Module 3

Inflation

Perfect Continuous Tenses.Modal verbs and their equivalents.Causatives: to cause, to make, to force.

Phraseological units and prepositions: in line with; carry on; a number of; no longer; tend to (do) something; in terms of; owing to; because of.

Exercises

1. Translate the sentences into Russian paying attention to the time modifiers. Put special questions to each sentence. 1. The oldest of these machines has been operating for ten years and the newest

for less than a year.2. The manager had been studying the market before he negotiated a

successful deal.3. He had been training for an MBA degree for two years before he became a

global manager.4. By the 15th of September this year he have been working at the laboratory for

three years5. For many years, scientists had been studying the nucleus before they found that

it is possible to split it.6. The enrolment of African-American students reached a peak in the late 1970s

and has been declining ever since.7. For several weeks, the media has been reporting on the decline of the dollar.8. I have been managing many groups of people since I was 25 years old. 9. I have been thinking about studying Japanese for a long time but I have always

held back because I have heard it is such a difficult language.10.Support for the conference has been coming in from many organizations.11.Computers are among the labour-saving devices that have been appearing since

the beginning of the Industrial Revolution. 12. My Personal assistant had been ringing you up from 4 o’clock but the number

was engaged. 13. The plant had been increasing the product output before they reached

significant economies of scale.14. He had been studying French for three years before he started learning

English.

2. Translate into English.1.Еще до того, как Великобритания стала членом ЕС, ее торговля с европейскими партнерами быстро развивалась.

2.Этот сотрудник работает в нашей компании с прошлой осени.3.Он изучал английский язык в течение пяти лет, прежде чем стал изучать немецкий.4. Посетитель пришел сюда час назад и ждет Вас с тех пор.5.В течение десяти лет маркетологи говорят, что компьютеры будут дешеветь на 30% в год.6.Последние годы инвестиции правительства в производственные предприятия уменьшаются.7.К тому времени как Анна получит повышении по службе, она будет работать в этой организации уже пять лет.8.В течение последних десятилетий качество информационных технологий улучшается.9. С 1993 года Россия проводила (pursue) большую организационную работу, прежде чем она смогла вступить в ВТО.

3. Put the verbs in brackets in the proper tense: Perfect Simple or Perfect Continuous.

1. For a long time economist’s __________ (try) to define the main objective of business organizations.2. I would like to understand what_______________ (change) in the status of

personnel management.3. The plant ___________ (sell) its industrial products to foreign countries for

decades.4. The USA_____________ (be) the world leader in technology for a long

time.5. The consumption of electricity by an average family __________ (increase)

since the early 1990s.6. We __________already __________(work) on the project for two

weeks when you joined the team.7. Ford ________ (try) to lower the price of the Model T, since it first

appeared.8. This year the firm _______ (introduce) a new policy of advertising goods.9. Most African countries________ (try) to reach the living standards of

developed countries for a long time.10.Joe __________ already __________(think) about changing jobs when

he got the offer.11.These firms (increase) the export of clothes to European countries since the

late 1990s.12. The plant (employ) two hundred new workers since 2012.13. Easy Jet Airlines ________ (make) a profit for a few years purchasing air

tickets online, because online sales develop fastest where there are no goods that have to be physically delivered.

4. Fill in the spaces, using modal verbs “can”, “could” or their equivalent “be able”.

1. When I pass my driving test, I ………hire a car from our local garage.2. I ….remember the address of the firm where my colleague works.3. When I first went to Spain I ….. speak Spanish well enough but I ……

translate business articles from Spanish into Russian.4. “…. you run fast?”“I am not sure. I ….when I went to school but I don’t think I …do it now”.5. We ……. ship the goods next September.6. “…. you sign the contract now?”“No, We ….. to do it on Friday” 7. It’s a pity I …help him yesterday.

5. In some of the sentences either “could” or “was able” can be used. 1. The worker was very tired but he ……to repair the machine tool.2. We ……to solve the problem a week ago.3. I was sitting far from the speaker. I ….see all right but I …. .hear very well. 4. When he was young he……run a mile in less than five minutes.5. The company….to make some profit even during the inflation.6. We were late for the conference, but we …..to make our reports.

