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ReadingTests&SummaryWritingsReadingTests

ReadingSummaries

Student/TeacherNotes

Student/Teachernotes

1.Brexit:ThepathtoBrexit

6.Brexit:ThepathtoBrexit

2.TheFinancialCrash:Thecauseofthe2008FinancialCrisis

7.TheFinancialCrash:Thecauseofthe2008FinancialCrisis

3.GigEconomy:TheGigEconomy

6.GigEconomy:TheGigEconomy

4.CSR:CorporateSocialResponsibility

9.CSR:CorporateSocialResponsibility

5.Globalisation:InternationalTrade

10.Globalisation:InternationalTrade

Levels:*****B2/C1*****C1Copyright:Thesematerialsarephotocopiablebutwewouldappreciateitifalllogosandwebaddresseswereleftonmaterials.Thankyou.

UK


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ReadingTestsContents:1. Brexit:ThepathtoBrexit

2. TheFinancialCrash:Thecauseofthe2008FinancialCrisis

3. GigEconomy:TheGigEconomy

4. CSR:CorporateSocialResponsibility

5. Globalisation:InternationalTrade


UK


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StudentTime:Approximately1hourTwotypesoflessonLesson#1:[Easy]*****[B2/C1]1.Trytopredictthecontentoftext/writedownkeyterms/ideas2.Readtext–checkwordsandmeaningswithadictionary3.Answerquestions4.Checkanswers(passmarkis70%)Lesson#2:[Hard]*****[C1]1.Readtext–nodictionary2.Answerquestions3.Checkanswers(passmarkis70%)

Teacher

TwotypesoflessonLesson#1:[easy]*****[B2/C1]1.Giveouttextaweekbeforethetest–studentsread,checkvocabularyandmeaning.2.Testday–giveoutanewcopyoftextandthequestions(nodictionaryornotes)3.Set1hourtoreadtextandanswerthequestions4.Takeinandcorrectorgothroughanswersinclass(passmarkis70%)5.Extraactivity–studentswritethesummary*(add30minutestotest)Lesson#2:[hard]*****[C1]1.Testday–giveouttextandquestions2.Set1hourtoreadtextandanswerthequestions3.Takeinandcorrectorgothroughanswersinclass(passmarkis70%)5.Extraactivity–studentswritethesummary*(add30minutestotest)SummarywritingLink:www.academic-englishuk/summary


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Brexit:ThepathtoBrexit

ReadingTestCopyright:Thesematerialsarephotocopiablebutwewouldappreciateitifalllogosandwebaddresseswereleftonmaterials.Thankyou.

UK


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ThePathtoBrexitC.Wilson(2017)

1)TheEuropeanUnionwasformedinthe1950s,specificallyunderthe1957TreatyofRomethatimplementedthesinglemarketforgoods,labour,servicesandcapitalwithcommonpoliciesontransportandagricultureandtoincorporatethecreationoftheEuropeanSocialfundandcommission.IntheseearlystagesitwastermedtheEuropeanEconomicCommission(EEC)andwasderivedofsixmemberstates;Germany,France,Italy,Belgium,theNetherlandsandLuxembourg.TheUKdeclinedaninvitationtojoin.Nevertheless,twenty-twoyearslatertheUKwasgrantedaccessionin1973andforty-threeyearslatertheUKhasvotedtoleave.2)SincejoiningtheEUbackin1973therehasbeensignificantprogressintermsofregulationandpolicy.Thefirstbeing‘theSchengenTreaty’in1985.Thistreatyratifiedaborderlesszoneacrossmemberstatestoincludecommonvisapoliciesandtheabolishmentofpassportcontrols.TheUKrefusedtosignuptothisagreement.Thesecondwas‘theMaastrichtTreaty’in1992.ThischangedthenamefromEECtotheEUandintroducedthesinglecurrencyoftheEurothroughthecreationoftheEuropeanCentralBank(ECB)tocreateasecondreservecurrencyintheworldandsolelycontrolEUmonetarypolicytomaintainstability.ItalsodevelopedabettercoordinationofeconomicpoliciesandtheimplementationofEuropeanCitizenship.ThefinaldevelopmentwastheLisbonTreatyin2007.ThisimprovedpasttreatiesbutalsoextendedpowersofjudicialmattersandEuropeanParliament.3)Atthemomentin2017,theEUconsistsof28stateswhooperatethroughasinglemarketwithstandardisedlawsandEUpoliciesaimedatensuringthefourfreedomsofthefreemovementofgoods,services,capitalandpeoplewithcommonpoliciesontrade,agriculture,fisheriesandregionaldevelopment.TheEUisthesecondlargesteconomyintheworldwithacombinedGDPof$20.75trillion,20%oftheglobalgrossdomesticproductand30%ofthenetglobalwealthof$223trillion.TheEUisthelargestexporterintheworldandsince2008isthelargestimporterofgoodsandservices.Internaltradeisaidedbytheremovaloftariffsandreducedbordercontrol.AccordingtotheOfficeofNationalStatistics(2016),theUKpaysonaverage£18bnayearformembership,thisequatesto£350millionaweek.In2016,theUKreceivedarebateof£5bnandtheEUspent£4.5bnontheUK,thereforetheUK’snetcontributionisabout£8.5bnayear.Thesecostsseemexuberantandthetruebenefitsaredifficulttocalculateagainstinvestment.Ontheonehand,theUKGovernment(2016)claimsthatEUbenefitsprovide4-5%ofUKGDPor£62-78bnayearwiththesinglemarketincreasingflowsofinvestmentandthefreemovementofpeoplebenefitsrecruitmentandknowledgetransferskills.Ontheotherhand,withoutEUmembershipthefutureisunclearbutnotnecessarilynegativeduetothefactthatthiscouldbeanewhorizonopeningbettertrademarketsoutsideacontrolledsinglemarketandinvestingsolelyintheUK.4)TheUKanditsrelationshipwiththeEUhasbeenaturbulentaffair(Young&Gee,2016)fromthestartandtherehavebeennumerouscallsforreferendums.Thesebeganjustaftertheaccessionin1975whenareferendumtoleavewascalledonthedisagreementwiththeEEC’sagriculturalpoliciesandbudgetfinancing,thenagainin1983whenMargretThatcherfamouslynegotiatedarebatefrombeingthenetcontributortotheEUfunds.Followingthatin1992,theUKsuspendeditsmembershipovertheintroductionoftheEuroandtheexchangeratemechanism.In2011,theUKpreventedtheEUGovernmentplanstolevybanksandrestrictLondon’sfinancialsector.In2013,DavidCamerontriedtorenegotiatetheUK’smembershipandhavegreaterpowerofimmigration,exclusionfromEurozonebailoutsandpreventtheEU’scommitmentof‘anevercloserunion’,whichtheUKseesasacreationofasuper-stateEuropecontrolledbyonetypeofpoliticalunion.However,thenegotiationswerenotfullymetandareferendumwasproposed.Finally,in2016,troubleinthe


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Eurozoneandtheongoingmigrantcrisisledtothereferendumbeingcalledforthe23thJune2016.Thecontrollinggovernment‘theconservatives’weredividedwiththePrimeMinister‘DavidCameron’supportingremainandtwoofhisleadingpoliticianssupportingleave.5)OnThursday23rdJuneBritainvotedtoleavetheEUwith51.9%leaveand48.1%remainoverall.However,ScotlandandNorthernIrelandhadamajorityvoteofremainwith62/38and55/44respectively.AccordingtoOfficialGovernmentfigures(2016),34millionpeoplevotedequatingtoa72%turnout,whichwasthehighesteverturnoutinthehistoryofvoting.ThereferendumresultssuggesttheUKissplitdownthemiddleinitsopinionontheEU.Themainargumentsfortheleavecampaignweretoregainsovereignty,tocutimmigration,toremoverestrictionsofthesinglemarkettoaccessglobalmarketsandtospend£350millionaweekontheUKeconomy.Economistshaveanalysedtheresultsandfoundacorrelationbetweenthepeoplewhovotedtoleavebeingaspecificsocialgrade(manual,casualworkers),non-graduatelevelofeducationandtheover60s(pensioners).Also,themainareasthatvotedleavewereplaceswithhighnumbersofimmigrants,highunemploymentanddeprivationfromlackofGovernmentfunding(mainlytheNorthofEngland).LondonontheotherhandvotedoverwhelminglytoremainintheEU(59.9%),whichsomeEconomistssuggestisbecauseofmulticulturalareas,ayoungerpopulationandhighlyeducatedresidents.6)Thereferendumvotewastoleaveso‘BrexitmeansBrexit’.SincethevotetherehasbeenachangeinPrimeMinisterandacompletepro-Brexitcabinetreshuffletoaccommodatethenewchanges.TheGovernmenthastriggered‘Article50’ofthetreatyofLisboninMarch2017.TriggeringArticle50,istheformalnotificationoftheintentiontowithdrawtheUKfromtheEUandtheUKhastwoyearstoleavefromthatdate.Atthesametime,allthetreatiesthatgovernmembershipnolongerapplytoBritain.ThetermsofexitwillbenegotiatedbetweenBritain’s27counterparts.TheGovernmenthastwomainchoicesa‘hard’or‘soft’Brexit.AhardBrexitmeanstogiveupfullaccesstothesinglemarket,gobacktoWTOrulesfortradeandgainfullcontrolofbordersandlaws.AndasoftBrexitmeanskeepasimilarcloserelationshipwiththeEUsimilartoexistingarrangementswithfreeaccesstotheSinglemarket,bankpassportingrightsbutnoseatonEUcommission,andthisdealmustincludethefourfreedoms.Whateverthechoice,itisnowbecomingincreasinglyevidentthattheshort-termimpactislikelytobenegativewithuncertaintiesovertradearrangementsalreadyaffectingthepoundsterling.TheBankofEnglandhasstatedthatBrexitisthebiggestrisktofinancialstabilityinhistory.However,themainpointisthatnooneactuallyknowsexactlywhatwillhappenconcerningtheimplicationsofBrexitoneconomicprosperityandtheUK’sroleontheinternationalstage.References:TheUKGovernment.(2016).EuropeanUnionReferendum2016:BriefingPaperNo:CBP7639.[online]HouseofCommons.Availableat:http://researchbriefings.files.parliament.uk/documents/CBP-7639/CBP-7639.pdf[Accessed10Jan.2017].ONS,(2016).TheUK'sEUmembershipfee.[online]OfficeofNationalStatistics.Availableat:https://fullfact.org/economy/our-eu-membership-fee-55-million/[Accessed10Jan.2017].Young,AandGee,G,(2016).RegainingSovereignty,Brexit,theUKParliamentandtheCommonLaw.EuropeanPublicLaw,22(1),131-147.


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Comprehensionquestions1.Headings–matchasubtitleforeachparagraph1 B Backgroundhistory A DissatisfactionwithEUpolicy2 B Backgroundhistory3 C Thewayforward4 D Threekeytreaties5 E Ananalysisofthereferendum6 F EUEconomics

____/52.True/false/notgiven(T/F/NG)

i. TheUKrefusedtobeamemberinthe1950’sbecauseofthetreatyofRome ii. TheUKrefusedtosigntwotreaties iii. TheUKreceivesnothingforitsnetinvestmentof£8.5bn iv. TheEurozonecrisiswasthemainreasonforthereferendum v. Themainreasonfortheleavevotewasfrompeoplewhofeltdisadvantaged vi. HardBrexitisthebettersolution

____/63.Openquestionsi.Whatarethefourfreedoms?1____________________2)____________________3)____________________4)____________________

___/4ii.Whatarethekeypointsofeachtreaty?(fillinboxbelow)

____/34.EUfigures-(fillinboxbelowfromparagraph3–whatdothenumbersconnectto?)$20.75trillion i)20% ii)30% iii)£18bn iv)£350m v)£62-78bn vi)

____/65.Dates:UKdisagreementswithEU–(fillinboxbelowfromparagraph4–topicsofconflict)1975 i)1983 ii)1992 iii)2011 iv)2013 v)2016 vi)

____/6

‘theSchengenTreaty’ ii)‘theMaastrichtTreaty’ iii)‘theLisbonTreaty’ iv)


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6.Reasons:Keyreasonswhypeoplevotedleave-(fillinboxbelow–4keyreasons)1 2 3 4

____/47.Typesofpeople:Whowerethemainpeoplewhovotedleave?1 2 3

____/38.Definition:WhatisArticle50?

____/29.Keylanguage–explainthesetermsfromthecontext/synonymswhereappropriateAccession Ex.Acquisition/tobeadded

i. Ratified

ii. Judicialmatters

iii. Regionaldevelopment

iv. Tariffs

v. Arebate

vi. Exuberant

vii. Turbulent

viii. Tolevy

ix. Abailout

x. Migrantcrisis

xi. Sovereignty

xii. Deprivation

xiii. Acabinetreshuffle

xiv. Totrigger

xv. Passporting

____/15OverallScore:___/54


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ComprehensionQuestionsANSWERS

1.Headings–matchasubtitleforeachparagraph1 B Backgroundhistory A DissatisfactionwithEUpolicy2 D Threekeytreaties B Backgroundhistory3 F EUEconomics C Thewayforward4 A DissatisfactionwithEUpolicy D Threekeytreaties5 E Ananalysisofthereferendum E Ananalysisofthereferendum6 C Thewayforward F EUEconomics2.True/false/notgiven

i. TheUKrefusedtobeamemberinthe1950’softhetreatyofRome NGii. TheUKrefusedtosigntwotreaties Tiii. TheUKreceivesnothingforitsnetinvestmentof£8.5bn(hardtocalculate) Fiv. TheEurozonecrisiswasthemainreasonforthereferendum(migrantcrisis) Fv. Themainreasonfortheleavevotewasfrompeoplewhofeltdisadvantaged Tvi. HardBrexitisthebettersolution NG

3.Openquestions

i. Whatarethefourfreedoms?goods,labour,servicesandcapitalii. Whatarethekeypointsofeachtreaty?(fillinboxbelow)

the‘SchengenTreaty’ i.1985borderlesszone/nopassportcontrols.UKrefusedtosignthe‘MaastrichtTreaty’ ii.1992.EECtoEU/singlecurrency/ECB/EuropeanCitizenship.The’LisbonTreaty’ iii)2007.judicialmattersandEuropeanParliament.4.EUfigures-(fillinboxbelowfromparagraph3–whatdothenumbersconnectto?)$20.75trillion i)EUGDP20% ii)OfGlobalGDP30% iii)NetGlobalwealth£18bn iv)AyearUKmembership£350m v)UKmembershipaweek£62-78bn vi)UKGovernmentEUmembershipbenefit5.Dates:UKdisagreementswithEU–(fillinboxbelowfromparagraph4–topicsofconflict)1975 i. Agriculturepolicyandbudgetfinancing1983 ii. RebateforbeingNetcontributor1992 iii. Euroandexchangeratemechanism2011 iv. Levybanks&restrictFinancial2013 v. Eurozonebailouts/super-stateEurope2016 vi. TroubleinEurozone/migrantcrisis


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6.Reasons:Keyreasonswhypeoplevotedleave-(fillinboxbelow–4keyreasons)1 Sovereignty2 Immigrationtoohigh3 Singlemarketpreventsglobaltrade4 SpendEUmembershipjustonUK7.Typesofpeople:Whowerethemainpeoplewhovotedleave?1 Manualcasualworkers2 Non-graduateleveleducated3 pensioners8.Definition:WhatisArticle50?PartoftheTreatyofLisbon:formalnotificationtoleavetheEU.Takes2years.9.Keylanguage–explainthesetermsfromthecontext/usesynonymswhereappropriate)Accession Acquisition/tobeadded

i. Ratified Makingitofficiallyvalid

ii. Judicialmatters Appropriatetoalawofcourt

iii. Regionaldevelopment Aidandhelptopoorerareasinacountry

iv. Tariffs Ataxordutytobepaidonexportsorimports

v. Arebate Arefundofmoney

vi. Exuberant Veryhigh

vii. Turbulent Conflictnotcalm

viii. Tolevy Imposeataxorfine

ix. Abailout Givefinancialassistance

x. Migrantcrisis Toomanymigrants

xi. Deprivation Lackofbasicamenities

xii. Acabinetreshuffle Tochangepolitician’sjobrolesinagovernment

xiii. Passporting Therighttofinanciallytradefreelyinothercountrieswithhavingaheadquarters/acompanyinthatcountry


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TheCausesoftheFinancialCrisis2008


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TheCausesofthe2008FinancialCrisisC.Wilson[2017]

1)In2008theworldexperiencedtheworstfinancialcrisissincetheGreatDepression(1930s).Theseveremagnitudeofthefinancialdisasterbecamefullyevidenttowardstheendof2007.Ithad,however,begunyearsearlierthroughwhatmanyclaimedtobethemainfactorinthecrash;sub-primemortgagelending.Thefinancialcrisisof2007-08andtheaftershocksoftheUSsubprimemortgagecrisisof2007-09isnowconsideredtobe'TheGreatRecession'.TheUSFinancialCrisisInquiryCommission[FCIC](2011)reportedthecrisiswasavoidableandwascausedfromwidespreadfailuresinregulationoffinancialinstitutionsandtherecklessactionsinriskandborrowing.Itconcludedthatkeygovernmentalpolicymakerswereill-preparedandlackedunderstandingandaccountabilityinthefinancialsystemstheyoversaw.ThisarticlewillexaminehowsubprimemortgagelendingledtotheGreatRecession. 2)Towardstheendofthe1990spropertypurchasesbegantorise.Withsuchgrowth,lendingmoneyforhousebuyingbecameaprofitablebusinessinbothmortgagesandremortgaging.Traditionally,thehousebuyersavesupadeposit(downpayment–usuallybetween10%ofthehousecost)andcontactsabankormortgagebroker,whoconnectsthemtoalender,whointurnprovidesamortgagebasedonthegroundsofspecificcriteria(permanentemployment,nopreviousfinancialdefaults(apositivecredit-score),andtherepaymentplanbeingachievable).Thisischaracterizedasa‘Prime-mortgage’andthelevelofriskinlendingisextremelylow.3)Throughout2000ashomeownershipbecamemorepopularandhousepricesrosesignificantly(1997–2006housepricesroseby124%intheUSand186%intheUK(USSpindices,2016)),lendersbegantosecuritisethesemortgagesintomortgage-backedsecurities(MBS)andCollateralizedDebtObligations(CDOs)andthensoldthemtotheinvestmentbankingsector.Thesemortgageswereratedbycreditagenciesintothreeareas,‘safe’,‘ok’and‘risky’,andthensoldontotheShadowBankingSectororinvestors,non-depositorybankers,andhedgefundsrespectively.However,theprimemortgagemarketbegantobecomesaturatedduetothosewhoqualifiedhadone.4)Therefore,sub-primemortgagelendingwasintroducedin2002/3basedonthepresumptionthatashousepricescontinuedtorise,ifaborrowerdefaultedonpayment,thelenderwouldreprocessthehouseasequity.Lendersbegantoaddrisktothesenewmortgagesinthatnodeposit,noproofofincome,ornodocumentswererequiredtoobtainamortgage.Anestimated$3.2trillionloanswereissuedtohomeownerswithbadcreditandundocumentedincomesbetween2002-2007(FCIC,2011),andwithsucharisederegulationofbankingpolicyoccurredtoincludefraudulentautomatedunderwritingprocessesandcreditagencies'standardsfalling.Atthesametime'predatorylending'offeredloansatlowinterestratesorAdjustableRateMortgage(ARM)rates,wheretheconsumerwasunawareofthecontractandassociatedrates(Krugman,2009).Thesub-primemortgageprocessactivelyencouragedariseinhousepricesandaphenomenonknownasthe'housingbubble',wherehousepricesrosemuchfasterthanwagesmakinghousingunaffordableorpeopleborrowingmorethantheycanrepay.5)TheshadowbankingsectorofInvestmentbankers,hedgefundsandinsurancefirmsallboughtintothehighlyprofitableworldofsub-primemortgagebackedsecurities.Thesehighlyprofitablecreditinstruments(CDOs),weretradedinternationallythroughderivativesandforeignexchangetradingandspreadacrosstheglobalfinancialcommunity.By2006,80%ofU.Smortgagesweresubprimeloanswithanestimatedvalueof$1.4trillion(FCIC,2011)Shadowbankingoftenreferredtoasparallelbanking,werenotsubjectedtothesamebankingregulatorycontrols.Theseinstitutionswerevulnerableastheyborrowedshort-terminliquidmarketstopurchaselongterm,


