Читайте также:
|
Elasticity is a planning tool for managers. Let us take the leisure industry (1) ……. When looking at the leisure industry, one would expect people with larger incomes to spend the most on goods and services, and this is indeed the case. (2) ……, when considering income elasticity we are interested not so much in the amount consumers spend as the percentage they spend. This will tell us if an increase in general levels of income will have a market effect on leisure spending.
(3) …… surprisingly, the percentage spent on leisure product is fairly constant across the whole income range. Taking all leisure goods, ranging from sports equipment, televisions and videos to books and newspapers, the 10% of the population with lowest income spend around 4.5 % of their income on such products, (4) …… the highest 10% of earners spend around 5.5%. These figures have been fairly constant for many years.
(5) ……, leisure services, such as the cinema, concert and holidays, show a market difference. The lowest 10% of earners spend around 8% of their income, while the highest earners spend almost 15% of their income here.
(6) …… the implications for firms in the leisure industry are fairly clear. If there is a general rise in the level of incomes, there will be a relatively constant rise in the sale of leisure goods, (7) …… at the same time there will be a larger rise in the sale of leisure services. (8) ……, if the economy is facing a recession, then the leisure services market is likely to face a greater fall in demand than the leisure goods industry.
TRANSLATION
A. Translate from English into Russian.
Besides price elasticity of demand the following types of elasticity are particularly useful in a business context:
Income elasticity of demand – the impact a change in income has on the quantity demanded.
Advertising elasticity of demand – the impact a change in the amount spent on advertising has on the quantity demanded, in other words it is the responsiveness of demand to advertising spending.
Cross elasticity of demand – the impact a change in price of one product has on the quantity demanded of a second product.
Elasticity is a planning tool for managers. It allows firms to ask ‘what if’ questions about their products, prices, advertising level and so on. What will happen to our sales if we increase price by 10 p, or if we increase our advertising costs by 5%?
There are, of course, other factors that affect demand. Schweppes has calculated the effect of changes in temperature on sales of its soft drinks – in principle this would give temperature elasticity of demand. Economists also use the terms of elasticity of expectations, elasticity of substitution, elasticity of technical substitution, point elasticity and others.
B. Translate from Russian into English.
Основными элементами рыночного механизма являются спрос, предложение, цена и конкуренция. Спрос – это форма выражения потребности. Объем спроса или количество товаров определяется такими факторами, как цена товара или услуги, доходы потребителей, вкусы покупателей, общее число покупателей данного товара и др.
Одним из важнейших факторов, определяющих величину спроса, является цена товара или услуги. Максимальная цена, за которую покупатели готовы купить единицу товара в данный момент, есть цена спроса. Существует обратная связь между ценой и величиной спроса.
Предложение – это количество товаров или услуг, которые предложены для реализации на рынке в определенный промежуток времени. Объем предложения зависит, прежде всего, от цены. Чем выше цена товара, тем прибыльнее его производство.
LISTENING
A. Philippa Knight, Sales Director at The Fashion Group in New York, makes two telephone calls to Maria Bonetti, a fashion buyer in London. Listen and note: a) the purpose of each call and b) the result.
B. Listen to the first call again and complete the extract below.
| Philippa | I’m calling because I’ll be in London next week and ……1 to see you. I want to tell you about our new collection. |
| Maria | Great. What ……2? I’m fairly free next week, I think. |
| Philippa | ……3? In the afternoon? Could ……4 then? |
| Maria | Let me look now. Let ……5. Yes, that’d be no problem at all ……6 2 o’clock? Is that OK? |
C. Listen to the second call again and complete the extract below.
| Receptionist | Thank you. I’m putting you through. Hello, I’m afraid she’s engaged at the moment ……1 or can I take a message? |
| Philippa | I’ll leave a message, please. The thing is, I should be meeting Ms Bonetti at 2 p. m. ……2. My plane was delayed, and I’ve got to reschedule my appointments. If possible, ……3 tomorrow ……4 in the morning ……5 here at the hotel, please? |
| Receptionist | Certainly. What’s the number, please? |
| Philippa | It’s ……6. |
SPEAKING
A. Analyze the language functions and role-play the two telephone situations that follow:
Useful language: Making arrangements on the phone.
