Английский язык. Практический курс для решения бизнес-задач - Нина Пусенкова

7. To make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, re-packing, polishing, labeling.

8. This term relates to the form of settlement whereby companies simply invoice their customers and expect to receive payment in due course, usually 30, 60 or 90 days after invoice date.

9. An individual, firm, society, company, or corporation.

10. Basic materials which are needed for the manufacture of goods, but which are still in a natural, unrefined or unmanufactured state.

11. A part or a sub-assembly or assembly for substitution, that is ready to replace an identical or similar part or sub-assembly or assembly. It includes a component or an accessory.

Terms:

jobbing, capital goods, person, bill of exchange, consumables, open account trading, spare part, consumer goods, manufacture, raw material, advance payment

Exercise 3. You are a journalist writing for The Moscow Times and you are to interview a WTO official about the policies and goals of this organization. Make a dialogue between these two individuals using the following briefing materials.

The World Trade Organization (WTO), established on January 1, 1995, is the only global international organization dealing with the rules of trade between nations. It was created by the Uruguay Round of negotiations over a 14-year period and has 144 member countries (as of January 2002). At the heart of the WTO are the various agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. These agreements cover a range of topics:

–Reductions in tariffs;

–Fairer competition in agricultural trade;

–Textiles trade;

–Trade in services;

–Protection and enforcement of intellectual property;

–Issues related to antidumping, export subsidies, and safeguards; and

–Other non-tariff barriers.

The goal of the WTO is to help producers of goods and services, exporters, and importers conduct their business. The agreements have three main objectives:

–To help trade flow as freely as possible,

–To achieve further liberalization gradually through negotiation, and

–To set up an impartial means of settling disputes.

Exercise 4*. Fill in the blanks using terms given below.

Russia’s WTO Accession:

What are the macroeconomic, sector, labor market and household effects?

Accession to the WTO is likely to generate substantial benefits for Russia – about 7% of the value of……. in the medium term and considerably more in the long term. These benefits would come from increased…… by…….. service providers, due to……. to……. the services sectors to foreign investors; from increased……. due to an inflow of imported technology as the result of a reduction in Russian………; and from the improved treatment of Russian exporters in……… cases. The main export sectors are likely to experience the greatest…….. Sectors that export little and that have relatively high……… are likely to……. in the medium term. In the long term, an improvement in the……… should expand the capital stock and incomes.

The vast majority of……… will gain from WTO accession. Government…….. are crucial in helping with the short-run…….. impact from the accession, especially for the poorest members of society. Despite gains in the medium to long term, during a……… period it is possible that many individuals will lose. There will be………workers who have been……… and will need to find new employment. These workers will suffer losses from transitional unemployment and are likely to…….. expenses related to…….. or………. Thus, despite the likely substantial improvement in the……….. for almost all Russian after accession to the WTO and after adjustment to the new equilibrium, the transition will require a strong role for……….

WTO accession is an important step toward an open economy model of development. These results are consistent with international experience of the past 20—30 years that shows that rapid and……….. economic growth has occurred only in countries that progressively liberalized import protection, and who provided……… to exporters that……… the tax that import protection imposes on exports.

Source: Thomas Rutherford, University of Colorado, David Tarr, The World Bank (abridged)

Terms:

sustained, offset, safety nets, relocation, adverse, public policy, transition, return on investment, consumption, unskilled, tariff barriers, living standards, FDI, incur, households, contract, multinational, commitments, liberalize, productivity, antidumping, expansion, import protection, displaced, retraining, incentives

Exercise 5. Translate into English.

Длинный минус

Торговый баланс РФ скоро станет отрицательным. Для большой развивающейся страны это довольно неприятно

Положительное сальдо счета текущих операций – редкое явление. В 2007 г. из 181 страны лишь 65 имели положительный баланс. Россия по объему внешнего профицита была на 5-м месте. Но это ненадолго.

Среднесрочные перспективы России вызывают опасения. МЭРТ полагает, что сальдо счета текущих операций РФ станет отрицательным и закрепится на уровне 2% ВВП уже через 2-3 года. Хотя, несомненно, что положительное сальдо счета текущих операций будет снижаться, нет уверенности, что Россия может себе позволить дефицит по внешним операциям.

В реальном выражении баланс товаров и услуг снижается с 2004 г., когда на фоне быстрорастущего спроса и укрепления рубля реальный объем импорта увеличивался быстрее, чем объем экспорта. В то же время благодаря инфляции цен на топливо и металлы номинальный (выраженный в долларах по текущим ценам) торговый баланс увеличивался с 2002 по 2006 г. В прошлом году этот показатель немного снизился, но из-за скачка нефтяных цен в этом году он снова вырастет. Тем не менее, даже если цена на нефть стабилизируется на нынешнем уровне, торговый баланс неизбежно начнет снижаться. А за ним последует и сальдо текущих операций, чему будут немало способствовать растущие затраты на обслуживание внешнего корпоративного долга.