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illiquidandriskyassets.Thismeantdisruptionsincreditmarketscreatingrapiddeleveraging,sellinglongtermassetsatdepressedprices.6)Interestratesbegantorisein2007,andthiswasthebeginningoftheend.ThedefaultratesbegantoincreasewithmanyborrowersunabletomeetthemonthlypaymentsandthisinturnmeantthatMBSandCDOsbegantolosevaluewithhigherdefaultrates.Concurrently,thehousingbubbleburstandhousepricesfell40%(FCIC,2011),leavingmanypeopleinnegativeequity.However,themostseriouseffectwasacrisisofliquidityandtrustthatoccurredacrossbanks.LehmanBrotherswentbankruptandmanymore(MerrillLynch,AIG,FreddieMac,FannieMae,HBOS,RoyalBankofScotland,Bradford&Bingley,Fortis,HypoandAlliance&Leicester)wereonthevergeofbankruptcyandneededtobebailedoutbyGovernments.Infact,21Banksand61hedgefundshadbeenforcedtodeclarebankruptcyintheUSalone(Morris&Song,2008).Theremainingbanksroseinterestratesandstoppedlendingmoneywhichbecameknownasthe'CreditCrunch'andtheledtheworldinto‘TheGreatRecession’.7)Since2008,anumberofmeasureshavebeencreatedinresponsetorectifytheproblems.Theseincludefinancialrescueplans,centralbank’smonetarypoliciesofloweringinterestrates,andGovernmentalpublicstimuluspackages.Therearecallsforimprovedmarketregulationandsupervision,whichhavebeenmetthroughtheDoddFrankAct(Krugman,2009).ThiswasthelargestreformoftheU.SbankingsectorsinceWW2.Inaddition,anewglobalfinancialsystemregulatedbytheIMF,whoshouldhaveabroaderroleintheregulatorysystemoftheworldeconomy,isbeingimplemented.8)Overall,thefinancialcrisisof2008wasnotjustthesub-primemortgagelendingsector.Thereareanumberofothercontributingfactorsthatthisarticlehasnotdiscussed,butprimarilyfraudulentgreedybankingpracticeseemstolieattheheartofit.Toidentifywhoisexactlytoblameisincrediblydifficultbecausetheresultsoftoxicassetsfromfraudulentunderwritingprocesses,easycreditconditions,predatorylending,deregulationandover-leveragingallhadasignificanteffectoncreatingoneofthebiggestcrashesofalltime.Itseemsthateveryonewasresponsible,fromgovernment’sinabilitytoregulateinnovativebankingpractice,Economistsunabletoforecasteconomiccollapse,financialinstitutionsexploitingthecomplexityofMBSandCDOsandevenhomeownerstakingonloanstheywereunabletopayback.Thequestionsthatexist,however,arewhetheritwillhappenagainandarethemeasuresinplacesufficienttocontrolandregulatebankingpractice.

[1003words]ReferenceListKrugman,P.2009).TheReturnofDepressionEconomicsandtheCrisisof2008.W.W.NortonCompanyLimited.Morris,S.andSongH,S.(2009).FinancialRegulationinaSystemContext.BrookingsPapersonEconomicActivity,2008(2),pp.229-274.Availableat:http://www.princeton.edu/~smorris/pdfs/Morris-FinancialRegulationinaSystemContext.pdf[Accessed24Dec.2016].Thefinancialcrisisinquiryreport[FCIR]:finalreportoftheNationalCommissionontheCausesoftheFinancialandEconomicCrisisintheUnitedStates.(2011).ChoiceReviewsOnline,[online]48(12),pp.48-7034.Availableat:http://fcic-static.law.stanford.edu/cdn_media/fcic-reports/fcic_final_report_full.pdf.[Accessed24Dec.2016].Us.spindices.com.(2016).S&PCoreLogicCase-ShillerU.S.NationalHomePriceNSAIndex-S&PDowJonesIndices.[online]Availableat:https://us.spindices.com/indices/real-estate/sp-corelogic-case-shiller-us-national-home-price-nsa-index[Accessed24Dec.2016].


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ComprehensionQuestions

1.Headings–chooseasubtitleforeachparagraph1 B Backgroundhistory A ProfitableTrading

2 B Backgroundhistory

3 C Sub-primemortgage

4 D Conclusion

5 E APrimemortgage

6 F Anewregulatorysystem

7 G Mortgagesecuritisation

8 D Conclusion H Thecollapse

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2.True/False/NotGiven–onequestionperparagraphT/F/NGvii. Thefinancialcrisisbeganin2007 viii. Prime-mortgagesarehigh-risk ix. In2000,mortgageswerepackagedandmadeintomarketableproducts x. CreditAgencieswereunqualifiedinunderwritingprocesses xi. ShadowBankingsectoristhemainreasonforthefinancialcrisis xii. Thegovernmenthadtotakeoverbankstosavethemfrombankruptcy xiii. Therescuepackageshaveworkedinregulatingthebankingsector xiv. Thesubprimemortgagesectorwasthemainreasonforthefinancialcrisis

___/83.Data-fillinboxbelow–whatdothenumbersconnectto?10% i)186% ii)3.2 iii)80% iv)1.4 v)40% vi)

___/6

4.Acronyms:writethewordsfortheseacronymsFCIC MBS CDO ARM

___/4


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Paragraph15.WhatwerethemaincausesofthecrisisaccordingtotheFCIC?(2keyreasons)1 2

___/2Paragraph26.Threekeycriteriaforatraditionalmortgage.1 2 3

___/3Paragraph3/47.Whydidthesub-primemortgagesectorlendingrise?1 2

___/2Paragraph48.Whatis‘predatory’lending?

___/1Paragraph59.Howisshadowbankingdifferentfromtraditionalbanking?

___/1Paragraph610.Whatwasthemostseriouseffectofthefinancialcrisistothebanks?

___/1Paragraph711.Whatarethetwomeasuresbeingputinplaceafter2008?1 2

___/2Conclusion12.Whatwerethekeyproblemsassociatedwithtoxicassets?i ii. iii. iv. v.

___/5


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Conclusion13.Theoverallkeyproblemswiththesegroupswere:Governments

i.inabilitytoregulateinnovativebankingpractice

Economists

ii.

Financialinstitutions

iii.

Homeowners iv.

___/3

14.Keylanguage–explainthesetermsfromthecontext/usesynonyms(whereappropriate)magnitude Agreatsize/immense/vast

xiv. Defaults

xv. Saturated

xvi. Parallel

xvii. Fraudulent

xviii. ‘housingbubble’

xix. Negativeequity

xx. Bailout

xxi. The‘creditcrunch’.

xxii. Torectify

xxiii. stimuluspackages

xxiv. toxicassets

___/11

OverallScore:____/55


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ComprehensionQuestionsANSWERS1.Headings–writeasubtitleforeachparagraph1 B Backgroundhistory2 E APrimemortgage3 G Mortgagesecuritization4 C Sub-primemortgage5 A ProfitableTrading6 H Thecollapse7 F Anewregulatorysystem8 D Conclusion

___/6

2.True/false/notgiven–onequestionperparagraphi. Thefinancialcrisisbeganin2007[P1:begunyearsearlier] Fii. Prime-mortgagesarehigh-risk[P2:lowrisk] Fiii. In2000,mortgageswerepackagedandmadeintomarketableproducts Tiv. CreditAgencieswereunqualifiedinunderwritingprocesses NGv. ShadowBankingsectoristhemainreasonforthefinancialcrisis NGvi. Thegovernmenthadtotakeoverbankstosavethemfrombankruptcy Tvii. Therescuepackageshaveworkedinregulatingthebankingsector NGviii. Thesubprimemortgagesectorwasthemainreasonforthefinancialcrisis

[P8:Thereareanumberofothercontributingfactors]F

___/83.Data-(fillinboxbelow–whatdothenumbersconnectto?)

10% i)deposit186% ii)UKhousepriceriseinUK1997-20063.2 iii)$3.2trillionbadcreditloansissued(2002–2007)80% iv)thetotalofUSsubprimeloans1.4 v)$1.4trillionvalueonsub-primemortgages40% vi)housepricefellin2007

___/6

4.Acronyms:writethewordsfortheseFCIC i)FinancialCrisisInquiryCommissionMBS ii)Mortgage-BackedSecuritiesCDOs iii)CollateralizedDebtObligationsARM iv)AdjustableRateMortgage

___/4


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5.WhatwerethemaincausesofthecrisisaccordingtotheFCIC?(2keyreasons)1 widespreadfailuresinregulationoffinancialinstitutions2 recklessactionsinriskandborrowing

___/2

6.Threekeycriteriaforatraditionalmortgage.1 Permanentemployment2 Apositivecredit-score3 Achievablerepaymentplan

___/3

7.Whydidthesub-primemortgagesectorlendingrise1 Saturatedduetothosewhoqualifiedforamortgagehadone.2 Housepricerisemeanthouseasequity

___/2

8.Whatis‘predatory’lending?lending'offeredloansatlowinterestratesorAdjustableRateMortgage(ARM)rates,wheretheconsumerwasunawareofthecontractandassociatedrates.[keyterms]

___/1

9.Howisshadowbankingdifferentfromtraditionalbanking?Notbankingregulatorycontrols,theseinstitutionswerevulnerableastheyborrowedshort-terminliquidmarketstopurchaselongterm,illiquidandriskyassets[keyterms]

___/1

10.Whatwasthemostseriouseffectofthefinancialcrisistothebanks?Thecrisisofliquidityandtrustthatoccurredacrossbanks.

___/1

11.Whatarethetwomeasuresbeingputinplaceafter2008?1 theDoddFrankAct2 anewglobalfinancialsystemregulatedbytheIMF

___/1

12.Conclusion:Whatwerethekeyproblemsassociatedwithtoxicassets?i fraudulentunderwritingprocessesii. easycreditconditionsiii. predatorylendingiv. deregulationv. over-leveraging___/5


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14.Theoverallkeyproblemswiththesegroupswere:

Governments

i.government’sinabilitytoregulateinnovativebankingpractice,

Economists

ii.unabletoforecasteconomiccollapse

Financialinstitutions

iii.exploitingthecomplexityofMBSandCDOs/homeownerstakingonloanstheywereunabletopayback

Homeowners iV.takingonloanstheywereunabletopayback

___/3

15.Keylanguage–explainthesetermsfromthecontext/usesynonymswhereappropriate)i. magnitude Agreatsize/immense/vast

ii. Defaults Anonpaymentofmoneyowed

iii. Saturated Supplybeyonddemand

iv. Parallel Occurringorexistingatthesametime

v. Fraudulent Dishonest.Corrupt,deceitful

vi. ‘housingbubble’ wherehousepricerisemuchfasterthanwagesmaking

housingunaffordablevii. Negativeequity Propertyvaluefallsbelowthemortgagevalue

viii. Bailout Togivefinancialassistance

ix. The‘creditcrunch’. Banksstoplendingmoney

x. Torectify Putrightorcorrect

xi. stimuluspackages Apackageofeconomicmeasurestostimulateafloundering

economyxii. toxicassets Abadfinancialassetwhosevaluehasfallenandnolongera

functioningmarket___/11

OverallScore:_____/55


___________________________________________________________________________


TheGigEconomy


UK


___________________________________________________________________________


TheGigEconomyC.Wilson(2017)

1)Theworkingworldischanging.Inourincreasingflexiblelabourmarket,thenotionofa‘jobforlife’andtheconceptof9-5workdayisdiminishing.Initsplaceisthegigeconomy,whicharecollaborativeworkingplatformswherepeopleworkontemporarycontracts(gigs),oftenasfreelancersandself-employed.RecentresearchfromOxfordUniversity(2016)suggeststhatthislabourmarkethasgrown25%,withpredictedgrowthofupto40%by2020,andisoccupiedby30%oftheUK’spopulationworkingonshort-termtemporaryprojects.Thissignificantgrowthisattributedtodigitalization,increasedfinancialpressuresandtheincreasedfrequencyofpeoplechangingjobs(TheRecruitment&EmploymentConfederation(REC),2016).2)DefiningtheGigEconomyisincrediblydifficultbecauseofhowdiversethelabourmarketis.WorldleadingresearchfromtheMckinseyReport(2016)definesitas‘independentworkthatencapsulatesautonomy,paymentforthetaskorassignmentorsalesandashort-termrelationshipbetweentheworker’.Thisincludespeoplewhoprovidelabourservicesaswellasthosewhotradeingoodsorrentassets.TheMcKinseyReportalsodefinesworkersintofourbands:FreeAgents,CasualEarners,ReluctantsandFinanciallyStrapped.VaughanandDaverio(2016)separatethegigeconomyintofivekeysectors:peertopeeraccommodation,peer-to-peertransportation,ondemandhouseholdservices,ondemandprofessionalservicesandcollaborativefinance.Overall,theseeconomiesareindependenttemporaryshort-termpositionsthatincludeaformofcollaborativeconsumptionandareoftenoperatedthroughadigitalplatform.Thisarticlewillusethe‘gigeconomy’asanumbrellatermtoincludealloftheabove.3)Thereare275collaborativeeconomyplatformsintheEUcreatinganestimated€25bnannually(VaughanandDaverio,2016).Keyleadersinpeer-to-peeraccommodationarecompanieslikeAirbnb.Thisplatformallowsindividualstorentoutaspareroomoranentirehousetotravellers.Themaindriveristhecreationofextraincomeforthesupplierbutalsocreatinganauthenticexperienceandcheaperaccommodationforthetraveller.Peer-to-peertransportationisUberwhoprovide‘ataxistyle’servicethroughtheirUberapp.ClientssubmitatriprequestandtheapplinksthemtothenearestUber‘gig’driver.Apopularon-demandhouseholdserviceisthecompanyDeliveroo,whoareanonlinefooddeliveryservicecompanythroughwhichcustomersorderfoodfromlocalrestaurantsadvertisedontheDeliverooplatform.Thefoodisthencollectedanddeliveredbygigemployeeswithin30minutes.Ondemandprofessionalservicesarecompanieslikepeopleperhour.comorfreelancer.com.Theseplatformsadvertiseandorganizetopprofessionals.Workersshowcasetheirportfolios,recentworkandtrustedreviewssothatemployerscanchooseappropriately.Finally,collaborativefinanceiscommonlytermedas‘crowd-funding’theseofferindividualsandbusinessesopportunitiestoinvest,lendandborrowdirectlybetweeneachother.ThegigeconomyisquicklybecomingavitalcomponentoftheUKlabourmarketforarangeofsectorsandindustries(REC,2016).4)Thetransformativeimpactofthegigeconomyishavingveritableeconomicbenefitsbyraisinglabourforceparticipation,stimulatingconsumption,andboostingproductivity


___________________________________________________________________________


(McKinseyReport2016).Itismeetingthegrowingdemandforservicesfromconsumersandorganisationsandhasthepotentialforconsiderablegrowthanddevelopmentoverthenext20years(REC,2016).Researchseemstosuggestthatthegigeconomyoffersabetterwork-lifebalancethroughautonomyandflexibility.Inaddition,businessesarebenefittingfromhavingaccesstoaglobaltalentpool,reductioninoperationalcostsandloweringtherisksoflong-termemploymentcontracts.5)Sucharapidgrowthofthegigeconomyisposingprofoundchallengesforpolicymakersandregulators.Therearealreadysignificantdifferencesinregulatoryframeworksintaxpolicies,applicationsandenforcementacrossEurope(VaughanandDaverio,2016:3).REC(2016)claimsthatworkersarenotprotectedbycommonworkers’rightslaws,donotqualifyforsick,holidayorpensionentitlements,andtheycanbeforcedtoworkatlowerrateswithnojobsecurityorcontinuity.Withregardstoemployers,REC(2016)statesthatgigworkersmaynotbeloyaltothecompany’sbrand,thereisalsothepossibilitythatcrowdsourcingprofilesaredeceptiveorexaggerated,andwithlittleregulatorycontrolofgigemployees,companiesmaybecomeembroiledinlegaldisputesoverworker’srights.Overall,itseemsthatthegigeconomyhasanumberofchallengestobeaddressed.6)Thecommodisationofthelabourmarkethascreatedshortfixedworkingcontracts,andlimitedjobsecurity,andlifetimeemploymentwithonecompanyisnowarelicofthepast.Digitaltechnologiesarechangingworkpatternsandofferinggreateropportunities.Itseemsnosurprisethatparticipationinthecollaborativeeconomyishighestamongthewell-educatedunder35agerange(VaughanandDaverio,2016),thussuggestingthisisgoingtobethefutureofemployment.Thebiggestchallengeforthegigeconomyisregulationandcontrol.Researchiskeyinenablingpolicy-makerstomodernizeclassificationsofworkpatterns,taxfilingandcompliancerequireimprovements.Itisimperativethatthisresearchimprovesregulationofferingprotectionforlow-skilled,low-paidgigworkerswithbetterworkingrights,acknowledgingdisabilityanddiscriminationlawsandalsocontrollingminimumwages.Overall,‘regulatingthegigeconomyisaboutallowinginnovationtoflourishbutmakingsuretheadvantagesarewell-distributed’(REC,2016:56).

