Stock Market

Stocks and shares

Companies

Individuals and groups of people doing business as a partnership, have unlimited liability for debt, unless they form a limited company. If the business does badly and cannot pay its debts, any creditor can have it declared bankrupt. The unsuccessful business people may have to sell nearly all their possessions in order to pay their debts. This is why most people doing business form limited companies. A limited company is a legal entity separate from its owners, and is only liable for the amount of capital that has been invested in it. If a limited company goes bankrupt, it is wound up and its assets are liquidated (i.e. sold) to pay the debts. If the assets dont cover the liabilities or the debts, they remain unpaid. The creditors simply do not get all their money back.

Most companies begin as private limited companies. Their owners have to put up the capital themselves, or borrow from friends or a bank, perhaps a bank specializing in venture capital. The founders have to write a Memorandum of Association (GB) or a Certificate of Incorporation (US), which states the companys name, its purpose, its registered office or premises, and the amount of authorized share capital. They also write Articles of Association (GB) or Bylaws (US), which set out the duties of directors and the rights of shareholders (GB) or stockholders (US). They send these documents to the registrar of companies.

A successful, growing company can apply to a stock exchange to become a public limited company (GB) or a listed company (US). Newer and smaller companies usually join over-the-counter markets, such as the Unlisted Securities Market in London or Nasdaq in New York. Very successful businesses can apply to be quoted or listed (i.e. to have their shares traded) on major stock exchanges. Publicly quoted companies have to fulfil a large number of requirements, including sending their shareholders an independently-audited report every year, containing the years trading results and a statement of their financial position.

The act of issuing shares (GB) or stocks (US) for the first time is known as floating a company (making a flotation). Companies generally use an investment bank to underwrite the issue i.e. to guarantee to purchase all the securities at an agreed price on a certain day, if they cannot be sold to the public.

Companies wishing to raise more money for expansion can sometimes issue new shares, which are normally offered first to the existing shareholders at less than their market price. This is known as a rights issue. Companies sometimes also choose to capitalize part of their profit, i.e. turn it into capital, by issuing new shares to shareholders instead of paying dividends. This is known as a bonus issue.

Buying a share gives its holder part of the ownership of a company. Shares generally entitle their owner to vote at a companys Annual General Meeting (GB) or Annual Meeting of Stockholders (US), and to receive a proportion of distributed profits in the form of a dividend or to receive part of the companys residual value if it goes into liquidation. Shareholders can sell their shares on the secondary market at any time, but the market price of a share the price quoted at any given time on the stock exchange, which reflects (more or less) how well or badly the company is doing may differ radically from its nominal value.

Vocabulary

Find words in the text which mean the following

1 having a responsibility or an obligation to do something, e.g. to pay a debt

2 a person or organization to whom money is owed (for goods or services rendered, or as repayment of a loan)

3 to be insolvent: unable to pay debts

4 everything of value owned by a business that can be used to produce goods, pay liabilities, and so on

5 to sell all the possessions of a bankrupt business

6 money that a company will have to pay to someone else (bills, taxes, debts, interest and mortgage payments, etc.)

7 to provide money for a company or other project

8 money invested in a possibly risky new business

9 the people who begin a new company

10 the place in which a company does business: an office, shop, workshop, factory, warehouse, and so on

11 to guarantee to buy an entire new share issue, if no one else wants it

12 a proportion of the annual profits of a limited company, paid to shareholders

Alternative terminology

Americans often talk about corporations rather than companies and about an initial public offering rather than a flotation.

Another name for stocks and shares is equities, because all the stocks or shares of a company or at least all those of a particular category have equal value.

Two terms for nominal value are face value and par value.

Other names for a bonus issue are a scrip issue (short for subscription certificate) and a capitalization issue, and in the US, a stock dividend or stock split.

Vocabulary

Match up the following words and definitions.

Blue chip Defensive stock Growth stock

Insider share-dealing Institutional investors Mutual fund

Market-maker Portfolio Stockbroker

a company that spreads investors capital over a variety of securities

an investors selection of securities

a person who can advise investors and buy and sell shares for them

a stock in a large company or corporation that is considered to be a secure investment

a stock in an industry not much affected by cyclical trends that offers a good return but only a limited chance of rise or decline in price

a stock which usually has a high purchasing price and a low current rate of return that is expected to appreciate in capital value

a wholesaler in stocks and shares who deals with brokers

financial organizations such as pension funds and insurance companies which own most of the shares of all leading companies (over 60%, and rising)

the use of information not known to the public to make a profit out of buying or selling shares

36. Bonds

Companies finance most of their activities by way of internally generated cash flows. If they need more money they can either sell shares or borrow, usually by issuing bonds. More and more companies now issue their own bonds rather than borrow from banks, because this is often cheaper: the market may be a better judge of the firms creditworthiness than a bank, i.e. it may lend money at a lower interest rate. This is evidently not a good thing for the banks, which now have to lend large amounts of money to borrowers that are much less secure than blue chip companies.

Bond-issuing companies are rated by private rating companies such as Moodys and Standard & Poors, and given an investment grade according to their financial situation and performance, Aaa being the best, and C the worst, i.e. nearly bankrupt. Obviously, the higher the rating, the lower the interest rate at which a company can borrow.

Most bonds are bearer certificates, so after being issued (on the primary market), they can be traded on the secondary bond market until they mature. Bonds are therefore liquid, although of course their price on the secondary market fluctuates according to the changes in interest rates. Consequently, the majority of bonds on the secondary market are traded either above or below par. A bonds yield at any particular time is thus its coupon (the amount of interest it pays) expressed as a percentage of its price on the secondary market.

For companies, the advantage of debt financing over equity financing is that bond interest is tax deductible. In other words, a company deducts its interest payments from its profits before paying tax, whereas dividends are paid out of already-taxed profits. Apart from this tax shield, it is generally considered to be a sign of good health and anticipated higher future profits if a company borrows. On the other hand, increasing debt increases financial risk: bond interest has to be paid, even in a year without any profits from which to deduct it, and the principal has to be repaid when the debt matures, whereas companies are not obliged to pay dividends or repay share capital. Thus companies have a debt-equity ratio that is determined by balancing tax savings against the risk of being declared bankrupt by creditors.

Governments, of course, unlike companies, do not have the option of issuing equities. Consequently they issue bonds when public spending exceeds receipts from income tax, VAT, and so on. Long-term government bonds are known as gilt-edged securities, or simply gilts, in Britain, and Treasury Bonds in the US. The British and American central banks also sell and buy short-term (three months) Treasury Bills as a way of regulating the money supply. To reduce the money supply, they sell these bills to commercial banks, and withdraw the cash received from circulation; to increase the money supply they buy them back, paying with newly created money which is put into circulation in this way.

Rating company firma de rating

Debt financing finantarea debitului

Equity financing finantarea actiunilor

Investment grade gradul riscului de investitie

Debt-equity ratio ratia debit-actiuni

Public spending chletuieli publice

Receipts incasari, venituri

Treasury bonds certificate de trezorerie pe termen lung

Treasury bills certificate de trezorerie pe termen scurt

Vocabulary

Match up the words or phrases on the left with the corresponding ones on the right.

1 investors A the amount of a loan

2 issuing bonds B borrowing money

3 principal C date at which the money will be returned

4 maturity D fall in interest rates

5 pension funds E keep their bonds till maturity

6 buy-and-hold investors F default

7 non-payment G profits on the sale assets

8 price appreciation H providers of funds

9 price depreciation I retirement money

10 capital gains J rise in interest rates

Vocabulary

Match up the expressions on the left with the definitions on the right.

1 equity financing A a security whose owner is not

registered with the issuer

2 debt financing B easily sold (turned into cash)

3 bearer certificate C the rate of interest paid by a fixed interest security

4 liquid D the rate of income an investor receives taking into account a securitys current price

5 par E issuing bonds

6 coupon F issuing shares

7 yield G nominal or face value (100%)

37. Futures, options and swaps

Vocabulary

Match up the following words and definitions.

1 Futures

A contracts giving the right, but not the obligation, to buy or sell a security, a currency, or a commodity at a fixed price during a certain period of time

2 Options

B contracts to buy or sell fixed quantities of commodity, currency, or financial asset at a future date, at a price fixed at the time of making the contract

3 Commodities

C a general name for all financial instruments whose price depends on the movement of another price

4 Derivatives

D buying securities or other assets in the hope of making a capital gain by selling them at a higher price (or selling them in the hope of buying them back at a lower price)

5 Hedging

E making contracts to buy or sell a commodity or financial asset at a pre-arranged price in the future as a protection or insurance against price changes

6 Speculation

F raw materials or primary products (metals, cereals, coffee, etc.) that are traded on special markets

Reading

Select ten or eleven of the following words that you would expect to find in an introductory text about futures and options.

