Vocabulary List. 1. competition — конкуренция

1. competition — конкуренция

syn. rivalry, contest

2. pure competition – чистая конкуренция

syn. perfect competition

3. direct competition – прямая конкуренция

4. indirect competition – косвенная конкуренция

5. remote — отдаленный

6. to interfere with — вмешиваться

7. incentive — стимул

8. to lower — понижать

syn. to drive down

9. monopoly — монополия

10. oligopoly — олигополия

11. wasted effort — напрасно потраченные усилия

12. to make investments (in) — вкладывать средства

13. to result in smth — иметь результатом что-либо

14. to substitute — заменять

15. available — имеющийся в наличии

16. to encourage — поощрять

17. to be subject to something – подлежать чему-либо, подвергаться

18. to be restricted — быть ограниченным

syn. to be limited

19. to prevent — предотвратить

20. to outdo — перегнать

21. to reduce — сокращать

22. viable — жизнеспособный

23. to be sanctioned by the state — быть разрешенным государством

Notes

1. Competition occurs naturally between living organisms — конкуренция естественно существует между живыми организмами...

2. recognition — зд. признание

3. the pillar of capitalism — зд. основы капиталистической системы

4....only a fraction become successful — зд. Лишь малая часть достигает успеха

5. internal "brand versus brand" rivalry — внутренняя конкуренция между брендами

6. to gain benefits — зд. получать премии

Ex 1. Suggest the Russian equivalents:

an environment with limited resources; to interfere with the performance of their competitors; to keep prices close to costs; sophisticated technologies; products that are close substitutes; to champion the brand; economical competition; to be legally prohibited; protectionist measures; to be regulated to a greater or lesser extent; a lack of viable substitute goods.

Ex 2. Fill in the gaps with the words and expressions from the text.

1. Competition occurs naturally between living organisms which …… with ……

2. Competition can be remote, when players are …… from each other.

3. Seen as the …… of capitalism in that it may ……, encourage ……, or ……, competition is touched as the …… upon which capitalism is …….

4. The greater selection typically causes …… for the products.

5. The next form is …… or indirect competition, where products that are …… for one another complete.

6. The company was organized ……, with each brand ……, including a dedicated group of employees willing ……

7. ……, …… or other protectionist measures may also be instituted by government in order to …… or …… competition.

8. A …… monopoly or legal monopoly is …… by the state, often to provide an …… to invest in a risky venture.

Ex 3. Find in the text the English equivalents for the following:

конкурировать за признание и богатство; быть изолированными друг от друга; снижать цены и совершенствовать продукцию; сокращать уровень цен; близкий к уровню издержек; стимулировать эффективность; оправдывать что-либо; более обширный выбор; приводить к напрасно потраченным усилиям и увеличению издержек; быть близкими заместителями; деньги, имеющиеся у семьи в наличии; подразделения компании; правительственная монополия.

Ex 4. Match each term with the appropriate explanation.

competition, monopoly, oligopoly, internal competition, incentive, pure monopoly

1. Something that gives one a desire to work harder, or to do something that he hasn’t done before.

2. A market in which there are only a few sellers.

3. The situation in which one seller or a group of sellers acting together can control the market price.

4. The situation in a market in which there is only one seller of a commodity and he therefore faces no competition.

5. Rivalry within the company, e.g. between its branches or divisions.

6. Rivalry between business concerns in the same market, usually in selling at the lowest price or in giving better quality or generally offering better value for money.

Ex 5. Answer the questions and do the assignments.

1. What is implied on the notion “competition” generally?

2. What role does competition play in the market?

3. Expand on advantages of competition for firms and consumers.

4. Are there any disadvantages of competition for those involved?

5. How has economic competition been classified? Characterize each form.

6. Give examples of internal competition.

7. What are the cases when competition may be legally restricted or prohibited? How is the pure competition regulated?

8. What does the notion “monopoly” imply?

Ex 6. Find in the text the words and word combinations that refer to the following notions and comment on them.

1) direct competition

2) substitute or indirect competition

3) budget competition

4) internal competition

5) monopoly

Ex 7. Comment on the following statements:

- Competition is … an important force of the market.