[Words:860]ReferencesTheMckinseyReport(2016)IndependentWork:choice,necessityandthegigeconomy(October2016).MckinseyGlobalInstitutePublications.TheRecruitment&EmploymentConfederation(2016)GigEconomy:TheUberisationofWork.InstituteofRecruitmentProfessionalspublishing.TheUniversityofOxford(2016)RiseofOnlineWorkCapturedintheFirstOnlineLabourIndex.Availableat:http://www.ox.ac.uk/news/2016-09-21-rise-online-work-captured-first-online-labour-index[Accessed03February2016)Vaughan,R.&Daverio,R.(2016)AssessingtheSizeandPresenceoftheCollaborativeEconomyinEurope.PWC-EuropeanCommissionPaper(DGGROW).


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1.Headings–chooseasubtitleforeachparagraph1 B Theriseofthegigeconomy A Principalgigcompanies

2 B Theriseofthegigeconomy

3 C Theimportanceofthegigeconomy

4 D Acomplexdefinition

5 E Futurechallenges

6 F Thelimitationsofthegigeconomy

___/5

2.True/False/NotGiven–onequestionperparagraphT/F/NGxv. PeoplewhoworkfortheGigEconomyareself-employed. xvi. Definingisdifficultbecauseofthedifferenttypesofworkers. xvii. OndemandserviceslikePeopleperhourandfreelancerarethemostpopular. xviii. Themajorityofgigworkersaresatisfiedwiththeflexibility. xix. Somecrowd-sourcingprofilesarelying. xx. Moreresearchisnecessarytoofferbetterprotection.

___/6OpenanswerquestionsParagraph13.WhatisOxfordUniversityforecasting?1

___/1

Paragraph14.Whatarethemainreasonsfortheincreaseofthegigeconomy?1 2 3

___/3

Paragraph25.Whatarethemaindifferencesbetweenthetwodefinitions.1

2

___/2


___________________________________________________________________________


Paragraph36.Whatarethefivekeycompaniesgivenasexamples?1 2 3 4 5

___/5

Paragraph47.Whatarethekeybenefits?Economic 1.Labourforceparticipation

2.3.

Individuals 1. 2. 3. Business 1.Globaltalentpool 2. 3.

___/7

Paragraph58.Whatarethekeyproblems?Policymakers Differencesinregulatoryframeworkssuchas…

1.Taxpolicies2.3.

Workers 1.Notprotectedbyworkers’rights

2.3.4.5.

Employers 1.

2.3.

___/9


___________________________________________________________________________


Paragraph69.WhatisthemainevidencethattheGigeconomyisheretostay?

___/1

Paragraph610.Whatarethemostimportantissuestobeaddressed?

___/2

Paragraph611.Whatfouraspectsshouldregulationfocuson?1 2 3 4

___/4

12.Author’sstance?IstheauthorfororagainsttheGigeconomy?Why?For Against[chooseone]Why?

___/2

13.Referencewords–explainwhatthesereferencewordsconnectto:(underlinedinthetext)

Paragraph Word Connection

1 This 25%growth

2 those

3 these

4 It

5 they

6 this

___/5


___________________________________________________________________________


14.Keylanguage–explainthesetermsfromthecontext/usesynonymswhereappropriate)Paragraph Word Explanation

1 notion

Abelief/conception

2 encapsulates

2 financiallystrapped

2 anumbrellaterm

3 authenticexperience

3 Toshowcase

4 veritable

4 stimulating

4 autonomy

5 deceptive

5 embroiled

6 ‘arelicofthepast’

6 toflourish

___/12

OverallTotal:____/64


___________________________________________________________________________



1.Headings–chooseasubtitleforeachparagraph1 B Theriseofthegigeconomy A Principalgigcompanies

2 D Acomplexdefinition B Theriseofthegigeconomy

3 A Principalgigcompanies C Theimportanceofthegigeconomy

4 C Theimportanceofthegigeconomy D Acomplexdefinition

5 F Thelimitationsofthegigeconomy E Futurechallenges

6 E Futurechallenges F Thelimitationsofthegigeconomy

___/6

2.True/False/NotGiven–onequestionperparagraphT/F/NGi. PeoplewhoworkfortheGigEconomyareself-employed. Tii. Definingisdifficultbecauseofthedifferenttypesofworkers.[markets] Fiii. OndemandserviceslikePeopleperhourandfreelancerarethemostpopular. NGiv. Themajorityofgigworkersaresatisfiedwiththeflexibility[nonumbergiven] NGv. Somecrowd-sourcingprofilesarelying.[deceptive] Tvi. Moreresearchisnecessarytoofferbetterprotection. T

___/6OpenanswerquestionsParagraph13.WhatisOxfordUniversityforecasting?1 40%growth

___/1

Paragraph14.Whatarethemainreasonsfortheincreaseofthegigeconomy?1 Digitalization2 Financialpressures3 Increasedfrequencypeoplearechangingjobs

___/3

Paragraph25.Whatarethemaindifferencesbetweenthetwodefinitions.1 McKinseyfocusesonindividualworker,paysystemsandtypesofworkers

2 V&Dfocusonthefivekeysectors

___/2


___________________________________________________________________________


Paragraph36.Whatarethefivekeycompaniesgivenasexamples?1 Airbnb2 Uber3 Deliveroo4 Peopleperhour.com/freelancer.com5 NOcompany–justtheterm‘crowdfunding’

___/5

Paragraph47.Whatarethekeybenefits?Economic 1.Labourforceparticipation

2.Stimulatingconsumption3.Boastingproductivity

Individuals 1.Satisfied/work-lifebalance 2.Autonomy 3.Flexibility Business 1.Globaltalentpool 2.Reducedoperationalcosts 3.lowerlong-termcontracts

___/6

Paragraph58.Whatarethekeyproblems?Policymakers Differencesinregulatoryframeworkssuchas…

1.Taxpolicies2.Applications3.Enforcement

Workers 1.Notprotectedbyworkers’rights

2.NoentitlementsSick,holiday,Pension3.forcedtoworkatlowerrates4.Nojobsecurity5.Nocontinuity

Employers 1.Notloyaltobrand

2.Crowd-sourcingprofilemaybeinaccurate[deceptive/exaggerated]3.Legaldisputesoverworkers’rights

___/9


___________________________________________________________________________


Paragraph69.WhatisthemainevidencethattheGigeconomyisheretostay?Employmentishighestamongtheunder35well-educatedagerange(VaughanandDaverio,2016),thussuggestingthisisgoingtobethefutureofemployment.

___/2

Paragraph610.Whatarethemostimportantissuestobeaddressed?Thebiggestchallengeforthegigeconomyisregulationandcontrol.[mustincludetwopoints]

___/2

Paragraph611.Whatfouraspectsshouldregulationfocuson?1 Protectionforlow-skilled,low-paidgigworkers2 Betterworkingrights3 Disabilityanddiscriminationlaws4 Minimumwageisbeingearnt

___/4

12.Author’sstance?IstheauthorfororagainsttheGigeconomy?Why?For NoWhy?1.Seestheeconomyasthefutureofthelabourmarket2.Butbelievesmoreregulation&researchisnecessarytomakeitfairer.

___/2



1 This 25%growth

2 those Gigworkers

3 these platforms

4 It Thegigeconomy

5 they Gigworkers

6 this Thecollaborativeeconomy

___/5


___________________________________________________________________________


14.Keylanguage–explainthesetermsfromthecontext/usesynonymswhereappropriate)Paragraph word Explanation

1 notion

Abelief/conception

2 encapsulates Theessentialfeaturesofsomething

2 financiallystrapped Inneedofmoney

2 anumbrellaterm Abroadtermthatincludesmostideas

3 authenticexperience Real/naturaltoreallife

3 Toshowcase Exhibit/display

4 veritable Real/interesting/exciting

4 stimulating Encouraging/arousinginterest

4 autonomy Self-controlling

5 deceptive Misleading/inaccurate/nottrue

5 embroiled Involvedinargument/conflict/difficultsituation

6 ‘arelicofthepast’ Somethingfromthepastbuthasbeenoutmodelledorimproved

6 toflourish Togrow/develop/prosper

___/11



___________________________________________________________________________


CSR:CorporateSocialResponsibility


UK


___________________________________________________________________________


CorporateSocialResponsibilityC.Wilson(2017)

1)CorporateSocialResponsibility(CSR)hasundergoneprofoundtransformationfromanideologyofuncertaintyintoanindispensablecomponentofbusinesspractice.Hamiduetal,(2015)acknowledgethatithasbecomeamandatorytoolinstrategizing,complyingwithregulationsandmaintainingstandards,buildingcorporatereputationandobtainingcustomerloyaltywhich‘allculminatesinincreasingprofitabilityandoverallattainmentoforganisationalobjectives’(p.83).Infact,over9,270companiesfrom166countriesaresignatoriestothevoluntaryUNGlobalCompactwhichfulfilsacompanies’obligationtoestablishissuesonhumanrights,labourstandards,theenvironmentandanti-corruptioninitiatives(Wang,2016).Overall,CSRisanintegratedstrategicapproachinresponsibilitytoachievesharedvalueforthestakeholderandsocietalobligations.2)CSR’sprogression,sinceitsintroductionin1950’s,hasbeenquiteremarkable.Inthebeginningitwascharacterizedas‘philanthropic’inseekingtopromotethewelfareofothers.Thisfocusedonmainlyreligiousandhumanephilosophies,communitydevelopmentandpovertyalleviation(Carrol,2008).Inthe1970’s,CSRbecameasymbolofcommitment.Itbecamemore‘regulated’focusingonchangingperspectivesinstakeholdertomanagerrelationships,encouragingaconsciousawarenessofcorporatereputationandplacingemphasisonlegalandethicalissues(ibid).The1990’sinstigatedwhatisnowcommonlyseenas‘instrumental/strategic’CSR.Aprominenceonenvironmentalprotection,sustainabilityandtransparencywithaclearguideoninternationalizationofCSRstandards(ibid).Insum,Matten&Moon(2002)summarisethisasaclusterconceptofbusinessethics,corporatephilanthropy,corporatecitizenship,sustainabilityandenvironmentalresponsibility,allembeddedinsocial,political,economicandinstitutionalcontexts.3)ResearchbyWeber(2008)highlightsthattheimplementationofCSRhasbecomeapre-eminentfeatureinbuildingandmaintainingcorporatereputation,whichhasbecomeregardedasanessentialstrategicresourcefactoringintoacompany’scompetitiveadvantage.Park,Lee,&Kim,(2014)claimthatthekeybenefitsbehindbeingsociallyresponsibleinclude:improvedfinancialperformance,contributiontomarketvalue,amoregeneralpositiveimpactonsocietalstakeholders,aconsciousconnectionwithconsumers,andimprovedproductquality.Theauthorsalsonotethatinternalreasonssuchasincreasedemployeecommitmentandreducedemployeeturnoverareimportantbenefits.Inaddition,Carrol(2008)assertsthatCSRactivitiesgenerateresiliencetonegativecompanyinformationandconsumers’awareness,andthiscultivatesappreciationtotheattitudesandattributionsaboutwhycompaniesareengaginginCSRinitiatives.4)TheeffectivenessofCSReffortsisoftendifficulttoobserve.Companiesoftenfailthroughshort-runCSRinvestmentpolicies.Theymaylackcommitmentandsupportatseniormanagementlevel,andfailtotakeintoconsiderationtheissuesthataresalienttostakeholdergroupsinvariousmarkets.Long-terminvestmentisthekeybutalackoftransparencyandgoalclarityoftenmakeitdifficulttounderstandandmanagetherisksandboundariesofcorporatesocialactivities(Wang,2016).HowmanagersprioritizeandbalanceaspectsofCSRisoftenachallengefacingmanycorporations.Moreover,the


___________________________________________________________________________


complexityinorganizingandmanagingCSRisexacerbatedformultinationalcorporationswithgloballogisticchainsandoff-shoremanufacturingindustries.ThevaluesofCSRinonecountryarenotnecessarilyinaccordancetoanothercountry’sgovernmentalandenvironmentalpolicies(Hamiduetal,2015).Afinalchallengeistheconceptof‘shopdressing’or‘greenwashing’.ThisiscompanieswhoarepromotingtheperceptionofapplyingCSRprinciplesthroughmarketingandadvertising,butinrealityarenotimplementingthebusinesspracticeandtherebymisleadingconsumers.Anexampleofitwouldbeacompanypromotingrecycledpackagingbutitsfactoriesarepollutinglocalwatercourses.5)Overthepastsixtyyears,theissueforcompanieshasbecomehowtoconductCSRinastrategicallyandeffectivelyplannedmannerthatmeetsstakeholder’sexpectations,maximisesprofitandoffersaclearanddemonstrablenarrativeofitsimpactonthecompanyandforthecommunity(Wangetal.2016).CSRisaconstantlyevolvingintegratedanddisciplinedfieldofbusinessactivity,whichhasmovedonfromthelatestmanagementfadintoasignificantprofessionalbodyofpolicyandpractice.AlthoughCSRisformedonvoluntarybasis,thereareanumberofkeyareasthatneedtobeaddressed.Therecognitionofdiversityisanecessityforauniversalapproach.Thisincludesbettercollaborativeandsupportivemechanismsfromsourcetosupplychaintoselleradvancingthesustainabilityagenda(Gov.uk,2014).Inaddition,GovernmentscouldplayagreaterrolebychangingexistinglegislationtotheCompaniesActandSocialServicesActthroughtheinclusionofenforcingethicalstandards,theadoptionofeffectiveandtransparentsupplychainmanagementpracticeandlegalactionagainstgreenwashing/misleadingmarketingcampaigns.Overall,sustainability,transparencyandethicalstandardsarekeydriversinresponsiblebusinesspracticeandthevaluesofthesociety. References Carroll,A.B.(2008)AHistoryofCorporateSocialResponsibility:conceptsandpractices,inCrane,A.etal(eds),TheOxfordHandbookofCorporateSocialResponsibility,OxfordUniversityPress,pp.19-46Gov.uk.(2014).CorporateResponsibility:Goodforbusiness&society.DepartmentforBusinessInnovation&Skills.Availableat:https://www.gov.uk/government/uploads[Accessed17February2017]Hamidu,A.Haron,H.&Amran,A.(2015).CSR:AReviewofDefinitions,CoreCharacteristicsandTheoreticalPerspectives.JournalofSocialSciences.6(4)83-95Matten,D.,&Moon,J.(2004)ImplicitandExplicitCSR:AconceptualframeworkforunderstandingCSRinEurope.ICCSRResearchPaperSeries(29-2004),UniversityofNottinghamPark,J.,Lee,H.,&Kim,C.(2014).Corporatesocialresponsibilities,consumertrustandcorporatereputation:SouthKoreanconsumers’perspectives.JournalofBusinessResearch,67,295-302.Wangetal.,(2016).CorporateSocialResponsibility:anoverviewandnewresearchdirections.AcademyofManagementJournal.59,(2)534–544.Weber,M.(2008).TheBusinessCaseforCorporateSocialResponsibility:acompanylevelmeasurementapproachforCSR.EuropeanManagementJournal,26,247-61.


___________________________________________________________________________



1.Headings–chooseasubtitleforeachparagraph1 B CSRpopularity A ThevaluesofCSR

2 B CSRpopularity

3 C Thewayforward

4 D CSRhistoricalevolution

5 E Keychallenges

___/4

2.True/False/NotGiven–onequestionperparagraphT/F/NG1 xxi. TheUNGlobalcompactisanobligation 2 xxii. CSRhasachievedagreatdealsince1950 3 xxiii. CSRhashelpedmanycompaniesbecomemorecompetitive 4 xxiv. Long-terminvestmentinCSRboastsproductivity 5 xxv. CSRisafadandwillevolveintosomethingdifferent

___/5OpenanswerquestionsParagraph13.WhatdoesCSRleadto?i)

___/1

Paragraph24.Keychangesinthethreemainareas:

1950

Philanthropic

Religious&humanephilosophyiii)iv)

1970s

ii)___________v)vi)Legalandethicalissues

i)________Instrumental/strategic

Environmentalprotectionvii)viii)InternationalizationofCSRstandards

___/8


___________________________________________________________________________


Paragraph35.WhatarethemainbenefitsofCSR?1 Improvedfinancialperformance2 3 4 5

___/4

Paragraph36.NamethetwokeyfeaturesofinternalCSRbenefits.1 2

___/2

MultipleChoice:Paragraph47.Acompany’sfailureinCSRisdueto…(chooseonlyoneanswer)a onlyinvestingforalimitedamountoftimeb highermanagementarenotsupportivec notbeingattentivetostakeholdermattersd Alltheabove

___/1

Paragraph48.Themainproblemformanagersisa prioritizingandbalancingaspectsofCSRb investinglong-terminCSRc transparencyandgoalclarityd Alltheabove

___/1

Paragraph49.Theproblemswithgloballogisticchainsandoff-shoremanufacturingindustriesisa organizingCSRb managingCSRc internationalgovernmentalandenvironmentalpoliciesd Alltheabove

___/1


___________________________________________________________________________


DefinitionsParagraph410.Whatisgreenwashing?

___/2

Openanswers

Paragraph511.Whatarethekeyareasthatneedtobeaddressed?1 2

___/2

Paragraph512.WhatneedstobeaddedtotheCompaniesActandSocialServicesAct?1 2 3

___/3

Linkingwords



1 it Answer:CSR

2 this

3 this

4 it

5 this

___/4


___________________________________________________________________________


13.Author’sstance?IstheauthorfororagainstCSR?Why?For Against[chooseone]Why?