Assets beer bush call commodities contracts

Copper currencies discount store foodstuffs hedge

Liabilities plastic phone raw materials shout

Spot market supermarket tea

Now read the text, and see if you find the words you selected.

Futures

Every weekday, enormous amounts of commodities, currencies and financial securities are traded for immediate delivery at their current price on spot markets. Yet there are also futures markets on which contracts can be made to buy and sell commodities, currencies, and various financial assets, at a future date (e.g. three, six or nine months adead), but with the price fixed at the time of the deal. Standardized deals for fixed quantities and time periods (e.g. 25 tons of copper to be delivered next June 30) are called futures; individual, non-standard, over-thecounter deals between two parties (e.g. 1.7 billion yen to be exchanged for dollars on September 15, at a rate set today) are called forward contracts.

Hedging and speculating

Futures, options and other derivatives exist in order that companies and individuals may attempt to diminish the effects of, or profit from, future changes in commodity and asset prices, exchange rates, interest rates, and so on. For example, the prices of foodstuffs, such as wheat, maize, coca, coffee, tea and orange juice are frequently affected by droughts, floods and other extreme weather conditions. Consequently many producers and buyers of raw matrials want to hedge, in order to guarantee next seasons prices. When commodity prices are expected to rise, future prices are obviously higher than (at a premium on) spot prices; when they are expected to fall they are at a discount on spot prices.

In recent years, especially since financial deregulation, exchange rates and interest rates have also fluctuated widly. Many businesses, therefore, want to buy or sell currencies at a guaranteed future price. Speculators, anticipating currency appreciations or depreciations, or interest rate movements, are also active in currency futures markets, such as the London International Financial Futures Exchange (LIFFE, pronounced life).

Options

As well as currencies and commodities, there is now a huge futures market in stocks and shares. One can buy options giving the right but not the obligation to buy and sell securities at a fixed price in the future. A call option gives the right to buy securities (or a currency, or a commodity) at a certain price during a certain period of time. A put option gives the right to sell an asset at a certain price during a certain period of time. These options allow organizations to hedge their equity investments.

For example, if you think a share worth 100 will rise, you can buy a call option giving the right to buy at 100, hoping to sell this option, or to buy and resell the share at a profit. Alternatively, you can write a put option giving someone else the right to sell the shares at 100: if the market price remains above 100, no one will exercise the option, so you earn the premium.

On the contrary, if you expect the value of a share that you own to fall below its current price of 100, you can buy a put option at 100 (or higher): if the price falls, you can still sell your shares at this price. Alternatively, you could write a call option giving someone else the right to buy the share at 100: if the market price of the underlying security remains below the options exercise price or strike price, no-one will take up the option, and you earn the premium.

Swaps

Options are merely one type of derivative instrument, based on another underlying price. Many companies nowadays also arrange currency swaps and interest rate swaps with other companies or financial institutions. For example, a French company that can borrow francs at a preferential rate, but which also needs yen, can arrange a swap with a Japanese company in the opposite position. Such currency swaps, designed to achieve interest rate savings, are of course open to the risk of exchange rate fluctuations. A company with a lot of fixed interest debt might choose to exchange some of it for another companys floating rate loans. Whether they save or lose money will depend on the movement of interest rates.

Call option optiune de achizitie

Put option optiune de vanzare

Exercise price / strike price pret de exercitiu

Swap schimb

Summarizing

Complete the following sentences

1 The difference between futures and forward contracts is .

2 Producers and buyers often choose to hedge because .

3 Speculators can make money on currency futures if

4 If you believe that a share price will rise, possible option strategies include

5 On the contrary, if you think a share price will fall, possible option strategies include

The risk with currency and interest rate swaps is that

Vocabulary

Find words in the text that are in an obvious sense the opposite of the terms below.

Appreciate call discount drought floating

Hedging spot market strike price

Glossary

Acceptance acceptare (trata)

Acceptor tras, acceptor

Allow credit a acorda un credit

All-time high un record de crestere a cursului

All-time low un record de scadere a cursului

Amount o suma, un total

Amount to a se ridica la, a ajunge la

Arrears datorii, restante, arierate

Articles of Association statutul societatii

Assess, to estimate a evalua, a estima

Assessment, an estimate o evaluare, o estimare

Assets activul

Auction o vanzare prin licitatie

Austerity austeritate

Back a sustine financiar

Bad cheque, dud check cec fara acoperire

Bad debt o creanta neplatita

Balance of account un sold de cont

Balance of Payments balanta de plati

Balance of Trade balanta comerciala

Bank clerks functionari bancari

Bank (A.E. discount) rate rata scontului Bancii centrale

Bank account cont bancar

Bank tellers casieri (la banca)

Bank wickets ghisee ale bancii

Banking regulation reglementari bancare

Banknotes (A.E. bills) bancnote

Bargain a negocia

Barrier o bariera

Barter / counter-trade troc

Base rate / prime rate taxa preferentiala rata de baza

Be in the black a fi creditor

Be in the red a fi descoperit/ in deficit

Bear un speculator de bursa (care mizeaza pe scaderea cursului)

Bear an interest a produce o dobanda

Bearer un purtator

Bearer cheque cec la purtator

Benefit un avantaj

Bill, a check (US) o nota de plata

Bills facturi, note de plata, efecte bancare

Bills of Exchange (B.E.), drafts cambii, polite, trate

Bite a avea efect

Blank cheque cec in alb

Blue chips actiuni ale marilor companii

Board of directors consiliul de administratie

Bond o obligatiune

Bonus issue, shares / stock dividends actiuni gratuite, dividente nominale

Boom un avant (perioada de succes)

Boost a relansa

Borrow a lua cu imprumut

Borrower cel care ia cu imprumut

Branch sucursala

Brand o marca comerciala

Break even a echilibra conturile

Bring down a micsora, a diminua

Brisk activ, animat

Buck bancnota sau bancnote de un dolar (A.E. familiara)

Building society o banca populara de economii pentru cumparare de locuinte

Bull un speculator de bursa (care mizeaza pe cresterea cursului)

Bullion lingou din metal pretios

Buoyant sustinut, bine orientat

Buy forward a cumpara la termen

Bylaw prevedere regulamentara

Cap taxes a fixa un plafon pentru impozite

Cash a cheque a incasa un cec

Cash flow flux de numerar

Cash point un aparat distribuitor de bancnote

Cashier casier in unitati economice

Ceiling plafon, nivel maxim

Central Bank banca centrala

Change francs into pounds a schimba francii in lire

Charge taxa, pret, cheltuieli

Cheque-book carnet de cecuri

Cheque-book (A.E. checkbook) carnet de cecuri

Chief executive officer / managing director director general

Clearance sale o vanzare la solduri

Clearing-house camera de compensare/decontare/oficiu cliring

Close inchidere

Close down a avea un curs scazut la inchidere

Coin money a bate moneda

Coins monede, bani metalici

Collapse a se prabusi

Collateral garantie, gaj / garant, girant, gir

Collect a incasa, a percepe (impozite)

Commercial / retail bank banca comerciale / banca de depozit

Commodity o marfa (de larg consum)

Compete with sb. a concura cu cineva, a face concurenta cuiva

Competitive competitiv

Composite rate rata compusa

Contribution cotizatie, contributie

Convergence criteria criterii de convergenta

Cost accounting contabilitate analitica / analiza costurilor

Cost effective- rentabil, care isi merita pretul

Cost of living costul vietii

Council tax impozite locale

Counter ghiseu

Counterfeit a contraface, a falsifica, a face bancnote false

Credit a sum to an account a vira o suma intr-un cont

Credit an account a credita un cont

Credit rating evaluare a solvabilitatii clientelei

Credit squeeze restrangere a creditului

Credit standing situatie financiara, gradul de solvabilitate

Creditor creditor

Crisis o criza

Cross out a bara

Crumble a se prabusi

Curb a frana, a stapani

Currencies devize

Current / checking account cont curent

Current account deficit un deficit al balantei de plati curente

Current account; account current cont curent

Custom-made facut pe/la comanda

Customs vama

Dabble on the Stock Exchange a juca la Bursa

Deal o tranzactie

Dealer un dealer

Debit a sum from an account a debita o suma dintr-un cont

Debit an account by a sum a debita un cont dintr-o suma

Debt o datorie

Debtor un debitor

Decline a decadea, o scadere

Deeds acte, contracte

Default a nu onora

Default on a payment a nu onora o plata

Defaulter rau platnic

Defer a amana, a intarzia

Deficit un deficit

Deflation deflatie

Delay a amana, a intarzia

Demand cerere

Deposit a depune

Deposit / time / notice account cont de depunere

Deposit account cont de depunere la scadenta, de depozit

Deposit bank banca de depuneri

Depositor depunator

Depreciation amortizare, depreciere

Deregulation dereglementare

Devaluate a devaloriza

Devalue a devaloriza

Dip a scadea, a descreste

Direct debit debitare directa

Directive o directiva

Discontinue a inceta (de a mai face ceva), a intrerupe

Discount a sconta (o polita)