| Answering the phone Hello, Erik Halse speaking. Good morning, Madison Ltd. | Stating your purpose I’m calling about … The reason I’m calling is… | Responding That’s fine/OK for me. Sorry, I can’t make it then. No problem. |
| Making contact I’d like to speak to Anna Schilling, please. Could I have the sales department, please? | Making arrangements Could we meet on Monday at 10.30? How/What about April 10th? Is 11.15 convenient./OK? | Closing Good. So, I’ll see you on the 8th. Thank you. Goodbye. Right./OK then. That’s great, I’ll see you... |
| Identifying yourself This is/My name’s Marta Blanco. Marta Blanco speaking. | Changing arrangements I’m afraid I can’t come on Friday. We’ve got an appointment for 11.00, but I’m afraid something’s come up. Could we fix another time? I can’t make it on... |
Task:
1. Student A is a company employee who has arranged to meet Student В, а colleague from one of your subsidiaries. Explain that you cannot keep the appointment, and give a reason. Suggest an alternative day.
2. Student В is on a business trip to Sydney, Australia and wants to stay an extra day. Telephone the Qantas airline office. Talk to the representative, Student A, to arrange a different flight.
B. Discuss the following questions:
1. What kind of mechanism is a market? Can a retail store or a gas station be called a market?
2. How do subsidies and taxes influence supply of goods and services?
3. What is the mechanism of interaction between the demand and supply in setting a price?
4. What is market equilibrium?
5. Why is the equilibrium price called a market clearing price?
6. Is the demand for luxury goods elastic or inelastic?
7. Why is elasticity considered to be a planning tool for managers?
8. What types of elasticity are particularly useful in a business context?
VOCABULARY
complement n – товар-комплемент
concept n – понятие, общее представление, идея
demand (for) n – спрос
demand v – требовать, нуждаться
equate (to sth) v – равнять, считать
equation n – уравнение, равенство
elasticity n – эластичность, адаптационная способность (процент изменения величины одной переменной в результате изменения на одну единицу другой переменной)
price ~ – ценовая эластичность
unit ~ – единичная эластичность спроса
(cross) ~ of demand – (перекрестная) эластичность спроса
~ of supply – эластичность предложения
advertising ~ of demand – влияние рекламы на спрос
income ~ – эластичность спроса по доходу
elastic adj – эластичный
equilibrium n – равновесие
extent n – 1. размер; 2. степень меры; 3. объем; 4. протяженность
inferior good – товар низшей категории
interact (with) v – взаимодействовать
interaction (among, between; with) n – взаимодействие
infinity n – бесконечность
luxury good – предмет роскоши
necessity good – предмет первой необходимости
normal good – нормальный товар
price – цена
equilibrium ~ – равновесная цена
market ~ – рыночная цена
market-clearing ~ – санирующая цена рынка
to adjust ~s – корректировать, адаптировать цены
related goods – сопряженные товары
substitute n – зд. товар-cубститут
supply n – предложение (например, товара)
supplier n – поставщик
transaction n – сделка, соглашение
GLOSSARY
· Change in quantity demanded is a movement along a stationary demand curve caused by a change in price. When any of the non-price determinants of demand changes, the demand curve responds by shifting.
· Change in quantity supplied is a movement along a stationary supply curve caused by a change in price. When any of the non-price determinants of supply changes, the supply curve responds by shifting.
· Complements are two goods for which an increase in the price of one leads to a decrease in the demand of the other.
· Elasticity is a measure of how much buyers and sellers respond to changes in market conditions.
· Equilibrium is the unique price and quantity established at the intersection of the supply and demand curves. Only at equilibrium does quantity demanded equal quantity supplied.
· Inferior good is a good for which, other things equal, an increase in income leads to a decrease in demand.
· Law of demand states there is an inverse relationship between the price and the quantity demanded, ceteris paribus.
· Law of supply states there is a direct relationship between the price and the quantity supplied, ceteris paribus. The market supply curve is the horizontal summation of individual supply curves.
· Law of supply and demand is the claim that the price of any good adjusts to bring the supply and demand for that good into balance.