___/2


1 indispensable

absolutelynecessary

1

culminates i)

2 prominence ii)

3 pre-eminent iii)

3 resilience iv)

4 salient v)

4 exacerbated vi)

5 fad vii)

5 recognition viii)

5 mechanisms ix)

5 existing x)

___/10



___________________________________________________________________________



1.Headings–chooseasubtitleforeachparagraph1 B CSRpopularity A ThevaluesofCSR

2 D CSRhistoricalevolution B CSRpopularity

3 A ThevalueofCSR C Thewayforward

4 A Keychallenges D CSRhistoricalevolution

5 C Thewayforward E Keychallenges

___/4

2.True/False/NotGiven–onequestionperparagraphT/F/NG1 xxvi. TheUNGlobalcompactisanobligation[voluntary] F2 xxvii. CSRhasachievedagreatdealsince1950[remarkable] T3xxviii. CSRhashelpedmanycompaniesbecomemorecompetitive NG4 xxix. Long-terminvestmentinCSRboastsproductivity NG5 xxx. CSRisafadandwillevolveintosomethingdifferent[professionalpractice] F

___/5OpenanswerquestionsParagraph13.WhatdoesCSRleadto?i) increasingprofitabilityandoverallattainmentoforganisationalobjectives

___/1

Paragraph24.Keychangesinthethreemainareas:

1950

Philanthropic

Religious&humanephilosophyiii)communitydevelopmentiv)povertyalleviation

1970s

ii)Regulatedv)stakeholdertomanagerrelationshipsvi)consciousawarenessofcorporatereputationlegalandethicalissues

i)1990sInstrumental/strategic

Environmentalprotectionvii)sustainabilityviii)transparencyInternationalizationofCSRstandards

___/8


___________________________________________________________________________


Paragraph35.WhatarethemainbenefitsofCSR?1 Improvedfinancialperformance2 Contributiontomarketvalue3 Positiveimpactonsocietalstakeholders4 Consciousconnectionwithconsumers5 Improvedproductquality.

___/4

Paragraph36.NamethetwokeyfeaturesofinternalCSRbenefits.1 Increasedemployeecommitment2 Reducedemployeeturnover

___/2

MultipleChoice:Paragraph47.Acompany’sfailureinCSRisdueto…(chooseonlyoneanswer)a onlyinvestingforalimitedamountoftime[short-runCSRinvestmentpolicies]b highermanagementarenotsupportive

[maylackcommitmentandsupportatseniormanagementlevel]

c notbeingattentivetostakeholdermatters[Non-considerationoftheissuesstakeholdergroupsinvariousmarkets]

d Alltheabove___/1

Paragraph48.Themainproblemformanagersis…a prioritizingandbalancingaspectsofCSRb investinglong-terminCSRc transparencyandgoalclarityd Alltheabove

___/1

Paragraph49.Theproblemswithgloballogisticchainsandoff-shoremanufacturingindustriesis…a organizingCSRb managingCSRc governmentalandenvironmentalpoliciesd Alltheabove

___/1


___________________________________________________________________________


DefinitionsParagraph410.Whatisgreenwashing?1 PromotingtheperceptionofCSRprinciplesthroughmarketingandadvertising,

butinrealityarenotdoingitandmisleadingconsumers.[keytermsmustbeincluded]

___/2

Openanswers

Paragraph511.Whatarethekeyareasthatneedtobeaddressed?1 Therecognitionofdiversity2 collaborativeandsupportivemechanismsfromsourcetosupplychaintoseller

___/2

Paragraph512.WhatneedstobeaddedtotheCompaniesActandSocialServicesAct?1 Enforcingethicalstandards2 Theadoptionofeffectiveandtransparentsupplychainmanagementpractice3 Legalactionagainstgreenwashing/misleadingmarketingcampaigns

___/3

Linkingwords



1 it CSR

2 this CSRprogression[mustincludeprogression]

3 this Resilienceandawareness

4 it Shopdressingorgreenwashing

5 this Therecognitionofdiversity

___/4


___________________________________________________________________________


13.Author’sstance?IstheauthorfororagainstCSR?For Against[chooseone]

Why?Finalsentence:sustainability,transparencyandethicalstandardsarekeydriversinresponsiblebusinesspracticeandthevaluesofthesociety

___/2


1 indispensable

absolutelynecessary

1

culminates reachapointofhighestdevelopment

2 prominence thestateofbeingimportant,famous,ornoticeable

3 pre-eminent surpassingallothers;verydistinguishedinsomeway

3 resilience thecapacitytorecoverquicklyfromdifficulties;toughness

4 salient 1. mostnoticeableorimportant

4 exacerbated make(aproblem,badsituation,ornegativefeeling)worse

5 fad anintenseandwidelysharedenthusiasmforsomething,especiallyonethatisshort-lived;acraze

5 recognition acknowledgementoftheexistence

5 mechanisms establishedprocessbywhichsomethingtakesplaceorisbroughtabout

5 existing inoperationatthecurrenttime:

___/10



___________________________________________________________________________


Globalisation:InternationalTrade


UK


___________________________________________________________________________


Globalisation:InternationalTrade(Wilsonetal.2017)

1.Globalisationisaneconomicprocessthatincreasestheassimilationofeconomiesaroundtheworld,particularlythroughtradeandfinance.Thetermalsoreferstothemovementofpeople(labour)andknowledge(technology)acrossinternationalborders.Itisanextensionofthesamemarketforcesthathaveoperatedforcenturiesatalllevelsofhumaneconomicactivity–villagemarkets,urbanindustries,orfinancialcentresbeyondnationalborders(IMF,2017).Today’sglobalmarketsoffergreateropportunityforpeopletotapintomoreandlargermarketsaroundtheworld,whichmeanstheycanhaveaccesstomorecapital,technology,cheaperimports,andlargerexportmarkets.Globalisation,howeverisnotjustarecentphenomenon.Someanalystshavearguedthattheworldeconomywasjustasglobalised100yearsagoasitistoday(Kobayashi-Hillary,2008).2.Globalisationoffersextensiveopportunitiesfortrulyworldwidedevelopmentbutitisnotprogressingevenly.Thegrowinggapsbetweenrichandpoorcountries,andrichandpoorpeoplewithincountries,areincreasing.Therichestquarteroftheworld’spopulationsawitspercapitaincomeincreasenearlysix-foldduringthelastcentury,whereasthepoorestquarterexperiencedlessthanathree-foldincrease(HarrisonandCavendish,2014).However,insomecountries,especiallyinAsia,percapitaincomeshavebeenmovingrapidlytowardslevelsintheindustrialcountriessince1970.Havingsaidthis,alargernumberofdevelopingcountrieshavemadeonlyslowprogressorhavelostground.Inparticular,percapitaincomesinAfricahavedeclinedrelativetotheindustrialcountriesandinsomecountrieshavedeclinedinabsoluteterms(IMF,2017).3.Itisclearthatsomecountriesareamalgamatingintotheglobaleconomymorequicklythanothers.Countriesthathavebeenabletointegrateareseeingfastergrowthandlowerpoverty.Outward-lookingpolicieslikelowtaxesandlowtradebarriersbroughtgreaterprosperitytomuchofEastAsia,transformingitfromoneofthepoorestareasoftheworld40yearsago(IMF,2017).Duetothesepolicies,livingstandardshaverisen,andithasbeenpossibletomakeprogressondemocracyandissuessuchastheenvironmentandworkstandards.Bycontrast,inthe1970sand1980swhenmanycountriesinLatinAmericaandAfricapursuedinward-lookingpolicies(suchasprotectionismandstate-ownedcompanies),theireconomiesstagnatedordeclined,povertyincreasedandhighinflationbecamethenorm(Kobayashi-Hillary,2008).Inmanycases,especiallyinAfrica,therewereexternaldevelopmentssuchaswarandnaturaldisasters,whichmadetheproblemsworse.Encouragingthistrendtowardsoutward-lookingpolicies,notreversingit,isthebestcourseforpromotinggrowth,developmentandpovertyreduction(IMF,2017).4.Theeffectsofglobalisationcanbeseeninthreemainareas:trade,movementofpeopleandsharedknowledge.Firstofall,trade.Developingcountriesasawholehaveincreasedtheirshareofworldtradefrom19%in1971to29%in1999(IMF,2017).Asmentioned,Asia’snewlyindustrialisedeconomieshavedonewell,whileAfricaasawholehasdonepoorly.Whatcountriesexportisalsoimportant.Themostprofoundrisebyfarhasbeenintheexportofmanufacturedgoods.Theshareofprimarygoodsinworldexportssuchasfoodandrawmaterials,mostofwhichareoftenproducedbythepoorestcountrieshas


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declined(Kobayashi-Hillary,2008).Secondly,movementofpeople.Workerswhomovefromonecountrytoanothertofindbetteremploymentopportunitiesinadvancedeconomiesprovideawayforglobalwageconvergence.Harrison&Cavendish(2014)claimthereisalsothepotentialforskillstobetransferredbacktothedevelopingcountriesandforwagesinthosecountriestorise.Thirdly,informationexchangeisanimportant,oftenoverlooked,aspectofglobalisation.Directforeigninvestment,whichisprivatecapitalfromoutsidethecountry,bringsnotonlyanincreaseintheamountofacountry’scapital,butalsotechnicalinnovation(ibid).Moregenerally,knowledgeaboutproductionmethods,managementtechniques,exportmarketsandeconomicpoliciesisavailableatverylowcost,anditrepresentsahighlyvaluableresourceforthedevelopingcountries(IMF,2017).5.Inconclusion,globalisationisoneofthemosteffectivewaysofhelpingdevelopingnationsweknow.Asglobalisationhasprogressed,livingconditionshaveimprovedsignificantlyinvirtuallyallcountries.However,nocountry,leastofallthepoorest,canaffordtoremainisolatedfromtheworldeconomy.Theinternationalcommunityshouldtrybyreinforcingtheinternationalfinancialsystem,throughtrade,andthroughaidtohelpthemintegrateintotheworldeconomy,growmorerapidly,andreducepoverty.Thatisthewaytosafeguardallpeopleinallcountrieshaveaccesstothebenefitsofglobalisation.736wordsReferenceListHarrison,T.andCavendish,R,E.2014.WhyInternationalTradeistheKeytoDevelopment.TheJournalofModernEconomics.3(10),pp.178-183IMF,2017.Globalisation:Threatoropportunity[online].Availableat:https://www.imf.org/external/np/exr/ib/2000/041200to.htm[Accessed10March2017]Kobayashi-Hillary,M.2008.BuildingafuturewithBRICs.1stEd.Berlin:Springer


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1.Headings–chooseasubtitleforeachparagraph1 A Keyresults

2 B Definition

3 C Integration

4 D Conclusion

5 D Conclusion E Progression

___/4

2.True/False/NotGiven–onequestionperparagraphT/F/NG

P1 Globalisationisbuiltaroundhistoricalmarketforces

P2 Globalisation’sprogressionisnotfairlybalanced

P3 Outwardlookingpoliciescanbenegativefordevelopingcountries

P4 Tradeisthemostimportanteffectofglobalisation

P5 Theglobalcommunityhasnoresponsibilitytoassistpoorercountries

___/5OpenanswerquestionsParagraph13.Whatarethefourkeytermsassociatedwithglobalization?i) Tradeii) iii) iv)

___/3

Paragraph14.Whatdoesglobalizationofferpeople?i) Largermarketsii) iii) iv) v)

___/4


___________________________________________________________________________


Paragraph25.Percapita–whatisthemonetarydifferencebetweenthesetwo?Richestquarter i)

Poorestquarter ii)

___/2

Paragraph26.Whatisthedifferencepercapitabetweenthesetwocontinents?Asia i)

Africa ii)

___/2

MultipleChoiceParagraph37.Outwardlookingpoliciesare…(chooseonlyoneanswer)a democraticprogressionb improvedstandardsoflivingandprosperityc loweredtariffsandtradingd Alltheabove

___/1

Paragraph38.Inwardlookingpolicies…(chooseonlyoneanswer)a aregovernmentruncompaniesb restraintradebetweencountriesc stalleconomicgrowthd Alltheabove

___/1

Paragraph39.What’sthesolutionfordevelopingcountries?(chooseonlyoneanswer)a Stopthewarsb Developoutwardlookingpoliciesc Givefinancialaidtoalleviated Alltheabove

___/1


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KeyeffectsParagraph410.TradeThestrongestriseisin… i)

Themaingoodsare… ii) iii)

Theseareproducedin… iv)

___/4

Paragraph411.PeopleWorkersbenefitsare… i)

Globalwages… ii)converge

Skilltransfertodevelopingcountriescreate…

iii)

___/2

Paragraph412.InformationexchangePrivatecapitaliscalled… i)

Increases… ii)acountry’scapital

iii)

iv)

v)

vi)

vii)

viii)

___/7

Paragraph511.Whatneedstobedone?Theinternationalcommunityshouldstrengthen…1 2

___/2


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Linkingwords

13.Referencewords–explainwhattheseconnectto:(underlinedinthetext)


1 it Answer:Globalisation

2 this

3 which

4 which

5 them

___/4

14.Author’sstance?IstheauthorfororagainstGlobalisation?Why?For Against[chooseone]Why?

___/2


1 assimilation Integrate/tobecomepartofsomething

1 Totapinto i)

2 extensive ii)

2 tohavelostground iii)

3 amalgamating iv)

3 protectionism v)

4 profound vi)

4 convergence vii)

5 reinforcing viii)

5 tosafeguard ix)

___/9OverallTotal:____/55


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1.Headings–chooseasubtitleforeachparagraph1 B Definition A Keyresults

2 Progression B Definition

3 Integration C Integration

4 Keyresults D Conclusion

5 Conclusion E Progression

___/4

2.True/False/NotGiven–onequestionperparagraphT/F/NG

P1 Globalisationisbuiltaroundhistoricalmarketforces[samemarketforcesthathaveoperatedforcenturies]

T

P2 Globalisation’sprogressionisnotfairlybalanced[notprogressingevenly]

T

P3 Outwardlookingpoliciescanbenegativefordevelopingcountries[Encouragingthistrendtowardsoutward-lookingpolicies]

F

P4 Tradeisthemostimportanteffectofglobalisation

NG

P5 Theglobalcommunityhasnoresponsibilitytoassistpoorercountries[‘shouldtryto’butdoesnotstateithasto/ordoesn’thaveto]

NG

___/5OpenanswerquestionsParagraph13.Whatarethefourkeytermsassociatedwithglobalization?i) Tradeii) Financeiii) Labouriv) Technology

___/3

Paragraph14.Whatdoesglobalizationofferpeople?i) Largermarketsii) Morecapitaliii) Technologyiv) Cheaperimportsv) Largerexports

___/4


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Paragraph25.Percapita–whatisthemonetarydifferencebetweenthesetwo?Richestquarter i)Six-fold

Poorestquarter ii)Three-fold

___/2

Paragraph26.Whatisthedifferencepercapitabetweenthesetwocontinents?Asia i)Movingquickly–towardslevelsofindustrialisedcountriessince

1970Africa ii)Slowprogress/lostground.Declinedinabsoluteterms

___/2

MultipleChoiceParagraph37.Outwardlookingpoliciesare…(chooseonlyoneanswer)a democraticprogressionb improvedstandardsoflivingandprosperityc loweredtariffsandtradingd Alltheabove

___/1

Paragraph38.Inwardlookingpolicies…a aregovernmentruncompaniesb restraintradebetweencountriesc stalleconomicgrowthd Alltheabove

___/1

Paragraph39.What’sthesolutionfordevelopingcountries?a Stopthewarsb Developoutwardlookingpoliciesc Givefinancialaidtoalleviated Alltheabove

___/1


___________________________________________________________________________


KeyeffectsParagraph410.TradeThestrongestriseis i)export

Keygoods ii)food iii)rawmaterials

Produced iv)Poorcountries

___/4

Paragraph411.PeopleWorkersbenefits i)Findbetteremploymentopportunities

Globalwages ii)converge/convergence

Skilltransfertodevelopingcountries

iii)wagesrise

___/2

Paragraph412.InformationexchangePrivatecapitalis i)DirectForeignInvestment

Increases… ii)country’scapital

iii)technicalinnovation

iv)productionmethodknowledge

v)managementtechniques

vi)exportmarkets

vii)economicpolicies

viii)valuableresourcesfordevelopingcountries

___/7

Paragraph511.Whatneedstobedone?Theinternationalcommunityshouldstrengthen…1 trade2 aid

___/2


___________________________________________________________________________


Linkingwords

13.Referencewords–explainwhattheseconnectto:(underlinedinthetext)


1 it Answer:Globalisation

2 this Asia’srise

3 which Externaldevelopments

4 which Directforeigninvestment

5 them Poorestcountries

___/4

14.Author’sstance?IstheauthorfororagainstGlobalisation?Why?For Against[chooseone]Why?Verydescriptivetexthighlightingthekeyareasofglobalization.BUTtheauthorsstressmoreneedstobedonetomakeitfairerfordevelopingcountries.

___/2


1 assimilation Integrate/tobecomepartofsomething

1 Totapinto i)togetbenefitfrom/toaccess

2 extensive ii)coveringoraffectingalargearea

2 tohavelostground iii)tobecomelesspopular/fallbehind

3 amalgamating iv)tocombine/integrate/becomeone

3 protectionism v)toprotectdomesticindustriesfromforeigncompetition

4 profound vi)verygreatorintense

4 convergence vii)tomeetatapoint/tocometogether

5 reinforcing viii)makestronger

5 tosafeguard ix)toprotect

___/10OverallTotal:____/50


___________________________________________________________________________


AEUKSummaryWritingsContents:

1. Brexit:ThepathtoBrexit

2. TheFinancialCrash:Thecauseofthe2008FinancialCrisis

3. GigEconomy:TheGigEconomy

4. CSR:CorporateSocialResponsibility

5. Globalisation:InternationalTrade


UK


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StudentTwotypesoflessonLesson#1:[Easy]*****[B2/C1]1.Trytopredictthecontentoftext/writedownkeyterms/ideas2.Readtext–checkwordsandmeaningswithadictionary3.Fillintheoutlinetoidentifykeypointsandsupport4.Writethesummary–onlyoneparagraph(200-250words)5.Checkkeypoints&modelanswer(trytoachieve4keypointsand4supportpoints)6.Answercriticalthinkingquestions&checkanswersLesson#2:[Hard]*****[C1]1.Readtext–nodictionary2.Fillinoutlinetoidentifykeypointsandsupport/ortakenotesfromtext4.Writethesummary–onlyoneparagraph(200-250words)5.Checkkeypoints&modelanswer(trytoachieve4keypointsand4supportpoints)6.Answercriticalthinkingquestions&checkanswers

TeacherTwotypesoflessonLesson#1:[easy]*****[B2/C1]1.Giveouttextaweek/daybeforethetest–studentsread,checkvocabularyandmeaning.2.Testday–giveoutanewcopyoftextandsummaryquestion3.Set1hourtoreadtext,takenotesandwritethesummary4.Thesummary–onlyoneparagraph(200-250words)5.Feedback1:takeinandmark[usecorrectioncode*]6.Feedback2:giveoutkeypoints&modelanswer7.SUMMARY:Shouldcontainatleast4mainideaswithsupport–seeSummaryKeyPoints8.Extra:Answercriticalthinkingquestions/groupdiscussion(30minutes)

Lesson#2:[hard]*****[C1]1.Set1hourtoreadtextandwritethesummary2.Thesummary–onlyoneparagraph(200-250words)3.Feedback1:takeinandmark[usecorrectioncode*]4.Feedback2:giveoutkeypoints&modelanswer5.SUMMARY:Shouldcontainatleast4mainideaswithsupport–seeSummaryKeyPoints6.Extra:Answercriticalthinkingquestions/groupdiscussion(30minutes)

Correctioncode*:www.academic-englishuk/error-correction


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Brexit:ThepathtoBrexit

SummaryWritingCopyright:Thesematerialsarephotocopiablebutwewouldappreciateitifalllogosandwebaddresseswereleftonmaterials.Thankyou.