- Competition is touted as the foundation upon which capitalism is justified.

- The psychological effects of competition may result in harm to those involved.

- Competition often is subject to legal restrictions.

Text B

Competition:

1. A form of market structure in which the number of firms supplying the market is used to indicate the type of market it is, e.g., perfect competition (many small competitors), oligopoly (a few large competitors).

2. A process whereby firms strive against each other to secure customers for their products, i.e., the active rivalry of firms for customers using price variations, product differentiation strategies, etc. From a wider public-interest angle, the nature and strength of competition has an important effect on market performance and hence is of particular relevance to the application of competition policy.

Perfect competition is referred to as a model of industrial structure in which many small firms compete in the supply of a single product. Three primary features characterize a perfectly competitive industry:

- there is a multitude of firms (buyers as well as sellers) all too small to have any individual impact on market price. Therefore, marginal revenue and price are equal,

- all firms aim to maximize profit

- firms can costlessly enter and exit the industry. Also, it is assumed that the outputs traded are homogeneous.

Perfect competition is economically efficient in three ways:

(a) In the short run, this is efficient for the allocation of resources, because it ensures that no consumer will be deterred from buying something which he values more than it cost to make.

(b) In the long run, freer entry and exit ensures new entrants will be attracted into any industry where high profits are made.

(c) Again, in the long fun, perfect competition ensures minimum-cost production.

Although the features of perfect competition make it look a poor description of modern industry, it is a realistic description of world commodity markets where many traders deal in a homogeneous product. Moreover, its very powerful results indicate that the achievement of even a partially competitive market can be advantageous. Thus, the simple perfect competition model provides a good starting point for illuminating the forces underlying the real behaviour of firms.

Contestability is referred to as the degree of ease with which firms can enter or leave an industry. A perfectly contestable industry is one in which, as in free competition, there are no barriers to entry at all. Unlike perfect competition, however, perfect contestability implies nothing about how many firms currently exist in the industry - it is possible for an efficient monopolist to exist while no barrier to entry prevents other firms from competing. Contestability theory was stimulated by W. J. Baumol in the early 1980s. He showed that the attractive features of perfect competition could be achieved merely by the threat to incumbent firms that entry would occur should large profits be made.

The threat of entry should induce marginal-cost pricing and efficient production. In practice, entry barriers do exist, and because incumbent firms can often scare potential entrants away from entering, discipline that potential competition provides is considered less effective than that of actual competitors.

Vocabulary List

1. to indicate – указывать, определять

2. product differentiation – дифференциация продукции

3. application of competition policy – применение конкурентной политики

4. to be deterred from doing smth – удерживаться от чего-либо, бояться

5. in the short run – в краткосрочной перспективе

6. in the long run – в долгосрочной перспективе

7. starting point – отправная точка

8. contestability – конкурентоспособность

Notes

1. to strive against each other – бороться друг с другом

2. to secure customers – зд. привлечь покупателей

3. from a wider public-interest angle – с точки зрения интересов общества

4. costlessly – без потерь, без издержек

5. underlying – лежащий в основе

6. incumbent firms – зд. компании, уже занявшие места на рынке

7. …should large profits be made – зд. если есть возможность получения высоких прибылей

8. homogeneous products – однородные продукты

9. marginal revenue – предельный доход

10. marginal-cost pricing – ценообразование на основе предельных издержек

11. actual competitors – реальные конкуренты

Ex 1. Suggest the Russian equivalents:

active rivalry of firms for customers; price variations; product differentiation strategies; market performance; new entrants; minimum-cost production; entry barriers; an individual impact on market force; costlessly enter and exit the industry; the outputs traded.

Ex 2. Fill in the gaps with the words and expressions from the text.

1. Competition is referred to as a process whereby firms …… to …… for their products.

2. In the …… run, perfect competition is efficient for the ……, because it ensures that no consumer will …… buying something which he values more than it …… to make.

3. The simple perfect competition model provides a good …… for illuminating the forces …… the real behavior of firms.

4. It is possible for an efficient …… to exist while no …… prevents other firms from competing.

Ex 3. Find in the text the English equivalents for the following:

определить тип рынка; изменение цен; результаты деятельности рынка; непосредственно относиться к; размещение ресурсов; торговать однородной продукцией; никаких препятствий для входа; эффективное производство; реально существующие конкуренты.

