an economic situation. To attain this, you will be involved in a great deal of vocabulary enrichment activities, simulations and pair work.

1.Reproduce the following definitions from memory and continue the explanation where necessary using “The Language of Business”, unit 1.

 

Sales manager Retailer Marketing department Corporate planning Production manager Managing Director Wholesaler Budgetary control Delivery dates is an essential division of a firm of any size. The task of this department is to discover new opportunities for further sustainable development. is responsible for the day-to-day running of the company and for the expansion of business. are dates on which a firm promises to deliver goods. If the goods do not arrive on time the firm has failed to meet the delivery dates. is a dealer who operates between the manufacturer, or supplier, and the retailer, usually in large quantities. is an executive in charge of promoting sales of the firm’s goods. is an executive in charge of production of goods in the factory. is plans of future expenditure on labour, materials, etc., which are later compared with actual expenditure to evaluate and control policy. is a trader who sells goods in small quantities to the consumer or user. is integrating the three basic functions of a business (finance, production and distribution) in planning future company objectives.

 

2.Address the following utterances to your partner to translate them into Russian:

* Whenever somebody decides to start his own business, he must be aware that luck, or unhappy coincidence, may turn a business into success or failure.

* Modernising a business to increase its profitability and competitiveness is a complicated affair. It requires a management team which is aware of such aids and tools of efficiency as electronic data processing, operational research (O.R.), discounted cash flow (D.C.F.), budgetary control, corporate planning, project evaluation and review technique, automation, etc.

* A small business cannot possibly afford to have on its staff experts in every modern management technique. It usually hires expert advice from outside consultants and bureaux.

* It is important that members of a firm’s management should be aware of the more sophisticated techniques they might call on to solve particular problems. Inevitably while this changeover from the old way to the new is taking place, there are often difficulties and conflicts.

* Any firm must get right up-to-date and enlarge its business, or it will be outpaced by another firm whose business organization is better and more effective.

(dicounted cash flow = a method of calculating how profitable na investment will be by looking at the amount paid out, the interest earned and the degree of risk)

 




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