UK


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ThePathtoBrexitC.Wilson(2017)

1)TheEuropeanUnionwasformedinthe1950s,specificallyunderthe1957TreatyofRomethatimplementedthesinglemarketforgoods,labour,servicesandcapitalwithcommonpoliciesontransportandagricultureandtoincorporatethecreationoftheEuropeanSocialfundandcommission.IntheseearlystagesitwastermedtheEuropeanEconomicCommission(EEC)andwasderivedofsixmemberstates;Germany,France,Italy,Belgium,theNetherlandsandLuxembourg.TheUKdeclinedaninvitationtojoin.Nevertheless,twenty-twoyearslatertheUKwasgrantedaccessionin1973andforty-threeyearslatertheUKhasvotedtoleave.2)SincejoiningtheEUbackin1973therehasbeensignificantprogressintermsofregulationandpolicy.Thefirstbeing‘theSchengenTreaty’in1985.Thistreatyratifiedaborderlesszoneacrossmemberstatestoincludecommonvisapoliciesandtheabolishmentofpassportcontrols.TheUKrefusedtosignuptothisagreement.Thesecondwas‘theMaastrichtTreaty’in1992.ThischangedthenamefromEECtotheEUandintroducedthesinglecurrencyoftheEurothroughthecreationoftheEuropeanCentralBank(ECB)tocreateasecondreservecurrencyintheworldandsolelycontrolEUmonetarypolicytomaintainstability.ItalsodevelopedabettercoordinationofeconomicpoliciesandtheimplementationofEuropeanCitizenship.ThefinaldevelopmentwastheLisbonTreatyin2007.ThisimprovedpasttreatiesbutalsoextendedpowersofjudicialmattersandEuropeanParliament.3)Atthemomentin2017,theEUconsistsof28stateswhooperatethroughasinglemarketwithstandardisedlawsandEUpoliciesaimedatensuringthefourfreedomsofthefreemovementofgoods,services,capitalandpeoplewithcommonpoliciesontrade,agriculture,fisheriesandregionaldevelopment.TheEUisthesecondlargesteconomyintheworldwithacombinedGDPof$20.75trillion,20%oftheglobalgrossdomesticproductand30%ofthenetglobalwealthof$223trillion.TheEUisthelargestexporterintheworldandsince2008isthelargestimporterofgoodsandservices.Internaltradeisaidedbytheremovaloftariffsandreducedbordercontrol.AccordingtotheOfficeofNationalStatistics(2016),theUKpaysonaverage£18bnayearformembership,thisequatesto£350millionaweek.In2016,theUKreceivedarebateof£5bnandtheEUspent£4.5bnontheUK,thereforetheUK’snetcontributionisabout£8.5bnayear.Thesecostsseemexuberantandthetruebenefitsaredifficulttocalculateagainstinvestment.Ontheonehand,theUKGovernment(2016)claimsthatEUbenefitsprovide4-5%ofUKGDPor£62-78bnayearwiththesinglemarketincreasingflowsofinvestmentandthefreemovementofpeoplebenefitsrecruitmentandknowledgetransferskills.Ontheotherhand,withoutEUmembershipthefutureisunclearbutnotnecessarilynegativeduetothefactthatthiscouldbeanewhorizonopeningbettertrademarketsoutsideacontrolledsinglemarketandinvestingsolelyintheUK.4)TheUKanditsrelationshipwiththeEUhasbeenaturbulentaffair(Young&Gee,2016)fromthestartandtherehavebeennumerouscallsforreferendums.Thesebeganjustaftertheaccessionin1975whenareferendumtoleavewascalledonthedisagreementwiththeEEC’sagriculturalpoliciesandbudgetfinancing,thenagainin1983whenMargretThatcherfamouslynegotiatedarebatefrombeingthenetcontributortotheEUfunds.Followingthatin1992,theUKsuspendeditsmembershipovertheintroductionoftheEuroandtheexchangeratemechanism.In2011,theUKpreventedtheEUGovernmentplanstolevybanksandrestrictLondon’sfinancialsector.In2013,DavidCamerontriedtorenegotiatetheUK’smembershipandhavegreaterpowerofimmigration,exclusionfromEurozonebailoutsandpreventtheEU’scommitmentof‘anevercloserunion’,whichtheUKseesasacreationofasuper-stateEuropecontrolledbyonetypeofpoliticalunion.However,thenegotiationswerenotfullymetandareferendumwasproposed.Finally,in2016,troubleinthe


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Eurozoneandtheongoingmigrantcrisisledtothereferendumbeingcalledforthe23thJune2016.Thecontrollinggovernment‘theconservatives’weredividedwiththePrimeMinister‘DavidCameron’supportingremainandtwoofhisleadingpoliticianssupportingleave.5)OnThursday23rdJuneBritainvotedtoleavetheEUwith51.9%leaveand48.1%remainoverall.However,ScotlandandNorthernIrelandhadamajorityvoteofremainwith62/38and55/44respectively.AccordingtoOfficialGovernmentfigures(2016),34millionpeoplevotedequatingtoa72%turnout,whichwasthehighesteverturnoutinthehistoryofvoting.ThereferendumresultssuggesttheUKissplitdownthemiddleinitsopinionontheEU.Themainargumentsfortheleavecampaignweretoregainsovereignty,tocutimmigration,toremoverestrictionsofthesinglemarkettoaccessglobalmarketsandtospend£350millionaweekontheUKeconomy.Economistshaveanalysedtheresultsandfoundacorrelationbetweenthepeoplewhovotedtoleavebeingaspecificsocialgrade(manual,casualworkers),non-graduatelevelofeducationandtheover60s(pensioners).Also,themainareasthatvotedleavewereplaceswithhighnumbersofimmigrants,highunemploymentanddeprivationfromlackofGovernmentfunding(mainlytheNorthofEngland).LondonontheotherhandvotedoverwhelminglytoremainintheEU(59.9%),whichsomeEconomistssuggestisbecauseofmulticulturalareas,ayoungerpopulationandhighlyeducatedresidents.6)Thereferendumvotewastoleaveso‘BrexitmeansBrexit’.SincethevotetherehasbeenachangeinPrimeMinisterandacompletepro-Brexitcabinetreshuffletoaccommodatethenewchanges.TheGovernmentwilltrigger‘Article50’ofthetreatyofLisboninMarch/April2017.TriggeringArticle50,istheformalnotificationoftheintentiontowithdrawtheUKfromtheEUandwilltheUKhastwoyearstoleavefromthatdate.Atthesametime,allthetreatiesthatgovernmembershipnolongerapplytoBritain.ThetermsofexitwillbenegotiatedbetweenBritain’s27counterparts.TheGovernmenthastwomainchoicesa‘hard’or‘soft’Brexit.AhardBrexitmeanstogiveupfullaccesstothesinglemarket,gobacktoWTOrulesfortradeandgainfullcontrolofbordersandlaws.AndasoftBrexitmeanskeepasimilarcloserelationshipwiththeEUsimilartoexistingarrangementswithfreeaccesstotheSinglemarket,bankpassportingrightsbutnoseatonEUcommission,andthisdealmustincludethefourfreedoms.Whateverthechoice,itisnowbecomingincreasinglyevidentthattheshort-termimpactislikelytobenegativewithuncertaintiesovertradearrangementsalreadyaffectingthepoundsterling.TheBankofEnglandhasstatedthatBrexitisthebiggestrisktofinancialstabilityinhistory.However,themainpointisthatnooneactuallyknowsexactlywhatwillhappenconcerningtheimplicationsofBrexitoneconomicprosperityandtheUK’sroleontheinternationalstage.References:TheUKGovernment.(2016).EuropeanUnionReferendum2016:BriefingPaperNo:CBP7639.[online]HouseofCommons.Availableat:http://researchbriefings.files.parliament.uk/documents/CBP-7639/CBP-7639.pdf[Accessed10Jan.2017].ONS,(2016).TheUK'sEUmembershipfee.[online]OffceofNationalStatistics.Availableat:https://fullfact.org/economy/our-eu-membership-fee-55-million/[Accessed10Jan.2017].Young,AandGee,G,(2016).RegainingSovereignty,Brexit,theUKParliamentandtheCommonLaw.EuropeanPublicLaw,22(1),131-147.


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Outline:Summarynote-taking–takenotesonthekeypointsofthearticle1)mainidea:

Support:

2)mainidea:

Support:

3)mainidea:

Support:

4)mainidea:

Support:

5)mainidea:

Support:6)mainidea:

Support:


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SummaryKeyPointsANSWERSAgoodsummaryshouldhave4mainideasand2pointsofsupportforeachmainidea

1)mainidea:EUHistory

Support:a) 1950’sformed–1957TreatyofRomeb) 6countries(Ger,Fr,It,Bel,Neth,Lux)c) UK1973

2)mainidea:ThreeKeyTreaties

Support:a) SchengenTreaty1985.borderlesszone/nopassportcontrols.UKrefusedtosignb) MaastrichtTreaty1992.EECtoEU/singlecurrency/ECB/EuropeanCitizenship.c) LisbonTreaty2007.judicialmattersandEuropeanParliament.

3)mainidea:TheeconomicsoftheEU

Support:a) 28MS/singlemarket/4freedoms(movement):goods,services,capital,people)b) standardisedlawsandEUpoliciesc) 2ndlargesteconomy,importer&exporter/20%GlobalGDPd) UKcosts=£18Bn(£350maweek)/rebate£5bn,payment£4.5bn,net£8.5bne) EUmembership=4-5%GDP/approx.£70Bnf) NOEUmembershipunknownhorizon??

4)mainidea:UK&EUhistoricaldisagreements

Support:a) from1975disagreementsonagriculture,budgeting,netcontributions,rebates,

theEuro,immigration,EUbailouts,super-stateEurope,troublesintheEurozoneandon-goingmigrantcrisis.

5)mainidea:Referendumanalysis

Support:a) 23rdJune2017/51.9leave48.1remain/b) leavearguments:sovereignty,immigration,singlemarketrestrictingglobaltrade,

membershipfeestoUKeconomyc) Leavevoters=workingclass,non-graduatelevel,pensioners,d) Leaveareas=highimmigration,unemployment,deprivatione) Remain=London–(multi-cultural,younger,educated)

6)mainidea:Thewayforward

Support:a) Article50–March/April=2years/Membership&treatiesnotapplicableb) HardBrexit=nosinglemarket/WTOrules/controlbordersandcustomsc) SoftBrexit=EUcloserelationship–accesstosinglemarket=include4freedomsd) Futureisunknown??BoEfinancialrisk


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SummaryModelTask:Writea200-250-wordsummaryonthekeyelementsofBrexit.

Wordcount:_____________


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SummaryModelTask:Writea250-wordsummaryonthekeyelementsofBrexit.AccordingtoWilson(2017),therelationshipbetweentheUKandtheEUhasbeena

transitionalprocessofprogressandconflictresultingin‘Britainexiting’theEU(Brexit).The

UKjoinedtheEUin1973and43yearslater,afterdecadesofpragmaticaccomplishments

(Treaties)anddisagreements,isleavingfromtheresultsofapublicreferendum.Thekey

elementstotheEUanditstwenty-eightmembersistheaccesstoonesinglemarket

throughthefourfreedomsofgoods,people,servicesandcapitalwithallmembersfollowing

standardisedlawsandpolicies.TheEUisthe2ndbiggesteconomy,importerandexporter

witha20%ofGlobalGDP.TheUKmembershipcostis£18bnayearwithanetcontribution

of£8.5bnwithanestimatedreturnof£70bnineconomicbenefit(TheUKGovernment,

2016).TheJune2016referendumresultedinamarginalwinof52%leavewiththeUK

votingforgreatersovereignty,reductionsinimmigration,opportunitiestotradeglobally

withoutEUrestrictionsandinvestmentofEUmembershipmoneyintotheUKeconomy

instead.Thefutureisfulloffinancialrisk(BankofEngland,2016)andtheUKgovernment

hastodecidewhichdirectiontotake;ahardBrexit,whichleavestheEUcompletelyora

softBrexitthatkeepsacloserelationshipwithEU,accesstoitsSinglemarketbuthasno

control.Wills(2016)suggeststhatthisisunfamiliarterritoryfortheUKandthereare

uncertaintieshowitwillperformgloballyonitsown.

Wordcount:248


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CriticalthinkingQuestions1)Checkyouunderstandallkeyvocabulary(inboldinthetext)2)What’sthestanceoftheauthor–for/against?Why?3)Isthisacrediblearticle?Yes/no–why?3)Highlightkeyinformationinthetextyouwoulduseforanessayon‘theUKshouldnotleavetheEU?’

4)Highlighttwoareasinthetextthatyouquestion,disagreewithorlackevidence


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CriticalthinkingQuestionsANSWERS1)What’sthestanceoftheauthor–for/against?Why?Possiblyagainst–P3evidencetheUKquadrupleinvestmentinEUof£18bnto£62-78bn.Noevidenceprovidedforcounterargument‘futureisunclear’P6–uncertaintiesandBankofEnglandstatementsoffinancialrisk.2)Isthisacrediblearticle?Yes/no–why?Generally,yeswithtitle,author,dateandcrediblereferencelist.Includesin-textreferencestoevidence.BUTwhoistheauthor?Whoaretheywritingfor?Nopublication,nopublisher,nojournalname,noinstitution.Therefore,itwouldbegoodtouseforbackgroundandanyinformationusedshouldbefollowedupusingthereferencelistandquotingthereferencelistauthorsdirectly.3)Highlightkeyinformationinthetextyouwoulduseforanessayon‘theUKshouldnotleavetheEU?’

• P3–fourfreedomshavedevelopedtrade,reducedtariffsandcustoms• 2ndlargesteconomy/exporter/importer• netcontribution=£8.5bnperyear–returnof£62-78bn• Knowledgetransferskills/Futureisunclear.

• P5–votewastooclose–notover-whelming• SovereigntyishavingavoiceintheEU/Isimmigrationreallybad?/UKwillhave

topaytousethesinglemarketsowon’tsave£350m

• P6–HardBrexit=leavingthesinglemarketwillaffecthundredsofbusiness/financialrisk/nobodyknows?

4)Highlighttwoareasinthetextthatyouquestion,disagreewithorlackevidence

• P3–Governmentclaims£62–78bn=prediction?• P5–arethecampaignargumentsaccurate?Exaggerations?• Economistshaveanalysed(whoarethey?Noreference??)• Thecorrelationseemsuntruelookingatthemapofhoweveryonevoted??• Couldlackofgovernmentfundingbethemainreasonfortheleavevote?• PeopleinLondonarebettereducated?andyounger?• P6IsthefallinpoundbecauseofBrexit?• TheBankofEngland(19thJan2017)nowclaimsEUnotUKwillsufferfinancial

risks?• DotheGovernmentknowwhattheyaredoingandhasthisbeenplannedfor

years??