· Non-price determinants of demand are as follows:
a) the number of buyers;
b) tastes and preferences;
c) income (normal and inferior goods);
d) expectations of future price and income changes;
e) prices of related goods (substitutes and complements).
· Non-price determinants of supply are as follows:
a) the number of sellers;
b) technology;
c) resource prices;
d) taxes and subsidies;
e) expectations of future price changes;
f) prices of other goods.
· Normal good is a good for which, other things equal, an increase in income leads to an increase in demand.
· Quantity demanded is the amount of a good that buyers are willing and able to purchase.
· Quantity supplied is the amount of a good that sellers are willing and able to sell.
· Substitutes are two goods for which an increase in the price of one leads to an increase in the demand of the other.
· Surplus or shortage exists at any price where the quantity demanded and the quantity supplied is not equal. When the price of a good is greater than the equilibrium price, there is an excess quantity supplied, or surplus. When the price is less than the equilibrium price, there is an excess quantity demanded, or shortage.
MARKET STRUCTURE
DISCOVERING CONNECTIONS
Think of some durable consumer goods that your family possesses – perhaps a car, a television, a stereo, a camera, a personal computer, a cooker, a fridge, a hair dryer, and so on. Think of your casual clothes, especially jeans and sports shoes. Think of toys you had as a child. Think of the brands of food and drink you habitually consume, including breakfast cereals, chocolate, tea and instant coffee. Think of the products you use to wash yourself and your clothes.
In each case, do you know whether the company that makes them is one of the following?
– the market leader (with the biggest market share);
– the market challenger (the second-biggest company in the industry);
– one of many smaller market followers.
If you buy or have bought products that are notproduced by the market leader or a well-known market challenger, what is the reason?
– chance;
– price;
– because the product has a unique selling proposition (USP) that appeals to you;
– because you need something special.
READING
Text 1
Market Structures
Market structure is determined primarily by (1) the number of firms selling in the market; (2) the extent to which the products of different firms in the market are the same or different; (3) the ease with which firms can enter into or exit from the market. Based on these three criteria, economists usually group market structures into four basic categories: (1) pure competition; (2) monopoly; (3) oligopoly; and (4) monopolistic competition. Let us examine each of these market structures.
Pure Competition
The main characteristics of the pure competition are:
1. Many sellers: There are many sellers, and each firm is so small relative to the entire market that its actions will have no effect on the price of its product. Instead, it must accept the going market price, established by the forces of supply and demand.
2. Standardized product: The products of the various firms in the market are so nearly identical that buyers do not prefer the product of any one firm over that of any other firm.
3. Easy entry and exit: There are no significant financial, legal, technological, or other barriers to prevent new firms from entering the market or to prevent existing firms from leaving the market. Firms are free to enter and leave the market at will.
4. No artificial restrictions: There are no wage and price controls, minimum wage laws, labour unions, or other artificial restrictions on the free movement of prices and wages up and down.
Pure competition has its limitations. Although it works well in an industry such as agriculture, it is not practical for all markets and all industries. Nevertheless, since competition is the controlling mechanism of a market economy, a high degree of competition is usually desirable in most markets.
Monopoly
Monopoly is the extreme opposite of pure competition and has the following characteristics: (1) the market consists of a single seller; (2) the seller sells a product for which there are no close substitutes; (3) there are barriers to entry that prevent competitors from entering the market; and (4) the seller can control the price of his or her product.
Monopoly disadvantages include the following: (1) a monopolist charges a higher price and produces less output than a perfectly competitive firm, (2) resource allocation is inefficient because the monopolist produces less than if competition existed, (3) monopoly produces higher long-run profits than if competition existed, and (4) monopoly transfers income from consumers to producers to a greater degree than under competition.
Oligopoly
Although few industries are controlled by a single firm, main industries in the United States are dominated by a few giant firms. Such a market structure is known as oligopoly, and it is the market structure under which most large corporations operate. Oligopoly has the following characteristics: (1) a few sellers; (2) substantial barriers to entry; (3) standardized or differentiated products; and (4) substantial non-price competition.