Discount a draft a sconta o trata

Discount bank banca de scont

Dividends dividente

Downturn, a downswing un regres

Draw on an account a scoate dintr-un cont, a retrage dintr-un cont

Draw on sight a trage la vedere

Draw on someone a trage (o trata) asupra cuiva

Drawee tras

Drawer tragator

Drop, to fall, to come down a scadea, a se micsora

Dull inactiv

Duty o taxa

Earn an interest a produce o dobanda

Earnings castiguri, venituri (salariale)

Ease a se relaxa

Encash a incasa un cec (la banca)

Endorse a andosa

Endorse a cheque a andosa un cec

Endorsement andosare

Enquiry, inquiry cerere de informatii

Equities actiuni ordinare

Erasure stergere, stersatura

Exceed a depasi

Exchange schimb

Exchange broker agent de schimb

Exchange bureau birou de schimb

Exchange rate rata de schimb

Executive administrator

Expenses cheltuieli, plati

Face value valoarea nominala

Fall back a se replia

Fall due a sosi la scadenta

Fall, drop in prices o scadere a preturilor

Federal Reserve Bank (the Fed) (A.E.) banca federala de rezerve, banca centrala a S.U.A.

Fee un onorariu

Figure o cifra

File for bankruptcy, to file under chapter 11 (US) a-si depune bilantul, a cere falimentul

Fill in a form a completa un formular

Finance, to fund a finanta, a acorda fonduri

Financial backing (support) sustinere financiara, sprijin financiar

Firm ferm

Flat rate rata uniforma

Float (a currency) a face/ a lasa sa oscileze o moneda straina

Float a company a lansa o societate

Flourish a prospera

Foot the bill a achita nota de plata

Forecast, an outlook o previziune

Foreign / overseas trade comert exterior

Foreign resident rezident strain

Forge a falsifica, a contraface (bancnote, documente)

Forgery contrafacere, falsificare, falsuri (bancnote, documente)

Free trade liber schimb

Fringe benefit beneficiu suplimentar (in afara salariului)

Futures market piata tranzactiilor la termen

Gain a castiga / un castig, o plus-valoare

Gilt-edged securities valori/titluri fara risc (obligatiuni de stat)

Giro cecuri postale

Giro account cont-cecuri postal

Give notice a da un preaviz

Globalise a se extinde la scara mondiala

Go belly up (US) a da faliment

Go into administration a fi supus unei proceduri de lichidare juridicara

Go into liquidation a intra in lichidare

Go on a welfare a se inscrie la asistenta sociala

Go public a intra la Bursa, a fi acceptat la Bursa

Go up, to rise a creste, a urca, a se mari

Goods, wares produse, marfuri

Grant a acorda, a aloca / o alocatie, un ajutor financiar

Grant a loan a acorda un imprumut

Grant credit a acorda un credit

Greenbacks dolari (americanism familiar)

Gross Domestic Product Produsul Intern Brut

Gross National Product Produsul National Brut

Hard cash bani gheata

Hedge a se acoperi (risc)

Hike prices (US) a mari, a creste preturi

Historical cost accounting contabilitatea costurilor de achizitie / istorice

Holder titular (carte de credit)

Holder of an account, account holder detinator al unui cont

Home savings plan plan de economii pt. (constructia de) locuinte

Home trade comert intern

Hot money bani fierbinti (capital atras din strainatate de dobanzi ridicate sau de un climat politic sigur)

In cash in numerar

In custody in custodie

In real terms in bani constanti

In the red, overdrawn epuizat, descoperit (un cont)

Incentive un stimulent

Income statement (A.E.)/operating statement (B.E.) cont de exploatare, cont de profituri si pierderi

Income tax impozit pe venit

Index a indexa

Index-linked indexat

Inflation inflatie

Inflationary inflationist

Inheritance tax drepturi de succesiune

Interest dobanda

International Monetary Fund (I.M.F.) Fondul Monetar International (F.M.I.)

Investment (B.E. merchant) bank banca de investitii

Investments investitii

Invoice factura

Issue a emite

Jack up a mari preturi

Jewels bijuterii

Joint account cont comun

Junk bonds obligatiuni fara valoare

Kickstart the economy a impulsiona economia

Leave a deposit a lasa o garantie

Legal tender oferta legala, curs legal

Lend a da cu imprumut

Lending rate rata de imprumut

Level off a se relaxa

Leverage capacitate de influenta / raportul dintre creante si capital / cresterea rentabilitatii capitalului unei societati ca urmare a contractarii de datorii

Leveraged buyout rascumpararea unei societati datorita cresterii rentabilitatii capitalului ca urmare a contractarii de datorii

Levy a percepe, a impune (o taxa, un impozit) / o taxa

Liabilities pasivul

Liquidation lichidare

Listed company societate pe actiuni

Loan shark un camatar

Loans imprumuturi

Look up, to pick up a se redresa

Loss o pierdere

Loss-making, unprofitable nerentabil

Lump sum settlement plata forfetara, plata globala

Make o marca (de fabrica), fabricatie

Maturity (of a loan) scadenta unui imprumut

Mercantile Exchange Bursa de marfuri

Merchant bank o banca comerciala

Merchant bank / Investment bank banca comerciala / de investitii

Mint institut britanic de emisiune monetara/ Monetaria Statului

Monetary monetar

Monetary supply masa monetara

Money order mandat postal

Mortgage ipoteca

Mutual Fund societate de investitii cu capital variabil

Note bancnota divizionara

Offset a contrabalansa, a compensa

Open up a avea un curs ridicat la deschidere

Opt-out clause o clauza exceptionala

Order o comanda

Outlet un debuseu, un punct de desfacere

Outstanding neachitat, intarziat (la plata)

Overdraft descoperire in cont, sold debitor

Overdraw (an account) a descoperi, a epuiza un cont

Overdue expirat, intarziat, scadent

Overheads, fixed costs cheltuieli fixe

Overheat a supraincalzi

Over-the-counter market piata de titluri fara valoare

Pace beneficiar

Paper money bani de hartie, bancnote

Pawn a gaja, a amaneta

Pawnbroker camatar

Pay (in) cash a plati in numerar, a plati cu bani gheata

Pay as you earn (PAYE) plata prin prelevare direct de la sursa

Pay back, to repay a rambursa

Pay into an account a varsa intr-un cont

Payee beneficiar

Pay-in slip foaie de depunere sau de varsamant

Payment by installments plata in rate

Payment in cash plata in numerar

Payment-in virament (intr-un cont)

Pick up the tab a achita nota de plata

Plough back profits a reinvesti profiturile

Plummet a merge foarte prost, a avea greutati mari

Policy o politica, o strategie

Portfolio un portofoliu (de valori)

Postpone a  intarzia, a amana

Premise locatie

Price index un indice de pret

Prime rate (A.E.) rata de baza

Private limited company societate cu raspundere limitata

Privatise a privatiza

Production, output productie

Profit margin o marja de profit

Promissory note bilet de ordin, cambie, titlu de gaj, obligatiune

Pundit un expert

Purchase o achizitie, o cumparare

Qualified majority majoritatea calificata

Quid (B.E.) bancnota sau bancnote de o lira (familiar)