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TheCausesofthe2008FinancialCrisis


UK


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TheCausesoftheFinancialCrisis2008C.Wilson[2017]

1)In2008theworldexperiencedtheworstfinancialcrisissincetheGreatDepression(1930s).Theseveremagnitudeofthefinancialdisasterbecamefullyevidenttowardstheendof2007,ithad,howeverbegunyearsearlierthroughwhatmanyclaimwasthemainfactorinthecrash;sub-primemortgagelending.Thefinancialcrisisof2007-08andtheaftershocksoftheUSsubprimemortgagecrisisof2007-09isnowconsideredtobe'TheGreatRecession'.TheUSFinancialCrisisInquiryCommission[FCIC](2011)reportedthecrisiswasavoidableandwascausedfromwidespreadfailuresinregulationoffinancialinstitutionsandtherecklessactionsinriskandborrowing.Itconcludedthatkeygovernmentalpolicymakerswereill-prepared,lackedunderstandingandaccountabilityinthefinancialsystemstheyoversaw.ThisarticlewillexaminehowsubprimemortgagelendingledtotheGreatRecession. 2)Towardstheendofthe1990spropertypurchasesbegantorise.Withsuchgrowth,lendingmoneyforhousebuyingbecameaprofitablebusinessinbothmortgagesandremortgaging.Traditionally,thehousebuyersavesupadeposit(downpayment–usuallybetween10%ofthehousecost),andcontactsabankormortgagebroker,whoconnectsthemtoalender,whointurnprovidesamortgagebasedonthegroundsofspecificcriteria(permanentemployment,nopreviousfinancialdefaults(apositivecredit-score),andtherepaymentplanisachievable).Thisischaracterizedasa‘Prime-mortgage’andthelevelofriskinlendingisextremelylow.3)Throughout2000ashomeownershipbecamemorepopularandhousepricesrosesignificantly(1997–2006housepriceroseby124%intheUSand186%intheUK(USSpindices,2016)),lendersbegantosecuritisethesemortgagesintomortgage-backedsecurities(MBS)andCollateralizedDebtObligations(CDOs)andthensoldthemtotheinvestmentbankingsector.Thesemortgageswereratedbycreditagenciesintothreeareas,‘safe’,‘ok’and‘risky’,andthensoldontotheShadowBankingSectororinvestors,non-depositorybankers,andhedgefundsrespectively.However,the‘Primemortgagemarketbegantobecomesaturatedduetothosewhoqualifiedhadone.4)Therefore,sub-primemortgagelendingwasintroducedin2002/3basedonthepresumptionthatashousepricescontinuetorise,ifaborrowerdefaultsonpaymentthelenderreprocessesthehouseasequity.Lendersbegintoaddrisktothesenewmortgagesinthatnodeposit,noproofofincome,ornodocumentswererequiredtoobtainamortgage.Anestimated$3.2trillionloanswereissuedtohomeownerswithbadcreditandundocumentedincomesbetween2002-2007(FCIC,2011),andwithsucharisederegulationofbankingpolicyoccurredtoincludefraudulentautomatedunderwritingprocessesandcreditagencies'standardsfalling.Atthesametime'predatorylending'offeredloansatlowinterestratesorAdjustableRateMortgage(ARM)rates,wheretheconsumerwasunawareofthecontractandassociatedrates(Krugman,2009).Thesub-primemortgageprocessactivelyencouragedariseinhousepriceandaphenomenonknownasthe'housingbubble',wherehousepricerisesmuchfasterthanwagesmakinghousingunaffordableorpeopleborrowingmorethantheycanrepay.5)TheshadowbankingsectorofInvestmentbankers,hedgefundsandinsurancefirmsallboughtintothehighlyprofitableworldofsub-primemortgagebackedsecurities.Thesehighlyprofitablecreditinstruments(CDOs),weretradedinternationallythroughderivativesandforeignexchangetradingandspreadacrosstheglobalfinancialcommunity.By2006,80%ofU.Smortgagesweresubprimeloanswithanestimatedvalueof$1.4trillion(FCIC,2011)Shadowbankingoftenreferredtoasparallelbanking,werenotsubjecttothesamebankingregulatorycontrols,theseinstitutionswerevulnerableastheyborrowedshort-terminliquidmarketstopurchaselongterm,illiquidand


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riskyassets.Thismeantdisruptionsincreditmarketswouldcreaterapiddeleveraging,sellinglongtermassetsatdepressedprices.6)Interestratesbegantorisein2007,andthiswasthebeginningoftheend.Thedefaultratesbegantoincreasewithmanyborrowersunabletomeetthemonthlypayments,thisinturnmeantthatMBSandCDOsbegantolosevaluewithhigherdefaultrates.Concurrently,thehousingbubbleburstandhousepricesfell40%(FCIC,2011),leavingmanypeopleinnegativeequity.However,themostseriouseffectwasacrisisofliquidityandtrustthatoccurredacrossbanks.LehmanBrotherswentbankruptandmanymore(MerrillLynch,AIG,FreddieMac,FannieMae,HBOS,RoyalBankofScotland,Bradford&Bingley,Fortis,HypoandAlliance&Leicester)wereonthevergeofbankruptcyandneededtobebailedoutbyGovernments.Infact,21Banksand61hedgefundshadbeenforcedtodeclarebankruptcyintheUSalone(Morris&Song,2008).Theremainingbanksroseinterestratesandstoppedlendingmoney,thisbecameknownasthe'CreditCrunch'.7)Since2008,anumberofmeasureshavebeencreatedinresponsetorectifytheproblems.Theseincludefinancialrescueplans,centralbank’smonetarypoliciesofloweringinterestrates,andGovernmentalpublicstimuluspackages.Therearecallsforimprovedmarketregulationandsupervision,whichhasbeenmetthroughtheDoddFrankAct(Krugman,2009).ThiswasthelargestreformoftheU.SbankingsectorsinceWW2.Inaddition,anewglobalfinancialsystemregulatedbytheIMFisbeingimplemented,whoshouldhaveabroaderroleintheregulatorysystemoftheworldeconomy.8)Overall,thefinancialcrisisof2008wasnotjustthesub-primemortgagelendingsector.Thereareanumberofothercontributingfactorsthatthisarticlehasnotdiscussed,butprimarilyfraudulentgreedybankingpracticeseemstolieattheheartofit.Toidentifywhoisexactlytoblameisincrediblydifficultbecausetheresultsoftoxicassetsfromfraudulentunderwritingprocesses,easycreditconditions,predatorylending,deregulationandover-leveragingallhadasignificanteffectoncreatingoneofthebiggestcrashesofalltime.Itseemsthateveryonewasresponsible,fromgovernment’sinabilitytoregulateinnovativebankingpractice,Economistsunabletoforecasteconomiccollapse,financialinstitutionsexploitingthecomplexityofMBSandCDOsandevenhomeownerstakingonloanstheywereunabletopayback.Thequestionsthatexist,however,arewhetheritwillhappenagainandarethemeasuresinplacesufficienttocontrolandregulatebankingpractice.

[1003words]ReferenceListKrugman,P.(2009).TheReturnofDepressionEconomicsandtheCrisisof2008.NY.NortonCompanyLimited.Morris,S.andSongH,S.(2009).FinancialRegulationinaSystemContext.BrookingsPapersonEconomicActivity,2008(2),pp.229-274.Availableat:http://www.princeton.edu/~smorris/pdfs/Morris-FinancialRegulationinaSystemContext.pdf[Accessed21Jan.2017].Thefinancialcrisisinquiryreport[FCIR]:finalreportoftheNationalCommissionontheCausesoftheFinancialandEconomicCrisisintheUnitedStates.(2011).ChoiceReviewsOnline,[online]48(12),pp.48-7034.Availableat:http://fcic-static.law.stanford.edu/cdn_media/fcic-reports/fcic_final_report_full.pdf.[Accessed18Jan.2017].USSpindices.com.(2016).S&PCoreLogicCase-ShillerU.S.NationalHomePriceNSAIndex-S&PDowJonesIndices.[online]Availableat:https://us.spindices.com/indices/real-estate/sp-corelogic-case-shiller-us-national-home-price-nsa-index[Accessed22Jan.2017]


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Support:

2)mainidea:

Support:3)mainidea:

Support:

4)mainidea:

Support:

5)mainidea:

Support:


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6)mainidea:

Support:

7)mainidea:

Support:8)mainidea:

Support:


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1)mainidea:FinancialCrisisBackground

Support:• 2008=GreatDepression(1930s).'TheGreatRecession'.• Sub-primemortgagelending.• [FCIC](2011)avoidable/failuresinregulationoffin.institutions/riskborrowing.• Gov.policynounderstandingandaccountabilityinthefinancialsystems.

2)mainidea:ThePrimemortgage

Support:• Lendingmoney=profitablebusiness2000.• Processdeposit&specificcriteria(permanentemployment,apositivecredit-

score,achievablerepayment).• Riskinlendingisextremelylow.

3)mainidea:Mortgagesecuritization

Support:• 1997–2006houseprice>186%UK(USSpindices,2016).• Mortgage-backedsecurities(MBS)&CollateralizedDebtObligations(CDOs).• Soldtoinvestmentbanking/ShadowBanking/investors,non-

depositorybankers,andhedgefunds.• Primemortgagesaturatedmarket

4)mainidea:Sub-primemortgage

Support:• Introducedin2002/3=housepricesrise.• Fraudulentbankingpracticenodeposit,noproofofincome,nodocuments.• Automatedcreditagencyunderwriting/predatorylending.• SPMlending=housingbubble.

5)mainidea:Profitabletrading

Support:• ShadowbankingsectorofInvestmentbankers,hedgefunds,insurancefirms• Tradedinternationally-derivativesandforeignexchangetrading• Shadowbanking(parallelbanking),dif.bankingregulatorycontrols,• Vulnerableshort-termborrowinginliquidmarkets• Rapiddeleveraging,sellinglongtermassetsatdepressedprices.


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6)mainidea:TheCollapse

Support:• Interestrates>2007,=>defaultrates.• MBSandCDOslosevalue.• Housingbubbleburst=housepricesfell<40%(FCIC,2011).• Acrisisofliquidityandtrustthatoccurredacrossbanks.• Bankbankruptcy/Governmentbailouts/creditcrunch.

7)mainidea:Newregulatorysystem

Support:• Financialrescueplans,/<interestrates,/Governmentalstimuluspackages.• DoddFrankAct(Krugman,2009).• AnewglobalfinancialsystemregulatedbytheIMFisbeingimplemented.

8)mainidea:thefutureSupport:

• Othercontributingfactors• Fraudulentunderwritingprocesses,easycreditconditions,predatorylending,

deregulationandover-leveraging.• Government’sinabilitytoregulateinnovativebankingpractice,• Economistsunabletoforecasteconomiccollapse,• FinancialinstitutionsexploitingthecomplexityofMBSandCDOs• Homeownerstakingonloanstheywereunabletopayback.• Willithappenagain?


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SummaryModelTask:Writea200-250wordsummaryonthekeyelementsofthe2008FinancialCrisis

Wordcount:_____________


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FinancialCrisis:ModelSummaryTask:Writea250-wordsummaryonthekeyelementsofthe2008FinancialCrisisAccordingtoFCIC(ascitedinWilson,2017),thefinancialcrisiswasprimarilycausedfrom

fraudulentbankpractice,economistsbeingunabletoforecastglobalemergencies,and

Governmentalpolicylackinginnovationintheregulationoffinancialsystems.Thecrashand

itsconsequencesbecameknownas‘theGreatRecession’,withmanyclaimingthatitwas

thehigh-risksub-primemortgagelendingsectorresponsibleforthecollapse.Wilson(2017)

highlightsthatinthebeginningofthe2000,mortgagelendinghadbecomeprofitable

businesswithmanybankssecuritizinghomeloansintoMortgageBackedSecurities(MBS)

andCollateralizedDebtObligations(CDOs)andtradingtheseontheglobalmarket.Asthe

tradegrewandwithlittleregulation,thesystembegantobeexploitedwithscrupulous

lendersprovidingmortgagestohigh-riskclients.Fraudulentbankingpracticeincluded

creatingmortgageswithoutdeposits,proofofincomeandofficialdocumentation,with

creditagencyunderwritingservicesfailingtomeetglobalstandardprocedures.Inaddition,

theriseofparallelbanking,aformofshadowbankingthatincludedinsurancefirmsand

hedgefundstakingriskysecuritiesandtradingthemontheworldmarkets,meanttracking

andregulatingthebankingpracticewasimpossible.Theriseofinterestratesin2007,

createdsignificantdefaultrates,whichinturnledtoabankingcrisisofliquidity.Manytop

bankswereonthebrinkofbankruptcy,needingGovernmentinterventionandfinancial

assistance.Governmentshavesinceimplementedaseriesofstimuluspackagesthatinclude

loweringinterestratesandregulatingbankingpracticethroughtheDoddFrankActandIMF

GlobalFinancialsystem.

[251]


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CriticalthinkingQuestionsi)What’sthestanceoftheauthor?Doeshethinkthatthebankingindustrywasresponsible?Highlightwhere?

[2points]ii)Isthisacrediblearticle?Yes/no–why?

[2points]iii)Highlightfourkeypartsofinformationinthetextyouwoulduseforanessayon‘Sub-primemortgagetradingwasthemaincauseofthefinancialcrash’.

[4points]iv)Highlighttwoareasinthetextthatyouquestion,disagreewithorlackevidence

[2points]


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CriticalthinkingQuestionsi)What’sthestanceoftheauthor?Doeshethinkthatthebankingindustrywasresponsible?Highlightwhere?YES,butprimarilyfraudulentgreedybankingpracticeseemstolieattheheartofit(P8)(Thisisadirectopinionatedstatementmadebytheauthor)YES,fraudulentunderwritingprocesses,easycreditconditions,predatorylending,deregulationandover-leveragingallhadasignificanteffectoncreatingoneofthebiggestcrashesofalltime(P8)(allofthesepointtowardsbanking)[2points]ii)Isthisacrediblearticle?Yes/no–why?Yes,sourcesaregenerallyacademic/includesin-textsourcestokeydata.BUTwhoistheauthor?Notworkingwithapublisherorinstitution.Therefore,besttousethesourcesinthereferencelist.[2points–yes1pointBUT1point]iii)Highlightkeyinformationinthetextyouwoulduseforanessayon‘sub-primemortgagetradingwasthemaincauseofthefinancialcrash?’

• Lendersbegantosecuritisethesemortgagesintomortgage-backedsecurities(MBS)andCollateralizedDebtObligations(CDOs)

• Primemortgagemarketbegantobecomesaturated• Lendersaskedfornodeposit,noproofofincome,ornodocuments• $3.2trillionloanswereissuedtohomeownerswithbadcreditandundocumented

incomesbetween2002-2007(FCIC,2011),• 'Predatory’lendingofferedloansatlowinterestratesorAdjustableRate

Mortgage(ARM)rates,consumerunawareofthecontractandassociatedrates.• Profitablecreditinstruments(CDOs),weretradedinternationallythrough

derivatives&foreignexchangetrading&acrosstheglobalfinancialcommunity• Shadowbankingoftenreferredtoasparallelbanking,werenotsubjecttothe

samebankingregulatorycontrols• FinancialinstitutionsexploitingthecomplexityofMBS/CDOs[4ideas=4points]

iv)Highlighttwoareasinthetextthatyouquestion,disagreewithorlackevidenceP1:whatmanyclaimwasthemainfactorinthecrash;sub-primemortgagelending.Who?P5:Howmuchmoneywerepeoplemakingbuying&sellingCDOs?P5:WhywereparallelbankingnotsubjecttosameregulatorycontrolsP6:Arepeoplestillinnegativeequity?P7:Didpoliciesofloweringinterestrateswork?P7:IstheIMFregulationhappeningnowin2017?P8:Whydidn’tthegovernmentkeepupwithbankingtechnology?P8:Whycouldn’teconomistsseetheF.Ccoming?P8:Haveanyofthefinancialinstitutionsapologisedorbeenfined?P8:Arehomeownerstoblame?[TheseC.Tideasarebasedonneedingmoreinformation][any2ofthese–obviouslysubjective:anycrediblestudentanswertoo][2points]


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TheGigEconomy


UK


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TheGigEconomyC.Wilson(2017)

1)Theworkingworldischanging.Inourincreasingflexiblelabourmarket,thenotionofa‘jobforlife’andtheconceptof9-5workdayisdiminishing.Initsplaceisthegigeconomy,whicharecollaborativeworkingplatformswherepeopleworkontemporarycontracts(gigs),oftenasfreelancersandself-employed.RecentresearchfromOxfordUniversity(2016)suggeststhatthislabourmarkethasgrown25%,withpredictedgrowthofupto40%by2020,andisoccupiedby30%oftheUK’spopulationworkingonshort-termtemporaryprojects.Thissignificantgrowthisattributedtodigitalization,increasedfinancialpressuresandtheincreasedfrequencyofpeoplechangingjobs(TheRecruitment&EmploymentConfederation(REC),2016).2)DefiningtheGigEconomyisincrediblydifficultbecauseofhowdiversethelabourmarketis.WorldleadingresearchfromtheMckinseyReport(2016)definesitas‘independentworkthatencapsulatesautonomy,paymentforthetaskorassignmentorsalesandashort-termrelationshipbetweentheworker’.Thisincludespeoplewhoprovidelabourservicesaswellasthosewhotradeingoodsorrentassets.TheMcKinseyReportalsodefinesworkersintofourbands:FreeAgents,CasualEarners,ReluctantsandFinanciallyStrapped.VaughanandDaverio(2016)separatethegigeconomyintofivekeysectors:peertopeeraccommodation,peer-to-peertransportation,ondemandhouseholdservices,ondemandprofessionalservicesandcollaborativefinance.Overall,theseeconomiesareindependenttemporaryshort-termpositionsthatincludeaformofcollaborativeconsumptionandareoftenoperatedthroughadigitalplatform.Thisarticlewillusethe‘gigeconomy’asanumbrellatermtoincludealloftheabove.3)Thereare275collaborativeeconomyplatformsintheEUcreatinganestimated€25bnannually(VaughanandDaverio,2016).Keyleadersinpeer-to-peeraccommodationarecompanieslikeAirbnb.Thisplatformallowsindividualstorentoutaspareroomoranentirehousetotravellers.Themaindriveristhecreationofextraincomeforthesupplierbutalsocreatinganauthenticexperienceandcheaperaccommodationforthetraveller.Peer-to-peertransportationisUberwhoprovide‘ataxistyle’servicethroughtheirUberapp.ClientssubmitatriprequestandtheapplinksthemtothenearestUber‘gig’driver.Apopularon-demandhouseholdserviceisthecompanyDeliveroo,whoareanonlinefooddeliveryservicecompanythroughwhichcustomersorderfoodfromlocalrestaurantsadvertisedontheDeliverooplatform.Thefoodisthencollectedanddeliveredbygigemployeeswithin30minutes.Ondemandprofessionalservicesarecompanieslikepeopleperhour.comorfreelancer.com.Theseplatformsadvertiseandorganizetopprofessionals.Workersshowcasetheirportfolios,recentworkandtrustedreviewssothatemployerscanchooseappropriately.Finally,collaborativefinanceiscommonlytermedas‘crowd-funding’theseofferindividualsandbusinessesopportunitiestoinvest,lendandborrowdirectlybetweeneachother.ThegigeconomyisquicklybecomingavitalcomponentoftheUKlabourmarketforarangeofsectorsandindustries(REC,2016).4)Thetransformativeimpactofthegigeconomyishavingveritableeconomicbenefitsbyraisinglabourforceparticipation,stimulatingconsumption,andboostingproductivity


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(McKinseyReport2016).Itismeetingthegrowingdemandforservicesfromconsumersandorganisationsandhasthepotentialforconsiderablegrowthanddevelopmentoverthenext20years(REC,2016).Researchseemstosuggestthatthegigeconomyoffersabetterwork-lifebalancethroughautonomyandflexibility.Inaddition,businessesarebenefittingfromhavingaccesstoaglobaltalentpool,reductioninoperationalcostsandloweringtherisksoflong-termemploymentcontracts.5)Sucharapidgrowthofthegigeconomyisposingprofoundchallengesforpolicymakersandregulators.Therearealreadysignificantdifferencesinregulatoryframeworksintaxpolicies,applicationsandenforcementacrossEurope(VaughanandDaverio,2016:3).REC(2016)claimsthatworkersarenotprotectedbycommonworkers’rightslaws,donotqualifyforsick,holidayorpensionentitlements,andtheycanbeforcedtoworkatlowerrateswithnojobsecurityorcontinuity.Withregardstoemployers,REC(2016)statesthatgigworkersmaynotbeloyaltothecompany’sbrand,thereisalsothepossibilitythatcrowdsourcingprofilesaredeceptiveorexaggerated,andwithlittleregulatorycontrolofgigemployees,companiesmaybecomeembroiledinlegaldisputesoverworker’srights.Overall,itseemsthatthegigeconomyhasanumberofchallengestobeaddressed.6)Thecommodisationofthelabourmarkethascreatedshortfixedworkingcontracts,andlimitedjobsecurity,andlifetimeemploymentwithonecompanyisnowarelicofthepast.Digitaltechnologiesarechangingworkpatternsandofferinggreateropportunities.Itseemsnosurprisethatparticipationinthecollaborativeeconomyishighestamongthewell-educatedunder35agerange(VaughanandDaverio,2016),thussuggestingthisisgoingtobethefutureofemployment.Thebiggestchallengeforthegigeconomyisregulationandcontrol.Researchiskeyinenablingpolicy-makerstomodernizeclassificationsofworkpatterns,taxfilingandcompliancerequireimprovements.Itisimperativethatthisresearchimprovesregulationofferingprotectionforlow-skilled,low-paidgigworkerswithbetterworkingrights,acknowledgingdisabilityanddiscriminationlawsandalsocontrollingminimumwages.Overall,‘regulatingthegigeconomyisaboutallowinginnovationtoflourishbutmakingsuretheadvantagesarewell-distributed’(REC,2016:56).