6. Translate the sentences paying attention to how probability is expressed.

1. The Swedish company might buy our company.2. Things change, I might even lose my job.3. May I look around the plant now?4. I could send this order on Friday.5. Anyone can learn how to use a computer.6. Couldn’t you employ more well-qualified employees to complete the project?7. Your boss may be able to change the situation.8. This company might have enlarged the construction site, because they needed more space.

7. Translate the sentences paying attention to how obligation is expressed.1. We must not use the machine until the green light is on.2. You must call on me at the office, when you arrive in Moscow.3. You have to use a mouse when you work on a computer.4. We have to work together if we want to meet the deadline.5. They should rely on the information from our top management.6. You should not have opposed that proposal.7. The Government ought to have reconsidered their decision.8. Successful leaders must be able to articulate their ideas.9. Our graduates will have to be prepared to realize innovative ideas.

10. We have to get up early tomorrow, as we are to be at the airport at 5 o’clock.11. What is to be done about this problem? We are to report about it to our supervisor.12. The workers must be allowed to take part in the management of their organization.13. Nowadays all employees in every field of science and technology need to be regularly retrained.14. Effective planning must begin with objectives that are to be achieved by carrying out the plan.

8. Translate the sentences into English using modal verbs.

1.Эту систему можно также использовать на других предприятиях.2.На него нельзя положиться.3.Для модернизации нашего завода будет необходимо импортировать новое оборудование.4. Проектировщику приходится выбирать между надежностью этой установки и ее стоимостью.5.Эти исследования необходимо было держать в секрете.6. Правила техники безопасности должны быть четко сформулированы.7.Нам не следует недооценивать имеющиеся проблемы.8. Вы можете внести данные изменения в компьютерную программу.9. Вы сможете занять только ту сумму, которую вы сможете вернуть.10. Вам не следовало бы выступать против их предложения.11.Правительству следовало бы пересмотреть эту программу.12. Эти данные, вероятно, были обработаны с помощью цифровых технологий.13.Секретарь сообщила, что в настоящий момент президент нашей компании, возможно, проводит видеоконференцию с региональными представителями.14. Не может быть, чтобы наш мастер не сделал эту работу.

9. Choose the proper Modal verb. Translate the sentences.

1. According to the information received by the company, the sale representatives (must, have to, be to) arrive on the next plane.

2. The government (must, should, have to) stimulate the production of necessities and it (should, must) prevent the increase in prices

3. According to the contract all the papers (must, have to, be to) be ready for tomorrow.

4. Japan is known as a small nation with big population that (to be able, have to, should) overtake such industrialized country as the USA in some fields of economy.

5. “You (may, must, should) put up with my requirements or you (should, have to, can) look for another job”, said the director.

6. There are no parking facilities for manufactured cars in this plant, so the company (should, must, have to) buy some land.

7. To start business a manufacturer (must, should, have to) buy the necessary means of production.

10. Complete the sentences, using the Modal verbs or their equivalents: can, could, may, to be able to, must, to have to.1. Small nations ___________ ensure their economic security only by effective

cooperation with other nations.2. They ____________ introduce new machinery as soon as possible.3. _________ Russia supply its population with necessary amounts of gas and

petrol? –Yes, they ___________.4. This manager doesn’t meet the sales target. You __________ employ a better

manager.5. British farmers __________ (not) ensure the required quality of meat when

there was an infection among the cattle a few years ago.6. You ___________ have a special license to import or export exotic animals and

seafood.7. Members of the OPEC (Organization of Petroleum Exporting Countries)

_______________ to sell oil at the same price.8. Any crisis in the economy of the USA ____________ dramatically influence

the economies of other nations.9. The firm ________ increase its profitability by means of new materials and

technologies.