Quota o cota-parte

Quote a cota

Quoted or listed company societate cotata la bursa

Rally a se reface, a se intari

Recover a se restabili, a-si reveni, a se reface

Recurring care se repeta, periodic, recurent

Recurring expenses cheltuieli recurente

Reduce, to cut back a reduce

Refund a rambursa

Registrar of companies registrul de comert

Regulation regulament, reglementare

Remittance varsamant

Rents chirii

Repay, to pay back a rambursa

Residual value valoare reziduala

Restrict a impune o restrictie

Retail price index indicele preturilor cu amanuntul

Revalue a reevalua

Revenue venituri

Rights issue emisiuni rezervate actionarilor

Rise in prices o crestere a preturilor

Running costs cheltuieli variabile

Safe casa de bani

Savings economii, bani economisiti

Savings account cont de economii

Savings Bank casa de economii

Security titlu de valoare

Sell at a premium a vinde sub pretul pietei

Sell short a vinde la termen, a subevalua

Setback o cadere, o involutie, un regres

Settle a echilibra un cont, a plati

Settlement plata

Share a imparti, a participa impreuna

Share o actiune

Shoot up a creste vertiginos

Short term pe termen scurt

Shortage o penurie

Shortfall o lipsa, o insuficienta

Sight withdrawal retragere la vedere

Single market o piata unica

Slacken, to slow down a incetini, a frana

Slash a reduce radical

Slide a scadea

Slow payer rau platnic

Slump a scadea masiv

Small amount, small sum suma mica

Solvency solvabilitate

Spending cheltuieli

Spin-off o schimbare radicala

Spot market piata tranzactiilor cu plata pe loc

Spread / Margin marja, margine

Squeeze a presa, a constrange

Stagflation stagflatie, (stagnare economica + inflatie)

Stagnate a stagna

Stake participare, interest

Standard of living standardul de viata

Statement of account extras de cont bancar

Steady stabil

Stimulate a sitmula

Stock Exchange Bursa de Valori

Stock market o piata bursiera

Stock, securities valori, titluri

Stockbroker un agent de schimb/bursa

Stub, counter-foil cotor, talon, matca (de chitanta, cec etc.)

Subscribe a subscrie

Subscription abonament

Subside a subventiona

Sue a face un proces, a chema in instanta

Sum o suma

Summit o intalnire de varf

Supply / provide sb. With sth. oferta, a furniza ceva cuiva

Survey un studiu, o ancheta

Swap swap (operatie de schimb intre doua devize prevazuta pentru o anumita perioada)

Target o tinta

Tariff un tarif vamal

Tax a impune taxe, a impozita

Tax allowance scutire de taxe

Tax break o reducere/ scadere de impozit

Tax collector un perceptor

Tax haven un paradis fiscal

Tax relief degrevare de impozit

Taxpayer un contribuabil

Telegraphic money order mandat telegrafic

Thrive, to prosper a prospera

Tighten ones belt a strange cureaua

Trade a face comert

Trade bank banca comerciala

Trade gap un deficit comercial

Transfer a transfera, a vira

Travellers cheques (A.E. travelers checks) cecuri de calatorie

Treasury tezaurul public

Trend o tendinta

Trust a avea incredere, a incredinta

Turnover volumul afacerilor

Underwrite garantarea subscrierii unei emisiuni

Upturn, an upswing o redresare, o ascensiune

Valuables obiecte de valoare

Valuables / deeds acte, valori

Value added tax taxa pe valoarea adaugata

Venture capital capital de risc

Veto sth. a-si exprima dreptul de veto fata de ceva

Volatile nervos, febril

Wind up a lichida

Withdraw a retrage

Withdrawal prevelare, retragere

Write out (to make out) a cheque a trage, a intocmi un cec

Yield a aduce, a produce venit

Yield randament

Yield an interest a produce o dobanda

Cheia exercitiilor

Module 1

Reading Summary B is the best. The other two are, according to the text, wrong.

Practice 1 a model version of the dialogue

Visitor: Hello, my names Henrik van der Linden from Amtel. I have an appointment with Sandra Bates.

Receptionist: Oh, yes, Mr Van der Linden. Welcome to Datalink. Ms Bates will be along in a few minutes. Shes just finishing a meeting. Can I get you something to drink?

Visitor: No thanks, Im fine. Er, but I wonder if I could use the phone?

Receptionist: Yes, of course. And anything else if you need to send a fax or anything

Visitor: No, its okay, just the phone.

Receptionist: Right, well you can use this one.

Visitor: Thanks. (dials) Hallo, (fade)

(a few minutes later)

Visitor: (fade in) Au revoir. (click) Thank you very much.

Receptionist: Not at all. If theres anything else you need, please ask. Anything

Visitor: Yes, I was wondering how far is it to the station?

Receptionist: Its about two miles ten minutes by taxi. Shall I book one?

Visitor: Er, yes, thank you. that would be good. Can we say four oclock?

Receptionist: Right, Ill do that. Oh, I think Ms Bates is free now. Shall I take you to her office?

Visitor: With pleasure. Thanks.

Exercise 1 First words

Visitor: a, d, f, g, i, k // the person receiving the visitor: b, c, e, h, j, l, m

Exercise 2 Ending the small talk

a)      B; b) A; c) B; d) B; e) A

Module 2

Reading find words

1 literal a. direct and clear

2 understatement b. less strong way of talking

3 deduce b. work out

4 vague a. unclear

5 devious b. dishonest

6 pleasantries c. polite remarks

Exercise 1 Making a call

(in order): speak to; through; office; can; hello; bad; speak; speaking; put; through; hold; office; moment; number; ring; back; on; message; rang; call

Practice 1 a model answer

Reception: Good morning, Gorliz and Zimmerman.

Lara Camden: Hello, my names Lara Camden from Bulmer Cables Ltd. Please could I speak to Mr. Conrad Bird?

Reception: Im sorry, but Mr. Bird is not in at the moment.

Lara Camden: I see. Er when do you think I could contact him?

Reception: Well, at the moment hes away. Would you like to leave a message?

Lara Camden: Yes, perhaps you would ask Mr. Bird to call me? My names Camden, Lara Camden, on 0181 299 462.

Reception: Right, thats Lara Canden on 0181 299 462. Okay?

Lara Camden: Yes, er Camden. CAMDEN.

Reception: Oh yes, sorry! Ive got that now.

Lara Camden: Thank you. I look forward to hearing from Mr. Bird.

Reception: Its a pleasure. Thanks for calling. Bye for now.

Practice 2 a model example of the conversation

Intership: Intership, good morning.

Computech:  Hello, my names Alex Hall from Computech Arcos in Singapore.

Intership:  Sorry, did you say Alex Hall from Computech Arcos?

Computech:  Yes, thats right.

Intership:  Okay, how can I help you, Mr. Hall?

Computech:  Well, Id like an appointment with Mr. Dionis.

Intership:  Can you tell me whats about?

Computech:  Certainly. Id like to discuss the transporting of goods from Singapore to Athens.

Intership:  I see. When would be a good time for you to come here?

Computech:  May I suggest next week?

Intership:  Im sorry, next weeks not possible Mr. Dionis is away next week. How about the beginning of the next month?

Computech:  Yes, that would be okay. Could we say Monday 3^rd of May?

Intership:  Er, unfortunately Mr. Dionis is busy all day on that Monday. He could make it Tuesday 4^th.

Computech:  Thats fine. Shall we say ten a.m.?

Intership:  Yes, thats a good time for us. Erm can I ask you to confirm by fax? And would you like us to book you a hotel?

Computech:  Ill fax and thank you but no, the hotel booking isnt necessary. I think thats everything, for now

Intership:  Right, many thanks, we look forward to your fax to confirm the meeting. Goodbye, Mr. Hall.

Computech:  Bye for now.

A model of a fax message of confirmation:

Computech Arcos

Lorong One Toa Payoh

Singapore

Telephone: ++65 350 574

Fax: ++65 250 552

Fax to: Mr. Dionis (Intership S.A.)

Fax Number: 30 1 657677 Page 1 of 1

From:  Date: 19 April 19

Re. Meeting with Mr. Dionis

With reference to our phone conversation of this morning I write to confirm my appointment with Mr. Dionis next month.

Subject: Transport of goods from Singapore to Athens.

Date of Meeting: Tuesday 4^th May at 10 a.m.

I also confirm that I will make my own hotel arrangements.

I look forward to meeting Mr. Dionis next month.

Best regards

Exercise 2 Changing arrangements

See language input.

Practice 3

Tao Loon: Hello, Sales Office here.

Luisa: Hello, my names Luisa Dominguez. Im ringing from Spain from Berraondo Company.

Tao Loon: How can I help you, Ms Dominguez?

Luisa: The problem concerns a printer order. Let me give you the order number its HF5618. Its its for twenty printers. The problem is that only seventeen have arrived.

Tao Loon: Really? Im surprised to hear that.

Luisa: Well, Im afraid its the second time we have received and incomplete delivery and nobody told us there would only be seventeen.

Tao Loon: Well, no, I think it was probably an administration mistake.

Luisa: Yes, Im sure. Now, we need the other three printers urgently. Delays are causing us problem with our customers. They are rather unhappy.

Tao Loon: Okay, er, at the moment we have some stock problems.