[Words:860]ReferencesTheMckinseyReport(2016)IndependentWork:choice,necessityandthegigeconomy(October2016).MckinseyGlobalInstitutePublications.TheRecruitment&EmploymentConfederation(2016)GigEconomy:TheUberisationofWork.InstituteofRecruitmentProfessionalspublishing.TheUniversityofOxford(2016)RiseofOnlineWorkCapturedintheFirstOnlineLabourIndex.Availableat:http://www.ox.ac.uk/news/2016-09-21-rise-online-work-captured-first-online-labour-index[Accessed03February2016)Vaughan,R.&Daverio,R.(2016)AssessingtheSizeandPresenceoftheCollaborativeEconomyinEurope.PWC-EuropeanCommissionPaper(DGGROW).


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Support:

2)mainidea:

Support:3)mainidea:

Support:

4)mainidea:

Support:

5)mainidea:

Support:


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6)mainidea:

Support:


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1)mainidea:Theriseofthegigeconomy

Support:1)a) Theworkingworldischanging/flexiblelabourmarket.b) ‘Jobforlife’andtheconceptof9-5workday.c) Collaborativeworkingplatforms/temporarycontracts(gigs),freelancersself-employed.d) OxfordUniversity(2016)grown25%/predictedgrowth40%2020.e) 30%UK’spopulationworkingonshort-termtemporaryprojects.f) Digitalization,increasedfinancialpressures/changingjobs(REC,2016).

2)mainidea:Twodefinitions

Support:2)a) Definitiondifficult=diversemarket.b) MckinseyReport(2016)independentworkwithautonomy,paymentforthetaskor

assignmentorsalesandshort-termrelationships.c) Labourservices=tradeingoodsorrentassets.d) MR:FreeAgents,CasualEarners,ReluctantsandFinanciallyStrapped.e) Peertopeeraccommodation,peer-to-peertransportation,ondemandhousehold

services,ondemandprof.services&collaborativefinance(Vaughan&Daverio,2016).3)mainidea:Principalgigcompanies

Support:3)a) 275EUcollaborativeeconomyplatforms[€25bnannually](Vaughan&Daverio,2016).b) Peer-to-peeraccommodation=Airbnb.c) Peer-to-peertransportation=Uber.d) On-demandhousehold=Deliveroo.e) Ondemandprofessionalservices=peopleperhour.comorfreelancer.com.f) Collaborativefinance=as‘crowd-funding’.

4)mainidea:Theimportanceofthegigeconomy

Support:4)a) Economic-labourforceparticipation/stimulatingconsumption/boastingproductivity

(McKinseyReport,2016).b) Excessivegrowthanddevelopmentoverthenext20years(REC,2016).c) Workers-satisfiedbetterwork-lifebalance/autonomy/flexibility.d) Businesses-globaltalentpool,reductioninoperationalcostsandloweringlong-term

employmentcontracts.5)mainidea:Thelimitationsofthegigeconomy

Support:5)a) Profoundchallengesforpolicymakersandregulators.b) DifferencesinEUregulatoryframeworksintaxpolicies/applications/enforcement(V&D).c) Workersnoworkers’rightslaws,Nosick,holidayorpensionentitlements/lowerrates

withnojobsecurityorcontinuity.d) Employeesnotloyaltothebrand/crowdsourcingprofilesaredeceptiveorexaggerated,

andwithlittleregulatorycontrol=embroiledinlegaldisputesoverworker’srights.(REC)


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6)mainidea:Futurechallenges

Support:6)a) Gigeconomyishighestunder35well-educatedagerange(Vaughan&Daverio,2016)b) Thebiggestchallengeisregulationandcontrol.c) Researchmodernizeclassificationsofworkpatterns,taxfilingandcompliance

requirements.d) Regulationoffersprotectionforlow-skilled,low-paidgigworkers/betterworkingrights/

disabilityanddiscriminationlaws/minimumwage.


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SummaryModelTask:Writea200-250wordsummaryonthekeyelementsoftheGigEconomy.

Wordcount:_____________


___________________________________________________________________________


GigEconomy:ModelSummaryTask:Writea250-wordsummaryonthekeyelementsoftheGigEconomyAccordingtoWilson(2017),thegigeconomyisincreasinglypopularbutneedsbetter

regulationandcontroltopreventdiscriminationandexploitation.Collaborativedigital

platformsthatemployself-employedworkersarebecomingthenewflexiblelabourmarket,

withapredictedgrowthofnearlydoublein4years(OxforduniversitycitedinWilson,

2017).Thegigeconomycrossesavarietyofsectorsthusmakingitcomplicatedtooffera

cleardefinitionbutgenerallyitconsistsofshort-termworkingrelationshipsusuallybeing

independentandautonomous,withinstantpaymentsystemsforsales,tasks,tradeorrents.

Itcanbedividedintokeysectionsofaccommodation,transportation,householdtask,

professionalservicesandfinancethatallincludepeer-to-peerorcollaborativeelements

(Vaughan&DaveriocitedinWilson,2017).Thebeneficialaspectsofthegigeconomyisthat

itoffersmoreemploymentsproductivityandeconomicgrowth,forworkers,itoffers

opportunitiesforbetterwork-lifebalanceandforbusinesses,itcanimproveoperational

costsbyemployingkeystaffatbusytimes.However,thereareanumberoflimitationsthat

needtobediscussedsuchasthechallengesofhowdifferentcountriesviewgigcompanies

withdifferenttaxpoliciesandenforcements(ibid).Thereareworkerrightsissuesandno

traditionalworkingentitlements.Foremployersthereisthecontroversyofhiringstafffrom

platformsthathavenotbeencompletelyvettedandmaynotbeloyal.Overall,Wilson

(2017)claimsthatthegigeconomyneedsregulationandcontrolwhichcanonlybe

achievedthroughbetterresearch.

[244]


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CriticalthinkingQuestionsi)What’sthestanceoftheauthor?Doeshethinkthatthegigeconomyisgoodforthefutureofthelabourmarket?Highlightwhere?[2points]ii)Isthisacrediblearticle?Yes/no–why?

[2points]iii)Highlightfourkeypartsofinformationinthetextyouwoulduseforanessayon‘thegigeconomywillhaveanegativeimpactonthefuturelabourmarket’.

[4points]iv)Highlighttwoareasinthetextthatyouquestion,disagreewithorlackevidence

[2points]


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CriticalthinkingQuestionsi)What’sthestanceoftheauthor?Doeshethinkthatthegigeconomyisgoodforthefutureofthelabourmarket?Highlightwhere?Yes,goodforthefuture/economicbenefits1.Seestheeconomyasthefutureofthelabourmarket2.Butbelievesmoreregulation&researchisnecessarytomakeitfairer.[2points]ii)Isthisacrediblearticle?Yes/no–why?Yes,goodsourcechoice.Butwhoistheauthor?Notpublishedorsupportedbyajournalpublication.Probablyagoodideatousetheprimarysources[2points]iii)Highlightfourkeypartsofinformationinthetextyouwoulduseforanessayon‘thegigeconomywillhaveapositiveimpactonthefuturelabourmarket’.P1:OxfordUniversity(2016)suggeststhatthislabourmarkethasgrown25%,withpredictedgrowthofupto40%by2020.P3:275EUcollaborativeeconomyplatformsEUcreatinganestimated€25bnannually(VaughanandDaverio(2016).P3:ThegigeconomyisquicklybecomingavitalcomponentoftheUKlabourmarketforarangeofsectorsandindustries(REC,2016).P4:Thegigeconomyishavingveritableeconomicbenefitsbyraisinglabourforceparticipation,stimulatingconsumption,andboastingproductivity(McKinseyReport2016).P4:Hasthepotentialforexcessivegrowthanddevelopmentoverthenext20years(REC).P4:Workersaremoresatisfiedwithabetterwork-lifebalanceautonomyandflexibility.P4:Businessesarebenefittingfromhavingaccesstoaglobaltalentpool,reductioninoperationalcostsandloweringtherisksoflong-termemploymentcontracts(ibid).P6:Digitaltechnologiesarechangingworkpatternsandadvocatinggreateropportunities.highestamongtheunder35well-educatedagerange(VaughanandDaverio,2016),thussuggestingthisisgoingtobethefutureofemployment.[4points]iv)Highlighttwoareasinthetextthatyouquestion,disagreewithorlackevidenceP1:Digitalization,increasedfinancialpressuresandtheincreasedfrequencypeoplearechangingjobs–surelythere’smorereasonsthanthis–employersarecuttingcosts.P3:ThegigeconomyisquicklybecomingavitalcomponentoftheUKlabourmarketforarangeofsectorsandindustries(REC,2016)–couldbetruebutthesecompaniesarehavinglegalityproblemswithtraditionalcompanies.Forexample;Uberhasbeenbannedinsomecities.P4:Researchseemstosuggestthatworkersaremoresatisfiedwithabetterwork-lifebalancethroughtheautonomyandflexibility–nodataorsourceforthisstatementP4:Reductioninoperationalcostsandloweringtherisksoflong-termemploymentcontracts–Isitwhatemployersarereallytryingtoachieveanyway?P5:Therearealreadysignificantdifferencesinregulatoryframeworksintaxpolicies,applicationsandenforcementacrossEurope–likewhat?P5:Donotqualifyforsick,holidayorpensionentitlements(it’sself-employment?)P5:Gigworkersmaynotbeloyaltothebrand(aretraditionalworkers?)P6:Thebiggestchallengeforthegigeconomyisregulationandcontrol.(what’sbeingdone?)P6‘Regulatingthegigeconomyisaboutallowinginnovationtoflourishbutmakingsuretheadvantagesarewell-distributed’(isthisachievable?)[TheseC.Tideasarebasedonneedingmoreinformation][any2ofthese–obviouslysubjective:anycrediblestudentanswertoo][2points]


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CSR:CorporateSocialResponsibility

SummaryWriting

Copyright:Thesematerialsarephotocopiablebutwewouldappreciateitifalllogosandwebaddresseswereleftonmaterials.Thankyou.

UK


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CorporateSocialResponsibilityC.Wilson(2017)

1)CorporateSocialResponsibility(CSR)hasundergoneprofoundtransformationfromanideologyofuncertaintyintoanindispensablecomponentofbusinesspractice.Hamiduetal,(2015)acknowledgethatithasbecomeamandatorytoolinstrategizing,complyingwithregulationsandmaintainingstandards,buildingcorporatereputationandobtainingcustomerloyaltywhich‘allculminatesinincreasingprofitabilityandoverallattainmentoforganisationalobjectives’(p.83).Infact,over9,270companiesfrom166countriesaresignatoriestothevoluntaryUNGlobalCompactwhichfulfilsacompanies’obligationtoestablishissuesonhumanrights,labourstandards,theenvironmentandanti-corruptioninitiatives(Wang,2016).Overall,CSRisanintegratedstrategicapproachinresponsibilitytoachievesharedvalueforthestakeholderandsocietalobligations.2)CSR’sprogression,sinceitsintroductionin1950’s,hasbeenquiteremarkable.Inthebeginningitwascharacterizedas‘philanthropic’inseekingtopromotethewelfareofothers.Thisfocusedonmainlyreligiousandhumanephilosophies,communitydevelopmentandpovertyalleviation(Carrol,2008).Inthe1970’s,CSRbecameasymbolofcommitment.Itbecamemore‘regulated’focusingonchangingperspectivesinstakeholdertomanagerrelationships,encouragingaconsciousawarenessofcorporatereputationandplacingemphasisonlegalandethicalissues(ibid).The1990’sinstigatedwhatisnowcommonlyseenas‘instrumental/strategic’CSR.Aprominenceonenvironmentalprotection,sustainabilityandtransparencywithaclearguideoninternationalizationofCSRstandards(ibid).Insum,Matten&Moon(2002)summarisethisasaclusterconceptofbusinessethics,corporatephilanthropy,corporatecitizenship,sustainabilityandenvironmentalresponsibility,allembeddedinsocial,political,economicandinstitutionalcontexts.3)ResearchbyWeber(2008)highlightsthattheimplementationofCSRhasbecomeapre-eminentfeatureinbuildingandmaintainingcorporatereputation,whichhasbecomeregardedasanessentialstrategicresourcefactoringintoacompany’scompetitiveadvantage.Park,Lee,&Kim,(2014)claimthatthekeybenefitsbehindbeingsociallyresponsibleinclude:improvedfinancialperformance,contributiontomarketvalue,amoregeneralpositiveimpactonsocietalstakeholders,aconsciousconnectionwithconsumers,andimprovedproductquality.Theauthorsalsonotethatinternalreasonssuchasincreasedemployeecommitmentandreducedemployeeturnoverareimportantbenefits.Inaddition,Carrol(2008)assertsthatCSRactivitiesgenerateresiliencetonegativecompanyinformationandconsumers’awareness,andthiscultivatesappreciationtotheattitudesandattributionsaboutwhycompaniesareengaginginCSRinitiatives.4)TheeffectivenessofCSReffortsisoftendifficulttoobserve.Companiesoftenfailthroughshort-runCSRinvestmentpolicies.Theymaylackcommitmentandsupportatseniormanagementlevel,andfailtotakeintoconsiderationtheissuesthataresalienttostakeholdergroupsinvariousmarkets.Long-terminvestmentisthekeybutalackoftransparencyandgoalclarityoftenmakeitdifficulttounderstandandmanagetherisksandboundariesofcorporatesocialactivities(Wang,2016).HowmanagersprioritizeandbalanceaspectsofCSRisoftenachallengefacingmanycorporations.Moreover,the


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complexityinorganizingandmanagingCSRisexacerbatedformultinationalcorporationswithgloballogisticchainsandoff-shoremanufacturingindustries.ThevaluesofCSRinonecountryarenotnecessarilyinaccordancetoanothercountry’sgovernmentalandenvironmentalpolicies(Hamiduetal,2015).Afinalchallengeistheconceptof‘shopdressing’or‘greenwashing’.ThisiscompanieswhoarepromotingtheperceptionofapplyingCSRprinciplesthroughmarketingandadvertising,butinrealityarenotimplementingthebusinesspracticeandtherebymisleadingconsumers.Anexampleofitwouldbeacompanypromotingrecycledpackagingbutitsfactoriesarepollutinglocalwatercourses.5)Overthepastsixtyyears,theissueforcompanieshasbecomehowtoconductCSRinastrategicallyandeffectivelyplannedmannerthatmeetsstakeholder’sexpectations,maximisesprofitandoffersaclearanddemonstrablenarrativeofitsimpactonthecompanyandforthecommunity(Wangetal.2016).CSRisaconstantlyevolvingintegratedanddisciplinedfieldofbusinessactivity,whichhasmovedonfromthelatestmanagementfadintoasignificantprofessionalbodyofpolicyandpractice.AlthoughCSRisformedonvoluntarybasis,thereareanumberofkeyareasthatneedtobeaddressed.Therecognitionofdiversityisanecessityforauniversalapproach.Thisincludesbettercollaborativeandsupportivemechanismsfromsourcetosupplychaintoselleradvancingthesustainabilityagenda(Gov.uk,2014).Inaddition,GovernmentscouldplayagreaterrolebychangingexistinglegislationtotheCompaniesActandSocialServicesActthroughtheinclusionofenforcingethicalstandards,theadoptionofeffectiveandtransparentsupplychainmanagementpracticeandlegalactionagainstgreenwashing/misleadingmarketingcampaigns.Overall,sustainability,transparencyandethicalstandardsarekeydriversinresponsiblebusinesspracticeandthevaluesofthesociety. References Carroll,A.B.(2008)AHistoryofCorporateSocialResponsibility:conceptsandpractices,inCrane,A.etal(eds),TheOxfordHandbookofCorporateSocialResponsibility,OxfordUniversityPress,pp.19-46Gov.uk.(2014).CorporateResponsibility:Goodforbusiness&society.DepartmentforBusinessInnovation&Skills.Availableat:https://www.gov.uk/government/uploads[Accessed17February2017]Hamidu,A.Haron,H.&Amran,A.(2015).CSR:AReviewofDefinitions,CoreCharacteristicsandTheoreticalPerspectives.JournalofSocialSciences.6(4)83-95Matten,D.,&Moon,J.(2004)ImplicitandExplicitCSR:AconceptualframeworkforunderstandingCSRinEurope.ICCSRResearchPaperSeries(29-2004),UniversityofNottinghamPark,J.,Lee,H.,&Kim,C.(2014).Corporatesocialresponsibilities,consumertrustandcorporatereputation:SouthKoreanconsumers’perspectives.JournalofBusinessResearch,67,295-302.Wangetal.,(2016).CorporateSocialResponsibility:anoverviewandnewresearchdirections.AcademyofManagementJournal.59,(2)534–544.Weber,M.(2008).TheBusinessCaseforCorporateSocialResponsibility:acompanylevelmeasurementapproachforCSR.EuropeanManagementJournal,26,247-61.


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5)mainidea:

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1)CSRpopularity

• (CSR)uncertaintyofbusinesspractice.• Tool=strategizing/regulations/standards/reputation/customerloyalty/profitability

organisationalobjectives(Hamiduetal,2015p.83).• UNGlobalCompact=humanrights,labourstandards,theenvironmentandanti-

corruptioninitiatives(Wang,2016).• CSR=integratedstrategicapproachinresponsibilitytoachievesharedvaluefor

stakeholderandsocietalobligations.2)CSRhistoricalevolution

• 1950s‘philanthropic’=welfareofothers/religiousandhumanephilosophies/communitydevelopmentandpovertyalleviation(Carrol,2008).