Ex 4.Match each term with the appropriate explanation.

perfect competition, free competition, differentiation, monopolistic competition, contestability

1. Making one’s product as different as possible from its competitors by means of brand names, attractive packaging, etc. so that buyers may recognize and buy the product of their choice.

2. The degree of ease with which firms can enter or leave an industry.

3. A state of competition in which the price of a good is the same throughout the market because buyers and sellers have a perfect knowledge of market conditions, there is complete freedom of movement of factors of production from one industry to another, and there are no transport costs.

4. An economy in which there is complete freedom from interference by the state, and in which prices are more according to the forces of supply and demand.

5. That form of competition where sellers can influence buyers or appearance of the goods they produce. (Syn. Imperfect competition)

Ex 5. Answer the questions and do the assignments.

1. What does the notion “competition” signify?

2. Enumerate the features characterizing a perfectly competitive industry. Expand on each.

3. Is perfect competition economically efficient? In what ways?

4. What does contestability theory imply?

5. Show the difference between perfect competition and contestability.

Ex 6.Find in the text above words or phrases that mean:

a. the way in which a market is organized;

b. a type of market structure that is characterized by few firms and many buyers, homogenous or differentiated products, difficult market entry;

c. an element of market conduct that denotes the ways in which suppliers attempt to distinguish their own product from those of competitors;

d. the efficiency of a market in utilizing scarce resources to meet customers' demands for goods and services; that is, how well a market has contributed to the optimization of economic welfare;

e. a policy concerned with promoting the efficient use of economic resources and protecting the interests of consumers;

f. the addition to total revenue from the sale of one extra unit of output;

g. the money value of a unit of a good, service, asset or factor input;

h. the setting of a price for a product which is based upon the marginal cost of producing and distributing it.

Ex 7. Increase your vocabulary.

A. Study the word combinations with the word “competition”. Use them is the sentences of your own.

- to meet competition – выдерживать конкуренцию

- keen competition – острая конкуренция

- animated competition – оживленная конкуренция

- (un)workable competition – (не)эффективная конкуренция

- unrestrained competition – неограниченная конкуренция

- to be in competition with somebody – конкурировать с кем-либо

- aggravation of competition – обострение конкуренции

- beyond competition – вне конкуренции

- intrabranch competition – внутриотраслевая конкуренция

- competitive prices – конкурентные цены

Other adjectives: latent, fierce, cut-throat, (un)fair, free, global, active, actual, predatory, intraindustry, interindustry, (un)healthy.

Verbs: to face, to defy, to win, to eliminate, to meet with, to stand, to sustain, to provoke, to enter in, to avoid.

B. Translate the sentences:

1. В результате обострения конкуренции на рынке мобильной связи цены на услуги операторов упали.

2. Продукция этой фирмы вне конкуренции.

3. В странах с рыночной экономикой компании конкурируют между собой за потребителей и долю рынка.

4. Не всем компаниям удается выдерживать ожесточенную конкуренцию.

5. Войдя на рынок, наша фирма столкнулась с недобросовестной конкуренцией со стороны компаний, производящих подобный товар гораздо более низкого качества.

6. Чтобы избежать конкуренции в своем сегменте рынка, нашей компании пришлось расширить ассортимент продукции.

7. Внутриотраслевая конкуренция привела к заметному понижению цен на продукцию в отрасли.

8. Здоровая конкуренция обычно идет на пользу покупателям: они имеют возможность более широкого выбора товаров по конкурентным ценам.

Writing

Task I. Write a Summary and a Gist of Texts A and B.

Task II. Fill in the tables on different types and forms of competition.

A.

Type (form) of competition	Participants	Features
…	…	…

B.

Type (form) of competition	Advantages	Disadvantages
…	…	…

Speaking

Task I. Comment on the tables from Task II (Writing)

Task II. Make a presentation in class on one of the following topics. Use the appropriate structure and visual aids to make it more interesting.