Non-price competition includes advertising, packaging, product development, better quality, and better service. Under imperfect competition, firms may compete using non-price competition, rather than price competition.
Monopolistic Competition
Monopolistic competition is a market structure that is characterized by (1) many sellers; (2) differentiated products; (3) non-price competition; (4) relatively easy entry and exit. It has similarities to both pure competition and oligopoly.
Monopolistic competition is similar to pure competition in the sense that there are many sellers and no strong barriers to entry. Firms can enter and leave markets on a regular basis and, indeed, do so. The amount of money required to go into business is relatively small, and there are few government regulations restricting those wishing to enter a market. In addition, each seller controls such a small share of the market that each believes that his or her actions will bring no reactions from competitors.
Unlike pure competition, however, monopolistic competition is characterized by product differentiation and non-price competition. The latter involves efforts to persuade consumers to buy a particular product for reasons other than price. In fact, product differentiation and non-price competition are the most important characteristics that distinguish monopolistic competition from pure competition. Firms operating in markets characterized by monopolistic competition do extensive advertising in an effort to convince consumers that their products are better than those of their competitors. Often there is little or no actual difference in the products, but advertising campaigns lead at least some consumers to believe otherwise.
Most retail stores in medium-to-large-sized cities fall into the category of monopolistic competition. They advertise heavily and try to convince consumers that their products and services are superior to those of their competitors. A store may emphasize such things as convenient location, ample parking space, courteous service, and a large selection of merchandise.
Vocabulary Focus
Ex. 1. Read the international words and guess their meaning.
Criteria, monopoly, oligopoly, limitation, economy, substitute, permanent, service.
Ex. 2. Memorize the following singular and plural forms:
| datum – data basis – bases crisis – crises thesis – theses | criterion – criteria phenomenon – phenomena memorandum – memoranda formula – formulae/formulas |
Ex. 3. From two columns choose the words with similar meaning and arrange them in pairs.
| A 1) produce (v) 2) wage (n) | B a) customer (n) b) manufacture (v) |
| 3) limitation (n) 4) selection (n) 5) pure (a) 6) competition (n) 7) substantial (a) 8) share (n) 9) premium (n) 10) consume (v) 11) buyer (n) 12) artificial (a) | c) salary (n) d) assortment (n) e) clean (a) f) restriction (n) g) rivalry (n) h) considerable (a) i) portion (n) j) reward (n) k) fabricated (a) l) use up (v) |
Ex. 4. From two columns choose the words with opposite meaning and arrange them in pairs.
| A 1) standardized (a) 2) insignificant (a) 3) exit (n) 4) vigorous (a) 5) expand (v) 6) combined (a) 7) retailer (n) | B a) entry (n) b) substantial (a) c) differentiated (a) d) weak (a) e) narrow (v) f) wholesaler (n) g) pure (a) |
Ex. 5. Complete the table by inserting the missing forms.
| Noun | Verb | Adjective/Participle |
| monopoly | ||
| complete | ||
| dominate | ||
| pay | ||
| reduction | ||
| differentiated | ||
| restriction | ||
| standardized | ||
| engage | ||
| stipulate |
Ex. 6. Match the Russian word combinations with their English equivalents.
| A | B |
| 1) отсутствие искусственных ограничений 2) свободное движение цен 3) потенциальный конкурент 4) стандартизированный продукт 5) рыночная структура 6) чистая конкуренция 7) монополистическая конкуренция 8) дифференцированный продукт 9) существенные барьеры ко входу 10)неценовая конкуренция 11)отсутствие близких заменителей 12)вежливое обслуживание | a) a free movement of prices b) a differentiated product c) monopolistic competition d) no close substitutes e) courteous service f) substantial barriers to entry g) a standardized product h) a potential competitor i) no artificial restrictions j) pure competition k) non-price competition l) a market structure |
Comprehension
Ex. 1. Match the words with their definitions.
| 1) Oligopoly | a) A market structure characterized by a few sellers, standardized or differentiated products and substantial non-price competition. |
| 2) Pure competition | b) A market structure characterized by a single seller, a product for which there are no close substitutes, and strong barriers to entry that prevent potential competitors from entering into the market. |
| 3) Monopoly | c) A market structure characterized by many sellers, standardized products, easy entry and exit, and no artificial restrictions on the free movement of prices and wages up and down. |
| 4) Monopolistic competition | d) A market structure characterized by many sellers, differentiated products, non-price competition, and relatively easy entry and exit. |
Ex. 2. Expand the sentences.