• 1970’s,‘regulated’=changingperspectivesinstakeholdertomanagerrelationships,/consciousawarenessofcorporatereputation/legalandethicalissues

• 1990’s‘instrumental/strategic’=environmentalprotection,sustainabilityandtransparency/internationalizationofCSRstandards(ibid).

• allembeddedinsocial,political,economicandinstitutionalcontexts.3)ThevalueofCSR

• Weber(2008)corporatereputation,=competitiveadvantage.• keybenefits=financialperformance/marketvalue/societalstakeholders/connection

withconsumers/improvedproductquality.• Internal=employeecommitment&turnover.Park,Lee,&Kim,(2014)• Inaddition,Carrol(2008)generateresiliencetonegativecompanyinformation/

consumers’awareness/cultivateappreciation4)Challenges

• Difficulttoobserve.• Failinshort-runinvestment/lackcommitment/seniormanagementsupport/theissues

stakeholdergroups/prioritizeandbalance(longterminvest.iskey)• Complexityin“organizingandmanaging”multinationalcorporationswithgloballogistic

chainsandoff-shoremanufacturingindustries.• Int.Values=governmentalandenvironmentalpolicies(Hamiduetal,2015).• ‘greenwashing’=perceptionthroughmarketing=misleadingconsumers..

5)Futureadvancements

• CSR=evolving=disciplinedfieldofbusinessactivity• Recognitionofdiversity/bettercollaborative&supportivemechanisms-sourcetosupply

chaintoseller=sustainabilityagenda(Gov.uk,2014).• Governments=existinglegislation‘CompaniesActandSocialServicesAct’=ethical

standards,transparentsupplychainmanagement&legalactionagainstgreenwashing/misleadingmarketingcampaigns.

• Overall,sustainability,transparencyethicalstandardsarekeydriversinresponsiblebusinesspracticeandthevaluesofthesociety.


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SummaryTask:Writea250-wordsummaryonthekeyelementsofCorporateSocialResponsibility.

Wordcount:_____________


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CorporateSocialResponsibility:ModelSummaryTask:Writea250-wordsummaryonthekeyelementsofCSR.AccordingtoWilson(2017),CorporateSocialResponsibility(CSR)hasdevelopedintoa

reputablestrategyandbusinesspractice.Thishasbeenevidencedthroughasubstantial

numberofcountriessanctioningtheUNGlobalCompactinitiativeonkeyCSRcommitments

ofhuman,environmentandcorruptionstandardsincompanies.ContemporaryCSR

principlesencompassphilanthropicideologywithsocialawarenessofethics,environment

andtransparency.Thisisallembeddedinfuturesustainabilityandmeetingperspectivesof

stakeholdersandprofitability.TherearekeybenefitsofimplementingCSRintobusinesses

whichareimprovingcorporatereputationandadvantage(WebercitedinWilson2017)and

providingabetterconnectionwithconsumers.Itisclaimedthatitincreasesemployee

commitmentsandreducesstaffturnover.Nevertheless,thefinancialbenefitsaredifficultto

observeespeciallyinshort-runinvestmentplansandmanycompanieslackserious

commitment.Inaddition,thereareanumberofissuesimplementingCSRacrossglobal

networksandsupplychainsduetodifferentperceptionsofCSRinternationally.Wilson

(2017)highlightsaworryingtrendknownas‘greenwashing’,wherebycompaniesare

promotingCSRbutinrealityarenotmeetingthestandardssetanddeceivingconsumers.

Overall,CSRisanimportantinstrumentforachievingsustainableandtransparentbusiness

practice;however,itneedsimprovementsinlegislationforinternationalCSRstandards,

bettersupportmechanismstohelpcompaniesdeveloptheirCSRstrategiesand

acknowledgementofcompanydiversityinimplementingCSR.

[235words]


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CriticalthinkingQuestions1)What’sthestanceoftheauthor?DoeshethinkthattheCSRisgoodforthefuturebusinesspractice?Highlightwhere?

[2points]2)Isthisacrediblearticle?Yes/no–why?

[2points]3)Highlightfourkeypartsofinformationinthetextyouwoulduseforanessayon‘CSRisapositivestrategyforbusinesspractice’.

[4points]4)Highlighttwoareasinthetextthatyouquestion,disagreewithorlackevidence

[2points]


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CriticalthinkingQuestionsi)What’sthestanceoftheauthor?DoeshethinkthattheCSRisgoodforthefuturebusinesspractice?Highlightwhere?Yes,anindispensablecomponentofbusinesspractice(paragraph1)Sustainability,transparencyandethicalstandardsarekeydriversinresponsiblebusinesspracticeandthevaluesofthesociety.(paragraph5)[2 points]ii)Isthisacrediblearticle?Yes/no–why?Yes,goodsourcechoice.Butwhoistheauthor?Notpublishedorsupportedbyajournalpublication.Probablyagoodideatousethekeysources[2points]iii)Highlightfourkeypartsofinformationinthetextyouwoulduseforanessayon‘CSRisapositivestrategyforbusinesspractice’.P1)anindispensablecomponentofbusinesspracticeP1)Infact,over9,270companiesfrom166countriesaresignatoriestothevoluntaryUNGlobalCompactP2) Matten&Moon(2002)summarisesthisasaclusterconceptofbusinessethics,corporatephilanthropy,corporatecitizenship,sustainability,andenvironmentalresponsibility,allembeddedinsocial,political,economicandinstitutionalcontexts.P3)Allofparagraph3P5)Overthepastsixtyyears,…thatmeetsstakeholder’sexpectations,maximisesprofitandoffersaclearanddemonstrablenarrativeofitsimpactonthecompanyandforthecommunity.P5)Overall,sustainability,transparencyandethicalstandardsarekeydriversinresponsiblebusinesspracticeandthevaluesofthesociety.

[4points]iv)Highlighttwoareasinthetextthatyouquestion,disagreewithorlackevidenceP1)over9,270companiesfrom166countries[notmanycompanies??]P1)toachievesharedvalueforstakeholderandsocietalobligations.[doesit?]P3)…factoringintoacompany’scompetitiveadvantage[nodatatosupportthis?]P3)improvedfinancialperformance[nodata]Overall,paragraph3=nodataorstats=noevidenceP4)short-runCSRinvestmentpolicies[whydocompaniesdothis?]P4)theissuesthataresalienttostakeholdergroupsinvariousmarkets.[whatarethese?]P4)multinationalcorporationswithgloballogisticchainsandoff-shoremanufacturingindustries[whatareinternationalCSRpolicies?]P4)Nosourcefortheseterms‘shopdressing/greenwashing’?[whocreatedtheseterms?]P4)‘Shopdressing’[what’sanexampleofthis?]P4)‘Greenwashing’[nodata/evidence–howbadisit?]P5)CSRisformedonvoluntarybasis[isthisaproblem?–shoulditbelaw?]P5)Therecognitionofdiversityisanecessityforauniversalapproach[howcanthisbedone?]P5)includesbettercollaborativeandsupportivemechanisms[how?]P5)Governmentscouldplayagreaterrole[butwillthey?]P5)legalactionagainstgreenwashing/misleadingmarketingcampaigns[difficulttoprove?]P5)responsiblebusinesspracticeandthevaluesofthesociety[isitworking?][any2ofthese–obviouslysubjective:anycrediblestudentanswertoo][2points]


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Globalisation:InternationalTrade


UK


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Globalisation:InternationalTrade(Wilsonetal.2017)

1.Globalisationisaneconomicprocessthatincreasestheassimilationofeconomiesaroundtheworld,particularlythroughtradeandfinance.Thetermalsoreferstothemovementofpeople(labour)andknowledge(technology)acrossinternationalborders.Itisanextensionofthesamemarketforcesthathaveoperatedforcenturiesatalllevelsofhumaneconomicactivity–villagemarkets,urbanindustries,orfinancialcentresbeyondnationalborders(IMF,2017).Today’sglobalmarketsoffergreateropportunityforpeopletotapintomoreandlargermarketsaroundtheworld,whichmeanstheycanhaveaccesstomorecapital,technology,cheaperimports,andlargerexportmarkets.Globalisation,howeverisnotjustarecentphenomenon.Someanalystshavearguedthattheworldeconomywasjustasglobalised100yearsagoasitistoday(Kobayashi-Hillary,2008).2.Globalisationoffersextensiveopportunitiesfortrulyworldwidedevelopmentbutitisnotprogressingevenly.Thegrowinggapsbetweenrichandpoorcountries,andrichandpoorpeoplewithincountries,areincreasing.Therichestquarteroftheworld’spopulationsawitspercapitaincomeincreasenearlysix-foldduringthelastcentury,whereasthepoorestquarterexperiencedlessthanathree-foldincrease(HarrisonandCavendish,2014).However,insomecountries,especiallyinAsia,percapitaincomeshavebeenmovingswiftlytowardslevelsintheindustrialcountriessince1970.Havingsaidthis,alargernumberofdevelopingcountrieshavemadeonlyslowprogressorhavelostground.Inparticular,percapitaincomesinAfricahavedeclinedrelativetotheindustrialcountriesandinsomecountrieshavedeclinedinabsoluteterms(IMF,2017).3.Itisclearthatsomecountriesareamalgamatingintotheglobaleconomymorequicklythanothers.Countriesthathavebeenabletointegrateareseeingfastergrowthandlowerpoverty.Outward-lookingpolicieslikelowtaxesandlowtradebarriersbroughtgreaterprosperitytomuchofEastAsia,transformingitfromoneofthepoorestareasoftheworld40yearsago(IMF,2017).Duetothesepolicies,livingstandardshaverisen,andithasbeenpossibletomakeprogressondemocracyandissuessuchastheenvironmentandworkstandards.Bycontrast,inthe1970sand1980swhenmanycountriesinLatinAmericaandAfricapursuedinward-lookingpolicies(suchasprotectionismandstate-ownedcompanies),theireconomiesstagnatedordeclined,povertyincreasedandhighinflationbecamethenorm(Kobayashi-Hillary,2008).Inmanycases,especiallyinAfrica,therewereexternaldevelopmentssuchaswarandnaturaldisasters,whichmadetheproblemsworse.Encouragingthistrendtowardsoutward-lookingpolicies,notreversingit,isthebestcourseforpromotinggrowth,developmentandpovertyreduction(IMF,2017).4.Theeffectsofglobalisationcanbeseeninthreemainareas:trade,movementofpeopleandsharedknowledge.Firstofall,trade.Developingcountriesasawholehaveincreasedtheirshareofworldtradefrom19%in1971to29%in1999(IMF,2017).Asmentioned,Asia’snewlyindustrialisedeconomieshavedonewell,whileAfricaasawholehasdonepoorly.Whatcountriesexportisalsoimportant.Themostprofoundrisebyfarhasbeenintheexportofmanufacturedgoods.Theshareofprimarygoodsinworldexportssuchasfoodandrawmaterials,mostofwhichareoftenproducedbythepoorestcountrieshas


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declined(Kobayashi-Hillary,2008).Secondly,movementofpeople.Workerswhomovefromonecountrytoanothertofindbetteremploymentopportunitiesinadvancedeconomiesprovideawayforglobalwageconvergence.Harrison&Cavendish(2014)claimthereisalsothepotentialforskillstobetransferredbacktothedevelopingcountriesandforwagesinthosecountriestorise.Thirdly,informationexchangeisanimportant,oftenoverlooked,aspectofglobalisation.Directforeigninvestment,whichisprivatecapitalfromoutsidethecountry,bringsnotonlyanincreaseintheamountofacountry’scapital,butalsotechnicalinnovation(ibid).Moregenerally,knowledgeaboutproductionmethods,managementtechniques,exportmarketsandeconomicpoliciesisavailableatverylowcost,anditrepresentsahighlyvaluableresourceforthedevelopingcountries(IMF,2017).5.Inconclusion,globalisationisoneofthemosteffectivewaysofhelpingdevelopingnationsweknow.Asglobalisationhasprogressed,livingconditionshaveimprovedsignificantlyinvirtuallyallcountries.However,nocountry,leastofallthepoorest,canaffordtoremainisolatedfromtheworldeconomy.Theinternationalcommunityshouldtrybyreinforcingtheinternationalfinancialsystem,throughtrade,andthroughaidtohelpthemintegrateintotheworldeconomy,growmorerapidly,andreducepoverty.Thatisthewaytosafeguardallpeopleinallcountrieshaveaccesstothebenefitsofglobalisation.[736words]ReferenceListHarrison,T.andCavendish,R,E.2014.WhyInternationalTradeistheKeytoDevelopment.TheJournalofModernEconomics.3(10),pp.178-183IMF,2017.Globalisation:Threatoropportunity[online].Availableat:https://www.imf.org/external/np/exr/ib/2000/041200to.htm[Accessed10March2017]Kobayashi-Hillary,M.2008.BuildingafuturewithBRICs.1stEd.Berlin:Springer


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1)Globalisationdefinition

• Integrationofeconomiesaroundtheworld(tradeandFinance/people/knowledge)

• Opportunities–largermarkets/morecapital/tech/cheaperimports/largerexports

2)Progression

• Unequal–gapsbetweenrich&poor/Asia=industrialised• Africa=declinedinabsoluteterms

3)Integration

• Outwardlookingpolicies(lowtaxes&tradebarriers)=growth,prosperityandLowerpoverty• Inwardlookingpolicies(stateownedcompanies,protectionism)=stagnation&

poverty

4)Keyeffects

• Trade–<worldshare/manufacturingexportBUTfood/rawmaterials<• Movement=employment/skillstransfer• Informationexchange=sharingofknowledge(production,economies,exporting)

5)Conclusion

• G.CreatesbetterprosperityandlivingconditionsBUTinternationalcommunityneedstohelplessdevelopedcountries.


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SummaryTask:Writea150-200-wordsummaryonthekeyelementsofGlobalisation

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WhyinternationalTradeistheKeytodevelopmentModelAnswer

Task:Writea150-200-wordsummaryonthekeyelementsofGlobalisationSummaryAccordingtoWilsonetal.(2017),globalisationistheprocessofintegratingeconomies

throughmainlytradeandfinance,peopleandknowledge.Thisprogressionisnotalways

positiveandcreatesdifferencebetweentherichandpoorwithinandbetweencountries.

Globalisationintegrationcanaccelerateprosperitythrough‘outward-lookingpolices’that

reducetaxesandtradebarriers.However,lessdevelopedcountrieswith‘inwardlooking

polices’thathaveprotectionismpracticesandstate-ownedcompaniestendtohave

stagnatedeconomiesandmorepoverty(Kobayashi-HillarycitedinWilsonetal.2017).

Globalisationcanhavethreemaineffects;firstly,‘trade’createsabiggerworldshareand

betterexportingopportunities.Secondly,‘movement’improvesemploymentanddevelops

skillstransfer.Thirdly,‘informationexchange’sharesimportantknowledgeoneconomics,

productionandbusinesspracticearoundtheworldforalowercost.Overall,Globalisation

establishesprosperityandimprovedlivingconditions,however,thereisaneedforthe

internationalcommunitytoinvestinlessdevelopedcountries.

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CriticalthinkingQuestions1)What’sthestanceoftheauthor?Doeshethinkthatglobalizationgoodorbad?Highlightwhere?

[2points]2)Isthisacrediblearticle?Yes/no–why?

[2points]3)Highlightfourkeypartsofinformationinthetextyouwoulduseforanessayon‘Globalisationishavinganegativeimpactontheworld’.

[4points]4)Highlighttwoareasinthetextthatyouquestion,disagreewithorlackevidence

[2points]


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CriticalthinkingQuestions1)What’sthestanceoftheauthor?Doeshethinkthatglobalizationgoodorbad?Highlightwhere?Why?Verydescriptivetexthighlightingthekeyareasofglobalization.BUTtheauthorsstressmoreneedstobedonetomakeitfairerfordevelopingcountries.[2points]2)Isthisacrediblearticle?Yes/no–why?Yes,goodsourcechoice.Butwhoistheauthor?Notpublishedorsupportedbyajournalpublication.Probablyagoodideatousethekeysources[2points]3)Highlightfourkeypartsofinformationinthetextyouwoulduseforanessayon‘Globalisationishavinganegativeimpactontheworld’.• Thegrowinggapsbetweenrichandpoorcountries• thepoorestquarterexperiencedlessthanathree-foldincrease(Harrison&Cavendish,2014)• Alargernumberofdevelopingcountrieshavemadeonlyslowprogressorhavelostground.• PercapitaincomesinAfricahavedeclinedrelativetotheindustrialcountriesandinsome

countrieshavedeclinedinabsoluteterms(IMF,2017).• Africapursuedinward-lookingpolicies(suchasprotectionismandstate-ownedcompanies),their

economiesstagnatedordeclined,povertyincreasedandhighinflation(Kobayashi-Hillary,2008)• Africa,=externaldevelopmentssuchaswar&naturaldisasters,whichmadetheproblems

worse.• Asia’snewlyindustrialisedeconomieshavedonewell,whileAfricaasawholehasdonepoorly.• Whatcountriesexportisalsoimportant.• Theshareofprimarygoodsinworldexportssuchasfoodandrawmaterials,mostofwhichare

oftenproducedbythepoorestcountrieshasdeclined.• Nocountry,leastofallthepoorest,canaffordtoremainisolatedfromtheworldeconomy

[4points]4)Highlighttwoareasinthetextthatyouquestion,disagreewithorlackevidence• Today’sglobalmarketsoffergreateropportunityforpeopletotapintomoreandlargermarkets

aroundtheworld,whichmeanstheycanhaveaccesstomorecapital,technology,cheaperimports,andlargerexportmarkets–butdothey?Brexit?Ismoredebtagoodthing?

• Asia,percapitaincomesmovingrapidlytowardslevelsintheindustrialcountries-notallofAsia?

• Outward-lookingpolicies–isitjustthewestbenefiting?Canpoorercountriesimplementthese?• AresomeAfricanstatestoocorrupttodealwith?Warandnaturaldisastersareaproblem?• foodandrawmaterials,mostofwhichareoftenproducedbythepoorestcountrieshasdeclined

–Whyarepoorestcountriesdoingbadlyifexportsarethekey?• movementofpeople–ismigrationgettingtoomuchforsomeEuropeancountriesnow?• Ahighlyvaluableresourceforthedeveloping–isthishelping?• Theinternationalcommunityshouldtrybyreinforcingtheinternationalfinancialsystem,through

trade.Whatisbeingdone?• Whatabouttherealnegatives?Environmentaldestruction/pollution/lossofculture/slave

labour/exploitation/unfairtradedeals/Americanisation/Notdiscussed[2points]

Reading Tests & Summary Writings - Academic English UK · 2018. 8. 15. · _____ C -

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