1. The role of competition in countries’ economic development.

2. Advantages and disadvantages of competition for the economy.

3. Competition between countries.

4. Competition and the state.

Task III. Act as an interpreter for Parts A and B.

1. Предмет нашей дискуссии сегодня – конкуренция и ее роль в функционировании рынка. Мы рады приветствовать профессора Роберта Райха из Университета Брандис (США). Профессор любезно согласился ответить на некоторые вопросы, связанные с такими понятиями, как «рынок» и «конкуренция». Итак, профессор, что же экономисты включают в понятие «рынок»? 2. Мы часто встречаемся с такими выражениями, как «поведение рынка». Что в данном случае имеется в виду? 3. Не могли бы вы подробнее остановиться на понятии “конкуренция”. Ведь не секрет, что природа и интенсивность конкурентной борьбы оказывают большое влияние на характер функционирования рынка, что в свою очередь, определяет так называемую рыночную политику. 4. А может ли модель идеальной конкуренции служить отправной точкой для выявления реальных сил, определяющих поведение компании на рынке? 5. В заключение, профессор, мы бы хотели поблагодарить Вас за исчерпывающие объяснения и выразить надежду на последующие встречи.

First of all I’d like to …   As far as the notion “market” is concerned…     I feel I should point out to you that…     Speaking of this issue I can’t but mention that …     I absolutely agree that …   You must bear in mind the fact that …   I’m sure that it is beyond doubt. As I said previously … I owe you the pleasure of …

Part 2

TextA

Read the text below, answer the questions and do the assignments.

1. Do you agree with the statement that being organized and hardworking, a student can do much better in his studies than those who do not possess these qualities?

2. Name other qualities that can be considered as strong points for students.

3. Name other qualities that can be weak points.

4. Can you refer the strong/weak points mentioned in the text to yourself?

Strengths and Weaknesses of a Student

Being organized is an example of a student’s strength.

A student is responsible for attending classes, taking detailed notes, reading the required materials and studying for tests and examinations. Since each student is different in terms of skills and motivation, the strengths and weaknesses of each student will differ. A student's strengths and weaknesses may also depend on the courses being taken. A student may thrive in one area of study but struggle in another. Nevertheless, there are some qualities that may be considered as uncontestable.

- Being organized

A powerful strength of a student is the ability to remain organized. A student has several courses and reading lists at a single time, so the student must have the ability to stay organized. This can include having a calendar on which the student writes the deadlines of projects, assignments and examinations so she or he does not miss an important deadline. If the student also needs to read chapters or books before attending a class, the student could write each chapter onto the calendar to ensure that all tasks are completed before entering a class or seminar.

- Being hard working

Another strength that is beneficial for a student is the ability to work hard. Working hard can include staying at the library late at night, staying home while other students go out and party on the weekend and completing projects well in advance of their due dates. The ability to work hard is considered a strength for a student, as it can be hard to say no to a party with friends or to remain active at the library once it gets dark outside.

Unfortunately, there are things that can hamper the process of studying, especially if the student gives in to them.

- Lack of motivation

A lack of motivation can severely hurt a student when it comes to completing projects. The lack of motivation is considered a weakness for many students, particularly those who experience a lack of motivation in all school-related items. Although a project may be inspiring and interesting to a student, the lack of motivation can harm a student's productivity. Some students may copy or purchase completed essays or assignments online due to their lack of motivation.

- Procrastination

One of the biggest weaknesses students often face is procrastination, which is finding other smaller things to do even though the student has one or two large tasks at hand. The weakness is giving in to the procrastination, which can include surfing the Internet about related topics, going out for lunch with friends or watching a movie.

Text B

Read the text below and answer the questions.

1. What is implied in the notion “motivation”?

2. Why is it important for a student to be motivated?

3. Do you find the advice given in the text useful? Which recommendations (if any) do you find especially valuable to yourself?

How to be motivated to start studying

When dealing with difficult courses, you should be prepared to spend two or three hours studying after each class session. However, distractions and negative feelings can decrease motivation and lead you away from your academic goals. You’ll need to make adjustments to your mindset and daily schedule if you want to stay motivated during study sessions.

Instructions:

1. Set realistic expectations before you begin the study session. Don’t expect to cram several days’ worth of lessons into single night.