На первый взгляд внешний дефицит в 2% ВВП не кажется чрезмерным. Для сравнения, в прошлом году такой или даже больший дефицит имели 105 стран. Однако более детальный анализ показывает, что это могут позволить себе либо развитые страны с хорошим инвестиционным климатом вроде США, Великобритании, Испании, Италии, Австралии, либо небольшие развивающиеся страны, которым для покрытия дефицита в среднем достаточно $2,5 млрд.

Россия же относится к группе больших развивающихся стран: уже сегодня 2% ВВП составляет $35 млрд, а к 2018—2020 гг., по оценкам МЭРТ, эта сумма вырастет до $100 млрд. Попытка получить приток капитала в таких объемах означает конкуренцию именно с развитыми странами, которые по сравнению с Россией обладают несомненными преимуществами – высоким качеством общественных институтов и надежной защитой прав инвесторов.

Тем временем предложение на мировом рынке капитала может снизиться. Ведь любая страна способна кредитовать остальной мир лишь в пределах суммы собственного положительного сальдо по счету текущих операций. А если цены на нефть стабилизируются или начнут снижаться, сальдо счета текущих операций будет уменьшаться и в других странах-экспортерах топлива. Это еще один аргумент против того, что России будет в состоянии в течение длительного времени финансировать столь большой дефицит.

Что это значит для российской экономики? Очевидно, давление на валютный рынок возрастет, и Банк России будет вынужден отойти от нынешней политики таргетирования рубля против корзины валют. Курс рубля будет отпущен в свободное плавание и, по нашим прогнозам, может девальвироваться на 3-4% в номинальном выражении. Этого достаточно, чтобы реальный рубль стабилизировался. Банк России потеряет контроль над рублем, зато приобретет больше влияния в денежно-кредитной политике: его роль как кредитора последней инстанции значительно возрастет.

Источник: Антон Струченевский,

старший экономист ИК «Тройка Диалог»,

Smart Money, 21 апреля 2008 г.

Lesson 27

Foreign Exchange Market

Read and translate the text and learn terms from the Essential Vocabulary.

What is FOREX?

FOREX (FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. FOREX was launched in the 1970s, when free exchange rates were introduced.

Only market participants determine the price of one currency against the other proceeding from supply and demand. As far as the freedom from any external control and free competition are concerned, FOREX is a perfect market. It is also the biggest liquid financial market. Money masses in the market constitute from 1 to 1.5 trillion US dollars a day. Transactions are conducted all over the world via telecommunications 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday.

FOREX is an objective market, because if some of its participants would like to change prices they would have to operate with tens of billions dollars. That is why any influence by a single participant in the market is practically out of the question. The superior liquidity allows the traders to open and/or close positions within a few seconds. The time of keeping a position is arbitrary and has no limits: from several seconds to many years. Although the daily fluctuations of currencies are rather insignificant, you may use the credit lines, that are accessible even to currency speculators with small capitals ($1,000—5,000), where the profit may be impressive.

The idea of marginal trading or leverage trading stems from the fact that in FOREX speculative interests can be satisfied without a real money supply by using trading with a margin deposit. This decreases overhead expenses for transferring money and gives an opportunity to open positions with a small account in US dollars, buying and selling a lot of other currencies. In marginal trading, each transaction has two obligatory stages: buying (selling) of currency at one price (opening the position), and then selling (buying) it at another (or at the same) price (closing the position).

Opening a position, a trader furnishes a deposit sum from 0.5 to 4 % of the credit line granted for the transaction. So, in order to buy or sell USD 100,000 for Japanese yens, you will not need the whole sum, but only from USD 500 to 2000 depending on your policy of controlling risks. When the position is closed, the deposit sum returns, and calculation of profits or losses is done. Marginal trading in an exchange market uses lots. 1 lot equals approximately $100,000, but to open it, it is necessary to have only from 0.5% to 4% of the sum.

For example, you have analyzed the situation in the market and come to the conclusion that the pound will go up against the dollar. You open 1 lot for buying the pound (GBP) with the margin 1% (1:1000 leverage) at the price of 1.49889 and wait for the exchange rate to go up. Some time later your expectations become true. You close the position at 1.5050 and earn 61 pips (about $405).

The major currencies traded in FOREX, are Euro (EUR), Japanese yen (JPY), British Pound (GBP), and Swiss Franc (CHF). All of them are traded against the USD.

While trading you can fix your profit or cut off your losses according to the orders Limit and Stop. Limit is set up higher than the current meaning of the price. Stop is set up lower than the current meaning of the price. With these commands the positions are closed without additional orders when the price reaches the agreed level.

In order to assess the situation in the market a trader has to be able to use fundamental and/or technical analysis, as well as to make decisions in the constantly changing current of political and economic information. Most small and medium players in financial markets use technical analysis. Technical analysis presupposes that all the information about the market and its further fluctuations is contained in the price chain. Any factor, that has some influence on the price, be it economic, political or psychological, has already been considered by the market and included in the price.