Luisa: Well, can you give me a delivery date its very urgent.

Tao Loon: Right let me see. We can promise you a despatch next Monday.

Luisa: No, Im sorry, thats not good enough. We need despatch now.

Tao Loon: Im sorry thats not possible. But well despatch on Monday, I assure you.

Luisa: Well, will you please send a fax to confirm that.

Tao Loon: Of course. And I do apologize for the problem.

Luisa: Right, goodbye for now.

Tao Loon: Goodbye.

Reading

a.       True; b. True; c. False; d. False; e. True; f. False

Module 3

Practice 1

Tokyo medical congress

a.       Probably very formal.

b.      High expectations in terms of technical support, a fair amount of detail and clearly a lot of expertise.

c.       High level of specialist knowledge audience are experts.

d.      Depends on congress organization probably less then an hour.

e.       Depends on congress organization probably questions follow.

f.       Use of visual supports with key information, plus later publication of Congress Proceedings

Purchasing and Product Managers of a Taiwanese company

a.       Probably semi-formal.

b.      High expectations in terms of technical support, a fair amount of detail and clearly a lot of expertise.

c.       High level of specialist knowledge at least the Product Manager will be very expert, the Purchasing Manager perhaps less so.

d.      Depends on objectives and on complexity of equipment. Could be a very long presentation, even a whole day or a one hour presentation might be enough.

e.       Probably interruption are encouraged to make everything clear as the presenter goes along.

f.       Use of visual support, photographs, diagrams, or the actual machine itself. Follow-up documentation will also be available.

Internal meeting / administrative staff

a.       Informal.

b.      Reasonably high expectations in terms of speakers knowledge.

c.       The audience will probably have good background knowledge but have come to learn about a new system.

d.      Probably short thought it might be half a day!

e.       Interruptions encouraged.

f.       Probably illustrations, possibly handouts.

A staff meeting / charity event

a.       Informal.

b.      Low expectations.

c.       The audience have come to hear ideas.

d.      Probably short five or ten minutes?

e.       Interruptions encouraged.

f.       Keep to clear simple structure making one or two important points.

Practice 2

Subject / title of talk. 1

Introduction to oneself, job title, etc. 4

Reference to questions and / or discussion. 2

Reference to the programme for the day. 4

Reference to how long you are going to speak for. 3

Reference to the visual aids you plan to use. 5

The scope of your talk: what is and is not included. 4

An outline of the structure of your talk. 1

A summary of the conclusions. 4

Note: There are no hard rules about what should be included. Most suggestions here are open to discussion and

variation, depending on circumstances.

Reading

a.

Visuals make information more memorable

Help the speaker

Show information which is not easily expressed in words

Highlight information

Cause audience to employ another sense to receive information

Bring variety and therefore increase audiences attention

Save time

Clarify complex information

b.

Presenters sometimes place the major emphasis on visual aids and relegate themselves to the minor role of narrator or technician

Visuals must support what the speaker says

It is not enough just to read what the visual says

Reading

Find out about the audience.

Find out what they need to know.

Plan what youre going to say.

Say it clearly and concisely.

Introduce information using lists.

Give a link between parts of the presentation.

Provide a logical sequencing of information.

Use careful repetition of key information.

Dont give too much information or too many fact.

Reading

a.       The main body of the presentation contains the details of what was introduced in the introduction.

b.      See figure included in the text.

Practice 4 a model of presentation

Good morning, everyone. Id like to talk about the advertising mix for the new Cheri range of beauty products. We are planing two categories of advertising, above-the-line and below-the-line. Ill talk first about above-the-line advertising. There are three kinds: these are television commercials, secondly, newspapers newspaper advertising. The third kind is magazines. There are two basic types we aim at: youth magazines and those aimed specifically at the womens market. Now, below-the-line advertising: there are three methods here also: the first is in-store advertising, then theres on-pack promotions and finally targeted mailing. So, in-store advertising: what does it mean? Basically, displays in the shop, merchandising, and that sort of thing. The second below-the-line advertising is on-pack promotions there are many kinds, most obviously things like coupons, competitions, joint promotions and free samples. The last kind of below-the-line advertising is targeted mailing, using a mailing list. That completes the overview of what we can do to launch the product, so

Reading

a.       No response from the audience.

b.

A truly successful and interesting talk will avoid the problem.

The speaker can give an instruction to the audience especially in sales presentations.

To have question prepared to ask the audience, or identify someone whom you know will have something to say.

Handling questions

Difficulties may arise because:

1.questions / discussion is relatively unstructured

2. the speaker has less control

3. speaker has to switch into listen and answer mode

4. it may be difficult to hear, to understand, to answer or to distinguish between an opinion and a question.

Practice 5 model answers

So, that concludes what I want to say, so now Id like to ask you for your comments, opening up discussion, or perhaps you have a question or two?

Er, in fact what I said was this process has been going on for a very long time. Im sorry if I was not clear on this point.

I wonder if anyone can suggest why this has happened or if anzone has any comments on it

Yes, youre right, but can I suggest one or two other factors? One is the increasing number of take-overs of smaller companies

So are you saying that in the USA or Europe that could not happen?

Yes, I agree, but the situation is changing.

Sorry, I dont quite follow you. Can you say that again put it another way ?

Exercise 1 The new product

Introducing yourself

Good morning ladies and gentlemen; we havent all met before so Id better introduce myself. Im Luis Lopez from the development department of Citrus Incorporated I should say before we start that I hope youll excuse my English. Im a little out of practice

Preparing the audience

Anyway, Im going to be talking this morning about a new product which we are planning to launch in two months time; its called KOOL-OUT, thats K-O-O-L dash O-U-T, and its a lemon-flavoured drink

Well, Ill start with the background to the product launch; and then move on to a description of the product itself, Im going to list some of the main selling points that we should emphasize in the advertising and sales campaign. I think if you dont mind, well leave questions to the end

Delivering the message

Now firstly, as you all know, we had a gap in our soft-drink product range for the last two years; we have been manufacturing mixed-fruit drinks and orange drinks for the last ten years, but we stopped producing lemonade two years ago; I think we all agreed that there was room on the market for a completely new lemon-flavoured drink Secondly, the market research indicated that more and more consumers are using soft drinks as mixers with alcohol, so in other words, the market itself has expanded.

This brings me to my next point which is that we have rather new customer-profile in mind; I must emphasize that this product is aimed at the young-professional, high-income, market and not the traditional consumer of old-fashioned lemonade. At this point we must consider the importance of packaging and design, and if you look at the video in a moment, youll see that we have completely re-vamped the container itself as well as the label and slogan

Now to digress for just a moment, the more sophisticated packaging means a high unit cost, and this may be a problem in the selling area, but well have a chance to discuss that aspect later so to go back to my earlier point, this is a totally new concept as far as Citrus Incorporated are concerned; as you see we are using both the new-size glass bottle and the miniature metal cans.

Finally, lets look at the major attractions of the product. In spite of the higher price it will compete well with existing brands; the design is more modern than any of the current rival products, and incidentally the flavour is more realistic and natural its low calorie, too.

Winding-up

O.K., so just before closing, Id like to summarize my main points again We have KOOL-OUT, a new design concept, aimed at a relatively new age and income group; its designed to be consumed on its own, as a soft drink, or to be used as a mixer in alcohol-based drinks and cocktails. It comes in both bottle and can and this will mean a slightly higher price than we are used to; but the improved flavour and the package design should give us a real advantage in todays market well, thats all I have today for the moment, thank you for listening, now if there are any questions, Ill be happy to answer them

Exercise 2 The product presentation

See the model presentation and use the words in italics.

Exercise 3 Can I interrupt here?

A 2; b 3; c 4; d 5; e 1

Exercise 4 Anticipating questions

(suggestions) a. I can hear you say b. Now you may well ask, what does he mean by c. An obvious problem is the cost of the accessories. d. You will have noticed that e. Now you may well ask

Module 4

Practice 1

a.       Welcome, everybody. Thank you for coming.

b.      We are here today to talk about (and to decide ; to look at)

c.       We have an agenda with three points. (Youve all seen the agenda. Id like to ask if anyone has any comments on it.)

d.      I think Mr. Kano is ready to tell us something about (Can I ask to open with his remarks.)

e.       If you dont mind, can we let Mr. Kano finish? (Sorry, , I cant allow us to consider that question just yet)

f.       Thank you for that

g.       Now, can I ask Ms Perez de Sanchez to tell us her views

h.      Er, can we try to keep to the topic I think we have gone away from it a little.

i.        Id like to sum up the main points. (So let me summarize that. You say that )

j.        Would anyone like to say anything else on this? (Does anyone have anything to add to that?)

k.      I think we ought to move on to the next topic on the agenda.

l.        So, before the next meeting, Ill send out a report on this one, Mr Kano will prepare () and will then fix a new date, some time next month.

m.    Thank you. thats everything. Thats it for today.