1. Market structure is determined primarily by….
2. Economists usually group market structures into four basic categories:….
3. The main characteristics of the pure competition are….
4. Monopoly is the extreme opposite of pure competition and has the following characteristics:….
5. Oligopoly has the following characteristics:….
6. Monopolistic competition is a market structure that is characterized by….
Ex. 3. Answer the following questions, using the text.
1. What are the four characteristics of pure competition? What markets are characterised by pure competition?
2. What problems would exist in a purely competitive economy?
3. What are the basic characteristics of monopoly? What are the examples of natural monopoly?
4. What is oligopoly characterized by? What are the examples of non-price competition?
5. What are the characteristics of monopolistic competition?
6. In what ways is monopolistic competition similar to oligopoly? In what ways is it similar to pure competition?
Text 2
Scan the text and find definitions of the following terms: cost-plus pricing, competitive pricing, value pricing. Give their Russian equivalents.
Three Pricing Strategies
There are three basic pricing strategies: cost-plus pricing, competitive pricing, and value pricing.
In cost-plus pricing, you look at the cost of what you sell–that is, the total marginal cost–then add on the profit you need to make. That’s your price. Cost-plus means “cost plus profit”.
This method of pricing is straightforward and ensures that you will make money on what you sell. Unfortunately, it does not ensure that you will sell it. The success of this pricing strategy depends on targeting a “reasonable” profit and controlling your costs. It also depends on not being under-priced by a competitor.
A competitive pricing strategy aims to price the product at the lowest price among all recognized competitors. Low prices are one way to compete effectively, and sometimes competitive pricing is essential. For instance, in an industry selling a commodity, the outfit with the lowest price will usually succeed. That’s because when the products themselves are not differentiated, price becomes the differentiating factor.
Competitive pricing is not just for commodities. In retail, for example, portable CD players are not a commodity, but once a customer has decided she wants to buy one, price will play a big role in which type she buys. So competitive pricing is common in retailing. In fact, some retailers offer to beat any other advertised price.
In general, the success of a competitive pricing strategy depends on achieving high volume and low cost – preferably the lowest in the industry – so you can maintain the lowest price and still make a profit. Success also depends on avoiding a destructive price war.
A value pricing strategy is the alternative to basing your prices on your costs or your competitors’ prices. Instead, you base your prices on the value you deliver to customers. In this strategy, you deliver as much value as possible to your customers – and charge them for it. With this strategy, you charge a high price and justify it by delivering high value.
Value pricing is common in high technology and luxury items, such as clothing, restaurants, and automobiles.
In practice, a business considers all three pricing strategies. You have to consider your costs, or your profits will suffer. You have to consider your competitor’s prices, even if you’re not competing on price. You must consider the value you deliver because no matter what you sell, customers want value for their money.
Ex. 1. According to the text.
1. A cost plus profit pricing is
a) a straightforward method;
b) a method that ensures that you will make money on what you sell;
c) a method that includes total marginal cost and profit you need to make;
d) all of the above.
2. A competitive pricing strategy aims
a) to beat any other advertised price;
b) to price the product at the lowest price among all recognized competitors;
c) to compete effectively;
d) all of the above.
3. A value pricing strategy suggests that you should base your prices on
a) your costs and expenses;
b) your competitor’s prices;
c) the value you deliver to customers.
Ex. 2. Speak on the following issues:
1. Advantages and disadvantages of cost-plus, competitive and value pricing.
2. You own a business. What type of pricing would you prefer? Why?
Text 3
As you read the text, write a short heading for each paragraph.
Market Leaders, Challengers and Followers
In most markets there is a definite market leader: the firm with the largest market share. This is often the first company to have entered the field, or at least the first to have succeeded in it. The market leader is frequently able to lead other firms in the introduction of new products, in price changes, in the level or intensity of promotions, and so on.
