CANKAYA UNIVERSITY OFFICE OF BASIC AND ELECTIVE COURSES

-ENGLISH UNIT-

THE CHANGING WORLD ECONOMYFOR ENG 205 COURSE

UNIT 5

How important is oil in the economy?

Oil is vital to the world economy and the world consumption of oil, driven by countries such as India and China, is set to rise significantly.

Since the horse and carriage gave way to the car as the main method of transportation oil has been vitally important to the world economy. Its importance has risen to the extent that in a world suddenly without oil, all the minor and major distribution systems that allow economic transactions on a more than local basis would fail and the world economy would collapse.

The Importance of Oil

The Current Level of Oil ConsumptionAccording to the EIA, the world currently consumes 85.64

million barrels of crude oil daily – roughly equivalent to every single person on the planet using 2 litres of oil a day. With the current market prices of a barrel of oil being $51, global consumption of oil costs $4.3 billion every single day, or 62 cents for every person.

Of course, the global distribution of oil consumption is not evenly spread out as developed and oil-rich states consume far more oil than less developed states. Also, all of this oil is not simply consumed with no end product. Oil is involved in the manufacture of a large number of everyday items, such as plastics, asphalt, or fertilizers.

Pre-reading vocabulary itemsemergence (n.): when sth begins to be known or noticed Synonym: appearanceeg: The emergence of Turkey as a world leader will not surprise some

people when we think about the role she takes concerning the Middle East, especially the “evil” regime of Bashar Al Asad.

independent (adj.): an independent country is not controlled or governed by another country

Synonym: sovereigneg: Is Turkey really independent? That is the question to be asked by

every university student in Turkey. If you cannot ask such a question, your whole education, in other words your colourful diploma, turns into a sheet covered with dull, tiny, and silent letters.

Pre-reading vocabulary itemsprosperity (n.): when people have money and everything that is

needed for life Synonyms: well-being, wealth, welfareeg: A time of economic prosperity envelopes Iraqi people thanks to

American invasion.

urge (v.): to strongly suggest that someone does something Synonym: encourageeg: I got a note from Mr. and Mrs. Smith urging me to get in touch.eg: She urged that a referendum should be held by February.

Pre-reading vocabulary itemsstability (n.): the condition of being steady and not changing Synonym: balancee.g: If Turkey attacks Syria with America, it can threaten the

peace and stability of the region

supply (v.): to provide people with sth they need or want, especially regularly over a period of time

e.g: Money for the project supplied the university.e.g: An informer supplied the police with the names of those

involved in the terrorist attacks.

Pre-reading vocabulary itemsdemand (n.): the need or desire that people have for particular

goods or servicese.g: Production is increasing faster than demand.e.g: The demand for new housing will be a very important problem

after the Van Earthquake.

commodity (n.): a product that is bought and solde.g: Agricultural commodities are very expensive.e.g: Commodity prices fell sharply.

Pre-reading vocabulary itemsexchange (n.): the act of giving somebody something and

receiving something else from them Synonym: swap, switche.g: An exchange of political prisonerse.g: I’ve offered to paint the kitchen in exchange for a week’s

accommodation. jeopardise (v.): to risk losing or spoiling sth important Synonyms: put in danger, risk, hazarde.g: Nowadays, Turkey jeopardises its relationships with Syria,

Iran and Russia because of the NATO missile shield in Turkey.

Pre-reading vocabulary itemsbolster (v.): to improve sth Synonym: reinforcee.g: His efforts to bolster his career

sag (v.): to become weaker and less valuable Synonyms: sink, drop, declinee.g: We have serious attempts to revive the sagging economy.

apparent (adj.): easy to notice (syn. obvious)e.g: It will become apparent that Turkey has a variety of

problems.

Comprehension Check1) Why do you think the world’s economic and

political system has changed suddenly since World War II?

Answer: Due to the emergence of more than 100 new nations

2) How did the new countries affect the industrialised countries? What was their common desire?

Answer: Their growing role in the world economy have led the developing countries to act with remarkable unity. Their common desire was economic growth and development.

Comprehension Check3) How can economic and social crisis in

developed countries can affect developing countries?

Answer: Exports have declined, the prices of the manufactured products they import have risen

4) What are the factors that have bad influence on developing nations?

Answer: Slow growth, high unemployment, and inflation in developed nations

Comprehension Check5) According to the text, what does “slowdown”

refer to?Answer: Lower prices and less economic

growth

6) Why is the word “advanced” written in speech marks?

Is it really advanced?Answer: This sentence is ironic. These

countries are advanced in theory but not in practice.

7) What is the purpose of the NIEO?Answer: It seeks to improve terms of trade

between developed and developing nations and to provide better access to technology and capital.

TRUE-FALSE1- TRUE

2-TRUE

3-FALSE

4-TRUE

Cohesive links1) The Third World countries (the bloc of some

120 developing countries)

2) Post World War II

3) Developing countries

4) Commodities

5) 25 tons of rubber

Text wording1) emergence ........... occurrence

2) endowments ........ money, property

3) apparent ........ obvious

4) bolster .......... support, encourage

Make sentencesIndustrialise

Stability

Unity

Prosperity