Practice 2

A model of Agenda

Axis Finance Limited

Marketing Group: Year-end meeting

Time: Finish:

Place:

Participants:

Agenda

Apologizes for absence

Minutes of previous meeting

Chairs opening address

Personnel changes

Review of marketing performance in the current year

New products

Marketing plans for next year

Any other business

Date of next meeting

The chairs opening statement: a model

Okay I think we should begin. Thanks for coming and as you know this is we are here for our annual meeting. As you know from the agenda there are four main issues to discuss. The first to review is the personnel changes. Secondly, well look at the marketing performances in the current year. Then well discuss about new products. And finally, well examine the marketing plans for the next year. So any comments, any suggestions, or is everyone happy with the agenda? Okay, then lets start with item one on the agenda. I think Mr. Smith has prepared a statement on the personnel changes so Ill hand over to him.

Practice 3 a model conversation

A: The fall in sales is mainly due to the recession affecting world markets.

B: Er, can you tell us exactly how much sales have gone down?

A: Well, its a general fall of around 5 % in sales for most product areas. Also, specifically in the oil processing sector, we have much lower sales, mainly because we sold our UK subsidiary, Anglo Oils.

B: Can we talk about the decision to sell Anglo Oils

A: Well, no, Id rather not go into that. We discussed that in previous meetings. Id prefer to talk about future prospects. The outlook is very good just now

B: What? Id say things look quite bad.

A: Im very surprised you say that. In fact, sales forecasts are much better now. Anyway, let me tell you

B: Sorry, I think Id like to hear more about new markets.

A: New markets? Yes, but can we talk about new markets later? I have some important information on that. But first

B: Wait, dont you think we should take a short break have a coffee?

A: Take a break? Weve only just started!

Reading

a.       Decision making meetings.

b.      The structure of decision making: see the bulleted points in the second paragraph.

c.       Communication has to be a two-way process to be successful.

a.       Not all meetings are to make decision as implied in the first sentence of the text. Decisions may already have been made, so a meting is called to tell people about the decision (an information giving meeting).

b.      An alternative description of the structure of decision making is the DESC model, which is included in the Skills Checklist.

c.       In many instances of communication, a message is given and it is sufficient that it is comprehended, without even an acknowledgement (a recorded message, for example). However, this may be slitting hairs: the point is that in meetings at least an acknowledgement or agreement is expected. It seems fair to say that in most cases, communication is a two-way process.

d.      It is true that often an agreement, or a consensus, can be arrived at without a formal vote: it is the leaders responsibility to make clear what the consensus is and ask if everyone accepts it.

a.       consensus

b.      time- and cost-effective manner

c.       goal

d.      set an objective

e.       imperatives

f.       desirables

g.       evaluate alternatives

h.      perception

i.        awareness / empathy

j.        evolve

k.      verbalize

Reading

a.       a restatement of objectives

- a summary of what has been accomplished

- a summary of what action must be taken after meeting

b.      Meetings should be part of a learning experience, so future meetings can be improved by asking participants to evaluate meetings.

Practice 4 a model conversation

A: Can we reach a decision on this?

B: Well, I I think er, I think we need more information.

A: Hmm. Can you explain say exactly what sort of detail you think we need?

B: Well, I feel first of all, we need to know more about the effects of a price increase.

A: Perhaps we should, er, commission some market research?

B: Yes, I agree. Thats right. We could ask Hamid to recommend someone.

A: Well, I think before that we could look at our own experience of price rises. Then later we can perhaps ask a marketing consultancy. Does everyone agree with that proposal?

All: (murmur of agreement)

A: Okay, lets move to the next item on the agenda.

Practice 5 a model example

So, weve almost finished. Does anyone have anything else to say? Well, we had to decide on action regarding training courses. To summarize, to confirm our decision, weve agreed a $10,000 budget. And also that Peter is going to identify three possible training organizations. Is everyone happy? Is that okay? Now, Peter will organize a presentation for next week, on the 14^th at 2 p.m. until then, thanks everyone for coming. Thats it for today.

Exercise 1 Chairing a meeting

Chairman Id like us to reach a decision today about item 1. The issue is falling sales in the Italian market. Henry will explain the background to this, and the present situation.

Henry Thanks. Well, as you know, in Italy weve always so thats how things are at the moment.

Chairman Thank you, Henry. Now, lets look at possible courses of action.

Bob Could I just say something ? The Italian market isnt as important to us as the Russian orders. I was in Moscow last week, and learnt some pretty interesting things about the way things are moving out there.

Chairman Lets keep to the immediate subject, which is the Italian market.

Arnold Sorry to interrupt, but if we launch a new advertising campaign in Italy it would cost a fortune! You said yourself that we havent enough money to advertise on every television in Europe!

Chairman Lets not jump too far ahead at this stage.

Bob My own feeling is this : in years of experience, in many different markets throughout the world, Ive often found that, when and you know, if I could pass on my experience to the younger people here, Id say that the only way to sell in Italy is to go there and see the market for yourself, instead of asking your agents to do it.

Chairman Sorry to interrupt you, Bob, but Id like to know if the others agree. What do you think about this, Walter?

Walter Im not too sure about this . My own feeling is that if

Bob I dont know why you dont ask me. Ive been to Italy so many times recently.

Chairman Could you let Walter finish? Id like to have his view on this .

Walter Well, Id like to say that for the last two years we havent had a stand at the Milan Trade Fair. I understand that the Fair has produced lots of contracts in the past.

Chairman Thats an interesting point, Walter . Lets summarize what weve said so far. Bob thinks we depend on the agents too much, and Walter suggests that the Trade Fair is important.

Exercise 2 Formal meetings

a.       address; approve; move; second; carried; casting; on

b.      true: 1, 2, 6, 7

false: 3, 4, to second means to give formal support to the motion for presentation to the board, 5 to abstain means to decide no to vote

Exercise 3 Could I ask you a question?

You: Im afraid I cant comment at the moment.

You: A statement will be issued shortly.

You: Im sorry, but I cant comment at this stage.

You: Yes, Im pleased to be in your country.

You: I cant tell you anything before the statement is issued.

You: I would rather not answer that question at present.

You: I did not say that at all.

Module 5

Practice 1 a model

a.       Well, welcome to Its very good that you could come to see us here.

b.      I hope you had a good trip? Not too long ? Did you get a taxi when you arrives here?

c.       At lunchtime well be able to show you a little bit of the city have something to eat in a local restaurant.

d.      Well, shall we make a start?

e.       Okay, well, can I ask Luke Fox, from our Marketing Department, to begin our discussion with some opening remarks. I think youve met James already this morning, and a little while ago too?

f.       Firstly, we see this meeting as an exploratory session, I think its best for both of us that we look at some general questions.

g.       Wed like to establish the beginnings of a partnership It would be particularly interesting for us to learn about your supply systems about price variations and about supply costs.

Practice 2

Identify your minimum requirements.  2

Prepare your opening statement.  7

Decide what concessions you could make.  3

Know your own strengths and weaknesses.  4

Know your role as part of a team.  6

Prepare your negotiation position know your aims and objectives.1

Prepare any figures, any calculations and any support materials you may need. i

a.       Knowing your aims and objectives

ii. helps clear thinking and purpose.

b.      Knowing your own strengths and weaknesses

iv. helps you to know the market, the context in which you want to work.

c.       Preparing any figures, calculations and other materials

means you can support your argument.

d.      Preparing an opening statement

iii. creates reasonable expectations.

Reading

a.       T

b.      F Better not to guess (though privately you might to some extend).

c.       T

d.      F Issues are best dealt together with other issues, in a package.

e.       T One should usually be prepared to make concessions.

f.       T

g.       F No, one can keep on talking and find a way round the problem.

a.       Check what they say without commenting, at least not immediately.

b.      Vary the quantity or the quality, or bring in third parties.

c.       Be prepared, think about the whole package, be constructive.

Practice 3

b We can give you free delivery with a larger order.

c We provide free on-site training for only a small price increase.

d.      We can give 5 % discount if you agree to payment on delivery.

e.       We can offer you an extra 50,000 compensation in exchange for your agreement not to go to law.

f.       We promise to improve safety for staff provided that we reach agreement on new contracts.

g.       The company will introduce better working conditions if the staff accept shorter breaks.