Market leaders usually want to increase their market share even further, or at least to protect their current market share. One way to do this is to try to find ways to increase the size of the entire market. Contrary to a common belief, wholly dominating a market, or having a monopoly, is seldom an advantage: competitors expand markets and find new uses and users for products, which enriches everyone in the field, but the market leader more than its competitors. A market can also be expanded by stimulating more usage: for example, many households no longer have only one radio or cassette player, but perhaps one in each room, one in the car, plus a Walkman or two.
In many markets, there is often also a distinct market challenger, with the second-largest market share. In the car hire business, the challenger actually advertises this fact: for many years Avis used the slogan “We’re number two. We try harder.” Market challengers can either attempt to attack the leader, or to increase their market share by attacking various market followers.
The majority of companies in any industry are merely market followers which present no threat to the leader. Many market followers concentrate on market segmentation: finding a profitable niche in the market that is not satisfied by other goods or services, and that offers growth potential or gives the company a differential advantage because of its specific competencies.
A market follower which does not establish its own niche is in a vulnerable position: if its product does not have a “unique selling proposition” there is no reason for anyone to buy it. In fact, in most established industries, there is only room for two or three major companies: think of soft drinks, soap and washing powders, jeans, sports shoes, and so on. Although small companies are generally flexible, and can quickly respond to market conditions, their narrow range of customers causes problematic fluctuations in turnover and profit. Furthermore, they are vulnerable in a recession when, largely for psychological reasons, distributors, retailers and customers all prefer to buy from big, well-known suppliers.
Ex. 1. Find words in the text which mean the following.
1) a company’s sales expressed as a percentage of the total market;
2) short-term tactics designed to stimulate stronger sales of a product;
3) the situation in which there is only one seller of a product;
4) companies offering similar goods or services to the same set of customers;
5) a short and easily memorized phrase used in advertising;
6) the division of a market into submarkets according to the needs or buying habits of different groups of potential customers;
7) a small and specific market segment;
8) a factor which makes you superior to competitors in a certain respect;
9) a business’s total sales revenue;
10) a period during which an economy is working below its potential.
Ex. 2. Which of the following three paragraphs most accurately summarizes the text, and what is wrong with the others?
First summary:
In most markets there is a definite market leader, with the largest market share, which frequently helps other firms to introduce new products. In many cases, there is also a market challenger, which wants to replace the leader, and various market followers, which seek out particular niches that do not interest the leader. Other followers merely imitate the products of larger companies, but this is a dangerous strategy during recessions.
Second summary:
In most markets there is a leader that strongly influences other firms in the introduction of new products, price changes, promotions, and so on. There is frequently also a market challenger, with the second-largest market share, which can attempt to increase its market share by attacking either the leader or some market followers. Market followers concentrate on profitable niche products that are in some way differentiated from the products of larger companies.
Third summary:
The first company in a particular market nearly always becomes the market leader, a position it will try to keep by regularly attacking distinct market challengers and followers. Most followers can either concentrate on small market segments or niches, or follow the safer strategy of imitating the leader’s
products.
WRITING
Rearrange the following sentences and part-sentences to make up a short text about market concentration in writing. Make use of the following guidelines:
– Begin with a paragraph containing arguments both against and in favour of monopoly.
– Continue with a paragraph defending or justifying market concentration.
– End with a paragraph arguing that monopolies are always short-lived, and so not a problem.
A. According to this position, the government only needs to ensure that there is no monopoly over important inputs, because there will never be a monopoly of scientific or artistic genius or business ideas.
В. According to this view, market concentration arises naturally from a few successful firms growing larger as a result of increased efficiency, innovation, and economies of scale in production, distribution, R&D, capital financing, and so on.
С. a counter argument is that erecting barriers – for example, by process innovation, product differentiation, persuasive advertising, or pricing policy – in order to be successful and to make competitors less successful, is a normal part of rivalry and competition.
D. Although some people argue that any barrier to competition will inevitably lead to inefficiency,
E. An example here would be telecommunications.
F. and businesses facing no competition have no incentive to find ways to reduce costs.
G. Even the profits made by a natural monopoly will be temporary, because they are an incentive for entrepreneurs to discover and implement new low-cost technologies.