11. Translate into English.1. Сегодня помощник руководителя (PS-Personal Assistant) должен

приготовить документы для предстоящих завтра переговоров.2. Не могли бы вы помочь мне заполнить (complete) моё резюме (CV:

Curriculum Vitae)?3. Расширение компании может привести к уменьшению уровня

безработицы.4. Как членам товарищества (partnership), нам приходится делить (share)

права и обязанности. Один из нас должен заниматься производством, другой – маркетингом.

5. Кто-то должен взять на себя ответственность перед нашими зарубежными партнерами.

6. Я должен быть на собрании совета директоров (Board of Directors)? – Нет.

7. Чтобы управлять (run) компанией, ты должен быть очень ответственным человеком.

8. О своем повышении по службе тебе следует поговорить со своим начальником.

9. Тебе незачем иметь наличные деньги. Там разрешается платить по кредитной карточке.

10. Мы считаем, что наши товары могут конкурировать со своими соперниками за рубежом и найдут своих клиентов.

12. Before you read the text below, answer the questions.

a) What do you know about inflation?b) Do you think that inflation can be caused by increase in people’s pay?c) Can you name any other reasons of inflation?d) What do you think is the social threat of inflation? e) Do you know anything about types of inflation?f)Why do you think that a major objective of government economic policy is to control inflation?

Read and translate the text using Essential Vocabulary and any other dictionary.

Text 3A

InflationInflation is generally defined as a persistent rise in the general price level

with no corresponding rise in output, which leads to a corresponding fall in the purchasing power of money.

Inflation varies considerably in its rate. Hence, the consequences for the business community differ according to circumstances. Mild inflation of a few percent each year may pose few difficulties for business. However, hyperinflation, which entails enormously high rates of inflation, can create almost insurmountable problems for the government, business, consumers and workers.

Economists recognize that two general types of inflation exist:- Demand-pull inflation - Cost-push inflation

Demand - pull inflation occurs when demand for a nation’s goods and services outstrips that nation’s ability to supply these goods and services. This causes prices to rise generally as a means of limiting demand to the available supply.

Alternatively, inflation can be of the cost-push variety. This takes place when firms face increasing costs. This could be caused by an increase in wages owing to trade union militancy, the rising costs of imported raw materials and components or companies pushing up prices in order to improve their profit margins.

Inflation affects business in a number of ways. Significant rates of inflation can cause accounting and financial problems for business. They may experience difficulty in valuing assets and stocks, for example.

Such problems can waste valuable management time and make forecasting, comparisons and financial control more difficult.

Many businesses may experience falling sales during inflationary periods for two broad reasons. Firstly, it may happen that saving rises in a time of inflation. We would expect people to spend more of their money when prices are rising to avoid holding an asset (cash) which is falling in value. However, during the mid-1970s, when industrialized nations were experiencing high inflation rates, savings as a proportion of income rose! It is not easy to identify the reason for this, but some economists suggest that people like to hold a relatively high proportion of their assets in a form which can be quickly converted into cash when the future is uncertain.

Businesses might be hit by a reduction in sales during a time of inflation for a second reason, as inflation progresses, it is likely that workers’ money wages (that is, wages unadjusted for inflation) will be increased broadly in line with inflation. This may well take a worker into higher tax bracket and result in higher percentage of his or her wages being taken as tax. This process, known as a fiscal drag, will make workers spend less money available on firms’ goods and services. The poverty trap has a similar impact as money wages rise, the poor will have to find that they no longer qualify for state benefits to supplement their incomes and at the same time they begin to pay income tax on their earnings.

This leaves less disposable income to spend on the output of firms. The wages of many groups are not index-linked and so they rise less quickly than the rate of inflation, causing a reduction in spending power and demand for goods and services.

Inflation is often accompanied by high interest rates. High interest rates tend to discourage investment by businesses as they increase the cost of borrowing funds. Thus, investment falls. Businesses may also be dissuaded from undertaking investment programme because of a lack of confidence in the future stability and prosperity of the economy. This fall in investment may be worsened by foreign investment being reduced as they also lose some confidence in the economy’s future. A fall in investment can lower the level of economic activity, causing lower sales, output and so on.