2. Choose a time to begin studying. Set this time on your cell phone or alarm clock. When the alarm goes off, be prepared to drop what you’re doing and get to work.

3. Find a quiet room in the building and lay your materials out on a desk. This room should be clear of distractions such as television or other students.

4. Think positive thoughts before you begin studying. Try to imagine the feeling of accomplishment you’ll earn at the end of the session. If you need more help remaining positive, make a list of your motivators, such as academic goals or the pursuit of a dream job.

5. Divide your study material and homework into sections. For example, if you need to review two chapters from a textbook, break each chapter into two sections.

6. Work on the subjects you dislike first. Alternatively, study the subjects that will take the least amount of time first.

7. Reward yourself for each completed section by taking a short break. During this break, eat your favorite snack food or dance to your favorite song. Set an alarm clock or timer to avoid an extensive break period.

8. Make a study routine and stick to it. Once your study sessions become habitual, you will have an easier time handling them.

Tips & warnings

· Always focus on how much work you’ve completed, rather than how much more you need to finish.

· Seek out a teacher or tutor if you’re having problems in any subject.

· Avoid texting or browsing the Internet while studying. These activities are potential distractions.

Text C

Read the text below and answer the questions and do the assignments.

1. Who is a good student?

2. Do you find the instructions below useful?

3. Do you bear in mind similar (or different) instructions? Do you follow them?

4. Are you a good student?

5. Add some more recommendations to the list, if you can.

How to be a good student

Improve your study habits, motivation and organizational skills to improve the quality of your learning at school, regardless of whether you are just starting a new school year or need a fresh start in the middle of a semester. When you have a reason to care – such as a need for good grades, a desire to qualify for a good school or scholarship or a fascination with the subject material – you can use it to motivate yourself to develop the habits that will make you a good student.

Things you’ll need: Class syllabi; Calendar

Instructions:

1. Minimize your commitments to make sure your schedule is free enough to allow a balanced lifestyle of thorough study, sufficient sleep and regular exercise and recreation. Many people overestimate how much they can get done in a day. If you are overworked, seriously consider dropping an optional club or activity. To overcome fear of disappointing people, remind yourself that a few things done with excellence will be more satisfying than many things left undone.

2. Create a study plan by checking your course syllabuses and charting the due dates of every major assignment from every class in a calendar. Then, work backward to define milestones you need to complete by certain dates. For example, if you have a 10-page research paper due in a month, aim to have a full draft done a week before the due date, 5 pages written by the week before that and an outline the week before that. Treat the milestones like regular assignments to avoid last-minute panic when major deadlines loom.

3. Tell at least one other person about your study plan to create an accountability system. This person can apply unpleasant consequences if you miss your milestones. For example, give your roommate a copy of your calendar and tell him you will give him $10 for each missed deadline. Alternatively, ask a teacher to ask you for the partial completions (such as a copy of your outline or 5-page draft) on the dates you have specified. If you are truly brave, you could even ask your teacher to treat the deadlines you set as real due dates and dock points if you do not meet them.

4. Schedule a specific time each day for studying, reading and working on assignments. Alternate 20 to 30 minutes of working with 5- to 10-minute breaks to keep your mind fresh and alert. Do your best to avoid other activities during your allotted study times; keeping them consistent will begin to build habits and train your brain to move into study mode at certain times and in certain settings.

5. Ask for help if you are having trouble completing assignments on time or understanding a subject. Seek out resources at your school, such as a writing help center or subject-specific tutors. Instead of looking down on you for not understanding, most educators will be eager for the chance to work with a student who cares enough to seek help. Another way to get help is to form a study group with any classmates who are interested.

6. Go the extra mile once your basic requirements are under control. Some ways to do this include checking out extra books from the library to help you gain a deeper understanding of the subject matter, finishing extra-credit assignments, listening to free lectures on the Internet or even offering to assist your teacher as an assistant.

Ex 1. Work in pairs. Make up dialogues discussing the issues of Text A, B, C.

Ex 2. Hold on a discussion in group on strengths and weaknesses of students. Exchange opinion concerning the problems raised and the advice given in the above texts. Express your personal view on the issues being discussed. Share your own experience.