H. For example, although entrepreneurs introduce new products and techniques and open up new markets, their profits are soon competed away by rivals.
I. it is right that inventors should be granted a temporary monopoly as a reward for innovation or discovery.
J. monopolists are always able to make excessive profits,
К Some people even argue that monopolies are always temporary and consequently not a problem.
L. The arguments against market concentration, or at least against monopoly, are obvious:
M. The only common argument in favour of monopoly concerns patents:
TRANSLATION
A. Translate from English into Russian.
Market
A market is an arrangement through which buyers and sellers meet or communicate for the purpose of trading goods or services. Markets are a way in which buyers and sellers can conduct transactions resulting in mutual net gains that otherwise wouldn’t be possible. Many market transactions are conducted without buyers and sellers actually meeting at a particular location. For example, you can browse through catalogues or magazine advertisements to see what various sellers are offering. If you find something you like, you can order it by mail or telephone, without face-to-face contact with the seller. You can also hire an intermediary to carry out a transaction for you.
The purpose of a market is to make information available on the goods and services sellers are willing to sell and buyers want to purchase. This exchange of information is the basis for determining prices which in turn influence the actual amount of goods and services exchanged. Prices are a major determinant of the choices we make as both buyers and sellers. Market prices play a vital role in coping with the problem of scarcity because they ration available amounts of goods and services.
To analyze the way markets operate, we first must understand the concept of supply and demand. Supply and demand analysis explains how prices are established in markets through competition among buyers and sellers and how those prices affect quantities traded.
B. Translate from Russian into English.
1. Японские товары имеют репутацию высококачественных.
2. Главная забота отечественных производителей – повышение качества изделий.
3. Производитель гарантирует доставку товара в любую часть страны.
4. Внешний вид изделия имеет большое значение для его конкурентоспособности.
5. Изучение рынка очень важно для успеха в бизнесе.
6. Начиная новое дело, необходимо провести тщательное изучение рынка сбыта товаров и услуг.
7. Многие покупатели оценивают качество товара по его надежности и долговечности.
LISTENING
Ex. 1. Listen to a cycle manufacturer discussing an agreement with a new agent. Then answer these questions.
1. Which of these points did the two sides agree on during the negotiation?
a) the type of relationship they wish to have;
b) who sets prices;
c) payment of commission;
d) who pays for advertising and promotion.
2. Why does the agent want the contract to be longer than two years?
SPEAKING
A. Useful language: Negotiating.
| Diplomatically giving bad news I’m sorry, we weren’t able to agree on this. I’m afraid your price is rather high. | Using speculative language It would probably arrive late. It could be a problem. It may be difficult to deliver. We might not be able to do that. | Using a past form to express disappointment We were hoping for… We were expecting… |
Ex. 1. Match the phrases on the left with the more diplomatic phrases on the right.
| 1) We must talk about price first. 2) There’s no way we can give you any credit. 3) I want a discount. 4) I won’t lower my price. 5) Can you alter the specifications? 6) Your price is far too high. | a) Your price seems rather high. b) Unfortunately, I can’t lower my price. c) Could you possibly give me a discount? d) I’m afraid we can’t give you any credit. e) I think we should talk about price first. f) I wonder if you could alter the specifications. |
Ex. 2. Listen to these extracts from the negotiation. Complete the sentences below. Decide whether the speakers are being diplomatic (D) or not diplomatic (ND).
1. A non-exclusive contract …… for us, too.
2. No, that’s …… for us.
3. We know the market conditions …… than you.
4. I …… rate of 15% on all the revenue you obtain.
5. Fifteen percent is too low. We …… 20%.
6. We …… with this.
7. How much ……?
8. We …… about the commission later.
9. ……, with a new distributor we prefer a shorter period.