During a bout of inflation, firms will face higher costs for the resources they need to carry on their business. They will have to pay higher wages to their employees to compensate them for rising prices. Supplies of raw materials and fuel will become more expensive as will rents and rates. The inevitable reaction to this is that the firm has to raise its own prices. Such cost-push inflation may make the goods and services produced by that enterprise internationally less competitive in terms of pr ice.

Some economists think that a low and stable rate of increase in the price level can be beneficial.

Governments realize that low rates of inflation exist in many economics. Inflation rates of 5 percent or below are not considered to be a great problem, especially if competitor nations are suffering similar rates.

However, inflation is, in general, harmful to business and its environment. It is for this reason that its control has been a major objective of government economic policy for years.

Exercises1. Answer the questions to the text:1. How can “inflation” be defined?2. What can cause accounting and financial problems?3. What types of inflation do you know?4. Why is inflation harmful to business and its environment? Explain your point of view.5. Is inflation often accompanied by high interest rates?6. What are the reasons of falling sales during inflationary periods?7. Why do the wages rise less quickly than the rate of inflation?8. How can firms compensate rising prices to their employees?9. Do firms face higher or lower costs for the raw materials during inflationary periods?

2. Match each word or word combination with its definition.

1. a demand a comparing favourable in price and quality

2 profit b to predict3 accounting c absence of trust4 a reduction in sales d the total of the sums of money

earned by an employee5 a lack of confidence e a recession6 to make forecasting f a store of goods for sale ; a store of

raw materials7 competitive g a system of recording the money

value of businesses dealings8 earnings h The amount on which the price

received in greater than the cost 9 a stock i an association of employees10 trade union j a request

3. Translate the sentences paying attention to the word combinations: owing to, no longer, tend to, in terms of, because of, in line with.

1. Because of hyperinflation customers and workers face a lot of difficulties.2. Many businesses may no longer experience rising sales during inflation periods.

3. The business trip was delayed owing to organizational problems.4. People tend to think that their salaries depend on the efficiency of their work. .5. Mild inflation tends to pose few difficulties.6. A number of firms faced high costs for resources.7. I could give you a number of reasons for not going to the meeting.8. The number of homeless people has increased dramatically.9. In terms of sales many businesses will benefit in this situation.10. Annual pay increase will be in line with inflation.11. We should carry on with our work while our boss is away.

4. Mark these sentences T (true) or F (false) according to the information in the text.1. Hyper inflation which results in high rates of inflation can cause

serious problems for the government, business, consumers and workers.2. Many businesses may experience rising sales during inflation periods.3. Continuous rise in general price level might lead to a corresponding rise

in the purchasing power of money.4. In 1970s when countries were experiencing high inflation rates, saving

and income of population rose. 5. When people’s wages are not indexlinked during the inflation period,

they rise less quickly than the rate of inflation.6. Significant rates of inflation can cause financial problems for most

businesses, which find it difficult to value their assets.7. Inflation is often accompanied by high interest rates, the latter having a

tendency to increase the cost of companies’ resources.8. High inflation rates cause the increased spending power and demand for

goods an services9. In the time of inflation businesses face a reduction in costs for raw

materials fuels and other resources necessary to run their business.10.In general inflation is harmful to business and its environment.

1. Match the two halves of these sentences.

1. Inflation can change its rate a during inflation periods2. Many businesses may

experience falling sales b when prices are rising and assets

are falling in value.3. Mild inflation of a few percent

may c May be often accompanied by

high interest rates4. People choose to have the

larger part of their assets in a form which can be.

d according to the circumstances in business community

5. Inflation process e The level of economic activity, sales and output

6. Increasing costs could be caused

f quickly converted into cash when they are not sure about their

future7. Cost push inflation may make

the goods and services by the firm which has raised its own prices

g cause few difficulties for business.

8. A fall in investment can lower h by an increase in wages due to the rising costs of imported raw materials and components

9. People might spend more of their money.

I to pay higher wages to their employees as a compensation for these raised costs.

10. During inflation when firms face higher costs for the resources they have

j less competitive in terms of price.