Practice 4

Ojanpera: Well, were happy to buy a machine if you can give us a good price.

Beck: Im sure we can. As you know our prices are very competitive.

Ojanpera: Even so, Im sure you can allow us a discount?

Beck: Okay, well a discount could be possible if you agree to pay for the shipping costs.

Ojanpera: That sounds okay, if the discount is a good one.

Beck: How about 4 %?

Ojanpera: 6 % would be better.

Beck: Im sorry, we cant manage that unless you pay for the installation.

Ojanpera: Okay, our engineers will take care of that.

Beck: Okay then, so to confirm: a 6 % discount but you pay all the shipping and installation costs.

Ojanpera: That sounds all right.

Practice 5

GIBSON TRUST LIMITED

Units 9-12 East Side Monks Cross Industrial Estate BRISTOL BSI4 6TR

Telephone 01272 547777 Fax 01272 547701

Neil Finch

Ministry of Urban Development

140- 144 Whitehall

London WCI 4RF

May 2 200

Dear Neil,

Re: Meeting in Bristol, April 30 --- Railway Land Sale

I am writing to (a) confirm points (b)agreed in the above meeting, held to discuss the sale of government owned railway land to Gibson Trust Limited.

We would like to confirm through this letter and the (c) enclosed drawings that the property (d) included in the above sale consists of the land presently occupied by the station buildings and also the former car parks to the east of the station, the offices to the west and the warehouse alongside the tracks. The government-owned housing on the north side of the railway lines is (e) excluded .

We also agree that the station will be renovated by the Transport Department and that the government will be responsible for running an eventual museum and paying a rent of 100,000 per year to Gibson Trust. The remaining land will be (f) developed by Gibson Trust and later sold off separately. The development is intended to be for commercial and residential use. The eventual use of the land should be (g) specified in the contract.

Our next meeting will be on May 15 at 10 a.m., at which development plans will be (h) examined. Soon after this, contracts will be (i) drawn up. Then we will need time to consider the contracts but hopefully they will be (j) signed by the end of September.

Do contact us if you have any comments or alterations you would like to make to this summary. Thank you once again for a very constructive meeting and we look forward to seeing you again on May 15.

Your sincerely,

Jill Kearne

Chief Negotiator

Encs. (I)

Reading

a.       emphasize the benefits available to both sides

b.      invent new options for mutual gain

c.       change the package

d.      adjourn to think and reflect

e.       change location

f.       change negotiator (personal chemistry?)

g.       bring in a third party (mediator?)

h.      fix an off-the-record meeting

Practice 6

Situation 1

The problem is that we have never offered the kind of warranty you are looking for.

Since we have a difficulty here, may I suggest we leave the problem of the warranty and come back to it later? Perhaps we could talk about training for our technical staff?

Situation 2

Theres a number of issues on the table. We seem to be a long way from an agreement.

Can I suggest a lower price, but link this with us paying the shipment costs or agreeing to different payment terms?

Situation 3

The price you are asking is rather high, quite a lot higher than we were expecting.

Well, if it would help, we could agree to longer payment terms

Situation 4

There are several problems. We think there is quite a lot of negotiation ahead before we can agree on a common strategy.

The benefits of reaching agreement are considerable. We will have more global influence and better prospects for the future.

Strategies in dealing with conflict

Strategy 1

I think were not really making much progress. Perhaps it would be better to leave this point for a while and come back to it later. Could we talk about a different aspect to the deal, perhaps the question of delivery?

Strategy 2

I think it is important to think about what could happen if we do not reach agreement. The most obvious consequence will be that we will both lose market share. The only winners will be our competitors. It could be serious for both of us.

Strategy 3

There seem to be a number of problems, but Id like to summarize the positive elements issues where we have made progress. First, we agree that we have to settle the dispute between us, we understand how important this is. Second, we agree that the terms of our original agreement need to be changed. Third, we also agree that the change will depend on the different market conditions which affect our products These are important points of progress.

Strategy 4

Can I suggest we take a short break? I think it will help if we look at some of the issues that are dividing us. Perhaps we will see areas where we can make a fresh offer.

Strategy 5

The point at issue, Mr. Cinis, is quite simple. We can offer you an extra 5 % discount, but only if the order is increased by 20 % over the next three years.

Practice 7

Situation 1

Let me make a suggestion. If you agree to buy 100 units every month for the next twelve months, well agree a 10 % discount.

Unfortunately, I cant say how many well need in six months and certainly not in twelve. I cant take the risk on such a large order at this stage.

Situation 2

The price we are offering excludes installation costs but does include a twelve months guarantee.

Im afraid thats not really acceptable. You know that other suppliers offer free installation and two year parts and labour warranty?

Situation 3

I think the absolute minimum investment in advertising must be $40,000, otherwise we cannot reach enough of our market. Its not much to ask for.

Its a pity but its still more than our budget. I cant go that high.

Situation 4

Now, some excellent news: wed like to increase our order. Right now you are sending us 350 boxes a month. We need at least 500, demand is very high

Well, Im glad youre having a lot of success with our products, but the bad news is that our order books are full, and the plant is working at full capacity. Were a bit stuck Im afraid

Practice 8

Situation 1

Its been a long meeting, but finally Im very glad were able to reach agreement. I think it would be good if we could go on to a restaurant now, wed be pleased if you can join us.

Situation 2

Im sorry our efforts to reach agreement have not been successful. I suggest we stop here, but I hope that in the future we might work together on something.

Situation 3

Unfortunately I feel it would be better if I dont join you on this project, but no doubt therell be plenty of other things well work on.

Situation 4

Id like to repeat our order, but not on those terms. Im sorry, we cant agree to this. I think well go elsewhere, but thanks anyway.

Situation 5

Im sorry, but it really is physically impossible. We cannot supply goods in so short time. Its just impossible. Sorry we cant help you.

Exercise 1 Your turn to negotiate

Suggested replies: Lets see how we get on. Why such a long delivery period? This is our position. We need delivery of six weeks maximum, with four weeks for installation. Im sorry, but I cant accept eight weeks. Youll have to do better than that, Im afraid. Im afraid I cant increase the delivery period any further. I have my instructions. May I make a suggestion? If you can promise delivery in six weeks, then we may be able to talk about further order. Lets go through the terms: six weeks for delivery and four weeks for installation; and the decision about the next order to be taken by the 26^th. Agreed?

Exercise 2 Ten rules for negotiating

a 4; b 6; c 1; d 8; e 2; f 5; g 7; h 3.

Exercise 3 When things get difficult

A. Would you like me to go through that again? B. Ill have to come back to you on this. C. Could you give me a moment to do some calculations? D. What is the basis of calculation for transport? E. Im just looking. Could you bear with me a moment? F. The figure for installation costs? What is the basis for calculation? G. Im sorry, could you go through it again?

Exercise 4 Vocabulary for contracts

a. agreement; parties; sections; clauses; conditions. b. provides for, binding; abide by/comply with; breach c. arbitration; litigation; compromise; court; out of court d. term; terminate.

Exercise 5 Licensing terms

(in order): have the legal rights over; let you have; permission; country; an immediate payment; 5 % to pay; yearly bottom limit; period; further years; when it ended; illegal copying; official manufacturer; ask for a ban; copiers.

Module 6

Discussion

A personal choice of qualities: D, F, H, and J.

Vocabulary

a. 1 resources 2 manageable 3 setting, communicate

4 supervise, performance 5 achieved 6 board of directors

7 innovations

b.Common collocations include: allocate resources (or people); communicate information or decisions; develop strategies (or people or subordinates); make decisions; measure performance; motivate people; perform jobs; set objectives; and supervise subordinates.

Module 7

Vocabulary

1 C; 2 E; 3 B; 4 A; 5 F; 6 G; 7 D

Reading

A functional structure

B matrix structure

C line structure

D staff position

Describing company structure

Here is a short description of the organization chart illustrated.

The chief Executive Officer reports to the President and the Board of Directors. The company is divided into five major departments: Production, Marketing, Finance, Research & Development, and Human Resources. The Marketing Department is subdivided into Market Research, Sales and Advertising & Promotions. The Finance Department contains both Financial Management and Accounting. Sales consists of two sections, the Northern and Southern Regions, whose heads report to the Sales Manager, who is accountable to the Marketing Manager.

Module 8

Vocabulary

a. 1 subcontractor 2 component

3 outsourcing or contracting out  4 capacity 5 plant

6 location 7 inventory 8 lead time

b. 1 A and E 2 C 3 D 4 A and E 5 A and E 6 D

7 F 8 E 9 F 10 E 11 B 12 E 13 B 14 C and E 15 B and F

Reading

1 component 2 subcontractor 3 inventory 4 outsourcing

5 location 6 plants 7 capacity 8 lead times

Reading

What is a product? / The definition of a product.