10. It …… at least three years.
Ex. 3. Role play the negotiation below between a shop owner and a chocolate manufacturer. Be diplomatic.
| Shop owner | Chocolate manufacturer |
| · You want to order 50 boxes of deluxe chocolates at the quoted price. · You want a 20% discount. · You want 30 days’ credit. · You want delivery in two weeks. | · You get a bonus if the order is over 100 boxes. · You don’t give a discount for orders of less than 100 boxes. · You want payment on delivery. · You can deliver in three weeks. |
B. Discuss the following issues:
1. Which firm is likely to be a price maker, a monopolist or a firm in perfect competition? Why?
2. What are the advantages/disadvantages of monopoly?
3. How might firms in monopolistic competition compete with each other?
4. Why might oligopolists use promotion rather than price changes as the main form of competition?
5. What examples of basic market structures can you give in the economy of Belarus?
6. What examples of market leaders, challengers and followers can you give in the world soft drink industry?
VOCABULARY
acquisition n – получение, приобретение
challenger n – претендент
market ~ – рыночный претендент
competition n – конкуренция, соревнование
monopolistic ~ – монополистическая конкуренция
non-price ~ – неценовая конкуренция
pure ~ – чистая конкуренция
competitor n – конкурент, соперник; участник рынка
cost n – цена; стоимость
total marginal ~ – общая (совокупная) предельная стоимость
costs – издержки, затраты, расходы
facilities n – средства, оборудование
follower n – последователь, идущий за лидером, сторонник
household n – дом, домашнее хозяйство
market n – рынок, сбыт
~ conditions – состояние (конъюнктура) рынка
~ leader – лидер рынка, рыночный лидер (компания, занимающая самую большую долю рынка)
~ niche – (рыночная) ниша (небольшой сегмент рынка, который может обслуживать фирма, и который в определенной степени свободен или защищен от конкуренции)
~ share – доля рынка (удельный вес компании в общем объеме рыночных продаж)
~ structure – рыночная структура
monopoly n – монополия
oligopoly n – олигополия
price n – цена
premium ~ – дополнительная цена
pricing n – ценообразование
competitive ~ – конкурентное ценообразование
cost-plus ~ – ценообразование по принципу «издержки плюс прибыль»
value ~ – установление цен по ценности товара
product n – продукт
~ differentiation – увеличение числа модификаций продукта; индивидуализация продукции
differentiated ~ – дифференцированный продукт
standardized ~ – стандартный продукт
production n – продукция, производство
over ~ n – перепроизводство, затоваривание
retail n – розничная продажа; розничный торговец syn: retailer
at ~ – в розницу
~ price – розничная цена
~ store – магазин розничной торговли
reduce v – уменьшать, снижать
reduction n – спад, снижение (цен); сокращение, уменьшение
restriction n – ограничение
artificial ~ – искусственное ограничение
standardized adj – стандартный
stipulate v – обусловливать
substantial adj – значительный, существенный
~ barrier – существенный барьер
substitute n – заменитель
close ~ – близкий заменитель
sufficient adj – достаточный
unique selling proposition (USP) – уникальное торговое предложение (УТП)
GLOSSARY
· Barriers to entry that prevent new firms from entering an industry are (1) ownership of an essential resource, (2) legal barriers, and (3) economies of scale. Government franchises, licenses, patents, and copyrights are the most obvious legal barriers to entry.
· Monopolistic competition is a market structure characterized by (1) many small sellers, (2) a differentiated product, and (3) easy market entry and exit. Given these characteristics, firms in monopolistic competition have a negligible effect on the market price.
· Monopoly is a single seller facing the entire industry demand curve. The monopolist sells a unique product, and extremely high barriers to entry protect it from competition.
· Non-price competition refers to competition among firms that choose to distinguish their product via non-price means: style, delivery, location, atmosphere, promotions, etc.
· Oligopolies are mutually interdependent because an action by one firm may cause a reaction from other firms.
· Oligopoly is a market structure characterized by (1) few sellers, (2) a homogeneous or a differentiated product, and (3) difficult market entry.
· Pure competition is market characterized by a large number of independent sellers of standardized products, free flow of information, and free entry and exit. Each seller is a “price taker” rather than a “price maker”.
4. MACROECONOMICS
Дата добавления: 2015-10-28; просмотров: 325 | Нарушение авторских прав
| <== предыдущая страница | | | следующая страница ==> |
| Supply and Demand | | | Gross Domestic Product |