6. Find in the text sentences with the modal verbs. Before translating them define which of them express possibility depending on the capacity of doing the action, possibility depending on the circumstances (or supposition) and necessity of the event. 7. Translate the sentences into English.

1. Скажи ему, что он мог бы быть более полезным для нашей фирмы.2. Фирма, вероятно, будет испытывать некоторые затруднения в

подписании нового соглашения.3. Когда мы только начинали, всем приходилось работать сверхурочно.4. Теперь правительству придется уменьшить расходы, чтобы снизить

инфляцию.5. Расширение нашего предприятия должно создать новые рабочие места

и это очень важно, так как в вашем городе довольно высокий уровень безработицы.

6. Могли ли мы предвидеть, что принятые меры приведут к такому резкому повышению цен.

7. Предприятию следует провести (launch) рекламную кампанию, чтобы привлечь больше покупателей.

8. На этой неделе нашим специалистам предстоит провести ещё ряд испытаний новой модели автомобиля.

9. Мы уже подписали соглашение, и не было необходимости вносить какие-либо изменения.

10.Завтра наши представители должны подписать этот контракт.11.Покупатели смогут увидеть весь ассортимент (range) товаров компании

в ее каталоге на выставке.

8. Comment on the meaning of the modal verb “would” in the following sentences. Before doing this read the note.

1. We wanted to persuade him to talk with the director. But he wouldn’t listen to us2. At the conference which I visited I would ask questions about economic

cooperation with other countries.3. During the recession in the 1930s in the US people would stand in long lines in

order to get a job.4. The manager wouldn’t change his decision, even though he knew it was wrong.5. The car wouldn’t start this morning because it was freezing.6. Would you mind leaving us alone for a few minutes?7. When the boss was away, Mr. Brown would take over his responsibilities.8. When I worked for this company I noticed that managers would spend most of

their working time at the meetings.

Note: Remember that it is used to express unwillingness (mostly in negative sentences), when we talk about things happened regularly in the past, past habits, in set phrases.

9. Translate the sentences paying attention to the emphatic constructions: It is… that (who, which); (именно, только); 1. It is inflation that is the subject of the discussion.2. It is a lack of confidence that results in falling the investment in any

country.3. It is this problem that a project manager has not taken into account. 4. It was the new machinery by means of which they increased labour efficiency.5. It is macroeconomics that studies the problems of the country’s economy as a

whole.6. It wasn’t until 1923 that Canada, Australia and New Zealand were able to free

themselves from British control.7. It is through well-planned programmes that extensive data can be collected.

10. Translate the sentences with the verbs “cause”, “make”, “force”.1.The growing rate of inflation makes us think that the economic

situation of the country is not stable yet.2. Financial deficit in any country or region may cause economic and political

downturn. 3. Demand pull inflation is caused by demand for a nation’s goods and

services.4. The government forces all the companies to pay taxes on their profits.

5. The President of the company was forced to resign because his managing style led to big great losses.

6. Sometimes it is difficult for a first year student to make himself understand the importance of studying Business English.

11.Translate the sentences into English using the verbs “to cause”, “to make”, “

1. Система премиальных выплат побуждает сотрудников работать эффективно.

2. Менеджер по продажам заставил персонал (sales team) пересмотреть (review) план продаж.

3. Повышение цен на потребительские товары стало причиной сокращения покупательской способности населения.

4. Повышение цен на нефть может вызвать рост инфляция.5. Богатых людей необходимо заставить платить более высокие налоги,

так как их уровень жизни значительно выше большей части населения России.

6. Новейшие достижения в области информационных технологий явились причиной развития глобальной компьютеризации.

7. Государство вынуждено тратить большие средства на строительство спортивных сооружений в стране для того, чтобы больше людей имели возможность заниматься спортом.

8. Генеральный директор заставляет начальников всех отделов делать отчеты (report) о проделанной работе каждый квартал. (quarterly).

Read the text and answer the questions:1. What has an investigation by the Sunday Times shown?2. Why were the supermarkets disguising price increases?3. What does John Winkler advise to improve profits?