Brand names.

Product lines and product mixes.

Line-stretching and line-filling.

Vocabulary

1 credit facilities 2 warranty or guarantee 3 shelf

4 brand-switchers 5 (product) life cycle 6 profitability

7 opportunities 8 market share 9 image 10 niche

Module 9

Vocabulary

1 A 2 I 3 F 4 H 5 D 6 J 7 E 8 B 9 C

10 G

Reading

Paragraph 1 the selling and marketing concepts

Paragraph 2 identifying market opportunities

Paragraph 3 the importance of market research

Paragraph 4 the marketing mix

Paragraph 5 company-to-company marketing

Comprehension

1. Customer needs; 2. Market; 3. Coordinated marketing; 4. Profits through customer satisfaction

Vocabulary

1 word-of-mouth advertising 2 institutional or prestige advertising

3 advertising agencies 4 an account 5 an advertising budget

6 a brief 7 advertising campaign

8 target customers or target market 9 media planners

10 the threshold effect 11 the comparative-parity method

12 counter-cyclical advertising

Discussion

The numbers of respodents who agreed with the statements were as follows:

2. 72% 3. 85% 4. 51% 5. 41% 6. 49% 7. 60% 8. 57%

Reading

1 target 2 awareness 3 medium 4 tactics

5 trial 6 maturity 7 aimed 8 loyalty 9 advertising

10 channel

Summarizing

1 When a new product is launched, the producer has to inform customers about its existence and develop brand awareness.

2 Promotion is one of the four elements of the marketing mix; sales promotions are one of the four different promotional tools.

3 The advantages of publicity include the fact that it is much cheaper than advertising, and can have a better impact, because it seems that people are more likely to read and believe publicity than advertising.

4 The four stages of the standard product life cycle (excluding the pre-launched development stage) are introduction, growth, maturity and decline.

5 Reasons to offer temporary price reductions include attracting price-conscious brand-switchers, offsetting a promotion by a competitor, and, for stores, attracting customers by way of loss leaders.

6. Sales promotions need not only be aimed at customers; they can also be used with distributors, dealers and retailers, and with a companys sales force.

7. Apart from selling a companys products, sales representatives bring information back to a company from its customers, including ideas for new products.

Vocabulary

1. competitors 2 word-of-mouth advertising 3 brand-switchers

4 points of sale 5 brand name 6 line-stretching 7 packaging

8 product improvement 9 media plan 10 packaging

Module 10

Reading

1 Market leaders

2 Expanding markets

3 Market challengers

4 Market followers

5 Establishing a niche / Dangers faced by market followers

Vocabulary

1 market share 2 promotions 3 monopoly

4 competitors 5 slogan 6 market segmentation 7 niche

8 differential advantage 9 turnover 10 recession

Vocabulary

1 to innovate (innovation) 2 to diversify (diversification)

3 to merge (a merger) 4 a raid 5 a takeover bid

6 horizontal integration 7 vertical integration 8 backward

integration 9 forward integration 10 synergy

Summarizing

1 The fact that many large conglomerates assets were worth more than their stock market valuation demonstrated that they were clearly not maximizing stockholder value, i.e. giving their stockholders the maximum possible return on their investment.

2 Raiders bought conglomerates in order to strip them of their assets, i.e. to restructure them, split them up, and resell the pieces at a profit.

3 Raiders showed that the stock market did not necessarily value companies assets correctly, especially land, buildings and pension funds.

4 Raiders were particularly interested in companies with large cash reserves, companies with successful subsidiaries that could be sold, and companies in fields that are not sensitive to a recession.

5 Investors were prepared to lend money to finance LBOs because they received a high rate of interest which more than compensated for the risk that the bonds would not be repaid.

Raiders argue that the possibility of a buyout forces company managers and directors to do their jobs well, and to use their capital productively.

Vocabulary

1 charities 2 legitimacy 3 perfect competition 4 welfare

5 threatening 6 vitality 7 free enterprise 8 conforming

9 embodied 10 proponents

Module 11

Vocabulary

1 B 2 C 3 D 4 G 5 A 6 E 7 F

Vocabulary

1 shareholders or stockholders 2 earnings or income 3 liabilities

4 turnover 5 assets 6 depreciation or amortization

7 debtors or accounts receivable 8 creditors or accounts payable 9 stock or inventory 10 overheads or overhead

Reading

1 assets 2 stock or inventory 3 depreciation or amortization 4 shareholders or stockholders 5 earnings or income

6 turnover 7 overheads or overhead 8 liabilities

9 debtors or accounts receivable  10 creditors or accounts payable

Vocabulary Financial statements

turnover 2. overheads 3. depreciation 4. freehold properties

5. historical cost 6. debtors 7. cash in hand at bank 8. corporation tax. 9. net assets 10. called up share capital.

Reading

A The period of gold convertibility.

B Floating exchanges rates.

C The abolition of exchange controls.

D Intervention and managed floating exchange rates.

E The power of speculators and the collapse of the EMS.

F Why many business people would prefer a single currency.

G The introduction of the single European currency.

Comprehension

1 False 2 False 3 True 4 False

5 True 6 True 7 True 8 False

Vocabulary

1. 1 B 2 D 3 A 4 C 5 F 6E

1 adjust 2 convert 3 abolish 4 suspend

5 fluctuate 6 diverge

Module 12

Vocabulary

1 overdraft 2 credit card 3 cash dispenser or ATM

4 loan 5 standing order or direct debit 6 mortgage 7 cash card

8 home banking 9 current or checking account 10 deposit or time or notice account

Reading

1 Commercial banking

2 Investment banking

3 Universal banking

4 Interest rates

5 Eurocurrencies

Vocabulary

1 deposit 2 foreign currencies 3 yield 4 liquidity

5 maturity 6 underwrite 7 takeover 8 merger

9 stockbroking 10 portfolio management 11 deregulation

12 conglomerate 13 blue chip 14 solvency 15 collateral

.Common collocation include: charge interest; do business; exchange currencies; issue bonds; make loans; make profits; offer advice; offer loans; pay interest; raise funds; receive deposits; underwrite security issues

Vocabulary

1B 2 A 3 A 4 B 5 C 6 A 7 B 8 C 9 C

10 B

Reading

A The functions of taxation.

B Advantages and disadvantages of different tax systems.

C Tax evasion.

D Avoiding tax on salaries.

E Avoiding tax on profits.

Comprehension

1True

2True

3True

4False

5False

6 False

7True

Vocabulary

1 depreciation 2 disincentive 3 regressive 4 consumption

5 self-employed 6 national insurance 7 perks

8 tax shelters 9 tax-deductible 10 tax havens

Module 13

Vocabulary

1 liability 2 creditor 3 bankrupt 4 assets

5 to liquidate 6 liabilities 7 to put up capital

8 venture capital 9 founders 10 premises

11 underwrite 12 dividend

Vocabulary

1 mutual fund 2 portfolio 3 stockbroker 4 blue chip

5 defensive stock 6 growth stock 7 market-maker

8 institutional investors 9 inside share-dealing

Vocabulary

1 H 2 B 3 A 4 C 5 I 6 E 7 F 8 D 9 J

10 G

Vocabulary

1 F 2 E 3 A 4 B 5 G 6 C 7 D

Vocabulary

1 B 2 A 3 F 4 C 5 E 6 D

Summarizing

1 The difference between futures and forward contracts is that futures are standardized deals and forwards are individual over-the-counter agreements between two parties.

2 Producers and buyers often choose to hedge because this allows them to guarantee prices for several months.

3 Speculators can make money on currency futures if they correctly anticipate exchange rate appreciations or depreciations or interest rate changes.

4 If you believe that a share price will rise, possible option strategies include buying a call, which you will be able to sell at a profit, and writing (selling) a put, which will never be exercised, so you earn the premium.

5 On the contrary, if you think a share price will fall, possible option strategies include buying a put, so you will be able to sell your shares at above the market price, and writing a call, which will never be exercised, so you earn the premium.

6 The risk with currency and interest rate swaps is that the exchange and interest rates may change unfavourably.

Vocabulary

Appreciate depreciate

Call put

Discount premium

Drought flood

Floating fixed

Hedging speculation

Spot market futures market

Strike price market price

The word premium is used twice with two different meanings in the text. At a premium means above the nominal or market price; premium also means the price of an option contract.