Unit V

Part 1

Money: History and Functions

banknotes, coins, assets, “broad money”, commodity money, a medium of exchange, a store of value, a unit of account, barter economy

Text A

History of the word “money”

Money plays a key role in today’s economies. It is certainly no exaggeration to say that “money makes the world go round” and that modern economies could not function without money. The English word “money” is of Roman origin. In ancient Rome, however, the word “Monetor“ or “Moneta” meant advisor, i.e. a person who warns or who makes people remember. According to some historians, the meaning of the word goes back to a key event in Roman history. A flock of geese in a sanctuary of the Goddess Juno on Capitoline Hill squawked an alarm to alert the Roman defenders during an invasion of the Gauls in 390 B. C. and thus saved them from defeat. In return, the Romans built a shrine to Moneta, the goddess who warns or who gives advice. In 289 B. C. the first Roman mint was built in or near this temple, initially producing bronze and later silver coins. Many of these coins were cast with the head of Juno Moneta on their face. Hence the words “money” and “mint” are derived from her name.

Functions of money

What is money? If we have to define money today, we first think of banknotes and coins. These assets are regarded as money since they are liquid. This means that they are accepted and are available to be used for payment purposes at any time. While it is uncontested that banknotes and coins fulfill this purpose, nowadays a number of other forms of assets exist which are very liquid and can be easily converted into cash or used to make a payment at very low cost. This applies, for instance, to overnight deposits and some other forms of deposits held with banks. Consequently, these instruments are included in those definitions of money often referred to as “broad money”.

The various forms of money have changed substantially over time. Paper money and bank deposits did not always exist. It would therefore be useful to define money in more general terms. Money can be thought of as a very special good that fulfills some basic functions. In particular, it should serve as a medium of exchange, a store of value and a unit of account. Therefore, it is often stated that money is what money does.

In order to better illustrate these functions, consider how people had to conduct their transactions before the existence of money. Without money, people were forced to exchange goods or services directly for other goods or services through bartering. Although such a “barter economy” allows for some division of labour, there are practical limitations and any exchange of goods implies substantial so-called “transaction costs”. The most apparent problem with a barter economy is that people have to find a counterpart who wants exactly the same good or service that they are offering and who is offering what they want in return. In other words: a successful barter transaction requires a mutual coincidence of wants to exist. A baker who, for instance, wanted a haircut in exchange for some loaves of bread would have to find a hairdresser willing to accept those loaves of bread in exchange for a haircut. However, if the hairdresser needed a pair of shoes instead, he would have to wait until a shoe-shop owner wanted to get a haircut in exchange. Such a barter economy would therefore imply substantial costs related to searching for the appropriate counterpart and waiting and stockpiling.

Money as a medium of exchange

To avoid the inconveniences associated with a barter economy, one of the goods can be used as a medium of exchange. This crude form of money used for exchange is then called commodity money. Bartering one good against money and then money against another good might at first glance further complicate transactions. At second glance, however, it becomes clear that the use of one good as a medium of exchange facilitates the whole process to a considerable extent, as the mutual coincidence of wants is no longer required for an exchange of goods and services to take place. It is obvious that one precondition for this particular good to fulfill the function of money is that it is accepted throughout the economy as a medium of exchange, because of tradition, informal convention or law. At the same time, it is obvious that goods serving as a medium of exchange should have some specific technical properties. In particular, goods serving as commodity money should be easy to carry, durable, divisible and their quality should be easy to verify. In a more economic sense, of course, money should be a rare good, as only rare goods have a positive value.

Money as a store of value

If the good used as money maintains its value over time, it can be held for longer periods. This is particularly useful because it allows the act of sale to be separated from the act of purchase. In this case, money fulfils the important function of a store of value. It is for these reasons that commodities that also serve as a store of value are preferable to commodities that only serve as a medium of exchange. Goods such as flowers or tomatoes, for instance, might in principle serve as a medium of exchange. However, they would not be useful as a store of value and would therefore probably not have been used as money. So if this function of money does not work properly (for instance if the good serving as money loses its value over time), people will make use of the value-storing function of other goods or assets or – in extreme cases – even go back to bartering.

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